Title
Continued Introduction of Ordinance Amending the Alameda Municipal Code by Adding Article 4-60 (Minimum Wage) to Chapter IX (Regulations Concerning Trade and Commerce) Concerning a Citywide Minimum Wage to Raise Alameda's Minimum Wage to $15.00 per Hour by July 1, 2020; and
Adoption of Resolution Amending the General Fund Operating Budget for Fiscal Year 2018-19. [Continued from September 18, 2018] (Economic Development 001)
Body
To: Honorable Mayor and Members of the City Council
From: David L. Rudat, Interim City Manager
EXECUTIVE SUMMARY
On April 17, 2018, the Alameda City Council directed staff to prepare a minimum wage ordinance for its September 18, 2018 meeting. The proposed ordinance is intended to accelerate increases to the City's minimum wage such that it reaches $15 per hour by July 1, 2020, 18 months earlier than the January 1, 2022 implementation of a $15 per hour statewide minimum wage for large businesses. This staff report reviews similar ordinances in other cities, comments from community members, and elements of the proposed ordinance to obtain $15 per hour by July 2020.
The estimated fiscal impact to the City, as an organization, for implementing a minimum wage through Fiscal Year (FY) 2020 is $459,000 (including $14,000 for Alameda Municipal Power (AMP)) for costs associated with part-time city employees and contracted services. These costs include increasing base salaries for employees at the minimum wage, contract increases for janitorial and other contract services, public education and enforcement, and a "buy local" campaign. This cost is also offset by the amount that salaries and contracts would have otherwise increased due to increases in the State's minimum wage schedule. Addressing salary compaction issues for existing employees is estimated at an additional $298,000, for the total of $757,000. Should the City Council choose to introduce the Ordinance, staff recommends appropriating $57,000 in FY 2018-19 for person...
Click here for full text