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complaint process. Should the City choose to contract with the City of San Jose for <br />enforcement services, staff recommends that the City budget approximately $30,000 <br />annually for these services. Some of the enforcement cost could be offset by the <br />collection of penalties from noncompliant employers. <br /> <br />Next Steps: <br />As a next step, staff recommends that the second reading and adoption of this <br />ordinance be scheduled for the April 9, 2018 Council meeting. If adopted, the ordinance <br />would go into effect in 30 days with the first minimum wage increase beginning January <br />1, 2019. <br /> <br />ALTERNATIVES <br /> <br />• Alternative A: Take no action at the local level with Redwood City employers <br />adhering to the State’s phased-in minimum wage schedule, which will reach <br />$15.00 an hour by 2022. <br />• Alternative B: Adopt a local minimum wage ordinance that increases the <br />minimum wage in Redwood City to $15.00 per hour at one time on January 1, <br />2019 and annually thereafter, the City will adjust the minimum wage based on <br />the Consumer Price Index. <br />• Alternative C: Adopt a local minimum wage ordinance that increases the <br />minimum wage in Redwood City to $13.50 per hour beginning July 1, 2018 <br />and $15.00 per hour on January 1, 2019 in a phased approach and annually <br />thereafter, the City will adjust the minimum wage based on the Consumer <br />Price Index. <br /> <br /> <br /> <br /> <br /> <br />FISCAL IMPACT <br />Increasing the minimum wage to $15.00 as required by the State or through a potential <br />local ordinance would have an estimated cost impact to the City of approximately <br />$500,000 annually. The City would also budget $30,000 annually for a third party <br />enforcement contract. <br />Effective Date <br />State of CA <br />(26 + Employees) <br />City of Redwood City <br />(Proposed) Alternative A Alternative B Alternative C <br />July 1, 2018 $11.00 $11.00 $11.00 $11.00 $13.50 <br />January 1, 2019 $12.00 $13.50 $12.00 $15.00 $15.00 <br />January 1, 2020 $13.00 $15.00 $13.00 + CPI + CPI <br />January 1, 2021 $14.00 $15.00 + 2020 CPI + 2019 CPI $14.00 + CPI + CPI <br />January 1, 2022 $15.00 + CPI $15.00 + CPI + CPI <br />January 1, 2023 $15.00 + CPI + CPI $15.00 + CPI + CPI + CPI <br />Alternatives <br />Attachment 26.3.A. - Page 23