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Exhibit CC 09-20-2016 Item No. 9 Minimum Wage Written Communicationcc_ 1/c21J/r~ ti: Cf Cupertino Chamber of Commerce Your Partner in Silicon Valley #9 Minimum Wage Recommended Changes City Council Meeting 9/20/16 The members of the Cupertino Chamber of Commerce appreciate the work by staff to reach out to local businesses to evaluate the anticipated impact of this proposed ordinance. • As documented in the staff report, the assessment indicates that small businesses anticipate a negative impact should the city council take the action as recommended. • As indicated in the staff report, small businesses in Cupertino do not represent the majority of employees, but they do represent the majority of service businesses especially restaurants. • The economic analysis confirms that the smaller the business, the more likely it is to experience economic hardship from the action as proposed. • In order to help small businesses in Cupertino, the chamber of commerce recommends the city council include the accommodations to the proposed measure referred to in the staff report. Specifically: a. Small business exemption for businesses with 10 employees or less (as indicated by the most concerned small businesses on p4 of the staff report). b.Exemption for new and temporary seasonal employees, targeting summer jobs for teens. (Staff Report pS) c. Exclude tipped employees from ordinance. (Staff Report pS & 6) ct.Learner exemption.(Staff Report p6) Proposed Changes to the Draft Ordinance • It is also recommended that section 3.37.040(f) of the proposed ordinance be modified so that the annual determination recommendation from staff will be presented on a regular agenda of the city council. (Ordinance p4) • A fundamental reason for cities in Silicon Valley to consider a local minimum wage ordinance is due to unique local economic conditions, which are distinct from the state overall. To be consistent with this specific concern, it is recommended that section 3.37.040(f)(A),(B) and (C) be modified to reflect employment statistics and sales tax returns for the San Francisco Bay Area, not for the entire state of California. (Ordinance p4) • To maintain local control and discretion, it is strongly recommended that section 3.37.040(g) be modified such that if any of the conditions in subparagraphs (A)(B) or (C) are met, the city council may make a determination to suspend the minimum wage. (Ordinance p5) Recommendation for implementation: The proposed ordinance states the increase be implemented as follows: Jan 1, 2017 Jan 1, 2018 Jan 1, 2019 $12.00 $13.50 $15.00 Chamber would like to recommend the following schedule: Jan 1, 2017 Jan 1, 2018 Jan 1, 2019 $11.00 $13.00 $15.00 The Cupertino Chamber of Commerce appreciates the long working partnership it has with the city, and local businesses both large and small. We strongly encourage the city council to adopt the recommended proposed changes so that we may help the smallest and most vulnerable businesses in our community. Sincerely Anjali Kausar C.E.O. Cupertino Chamber of Commerce