Big thumbs down on a South Lake Tahoe minimum wage ordinance

SOUTH LAKE TAHOE, Calif. - The vast majority of those who filled council chambers Tuesday night were there to tell the Council to say "no" to any minimum wage increases in South Lake Tahoe, and a definite no to the $23 per hour that Councilmember Scott Robbins publicly suggested.

A long line of small business owners pleaded with the Council, stating a jump in the minimum wage would be something they could not financially handle without cutting hours or laying off staff.

Robbins wanted to table the discussion and postpone a vote on a rise in the minimum wage since Councilman John Friedrich had a family emergency and was not in attendance. The other three council members did not go along with that.

Restaurants and other small businesses told the Council they run on a very tight margin, and any change in expenses is felt from their need to raise prices or cut expenses including staff.

The pandemic, Caldor Fire, rising insurance costs, recovery over a record winter last year, and an increase in the minimum wage in California have already put the hits into small businesses in South Lake Tahoe.

"We are all trying to manage all inflationary aspects of business with tight margins," said The Hangar owner Nate Riffle. "These are challenging moments, a proposed wage increase could be the kiss of death."

Deb Brown, owner of Cold Water Brewery, said that repercussions were already felt throughout the community when Heavenly raised their minimum wage to $20 per hour.

"There are unintentional consequences with raising the minimum wage," said Brown. "There is only one decision to make - do nothing."

Her sentiments were echoed by all small business owners who spoke before the Council.

"The theme of this region has been 'survival”' since the Donner Party," said Brenon Touryan, owner of Lake Tahoe Pizza. "We are all surviving together. We have to survive through things many other areas don’t have to."

Overnight visitor numbers have been dropping, and are greatly affected not only by the economy but by the weather and fires.

Passionate pleas by given by the owners of South Lake Brewing, Blue Granite Climbing Gym, Sidestreet Boutique, Azul, Coldstone Creamery, McP's, Fire & Ice, Burger Lounge, Riva Grill, Chicken In A Barrel, The Woods, R & R Vacation Rentals, The Stardust, Cuppa Tahoe and others.

Even a South Tahoe Middle School seventh grader, Mac Miller, 13, got up to speak, stating quite well that he knew he didn't deserve more than a smaller minimum wage due to his "lack of a skill set."

Many of the local small businesses hire high school kids, but if the minimum wage were to rise as high as $23 per hour they said that wouldn't be possible.

National corporations can absorb an increase in business costs more than small businesses as they can move expenses to other, higher profit areas. That isn't possible with most small businesses.

"Stop dividing this community," said Jerry Bindel of Keep Community First and the South Lake Tahoe Lodging Association. "We cannot starve our businesses that we rely on so much. Stop the waste of council and staff time."

There was also speculation that a large rise in business costs on the California side of Lake Tahoe would move them to Nevada where the cost of doing business is much lower in many aspects.

"If we don’t unite, we’ll explode," said Loreen Sanchez, owner of the Burger Lounge. "This town is falling apart and it needs to stop."

Much of the anger was directed at Robbins who brought the discussion to the agenda. He was the lone dissent on Councilmember Tamara Wallace's motion to not take any further action or discussion on a local minimum wage ordinance.

"This five-person council decides what is best," said Wallace. She said nobody but Robbins ever said it was about $23 an hour.