Agenda - 05-26-1998 - 10c - Laserfiche WebLink

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Key Issues: Contracts Which Would Be Affected: Currently, a few businesses have annual contracts over $25,000 with Orange County. These include accounting firms and law firms, as well as the day care providers mentioned below. In the future, other types of contracts - such as for painting, mowing, and care of grounds - could also be affected by the Ordinance. Day Care Provider Impact: A survey of day care providers currently having annual contracts of $25,000 or more with the County was undertaken. Nineteen (19) day care providers responded, indicating that a total additional annual cost of approximately $327,000 would be needed to bring all their employees up to $8 per hour. For these 19 day care providers, 65 full -time and 78 part- time employees now earn less than $8 per hour. Four (4) providers have not responded to the survey. A survey summary is attached. Non - Profit Impact: Earlier, a survey of non - profit firms doing business with the County was completed. The 27 non - profits estimated a total annual impact of $74,500 to bring 29 full -time and 28 part-time employees up to $8 per hour. A survey summary is attached. As the Living Wage Ordinance is currently written, non - profits will not be affected. Future Increases in Living _Wage Level: As written, the Ordinance will not automatically raise or lower the Living Wage annually (based on the CPI or other index). The BOCC would need to re- examine the wage level on a periodic basis. Impact on Loan Pool Recipients: Some bank representatives involved in funding the Orange County Small Business Loan Pool are concerned about the ability of very small businesses to pay all employees the Living Wage. Discussions are ongoing between the bank representatives and county officials. Until this matter is resolved, it may be advisable to exempt Loan Pool recipients from the Living Wage Ordinance. They could be included in the Ordinance at a later date. Administration: Orange County staff will be involved in administration of the Ordinance, primarily in these ways: * Informing contractors and their employees of the Ordinance's provisions * Gathering information regarding compliance * Verifying (auditing, conducting spot checks for) compliance * Pursuing remedies against non - compliant contractors County staff in Purchasing/Central Services and Finance would be involved to the greatest extent. At this time, it is believed that administration could be accomplished without additional staff. Recommendation: After the Board has had an opportunity to review the information, the Manager recommends pursuing one or more of the following options in lieu of adopting an ordinance: