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