Orange County NC Website
Browse       Search
2 <br /> apparatus below $30,000, and service contracts in any amount so long as the County did not <br /> choose to solicit bids. <br /> There are potential pitfalls with applying a living wage policy to service contracts in any amount: <br /> 1) Although there are no legal requirements to solicit bids for service contracts Orange <br /> County departments regularly solicit bids for large service contracts in an effort to <br /> obtain the lowest bid for a particular service. When bids are solicited the policy could <br /> not apply. <br /> 2) Applying a living wage policy would cause substantial increases in costs to some <br /> departments and the county. It is likely contractors will increase the cost of contract in <br /> order to offset the effects of a policy of this type. These increased costs will be paid by <br /> the county. For example, Department of Social Services Director Nancy Coston <br /> estimates the cost of the department's contracts would increase as much as 50% if <br /> such a policy were adopted. <br /> 3) Some large or out-of-state sole source contractors as well as governmental entities <br /> would likely reject a contractual clause of this type and the county could be in a position <br /> of being unable to secure needed services. <br /> 4) A blanket policy would apply to nonprofits, which are ill-suited to absorb such costs. <br /> Nonprofits would also likely pass such costs through to the county. <br /> Potential Living Wage Policy Statement: <br /> It is the policy of Orange County that contractors, who enter contracts with Orange County in <br /> which the amount of the contract is $30,000 or less, must pay their employees a living wage. <br /> The calculated amount of the living wage shall be the amount established by the Orange <br /> County Board of Commissioners in the annual budget. This policy shall apply to all contractor <br /> employees, agents, and/or subcontractors who perform work pursuant to the terms of the <br /> contract with Orange County regardless of the situs where the work is performed. This policy <br /> shall not apply to not-for-profit corporations organized in North Carolina or to governmental <br /> entities. <br /> This policy may be adopted as a standalone policy or as part of the annual budget ordinance. <br /> Based on the information provided in Attachment 1, and on the information from the County <br /> Attorney above, the Board can discuss potential living wage initiatives for Orange County and <br /> provide direction to staff on next steps. <br /> SOCIAL JUSTICE IMPACT: There is no social justice impact associated with receiving this <br /> update on living wage policies. If the Board subsequently moves forward on living wage <br /> initiatives, the following Orange County Social Justice Goals would be applicable: <br /> • GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND <br /> INEQUITY <br /> The fair treatment and meaningful involvement of all people regardless of race or color; <br /> religious or philosophical beliefs; sex, gender or sexual orientation; national origin or <br />