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• No existing comprehensive analysis of service contractors <br /> • Social Services cost estimated to be $260,000 to provide existing levels <br /> of service <br /> County as Community Leader <br /> • Living Wage Certification Programs <br /> o Just Economics of Western Carolina <br /> • Voluntary certification program <br /> • Calculated using Fair Market Rents <br /> o Durham Living Wage Project <br /> • Voluntary certification program <br /> • Calculated using Federal Poverty Level <br /> o Orange County Living Wage <br /> • Voluntary certification program <br /> • Orange County enrolled as one of the first living wage employers <br /> • Calculated using Fair Market Rent = $12.75 per hour <br /> Policy Considerations and Next Steps <br /> • Review Calculation Methodology <br /> o Federal Poverty Rate <br /> • Criticized for outdated metrics; insensitive to local economy <br /> • Frequently used; adjusts for family size <br /> o Housing Costs/Fair Market Rent <br /> • Family size not considered <br /> • Viewed as more locally sensitive <br /> • Service Contracts - Policy Development <br /> o More comprehensive review of cost implications <br /> o Create profile of service providers to guide policy development <br /> • Scope of application — non-profits? <br /> • Exemptions — small firms? <br /> • Report back prior to budget development <br /> Commissioner Dorosin asked if the estimated $260,000 increase from Department of <br /> Social Services (DSS) is for contractors. He asked if it is fair to assume that the $260,000 <br /> increase is related to contractors being paid less than a living wage. <br /> Travis Myren said this cost increase is primarily driven by DSS in home aide contracts. <br /> Commissioner Jacobs said he has objected over the years for not paying sufficient <br /> wages to in home health care workers. He said the County is taking advantage of the fact that <br /> others are not paying a living wage to get a service that the County needs. <br /> Chair McKee asked if the Fair Market calculation is the more viable option given the <br /> disparities between the cost of living in different areas. <br /> Travis Myren said the Fair Market calculation is considered more realistic at the local <br /> level. <br /> Commissioner Rich asked if the County can require recipients of a County contract for <br /> less than $30,000 to pay their employees a living wage. <br /> John Roberts said this is true for certain contracts, but for service contracts it can be <br /> higher. He said there are no bidding requirements on service contracts. He said the only <br /> problem of making a living wage requirement on larger contracts is there is no bidding process, <br /> and thus the lowest cost for the service cannot be obtained. <br />