HomeMy WebLinkAboutORD-1999-018 Personnel Ordinance Revision - Living Wage Increase aC�'rqr - e gg 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
Action Agenda
Item No. �
ACTION AGENDA ITEM ABSTRACT
Meeting Date: November 3, 1999
SUBJECT: Personnel Ordinance Revision — Living Wage Increase
DEPARTMENT: Personnel PUBLIC HEARING: (YIN) No
ATTACHMENT(S): INFORMATION CONTACT:
1- Method Used To Establish Living Wage Elaine Holmes, Personnel Director
2- Draft Personnel Ordinance Revision TELEPHONE NUMBERS: - -ext. 2550
Hillsborough 732-8181
Chapel Hill '968-4601
Durham 688-7331
Mebane 227-2031
PURPOSE: To consider a revision to the Orange County Personnel Ordinance to update
the living wage required for County employees from $8.00 an hour to $8.20 an hour
effective January 10, 2000.
BACKGROUND: Effective July 1, 1998, the Board of County Commissioners established
a living wage for County employees. The Board set the amount of that wage at $8.00 per
hour. In follow up to that, the Board has asked to revisit the living wage amount and
consider any necessary update to take account of changes since the Board established
the living wage in 1998.
The Board based its decision to establish the living wage at $8.00 an hour on the
1997 Federal poverty level for a family of four as adjusted for the Raleigh-Durham
Region based on the American Chamber of Commerce Research Association's cost
of living index. Based on that same index updated to 1999, it is recommended the
living wage. be increased to $8.20 an hour. Attachment 1 shows the Federal poverty
guidelines adjusted for the Raleigh-Durham cost of living along with related information the
Board considered in 1997.
Attachment 2 is the draft revision to the Orange County Personnel Ordinance. Currently
the minimum hourly wage for a permanent Orange County employee is $8.61. Thus, the
proposed living wage increase would have no impact on permanent employees. There are
48 temporary employees who would be impacted. They presently are at wages ranging
from $8.00 an hour to $8.20.
FINANCIAL IMPACT: The estimated cost for implementing an $8.20 living wage increase
effective January 10, 2000 for the remainder of the current fiscal year (1999-00) is about
$4,000. The estimated. annual cost for the increase is about $8,000. Funds are available
within approved budgets for 1999-00.
2
The Board also has expressed interest in reviewing the living wage annually and
considering any need for update each year. Since the living wage has budgetary impacts,
it is recommended that this be incorporated in the budget process for future years
beginning in 2000-01.
RECOMMENDATION: The Manager recommends the Board approve the Personnel
Ordinance revision to increase the living wage to $8.20 per hour effective January 10,
2000 and request staff to return with future living wage updates as part of the annual
budget process.
K:\b\Iwabst.doc
October 25, 1999
3
Attachment 1
Method For Establishing the Living Wage
In establishing the Living Wage for Orange County employees effective July 1, 1998, the
Board, based the wage amount on the Federal Poverty Level for a family of four as
adjusted for the Raleigh —Durham Region using the American Chamber of.Commerce
Research Association's Cost of Living Index.
Chart 1 below shows the Federal poverty levels, adjusted for the Raleigh-Durham region
cost of living in 1997 and 1999. The index for the Raleigh-Durham region includes Chapel
Hill. In 1997, the Raleigh-Durham region cost of living index was at 103.0 percent of the
national average. In 1999 it is 101.8 percent of the national average.
Chart 1 - Health and Human Services Poverty Guidelines
Adjusted for Raleigh-Durham Region Cost of Living (Wage per Hour)
Number in 1997 1999
Family
1 $ 3.90 $ 4.03
2 $ 5.25 $ 5.41
3 $ 6.60
4 $ 7.94 $ 8.17
5 $ 9.29 $ 9.56
For information, Chart 2 below shows the unadjusted Federal poverty guidelines. These
establish the annual earnings needed for a family of a specific size to meet the threshold,
assuming a single wage earner and 2,080 working hours (40 hour work schedule)
annually,
Chart 2 - Health and Human Services Poverty Guidelines
Minimum Hourly Wage
Number in Family 1997 1999
1 $ 3.79 $ 3.96
2 $ 5.10 $ 5.32
3 $ 6.41 $ 6.67
4 $ 7.71 $ 8.03
5 $ 9.02 $ 9.39
In deciding to use the cost of living adjusted Federal poverty level for a family of four, the
Board of Commissioners had looked at information provided by the Orange County
Department of Social Services on the size of families needing temporary assistance.
Chart 3 below shows the updated information.
4
Chart 3- Size of Families Needing Temporary Assistance
300
250
0
200
�°
.150
p d °.;
3.. ;.
?_:;.
®1999
100 k:3
50
0 =
1 2 3 4 5 6 7
Number of People in Household Budget
5
Attachment 2
Draft Personnel Ordinance Revision
Article V, Section 19.0, Living Wage
19.0 Living Wage
19.1 Each Orange County employee, whether appointed as permanent or temporary, is
paid a minimum hourly wage of at least$8-W $8.20 per hour except as provided in
Item 19.2 below.
19.2 A high school student employed as a temporary employee or other temporary
employee working for education purposes as determined by the department head and
Personnel Director may be paid less than $8:99 $8.20 per hour so long as the
employee is paid at least the Federal Minimum Wage.
Mbuwabst.doc
October 17, 1999
//- 3 --lilq
• Ensure that death penalty cases are administered fairly and impartially, in accordance with basic due
process;
• Minimize the risk that innocent persons may be executed; and
• Prevent the execution of mentally retarded persons and persons who were under the age of 18 at the
time of their offenses.
Section 2. Copies of this resolution shall be forwarded to Governor Hunt, and our state legislators,
President Clinton and our legislators in Congress.
Section 3. This resolution shall become effective upon adoption.
d. Resolution of Support for Site of El Centro Latino de Orange County
The Board approved a resolution of support of the El Centro Latino de Orange County and
requested that Centura Bank donate a site for the center as stated below:
RESOLUTION IN SUPPORT OF
EL CENTRO LATINO DE ORANGE COUNTY
REQUEST TO CENTURA AND TRIANGLE BANKS
Resolution by the Orange County Board of Commission to support El Centro Latino de Orange
County request that Centura and Triangle Bank, upon merger, donate to them either the Triangle
Bank building located at 505 W. Main Street or the Centura Bank building located at 300 Weaver
Street in Carrboro, North Carolina.
Whereas, Orange County has one of the ten fastest growing population of Latinos in North Carolina; and
Whereas, Orange County is dedicated to helping the growing Latino population of Orange County
acculturate to Orange County; and
Whereas, the Orange County Latino population, the Inter-Agency Task Force and Los Ninos Task Force
have determined that to provide necessary services to the emerging Latino population, there is a need for
the creation of a central place for resources, education, information and support; and
Whereas, the success of El Centro Latino de Orange County is vital to support the needs of the Latino
population in Orange County and all facets of the community are coming together to ensure that; and
Whereas, both Centura Bank and Triangle Bank, are Corporate Partners within Orange County and have
a continuing and affirmative commitment to help meet the needs of the community; and
Whereas, Centura Bank and Triangle Bank have proposed a merger, thus reducing their need for either
the Centura Bank building at 300 Weaver Street or the Triangle bank building located at 505 W. Main
Street, Carrboro, North Carolina.
THEREFORE BE IT RESOLVED, that the Orange County Board of Commissioners requests that, upon
the merger of Centura and Triangle Banks, they donate one of the above-mentioned buildings in fee
simple to El Centro Latino de Orange County.
e. Personnel Ordinance Revision - Living Wage Increase
The Board approved raising the living wage required for County employees from $8 per hour to
$8.20 per hour.
f. Personnel Ordinance Revision - Multilingual Recruitment and Hiring
This item was removed and placed at the end of the consent agenda.
5