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Date Agenda Item : BJune 16, 2014Submitted By Village Managers Office Review: LKSCara Pavlicek, Village Manager

Agenda Item TitleDiscussion of Existing Direction to Reject the Creation of a Living Wage Ordinance and Set aDate for Review.

SynopsisOn July 6, 2010, the Village Board reviewed the recommendation from the CommunityRelations Commission (CRC)s recommendation in favor of a Living Wage Ordinance. Afterdiscussion and review of the CRCs recommendation and a minority report by theCommission rejecting the creation of a living wage ordinance, the Board voted to reject theCRC recommendation. Recently two members of the Village Board asked that this issue bebrought forward for discussion again to see if there is interest to revisit the issue.

RecommendationIf there is consensus to bring this issue back for review and discussion, staff will schedule ameeting on the Village Boards calendar.

Fiscal ImpactN/A

BackgroundOn November 4, 2008 the electorate of Oak Park voted in a non-binding ballot initiative tosupport the enactment of a Living Wage ordinance of the Village of Oak Park. In January2009, the Village Board moved to assign a review of the impact of a Living Wage Ordinanceto the Community Relations Commission. The Commission began meeting in February 2009and met for a total of 13 meetings to debate and research the issue. In addition, two publicmeetings specifically inviting the general public to offer input was held in January andFebruary 2010.

A final report by the Community Relations Commission in support of the creation of a livingwage ordinance was produced along with a minority report by the two Commission memberswho opposed the living wage ordinance.

The 2010 report from the CRC noted these potential impacts (as requested by the VillageBoard) on the Village: (1) the impact would be limited to a small segment of the population,(2) there is a potential 1-2% increase in costs associated with village contracts or other

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applicable contracts, (3) increased costs may cause some firms to be apprehensive aboutdevelopment prospects in Oak Park, and (4) there may be additional impact on sisteragencies [ those who receive funds from the Village]. The minority report noted thefollowing impacts: (1) the living wage does not consider the household or family income ofthe working to establish eligibility, therefore it is difficult to ensure that the increased wagesare going to poverty families, (2) Oak Park has the lowest poverty rates (3.6) and the highestemployed rate (72.3%) in the country (2000 Census) and most workers employed in jobsconsidered below the poverty rate do not live in Oak Park. Therefore local retail sales areunlikely to grow because of a living wage., and (3) A living wage ordinance an higher salarycosts could result in additional commercial vacancies, longer periods of idleness andreduces expenditures on building upkeep.

AlternativesThe Board can select to retain the existing direction to not create a living wage ordinance forthe Village or alternatively, direct staff to schedule a meeting date in the future for thisreview.

Previous Board ActionOn July 6, 2010 the Village Board voted to reject the creation of a living wage ordinance inOak Park.

Citizen Advisory Commission ActionThe Community Relations Commission met in 2009-2010 to review the impacts of a livingwage ordinance in Oak Park.

Anticipated Future Actions/CommitmentsN/A

Intergovernmental Cooperation OpportunitiesN/A

Performance Management MAP) AlignmentCommunity Relations is participating in the current phase of creating measurements for2014.

AttachmentsMinutes of the Village Board July 6, 2010Community Relations Commissions Report, February 17, 2010

Community Relations Commissions Minority Report, February 28, 2010

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