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98 Mr. O'ConnelI said that the third recommendation is to adopt a resolution challenging employers in the Charlottesville area to pay all their employees a minimum of $8 an hour. Ms. Richards asked if there is a way to recognize employers who do this. Mr. Cox said he thinks it is an excellent idea for the City to recognize employers who' agree to this. Mr. Cox said he would like to know how many employers are akeady paying $8 an hour. Mr. Cox suggested recognizing businesses at each Council meeting. Ms. Daugherty asked staff to come up with a way to find out about this. Mr. Toscano said he supports the resolution, but is concerned that recognizing all employers who pay $8 an hour will put staffon a task that could be very time consuming. Instead, Mr. Toscano suggested that such recognitions be left with the groups who have mobilized. Mr. Cox agreed and said that businesses could voluntarily come forward. Ms. Richards suggested that volunteers could be enlisted to do research and recognition of the businesses who agree. On motion by Mr. Cox, seconded by Mr. Caravati, the resolution challenging Charlottesville area businesses to pay their employees a living wage was approved by the following vote. Ayes: Mr. Caravati, Mr. Cox, Ms. Daugherty, Ms. Richards, Mr. Toscano. Noes: None. WHEREAS, it is in the best interests of the City of Charlottesville and its residents to have employment available that will provide to all persons an opportunity to earn a "Living Wage" sufficient to meet their basic living needs; and WHEREAS, the City has amended its own pay plan to provide that no employee of the City of Charlottesville will be paid a wage less than eight dollars ($8.00) per hour; and WHEREAS, case studies have shown that higher wages paid to employees lead to more efficient production, lower employee turnover, improvement in the quality of job applicants and performance, and improved morale within the workplace, and that such efficiency gains can be expected to offset the labor costs associated with payment of a Living Wage; NOW, THEREFORE, BE IT RESOLVED that this City Council hereby challenges all employers within the Charlottesville area to follow the City's lead, by offering ali employees a wage of at least eight dollars ($8.00) per hour. Mr. O'Connell said that the fourth area, the ordinance requiring contract employees to pay a living wage, raises policy issues, and said that direction is needed from Council. Ms. Lisa Kelley, Assistant City Attorney, said that she has looked at what other communities have adopted, and they are all outside of Virginia. The City of Alexandria is in the process of drafting an ordinance. Ms. Kelley suggested that Council mull over the information provided and provide input. Ms, Kelly asked that Councilors give careful consideration to 1) what contracts would they have the ordinance apply to, noting that depending on this it could have major financial implications for the City; and 2) how could the ordinance be enforced, noting that this could take a lot of time adrnixdstratively. Ms. Kelley said that the City Attorney's office has given the opinion that they have found no legal authority for the City to enact such an ordinance. Ms. Kelly said that the Purchasing Agent sent out surveys to vendors and only received a small response back. Ms. Kelly noted that two of the responses, who were from small and minority businesses, said that enacting such an ordinance would either increase the cost to the City or would prevent them from doing business with the City.