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File #: 13-0649    Version: 1 Name: 6/17/13 Resolution for Dawn Farm Sobriety Court Grant
Type: Resolution Status: Passed
File created: 6/17/2013 In control: City Council
On agenda: 6/17/2013 Final action: 6/17/2013
Enactment date: 6/17/2013 Enactment #: R-13-189
Title: Resolution to Grant Living Wage Exemption to and Approve a Sobriety Court Grant Program Contract with Dawn Inc. dba Dawn Farm to Provide In-patient and Out-patient Drug Abuse Counseling and Rehabilitation Services to 15th Judicial District Court Defendants ($65,000.00)
Attachments: 1. 17 Jun 13 15DC-Dawn Inc 2012-2013 Contract, 2. Dawn Farm LW Compliance Plan 2013
Title
Resolution to Grant Living Wage Exemption to and Approve a Sobriety Court Grant Program Contract with Dawn Inc. dba Dawn Farm to Provide In-patient and Out-patient Drug Abuse Counseling and Rehabilitation Services to 15th Judicial District Court Defendants ($65,000.00)
Memorandum
This resolution seeks an exemption of the Living Wage compliance requirement of Section 1:815 of Chapter 23 of the Ann Arbor Code of Ordinances for Dawn Farm.

Dawn Farm is a nonprofit corporation that has provided in-patient and out-patient addiction rehabilitation and recovery services to area residents since 1971. Dawn Farm’s operating funds are generated from charitable donations, grants, bequests and, to a lesser degree, patient fees. It is important to note that no person seeking treatment at Dawn Farm is turned away because of inability to pay.

Dawn Farm employs 70 persons, of which 15 persons are compensated at rates less than $12.52 per hour with health care coverage and 18 persons are compensated at rates less than $13.96 per hour without health care coverage.

Dawn Farm’s IRS Forms 990 relate the following revenue (less expenses) for the following recent years:

1. 2008: $56,895 (including $97,428 in restricted capital improvement funds);
2. 2009: -$180,251
3. 2010: -$254,998
4. 2011: $324,438 (including a one-time liquidation of real estate to reduce debt)
5. 2012: -$321,410

At present, Dawn Farm does not have the financial ability to compensate employees at rates required by Section 1:815 of Chapter 23.

Section 1:817(2) of Chapter 23 authorizes City Council to grant a partial or complete exemption from the requirements of Chapter 23 if City Council finds that 1) the application of Chapter 23 requirements would cause demonstrated economic harm to an otherwise covered employer that is a non-profit organization, and 2) that the harm outweighs the benefits of Chapter 23. An exempted entity is required by Chapter 23 to provide a written compliance plan. Attached fo...

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