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HomeMy WebLinkAboutResolution 2026-34207 RESOLUTION NO. 2026-34207 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS MARCH 4, 2026 MEETING, TO MAINTAIN THE LIVING WAGE RATES APPROVED ON FEBRUARY 3, 2025; AND SETTING FORTH THAT THE LIVING WAGE RATE SHALL REMAIN AT $13.01 PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST $3.45 PER HOUR, OR $16.46 PER HOUR WITHOUT HEALTH CARE BENEFITS, EFFECTIVE JULY 1, 2025. WHEREAS, Section 2-408 of the City Code requires, for specific service contracts, that contractors pay employees the living wage rates approved by the City Commission for any given year; and WHEREAS, on February 23, 2025, the Mayor and City Commission approved the living wage rates for the calendar year 2025 and effective on July 1, 2025, as follows: $16.46 per hour without health care benefits or $13.01 per hour with health care benefits of at least $3.45 per hour; and WHEREAS, every year, during budget discussions for the subsequent fiscal year, the City Commission considers whether to change the living wage rates that specific city contractors are required to pay their employees; and WHEREAS, generally, the living wage hourly rate increase is calculated according to any prior year increases in the overall Consumer Price Index ("CPI") for the local area, and the healthcare benefit rate increase is calculated according to any previous year increases in the CPI for medical costs for the local area; and WHEREAS, Section 2-408(d) also states that an annual increase to the living wage rates shall not exceed 3% or the Cost-of-Living Adjustment ("COLA"), if any, approved for unclassified staff; and WHEREAS, the City's past practice has been to consider the COLA approved for unclassified staff; and WHEREAS, the City has approved a 3% COLA increase for unclassified staff, equivalent to the 3% increase for union staff; and WHEREAS, to assist the Finance and Economic Resiliency Committee ("FERC") in evaluating whether to recommend an increase for the upcoming year, the Administration calculated the six-month and twelve-month fiscal impact of each 1% increment (up to 3%) across all contracts subject to the living wage ordinance; and WHEREAS, on March 4, 2026, FERC reviewed the Administration's proposed living wage increase amounts and recommended maintaining the living wage rates previously approved on February 3, 2025; and WHEREAS, if approved by the Mayor and City Commission, the living wage rates will remain the same as those approved on February 3, 2025, at no less than $13.01 per hour with health care benefits of at least $3.45 per hour or $16.46 per hour without health care benefits; and WHEREAS, due to the preemption established under House Bill 433, which amends section 218.077, Florida Statutes, it is important to note that this represents the final opportunity for the City to implement any living wage indexing or adjustments prior to the law's applicability on September 30, 2026; and WHEREAS, after September 30, 2026, the City may not establish, mandate, maintain, or otherwise require an employer to pay a minimum wage, other than a state or federal minimum wage, and may not through its purchasing or contracting procedures seek to control or affect the wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the City. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby accept the recommendation of the Finance and Economic Resiliency Committee at its March 4, 2026 meeting, to maintain the living wage rates approved on February 3, 2025; and set forth that the living wage rate shall remain at $13.01 per hour with health care benefits of at least $3.45 per hour, or $16.46 per hour without health care benefits, effective July 1, 2025. PASSED and ADOPTED this a� day of April, 20 6. . �.�,�-r�_ Steven Meiner, Mayor ATTEST: APR 2 8 2026 ; �8,,,,,, , _;�?'`• �.�y,, _���� - Rafael E. Granado, City Clerk , � � ��i���`: �': �.IN(OAP ORAiED�= �%,,2'• ,,�-q��c�.�,�;��_ ��,,,,H� APPROVED AS TO FORM & LANGUAGE & FO EXECUTION `�)� �Z6 City orney �� �� Date Procurement Requests - C2 A MIA MIBEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: April 22, 2026 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS MARCH 4, 2026, MEETING,TO MAINTAIN THE LIVING WAGE RATES APPROVED ON FEBRUARY 3, 2025; AND SETTING FORTH THAT THE LIVING WAGE RATE SHALL REMAIN AT $13.01 PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST $3.45 PER HOUR, OR $16.46 PER HOUR WITHOUT HEALTH CARE BENEFITS, EFFECTIVE JULY 1, 2025. RECOMMENDATION The Administration recommends that the Mayor and City Commission (City Commission) adopt the Resolution accepting the recommendation of the Finance and Economic Resiliency Committee at its March 4, 2026 meeting, and maintaining the living wage rates previously approved at the February 3, 2025, Commission Meeting and effective on July 1, 2025 to no less than $13.01 per hour with health care benefits of at least $3.45 per hour, or $16.46 per hour without health care benefits. BACKGROUNDIHISTORY Section 2-408 of the City Code requires that the living wage rate may, by Resolution of the City Commission, be indexed annually for inflation using the Miami PMSA Consumer Price Index for all Urban Consumers ("CPI-U" or"CPI"), Miami/Ft. Lauderdale, issued by the U.S. Department of Labor's Bureau of Labor Statistics. Starting January 1, 2021, the supplemental health care benefits rate (the per-hour rate toward health benefits)can, by Resolution of the City Commission, be separately indexed annually for inflation using the Miami PMSA CPI-U for the Miami/Ft. Lauderdale area, specifically for medical care, as issued by the U.S. Department of Labor's Bureau of Labor Statistics. However, no annual index should exceed three percent, nor should an annual increase surpass the corresponding annual compensation increase, if any (Cost of Living Adjustment "COLA"), given to unrepresented (unclassified) ciry employees. The Ciry Commission also has the discretion, by Resolution, to opt not to index the living wage rate in a given year if it determines that such an increase would not be fiscally prudent. This decision to index (or not index) the living wage rate is reviewed annually during the City Commission's consideration and approval of the city's operating budget. The current rates, approved by the City Commission on February 3, 2025, and effective on July 1, 2025, are as follows: • $16.46 per hour without health care benefits; or • $13.01 per hour with health care benefits of at least $3.45 per hour. Consistent with past practice, on February 5, 2026, the City Commission referred the discussion item C46 to the Finance and Economic Resiliency Committee ("FERC"), Attachment A, to make a recommendation on the living wage rate adjustment. 45 of 2461 ANALYSIS As stipulated in the City Code, living wage rate increases may not exceed either the local area's corresponding CPI or the COLA approved for unclassified staff, whichever is lower. For the current budget cycle, the COLA approved for unclassified staff is 3%, which therefore caps any potential increase to the living wage. For the preceding year (August 2024 — August 2025), the local CPI increased approximately 2.5% overall and 3.8% for medical services. FERC reviewed the Administration's proposed living wage increase on March 4, 2026. To assist the Committee in evaluating whether to recommend an increase for the upcoming year, the Administration calculated the six-month and twelve-month fiscal impact of each 1% increment(up to 3%) across all contracts subject to the living wage ordinance. See the table below for details. - - - Estimated Fiscal Estimated Fiscal Increase Resulting Rates g-Month Im act 12-Month Impact �% $16.62HR w/o health benefits or $83,571.57 $167,143.14 $13.14lHR with health benefits of at least $3.48/HR 2% $16.79/HR wlo health benefits or $167,143.14 $334,28628 $13.27/HR with health benefits of at least $3.52/HR 3% $16.95/HR w/o health benefits or $250,714.71 $501,429.43 $13.40/HR with health benefits of at least $3.56/HR � - The Finance and Economic Resiliency Committee reviewed and discussed the Living Wage item, and Commissioner David Suarez motioned to present this item to the City Commission with a favorable recommendation to continue Fiscal Year 2026 living wage rates, which were approved at the February 3, 2025, Commission Meeting and effective on July 1, 2025. The motion was seconded by Commission Joseph Magazine, and all were in favor. Refer to Attachment B for the March 4, 2026, FERC meeting after action. Based on the preemption established under House Bill 433, which amends section 218.077, Florida Statutes, it is important to note that this represents the final opportunity for the City to implement any living wage indexing or adjustments prior to the law's applicability on September 30, 2026. After that date, the City may not establish, mandate, maintain, or otherwise require an employer to pay a minimum wage, other than a state or federal minimum wage, and may not through its purchasing or contracting procedures seek to control or affect the wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the City. Therefore, the Administration recommends that the Mayor and City Commission adopt the Resolution accepting the recommendation of the Finance and Economic Resiliency Committee at its March 4, 2026 meeting, to maintain the living wage rates previously approved at the February 3, 2025, Commission Meeting to no less than $13.01 per hour with health care benefits of at least $3.45 per hour, or $16.46 per hour without health care benefits. FISCAL IMPACT STATEMENT Based on the FERC recommendation on March 4, 2026, there is no fiscal impact associated with this item. Does this Ordinance require a Business Impact Estimate? Cli,�k or t��;; ����r� 'c �`,�t�r� ��-�:�. (FOR ORDINANCES ONLY) If applicable, the Business Impact Estimate (BIE)was published on: See BIE at: https•//www miamibeachfl qov/city-halllcity-clerk/meetinq-noticesl 46 of 2461 FINANCIAL INFORMATION Based on the FERC recommendation on March 4, 2026, there is no fiscal impact associated with this item. CONCLUSION Following deliberation at the March 4, 2026, FERC Meeting, the Finance and Economic Resiliency Committee reviewed and discussed the Living Wage item Commissioner David Suarez motioned, and Commissioner Joseph Magazine seconded, to present this item to the City Commission with a favorable recommendation to continue Fiscal Year 2026 living wage rates, which became effective on July 1, 2025. As stated above, this represents the final opportunity to implement any adjustments to the living wage before the statute takes effect on September 30, 2026, after which the City may not, through its purchasing or contracting procedures, seek to control or affect the wages or employment benefits provided by its vendors, contractors, service providers, or other parties doing business with the City. If the Mayor and City Commission approve the Committee's recommendation to maintain the living wage rates previously approved, the rates shall continue to be: • $16.46 per hour without health care benefits; or • $13.01 per hour with health care benefits of at least $3.45 per hour. The Administration recommends that the Mayor and City Commission adopt the Resolution to accept the Finance and Economic Resiliency Committee's recommendation to maintain the living wage rates as approved on February 3, 2025, Commission Meeting. Applicable Area Citywide Is this a "Residents Riqht to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Proiect? No No Was this Aqenda Item initially requested bv a lobbyist which, as defined in Code Sec. 2-481, includes a principat enqaqed in lobbyinq? No If so, specify the name of lobbyist(s) and principal(s): Department Procurement Sponsor(s) Co-sponsor(s) Condensed Title Accept Recommendation, Maintain Living Wage Rates at $13.01 Per Hour. PR 47 of 2461 Previous Action (For Citv Clerk Use Only) 48 of 2461 NB 7. DISCUSSION REGARDING THE LiVING WAGE RATES BEGINNING APRIL 2026, IN ACCORDANCE WITH CHAPTER 2, ARTICLE VI, DIVISION 6, SECTfON 2 - 408, OF THE CITY CODE. Applicable Area: 49 of 2461 DEFERRED ITEMS 7 1�11AMIBEACH COMMITTEE MEMORANDUM TO: Finance and Economic Resiliency Committee Members FROM: Eric Carpenter, City Manager DATE: March 4, 2026 TITLE: DISCUSSION REGARDING THE LIVING WAGE RATES BEGINNING APRIL 2026, IN ACCORDANCE WITH CHAPTER 2, ARTICLE VI, DIVISION 6, SECTION 2 -408, OF THE CITY CODE. RECOMMENDATION The City Administration ("Administration")recommends that the Finance and Economic Resiliency Committee ("FERC") approve the living wage increase, effective April 1, 2026, not to exceed 3% and consistent with the approved cost of living adjustment (COLA) for unciassified employees, and provide a recommendation to the Mayor and City Commission ("City Commission"). BACKGROUND/HISTORY Section 2-408 of the City Code requires, for certain service contracts, that contractors pay employees the living wage rates that the City Commission has approved for any given year. The current living wage rates, which were approved by the Ciry Commission on February 3, 2025, and became effe�tive on July 1, 2025, are as follows: � $18.46 per hour without health care benefits; or • $13.01 per hour with health care benefits of at least $3.45 per hour. The City Code stipulates that the City Commission may adjust the living wage rates annually for inflation by the City Commission utilizing the local area's corresponding Consumer Price Index ("CPI") or Cost-of-Living Adjustment ("COLA") adjustment approved for unclassified staff; no annual index shall exceed three percent; nor shall an annual increase exceed the corresponding annual compensation increase (if any) provided to unrepresented (i.e., unclassified) City employees. Typically, rate increases are considered by the City Commission during annual budget discussions, as any increase will have a budgetary impact because contract rates are adjusted to compensate for the increased wage requirement. As is customary, the Administration refers an item annually to the Finance and Economic Resiliency Committee for discussion of adjusting the living wage rates for the subsequent year. Accordingly, on February 5, 2026, the Mayor and City Commission approved a referral to the Finance and Economic Resiliency Committee for a discussion and recommendation to the City Commission on any increases to the current living wage rates that the City Commission may want to consider for 2026. 50 of 2461 As background information, the living wage rates for local entities that enforce a iiving wage requirement are listed in the table below. — — _ --- _ _ Current Hourfy Rate Current HourlY Rate with Health_Care Benefits without Health Care Hourly Rate i Health Benefits Rate � Benefits Miami Beach ` $16.46 �512.63 ` ' S3.45 Miami � $15A0 $13.19 $1.81 Broward County !, $20.13 $16.19 $3.94 _ Miami-Dade County_i $21.91 $17.94 $3.97 ANALYSIS As stipulated in the City Code, increases in the living wage rate cannot surpass the local area's corresponding CPI or the approved COLA for unclassified staff. The most recent increase for the Miami-Fort Lauderdale-West Palm Beach area from August 2024 to August 2025 was about 2.5% for the overall CPI and 3.8% for the medical services CPI (See Attachment A). The CPI was not fully updated or released for October 2025 or later due to a suspension of federal government services (a lapse in appropriations), which prevented the Bureau of Labor Statistics (BLS) from gathering the necessary price data. Despife any increase in the CPI, the City Code stipulates that any adjustment to the living wage rates may not exceed the COLA increase approved for unclassified employees. Therefore, the current budget cycle caps any increase in the living wage at 3%. The proposed effective date of April 1, 2026, for the living wage increase will align with the budgeted City employee COLA adjustments of April 1, 2026. FISCAL IMPACT STATEMENT To assist the Committee in evaluating any recommended adjustments to the living wage rates effective April 1, 2026, the Administration has calculated the projected economic impact of each 1% increase (up to 3%) in the living wage rate. For reference, a six-month projection is provided to illustrate the impact for FY 2026, and a twelve-month projection is included to demonstrate the impact for FY 2027 (see Attachment B). The impacts of the FY 2026 Living Wage adjustments have been included in the FY 2026 Adopted Budget. Funding for the impacts of the FY 2027 Living Wage adjustments are subject to funding approval of the FY 2027 Adopted Budget. Does this Ordinance require a Business Impact Estimate? (FOR ORDINANCES ONLY) The Business lmpact Estimate (BIE) was published on . See BIE at: https://www.miamibeachfl.Aov/city-ha11/citY-clerklmeetinq-notices/ FINANCIAL INFORMATION CONCLUSION 51 of 2461 The purpose of the information inciuded herein is to assist the Committee in discussing and recommending to the City Commission the living wage rates effective April 1, 2026. Applicable Area Citywide Is this a "Residents Riqht to Know" item, Is this item related to a G.O. Bond pursuant to City Code Section 2-17? Proiect? No No Was this Aqenda Item initially requested bv a lobbvist which, as defined in Code Sec. 2-481, includes a principal enqaged in lobbYinq? No If so, specify the name of lobbyist(s) and principal(s): Deaartment Procurement Sponsor(s) Co-sponsor(s) Condensed Title DISCUSSlON REGARDING THE LIVING WAGE RATES BEGINNING APRIL 2026, IN ACCORDANCE WITH CHAPTER 2, ARTICLE VI, DIVISION 6, SECTION 2 - 408, OF THE CITY CODE. 52 of 2461 :� i i :��.ii.��i .� i ;� B CONSUMER PRICE INDEX ��'� � �: ; ; tilKt t� �rf ! 1iit�K�i \Ii�11t♦ +% <'' �• z.s. �EP��K i ti�t-�� �E t ,�s��K August 2025 SOUTHEAST INFORMATION OFFICE !, Atlanta, GA � 404-893-4222 � bls.govircgions'southeast For release: Thursday, September 11, 2025 All urban consumers Wage eamers&clerical workers Group Percent change Percent change � Index Aug 24 to Jul 25 to Index Aug 24 to Jul 25 to Aug 25 Aug 25 Aug 25 Aug 25 U.S.City Average All items(1982-84=100) 323.976 2.9 0.3 317.306 2.8 0.3 Ail items (f967=100) 97Q.489 - - 945.157 - - Food and beverages 338.366 3.1 0.4 337.722 3.0 0.4 Housing 349.277 4.0 0.3 345.073 4.0 0.3 Apparel 131.989 0.2 2.2 132.492 0.6 2.4 Transportation 273.910 0.9 0.2 278.662 0.8 0.2 Medical care 583.875 3.4 0.0 593.181 3.7 0.1 Recreationz 141.394 2.3 -0.1 132.728 1.8 -0.1 Education &communication2 � 147.152 0.3 0.3 130.911 -0.2 0.2 Other goods and services 583.313 3.9 0.2 645.032 4.0 0.3 South All items(1982-84=100) 313.558 2.6 0.3 307.743 2.4 0.3 All items(1977=100) 508.635 - - 498.424 - - Food and beverages 332.827 3.0 0.4 331.845 2.9 0.4 Housing 326.425 4.0 0.5 327.311 3.9 0.5 Apparef 139.992 -1.4 1.3 139.832 -1.5 2.0 Transportation 272.277 0.0 -0.1 271.377 0.1 -0.1 Medical care j 546.376 3.0 -0.2 562.485 2.9 0.0 Recreationz 140.747 1.8 -0.6 130.827 1,2 -0.4 Education&communication2 141.347 -0.7 0.1 122.571 -0.9 0.1 Other goods and services 552.677 3.3 0.2 603.774 3.7 0.4 All urban consumers Wage eamers&clerical workers Group Percent change Percent change �ndex Aug 24 to Jun 25 to index Aug 24 to Jun 25 to Aug 25 Aug 25 Aug 25 Aug 25 AtlantaSandy Springs-Roswell AI!items(1982-84=100) 318.877 1.7 0.1 312.343 1.8 0.3 All items (1967=100) � 961.634 - - 944.413 - - Food and beverages 335.223 3.4 1.2 333.92$ 3.3 1.2 Housing 351.160 3.0 0.2 350.107 2.7 0.1 Apparel 152.974 -7.5 -4.6 158.815 -8.0 -3.8 Transportation 280.691 0.1 0.3 273.627 0.6 0.6 Medical care 518.899 - -1.1 � 525.504 - 0.1 Recreation2 99.895 0.5 -1.3 i 93,505 2.5 -0.7 Education 8 communicationZ 143.684 1.2 i.6 122.233 0.3 1.0 Other goods and services - - - 589.177 -2.5 0.8 - - -- -- Miami-Fort Lauderdale-West Palm Beach All items(1982-84=100) 357.009 2.5 -0.2 351.451 2.3 -0.1 All items(1977=100) 575.449 - - 571.001 - - Food and beverages 340.155 5.6 1.3 339.678 5.5 1.5 Housing 407.428 3.3 -0.9 ! 407.109 3.4 0.0 Apparel 176.530 7.2 -5.4 � 180.093 3.7 -2.2 Transportation 278.387 -1.1 -0.8 ' 288.834 -2.6 -1.1 Medical care 655.291 3.8 -0.6 � 691.930 4.9 -0.3 Recreationz 136.286 -2.9 -0.1 122.488 -1.6 -0.8 Education&communication2 137.672 2.7 1.4 129.406 4.4 1.4 Other goods and services 481.290 0.0 -2.5 480.404 1.3 -1.1 'Indexes on a December 1982-84=100 base,unless otherwise noted. 2lndexes on a December 1997=100 base. -Data not available. 'Full surveys for Atlanta-Sandy Spnngs-Roswell and Miami-Fort Lauderdale-West Palm Beach are compiled every two months and are published for February,Apnl,June,August,October,and December. Note:Data are not seasonally adjusted. 53 of 2461 ATTACHMENT B ►f�tw�Mlye atr ro.�� tS1i.W►M wJo�we��.ie�a«S�wp��omer�s d n�t Ss.u/�Mq sa.s�t.s�s.li]w.��i.a rq,a/fu�.u3.0 r.r..(1�Ma�c:d rpc+ —���._... �w Nwl�Rs4 •Ma� s M�aww 71�d S�+Md T�wt EK fior� 4 Mw�M Yyact 1J•Ma�M My�t ���.a�e Rxe i3 G:OC �,:OC C I30: C.'954 O.C:'< 4.'35. 6F�5 Ji U2..:7!. �a',f$fnef•s 't�SOC ��:A C�3tc ::yi� J J0='s 9"'';' ''i:f i: 35:?3 oca+ ;5�60J ,�,j�,sq 33 5?:5' :6; s3 1' ]11 UrYK wye MI�ir•t�fr (S u.7�/�w./e�..1��.�a e.Sun Jl�t ua�r..0 r.nw el u w.rt Sxst�lq suz taa:a s.�Ms�a F.rai r.pn!sj3+.bc.»i..iw tul w•u�+� Hr Nowh aa li w.a. s wx..at. x r.�v/ S r+year Tas Esc Harc 4 wa�1w�acc u-r1w�M r�act - _.______. _— ---�t�_. - .__ .__ ` _ W#e Rate =!-+% 0.0'ilG C:6C= Q0950 0 Q:i1 9.7.35: 13'.1.0.1 Xt.�'G: h+�9M� i i5W J O:�JC 6 a63C 0 095C 0(1066 9:.'35: 35!'+33 �11065� ctr i6 5600 .03�'9: O.C3;3 :671a3.: 3.is.:ES: 31G lww�Mh'R�worsw (�u.7S/+M»/.MiM a..de a.Sls.M/IM+vMM hp�s.wlR,d�r..e S1sL/INq St�a,Tu�i s.(c)n��s w«t!Sseubl�i�(uj�rbus wpan We Nov�RNe �wueax S wcre�x r hpol S►+f�dl rr� t,c.�a�.n �Marm r�px: it-IAonra ryxr ___.� .. .._._. ..--"_�.---- �---- ._._-- � ---- -�- �-tha�eRx� liC:JC .:rX C39C: ,,;;v,C �__ _ . 3:-; :3d':b4'� ?iE:,� 7!M B!nllrts 3 a4Q7 J:SJII', O i035 C i45i 0 00% 9:?35: S�Ss9 5' .OS J49:� ar+ t6'6W QN3� 7'YE9 .5G':a�i 50:.1:9a3 �C'➢�ixrrosr,�o-�+2r.—e 4a�!'Mt ELS�roc.a •,-.ns�e a tvm�of l Sb aro i 8\,'o.•f�^rrc� ir�.:n Fon 1;��rt:C:1••-.-_q-tuQ�z:C:S na r�.�+pe•C�tr Coot Secvw 1�06'o��:�vemc�rror e.�tere 3K 54 of 2461 NB 7. DISCUSSlON REGARDING THE LIVING WAGE RATES BEGINNING APRIL 2026, IN ACCORDANCE WITH CHAPTER 2, ARTICLE VI, DIVISION 6, SECTION 2 - 408, OF THE CITY CODE. Applicable Area: Citywide Procurement ACTION: Commissioner Suarez motioned to have this item heard at Commission with a favorable recommendation to continue Fiscal Year 2025 rates. Commissioner Magazine seconded the motion. All in favor 3-0. NB 8. DISCUSS A PROP�SED NEW LEASE AGREEMENT BETWEEN THE CITY (LANDLORD) AND LiTTLE HAVANA ACTIVITIES AND NUTRITION CENTERS, INC. (TENANT) FOR USE OF APPR�XIMATELY 3,500 SQUARE FEET OF GROUND FLOOR FACILITY AND ADJACENT PLAYGROUND AREA HAVlNG APPROXIMATELY 1,407 SQUARE FETT LOCATED AT 1245 MICHIGAN AVENUE, FOR AN INITIAL TERM OF FIVE (5) YEARS, WITH TWO (2) ADDITIONAL RENEWAL TERMS OF TWO (2) YEARS EACH, AT THE CITY'S OPTION, FOR THE OPERATION OF A CHILD DAYCARE FACILITY. Applicable Area: South Beach City Manager ACTION: Commissioner Suarez motioned to have this item heard at Commission with a favorable recommendation to approve the lease agreement as presented. Commissioner Magazine seconded the motion. All in favor 3-0. NB 9. DISCUSS REQUEST FOR THE CITY TO PROVIDE A $5,000 SPONSORSSHIP FOR A REEFLINE AC7IVATION DURING ERRTH WEEK MIAM! TAKING PLACE FROM APRIL 22-26, 2o2s. Applicable Area: Sauth Beach Tourism and Culture Commissioner Tanya K. Bhatt ACTION: Commissioner Suarez motioned to have this item heard at Commission with a favorable recommendation to approve a one-time $5,000 sponsorship for a Reefline activation during Earth Week Miami. Commissioner pominguez seconded the motion. All in favor 3-0. NB 10. DISCUSS A RESOLUTION OF THE MAYOR AND CfTY COMMISSiON OF THE CITY OF MfAMI BEACH, FLORIDA, AUTHORIZING THE CITY MANAGER TO EXECUTE ANY LAND USE BOARD APPLICATIONS NECESSARY TO FACILITATE THE REVIEW OF PROPOSED IMPROVEMENTS TO TNE LINCOLN LANE NORTH R1GHT-OF-WAY, ADJACENT TO THE PROPERTIES LOCATED AT 723 LINCOLN LANE NORTH, 721 LINCOLN ROAD, AND 741 �INCOLN ROAD; SAID IMPROVEMENTS TO BE UNDERTAKEN IN CONNECTION WITH A POTENTIAL IMPROVEMENT AND MAINTENANCE AGREEMENT BETWEEN THE CITY AND MAC LR HOLDCO, LLC, THE AGENT FOR THE CONTRACT PURCHASER OF THE SUBJECT PROPERTIES; AND PROVIDING THAT THE FINAL DECISION TO PROCEED WITH THE PROJECT SHALL BE MADE BY THE MAYOR AND CITY COMMISSION FOLLOWING RECEIPT OF A RECOMMENDATION FROM THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE RELATING TO THE POTENTIAL IMPROVEMENT AND MAINTENANCE AGREEMENT. Applicable Area: South Beach Page 5 of 12 55 of 2461