20160608 SM3R5F
MIAMIBEACH
City Commission Meeting
SUPPLEMENTAL MATERIAL 3
City Hall, Commission Chambers, 3'd Floor, 1700 Convention Center Drive
June 8,2016
Mayor Philip Levine
Commissioner John Elizabeth Alem6n
Commissioner Ricky Arriola
Commissioner Michael Grieco
Com m issioner Joy Malakoff
Commissioner Kristen Rosen Gonzalez
Com missioner Micky Steinberg
City Manager Jimmy L. Morales
City Attorney Raul J. Aguila
City Clerk Rafael E. Granado
Vrsrt us at www.miamibeachfl.gov for agendas and video "streaming" of City Commission Meetings.
ATTENTION ALL LOBBYISTS
Chapter 2, Article Vll, Division 3 of the City Code of Miami Beach entitled "Lobbyists" requires the
registration of all lobbyists with the City Clerk prior to engaging in any lobbying activity with the City
Commission, any City Board or Committee, or any personnel as defined in the subject Code
sections. Copies of the City Gode sections on lobbyists laws are available in the City Clerk's office.
Questions regarding the provisions of the Ordinance should be directed to the Office of the City
Attorney.
SUPPLEMENTAL AGENDA
R5 - Ordinances
An Ordinance Amending Chapter 18 Of The City Code, Entitled "Businesses," ByAdding Article XVll,
Entitled "City Minimum Living Wage," To Provide For lmplementation Of A City-Wide Minimum Hourly
Wage;And Amending Chapter 102 Of The City Code, Entitled "Taxation," ByAmending Section 102-
371, Entitled "Application Procedures[,]" By Adding A Subsection Entitled "O Compliance With City
Minimum Living Wage" And Providing For Repealer, Severability, Codification, And An Effective Date.
10:25 a.m. Second Readinq Public Hearinq
(Sponsored by Mayor Philip Levine & Co-Sponsored by all the Members of the City Commission)
(Legislative Tracking: Office of the City Attorney)
(First Reading May 11,2016 - RsP)
(Memorandum, Ordinance & Backup Material)
1
Supplemental 3, June 8,2016
R7 - Resolution
R7R A Resolution Accepting The Findings And Recommendation Of The City Manager ln Certifying An
Emergency Pursuant To Subsection 287.055(9)(c)(6)(a)(1), Florida Statutes, AllAs More Specifically
Set Forth ln This Resolution And The Accompanying Memorandum; And As Permitted Pursuant To
Section 2-367(e) Of The City Code, Waiving, By 517 Vote Of The City Commission, The Competitive
Bidding Requirement, Finding Such Waiver To Be ln The City's Best Interest; Further, Approving And
Authorizing The Mayor And City Clerk To Execute Change Order No. 8, ln The Amount Of
$2,688,006, To Design-Build Contract (DBC) With Bergeron Land Development, lnc., Dated April 30,
2014 (The Agreement), Related To The Completion Of Roadway lmprovementsAlong WestAvenue,
Between 6th And 8th Streets, And 1Oth, 14th, And 17th Streets, West Of Alton Road; Said Change Order
No. 8, Providing For An Addition To The Scope Of Work To lnclude: Contaminated Soil Disposal,
Street Lighting Adjustments, Roadway Adjustments, Additional Gravity Walls And Sidewalks,
Drainage For Harmonization, Park Driveways, Landscaping, Re-Writing Lighting Specifications,
Painting Of Fly-Over, And Associated Permitting.
(Public Works)
(Revised Memorandum & Resolution)
2
MIAMIBEACH
Gity of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,
www.miamibeachfl.gov
TO:
FROM:
CC:
DATE:
SUBJECT:
COMMISSION MEMORANDUM
Mayor Philip Levine and Members of the City,Commission
Raut J. Asuita, city Attot7qQ ;
Jimmy L. Morales, City Manager
June 6, 2016 SECOND READING
PUBLIC HEARING
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAM! BEACH, FLORIDA, AMENDING CHAPTER 18 OF THE CITY CODE,
ENTTTLED "BUSTNESSESI,]" BY ADDTNG ARTTCLE XVil, ENTTTLED ,,CtTy
MINIMUM LIVING WAGE[,I" TO PROVTDE FOR IMPLEMENTAT|ON OF A
CITY-WIDE MINIMUM HOURLY WAGE; AND AMENDING CHAPTER 102 OF
THE CITY CODE, ENTTTLED "TAXATION[,]" By AMENDTNG SECTTON 102-
371, ENTTTLED "APPLICATION PROCEDURES[,]" By ADDTNG A
SUBSECTION ENTITLED "(J) COMPLTANCE W|TH CITY MINTMUM LtVtNG
WAGE" AND PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION,
AND AN EFFECTIVE DATE.
RECOMMENDATION
The proposed Ordinance was approved by the City Commission at First Reading on May
11,2016 and referred to the Finance and Citywide Projects Committee for public hearing, fact
finding, and debate. At a specially set meeting on June 3, 2016, members of the Committee
heard expert testimony, testimony from the public and City staff, and considered supporting
documents entered into the legislative record. At the conclusion of that hearing, the members of
the Committee made findings, unanimously approved the Ordinance, and returned it to the full
commission for Second Reading. The transcript of that proceeding as well as written material
entered into the legislative record are attached here. Staff recommends that the City
Commission approve the Ordinance at Second Reading on June B, 2016.1
' Between First and Second Reading, the City Attorney's Office recommended minor changes to the
Ordinance, which are incorporated into the proposed Ordinance for Second Reading. These include
changes to a few words regarding construction of the Ordinance, and minor changes to the effective date
Agenda ltem
Date
Rsn
3
SUMMARY OF THE PROPOSED ORDINANCE
This Ordinance, raising the minimum living wage in the City of Miami Beach, has been
proposed and sponsored by Mayor Philip Levine. The proposed legislation would gradually
raise, over a period of four years, the minimum living wage for all workers employed in the City
and covered by the federal minimum wage.
The current minimum wage is currently $8.05 per hour, as mandated by the State of
Florida's Minimum Wage Act. The Ordinance would raise this rate to $13.31 per hour by 2020,
the rate currently mandated for employees of City contractors pursuant to the City's Living
Wage Ordinance (as codified in Miami Beach City Code 52-408). The City's minimum living
wage would be set at $10.31 per hour beginning in2017, with one dollar an hour increases
every year until the rate of $13.31 was reached on June 30, 2020. Thereafter, the City
Commission could annually, at its discretion and by Resolution, consider whether an increase in
an amount equal to the Consumer Price lndex for the year should be required. Enforcement
would be provided by private right of action to a court of competent jurisdiction and of the
Ordinance administrative penalties by the City Manager.
ANALYSIS
The United States Congress enacted the Federal Fair Labor Standards Act, 29 U.S.C.
5201 ('FLSA"), in 1938. Underthe FLSA, the federal minimum wage was set at $0.25 an hour,
and has since then increased steadily over time. Since 2009, the federal minimum wage has
been $7.25.2
While the U.S. economy saw steady growth and an improvement in the jobless rate
since 2009, wages have been flat or falling for much of the labor force. Currently across the
country, there exists an ongoing campaign to raise the federal minimum wage above the current
$7.25 level. A January 2015 poll by Hart Research Associates found that75% of Americans
(including 92% of Democrats, 73o/o of lndependents, and 53% of Republicans) supported a
federal minimum wage increase to $12.50 by 2020. Considering that a February 2013 poll by
the Pew Research Centerfound that 71% of Americans supported a minimum wage increase,
popularity is only surging for such changes.
The federal and state government has not, however, acted. The U.S. Conference of
Mayors' "Cities of Opportunity Task Force," in August 2014, endorsed higher city minimum
of the Ordinance and dates for incremental increases in the minimum wage from June of each year to
January of each year from 2018-2021.
' Generally, the FLSA covers employers engaged in "interstate commerce" and have annual revenues of
over $500,000.
4
wages as key tools for fighting income inequality at the local level. Over the past year, an
unprecedented number of cities and counties have moved to adopt higher local minimum
wages. ln addition, cities are proposing substantially higher wage levels than the federal or state
minimum wages (see Table 1).
The Cost of Livinq in the Citv of Miami Beach
A recent study based off the 50-30-20 budgeting rule (50% of income for necessities;
30% discretionary; 20% saved) calculated a cost-of-living comparison on a national scale
across the 75 most populous U.S. cities, including Miami. ln researching living expenses that
include rent, groceries, utilities, transportation, and healthcare, they found the yearly salary
needed to "live comfortably" in Miami to be about $77,000, the sixth most in the country.
The results also showed Miami's median income of just under $31,000 is about $46,000
short of that number, representing "the biggest gap between actual and ideal incomes of any
major city in this study."3
Massachusetts lnstitute of Technology ("MlT") recently released research estimating the
cost of living and hourly wage necessary to support a minimal lifestyle in Miami-Dade County.
That study sets a minimum of $11.45 per hour in order for a single person to survive here in
2016. lf family and children are added, the hourly wage necessary jumps to between $18 and
$25 per hour. The Florida minimum wage is currently $8.05 per hour, $16,744 per year, if
working 40 hours a week for 52 weeks (2,080 total hours). The graph below summarizes the
MIT findings. The Research lnstitute on Social and Economic Policy at Florida lnternational
University recently theorized based upon available data that the cost of living in the City of
Miami Beach is likely much higher.
Miami-Dade County Annual and Hourly Cost of Living Estimates by Household
Composition: 201 6 (tn 201 4 dollars)
Adults No Children 1 Chald 2 Children
Annual Living Annual Living Annual Living
3 Children
Annual LivingWage Wage Wage
1 Adult $23,82 $1 1.45 $50,1 1 4 $24.09 $58,584 $28.17 $74,117
0
2 Adults $38,42 $18.47 $47,224 $22 70 $52,417 $25.20 $59,388
6
Wage
$3s.63
$28.55
Source: Massachusetts lnstitute of Technology (MlT) Living Wage Calculator. 2016. Living
Wage Calculation for Miami-Dade County, FL htto://livinqwaqe.mit.edu/counties/12086
3 http://miami.curbed.com l2O16t4t2Ol11463074tmiami-salary-live-comfortably
3
5
The Distinct Role of Loca! Minimum Waqes
Local minimum wages offer several distinct advantages that differentiate these policies
from state or federal minimum wage laws:
. They allow higher-cost cities to set minimum wage rates that better correspond to higher
local living costs;
. They allow localities in states where the legislature is slow to raise the minimum wage to
address the problem on their own;
. They provide venues for demonstrating the feasibility of substantially higher minimum
wages, and pursuing key reforms such as annual inflation indexing and higher tipped- minimum
wages, which are less commonly adopted at the state level.
The Economic Evidence Shows that Gity Minimum Wages
Boost Earninqs Without Reducinq Emplovment
Economic evidence indicates that the higher city minimum wages enacted in U.S. cities
to date have boosted earnings without slowing job groMh or causing business relocations.
These findings are consistent with the bulk of modern research on higher state minimum wages,
which has generally found no statistically significant evidence of job losses resulting from
minimum wage increases passed over the last 20 years in the United States.
This is partly because the bulk of the low-wage positions affected by city minimum
wages are in fields such as restaurants, retail, building services, home health care, and child
care jobs that serve city-based customers such as residents, office workers, and tourists at city
locations. As a result, most cannot practically be moved by their employers to locations outside
of the city while still retaining their customer bases.
Table 2 summarizes the most rigorous research examining the employment impact of
minimum wage increases at the local level. The studies below pay particular attention to the
experience of minimum wage increases in Santa Fe and San Francisco, which have had local
minimum wages in place for over a decade now and offer the most complete picture of how
businesses in low-wage sectors have adjusted to higher wage floors.
ln both San Jose and San Francisco, for example, jobs in the restaurant industry grew
faster after the minimum wage was increased than they did in surrounding cities and counties
that did not raise wages. ln SeaTac, Washington-the first city in the United States to fully
transition to a $15 minimum wage for workers in the hospitality and travel industries-predicted
layoffs and expansion-plan cancellations did not materialize, and in fact some business owners,
who were previously opposed to the wage increase, have expanded operations. And in Seattle,
which began phasing-in its $15 minimum wage in April 2015, initial signs are positive. The
6
Seattle region's unemployment rate hit an eight-year low of 3.6 percent in Augusl 2015,
significantly lower that the state unemployment rate of 5.3 percent. And King County, where
Seattle is located, is well on its way to breaking last year's record for the number of business
permits issued to food service establishments.
This is how the media has reported on city minimum wage increases in San Jose,
SeaTac, and Seattle:
"lnterviews with San Jose workers, businesses, and industry officials show it has
improved the lives of affected employees while imposing minimal costs on employers."
USA Today, "ln San Jose, Higher Minimum Wage Pays Benefits" (June
14,2014)
"Fast-food hiring in the region accelerated once the higher wage was in place. By early
this year, the pace of employment gains in the San Jose area beat the improvement in the
entire state of California."
Wall Street Journal, "What Happened to Fast-Food Workers When San
Jose Raised the Minimum Wage? Hold the Layoffs" (April 9, 2014)
"Those who opposed the $15 wage in SeaTac and Seattle admit there has been no
calamity so far."
Washington Posf, "No Calamity Yef as Sealac, WA, Adjusfs fo $75
Minimum Wage" (September 5,2014)
"For all the political uproar it caused, SeaTac's closely watched experiment with a $15
minimum wage has not created a large chain reaction of lost jobs and higher prices..."
Seaff/e Times, "$15 Wage Floor Slowly Takes Hold in SeaTac" (June 13,
2014)
"When Seattle's pioneering $15 minimum wage law was the subject of fierce debate last
year, Tom Douglas predicted it would inflict a $5 million hit on his empire of more than a dozen
restaurants ... Yet six months after the first wage increase to $11 per hour took effect, the fear of
soaring payrolls shows no signs of killing the appetite of Douglas - or the rest of the Seattle
restaurant world - for rapid expansion. Dozens of new restaurants have opened in the city
since April 1, including many new eateries run by the law's fiercest critics, such as Douglas." -
Puget Sound Business Journal, "Apocalypse Not: $15 and the Cuts that
Never Came" (October 23,2015)
5
7
FLoRIDA INcoME REGULATIoNS
Prior to the establishment of the Florida Minimum Wage Act (see below), local
municipalities in Florida enacted "Living Wage Ordinances." These laws set a local minimum
wage for certain categories of employment at a rate higher than the one required under FLSA.
Miami-Dade County unanimously passed its Living Wage Ordinance in 1999. The City of Miami
Beach followed in 2001, becoming the first city in the State of Florida to have its own Living
Wage Ordinance.a lt applies to City contractors. The City of Miami Beach's statutory living
wage is currently set at $11.62 per hour for jobs with health benefits, and $13.31 for those
without health benefits. Miami Beach City Code $2-408(a)
ln 2003, the Florida legislature passed, and Governor Jeb Bush signed, the "Minimum
wage requirements by political subdivisions; restrictions" law, Fla. Stat. S 218.077. That Statute
prohibited municipalities from adopting local ordinances establishing a local minimum wage
higher than the federal minimum wage, which was at that time ($5.tS1. Specifically, it read, in
pertinent part:
(2) ...a political subdivision may not establish, mandate, or otherwise require an
employer to pay a minimum wage, other than a federal minimum wage, to apply
a federal minimum wage to wages exempt from a federal minimum wage.
The Statute did leave municipalities with the power to maintain Living Wage Ordinances, but
only those that applied to city vendors and contractors.
ln immediate response, in 2004, 71.25o/o of Florida voters approved a Constitutional
Amendment (now codified as Article X, Section 24 of the Florida Constitution), establishing a
higher statewide minimum wage of $6.15 and indexed it to the Consumer Price lndex. Florida's
Amendment has a policy statement, which explicitly provides:
(a) PUBLIC POLICY All working Floridians are entitled to be paid a minimum
wage that is sufficient to provide a decent and healthy life for them and their
families, that protects their employers from unfair low-wage competition, and
does not force them to rely on taxpayer-funded public services in order to avoid
economic hardship.5
The constitutional amendment specifically provides that municipalities may establish local
minimum wages higher than those set by the state. Specifically, the amendment read:
(f) . . . This amendment provides for payment of a minimum wage and shall not
be construed to preemot or otherwise limit the authoritv of the state leqislature or
anv other public bodv to adopt or enforce anv other law. reoulation. requirement.
policv or standard that provides for oavment of hiqher or supplemental waqes or
o Other counties in Florida with Living Wage Ordinances include: Broward County (October 8, 2002) and
Palm Beach County (February 25, 2OO3); cities include Orlando (August 25, 2003).
' Article X, Section 24, Fla. Constitution, subsection (a).
8
benefits, or that extends such protections to employers or employees not
covered by this amendment.6
ln 2013, the Florida state legislature passed, and Governor Rick Scott signed, an
amendment to Fla. Stat. $ 218.077, which ignores the constitutional amendment language and
broadened the State's preemption of minimum wage law to include preemption of local
regulation of benefits as well as wages. The statute currently reads:
(2) ...a political subdivision may not establish, mandate, or othenruise require an
employer to pay a minimum wage, other than a state or federal minimum wage,
to apply a state or federal minimum wage to wages exempt from a state or
federal minimum wage, or to provide employment benefits not otherwise required
by state or federal law.
It is our opinion that the 2004 Minimum Wage Gonstitutional Amendment reserved
the authority of local governments to establish higher minimum wages than that set by
federal or state !aw. Thus, Florida's statutory preemption of a loca! minimum wage, as
set forth in both the 2003 and 2013 versions of Fla. Stat. $218.077, is unconstitutional
because it violates that Amendment by taking power reserved to the municipalities and
preempts it to the state. Therefore, we believe that an Ordinance by the Mayor and
Commission of the Gity of Miami Beach, which sets a minimum wage higher than that set
by the state or federal government, would be valid and would be upheld in court.
FINANCIAL IMPACT
In accordance with Charter section 5.02, which requires that the "City of Miami Beach
shall consider the long-term economic impact (at least 5 years) of proposed legislative actions,"
this shall confirm that the City Administration evaluated the longterm economic impact (at least
5 years) of this proposed legislative action, and determined that there will be no measureable
impact on the City's budget.
CONCLUSION
The proposed Ordinance comes at the right time. Miami Beach's cost of living is
expensive and getting worse. Hotel room rates have risen to some of the highest in the country,
leading to record profits. But wages have not reflected these realities.
Cities around the country are setting fair wages for workers in their cities that allow
employees to meet their basic human needs. Studies have shown that these higher living
minimum wages have benefited everyone: employment rates remained steady, turnover was
6 td. atsubsection (f).
9
reduced, and employees were happier.
The slow and gradual increase over four years in the wages paid to the City's lowest
paid workers proposed here is prudent, fair, and laMul.
RJA/rfr
F:\ATTO\ROSR\RFR CMB\MINIMUM WAGE\COMMISSION MATERIALS\2O16-06-06
MINIMUM WAGE MEMO (SECOND READINGX2).docx
10
ORDINANCE NO.
AN ORDINANGE OF THE MAYOR AND GITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 18 OF THE CITY CODE,
ENTITLED "BUSINESSES," BY ADDING ARTIGLE XVll, ENTITLED "CITY
MINIMUM LIVING WAGE," TO PROVIDE FOR IMPLEMENTATION OF A C!TY.
WIDE MINIMUM HOURLY WAGE; AND AMENDING CHAPTER 102 OF THE
CITY CODE, ENTITLED "TAXAT!ON," BY AMENDING SECTION 102.371,
ENT|TLED "AppLtCATtON PROCEDURES[,]" BY ADDTNG A SUBSECTION
ENTTTLED "(J) COMPLTANCE WITH CITY MINIMUM LtVtNG WAGE" AND
PROVIDING FOR REPEALER, SEVERABILIW, CODIFICATION, AND AN
EFFECTIVE DATE.
WHEREAS, promoting the welfare of those who work within the City of Miami Beach is
one of the principle objectives of its municipal government; and
WHEREAS, the federal minimum wage is $7.25 per hour, effective at that level since
July 24,2009 and, after years of inaction by the United States Congress, it is time for cities and
states to lift families out of poverty and stimulate the economy by raising the minimum wage;
and
WHEREAS, a January 2015 poll by Hart Research Associates found that 75% of
Americans (including 92o/o of Democrats, 73% of lndependents, and 53o/o of Republicans)
supported a federal minimum wage increase to $12.50 by 2020, which surpassed a February
2013 poll by the Pew Research Center finding that 71% of Americans supported a minimum
wage increase; and
WHEREAS, the Florida Constitution was amended in 2004, with the support of 71.25%
of the popular vote, to establish a minimum wage in Florida higher than that required by federal
law; and
WHEREAS, that Amendment to the Florida Constitution explicitly stated as its public
policy that "[a]ll working Floridians are entitled to be paid a minimum wage that is sufficient to
provide a decent and healthy life for them and their families, that protects their employers from
unfair low-wage competition, and does not force them to rely on taxpayer-funded public services
in order to avoid economic hardship"; and
WHEREAS, that Amendment to the Florida Constitution explicitly stated that it "shall not
be construed to preempt or otherwise limit the authority of the state legislature or any other
public body to adopt or enforce any other law, regulation, requirement, policy or standard that
provides for payment of higher or supplemental wages or benefits"; and
WHEREAS, the poverty wage threshold for single adults providing only for themselves is
$5.00 per hour (or $10,400 per annum assuming 2,080 hours worked per year); and
WHEREAS, poverty thresholds do not account for living costs beyond a very basic food
budget; the federal poverty measure does not take into consideration costs like child care and
health care that not only draw from one's income, but also are determining factors in one's
ability to work and to endure the potential hardships associated with balancing employment and
I of 6
11
other aspects of everyday life; and, further, poverty thresholds do not account for geographic
variation in the cost of essential household expenses; and
WHEREAS, the newer "Living Wage" model, an alternative measure of basic needs to
the poverty threshold, is a market-based approach that draws upon geographically specific
expenditure data related to a family's likely minimum food, child care, health insurance, housing,
transportation, and other basic necessities (e.9. clothing, personal care items, etc.) costs; and
WHEREAS, the model draws on these cost elements and the rough effects of income
and payroll taxes to determine the minimum employment earnings necessary to meet a family's
basic needs while also maintaining self-sufficiency; and
WHEREAS, the living wage in the State of Florida for single adults providing only for
themselves is $10.94 per hour (or $22,755 per annum before taxes assuming 2,080 hours
worked); and
WHEREAS, the living wage in Miami-Dade County for single adults providing only for
themselves is $11.45 per hour (or $23,816 per annum before taxes assuming 2,080 hours
worked); and
WHEREAS, the living wage for the cities of Miami-Fort Lauderdale-Pompano Beach,
Florida for single adults providing only for themselves is $11.49 per hour (or $23,899 per annum
before taxes assuming 2,080 hours worked); and
WHEREAS, the minimum hourly wage in the State of Florida is $8.05, which is modified
annually based upon inflation and a cost of living formula; and
WHEREAS, the minimum hourly wage in the State of Florida was last increased on
January 1,2015, but was not increased on January 1, 2016; and
WHEREAS, the City of Miami Beach is a longstanding municipal leader in ensuring the
utmost protection of the civil rights of its diverse and cosmopolitan population; and
WHEREAS, other culturally and economically diverse destination cities and counties
with large tourism industries - including San Francisco, Seattle, Chicago, Los Angeles, New
York, and the District of Columbia - have seen it fit to significantly increase their own minimum
wages to better serve their working class residents; and
WHEREAS, the weight of research on previous minimum wage increases shows that
raising the minimum wage has little or no adverse impact on employment and prices; to the
contrary, according to the Economic Policy lnstitute, raising the minimum wage will help the
economy at large, because workers' increased spending power will increase our nation's gross
domestic product by about $33 billion and create approximately 140,000 jobs; and
WHEREAS, the City of Miami Beach is a vibrant multicultural community with significant
tourism, service, and hospitality industries that must be founded upon the fair and equal
treatment of the workforce; and
WHEREAS, the Mayor and Commission of the City of Miami Beach wish to ensure that
each person working within the City limits is paid a minimum living hourly wage.
2of6
12
NOW, THEREFORE, BE !T DULY ORDAINED BY THE MAYOR AND CIry COMMISSION OF
THE CITY OF MIAM! BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. ENACTMENT
That the Code of the City of Miami Beach be amended to add Sections 18-920, 18-921,
18-922,18-923, and 18-924, and that section 102-371 be amended as follows:
CODE OF THE CITY OF MIAMI BEAGH, FLORIDA
CHAPTER 18 - BUSINESSES
ARTICLE XV!I. CIry MINIMUM LIVING WAGE
Sec. 18-920. Definitions.
For ourposes of this Section. the followino definitions aoolv:
The terms "Emplover." "Emplovee." "Tipped Emplovee." and "Wage" shall have the meaninqs
established under the federal Fair Labor Standards Act ("FLSA"). includino its implementinq
requlations.
"Fair Labor Standards Act" or "FLSA" means the United States Fair Labor Standards Act of
1938. 29 U.S.C. S 201 et seq.. in force on the effective date of this chapter and as thereafter
amended.
"State Minimum Waoe Laws" means the Florida Minimum Waqe Act. Fla. Stat. 448.01 et seq..
in force on the effective date of this chaoter and as thereafter amended. tooether with aoplicable
provisions of the Florida Constitution. Fla. Const. art. X. Q 24.
Sec. 18-921. Minimum Hourlv Livinq Waqe.
Everv Emolover shall pav no less than the followinq Waoes to each Emplovee for each hour of
work oerformed for that Emplover while phvsicallv present within the qeoqraphic boundaries of
the Citv:
(a) Beoinnino onJ# Januarv 1. 2018. the oreater of: (1) the minimum hourlv
Waqe set bv the State Minimum Waqe Laws: (2) the minimum hourlv Waqe set bv
Fair Labor Standards Act: or (3) $10.31 oer hour.
(b) Beqinnino orp# Januarv 1. 2019. the qreater of: (1) the minimum hourlv
Waoe set bv the State Minimum Waqe Laws: (2) the minimum hourlv Waqe set bv
the Fair Labor Standards Act: or (3) $11.31 per hour.
(c) Beqinnino on=#+9 Januarv 1. 2020. the qreater of: (1) the minimum hourlv
Waqe set bv the State Minimum Waoe Laws. (2) the minimum hourlv Waqe set bv
the Fair Labor Standards Act: or (3) $12.31per hour.
(d) Beqinninq orF#€# Januarv 1. 2021, the qreater of: (1) the minimum hourlv
Waqe set bv the State Minimum Waqe Laws. (2) the minimum hourlv Waqe set bv
the Fair Labor Standards Act: or (3) $13.31 per hour.
3 of 6
13
Indexinq. Beqinninq o . and everv vear thereafter, the minimum
wage rate mav, bv resolution of the citv commission, be indexed annuallv for inflation using the
Miami PMSA Consumer Price lndex for all Urban Consumers (CP|-U) Miami/Ft. Lauderdale,
issued bv the U.S. Department of Labor's Bureau of Labor Statistics. Notwithstandino the
precedino, no annual index shall exceed three oercent. The citv commission mav also, bv
resolution. elect not to index the minimum waoe rate in anv particular vear. if it determines it
would not be fiscallv sound to implement same (in a particular vear). The determination to index
(or not index) the livino waqe rate shall be considered annuallv durinq the citv commission's
review and approval of the citv's annual operating budqet.
ln the event that the citv commission has determined, in anv particular fiscal vear (or vears). to
not index the livinq waqe rate. and thereafter determines that makinq up all or anv part of the
orior vear's (or vears') unindexed percentaqe would not have an adverse fiscal impact upon the
citv, then the citv commission shall also have the rioht, but not the obliqation. to cumulativelv
index the livinq waqe rate to "make-up" for anv deficiencies in the orior vear (or vears) where
there was (were) no increase(s) (the "catch up" election). The "catch-uo" election must be
approved bv resolution.
For Tioped Emplovees meetinq eliqibilitv requirements for the tio credit under the FLSA.
Emolovers mav credit towards satisfaction of the Minimum Waqe in Subsections (a)-(e) tips up
to the amount of the allowable FLSA tip credit.
Sec. 1 8-922 Retaliation Prohibited.
It shall be unlawfulfor an Emolover or anv other oartv to discriminate in anv manner or take
adverse action aqainst anv person in retaliation for exercisinq riohts protected under this
ordinance. Riqhts orotected under this ordinance include. but are not limited to. the riqht to file a
comolaint or inform anv person about anv oartv's alleoed noncompliance with this ordinance,
and the riqht to inform anv person of his or her potential riohts under this ordinance and to assist
him or her in assertinq such riohts.
Sec. 18-923 Enforcement.
Persons aqqrieved bv a violation of this ordinance mav brinq a civil action in a court of
comoetent iurisdiction aoainst an Emplover or oerson violatinq this ordinance and. uoon
prevailinq, shall recover the full amount of anv back waoes unlawfullv withheld olus#
e#+**i{#u*ede]# the same amount as liquidated damaqes. and shall be awarded reasonable
attornev's fees and costs. ln addition, thev shall be entitled to such leqal or equitable relief as
mav be approoriate to remedv the violation includinq, without limitation. reinstatement in
emolovment and/or iniunctive relief. Actions to enforce this ordinance shall be subiect to a
statute of limitations of two vears or, in the case of willful violations. three vears.
Sec. tA-924. Cons ien
It is intended that
develooed under t inanc.e_olany
imolementino reoulations.
4of6
14
Sec. 18-925.See# Required Affidavit of Compliance.
ln order to apolv for. renew. or receive a transferred business tax receipt pursuant to Citv Code
Sec. 102, each business shall submit with their initial or renewal application an affidavit attestino
to compliance bv that business with the provisions promulqated under Section 1B-921 of this
Article. No business shall receive a business tax receiot unless the Citv receives such an
affidavit.
Sec. 18-926.See * License Denial. Revocation. or Suspension for Certain Offenses.
The Citv Manaqer. for qood and sufficient cause, mav denv an application for
anv permit or license issued under this Code if, durinq the S-vear period prior to the date of the
apolication, the aoolicant has admitted quilt or liabilitv or has been found ouiltv or liable in anv
iudicial or administrative proceedinq of committinq or attemptinq to commit a willful violation. or
two or more violations which do not include a willful violation. of the provisions oromuloated
under this Article or under the State Minimum Waqe Laws or the federal Fair Labor Standards
Act.
CHAPTER 102. TAXATION
ARTICLE V. LOCAL BUSINESS TA)(
Sec. 102-371. - Application procedures.
(i\ Compliance with Citv Minimum Livinq Waqe. No license shall be issued or qranted lo
anv person to enoaoe in anv business named. identified, or encompassed bv this article
unless that oerson or business'aoplication includes an affidavit. leqallv bindinq upon the
person or business. attestino to that person or business' compliance with the Citv
Minimum Livino Waqe Ordinance. Chapter 18. Article XVll.
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith are hereby repealed.
SECTION 3. SEVERAB!L!TY.
lf any section, sentence, or phrase of this ordinance is held to be invalid or
unconstitutional by any court of competent jurisdiction, then said holding shall in no way affect
the validity of the remaining portions of this Chapter, Article, or Division of the Miami Beach City
Code.
5 of 6
15
SECTION 4. COD!FICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is
hereby ordained that the provisions of this Ordinance shall be added to the Code of the City of
Miami Beach, Florida. lf applicable, the sections of this Ordinance may be renumbered to
accomplish such intention, and the word "ordinance" may be changed to "section," "article," or
other appropriated word.
SECTION 5. EFFECTIVE DATE.
This Ordinance shalltake effect
and-adoption-
PASSED and ADOPTED this day of
ATTEST:
2016.
Rafael E. Granado, City Clerk Philip Levine, Mayor
(
Commissioner .tofin
nosen Conzatez. Co )
Underline denotes additions.
S+rit<e+nreu9h denotes de letions.
Double-uncledine denotes additions after First Reading.
@ denotes deletions after First Reading.
APPROVED AS TO
FORM & IANGUAGE
& FORD(ECUTION
-4.-0u,t-c\r\ra6 of 6
DaCI
16
Page 1
IN RE: FINATICE A}ID
CITYWIDE PROJECTS COMMITTEE
/
Miami Beach City Hall
1700 Convention Center Drive
Miami Beach, Elorida 33139
Friday, June 3, 2OL6
COMMITTEE MEETING ON
CITY MINIMUM LIVING V{B'GE
National Reporting Service(305) 313-1295
17
Page 2
1
2
APPEARJAI{CES:
RICKY ARRIOLA, COMMTSSTONER
JOY }4Ar.AKOFF, COMMTSSTONER
ELTZABETH AIEMAT{, COMMTSSIONER
DONALD PAPY, CITY ATTORNEY
ALLTSON WTLLTAI{S, CFO
I
9
10
11
L2
13
L4
15
76
l1
18
L9
20
27
22
23
24
25
National Reporting Service
( 30s) 313-1295
18
Page 3
1 Thereupon
2
3
4
5
6
1
B
9
10
11
72
13
74
15
76
71
1B
t9
20
27
22
23
24
z3
COMMISSIONER ARRIOLA: We have a
real.ly interesting topic today. This is a
topic of minimum wage here in our city, and
I know we have a J.ot of opinions on this
matter, and werre going to have a really
interesting discussion today. There's a
few things, housekeeping, that need to take
p1ace.
This is a particular type of meeting
where wefre going to ask that folks that
eoming up to speak get sworn in, and our
court reporter here will swear you in.
We're going to hear, first, from some folks
from FIU, an economists, and a
representative from the National Employment
Law Practice come in, and then we'd love to
hear from members of the public on how they
feel about this topic of potentially
raising the minimum wage here in Miami
Beach.
I know we have fo]-ks from the
chamber of commerce, some union
representatives, members at large of the
public, So we want to try to get and the
National Reporting Service(30s) 373-1295
19
1
2
3
4
5
6
1
B
9
10
11
L2
13
l4
15
t6
L1
18
L9
20
21,
22
23
24
atr-LJ
Page
hotel associationr So we want to get as
many folks to speak as possible.
Wefre going to J-et the folks from
FIU as weJ.J. as the National Employment Law
Practice speak on their expertise in this
matter to advise my feJ.J.ow commissioners on
this, and then, obviously, we'd love to
hear from folks from the charnber, and the
hotel association, the union, and anybody
else who wants to speak on this matter.
Okay? I[e okay?
MR. ROSENWALD: Yes.
COMMISSIONER ARRIOLA: How do you
want to do the swearing in, one-by-one?
MR. ROSENWAID: }Ie can do it just
everybody altogether.
COMMISSIONER ARRIOLA: Everybody?
Okay.
MR. ROSENWALD: Everybody who
intends to speak today, please stand up,
and the court reporter will swear you in.
(Thereupon, the audience was sworn.)
MR. ROSENWALD: If I can just give
some instructions. This is a legislative
fact-finding hearingr So you have been
National Reporting Service(30s) 313-1295
20
1
2
3
4
5
6
1
8
9
10
11
L2
13
L4
15
76
71
18
19
20
2t
22
Z3
AAZ+
Page
sr{orn. When you come up, introduce
yourselves, say your name, spell it for the
court reporter. If he canrt hear your
he may stop you and teII you to speak more
slowly or more clearly, and please do so
if he asks.
Also donrt while we expect
discussion, please don't speak over each
other, because our court reporter is trying
to take everything down. So with that
I will first invite Laura Huizar who is a
staff attorney with the National Employment
Law Project to come up and give testimony
to the committee. Thank you.
COMMISSIONER ARRIOLA: Good
afternoon.
MS. HUIZAR: Good afternoon. Thank
you. Can you hear me okay? Is that okay?
Perfect. Good. My n€rme is Laura,
L-A-U-R-A, Huizar, [I-U-I-Z-A-R, and I 'm a
staff attorney with the National Employment
Law Project or NELP. I actually EJrow up in
Florida, in OrJ-andor so it's g'reat to be
back here.
TIerre a national nonprofit advocacy
National Reporting Service(305) 313-1295
21
1
2
3
4
5
6
1
8
9
10
11
72
IJ
L4
15
76
71
18
L9
20
2L
22
23
24
25
Page
organization. ![e're based in New York City
but have offices around the country, and
I'm based in our D.C. office. Our staff
are recognized as poJ.icy experts on a
number of employment policy issues,
including the minimum wage, and in 2004
NELP was the lead drafter of the 2OO4
constitutional amendment here in Florida
which created the first statewide mini:num
wage.
Paul Song, who is my colleague, was
the lead drafter, and intended as part of
that constitutional amendment to give
cities like the City of Miami Beach the
right to enact loca1 minimum wage that
exceeds the state minimum wage.
So the 2004 amendment was really a
response to the 2003 law that was passed in
the state which had tried to prohibit doing
that kind of or passing that kind of
legislation. So werre very excited to be
here to support Mayor Philip Leviners
proposal to raise the City of Miami Beach's
minimum wagre to $13.31 by 2O2O .
So I'11 speak a littJ-e bit about the
National Reporting Service
(305) 313-1295
22
1
2
3
4
5
6
1
8
9
10
11
L2
13
T4
15
L6
71
18
t9
20
27
))
23
.Az-a
25
Page 1
national context for this tlpe of
legislation, some of the things wefve
learned from other cities that have so far
enacted similar proposals, and some of the
economic research that we've seen that
really backs up or supports this kind of
measure , and then I 'm happy to ans!iler any
questions you might have.
So yesr w€'re here in support of the
mayorrs proposal. As you probably know,
cities around the country have been passing
minimum wage legislation in growing nr:rnbers
in recent years. This has been really a
response to declining yrag'es that werve seen
all over the country.
ilust between 2OO9 and 2014 rire sarr
that the real median vrage for workers
across the country declined by 4 percent,
and the declined was even steeper for
low-wage workers. So we've seen the value
of wages go down at the same time as income
inequality has increased and at the same
time that the federal- E1overnment, the
federal minimum wage has stagnated at 7 .25
an hour.
National Reporting Service(305) 313-1295
23
1
2
3
4
5
6
1
B
9
10
11
72
13
T4
15
16
l1
1B
t9
20
27
22
23
24
25
Page
In 2003 only two cities, San
Francisco and Santa Fe, had a minimum wage
that was higher than the state. By 2OL3
between 2013 and 2OL4, that nr:mber had
increased to about 20 cities, and today
ahout 38 cities have enacted their own
higher minimum wage legislation.
And currently, you'll see that more
and more cities and states are moving
towards higher nurnbers than we've seen
before in terms of wage rates, and so werre
seeing more places go to 15 an hour.
California and New York just recently
adopted legisJ-ation that statewide wiJ.J.
establish $15 an hour as the minimum wage.
Cities that have done the same are
Los Angeles in Cal-ifornia, San Francisco,
Seattle, and SeaTac, Washington. In 2OL4
Chicago adopted their own $13 minimum wage
legislation which is being phased in by
20L9. The state of Oregon recently passed
its own legislation which will increase the
state's minimum wage to 12.50, 13.50, or
L4.75 by 2O2O depending on the region of
the state.
National Reporting Service
( 30s) 313-1295
24
Page 9
1 Since November of 2OL2 when the
2 vast the rrFight For 15 Movementff
3 started, werve seen about .l^out L7
4 miJ-J-ion workers throughout the country earn
5 wage increases through state increases,
6 local increases, companies that are moving
1 Eheir wag'es up, and executive orders at the
B city, state, and other government leveIs.
9 We're also seeing about 10 million
10 workers seeing their rf,ages go up to about
11 15 an hour through those tlpes of recent
72 policy changes. And this is not surprising
13 to us given the tlpe of support that we see
L4 around the country for this tlpe of
15 increase.
16 Recent poJ-ling data tells us that
t1 approximately 2 out of 3 individuals
18 support $15 as the minimum wage, and
L9 support amongst low-wage workers, meaning
20 workers earning at or below 15, is even
27 higher. We also know that low-wage workers
22 are more like1y to vote for a candidate if
23 that candidate supports both 15 and a
24 union.
25 We're seeing also, of course, that
National Reporting Service(305) 373-1295
25
1
2
3
4
5
6
1
I
9
10
11
72
13
L4
15
L6
71
18
79
20
27
)aLL
23
24
25
Page 10
Iow-wage workers Irm sorry, that
low-wage workers support this tlpe of
proposal at about 75 percent compared to
that two-thirds for workers in general.
And we know that increasing the minimum
wagie here in Miami Beach would
significantly impact the J-ives of low-wage
workers here.
The city of Miami Beach has one of
the highest costs of living in the state of
Florida and also in the country. ?Ie know
that one single worker working fuIl-time in
the city of Miami Beach would have to earn
about 915 an hour just to make ends meet,
and a working with one chiJ.d working
fu1J--time would need about $25 an hour to
make ends meet.
TIe also know that the most rigorous
modern economic research tells us that one
can increase the minimum wage without a
negligibJ.e or without an adverse effect
on employment Ievels.
The most sophisticated study that
we often cite to is one that was done in
2010 or published in 2010, and looked at
National Reporting Service(30s) 373-1295
26
Page 11
L 250 pairs of neighboring counties across
2 Lhe United States, and it looks like those
3 counties to see if a higher wage J.eve1 in
4 one of those counties would have a negrative
5 effect on empJ-oyment in that county, and
6 this is considered one of the most
1 effective ways to isolate the impact of
8 raising the minimum wage.
9 In that study looking at those 250
10 pairs of counties found no significant
11 difference in employment level or in the
L2 staters competitiveness, meaning the state
13 with the higher minimum wage.
t4 Another meta study Looked at 64
15 other studies of the minimum wage, and it
16 similarly concluded that there was close to
I1 no impact on employment for having the
18 higher minimum rragie.
79 At the city levelr w€'ve also
20 started to see studies come out showing
2t that the s€rme findings appJ.y. In San
22 Francisco, for example, there was a study
23 Ln 20L4, it J-ooked at basically the impact
24 of raising the cost of employment for
25 employers in San Francisco by about 80
National Reporting Service(30s) 313-1295
27
Page
percent above the federal minimum wage, and
it concluded that there was no adverse
impact on employment, and it actualJ.y found
that looking at just food service jobs in
San Francisco, there was a 17 percent
increase in jobs in that sector compared to
the surrounding counties.
The same thing was found in Santa Fe
in a 2006 study that looked at the impact
of that minimum wag'e by comparing it to
Albuquerque, and it found that employment
levels in Santa Ee had not suffered
compared to Albuquerque's, and that it was
actually doing better, employment was
actually doing better in Santa Fe.
The same thing was found in a study
looking at Tlashington D.C., Santa Fe, and
San Francisco, comparing those cities to
their surrounding suburbs and other cities.
So the list goes oD, and the written
testimony that Irve submitted today will go
into those studies in more detail, and
it will list other studies that may be
helpful to you.
But we're also seeing, through the
72
1
2
3
4
5
6
1
I
9
10
11
L2
13
1,4
15
L6
71
1B
79
20
2L
22
)?
24
25
National Reporting Service(30s) 313-1295
28
L
2
3
4
5
6
1
I
9
10
11
72
13
L4
15
16
71
18
79
20
2L
22
23
24
25
Page 13
experience of cities like Seatt1e, SeaTec,
and San Erancisco, that you can increase
wage levels up to $15 an hour and stiIl see
the same kind of findings. Werre seeing
very positive benefits in San Francisco and
Seattle, for example. The restaurant
industry in both of those cities are
booming.
To the extent that we have data, for
exampler oD the nr:mber of licenses issued
to food service and beverage businesses, in
SeattJ-e we sarf, a 15 percent increase since
the $15 minimum rrag'e started to go into
effect.
COMMISSIONER ARRIOLA: Can you
repeat that.
MS. HUIZAR: In Seattle we looked at
the number of licenses that were issued to
food and beverage businesses from the start
of the implementation of that $15 wage, so
that was March 2014 to the present, and
we saw a 6 pereent increase in the number
of those licenses issued.
A number of newspapers have reported
the s€rme thing, the Seattle Times, the
National Reporting Service
(305) 313-1295
29
Page 74
1 Puget Sound Business Journal, the
2 Washington Post, all of these newspapers
3 and journalists have gone to those cities
4 and have confirmed that in fact the
5 restaurant industry is bombing and all of
6 the predictions that we heard from the
1 business industry about, you know, how this
B was going to lead to a decline in business
9 and businesses were going to have to close
10 simply hasnrt come to pass.
11 COMMISSIONER ARRIOLA: Would you
12 happen to know -- pardon the interuption.
13 Would you happen to know what the
14 unemployment rate has been since the
15 impJ-ementation of the new minimum wage?
76 MS. HUIZAR: My written testimony
71 has details on that for Seattle. We know
18 that after Seattle' s minimum vrage
t9 legislation went into effect, the
20 unemployment levels in Seattle were lowered
27 than in the state, and I don't want to
22 maybe give the wrong nr:mbers, but there was
23 a slight
2 4 coMMIssIoNER ARRIoI,A: A lower .
25 MS. HUIZAR: -- yeah, decrease in
National Reporting Service
(305) 313-1295
30
1
2
3
4
5
6
1
8
9
10
11
1,2
13
L4
15
L6
71
1B
79
20
27
22
23
24
25
Page 15
Seattle. The Golden Gate Restaurant
Association in San Francisco, which is one
of the leading restaurant groups there,
recently issued a statement on their
website stating that the industry is
strong, tipping in restaurants continues to
be strong, and that the industry is doing
just fine with the kind of legisJ-ation that
has been successful in San Francisco.
And we also know, apart from these
studies, that the impact for low-wage
workers themselves and their families could
be truly significant. There's studies, for
example, one from the National Institutes
of [Iealth, which found that an increase of
$41000 per year in income can lead to
approximately one extra year of education
by age 2L.
}Ie also know from a study of
California that a minimum wag'e of $13 there
by 2OL7 can have significant benefits for
chronic diseases and disabilities, could
lead to less hunger, smoking, and obesity
in that state.
Now, of course r w€ t re happy we I re
National Reporting Service(30s) 313-1295
31
1
2
3
4
5
6
1
8
9
10
11
t2
13
L4
15
t6
71
18
79
20
27
22
23
24
25
Page 76
happy to provide more research, more policy
analysis here in Miami Beach to support the
efforts of the mayor, and I'd J-ike to take
this opportunity, again, to thank you for
inviting me to testify, and Irm happy to
answer any other qluestions.
COMMISSIONER I,IALAI(OFF: I have one
question.
MS. HUfZAR: Sure.
COMMISSIONER I'IALAI(OFF : Could you
please discuss in San Erancisco or Seattle
the effect on the hospitality as far as the
hotel industry in those cities.
MS. HUIZAR: Correct, I don't
know at this point I don't have data on
the hospital.ity industry specifically.
I think some of our data wiJ.J. capture
restaurant servers who work within the
hospitality industry and outside of that,
and we've seenr BS I mentioned, that the
restaurant industry itseJ.f is doing very
well, and the articles al.l the articles
yrerve seen in San Erancisco have reported
that all of the dire predictions simply
haven't come to pass.
National Reporting Service
(305) 313-1295
32
Page
And I think one one good example
of or good evidence of the positive
impact in San Francisco is that the city
first enacted its first increase in 2003,
gradua11y increased, and in 2OL4 the $15
proposal was presented to voters, and that
was unanimously not you unanimously, I'rtr
sorry, but with a great leve1 of support
passed in San Francisco.
So the city has been experimenting
with higher wages for over a decade, and
legislators and residents have approved
even further increases.
COMMISSIONER I"IALAKOFF: Thank you.
COMMISSIONER ALE}TA}I: I have a
question. In any of that research, have
you seeing anything'around the impact on
small businesses, perhaps an impact in the
nr:mber of operating licenses or requests
for new operating licenses by small
businesses so we can understand if there's
dny, you know, more severe impact depending
upon the size?
MS. HUIZAR: Correct, that's not
something we've seen. I think the Seattle
11
1
2
3
4
5
6
1
B
9
10
11
72
13
74
15
76
71
18
t9
ZU
2L
))
23
24
25
National Reporting Service(30s) 313-1295
33
Page
numbers that I cited for licenses for food
service and beverage businesses is a good
example. Those in Seatt1e, the numbers
were over 3r000r so we know a lot of those
businesses are smaIl businesses. TIe don't
have over 31000 J-arge chains operating in
Seattler so that we think is good evidence
that it can benefit small business.
Recently the Washington Post leaked
a survey that was conducted by a council of
state chambers of commerce, and that survey
reported, based on their own members, that
80 percent of businesses supported
increasing the minimum wage, and only 8
percent opposed it.
And so what wefre seeing is that
even amongst business owners, meml>ers of
these chambers of commerce and the smal].
businesses that we talk to very often
support higher wages for their workers.
And in places like New York where more
significant and detailed studies have been
done, they have found that in some ways
there is an effective leveling the pJ.aying
field when you pass a higher minimum wage,
1B
1
2
3
4
trJ
6
1
B
9
10
11
\2
13
74
15
I6
l1
1B
T9
20
27
22
23
24
25
National Reporting Service(30s) 313-1295
34
Page 19
1 because a lot of small businesses are
2 already trying to pay higher wages, and a
3 lot of the larger retailers, chain
4 businesses are in some ways pushing wages
5 down.
6 So we?ve been trying to find more
1 data on that. It's sometimes hard at the
B loca1 level, but we have seen that there is
9 kind of levelling of the playing field
10 effect with some of this legislation.
11 Yes.
12 COMMISSfONER ALEI'IAN: Vlhere was
13 the where was the chamber of commerce
L4 study done?
15 MS. HUIZAR: So it was leaked to the
16 ?Iashington Post.
tl COMMfSSIONER I,IALAKOFF: Okay.
18 MS. HUIZAR: It was done by a very
19 prominent poIlster, Irm not sure who it was
20 leaked by, but it was created quite the
27 stir.
22 COMMISSIONER T,IAI"AKOFF: ThANK YOlr.
23 MS. HUIZAR: Uh-huh.
24 COMMISSIONER ARRIOLA: Vfhat other
25 data do you have that you want to share
National Reporting Service
(30s) 313-1295
35
Page
with us that you think is pertinent? And
I've done a J.ot of research in the past
couple of weeks on this, and so I
definitely have a J-ot of guestions, but
other data pro or con to this that you want
to share with us?
MS. HUfZAR: Sure, I think my written
testimony will have a lot more detail.
Seeing as hospitality might be a particular
concern here in Miami or Miami Beach,
we recently released a report in D.C.
Iooking at the effect of 15 in D.C.,
particularly on tipped workers in that
eity, and we looked at some of the National
Restaurant Association's own data, and
they, you know, project employment growth
Ievels and sales growth leve1s across the
country for each state, and what we found
there is that even in some of their
higher-wage statesr so California,
Washington State, for exampJ.e, both have
minimum walJe rates around $10 right noyir,
those states have high employment growth
projections.
They also have sales projections
20
1
2
3
4
5
6
1
B
9
10
11
72
13
L4
15
\6
71
18
79
20
27
aaLL
24
25
National Reporting Service(305) 313-1295
36
Page
that are higher than the average for the
country. And so we're seeing that that
industry and by the industry's own data,
itrs quite possible to be successful and to
have strong growth even with higher wages.
COMMISSIONER ARRIOLA: Yeah, I mean,
Irve got al.l kinds of data on different
studies, and maybe I'1I just wait to share
those, and I don't know what the economist
is going to share, but some interesting
findings that were surprising to me.
MS. HUIZAR: Uh-huh, great. Any
other questions? No, okay. WeIl, thank
you so much for allowing me to testify.
MR. ROSEN!{ALD: Commissioners, norr
you'Il hear from Cynthia Hernandez, who was
until recently the lead researcher at FfUrs
RISEP Research wing, and she can explain
her role and her findings to you now.
MS. HUIZAR: Hi. Good afternoon.
I have a quick presentation I want to share
with folks, but let me just get it up here.
COMMISSfONER ALEI{AI{: And could you
spell your nErme for the record.
MS. HERNANDEZ: Sure. It' s
2L
1
2
3
4
5
6
1
B
9
10
11
72
13
L4
15
76
L1
18
79
20
2L
22
23
24
25
National Reporting Service(3os) 313-1295
37
1
2
3
4
5
6
1
8
9
10
11
t2
13
74
15
T6
71
18
79
20
27
22
ZJ
24
25
Page 22
C-Y-N-T-H-I-A, Hernandez,
H-E-R-N-A-N-D-E-2. Hopefully, it should be
coming up. There you go. So my name is
Cynthia Hernandez. I was a researcher at
FIU at the Research Institute on Social and
Economic Po1icy for ten years until
recently moving to the South FJ.orida
AFL-CIO where I'm the head research there
as welI.
So today I 'm here to talk about why
this initiative is important, not just for
Miami Beach residents, but also for
Miami-Dade County residents as weII. So in
2006 or 2OL6 Miami was ranked No. 8 in
income inequality nationwide. A Brookings
report basically found that based on the
2OL4 census data, and it also showed that
Florida f'm sorry, that the wealthiest 5
percent of people in Miami-Dade !trere making
basically LO.2 times more than the poorest
20 percent on average.
Sory, I think my slides are a
litt1e out of order here.
COMMISSIONER ARRIOLA: Okay.
MS . HERNATiIDEZ : Yeah, okay. So let
National Reporting Service(30s) 373-1295
38
Page
me go back to the beginning. So as Laura
stated, the minimum wage here in Florida
was passed in 2004. It actually wasn't
enacted until 2005. The majority --
overwhelming percentage of Florida
residence voted and approved for the wage
amendment to be passed, and it stated the
hourly wag'e at that time was only 16.15 per
hour.
It also required a direct obligation
of $3.13 for tipped employees. Since 2005
or 11 years laterr w€rve actually only seen
the raise the raise of the minimum walJe
raised by $1.90. So that's J-ess than $2 in
the 11 years that it has been enacted.
We can certainly, f think, all attest that
our cost of living has certainJ.y increased
by more than i2.
So this graph basically shows, and
Ifm not sure if it's very clear on your
screen, but it basically shows the growing
inequality that not only exists here in
Miami-Dade County, but really throughout
Florida as a whole.
So if you see the darker green at
23
1
2
3
4
5
6
1
8
9
10
11
12
13
L4
15
I6
L1
1B
79
20
2t
22
23
24
25
National Reporting Service
( 3os) 313-1295
39
1
2
3
4
5
6
1
8
9
10
11
t2
13
14
15
t6
L1
1B
79
20
27
22
23
24
Z3
Page 24
the top, itts basically the U.S. mean
wages, followed by the Florida mean wages,
and the third line there is the U.S. median
wag'es compared to the FJ.orida mean wages.
Basically, it shows that Florida's vrages
continue to be below average nationwide.
And what inequal.ity, I would say,
that hurts minorities more than anyone
else. As you can see here on this graph,
just look at the left I'm sorry, the top
two right columns here where it says
"white/black disparity. " If you look aJ.J.
the way at the bottom, Ld 2OL4 there's a
growing inequal.ity between white and black
at $9,000 over $9,000, where Hispanics
are over 61000 as well. So the people that
are hurt most are primarily minorities,
African-American and Latinos.
COMMISSIONER ARRIOLA: Can you leave
that there.
MS. HERNA!{DEZ: Sure, and this is
based on census data.
COMMISSIONER ARRIOLA: Thanks.
MS . HERNANDEZ : AlI right. So this
is where I started. So a recent study by
National Reporting Service
( 30s) 313-1295
40
Page
GO Banking Rates conducted a cost of living
comparison of the 75 most populous cities
in the U.S., surveying dollar amounts of
J.iving expenses which included rent,
groceries, utilities, transportation, and
health care.
The study also compared the total. of
income needed to be the actual median
household income in each city to see if the
differences in cost of living are matched
by differences in pay. The results are
clear, you know, showing that Miami's
median income of just under 311000 is about
$461000 short of that number representing
the biggest gap between the actual income
or the ideal income of any major city in
this study.
So for minimum wage workers,
that's 161000 - you know, minimum wage
workers are only earning L6,744. That's
before taxes are even taken out, which
clearly falls short over $60,000 of that
ideal minimum walJe.
COMMISSIONER AIEIIAI{: tlay I ask you
a question about the 77,OOO. Is that a
ac-
1
z
3
4
5
6
1
8
9
10
11
72
13
74
15
L6
71
1B
79
20
27
22
23
24
25
National Reporting Servj-ce(30s) 313-1295
41
1
2
3
4
5
6
1
B
9
10
11
72
13
T4
15
76
71
1B
t9
20
2L
22
23
24
25
Page 26
county averag'e comfortabJ-e livingr or is
that the peek, or is that Miami Beach?
Wtrat is that number?
MS. HERNANDEZ : Thatr s the Miami
metropolitan statistical area, So that's
taking into consideration everything from,
you know, groceries, transportation,
healthcare.
COMMISSIONER AIEI"IAII: Countynride.
MS . HERNANDEZ: County-wide, which
is one of the highest as weII.
COMMISSIONER ALEI,IAI{: So conceivably
in Miami Beach it could be more.
MS. HERNANDEZ: It cou].d be even
higher, correct. So this table here shows
the annual cost of living estimates by
household comparison. So for an adult
without children, the annua1 cost is
23,820. For an adult with a child it's
50,000. So this is just the median wages.
So in Miami Beach we can see t-haL 22
percent is this is higher than the
Florida wage frm sorry, the Florida
average. It's actually 24 percent higher
than the national average, and the cost
National Reporting Service(30s) 313-1295
42
1
2
3
4
5
6
1
B
9
10
11
L2
13
74
15
t6
L1
18
79
20
2L
22
23
24
25
Page 21
alone in Miami Beach is 65 percent higher
than the national average. That's a huge
significant difference.
So itrs fair to say that not all of
Miami employees curently live in Miami
Beach, and that's why I think this
initiative is going to have ripple effects
all over our county. So when we look at
the cost of living for Miami-Dade County,
the monthly rent alone is for a 900 square
foot apartment is just a little J-ess than
$1,500 . For a 480 sqluare foot studio, it' s
just a little over $1,000.
Again, you know, I put this number
of L6t144, because this is the annual
average salary that a current minimum-wage
worker earns before taxes. So if we take
that into consideration, that's means that
75 percent of a minimum-wage worker has to
pay 75 percent of that in housing costs
alone if they J.ive in Miami-Dade. Thatrs
why we see many minimum-wag'e workers that
are having to work two or three jobs at
most.
So a Brookings report in 2016 found
National Reporting Service(30s) 373-1295
43
1
2
3
4
trJ
6
1
B
9
10
11
t2
13
L4
15
76
LI
1B
79
20
ZL
22
23
24
25
Page 28
that Miami's metropolitan statistical- area
ranked No. I in income ineqtrality
nationwide. The wealthiest 5 percent of
people are making LO.2 times more than the
poorest, 20 percent on average. The gap is
even wider in the South Florida area where
the richest sector earns 15 times more than
the most impoverished.
And I put this -- you know, I'm
putting these statistics up, because it's
important to note that the majority of our
growing businesses here in South Florida
and growing jobs are minimum wage jobs.
This creates a larger income inequality
across, you know, not just the state but
certainly within our Miami-Dade County and
Miami Beach area.
So what does this mean globally?
Globa1ly, it means that Miamirs income
inequality is higher than that of Buenos
Aires, Argentina, and Rio De Janeiro in
Brazil, and it mirrors Mexico City. So
werve not just become a gateway to Latin
Americar w€ have become Latin America.
According to a Bloomberg analysis,
National Reporting Service(305) 313-1295
44
Page 29
1 Miami is the toughest city for low-wage
2 workers to increase upward social. mobiJ.ity.
3 So what is "social mobility"? It's
4 basically, it allows workers to move up the
5 ladder.
6 Historically, rates for women in
1 Elorida have been higher than those of men
8 than the overall poverty rate for the
9 entire population, and I'11 say that
10 between 1980 and 2014 median annual wage
11 inequality grew from 6,552 to just under
12 101000, which is a gap increase of 42
13 percent between white and African-American
L4 workers. During the same time, the
15 white/Hispanic median annual rrage disparity
L6 grew by 43 percentr so almost double.
71 Minorities experience higher levels
18 of poverty when compared to the white
79 population. African-Americans experience
20 the highest poverty rates, which have been
27 above 20 percent historically. The
22 Hispanic Latino population experienced
23 lower levels of poverty, nevertheless,
24 still in the double digits, and this is all
25 data coming from the State of tlorking
National Reporting Service(30s) 313-1295
45
Page
Florida Report, which is produced annually
by The Research Institute.
So on average the four largest
paying industries lowest paying
industries in Florida were retai1 trade
agricultural, forestry, fishing, and
hunting, leisure and hospitality and food
services. These industries offer many
opportunities to enter or reenter the labor
market and have possibilities for career
advancement at the management level.
In 2OL4 there were 3.2 million or 22
percent of the lator force working in these
industries in Elorida. It's important to
note that these industries comprise a
significant percentage of Florida's growing
economy, I should add, and yet historically
these are the lowest paying industries in
Florida and pay below $30,000 a year.
The largest growing sector of jobs
in Florida are within the hospitality and
tourism, which are compromised primarily
here in Miami Beach. Yet the Florida
g:eneral sales tax is 18 percent higher than
the national average.
30
1
2
3
4
5
6
1
8
9
10
11
L2
13
74
15
76
\1
18
L9
20
21
22
23
24
25
National Reporting Service(30s) 313-1295
46
Page 31
1 Florida State income tax is,
2 we know, one hundred percent lower than the
3 national averag'e, and the FJ.orida RetaiJ-
4 Eederation year after year boost on their
5 earnings year after year, yet they continue
6 to fight us fight wagie theft
'7 anti-wage theft ordinances or fight against
8 increasing the minimum wagJe.
9 So in closing, you know, minimum
10 wage, what we've seen, and, you know, to
11 reiterate some of Laura's points, job
12 losses for raising minimum wage are
13 negligible. Minimum wage has al-ready been
L4 raised 23 times with no detriment to the
15 economy.
L6 A 2OL4 survey found that more than 3
71 out of 5 smalI business owners support
18 increasing the minimum wage to 10.10 an
L9 hour. The real value of the minimum wage
20 has fallen dramatically, and since the
21 minimum sralJe was last raised 2OO9
22 nationally, the price of apples went up 16
23 percent, bacon 67 percent, cheese 2L
24 percent, coffee 27 percent, beef 39
25 percent, and milk 21 percent.
National Reporting Service(30s) 313-1295
47
Page
Low minimum wage J.aws are government
subsidies to low-wage businesses, period.
Worker productivity has gotten much faster
than wages using the 1968 minimum wage as a
benchmark. If minimum wage grew at the
same rate as worker productivity, it would
have reached 2L.72 per hour. Raising the
minimum wage to 910 would impact over 15
million workers, 4,7001000 working mother's
would gret a raise.
There' s widespread bipartisan
support for raising the minimum wage. In a
20LS poII, 75 percent Americans including
53 percent of republicans support raising
the minimum waEJe to L2 .50 by 2020. And
last but not least it would certainly
increase consumer purchasing pour for those
low-wage workers who are not able to save,
and, therefore, their money gets circulated
back into the economy and also reduces
employee turn over. So in conclusion
sure.
COMMISSIONER AlElqlAU: Before you
leave that site, the first bulIet, how are
you measuring worker productivity there.
32
1
2
3
4
5
6
1
I
9
10
11
72
13
t4
15
76
L1
18
L9
20
2L
22
23
24
25
National Reporting Service(30s) 373-1295
48
Page
MS. HERNANDEZ: So it's basically
looking at what corporations have made, the
earnings, GDP, and looking at comparingr
it to wages.
So in conclusion, a minimum !ilage
earner, again, earns only L6,744 a year
working 40 hours a week, 52 weeks of the
year, not including taxes. So that's
L6,744. We try to think about how we would
ever make ends meet living in Miami on that
salary, and it's impossible.
So if raised to 13.13 per hour, then
the annual salary would increase to 27,684,
and that basica1ly -- my J.ast point here is
that even raising it to 13.31 by 2O2O is
not enough. Our workers deserve better,
our residents deserve better, and our
economy will grow when our earners earn
what they make. Thank you.
COMMISSIONER ARRIOLA: How do do
you know how we index the step-ups that are
contemplated in this resolution from the 10
to the 13?
MS. HERNANDEZ: Irm sorry?
COMMISSIONER ARRIOLA: The step-ups,
33
1
2
3
4
5
6
1
I
9
10
11
L2
13
t4
15
T6
L1
1B
79
20
2t
22
23
.AL1
25
National Reporting Service
( 30s) 373-1295
49
1
2
3
4
5
6
1
B
9
10
11
72
13
L4
15
76
71
1B
L9
20
27
aaLL
23
24
25
Page 34
is that indexed for particular inflation?
I just want to make sure we get the record
straight of how these numbers were
estab]-ished.
MR. ROSENWALD:Hi. Rob Rosenwald,
city attorney's office. Vlhen the mayor
proposed this ordinance, the way he arrived
at the nurnbers were to match the number at
the end of the ramp-up period in 2O2O to
our curent J.iving wage ordinance price
that we pay to our contractors and
employees, and so we got to 13.31 by 2020,
and then simply incremented by a dollar an
hour starting in 2018 in order to reach the
13.31 by 2020.
COMMISSIONER ARRIOLA: AJ-J- right.
So werre more or less trying to level the
playing fieJ.d of what the city is paying as
a living wage and what we're requiring our
vendors who do business with the city to
even the playing field with any other
employer in town.
MR. ROSENWALD: That's correct, and
we put a lot of thought and a lot of study
into what the J-iving wage should be at the
National Reporting Service(30s) 313-1295
50
Page
time when we adopted it and when we index
it, and so itrs not a number that's
arbitrarily chosen, and yourre right,
Ieveling the pJ.aying field after werve seen
how weJ-J- our J-iving wage ordinance worked
was reaJ-J.y the goal.
COMMISSIONER ARRIOLA: Irm not sure
if yourre prepared to expand on the comment
that was in your s1ide, that low-wage
minimum wages is a subsidy to business.
Can you expand on that?
MS. HERNANDEZ: Sure. So when
we have business owners that are not paying
a fair J.iving wage, whether thatrs some of
them are paying below the minimum wage,
which we see a lot alJ- over this county,
because we don' t have a state Department of
the Labor to enforce our ].abor laws. So
when we see these companies or employers
paying less than a living wage, I should
Say, basical.ly, we see that most of those
folks -- you know, for example, minimum
wage earning just slightly above $17,000 an
hour, they are more like1y to need
g'overnment assistance, and, therefore,
35
1
2
3
4
5
6
1
B
9
10
11
72
13
74
15
L6
L1
18
19
20
2L
22
23
24
25
National Reporting Service(3os) 313-1295
51
Page
corporations or business entities,
employers who are not paying a minimum wage
are perpetuating this dependency on
govertrment assistance .
COMMISSIONER ARRIOLA: Yeah, that' s
one of the things that dawned on me when
I was reading the research, which is, you
know, to some extent businesses that pay
minimum wage or low wages, they in essence
get a free ride or are getting the benefit
of a government subsidy that they don't
have to al.sorb in their own cost structure.
Because whether itrs food stamp or
other public subsidies to heJ.p provide for
folks who aren't living or making a
J-iving !ilage, thatr s a cost that isn' t borne
directly by that small business, the rest
of society absorbs it, but that business
isn't necessarily paying that.
MS . HERNANDEZ : Corect, and even
through our own research, we have found
that business owners encouraging their
employees to apply for government
subsidies.
COMMISSIONER ARRfOLA: Do you have
35
1
2
3
4
5
6
1
8
9
10
11
L2
13
L4
15
76
l1
1B
t9
20
27
22
23
24
25
National Reporting Service(30s) 313-1295
52
1
2
3
4
5
6
1
8
9
10
11
72
13
L4
15
76
71
18
t9
20
27
22
Z5
24
otr.LJ
Page 31
statistics on what the effect of raising
the minimum erag'e wilJ- have on poverty?
MS. HERNATiIDEZ: Loca]-].y or across
the country?
COMMISSfONER ARRIOLA: Nationally.
MS. HERNANDEZ: Nationally there are
plenty of statistics, and Irm sure Laura
probably --
COMMISSIONER ARRIOLA: I mean,
I have it if you don't, but I'd J-ike to
have someone else
MS. HERNANDEZ: Yes, so there are
statistics that show that nationally.
COMMISSIONER ARRIOLA: From what I
read in multiple studies, a ten percent
increase in the minimum rtrage reduces
poverty by one percent. One percent is
2 .2 mj.].lion Americans.
MS. HERNAIIDEZ: Significant.
COMMISSIONER I'IALAI(OFF: I have a
question. I have one question. You talked
about the disparity effecting primarily
African-American and Hispanic workers. Do
you also have a breakout of women workers?
MS. HERNANDEZ: I do, yes.
National Reporting Service(3os) 373-1295
53
Page 38
1 Unfortunately, I did not incJ.ude it in this
2 presentation, but I td be more than happy to
3 share with you how it significantly effects
4 women workers.
5 COMMISSIONER I'IALAI(OFF: I figured
6 ir did.
7 MS. HERNATiIDEZ: And single mothers,
B I should add, as weII.
9 COMMISSIONER I'IALAI(OFF: Yes. Do you
10 know the percent?
11 MS. HERNANDEZ: I actually don't
L2 have the percent. I have it here, I can
13 look it up and get back to you.
L4 COMMISSIONER TIALAI(OFF: Okay. Okay.
15 Later, yeah.
L6 COMMISSIONER ARRIOLA: ff you look
71 it up, you can come back.
18 MS. HERNANDEZ: Sure, I'm more than
79 happy to do that.
20 coMMIssIoNER ARRIoI,A: T{hat' s
2l interesting about that is there's a
22 disproportionate effect on African-American
23 and Hispanics and women on J-ow minimum
24 wag'es, but raising the minimum wage
25 actually has a disproportionate benefit
National Reporting Service(30s) 313-1295
54
Page
percentwise, because there's more white
workersr So more of the benefit percentwise
goes to white workers.
That's just an interesting
statistic. It will help a J.ot of people,
though.
MS . HERNATiIDEZ : Sure, and I think
it realIy depend on the industry, right?
So depending on what industry.
COMMISSIONER ARRIOLA: And the
location.
MS. HERNAIiIDEZ : That' s correct.
COMMISSIONER ALEIIAII: A question
about do you have any numbers I 'm
thinking about the 71,OOO and single
working parents. Do you have any numbers
on the cost of daycare, childcare for a
working parent that has to put their child
into some sort of daycare or other sort of
care facility during the day while they
work or at night whenever they're working'
and what those costs are compared to the
wages that theyrre earning?
MS. HERNAIiIDEZ: Thatr s actually a
really great question. I actually don't
39
1
2
3
4
5
6
1
B
9
10
11
LZ
13
74
15
76
t1
1B
79
20
27
22
23
24
25
National Reporting Service
(305) 313-1295
55
Page 40
t have the exact figures, but I do know that
2 Miami-Dade County recently released a
3 report showing how therers a g'rowing cost
4 Eo childcare, and how disproportionately,
5 you know, women and single-parent
6 households cannot afford to basically make
7 ends meet simply because of the childcare,
8 and I believe that there are some childcare
9 workers herer So maybe they can better
10 answer that specific question.
11 COMMISSIONER ARRIOLA: Do you have
L2 any data on the effect of the increase of
13 the minimum wage on businesses or other
74 organizations? In particular what I've
15 seen is in cases where minimum wage was
75 increased, not realIy much noticeable
l1 effect negative effect on businesses,
18 and part of that is because that extra
19 money that's being created gets spent on
20 those local businesses.
2t MS . HERNATiIDEZ : That' s correct.
22 COMMISSIONER ARRIOLA: Do you have
23 any data to help expand on that?
24 Ms. HERNANDEZ: I do have data, and
25 I'm happy to share it.
National Reporting Service
( 30s ) 373-1295
56
Page 4L
Okay. You1
2
3
4
5
6
1
8
9
10
11
72
13
L4
15
76
71
1B
19
20
2L
22
23
24
25
COMMISSIONER ARRIOI,A :
can come back.
MS. HERNANDEZ: You know, what I've
said is it reduces employee turnover rates
which reduces labor costs.
COMMfSSIONER ARRIOLA: You know, one
of the things about minimum wagie is, as you
said, it forces people to work two or three
jobsr So to the extent that they can get a
living wag:e and maybe spend more time with
families, which is a net positive, and
maybe not have to take the second and third
job, increases opportunities for folks that
are unemployed.
MS. HERNAIIDEZ: Abso1utely.
COMMISSIONER ARRIOLA: Any data on
that?
MS. HERNANDEZ: That I donrt
believe not off the top of my files, but
Irm sure we can look for that and share
it with Rob. Thank you.
COMMISSIONER ARRIOLA: Rob, do
we have anybody else?
MR. ROSENI{ALD: That's the end of
our expert testimony. I know there are
National Reporting Service
(30s) 313-1295
57
Page 42
1 several groups here who would J-ike to
2 speak, so Ird just turn it over to you to
3 conduct the testimony in the order you
4 prefer.
5 coMMIssroNER ARRror,A: okay. Great .
6 T think we'II keep it, f mean, unless you
7 have objections, the way we tlpical-ly do
B it, sort of someone who is in favor of
9 raising the minimum wage and folks who have
10 a different opinion, we'Il kind of go
11 one-by-one. You know, you can each kind of
72 step to you know, one side will say this
13 is for maybe not going forward with the
14 minimum wage increase and folks that want
15 to support the minimum wag'e increase, and
76 we'lI give each other three minutes and
71 if we have more time at the endr w€'11 use
18 ir.
L9 Frank, you're welcome to go first.
20 You rased your hand. Erank, are you in
2L favor?
22 MR. DELVECCIO: In favor.
23 COMMISSIONER ARRIOLA: Okay?
24 MR. DEL\IECCIO: Frank Delveccio, 301
25 Ocean Drive, a retired attorney.
National Reporting Service(30s) 313-1295
58
Page 43
1 COMMISSIONER ARRIOLA: Pardon me,
2 Erank. Could someone keep time. Let's do
3 this for three minute.
4 MR. DEL\IECCIo: I'm going to need
5 less.
6 coMMrssroNER ARRror.A: The reason
1 Ls, fo1ks, the president is visiting Miami
B Beach, which is wonderful. Traffic is
9 going to get busy around four, and f want
10 to try to gret us out of here before then,
11 so keep that in mind.
12 MR. DELVECCIO: Good public policy,
13 a good direction. You're authorized to do
t4 this under the state constitution and good
15 Iegal analysis. Let me just make a couple
76 of recommendations.
71 COMMISSIONER ARRIOLA: Keep talking.
18 Is somebody keeping the time?
19 MR. DEL\/ECCIO: No, I' 11 stop
20 talking. It's too distracting when you
2L keep
22 COMMISSIONER ARRIoI,A: You can have
23 as much time as you need, I just want to
24 make sure someone's keeping track. Go
25 ahead, Frank.
National Reporting Service(3os) 313-1295
59
Page
MR. DELVECCfO: Okay. I sugig'est,
too, what I think should be clarifications
and improvements to the text of the
ordinance you should have before you. The
real teeth of this ordinance is that an
entity, a business, corporation that is
doing business or an individual. that is
doing business in the City of Miami Beach
can be denied a business tax receipt by the
City and must provide an affidavit, perhaps
in the application, that he or she or the
entity wilJ. comply with the City's minimum
living wage ordinance. Thatrs the teeth of
it.
So I think as currently written, and
I passed out a littIe suggested langusg€,
but as curently written, I ' 11 read brief ly
from the text of 18 Section 18.921.
rrEvery employer shall pay no J.ess than the
following wages to each employee entitled
to receive the federal minimum wag'e for
each hour of work performed for that
employer while physical.ly present within
the geographic boundaries of the city. "
This could mean that a UPS driver or
44
1
2
3
4
trJ
6
1
B
9
10
11
1)
13
T4
15
76
71
18
19
20
27
22
ZJ
24
25
National Reporting Service
(305) 313-1295
60
Page 45
1 a driver of some vehicle in interstate
2 c,ommerce could be held the company could
3 be held accountab].e for the duration of the
4 time that employer is delivering or passing
5 through the city. So I don't think you
6 want that.
1 I think you want it to read that
B every employer who is subject to the
9 business tax receipt requirement of
10 Article 5 of Chapter 2 Miami Beach City
11 Code shall comply with aJ-J- these
L2 requirements.
13 And the second point is yourve got a
74 couple of sections that deal. with
15 enforceability, and this is the teeth of
76 your ordinance, Section L8.925 and Section
71 L02.371(i) . Currently, it's worded in the
18 passive voice that there should be
79 compliance with. I think you should
20 substitute that the application for a
27 business tax receipt should include an
22 obligation to comply. And that's basically
23 it. The applicant for a city business tax
24 receipt shall certify on the application
25 form that the applicant wiJ-J- comply with
National- Reporting Service
(30s) 313-1295
61
Page
the City' s minimum living wag'e ordinance.
I think that was the intention.
Yourve got a J.ot of legal loose ends if you
don't change that language, because you
purport to give a civiJ- right of action to
an agreed person or empJ-oyee recourse to
the court which would apply to a UPS driver
passing through and making a few
deliveries. So I think limited to the
City's compJ.iance with the City's
business tax receipt, that is the trigger
that brings the business within the
parameter of this very good ordinance.
Thank you.
COMMISSIONER ARRIOLA: Thank you,
Frank, and thanks for doing the analysis
for us. I don't know, were you going to
comment? I'11 ask that very question that
Frank asked towards the end of our city
attorney'S, who I know are considering this
very issue.
Next?
MS. KALLERGIS: Good evening. Tlendy
Kallergis, W-E-N-D-Y, K-A-L-L-E-R-G-I-S,
president and CEO of The Greater Miami
46
1
2
3
4
trJ
6
1
B
9
10
11
72
13
t4
15
76
71
18
79
20
27
22
,/<
.Az.)
25
National Reportj-ng Service(30s) 313-1295
62
1
2
3
4
5
6
1
I
9
10
11
L2
13
L4
15
I6
L1
1B
L9
20
2L
22
23
24
25
Page 41
Beaches Hote1 Association.
First of alJ-, I would like to open
by teJ-J.ing you that wefre not opposing an
increase, what wefre challenged with is the
speed of the timeJ-ine. So f wanted to read
to you our statement that we made at the
commission meeting.
The GMBIIA supports policies and
regulations that ensure is a fair and
equitable working environment for both
employees and employers. Ifage increases
proposed at the federal, stater or local
level must not be too high or fast for the
industry to absorb.
The GMBIIA views increases that are
too high or fast as hurting the hotel
industry and its ability to create jobs and
grow the economy. Increases that are too
high and fast negatively effect the jobs of
the people that they are purported to help.
Our governmental. affairs consultant,
AI Advisory Group, prepared a survey for
Miami Beach hotels since our last
commission meeting, and we wanted to
provide to you an overview of the results
National Reporting Service
(30s) 373-1295
63
Page
of the survey. We received responses from
43 hotels on Miami Beach comprising of
boutique hotels, chain hotels, luxury, and
limited service.
By an almost 3 to 1 margin, Miami
Beach hotels expect the proposed wage
increase to have a negative effect on the
hospitality industry. Approximately
two-thirds of our hotels will be disrupted
because the proposed minimum wag'e increases
are too large and too high to absorb.
A significant percentage feeJ- new
wage leve1s, $10.31 and $13.31 are going to
have serious consequences. Our hotels
reported that they wiJ-l be forced to reduce
employee head count, benefits, and hours.
As numerous challenges face our
Miami Beach hospitality industry and while
the market is still very, very strong', with
the Miami Beach Convention Center
renovation and iIlega1 short-term rental-s,
it is very important that we continue our
great work together in welcoming
opportunity, to also work very closely with
you and staff to define walJe increases in a
48
1
2
3
A.1
5
6
1
I
9
10
11
72
13
74
15
t6
71
18
79
20
21,
22
23
24
25
National Reporting Service(30s) 313-1295
64
Page 49
1 timeJ-ine that industry can absorb without
2 j-nadvertent consequences and serious
3 disruptions. Thank you very much.
4 COMMISSIONER }'IAI,AI(OFF: I wanLed to
5 speak to you specifically about the illega1
6 short-term rentals, and Commissioner A1eman
1 and f are both working on something whieh
B wiJ-J- help the hospitality industry with
9 that.
10 MS. KALLERGIS: We appreciate that,
11 and werre actually working very well with
12 staff right now, so we have f think
13 working together we're going: to make a big
74 difference.
15 COMMISSIONER T,IAI,AI(oFF: Yes . ThanK
76 you.
tl MS. KAJ,LERGIS: Thank you.
18 MS. WAISH: Good afternoon,
79 commissioners My name is Wendi gla1sh,
20 W-E-D-N-D-I, W-A-L-S-H, and I am proud to
27 be the principa1 officer for Unite Here,
22 Local 355. I[e are the hotel workers union
23 here in South Florida. Our union
24 represents 11400 hotel workers here on
25 Miami Beach, many of whom are here with us
National Reporting Service(305) 313-1295
65
Page
today, and hundreds of thousands of
hospitality workers across the United
States and Canada.
As we taJ.k about the data, I would
like to put a face on this issue for us
here this afternoon. Our members and the
city's hotel workers are mostly women,
mostly recent immigrants, and nearly all
people of color. They are housekeepers and
dish washers who do some of the toughest
behind-the-scenes work to make some of our
hotels here so some of the best in the
country.
In Miami the average cost to rent a
hotel room is $246. For the time period
,fanuary through March of this year, that
was the highest room rate in the entire
country, higher than San Francisco, Maui,
and New York City. Yet when you talk about
what the housekeepers make to clean these
hotel rooms, Miami is very far behind.
Hotel housekeepers in Miami on
average clean between 20 and 30 rooms a
d"y, and earn around $9 an hour,' while in
New York City, housekeepers clean nearly
50
1
2
3
4
5
6
1
B
9
10
11
I2
13
74
15
76
71
1B
T9
20
2T
22
23
24
25
National Reporting Service
(305) 313-1295
66
Page
half that, 15 rooms, and earn nearly $30 an
hour; and in San Francisco they're also
cleaning 15 rooms a day and earn closer to
$20 an hour.
A real living wag'e here in Miami
Beach is extremely necessary. The hotel
workers are the backbone of the tourism
industry. Many of our members who work
here have had to move off the beach to make
ends meet, while others struggle to
continue living here on the beach. They do
their best, as was said earlier, working
two, sometimes three jobs, but it just
isnft enough.
As the Miami Beach hotel industry
makes record profits, it's only right to
direct our attention to the people who make
that possible. You cannot continue to have
a successfuJ- hotel industry with poor,
frustrated, anxious hotel workers. The
workers cannot be expected to smile for a
guest when theyrre worried about feeding
their kids.
We applaud the commissioners for
proposing to expand the living wag'e to aJ.J.
51
1
2
3
4
5
6
1
B
9
10
11
I2
13
74
15
T6
71
18
79
20
27
22
23
24
25
National Reporting Service(30s) 313-1295
67
1
2
3
4
5
6
1
B
9
10
11
L2
13
L4
15
L6
71
18
79
20
2L
22
23
.ALA
25
Page 52
of the workers here on the Beach, and the
members of Unite Here wi]-]- stand and
support every step of the way. Thank you.
MR. TARTARINI : HeIIo . My na,me is
Eduardo Tartarini, T-A-R-T-A-R-I-N-I. Ifve
been living in Miami Beach for 25 years,
and I work in the hotel business for 20
years. I can see increasing of J.iving is
enormous. AIJ. of my friends have to leave
the beach.
I want to also know that the
building where I live, the rent is 450 a
month 25 years a9o, and now the rest costs
$1,800, and a J-ot of people, they have to
move, a lot of good workers, people J.ike me
that pay taxes, provide many things for the
hotel business.
Miami Beach is one of the highest
tourisms in the wor1d, and I met people
even from Dubai that ].ike to come to Miami
Beach, and I think that this living wage is
necessary, not only for me, but for people
who are my neighbors, so they can have a
good standard of living.
I have a niece who is a single
National Reporting Service(30s) 313-1295
68
Page
mother, and she can hardly pay the
baby-sitter, and she can hardly pay also
her rent, and they have to move somewhere
e1se, and they cannot be closer to me as
part of my famiJ-y. Thank you.
COMMISSIONER ARRIOLA: Michael.
MR. GOLDBERG: Thank you,
commissioners. Michael Go1dberg,
M-I-C-H-A-E-L, G-O-L-D-B-E-R-G, chairman of
the board of the Miami Beach Chamber of
Commerce.
,fust for the record, you know,
we are here to get more information, which
I think a J.ot of great information was
presented today, and we want to thank you
for that. We have not taken a formal
position on it for or against. I just want
to point out a few concerns that did come
up. We had a few meeting's, and f just
wanted to point out a couple of them.
Similar to the hotel association,
one of our concerns is the and the
outreach that we did was the time frame.
If this does pass by 2O2O, the wage would
have to be up to $13.31. Based on an $8.05
53
1
2
3
4
5
6
1
8
9
10
11
t2
13
74
15
76
l1
1B
t9
20
27
22
23
24
25
National Reporting Service(30s) 313-1295
69
Page
wag'e now, that's a 65 percent increase in
about a three-year time period. So that
was one of the concerns that cErme out from
some of the outreach that we did.
Also there may be some unintended
consequences, you know, if this does pass.
This is feedback that werve gotten back,
not the Chamber's position, you know, of
one small business owner to say, weII, I've
had someone working for me for ten years,
Irve gotten them up to a certain wage,
which be above the $13.31, but then if you
hire someone else, you pay them the same,
that employee may say, welI, Irve worked
here ten years, and now this person is
coming on board, and hers going to be
working at the same wag:e. So they felt
that may be a concern. Again, this is just
feedback that werve gotten that I wanted to
share.
And the last one, which, I think,
was expressed by 'Jerry Libbin/ our CEO, was
any possible litigation that we may have to
go into with the State and the cost of that
litigation. I just wanted to share that,
54
1
2
3
4
5
5
1
I
9
10
11
72
13
74
15
t6
L1
1B
L9
20
27
22
24
25
National Reporting Service(30s) 313-1295
70
Page
but we appreciate you having this special
meeting. There' s some g'reat information
that we will now take back, you know, to
our board and to our members, and
we appreciate you doing this special
meeting to give us more information on
this. Thank you.
COMMISSIONER ARRIOLA: Thanks,
Michael, for coming in. Fo1ks, Iet's have
some decorum. Okay? I have questions for
you, you know, particularly small business,
I think the average small business oerner
makes $30,000 a year. It's not what people
t1pieal.J.y think. Mom and pops work as hard
as anybody or harder than many people just
to make ends meet themselves.
So I have a concern on anything that
impacts our small businesses, which is the
backbone of our economy, whether it's
rising health care cost, rents, government
red tape, or yrages.
Any comments or thoughts that you
have on what this would mean to small
businesses, and how we can make sure that,
you know, we donrt put people out of
55
1
2
3
4
5
6
1
B
9
10
11
L2
13
74
15
L6
71
18
79
20
27
22
23
24
)C,
National Reporting Service
(305) 313-129s
71
1
2
3
4
5
6
1
I
9
10
11
L2
13
L4
15
L6
t1
1B
79
20
2T
22
ZJ
24
25
Page 56
business, because if we put peopJ-e out of
business, you lose jobs.
MR. GOLDBERG: Sure . WeJ.l , it' s
funny you say that, because one of the
things that came up and was discussed was,
of course, this threshold to be $500,000 in
gross sa1es. Over 5001000 you'd have to be
implemented, Lf it was less than 500,000,
they wouldn't have to implement it, So the
question came up, you know, weII, would
that impact them.
TleJ.J., it actually would impact them,
too, because if yourve got employees and
you're a smal-l business owner with gross
sales of less than 5001000, and you're not
paying that wage, whether or not it was the
10.31 which would be implemented, you know,
a year from June or at the end of the year,
they would have a problem retaining their
employees, and that actually came up in
some of their discussions, that it real.ly
is going to effect aII sma1l business.
Again, I don't think therers an
issue with raising the wages. I mean,
again, therers some good facts that were
National Reporting Service
( 305) 313-1295
72
Page
presented here, and we definitely want to
bring that back and I think educating the
small business owners and all the business
owners in the City of Miami Beach as to,
you know, what the statistics are. It's
important.
We real.ly have been trying to
gatherer data and just learn as much as
we can, and we didn' t think we had enough
data to take a formal position yet, but
we appreciate you taking the time to
educate, you know, the pubJ-ic on the issue
for the next commission meeting.
COMMISSIONER ARRIOLA: You know,
there's so much goes into Itrn a business
owner myse1f . There's so much that g:oes
into a business and, you know, costs and
being able to make a profit is essential
for a healthy business, and wages are a
huge component for many businesses, but,
you know, I'm interested in maybe the
chamber can help us identify ways to help
particularly the small businesses but also
our workers, because even if minimum waqJe
were to gro up, itr s not a silver bullet
51
1
2
3
4
5
6
1
I
9
10
11
72
13
L4
15
L6
71
1B
L9
20
27
))
23
24
25
National Reporting Service(30s) 313-1295
73
1
2
3
4
5
6
1
B
9
10
11
72
13
t4
15
L6
71
18
79
20
2L
22
23
24
z5
Page 58
people are still going to struggle to make
ends meet.
This will he1p, but transportation
costs, parking on the beach, rising
healthcare costs, all of these things. You
know, f want to down the road, you know,
I know al.l of us commissioners are working
on things like transportation, affordable
housing, and all of that, but this is
potentially, you know, one step in the
direction of making Miami Beach a more
affordable pJ.ace to J.ive and to do
business, and f would love to hear ideas
from the chamber on other things that
we can do to help small businesses and our
workers have a better quality of life and
be a more successful business.
MR. GOLDBERG: Absolute1y, and we'Il
continue, as you know, w€ work very
closeJ-y, you know, with you and the
administration all the issue effecting, you
know, anything that impacts, you know, not
just the businesses of Miami Beach but
residents and quality of life. So you know
we're engaged with that, and we appreciate
National Reporting Service(30s) 313-1295
74
1
2
3
4
5
6
1
8
9
10
11
L2
13
t4
15
T6
L1
1B
79
20
2L
22
24
25
Page 59
your partnership with us and working with
uSr and we'Il continue to do that, and
we thank you.
COMMfSSIONER AIEtlAl[: If I can
comment to just, I think, illustrate or
highlight what Commissioner Arriola said is
that, you know, Lf we pass this minimum
wage ordinance, we know that this alone
doesn't solve the problem of the
affordability of workforce living in Miami
Beach, but itrs one piece to the puzzle,
and we know transportation is an issue
we you know, we know that affordabJ-e
housing is an issue, w€ know that education
is an issue.
So for everyone who is here today
and for everyone who may be watching this
novr or in the future, al-l of our emails are
on the website. If you have another piece
of that puzzle, it's really important to us
for the qual.ity of our city, it g'oes right
to the heart of the issues that effect our
quality of life J-ike traffic and congestion
and just being a healthy vibrant community.
So our doors are open for your
National Reporting Service
( 305) 313-1295
75
Page 60
1 feedback and ideas, and that extension
2 goes, of eourse, not just to the chamber
3 but to aII of you.
4 COMMISSIONER I'IALAI(OFF: And I have
5 one more thing to talk about with
6 specifically Michael Goldberg with the
-l e,hamber. You talked about the mom and pop
I businesses. If Irm corect, when it's a
9 family-owned business and there is a
10 husband and wife and say a son or daughter
11 that are working the business, I beJ-ieve
72 they are they can be exempted from this?
13 MR. ROSENWALD : That' s coffect,
L4 commi-ssioner. The the FLSA the federa].
15 standard guides who has to pay the minimum
76 wage, and that is businesses that make J.ess
71 than $500,000 a year and exempted from that
18 is anyone with who is staffed so1ely by
79 immediate family members. So if you are
20 truly a mom and pop, even if you're making
27 more than $500,000 a year, if only your
22 immediate family is working for you, then
23 you're not subject to minimum wage at al-l.
24 COMMISSIONER TIALAI(OFF: Thank you.
25 COMMISSIONER ARRIOLA: Rob, in
National Reportj-ng Service(30s) 313-1295
76
Page 67
1 reading to whom this applies, it's $500,000
2 or more, but I a]-so sa!{ a clause that said
3 or the businesses engaged in interstate
4 commerce; is that correct?
5 MR. ROSENI{ALD: I think it's "and
6 Lnterstate commerce. "
1 COMMISSIONER ARRIOLA: Oh, it's
I ttandrr? ItrS rrandw nOt rrOf , rr itr S wand. rr
9 MR. RoSENWALD: yes, exactly.
10 And --
11 COMMISSIONER ARRIOLA: Because
12 everyone's involved in interstate commerce
13 now-a-days.
!4 MR. ROSENWALD: yeah, it's very hard
15 not to be, but if you truly arenrt, if you
L6 don't send anything outside of the state,
t1 you wouldn't be you wouldn't be included
18 in it. You would be exempted also.
L9 COMMISSIONER ARRIOLA: So it's
20 500,000 'randrr ?
27 MR. ROSENWALD: Yes, that' s my
22 understanding, but you're right, almost
23 everybody is covered.
24 COMMISSIONER ARRIOLA: Everybody
25 under the supreme court.
National Reporting Servj-ce(30s) 3'73-1295
77
1
2
3
4
5
6
1
I
9
10
11
L2
13
L4
15
L6
I1
18
T9
20
27
ZZ
23
24
25
MR. PAPY:
Page 62
I also wanted to clarify,
the comment was made about the business
that would be impacted, the small business.
The coverage is identical- to the Fair Labor
Standards Act and the state law, the state
constitutional minimum wage ordinance, so
werre not adding anyone whots not al.ready
covered under the federa]- and the state
Iaw. So f just wanted to clarify that.
COMMISSIONER ARRIOLA: What are all
these young kids doing here? I want to
hear from them.
MS . BACH: Good afternoon
commissioners. Good to see you aII. My
name is Lili Bach, L-I-L-I, B-A-C-H. Irm
with 32BJ with SEIU. The minimum rf,age
increase is a dire necessity aJ-l over the
state, especially right here in the City of
Miami Beach. Those who work hard we fee]-
deserve fair pay. Our members live in our
communities and attend our public schools
and overall contribute to our ]-oca].
economies.
We hear from workers who want to
spend more time with their families but
National Reporting Service
(30s) 313-1295
78
Page
simply cannot, because theyrre running from
one low-paying job to other, therefore, not
having any time to spend with their
children or with their families, usually
having to work two to three jobs just
because the pay is not enough.
How does minimum erage jobs help our
communities? Quite frankly, they do not,
and how is the need to work two or three
low-wage jobs to survive helping our
economy and helping our people that live in
these communities, and again, it's not
right.
I'd actually J.ike to chal-Ienge the
charnber to try to spend living on a week on
minimum wag'e to see if maybe that couJ-d
help encourage them to be a little more
involved in being proactive in helping with
this so they can really feel what it's like
to have to make certain cuts, whether it's
to paying this bilJ- or another biII,
whether it means that they have to bring
their child with them to work because they
cannot afford childcare and so on.
So Miami Beach needs to lift up our
63
1
2
3
4
5
6
1
8
9
10
11
72
13
74
15
76
71
1B
I9
20
27
22
23
.Az,a
25
National Reporting Service(30s) 313-1295
79
Page
workers and support increasing the minimum
wage, and we definitely encourage the
commission for doing' so and support mayor
Levine as weII, So thank you.
COMMISSIONER ARRIOLA: Lili
COMMISSIONER ALEI'IAI{: LiIi, you know
we only make $6,000 a year, right?
MS. BACH: Excuse me?
COMMISSIONER ALEldAl{: I said, you
know we only make $51000 a year, right?
MS . BACH: That' s why we have to
make sure that
COMMISSIONER ARRIOLA: I want to
check with the city attorney. You know
that commissioners make less than minimum
wag'e, a lot less.
MR. PAPY: We'II take it up.
MS. BACH: This is for everyone.
MR. QUINCOCES: Good morning,
commissioners. My name is Richard
Quincoces, Q-U-I-N-C-O-C-E-S. First,
I want to thank Mayor Levine on fighting
for the working families of Miami Beach and
proposing this ordinance on raising the
minimum wage and you for hearing this and
64
1
2
3
4
trJ
6
1
8
9
10
11
72
13
74
15
76
T1
1B
L9
20
27
a.>LL
23
..\
^z-n
25
National Reporting Service(305) 313-1295
80
1
)
3
4
trJ
6
1
B
9
10
11
L2
13
74
15
76
71
18
79
20
21
22
23
24
25
Page 65
considering it.
I've been a resident of Miami for
over 25 years and have been a construction
worker for over ten. I come here, Itm
speaking on my personal experience as a
construction worker. I work under union,
I worked under LIUNA Loca1 L652, and I have
work with other people that are not
represented under my collective bargaining
agreement, and I have seen the struggles
that these families have firsthand.
I have seen how they have been =1.1e
to have to jump onto public assistance, and
the employer, the corporation, wiJ-J. teJ.I
them this is the way to go do it.
I also I believe that these corporations
are earning year in and year out they earn
massive profits, and all they do is propose
for people to jr:mp on public assistance.
So I ask you to please consider in helping
these people out and, you know, gror{
Miami-Dade I mean, €Jrow Miami. Wef re
all residents here, and, you know, it's
hard to live here. Thank you.
MR. BARFIELD: He1lo, how you aII
National Reporting Service(3os) 313-1295
81
Page 66
1 doing?
2 COMMISSIONER ARRIOLA: Good. How
3 are you? Your name for the record?
4 MR. BARFIELD: My name is Isaiah
5 Barfield. Isaiah Barfie1d. Can you hear
6 me now? Ifm a fast food worker for KFC,
1 and as this grentleman was just saying, itrs
B v€ry, very difficuJ-t and hard to fight this
9 minimum wal1e, and at the moment it's 8.52
10 is what I get approximately, and that is
11 clearly too J-ittle.
12 It's a J.ittle too late, because, you
13 know, I'm facing eviction, and because
L4 I canft pay my bi]-ls, I canrt rea1ly eat,
15 I loose pounds, and this is just me myself.
16 So, you know, for families I know itrs
Ll devastating, and for them to get out there
18 with their children, try to encourage them
79 to eat out of a can of beans or to eat this
20 steal food that they canft afford it's
2\ hurtful and downhearted that they get low
22 salary. And they have to stay up with
23 their children. Not only work two or three
24 jobs, but also make their families happy
25 when theyrre not really happy with
National Reporting Service(30s) 313-1295
82
Page 61
1 themselves and the way that they are
2 Ereated.
3 So I'm here just to siy, just one
4 voice, that, please, give Miami Beach what
5 they need. Thank you.
6 coMMrssroNER ARRror.A: Thank you.
1 Thank you for sharing your story.
B MR. CUBA: Good afternoon
9 commissioners. My name is Juan Cuba,
10 ,I-U-A-N, C-U-B-A. I'm going to telI you a
11 little bit about my personal experience,
72 but aJ.so Irm going to read a letter into
13 the record from Rabbi Schiff.
74 First, I grew up in Miami. Since
15 I Yras three years old, I grew up in
76 Kendall, I lived in the City of Miami most
l1 of my life. My parents worked minimum wage
18 jobs. My dad worked two or three jobs just
19 to make ends meet, and so did my mom. You
20 know, I would remember my dad had to
2L deliver pj-zzas, you know, was a maintenance
22 guy in condos, and how tough it was for him
23 and how much strain it caused our famiJ.y.
24 So this bilI, this minimum wage that
25 you guys are doing, it's inspiring, and
National Reporting Service(30s) 373-1295
83
Page
itts going to help so many famiJ.ies. It's
about families, it's about neighborhoods,
it's about communities, because when
workers that are working two jobs are
barely making it and come home, and if you
give them a raise, it will mean so much to
them and their childrenr So thank you.
I have a letter here from Rabbi
Solomon Schiff, president of South Florida
Interfaith Worker Justice that I'11 read
into the record.
Dear Mayor Levine and commissioners,
on behalf of South Florida Interfaith
Worker ilustice and the faith communities
that we represent, we would J-ike to commend
you for your efforts to support working
fami1ies in Miami Beach and to encourag'e
you to continue to do so by enacting the
Miami Beach living wag'e ordinance that will
be heard by the finance committee on ,June
3,20L6.
You have the opportunity not only to
support our Miami Beach community through
those initially affected by the ordinance,
but also to affect many others due to the
6B
1
2
3
4
5
6
1
B
9
10
11
I2
13
74
15
76
71
18
79
20
27
22
23
24
25
National Reporting Service(30s) 313-1295
84
1
2
3
4
5
6
1
B
9
10
11
72
t-1J
T4
15
L6
L1
18
79
20
2L
22
Z3
.ALA
25
Page 69
ripple effects of the ordinance.
Additionally, Miami Beach can, once
again, serve as an exemplar and set a
positive tone for others in our county and
our state. Your actions in support of this
ordinance would embody our diverse faith
tradition by recog'nizi,ng the inherent
worth, rights, and dignity of employees and
their families.
DIe urge you to support the Miami
Beach Minimum Living Wage Ordinance,
thereby benefitting not just our local
community but many others as well.
Sincerely, Rabbi Solomon Schiff. Thank
you.
MR. LICHTI'IAI{: Good afternoon. My
name is A1 Lichtman, A-L got that one?
L-I-C-H-T-M-A-N. Great presentations.
I think Irve got some bullet points here, I
think there's some things we need to know,
but the federal minimum wage is not
currently tied to infJ-ation or the cost of
living changes.
So in areas where the minimum vrage
is not enough to pay for basic 1iving and
National Reporting Service(30s) 373-1295
85
Page
employees who are working for minimum wage
and do not reJ-y on government assistant
prog'rams have greater hurdles to make a
living. That means that greater turnover
of employees who are consistently seeking
wages and to find new ways to make more
money.
Now cities like Santa Fe and San
Francisco, and I did a J.ittle research on
this, because there's a lot there's a
lot going on around the country and the
different cities that have already done
these things, and some of the things are
that the economic evidence indicates that
the highest city minimum wages enable in
U.S. cities to date have boosted earnings
without slowing job growth or causingr
business relocations.
Now, an indication of this new Yrave
of action around local minimum wages was
the U.S. Conference of Mayors, the Cities
of Opportunity Task Force, which in August
of 2OL4 endorsed higher city minimum wag'e
wages, asking tools for fighting income
inequalities at the lower Ievel.
10
1
2
3
4
5
6
1
8
9
10
11
12
13
L4
15
76
71
18
79
20
27
))
23
24
25
National Reporting Service
( 305) 313-1295
86
Page
Now, Irve worked on Miami Beach for
the last 35 years, and, you know, I'd like
to keep it as a great place to work, visit,
and have fun. So thank you for your time.
COMMISSIONER ARRIOLA: Thank you.
Other fo]-ks? Sir.
MR. DIXON: Marcus Dixon, SEIU,
Florida state counsel, M-A-R-C-U-S, D, as
in dog, I-X-O-N, as in November.
I just wanted to provide some
information based on some of the earlier
conversations. Two-thirds of minimum vrage
workers in the United States are women, and
that, you know, puts it in perspective
exactly how much it affects families, but
in EJ-orida the averag'e underpaid worker is
40 years old, and most of them are women.
Another important fact is that Iow
wages are costing Florida taxpayers
$11.4 billion in public assistance each
year. That's based on a report SEIU
published earlier this year called the High
Pub1ic Cost of Low l[ages, and that's taking
into consideration 10 public assistance
programs excluding Medicaid costs.
17
1
2
3
4
5
6
1
B
9
10
11
72
13
L4
15
76
L1
18
79
20
27
22
23
24
Z3
National Reporting Service
(30s) 373-1295
87
Page
And to answer or respond to one
additional point that I heard a littJ.e bit
earlier is the cost for living in Miami
Beach. Using the Economic PoJ-icy fnstitute
as a resource, they have a family budget
calculator. If I could put it up on the
computer, I would, but it lays out for the
Miami, Miami Beach, KendaII Metro area the
cost of living, and so it takes into
consideration housing, food,
transportation, health care, and other
necessities and taxes.
So for a single individuaJ., the cost
of living in this metropolitan area is
$31,354 annuaJ-J-y. So you think about that,
you think about the 16,000 that Cynthia
mentioned ear].ier in terms what of a
minimum wage worker actually gets, and you
wonder what exactly they' re doing to make
it through.
This calculator also al-J-ows you to
add children and the number of adults in
the household, so you stay with a single
adult and add a child, and that number
jumps from the 30,000 number up to $52,000
12
1
2
3
4
5
6
1
B
9
10
11
72
13
t4
15
76
71
1B
L9
20
2t
22
23
24
4tr,
National Reporting Servj-ce(305) 313-1295
88
Page 13
1 annually.
2 That's all I wanted to share with
3 you. Thank you.
4 COMMISSIONER AI,E![A]I: r might add,
5 as we contemplate those numbers, that
6 obviously therers no room in there for
'7 savings, and there does come a point in a]-].
8 of our lives when it's time to retire and
9 werre not able to work anymore, and then
10 you know, then wetre talking a hundred
11 percent 9ap, because there's no way with
72 that model that people can be putting aside
13 money for their future which may have
L4 higher healthcare costs and other issues.
15 MR. DIXON: Absolutely. Thank you.
16 COMMISSIONER ARRIOLA: Matis. Letrs
l1 hear from Matis.
18 MR. COHEN: Hi, Matis Cohen,
79 M-A-T-I-S, C-O-H-E-N. Tru1y, I'rl inspired
20 and moved by the testimony and stories that
27 Irve heard here today, and f I was also
22 educated with some of the numbers that
23 I tiras surprised to hear, and f 'm happy that
24 we had this open forum that we can have
25 that discussion, but as Commission Aleman
National Reporting Service(30s) 313-1295
89
1
2
3
4
5
6
1
B
9
10
11
72
13
74
15
76
71
1B
79
20
2t
22
23
24
25
Page 1 4
and Commissioner Ma1akoff, and Commissioner
Arriola, you've mentioned that it j-s only
one component.
And I think it would be a nice idea
if there was a City contribution, I caJ.J.
it a "contribution" for lack of another
word, that would promote the in addition
to this, the businesses that actually have
residents working on the beach. So while
we're talking about transportation, so a
resident that lives on the a resident
that is working on the beach, that small
business or a larger business can
benefit -- should have a beneficial
there should be some benefits to that
business that helps to embrace this tlpe of
ordinance and long-term thinking, and just
an idea of something that might be a
win-win for everybody and for the city also
to contribute into this initiative.
COMMISSIONER ARRIOLA: It's a good
idea. Can you maybe now or maybe later
you can come back to us with some ideas
there. I think that's a good idea for a
]-ot of reasons.
National Reporting Service(30s) 313-1295
90
1
2
3
4
5
6
1
8
9
10
11
L2
13
14
15
t6
77
18
L9
20
27
22
23
24
25
Page 1 5
MR. COHEN: Yeahr so so we've had
a lot of conversations on this issue, and
there are some things and, of course, some
other ideas regarding workforce housing
that are attached to it as weII, and
f think that the City had had many, many
years alto some kind of initiatives that
never took effect, but I think that they
can be combined, and I think that from a
holistic perspective, Iooking at the
housing, transportation, and wage as a
combination is a very healthy way to be
looking at it. Thank you.
COMMISSIONER ARRIOLA: It's a great
idea. You know, at the end of this I'11
give you my comments on all of this, but,
you know, as I had mentioned earlier, even
if we raise the minimum wage, it's stiIl
tough to get by.
MR. COHEN: Yes.
COMMISSIONER ARRIOLA: So, you know,
the concern I have is, you know, with
traffic being a big problem for our
community, to the extent that the foJ-ks who
are trying to help here can' t actually live
National Reporting Servi-ce(305) 313-1295
91
1
2
3
4
5
6
1
B
9
10
11
72
13
74
15
76
L1
1B
L9
20
27
22
23
24
25
Page 1 6
here, w€'re not addressing traffic and the
other issues that werre trying to tackle,
and perhaps there's a way to keep some of
these folks, either move them to Miami
Beach or keep some of our folks that are
J-iving here but working elsewhere.
MR. COHEN: Right.
COMMISSIONER ARRIOI,A :So Ifm very
interested in those ideas.
MR. COHEN: So when you touched
upon when you offered to hear the ideas,
it triggered the next stage, and we'd love
to have that conversation, because there
are a J.ot of ideas coming around right now
regarding how to make this a combination
that solves the real problem. It's not
just one element, and when I hear people
working two and three jobs, it hurts to
hear it, and to live on the beach, and
that's a big sacrifice.
Werd like to find ways to
incentivize them and to loosen the burden
that it's not just about an increase in
wage, but it's about the quality of J.ife as
weII.
National Reporting Service
(30s) 313-1295
92
1
2
3
4
5
6
1
B
9
10
11
72
13
T4
15
L6
71
18
79
20
2L
22
23
-AZ1
25
Page 11
COMMISSIONER ARRfOLA: Thank you.
MR. COHEN: Thank you.
COMMISSIONER ARRIOLA: Matt, did you
want to come up?
MR. LAI{D: Sure.
COMMISSfONER ARRIOLA: Folks, we' 11
go maybe another 15 minutes or sor and then
we'1I close it off.
MR . LAI{D : Matthew Land,
M-A-T-T-H-E-$I, L-A-N-D, political director
for the Southeast Labor District Counsel
and aJ-so Commissioner A1eman appointee or
one of her appointees the Miami Beach
Affordable Housing Advisory Committee.
I commend you alJ. for taking this
position today and agree with all the
comments about this is a multi-pronged
approach. Itr s not just wag'es, itr s
transportation and housing, and just to
give you all a very brief preview, So our
affordable housing advisory committee is
currently contemplating muJ.tipJ-e different
legislative proposals .
VIe hope to bring something forward
to you guys in the coming months, give you
National Reporting Service(30s) 313-1295
93
Page 18
1 guys a buffet of options, what have you, to
2 say these are some great ideas. We've been
3 hearing from some phenomenal people J-ike
4 Ralph Rosado, hearing from the folks at UM.
5 I've been consulting with peopJ.e
6 like Commissioner Francis Suarez,
1 Commissioner Xavier Suarez, Commissioner
I Barbara Jordan on things that they're doing
9 aJ-l around Miami-Dade County, because
10 there's some really great things that
11 we can do to address affordable workforce
72 housing, and that's one of the areas Miami
13 is certainly lagging in addressirg, and we
14 look forward to bringing you those soon.
15 Thanks.
16 COMMISSIONER ARRIOLA: Thank you.
tl MR. CfRjAIDO: Daniel Ciraldo,
18 C-r-R-A-L-D-O.
t9 COMMISSTONER ARRIOLA: Daniel, I'm
20 used to seeing you with the historical
27 preservation. Itrs like a paral.lel
22 universe here.
23 MR. CIRjALDO: I know, and actual.ly I
24 have to I have to thank Tlendy and
25 Jackie, because during the convention
National Reporting Service
(305) 313-1295
94
Page
center hotel vote, I learned about how the
hotel was proposed to have a J-iving wage
for its workers, and f promised them at the
time that if we won and the hotel was
defeated, that I would be here to stand in
support of living wager so hear I am.
COMMISSIONER ARRIOLA: You know
wefre working hard to bring it back.
MR. CIRjAIDO : I know. I know, we I re
going to buiJ-d consensus and make a great
hotel, but yeah, I think Miami Beach has
been so successful with its hotels, with
its historic preservation, with its real
estate that now is a great time to catch up
with the workers who really make it all
happen, and I think it's a great idea, and,
hopefully, you'11 all support it.
And al-so in terms of housi.g, you
know, the North Shore is a great area that
has a lot of housing where people live and
work in Miami Beach. I J-ive in Flamingo
Park, it's a historic district. Everyone
in my building works in Miami Beach, and a
lot of them are hotel workers.
So let's also look to our historic
19
1
2
3
4
trJ
6
1
B
9
10
11
t2
13
74
15
L6
71
18
79
20
2L
))
ZJ
24
25
National Reporting Service(3os) 313-1295
95
Page B0
1 district and other areas to protect and
2 Lmprove the housing there, because it is
3 one of the last remaining affordabl-e places
4 Eo live. Thank you.
5 COMMISSIONER ARRfOLA: Thank you.
6 You gtot up earlier, do you want to speak?
1 T saw you got sworn in, I didn't know
I if you wanted to speak. Okay. Anybody
9 else?
10 No? Okay. Great.
11 COMMISSIONER },IAI.AI(OFF: ThE ChiIdrEN
72 are shy.
13 COMMISSIONER ARRIOI"A: You know
74 what, it's good practice for you gfuys. One
15 of you brave ones, stand up. This wiJ-l be
76 good. You'Il remember this for the rest of
71 your J-ife. It's okay.
18 MS . FLEIIRILUS : He said he wanted to
L9 speak.
20 coMMrssroNER Al,EltAt{: we would love
27 to hear from you.
22 COMMISSIONER ARRIOLA: Itrs good
23 practice. I want to hear from you.
24 CoMMISSIoNER ALEtdAt[: Then you'I1
25 get to yeah, all right, and you'lI get
National Reporting Service(30s) 313-1295
96
Page
to see yourself on television later, so
that's fun too.
COMMISSIONER ARRIOLA: Yeah, you' 11
be on TV. Somebody take his picture so
he can show off. Whatrs your name?
MR. DENISON TOUZE: I think they
should --
COMMISSIONER ARRIOLA: Wtrat I s your
name, and where do you go to school?
MR. DENISON TOUZE: Denison, and
I go to school at Woodlands Middle, and
I think they should raise the minimum wage
to $15 because
COMMISSIONER AIEtlAlit: Hers a good
negotiator.
MR. DENISON TOUZE:people
deserve it, because they're J-ike working
for their families, and it's not fair to
them. They're like overworked, and they
don' t get like paid enough, and yeah.
COMMISSIONER ARRIOLA: Thank you.
I[ait, wait, wait, wait. Come back. Come
back. Yeah, Denison, thank you so much for
your comments . You're very brave, and
if you guys want to come up, I'd love to
B1
1
2
3
4
5
6
1
B
9
10
11
72
13
L4
15
16
71
1B
L9
20
27
))
ZJ
.A2.7
25
National Reporting Servi-ce(30s) 373-1295
97
Page 82
t hear from you, too.
2 Vlhat are you thinking about being
3 when you grow up?
4 MR. DENISoN TOUZE: Engineer.
5 coMMrssroNER ARRror,A: very good.
6 Nice. Do you J-ike math?
7 MR. DENfSON TOUZE: Yes.
8 COMMISSIONER ARRIOLA: GOOd. StiCK
9 to it. That's the hottest career. you'Il
10 have a job for life, a good paying job,
11 you'll never make minimum wage, and you
72 will and our country needs more
13 engineers. It's a big problem that
L4 we have. So stick to it, don't give up.
15 Come on. You won't regret it,
76 I promise. Come up. Whatr s your nErme.
t] MR. NrcK TouzE: Nick Touze.
18 MS. FLEURLfUS: Just go say your
L9 name.
20 COMMfSSIONER ARRIOLA: Come on up.
27 We've g'ot time to kiII . Wtrat' s your name?
22 MR. NICK TOUZE: My name is Nick
23 Touze.
24 COMMISSIONER ARRIOLA: Okay. Good.
25 Where do you go to school?
National Reporting Service
(305) 313-1295
98
Page 83
1 MR. NfCK TOUZE: Poinciana
2 Elementary.
3 COMMISSIONER ARRIOI,A: GTEAT. HOW
4 do you feeJ. ahout this issue?
5 MR. NICK TOUZE: Sorry for the
6 people that can't make enoug'h money to
J raise their families.
8 CoMMISSIONER ARRIOLA: Okay. Wtrat
9 do you want to be when you grow up?
10 MR. NICK TOUZE: A footJcall player.
11 COMMISSIONER ARRIOI,A: It'S A liIt,lc
72 bit tougher, but that's good. Do you play
13 now?
74 MR. NICK TOUZE: Yes.
15 COMMISSIONER ARRIOLA: EIag or pads,
L6 tack]-e?
71 MR. NICK TOUZE: Pads.
18 COMMISSIONER ARRfOLA: Pads, oh,
19 tackle. Wtrere do you play, what park?
20 MR. NICK TOUZE: WBFL ?Iest Boynton.
27 COMMISSIONER ARRIOLA: Nice . Wtrat
22 position do you J-ike playing?
23 MR. NICK TOUZE: Linebacker.
24 COMMISSIONER ARRIOLA: Good
25 position. Iilho is your favorite football
National Reporting Service(30s) 313-1295
99
Page 84
1 player?
2 MR. NICK TOUZE: Ray Lewis.
3 COMMISSTONER ARRIoI,A: Mine Ioo. I
4 Love Ray. He's amazing. He's great.
5 I[e11, good. That wasnrt so bad, right?
5 You did your first public speaking.
7 Dlerve got one more. You can I t be
B the odd -- the odd guy out. Yourre shy.
9 T. just want your name. I just want your
10 name.
11 MR. NOAH FLEURILUS: Can you hear
L2 me?
13 COMMISSIONER ARRIOLA: What's your
74 name? Yeah, I can hear you. Iiltrat's your
15 name?
76 MR. NOAH ELEURILUS: My name is Noah
71 Fleurilus.
18 CoMMISSIoNER ARRTOLA: Do you like
79 football?
20 MR. NOAH FLEURILUS: I ]-iKE
27 basketba].]-.
22 COMMISSIONER ARRIOLA: You like
23 basketbalJ-. Who you rooting for? Wtro are
24 you rooting for in The Finals, the Warriors
25 or the Cava].iers?
National Reporting Service(30s) 313-1295
100
Page 85
1 MR. NOAH FLEURILUS: Warriors.
2 COMMISSIONER ARRIOLA: ?Iarriors.
3 All right. Me, too. Do you know who Cam
4 Newton, the footbal-J- player, Cam Newton?
5 MR. NOAH FLEURILUS: No.
6 COMMISSIONER ARRToI,A: You Kind of
7 look J.ike him. Very handsome guy, and a
B great football player. So where do you go
9 to school.
10 MR. NOAII FLEURILUS: Benoist Farms
11 Elementary.
L2 CoMMISSIONER ARRIOLA: Wtrat do you
13 want to be when you grow up?
L4 MR. NoAH FLEURILUS: A fire fighter.
15 COMMISSIONER ARRIOLA: Oh, good,
16 good. tle have great we have, I think,
11 the best fire department in the whole
18 county and the whole state, so when you get
79 o1d enough, we'd love to have you apply
20 here, and if you'd like to come see a fire
2L station, I'11 arrange that. f'11 have my
22 aid give you his business card, and you
23 call us, and we'Ll have the firefighters
24 show you around. Deal?
25 MR. NOAH FLEURILUS: Yes.
National Reporting Service(30s) 373-1295
101
Page 8 6
1 coMMrssroNER ARRror,A: That wasn't
2 so bad, right? That yrasnrt so bad. Okay.
3 Anybody else?
4 Okay. Irm going to close the public
5 hearing, and f would love to hear from my
6 col].eagrres on this issue.
1 COMMISSIONER TIALAKOFF: I'm very
B much in support of this ordinance, and
9 I thing wefve heard a lot of good data
10 today. About 38 cities that have enacted
11 their own minimum wage J.egisJ-ation with
L2 positive benefits not only to the workers,
13 but to the businesses.
74 I think that the impact has been
15 positive, not adverse. I think that werre
16 on the right track to to do not only the
L1 wages, but also, dS I mentioned before,
18 Commissioner Aleman and I both are working
79 on stopping illega1 short-term rentals
20 which is having a very negative impact on
2L the hospital.ity industry, and I think that
22 is realIy going to help and enable the
23 hotels to feel better about about paying
24 the living wage.
25 I think we also need to continue
National Reporting Servj-ce
(305) 313-1295
102
Page
looking. We right now have trolleys that
are free of charge to everybody in Miami
Beach, and wefre going to be putting in the
Middle Beach, So that worker who are
working on Miami Beach will have free
transportation going South Beach, MiddJ-e
Beach and North Beach. I think that will
help.
I al-so think, because transportation
was one of the main items, and the other
was workforce housing. YIe are putting out
a request for proposal for several- new
garages in the city, and part of each of
the garag'es wilJ. be a component for
workforce housing.
There's a big need for housing in
the city, and as Matthew Land mentioned,
our affordable Housing Committee is also
Iooking at that with some, hopefully,
out-of-the-box ways that we can provide
affordable housing as well as workforce
housing in the City of Miami Beach.
So I thank you all for coming here
today, and thank you so much for giving us
this additional facts, f igrures, and
B7
1
2
3
4
5
6
1
B
9
10
11
72
13
t4
15
I6
71
1B
t9
20
2L
22
ZJ
24
25
National Reporting Service(3os) 373-1295
103
1
2
3
4
5
6
1
B
9
10
11
t2
13
t4
15
t6
71
1B
79
20
27
22
23
24
25
Page 88
information.
COMMISSIONER ALEIIAI{: I just want to
echo what my colleagues have said. Irm
interested as well in some of the ideas
that were raised al.out additiona1 benefits
that we might as a city be able to provide
to businesses that employ residents and
looking forward to some additional creative
thinking there.
I was really, similar to what
Mr. Cohen said, very impressed, inspired,
and humbled by a lot of the research and
analyses that was shared by some of the
experts today. I found that very helpful.
I rf,as real1y shocked to learn that
globalIy Miami's income inequality exceeds
that of Buenos Aires and Rio de Janeiro and
Mexico City. I found that you know,
it was a bit a bit shocked by that.
I did know we had one of the highest wage
gaps in terms of the f can' t remember
the terminology for it, but basically the
77,OOO that it takes to live, and that's
not an excessive lifestyle that they're
modeling, that's a very basic 1ifestyle.
National Reporting Service(305) 3'73-1295
104
Page
So the gap against the curent
minimum wage is pretty shocking, and so
I think we can see why werve had with
combine that with just the soaring'property
values driving increased rents, combine
it withr ES Commissioner Mal.akoff said,
short-term rentals really stealing
stealing jobs and also not providing, you
know, the funding to the city that we can
use to offset, you know, some of these
issues and help us with these issues.
So f think it was an excellent
forum. I'm proud to be a part of it, and
thank you to everyone who came out and
stayed, and congratulations to the young
men who did testify, thank you for that,
and yeah.
COMMISSIONER ARRIOLA: I just I
just have some notes and thoughts. I'11
just kind of ramble a littJ-e bit and try to
be coherent. So, you know, I got to this
point of, obviously, favoring this
resolution and moving in the direction of
raising our minimum wage in Miami Beach.
I did a lot of research, read a lot
B9
1
2
3
4
5
6
1
8
9
10
11
t2
13
74
15
t6
71
18
79
20
2L
22
23
AAZ1
25
National Reporting Service
(305) 373-1295
105
1
2
3
4
5
6
1
B
9
10
11
I2
13
L4
15
76
71
1B
79
20
27
22
23
24
25
Page 90
of studies from different economic
economists and think tanks, and the
overwhelming consensus, I was very
surprised to read, is that minimum wage
does not hurt jobs and it does not hurt
economies or businesses, and so that Eave
me comfort, because I donft want to see
bus j-nesses suffer, because then we aJ.J-
suffer.
But what really got me to the place
where Irm at now in supporting this is
that, you know, when you look at the impact
on human beings that get trapped in the
cycJ-e of poverty, it's it's not easy to
gret out, you know, and I you know, Irm
embarrassed that our community in Dade
County has the income inequality that
it does. Irm not sure that this will break
that, but if it if it helps get us out
of that cycle, then I'm going to be very
proud to have supported this legislation.
Itrs going to be a fight. Itrs
J.ikeJ.y going to end up in court. I think
the City is ready and eager to challenge
the state on this. Miami Beach has always
National- Reporting Service(30s) 313-1295
106
Page
been a progressive city. That's why, I
know, By colleag-ues and I ran for office.
Werre very proud of this community, and the
folks that live here and work here.
We've J-ed the way on LGBT issues.
Wefre leading the nation on sea level rise.
We have a very open and transparent
government. Werre leading on environmental
causes now, and, again, the State is
challenging us on a lot of those things.
Dferre trying to be very progiressive on
transportation, tacklingf our transportation
issues. We're aJ.J. going to be seeing a lot
more of that in the eoming months.
You know, we welcome g'uests from aJ.J.
over the world, so, you know, what are
we saying to the world about who we are as
a community, and, you know, income
inequality is a big problem in our country,
and Miami Beach has always been a
progressive city, and I think people expect
us to lead as a city, and this is sending a
signal to the State and to the rest of the
nation that we're willing to do things that
we think are right, and even if it's going
9L
1
2
3
4
trJ
6
1
8
9
10
11
t2
13
t4
15
76
L1
1B
t9
20
27
22
23
24
25
National Reporting Service
( 30s ) 373-1295
107
1
)
3
4
5
6
1
I
9
10
11
L2
13
74
15
76
71
18
79
20
27
22
23
24
25
Page 92
to be hard to do, w€'re wil]-ing: to do it.
Werre tackling sea leve1 rise at a
time when this is an existentia]- crisis for
us, but werre not backing down. ?Ie think
rf,e can meet the challenge. I think we can
meet the challenge of dealing with income
inequality in our community.
Itrs not a silver bullet. Raising
the minimum wage is not going to get us
where we all want to be in making Miami
Beach an afford pJ-ace and having a high
qual.ity of life, not just for people in the
upper income level, but for all people. So
you've heard my col1eagues here talking
about things that we want to do, and
we need your help.
Affordable housing, transportation,
we need your help to help us get there.
}Ie have a lot of good ideas, but we need
public support to get there. Raising the
minimum wage is not the only way to help
deal with affordability and qual.ity of
life. VIe're prepared to do everything
Yre can to get us there.
Property taxes, which is a big way
National Reporting Service
(305) 313-1295
108
1
2
3
4
5
6
1
I
9
10
11
L2
13
L4
15
L6
L1
1B
79
20
2t
22
23
24
25
Page 93
that we found ourselves here at the city,
went up 13.3 percent is 20L4, and just
recently, we got the nr:mbers two days ago,
another L2.2 percent. That tell-s us that
we have the money to solve a lot of these
issues.
I think this commission has the wi].].
to do LE, but we need your support, and so
I'm saying this to the public at large,
we need to come together as a community and
lead the way for our state and our nation
on how communities can build for the future
for everybody, not just the upper income
fo1ks.
So I'm proud that wetre here today
and taking this initiative to raise the
minimum wage, and I look forward to, you
know, winning this in court if it comes to
that. I think for the small business
owners out there who might be worried with
this, I think you heard from myself and my
colleagues that we're also going to do
everything we can to mitigate any negative
effects this may have.
The implementation is an 18-month
National Reporting Service(30s) 313-1295
109
Page 94
1 implementation, and it's phased out over a
2 period of years so that businesses can
3 prepare. Vle're dealing with transportation
4 and affordable housing, which wilJ- also
5 help offset some of the costs that
5 businesses today have to absorb in their
'7 workers and in their businesses.
I I believe, correct me if I'm wrong,
9 is there a provision in the resolution for
10 an economic study every couple of years to
11 see the impact of this?
L2 MR. PAPY: At the end of the period,
13 each year there will be an annual review of
14 the cost of J-iving. That's how itrs set
15 up. That's the way we
L6 COMMISSIONER ARRIOLA: Okay. Oh,
71 wonderfuJ-. ?Ie have a present for you g"uys.
18 Do you have something, ,foy?
79 COMMfSSIONER I,IALAI(OFF: yes, I just
20 wanted to mention besides the minoriti-es
2L that are so much impacted, I just wanted to
22 repeat, ag'ain, that two-thirds of the
23 minimum wage workers are riromen, and I think
24 that's so important.
25 It's a wonderful it's a terrible
Natj-onal Reporti-ng Service(305) 313-1295
110
Page
statistic, but it's good to know, and
I think that when women are trying to raise
a family, and often they're singJ.e women,
itrs often impossible, and this is really
going to help. This is important. And I
wanted to repeat something that Juan Cuba
mentioned in his letter from Rabbi Schiff.
This is for workers to show their
worth, their rights, and dignity, and
I think itt s something' ere have to keep in
mind, whether there are some problems in
implementing, w€ have to think what the end
result is, and it's going to be helping the
minorities, heJ-ping woman, and validating
the dignity and worth of every worker.
Thank you.
COMMISSIONER ARRIOLA: You know, LL
makes me proud that we are Miami Beach, and
we're leading the way on so many of the
issues that I mentioned, and yet, you know,
it's troubling to me that we live in a
state that takes great prider 3s the
governor did a couple of weeks ago in
California, going out and saying that
we have the lowest yragesr a's if it's
95
1
2
3
4
5
6
1
B
9
10
11
t2
13
L4
15
t6
L1
1B
79
20
27
22
23
24
ZJ
National Reporting Service(30s) 313-1295
111
1
2
3
4
5
6
1
8
9
10
11
t2
13
74
15
76
71
18
L9
20
2!
22
23
24
25
Page 96
something to be proud of.
tle live in a state that tries to
preempt municipalities from passing
environmental laws to protect their own
communities. You know, w€ live in a state
that, you know, currently denies cJ.imate
change, and werre at the ground J.evel of
sea level rise.
You know, so it doesnrt matter what
the State is going to do, Miami Beach will
lead, and we will be progressive, and
we will show the State what needs to be
done to make this the best state in our
nationr so do we need a motion to pass the
resolution?
MR. PAPY: It seems to me you could
make a motion to endorse it and support
ir.
COMMISSIONER }'IALAI(OFF: I move the
item to move forward with this ordinance
amending Chapter 18 of the city code
entitled I'Businessesr" and adding this to
ir.
COMMISSIONER AI,E![A]I: I second it.
COMMISSIONER ARRIOLA: Okay. Passes
National Reporting Service
(305) 313-1295
112
1
2
3
4
5
6
1
8
9
10
11
L2
13
L4
15
I6
71
1B
79
20
2L
22
23
24
25
Page 91
unanimously.
To the three younlJ men to the
three young men that were bold enoug'h to
come up and speak,
YOU, COme On ljrP.
(Thereupon,
concluded at 2253
we have somethj-ng for
the meeting was
P.m. )
National Reporting Servj-ce(30s) 313-'7295
113
Page 98
1
2
3
4
5
6
1
I
9
10
11
t2
13
74
15
76
II
18
79
20
27
22
23
24
25
CERTIFICATE OF REPORTER
STATE OF FLORIDA :
COT'NTY OF MIAI{I-DADE :
I, Matthew J. Haas, shorthand
reporter, do hereby certify that f was authorized
to and did stenographically report the foregoing
proceedings and that the transcript is a true and
complete record of my stenographic notes.
Dated this Sth day of June, 20L6.
}{ATTHEW J. IIAAS
Court reporter
National Reporting Service
(305) 313-1295
114
NATIONAL
EMPLOYMENT
LAW
PROJECT
Testimony of Laura Huizar
National Employment Law Project
Increasing the Minimum Wage in
Miami Beach
Hearing before the City of Miami Beach Finance
and Citywide Proiects Committee
fune 3,2016
Laura Huizar
Staff Attorney
National Employment Law Project
2040 S Street NW, Lower Level
washington, D.C. 20009
(202) 683-482s
lhuizar@nelp.org
115
Good afternoon and thank you for the opportunity to testify today. My name is Laura Huizar, and I
am a staff attorney at the National Employment Law Project [NELP).
NELP is a non-profig non-partisan research and advocacy organization specializing in employment
policy. We are based in New York with offices across the country, and we partner with federal,
state, and local lawmakers on a wide range of workforce issues. I am based in our D.C. office.
Across the country, our staff are recognized as policy experts in areas such as unemployment
insurance, wage and hour enforcement, and, as is relevant for today's hearing, the minimum wage.
We have worked with dozens of city councils and state legislatures across the country and with the
U.S. Congress on measures to boost pay for low-wage workers. NELP has worked with most of the
cities in the United States that have adopted higher city minimum wages in recent years and is
familiar with their economic experiences.
NELP testifies today in support of increasing the City of Miami Beach's minimum wage to $13.31
per hour by 2020, as Mayor Philip Levine has proposed. In response to declining wages for low-
wage workers across the country, as well as state and federal minimum wage rates that fail to
provide for a basic standard of living the number of cities throughout the country that have
increased their minimum wage has grown significantly in recent years. In 2003, only two cities,
Santa Fe, New Mexico, and San Francisco, had enacted local minimum wage laws, Between 2013
and201.4, almost twenty cities enacted their own higher minimum wage, and to date, thirty-eight
cities have done so.1
Cities and states are also increasingly adopting minimum wage rates at or near $15 per hour.
California and New York approved a statewide $15 minimum wage earlier this year. SeaTac,
Washington, which was the first city to adopt a $15 minimum wage, did so in 2013. San Francisco
Mayor Ed Lee brokered an agreement between labor and business to place a $15 minimum wage on
the November 2074 ballot, which the voters overwhelmingly approved, and the Los Angeles city
council approved a $15 minimum wage in f une of last year. Chicago adopted minimum wage
legislation in2074 that would raise the city's minimum wage to $13 per hour by 2079. Oregon also
enacted legislation earlier this year that would raise the state's minimum wage to $12.50, $13.50, or
$14.75 by 2022, depending on the region. A full list of recent minimum wage increases can be
found at the Raise the Minimum Wage website.z
The most rigorous modern research on the impact of raising minimum wages shows that raises
increase worker earnings with negligible adverse impact on employment levels. As more and more
U.S, cities enact local minimum wages, the research has similarly shown that such local measures
have no adverse effect on jobs, and implementation of higher local wages has proven manageable
for employers. The benefits for low-wage workers and their families of higher wages have been
very significant, raising wages in the face of broader economic trends that have led to stagnant and
falling wages across the bottom of our economy, reducing economic hardship, Iifting workers out of
poverty, and improving other life outcomes.
Low paying industries are disproportionately fueling job growth today, with more and more adults
spending their careers in these positions. Raising the wage floor, which has badly eroded over the
decades even as corporate profits have skyrocketed, is urgently needed to ensure that local
economies can rely on workers' spending power to recover and that the growing numbers of
workers relying on low wages to make ends meet can contribute fully to this recovery.
116
Raising the minimum wage across the country, including in Miami Beach, would go a long way
toward restoring the minimum wage to where it was at its peak, when unemployment rates were
low, the minimum wage reflected much higher purchasing power, and the minimum wage was
equal to half of what the median worker earned.
Who Would Benefit From A Higher Minimum Wage in Miami Beach?
The cost of living in Miami Beach substantially exceeds the cost of living in most other parts of
Florida and ranks among the highest in the country.3 A single worker in the Miami/Miami
Beach/Kendall metro area with no children needs at least $31,354 per year-or at least $15 per
hour working full time-to get by.a A single worker with one child requires $52,068, or more than
$25 per hour, for basic living costs.s
The Growing List of Cities and States Enacting Minimum Wage Increases Reflects a
DeepeningWage Crisis and Popular Support for Bold Change
The U.S. economy has seen steady growth and improvement in the unemployment rate in recent
years, but wages have been flat or declining for much of the labor force. 6 Averaged across all
occupations, real median hourly wages declined by 4 percent from 2009 to 2014, and lower-wage
occupations experienced greater declines in their real wages than did higher-wage occupations.z
Moreover, job growth over the past year-and in the recovery overall-continues to be unbalanced,
with especially pronounced job gains in lower-wage industries and slow growth in mid-wage
industries. There are approximately 1.2 million fewer jobs in mid and higher-wage industries than
there were prior to the recession, while there are 2.3 million more jobs in lower-wage industries.s
Thus, low-wage workers and families are being squeezed between flat pay and rising living costs.
The worsening prospects and opportunities for low-wage workers have prompted a record number
of cities, counties, and states to enact higher minimum wage rates for their residents. Since
November 2072,nearly 17 million workers throughout the country have earned wage increases
through a combination of states and cities raising their minimum wage rates; executive orders by
city, state and federal leaders; and individual companies raising their pay scales.e Of those workers,
nearly 10 million will receive gradual raises to $15 per hour.to More than fifty cities and states have
raised their minimum wage since 2012.11
As the Fight for $15 movement gathers strength, advocates in a rapidly growing list of localities and
states are calling for a $15 minimum wage. Los Angeles, San Francisco, Seattle, SeaTac,
Washington, and Emeryville, California, have already enacted a $15 minimum wage for all
workers.12 New York and California approved a statewide $15 minimum wage earlier this year.13
More than a dozen cities and counties are currently pushing for a $15 minimum, and the list of
states considering the same is rapidly expanding.t+ States now considering legislative proposals
and/or ballot initiatives that would raise the statewide minimum wage to $15 include Missouri and
New fersey.ls
Recent polling data shows that approximately two out of three individuals support a $1,5 minimum
wage, and support among low-wage workers is even higher.to A poll of Iow-wage workers
commissioned by NELP found that approximately 75 percent of low-wage workers support a $15
minimum wage and a union.17 It also found that 69 percent of unregistered respondents would
register to vote if there were a presidential candidate who supported raising the minimum wage to
$15 and making it easier for workers to join a union, and 65 percent of registered voters reported
that they are more likely to vote if a candidate supports $15 and a union for all workers.ls
117
The trend in localities and states pushing for higher minimum wage rates will likely continue to
intensify as wages continue to decline, inequality remains at historically high levels, and the federal
government fails to take bold action to ensure that hard-working individuals can make ends meet.
Higher Wages from Minimum Wage Increases Have Very Significant Beneficial Effects for
Low-Income Individuals and Households
The higher incomes that result from minimum wage increases have very direct and tangible
impacts on the lives of the workers affected and their families. Significant increases in minimum
wages have proven an effective strategy for addressing declining wages and opportunity for low-
wage workers by raising pay broadly across the bottom of the city economy. For example, over the
decade that San Francisco's strong minimum wage has been in effect, it has raised pay by more than
$1.2 billion for more than 55,000 workers, and it has permanently raised citywide pay rates for the
bottom 10 percent of the labor force.le The widely recognized success of San Francisco's minimum
wage led Mayor Ed Lee to broker an agreement with business and labor to place an increase to $15
on the November 2014 ballot, which the voters overwhelmingly approved.
The higher pay resulting from minimum wage increases translates to a range of other important
improvements in the lives of struggling low-paid workers and their households. For workers with
the very lowest incomes, studies show that minimum wage increases lift workers and their families
out of poverty.zo Similarly, higher incomes for low-wage workers and their households translate to
improved educational attainment and health. For example, a recent study by the National Institutes
of Health determined that "[a]n additional $4000 per year for the poorest households increases
educational attainment by one year at age 2L."21 Another study found that raising California's
minimum wage to $1-3 per hour by 20L7 "would significantly benefit health and well-being."zz 1,
stated that "Californians would experience fewer chronic diseases and disabilities; less hunger,
smoking and obesity; and lower rates of depression and bipolar illness."23 Moreover, "[i]n the long
run, raising the minimum wage would prevent the premature deaths of hundreds of lower-income
Californians each year."z4 Yet another study found that high dropout rates among low-income
children can be linked to parents' low-wage jobs and that youth in low-income families have a
greater likelihood of experiencing health problems.zs
The Most Rigorous Research Shows That Higher Minimum Wages Raise Worker Incomes
without Reducing Employment
The most rigorous research over the past 2 0 years-examining scores of state and local minimum
wage increases across the U.S,-demonstrates that these increases have raised workers' incomes
without reducing employment. This substantial weight of scholarly evidence reflects a significant
shift in the views of the economics profession, away from a former view that higher minimum
wages cost jobs. As Bloomberg News summarized in 2072:
[A] wave of new economic research is disproving those arguments
about job losses and youth employment. Previous studies tended not
to control for regional economic trends that were already affecting
employment levels, such as a manufacturing-dependent state that
was shedding jobs. The new research looks at micro-level
employment patterns for a more accurate employment picture. The
studies find minimum-wage increases even provide an economic
118
boost, albeit a small one, as strapped workers immediately spend
their raises.zo
The most sophisticated of the new wave of minimum wage studies, "Minimum Wage Effects Across
State Borders," was published in 2010 by economists at the Universities of California,
Massachusetts, and North Carolina in the prestigious Review of Economics and Statistics.zT That
study carefully analyzed minimum wage impacts across state borders by comparing employment
patterns in more than 250 pairs of neighboring counties in the U.S. that had different minimum
wage rates between 1990 and 2006. The study's innovative approach of comparing neighboring
counties on either side of a state line is generally recognized as especially effective at isolating the
true impact of minimum wage differences, since neighboring counties otherwise tend to have very
similar economic conditions, and the study has been lauded as state-of-the-art by the nation's top
labor economists, such as Harvard's Lawrence Katz, MIT's David Autor, and MIT's Michael
Greenstone. (By contrast, studies often cited by the opponents of raising the minimum wage that
compare one state to another-and especially those comparing states in different regions of the
U.S.-cannot as effectively isolate the impact of the minimum wage, because different states face
different economic conditions, of which varying minimum wage rates is but one.)
Consistent with a long line of similar research, the Dube, Lester, and Reich study found no
difference in job growth rates in the data from the 250 pairs of neighboring counties-such as
Washington State's Spokane County compared with Idaho's Kootenai County where the minimum
wage was substantially Iower-and found no evidence that higher minimum wages harmed states'
competitiveness by pushing businesses across the state line.28
However, it is not simply individual state-of-the-art studies, but the whole body of the most
rigorous modern research on the minimum wage that now indicates that higher minimum wages
have had little impact on employment levels. This is most clearly demonstrated by several recent
"meta-studies" surveying research in the field. For example, a meta-study of 64 studies of the
impactof minimumwageincreasespublishedinthe BritishJournalof IndustrialRelationsin2009
shows that the bulk of the studies find close to no impact on employment.2e This is vividly
illustrated by a graph from the meta-study showing the results clustered around zero:
Funnel Graph of Estimated
Minimum Wage Effects (n=1,492)
350
3OO l
250
l
200'
150
100
50
o -20 -r.5
o
ul.E'
o
=tc|!
tn
r{
i
III
IIl-
0510-10 -5
Sour(e: Dou(oufiaSos .nd Stilley (2009)Elasticity
119
Another recent meta-study by Paul Wolfson and Dale Belman of the minimum wage literature
demonstrates similar results.3o
Further underscoring how minimum wage increases are simply not a major factor affecting job
growth, economists at the Center for Economic & Policy Research and Goldman Sachs have noted
that the U.S. states that have raised their minimum wages above the minimal federal level are
enjoying stronger job growth than those that have not.31
The Evidence from Cities, in Particula1 That Have Adopted Significantly Higher Local
Minimum Wages Similarly Shows That They Have Not Cost fobs and That Implementation
Has Proven Manageable for Employers
The experiences of cities with higher local minimum wages-and the most rigorous economic
research on the impact of city wage laws-have shown that they have raised wages broadly without
slowing job growth or hurting local employers.
The two U.S. cities that have had higher local minimum wages for the longest period are San
Francisco, California, and Santa Fe, New Mexico. Both adopted significantly higher local minimum
wages in 2003 and the impact of the minimum wages has been the subject of sophisticated
economic impact studies, In San Francisco, a2007 study by University of California researchers
gathered employment and hours data from restaurants in San Francisco as well as from
surrounding counties that were not covered by the higher minimum wage and found that the
higher wage had not led San Francisco employers to reduce either their employment levels or
employee hours worked. 32 A follow-up 2014 study examined the combined impact on San
Francisco employers of the city's minimum wage ordinance and of other city compensation
mandates that cumulatively raised employment costs B0 percent above the level of the federal
minimum wage. The study again found no adverse effect on employment levels or hours, and found
that food service jobs-the sector most heavily affected-actually grew about 17 percent faster in
San Francisco than in surrounding counties during that period.33
In Santa Fe, a similar 2006 study conducted after the city raised its minimum wage 65 percent
above the state rate compared job growth in Santa Fe with that in Albuquerque [which at that time
did not have a higher city minimum wage). It determined that "[o]verall, . . . the living wage had no
discernible impact on employment per firm, and that Santa Fe actually did better than Albuquerque
in terms of employment changes."34
A sophisticated 2011 study of higher minimum wages in San Francisco, Santa Fe, and Washington,
D.C., compared employment impacts to control groups in surrounding suburbs and cities, It
similarly found that "[t]he results for fast food, food services, retail, and low-wage establishments . .
. support the view that citywide minimum wages can raise the earnings of low-wage workers,
without a discernible impact on their employment. . . ."3s
In addition, the actual experiences of cities that have recently raised the minimum wage at the local
level have shown that such increases have been manageable. For example, in San fose, California,
business groups made similar predictions before voters in2012 approved raising the city's minimum
wage. But the actual results did not bear out those fears. As the Wall StreetJournal reported, "[flast-
food hiring in the region accelerated once the higher wage was in place. By early 120741, the pace of
employment gains in the San f ose area beat the improvement in the entire state of California."a5 U.5i4
120
Today similarly found, "[i]nterviews with San f ose workers, businesses and industry officials show
[the city minimum wage] has improved the lives of affected employees while imposing minimal costs
on employers."3z
The same pattern of dire predictions followed by manageable real world implementation was
repeated when SeaTac, Washington, phased in its $L5 minimum wage-the nation's first at that
level. As The Seattle Times reported, "[f]or all the political uproar it caused, SeaTac's closely
watched experiment with a $15 minimum wage has not created a large chain reaction of lost jobs
and higher prices . . . ."38 The Washington Post similarly reported that "[t]hose who opposed the $15
wage in SeaTac and Seattle admit that there has been no calamity so far," and highlighted how even
though Tom Douglas, a Seattle restauranteur, stated in April 2014 thata $15 wage could "'be the
most serious threat to our ability to compete"' and that he "'would lose maybe a quarter of the
restaurants in town,"' as of September 2074, he had opened, or announced, five new restaurants
that year.re
In Seattle, while many business owners supported the increase, other business owners predicted that
increasing the city's minimum wage to $15 would lead to dramatic job losses for restaurants and
strain on small businesses. An article by the Puget Sound Business Journal reported in October 2015
that the restaurant business in Seattle is, in fact, booming.+o More recent reports confirm that neither
the city's economy nor the restaurant industry has suffered.al A few months after Seattle began
phasing in its minimum wage, the region's unemployment rate hit an eight-year low of 3.6 percent,
significantly lower than the state unemployment rate of 5.3 percent.a2 Since Seattle passed its
trailblazing $15 minimum wage, the number of food services and beverage industry business licenses
issued in the city has increased by 6 percent.43
Low Wages Paid By Large Profitable Employers Present a Significant Cost to the Public by
Forcing Workers to Rely on Public Assistance in Order to Afford Basic Necessities
Nationally, nearly three quarters (73 percent) of enrollments in America's major public benefits
programs are from working families. With wages that leave their earnings below subsistence
levels, these workers must rely on additional support from programs like the Supplemental
Nutrition Assistance Program (SNAP), Medicaid, Children's Health Insurance Programs, and the
Earned Income Tax Credit IEITC) in order to afford basics like food, housing, and health care.
Data available for some of the largest employers in the retail and fast-food industries indicate that
the low wages paid by profitable companies like Walmart and McDonald's entail substantial costs
for the public, as a whole.
A 201.3 report from the Democratic Staff of the U.S. House Committee on Education and the
Workforce estimates that low wages paid at a single Walmart supercenter cost taxpayers between
$900,000 and $1.7 million on average per year,aa
Similarly, a 2013 study from the University of California-Berkeley found that the low wages paid by
companies in the fast-food industry cost taxpayers an average of $7 billion per year.as A companion
study from NELP found that the bulk ofthese costs stem from the ten largest fast-food chains,
which account for an estimated $3.9 billion per year in public costs.a6
121
Thank you so much for the opportunity to testify today. I would be happy to answer any questions
that you may have.
For more information, please contact NELP Staff Attorney Laura Huizar at lhuizar@nelp.org. For
more about NELP, visit www.nelp.org or www.raisetheminimumwage.org.
1 National Employment Law Project, City Minimum Wage Laws: Recent Trends and Economic Evidence (Apr.
2076), available athttpt / /www.nelp.org/content/uploads/City-Minimum-Wage-Laws-Recent-Trends-
Economic-Evidence.pdf; Raise the Minimum Wage, Local Minimum Wage Laws and Current Campaigns,
http: / /v'rv,rw.raisetheminimumwage.com/pages/local-minimum-wage (last viewed lun. L,201,6).
2 Raise the Minimum Wage, Campaigns, http://www.raisetheminimumwage.comf pagesf campaigns/ (last
viewed May 31, 20t6).
3 Economic Policy Institute, Family Budget Map, http://www.epi.org/resources/budget/budget-map/ (last
viewed May 31, 201,6).
a Economic Policy Institute, Family Budget Calculator, http:/ /v'rww.epi.org/resources/budget/ (last viewed
May 31, 2016).
s Id.
6 National Employment Law Project, Occupational Wage Declines Since the Great Recession (Sept. 2015),
available athttpt//www.nelp.org/content/uploads/Occupational-Wage-Declines-Since-the-Great-
Recession.pdf.
7 Id.
B National Employment Law Project, An Unbalanced Recovery: Real Wage and lob Growth Trends (Aug.
2014), avqilable ot https://www.nelp.orglcontent/uploa ds/2015 /03 /Unbalanced-Recovery-Real-Wage-)ob-
G rowth- T rends -Au gu st- 2 0 1 4. p df.
e National Employment Law Projec! Fight for $15 Impact Report Raises for 17 Million Workers, 10 Million
Going to $15 (Apr. 2076), available athttp:/ /vrww.nelp.org/content/uploads/NELP-Fact-Sheet-Fight-for-15-
Impact-Report.pdf.
10 Id.
t1 Id.
12 Raise the Minimum Wage, $15 Laws & Current Campaigns, http://raisetheminimumwage.org/pages/L5-
Laws-Current-Campaigns (last viewed May 26, 2016).
13 Id.
1+ Id.
ls Id.
16 Hart Research, Support for a Federal Minimum Wage of $12.50 or above (Jan. 2015), available at
http://v,rv,rw.nelp.org/content/uploads /201,5/03/Minimum-Wage-Poll-Memo-fan-2015.pdf.
17 Victoria Research, Results of National Poll of Workers Paid Less than $15 Per Hour (Oct. 20LS), available at
http://www.nelp.org/content/uploads/Low-Wage-Worker-Survey-Memo-0ctober-2015.pdf.
18 Id.
1e Michael Reich et al (eds.), University of California Press, When Mandates Work: Raising Labor Standards at
the Local Level (2014), qvqilqble athttp://irle.berkeley.edu/publications/when-mandates-work/.
20 Arindra;'it Dube, Minimum Wages and the Distribution of Family Incomes (Dec. 2013) at3L, avqilable at
https://dl.dropboxusercontent.com/u/15038936/Dube-MinimumWagesFamilylncomes.pdf ("1 find robust
evidence that minimum wages tend to reduce the incidence of poverty, and also proportions with incomes
under one-half or three-quarters of the poverty line"J.
21 William Copeland & Elizabeth f. Costello, Am. Econ. I.Appl. Econ., Parents' Incomes and Children's
Outcomes: A Quasi-Experiment (Jan. 2010) at 1.
122
22 Rajiv Bhatia, Human Impact Partners, Health Impacts of Raising California's Minimum Wage (May 2014) at
3, available athttp:/ /healthpolicy.ucla.edu/publications/Docum ents/PDF /2014/SB935-HealthAnalysis.pdf.
23 Id.
24 Id.
2s Lisa Dodson & Randy Albelda, Center for Social Policy, Univ. of Mass., Boston, How Youth Are Put at Risk by
Parents'Low-Wage Jobs (Fall 2072) at9-13.
26 Editorial Board, "Raise the Minimum Wage," BloombergView (Apr. 1,8,2072), available at
http://www.bloomberg.com/news/20L2-04-76/u-s-minimum-wage-lower-than-in-lbj-era-needs-a-
raise.html.
27 Arindrajit Dube et al, The Review of Economics and Statistics, Minimum Wage Effects Across State Borders:
EstimatesUsingContiguousCounties(Nov.2010Jat92(4):945-964. Asummaryofthestudypreparedby
NELP is available at http://nelp.3cdn.net/98b449fce61fca7d43_j1-m6iizwd.pdl
28 Similar, sophisticated new research has also focused in particular on teen workers-a very small segment
of the low-wage workforce affected by minimum wage increases, but one that is presumed to be especially
vulnerabletodisplacementbecauseoftheirlackofjobtenureandexperience. However,theresearchhas
similarly found no evidence that minimum wage increases in the U.S. in recent years have had any adverse
effect on teen employment. See Sylvia Allegretto et al, Industrial Relations, Do Minimum Wages Reduce Teen
Employment? (Apr. 20tl) atvol. 50, no. 2. A NELP Summary is available at
http : //nelp. 3 cdn.net/eb5 d f32f3af 67 ae9 1b_65 m6iv7 eb.pdf.
2e Hristos Doucouliagos & T.D. Stanley, British J. of Indus. Relations, Publication Selection Bias in Minimum-
Wage Research? A Meta-Regression Analysis (May 2009) atYol.47,lss.2.
30 Paul Wolfson & Dale Belman, Upjohn Inst. for Employ. Res., What Does the Minimum Wage Do? (2074).
31 Center for Economic & Policy Research, 2074 lob Creation Faster in States that Raised the Minimum Wage
()une 2014), available athttp //www.cepr.net/index.php/blogs/cepr-blog/2014-job-creation-in-states-that-
raised-the- minimum-wage.
32 Michael Reich et al, Univ. of Calif.-Berkeley, The Economic Effects of a Citywide Minimum Wage (2007),
avqilable athttp:/ /v'rww.irle.berkeley.edu/cwed/wp/economicimpacts_07.pdf.
33 Michael Reich et al (eds.J, Univ. of Calif. Press, "When Mandates Work: Raising Labor Standards at the Local
Level," {2074) at37, available othttp:/ /irle.berkeley.edu/publications/when-mandates-work/ . See also
Susan Berfield, San Francisco's Higher Minimum Wage Hasn't Hurt the Economy, BloombergBusiness (fan.
2074), available athttp:/ /vvvvw.businessweek.com/articles/20L4-01-22/san-franciscos-higher-minimum-
wage-hasnt-hurt-the-economy; Carolyn Lochhead, S.F. praised as model for U.S. on increasing minimum
wage, Jan. 28,20t4, SF Gate, available athttp:/ /www.sfgate.com/politics/article/S-F-praised-as-model-for-U-
S-on-increasing-5 18 3 3 78.php.
3a Bureau of Business and Economic Research, University of New Mexico, Measuring the Employment Impacts
of the Living Wage Ordinance in Santa Fe, New Mexico [June 2006), qvailable at
http ://bber.unm.edu/pubs/EmploymentlivingWageAnalysis.pdf.
:s;ohn Schmitt & David Rosnick, Center for Econ. & Policy Research, The Wage and Employment Impact of
Minimum-Wage Laws in Three Cities (Mar. 2011) at 'J., availoble at
http:/ /www.cepr.net/documents/publications/min-wage-2011-03.pdf. For a helpful overview of this
literature on the impact of city minimum wages, see Michael Reich et al, Local Minimum Wage Laws: Impacts
on Workers, Families and Businesses: Report prepared for the Seattle Income Inequality Advisory Committee
(Mar. 2014) at 17 -79, available athttpt/ /murray.seattle.gov/wp-content/uploads/2 074 /03 /Uc-Berkeley-
I IAC - Rep ort- 3 -20 - 20 | 4.pdf .
36Eric Morath, rvVhat Happened to Fast-Food Workers When San Jose Raised the Minimum Wage?, Apr. 9,
2015, Wall Street lournal, avqilable athttp: / /blogs.wsj.com/economics/20 U /0a /09 /what-happened-to-fast-
food-workers-when- san- jose-raised-the-minimum-wage/.
37 Paul Davidson, In San fose, higher minimum wage pays benefits, lun. 14, 2075, USA Todoy, qvqilable at
http://www.usatoday.com/story/money/business/2 074 /06/74 /minimum-wage-san-1'ose/9968679 /.
38 Amy Martinez, $15 wage floor slowly takes hold in SeaTac, Jun.3,2014, The Seattle Times, avqilable at
http://seattletimes.com/html/localnews/2022905775_seatacproplxml.html.
3e Dana Milbank, "Raising the minimum wage without raising havoc," Sept. 5, 20L4, The Woshington Post,
available athltps: / /www.washingtonpost.com/opinions/dana-milbank-no-calamity-yet-as-seatac-wash-
adjusts-to-15-minimum-wage/2014 /09 /05 /d1,2ba922-3503-tte4-9e92-0899b306bbea_story.html.
123
40 Ieanine Stewart, Apocalypse Not: $15 and the cuts that never came, Oct.23,2075, Puget Sound Business
Journal, available athttpt / /www.bizjournals.com/seattle/print-edition/2075 /1-0 /23/apocolypse-not-15-
and-the-cuts-that-never-came.html.
a1 Blanca Torres, A year in, 'the sky is not falling' from Seattle's minimum-wage hike, Mar. 31, 2016, The
Seattle Times, available athttp:/ /wvvw.seattletimes.com/business/economy f a-year-in-the-sky-is-not-falling-
from-s eattles-minimum-wage-hike/.
a2 Coral Garnick, Seattle jobless rate hits 8-year low in August, Sept. L6,2015, The Seattle Times, qvailable qt
http:/ /v'rv'rw.seattletimes.com/business/local-business/state-jobless-rate-stays-steady-at-53-percent-in-
august/.
a3 National Employment Law Pro;'ect, The Case for Eliminating the Tipped Minimum Wage in Washington, D.C.
(May 2076), available athttq / /nelp.org/content/uploads/Report-Case-Eliminating-Tipped-Minimum-Wage-
Washington-DC.pdf.
aaDemocratic staff of the U.S. House Committee on Education and the Workforce, The Low-Wage Drag on Our
Economy: Wal-Mart's low wages and their effect on taxpayers and economic growth (May 2013), qvqilable at
http://democrats-edworkforce.house.gov/imo/media/doc/WalMartReport-M ay2073.pdf.
as Sylvia Allegretto et al, Fast Food, Poverty Wages: The Public Cost of Low-Wage Jobs in the Fast-Food
Industry (Oct. 20 1 3), ovailable athttp: / /laborcenter.berkeley.edu/publiccosts/fast_food_poverty_wages.pdf
a6 National Employment Law Project Super-sizing Public Costs: How Low Wages at Top Fast-Food Chains
Leave Taxpayers Footing the Bill (Oct. 2013), availqble qt
http: / /vvv'rw.nelp.org/content/uploads /201,5 /03 /NELP-Super-Sizing-Public-Costs-Fast-Food-Report.pdf.
10
124
125
126
127
Psqfr'= rE rn co
E = =3s
n
-c;E iH
= =io;i hs
p8,!E'= ro oo rn'=
=
N N
b - .f,> {r>
t-
=-c(J." S=N=ln$
= oo' 6i& aa
a hooraoil - 6e r\(u
=-.=+GiE -=SSeTt
=.C(JF{ti
=Xf Ft f!
= oF-, rn <if\r {-rI {.4
ps.EA
tr:>S==o -J > 1r> <-i
=s(J
2 E B $
= doo'& sa
gE
EE
F{N
sf
FloN
g
r|o}r{oN
c
.9
.=.^o
CL
Eo(J
=o
oIA
=o
lt
aaoPG
E*,.5
IrJ
u0tr
5rFo
PtioI
->L
o
E'g
(E
(E
=trtr
Pg
=o(J
o!,oo.l
E
.g
=
128
129
130
131
t,L
.s
€
t
()
E\I
lf
l-oN
I
B
C!}
F
3
:E
l-.Eta
IIJ
s{J
fi,E
.,4
,cI.h(f
oo
rtr
E
Et-ff
o
EDfi
E
Eq
l-
E
tr$EftE
* H $Hfg$g
fil
(E}
F.
ts
w
rpfil
ff)
-dF
m
(D
c\rq.
$)
lft
Idr
(s
(/)
rn
aLf!
Er
#,
t\l
{D
€]
l1l
f\I
C\l(}'l
S*
{f}
SlI
g)
(o
(\I(f,ffi
{o
(f,
c+rr
.xEoFr0 fi=sg*E"i{
$Jr)q
(o
cE)
ffiq
$
tfl
t\lLq
{}
€A
rq(!{
sq
(I}
Cf,}
€(}{f
6
{#}
.f,
{oq
trI
+#
('f)
ry
q
s}slmi!r
c#t
E6)$t
6i
cf}
\L'
tr.'-
CV
,IJ
{E(t
roI
q
CDr\q(\!
(fl
ELJ
(o
f',1
{n
(o
r}J
r$
$r
(/)
("\{
r.*f\{
r$'(\
m
ftt'riftr)
.f)fiI
r,/,
(\l
rn
{f
f,{
tn
ffi
fis(v
(/l
(s(u
@o(+
(f'
f-tfrta
ff)
{f}
\c'
fitftr
c
{E
-g
fl)
{
rEt)
LF{
t.rl lsl
Clr
(q1f{l
l
l
l
I
l
$)l
o()
{o
rt]f1
(Il
to1\r?
!t
C{
(fl
IIf,lfl
(f)
rf,cv
tfl
6
ffi
rJf\l
{/}
d+fit
i-Jf\l
r.o
ffilL-
TLr\t
w
u)ol
o).
CO
C\I
r,f,
(t
co
FJst
u)
G\
(\l
o
F
E
t*.lf,
r.(}
g}
c\I
(*l
{}
o.)toorj
r#
*
tf}q
rfrl
EA
cor\
f.rrlfr]
rs
6
6
,f)
{v)
rfl
g\
t.
(0
(fl
tf}
gI(e(Il
l--ffl
c#l
:fs!
nq.
s)
(f,}
€s
cn1lr
[*(ro
r#
(I}
$r
g
L
{t)
,il,
{Jfitr
6E
E}r
[o6frr-
o(t|(nr
6s6lr
o€ct$t
FEo$t
s
C}
CIfl
cl
o.\l
rtFo{il
r(r
#
$Tsdql
o
EIg
rs
J_(J
s
132
133
134
135
136
137
138
coro
CJz
!
iiIiIi*E'EEE*E*iEEiIEiIEEiliiiiiiii*
ii**iss
iE EE+EI iiiiliiiii EiEII Ei
giiEiIiEEIIiiiEEe
EiEgiEis
@(,
-1clE
ITJ IIJtrtI
=9<E5f-o-*u-t-r 6i'lb9
o
I
Uzr
(n
f r"lz
e*
eci-=
p=
==
139
140
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Accepting The Findings And
Recommendation Of The City Manager ln Declaring An Emergency Pursuant To Subsection 287.055(9)(C)(6XAX1),
Florida Statutes, All As More Specifically Set Forth ln This Resolution And The Accompanying Memorandum; And As
Permitted Pursuant To Section 2-367(E) Of The City Code, Waiving, By 517 Vote Of The City Commission, The
Competitive Bidding Requirement, Finding Such WaiverTo Be ln The City Best lnterest; Further, Authorizing The City
Manager To Take The Following Actions To Procure The Necessary Services Under The Change Order No. 8;
Approving And Authorizing The Mayor And City Clerk To Execute Change Order No. 8, ln The Amount Of $2,688,006,
To Design-Build Contract (DBV) With Bergeron Land Development, lnc., Dated April 30,2014 (The Agreement),
Related To The Completion Of Roadway lmprovements Along West Avenue Between 6th And 8th Streets, And 1Oth,
14th, And 17th Streets, West Of Alton Road; Said Change Order No. 8, Providing ForAn Addition To The Scope Of
Work To lnclude: Contaminated Soil Disposal, Street Lighting Adjustments, Roadway Adjustments, Additional Gravity
Walls And Sidewalks, Drainage For Harmonization, Park Driveways, Landscaping, Re-Writing Lighting Specifications,
Paintino Of F , And Associated Perm
lntended Outcome Su
Item S ummary/Recommendation :
At its March 14,2OO7 meeting, the City Commission adopted the "Basis of Design Report" (BODR) for the West Avenue - Bay
Road Neighborhood right of way improvement project. The BODR improvements included road reconstruction, sidewalks and
bicycle circulation, installation of stormwater drainage systems, upgrade to the water distribution system, landscaping, street
parking, and street calming features.
On February 12,2O14, the City Commission based upon the BODR, was awarded pursuantto subsection 287.055(9)(c)(6XaX1),
Florida Statute, an emergency procurement of a Design Build Contract (DBC) to Bergeron Land Development, lnc., which DBC was
executed on dated April 30, 2014 (the Agreement) to construct stormwater drainage pump stations at 6'n, 10'n and 14'n Streets.
Thereafter, over the past two years, the City Commission approved seven (7) additional Change Orders to the DBC, in order to
include improvements to the West Avenue Neighborhood at'the following rigtris-ot-way: West Airenue from 6th to 8th Streets; 14th,
10'n and 6'n Streets from Alton Road to the bay; 17th street from Alton Road to Collins Canal; West Avenue from Lincoln Road to
Collins Canal; and the construction of a new pump station at the intersection of 17th Street and West Avenue.
Change Order No. 8 proposes to include the following additional scope of work:
. Removal and disposal of contaminated soii. Street lighting adjustments;o Roadway elevation adjustments;. Additional gravity walls and sidewalks;. New drainage for harmonization;r Landscaping maintenance plan, landscaping and sidewalks;r Park driveways;o Re-writing of City Ordinance and Specifications for Street Lighting;o Permitting for Stantec (subcontractor engineering services); and. Painting of the Alton Fly Over.
As part of the existing scope of work Bergeron has uncovered contaminated soils, the removal which exceeds the budget for this
work on West Avenue due to DERM requiring a special method of disposal for the material, which is not within the scope of work
already authorized under the prior Change Orders. Another portion of the work contemplated under Change Order No. 8, is to be
provided to Stantec for their support to the work associated with the permitting and disposal of dewatering by other means than the
sanitary sewer. At the request of the City Administration, Stantec and Bergeron have retained a special consultant shall provide
direction relating to DERM's dewatering requirements, which consultant services were not considered in prior change orders,
therefore, the costs associated with the retention of the consultant are included in this Change Order No. 8. An additional reason
for Change Order No. 8, is due to the City's changing light standards, that the City Commission subsequently adopted after the
prior change orders were issued, and the lighting change would be consistent with the City Commission direction. Finally, Change
Order No. 8, would allow for harmonization that of the street elevations for access of adjacent owners of the right of way, which
harmonization was not within the scope of prior change orders.
Change Order No. 8 is being requested to complete the current West Avenue Neighborhood lmprovements and the cost is
estimated at $2,688,006; which includes a 10% owner's contingency in the amount of $244,364. Based upon the foregoing, the
City Manager declares an emergency pursuant to subsection 287.055(9)(cX6Xa)(t ), Florida Statutes. The City Manager and the
Administration, pursuant to section 2-367(e) of the City Code, seek the City Commission's waiver, by 5/7 vote, of competitive
bidding requirement, as it is in the city best interest to waive the requirements due to the foregoing reasons.
THE ADMINISTRATION RECOMMENDS THAT THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA ACCEPT THE RECOMMENDATION AND FINDINGS OF THE CITY MANAGER IN DECLARING AN EMERGENCY
PURSUANT TO SUBSECTTON 287.055(9XCX6XAX1), FLORTDA STATUTES, AND AS PERMTTTED PURSUANT TO SECTTON
2-367(El OF THE C|TY GODE, WA,|V|NG, BY 5t7 VOTE OF THE CITY COMMISSION, THE COMPETTTTVE B|DDING
FINDING SUCH WAIVER TO BE lN THE CITY'S BEST INTEREST; FURTHER, AUTHORIZING THE CITY
R1 R
dP An IAAn IrIFACH Aoenda ltem n t
Date@lC-141
MANAGER TO TAKE THE FOLLOWING ACTIONS TO PROCURE THE NECESSARY SERVICES UNDER THE CHANGE
ORDER NO.8.
Board Recommendation:
Financaal ln n:
Source of ,/,Funds: /tl).,'
Amount Account ,Approved
1 $806,402 Storm water line of credit tU
2
Total
rct Summi lry:
Neighborhoods Fund 384- Subject to
Capital Budget Amendment
c s Offic ;e Leoislat ive Trackin
Siqn-Offs:
Department DirBctor Assistant C)iE Manaqer Gity ll lnaqerJJFK{ETC FI'JLM A
V016Uune\PUBLIC WORKS\Bergeron CO No 4..Summaryupdated.docT:\AGENDA
142
MIAMIBEACH
Cityof Miomi Beoch, lZ00 Convention Center Drive, Miomi Beoch, Florido 33,139, www.miomibeochfl.gov
COMMISSIO
To: Mayor Philip Levine and Members of City
FRoM: Jimmy L. Morales, City Manager
DATE: June 8, 2016
SUBJECT: A RESOLUTION OF THE MA
FUNDING
Amount
$806,402
$1,881,604
$2,688,006
AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE FINDINGS AND RECOMMENDATION
OF THE CITY MANAGER IN DECLARING AN EMERGENCY PURSUANT TO
SUBSEcTION 287.055(9)(c)(6)(a)(1), FLORIDA STATUTES, ALL AS MORE
SPECIFICALLY SET FORTH IN THIS RESOLUTION AND THE ACCOMPANYING
MEMORANDUM; AND AS PERMITTED PURSUANT TO SECTION 2-367(e) OF THE
CITY CODE, WAIVING, BY 517 VOTE OF THE CIry COMMISSION, THE
COMPETITIVE BIDDING REQUIREMENT, FINDING SUGH WAIVER TO BE IN THE
CITY BEST INTEREST; FURTHER, AUTHORIZING THE CITY MANAGER TO TAKE
THE FOLLOWING ACTIONS TO PROCURE THE NECESSARY SERVICES UNDER
THE CHANGE ORDER NO. 8; APPROVING AND AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE CHANGE ORDER NO. 8, IN THE AMOUNT OF
$2,688,006, TO DESIGN-BUILD CONTRACT (DBC) WITH BERGERON LAND
DEVELOPMENT, tNC., DATED APRIL 30,2014 (THE AGREEMENT), RELATED TO
THE COMPLETION OF ROADWAY IMPROVEMENTS ALONG WEST AVENUE
BETWEEN 6TH AND 8TH STREETS, AND 1OTH, 14TH, AND 17TH STREETS,
WEST OF ALTON ROAD; SAID CHANGE ORDER NO. 8, PROVIDING FOR AN
ADDITION TO THE SCOPE OF WORK TO INCLUDE: CONTAMINATED SOIL
DISPOSAL, STREET LIGHTING ADJUSTMENTS, ROADWAY ADJUSTMENTS,
ADDITIONAL GRAVITY WALLS AND SIDEWALKS, DRAINAGE FOR
HARMONIZATION, PARK DRIVEWAYS, LANDSCAPING, RE-WRITING LIGHTING
SPECIFICATIONS, PAINTING OF FLY.OVER, AND ASSOCIATED PERMITTING.
Description
Storm water line of credit
neighborhoods Fund 384- Subject to Capital Budget Amendment
MEMORANDUM
143
Commission Memorandum - Bergeron Design-Built Agreement With Bergeron Land Development, lnc.
Page2
BACKGROUND
At its March 14, 2007 meeting, the City Commission adopted the "Basis of Design Report"
(BODR) for the West Avenue - Bay Road Neighborhood right of way improvement project. The
BODR improvements included road reconstruction, sidewalks and bicycle circulation, installation
of stormwater drainage systems, upgrade to the water distribution system, landscaping, street
parking, and street calming features.
On February 12, 2014, the City Commission based upon the BODR, was awarded pursuant to
subsection 287.055(9)(cXOXaXl), Florida Statute, an emergency procurement of a Design Build
Contract (DBC) to Bergeron Land Development, lnc., which DBC was executed on dated April
gO,2014 (the Agreement) to construct stormwater drainage pump stations at 6th, 1Oth and 14th
Streets. Thereafter, over the past two years, the City Commission approved seven (7)
additional Change Orders to the DBC, in order to include improvements to the West Avenue
NeighborhooO at ttre following rights-of-way: West Avenue from 6th to 8th Streets; 14th, 1Oth and
6th Streets from Alton Road to the bay; 17th street from Alton Road to Collins Canal; West
Avenue from Lincoln Road to Collins Canal; and the construction of a new pump station at the
intersection of 17th Street and West Avenue.
Change Order No. 8 proposes to include the following additional scope of work:
. Removal and disposal of contaminated soil;. Street lighting adjustments;
o Roadway elevation adjustments;. Additional gravity walls and sidewalks;. New drainage for harmonization;
o Landscaping maintenance plan, landscaping and sidewalks;
. Park driveways;. Re-writing of City Ordinance and Specifications for Street Lighting;
o Permitting for Stantec (subcontractor engineering services); and
o Painting of the Alton Fly Over.
As part of the existing scope of work Bergeron has uncovered contaminated soils, the removal
which exceeds the budget for this work on West Avenue due to DERM requiring a special
method of disposal for the material, which is not within the scope of work already authorized
under the prior Change Orders. Another portion of the work contemplated under Change Order
No. 8, is to be provided to Stantec for their support to the work associated with the permitting
and disposal of dewatering by other means than the sanitary sewer. At the request of the City
Administration, Stantec and Bergeron have retained a special consultant shall provide direction
relating to DERM's dewatering requirements, which consultant services were not considered in
prior change orders, therefore, the costs associated with the retention of the consultant are
included in this Change Order No. 8. An additional reason for Change Order No. 8, is due to
the City's changing light standards, that the City Commission subsequently adopted after the
prior change orders were issued, and the lighting change would be consistent with the City
Commission direction. Finally, Change Order No. 8, would allow for harmonization that of the
street elevations for access of adjacent owners of the right of way, which harmonization was not
within the scope of prior change orders.
144
Commission Memorandum - Bergeron
June 08, 2016
Page 3
Change Order No. 8 is being requested to complete the current West Avenue Neighborhood
lmprovements and the cost is estimated at $2,688,006; which includes a 10% owner's
contingency in the amount of $244,364.
Based upon the foregoing, the City Manager declares an emergency pursuant to subsection
287.055(9)(cXO)(a)(1), Florida Statutes. The City Manager and the Administration, pursuant to
section 2-367(e) of the City Code, seek the City Commission's waiver, by 5i7 vote, of
competitive bidding requirement, as it is in the city best interest to waive the requirements due
to the foregoing reasons.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida accept the recommendation and findings of the City Manager in declaring an
emergency pursuant to Subsection 287.055(9)(c)(6)(a)(1), Florida Statutes, and as permitted
pursuant to Section 2-367(e) of the City Code, waiving, by 517 vote of the City Commission, the
competitive bidding requirement, finding such waiver to be in the City's best interest; further,
authorizing the City Manager to take the following actions to procure the necessary services
under the change order no. 8.
JLM / W,aerta gffiee
145
RESOLUTION NO.
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAM! BEACH, FLORIDA, ACCEPTING THE FINDINGS AND
RECOMMENDATION OF THE CITY MANAGER IN CERTIFYING AN
EMERGENcY PURSUANT To SUBSECTIoN 287.05s(9)(c)(6)(a)(1),
FLORIDA STATUTES, ALL AS MORE SPECIFICALLY SET FORTH IN THIS
RESOLUTION AND THE ACCOMPANYING MEMORANDUM; AND AS
PERMITTED PURSUANT TO SECTION 2-367(e) OF THE CITY CODE,
WAIVING, BY 517 VOTE OF THE CITY COMMISSION, THE COMPETITIVE
BIDDING REQUIREMENT, FINDING SUCH WAIVER TO BE IN THE CIry'S
BEST INTEREST; FURTHER, APPROVING AND AUTHORIZING THE
MAYOR AND CITY CLERK TO EXECUTE CHANGE ORDER NO. 8, IN THE
AMOUNT OF $2,688,006, TO DESTGN-BUILD CONTRACT (DBC) W|TH
BERGERON LAND DEVELOPMENT, tNC., DATED APRTL 30, 2014 (THE
AGREEMENT), RELATED TO THE COMPLETTON OF ROADWAY
IMPROVEMENTS ALONG WEST AVENUE, BETWEEN 6TH AND 8TH
STREETS, AND 1OTH, 14TH, AND 17TH STREETS, WEST OF ALTON
ROAD; SAID CHANGE ORDER NO. 8, PROVIDING FOR AN ADDITION TO
THE SCOPE OF WORK TO INCLUDE: CONTAMINATED SOIL DISPOSAL,
STREET LIGHTING ADJUSTMENTS, ROADWAY ADJUSTMENTS,
ADDITIONAL GRAVITY WALLS AND SIDEWALKS, DRAINAGE FOR
HARMONIZATION, PARK DRIVEWAYS, LANDSCAPING, RE.WRITING
LIGHTING SPECIFICATIONS, PAINTING OF FLY-OVER, AND
ASSOCIATED PERMITTI NG.
WHEREAS, at its March 14,2007 meeting, the City Cornmission adopted the "Basis of
Design Report" (BODR) for the West Avenue - Bay Road Neighborhood Right-of-Way
lmprovement Project; and
WHEREAS, the BODR improvements included road reconstruction, sidewalks and
bicycle circulation, installation of stormwater drainage systems, upgrade to the water distribution
system, landscaping, street parking, and street calming features; and
WHEREAS, on February 12, 2014, the City Commission approved, pursuant to
subsection 287.055(9)(cXOXaXl), Florida Statutes, an emergency procurement of a Design
Build Contract (DBC) to Bergeron Land Development, lnc., which DBC was executed on dated
April 30, 2014 (the Agreement) to construct stormwater drainage pump stations at 6th, 1Oth and
14th Streets; and
WHEREAS, thereafter, over the past two years, the City Commission approved seven
(7) additional Change Orders to the DBC, in order to include improvements to the West Avenue
Neighborhood at the following right-of-ways: West Avenue from 6th to 8th Streets; 14th, 1Oth and
6th Streets from Alton Road to the Bay; 17th Street from Alton Road to Collins Canal; West
Avenue from Lincoln Road to Collins Canal; and the construction of a new pump station at the
intersection of 17th Street and West Avenue; and
146
work:
WHEREAS, Change Order No. 8 proposes to include the following additional scope of
. Removal and disposal of contaminated soil;
o Street lighting adjustments;. Roadway elevation adjustments;. Additional gravity walls and sidewalks;. New drainage for harmonization;. Landscaping maintenance plan, landscaping and sidewalks;. Park driveways;. Re-writing of City Ordinance and Specifications for Street Lighting;. Permitting for Stantec (subcontractor engineering services); and. Painting of the Alton Fly Over;
and
WHEREAS, as part of the existing scope of work Bergeron has uncovered
contaminated soils, the removal which exceeds the budget for this work on West Avenue due to
DERM requiring a special method of disposal for the material, which is not within the scope of
work already authorized under the prior change orders; and
WHEREAS, another portion of the work contemplated under Change Order No. 8, is to
be provided to Stantec for their support to the work associated with the permitting and disposal
of dewatering by other means than the sanitary sewer; and
WHEREAS, at the request of the City Administration, Stantec and Bergeron have
retained a special consultant to provide direction relating to DERM's dewatering requirements,
which consultant services were not considered in prior change orders, therefore, the costs
associated with the retention of the consultant are included in this Change Order No. 8; and
WHEREAS, an additional reason for Change Order No. 8, is due to the City's
changing light standards, that the City Commission subsequently adopted after the prior change
orders were issued, and the lighting change would be consistent with the City Commission's
direction; and
WHEREAS, finally, Change Order No. 8, would allow for harmonization of the street
elevations for access of adjacent owners of the right-of-ways, which harmonization was not
within the scope of prior change orders; and
WHEREAS, Change Order No. 8 is being requested to complete the current West
Avenue Neighborhood lmprovements and the cost is estimated at $2,688,006; which includes a
10% owner's contingency in the amounl ot $244,364; and
WHEREAS, based upon the foregoing, the City Manager certifies an emergency
pursuant to subsection 287.055(9XcXOXa)(1), Florida Statutes and
WHEREAS, the City Manager and the Administration, pursuant to Section 2-367(e) ot
the City Code, seek the City Commission's waiver, by 517 vote, of the competitive bidding
requirement, as it is in the City's best interest to waive the requirements due to the foregoing
reasons.
147
NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION
OF THE GITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby
accept the findings and recommendation of the City Manager in certifying an emergency
pursuant to subsection 287.055(9XcXOXa)(1), Florida Statutes, all as more specifically set forth
in this resolution and the accompanying memorandum; and as permitted pursuant to section 2-
367(e) of the City Code, waiving, by 517 vote of the City Commission, the competitive bidding
requirement, finding such waiver to be in the City's best interest; and approving and authorizing
the Mayor and City Clerk to execute Change Order No. 8, in the amount of $2,688,006, to
Design-Build Contract (DBC) with Bergeron Land Development, lnc., dated April 30, 2014 (the
Agreement), related to the completion of roadway improvements along West Avenue, between
6th and 8th Streets, and 1O'h, 14th, and 17th Streets, west of Alton Road; said Change Order No"
8, providing for an addition to the scope of work to include: contaminated soil disposal, street
lighting adjustments, roadway adjustments, additional gravity walls and sidewalks, drainage for
harmonization, park driveways, landscaping, re-writing lighting specifications, painting of fly-
over, and associated permitting.
PASSED and ADOPTED this
ATTEST:
day of June, 2016.
Philip Levine, Mayor
Rafael E. Granado, City Clerk
T:\AGENDA\20 1 6\June\Public Works\Bergeron. Reso.docx 4,
148