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2012-28021 Reso RESOLUTION NO. 2012-28021 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RE-AFFIRMING THE NEW LIVING WAGE RATES FOR FISCAL YEAR (FY) 2012-2013, IN ACCORDANCE WITH THE THREE YEAR "PHASE-IN" APPROVED PURSUANT TO ORDINANCE NO. 2010-3682; WITH SUCH RATES TO BE EFFECTIVE OCTOBER 1, 2012 AS FOLLOWS: $11.28 PER HOUR WITH CONTRIBUTIONS TOWARDS HEALTH BENEFITS OF AT LEAST $1.64 PER HOUR, AND $12.92 PER HOUR WITHOUT BENEFITS. WHEREAS, at its June 9, 2010 meeting, the Mayor and City Commission adopted Ordinance No. 2010-3682, which amended the City's Living Wage Ordinance (as codified in sections 2-407 thru 2-410 of the Miami Beach City Code, and herein referred to as the Ordinance); and WHEREAS, using a proposed three (3) year "phase-in" approach, the new hourly living wage rates were adopted as follows: • commencing with City Fiscal Year 2010-11 (October 1, 2010), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hr, and $11.41/hr without benefits; • commencing with City Fiscal Year 2011-12 (October 1, 2011), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits; and • commencing with City Fiscal Year 2012-13 (October 1, 2012), the hourly living rate will be $11.28/hr with health benefits of at least $1.64/hr, and $12.92/hr without benefits; and WHEREAS, effective October 1, 2012, service contractors subject to the provisions of the Ordinance shall be required to pay all employees who provide services for covered service contracts, the new living wage rates of$11.28 per hour with health benefits of at least $1.64 per hour, and $12.92 per hour without benefits; and WHEREAS, the impact of the living wage increase for fiscal year 2012-2013 is as follows: General Fund $62,000, Internal Service $9,000, Enterprise Fund $253,000, and RDA $20,000 for a Citywide approximate total of$344,000. WHEREAS, the new living wage rates apply to 16 contracts, awarded to 32 contractors which provide the City with general services and employ over 300 employees; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby re- affirms the new living wage rates for FY 2012-2013, in accordance with the three year "phase- in" approved pursuant to Ordinance No. 2010-3682; with such rates to be effective October 1, 2012 as follows: $11.28 per hour with contributions towards health benefits of at least $1.64 per hour, and $12.92 per hour without b PASSED AND ADOP tember, 2012. ATTEST. INCORP ORATED. AS TO M YO NGUAGE •'•., • �. & FOR EXECUTION CITY CLERK CH 26 W Y1 -Re I i n. x T.\AGENDA\2012\9 12 12\Re affirm Living Wag s 3 so ut o doc _ Date y Attorne lJ'" U COMMISSION ITEM SUMMARY Condensed Title: A Resolution Re-Affirming The New Living Wage Rates Effective October 1,2012, Pursuant To Living Wage Ordinance No. 2010-3682. Key Intended Outcome Supported: International Center for Innovation in Culture, Recreation and Business. Supporting Data(Surveys,Environmental Scan,etc.): 17%of business responding felt that Miami Beach was the best place to run a business, 25% felt that it was an above average place to run a business and 41%felt that it was an average to run a business. Also, 62% of business respondents would recommend Miami Beach to others as a place to run a business. Issue: Shall the City Commission Adopt the Resolution? Item Summa /Recommendation: At its June 9,2010 meeting,the Mayor and City Commission passed and adopted Ordinance No.2010-3682, which amended the City's Living Wage Ordinance,Sections 2-407 thru 2-410 of the Miami Beach City Code, herein referred to as the"Ordinance". Using a proposed three (3) year "phase-in" approach, the new hourly living wage rates were adopted as follows: • commencing with City Fiscal Year 2010-11 (October 1,2010),the hourly living wage rate will be$10.16/hr. with health benefits of at least$1.25/hr, and $11.41/hr without benefits; • commencing with City Fiscal Year 2011-12(October 1,2011),the hourly living wage rate will be$10.72/hr with health benefits of at least$1.45/hr, and $12.17/hr without benefits; and • commencing with City Fiscal Year 2012-13 (October 1, 2012), the hourly living rate will be $11.28/hr with health benefits of at least$1.64/hr, and $12.92/hr without benefits. The Administration recommends that the Mayor and City Commission adopt the attached Resolution that re- affirms the new living wage rates for FY 2012-2013, in accordance with the three(3)year"phase-in"approach pursuant to Ordinance No. 2010-3682, effective October 1, 2012. ADOPT THE RESOLUTION. Advisory Board Recommendation: Financial Information: Source of Amount Account Approved Funds: 1 $62,000 General Fund 2 $9,000 Internal Service 3 $253,000 Enterprise Fund O PI 4 $20,000 RDA Fund Total $344,000 Financial Impact Summary: Amounts are included in the FY2012/13 Proposed Operating Budget. City Clerk's Office Legislative Tracking: Raul Aguila Sign-Offs: Department Director Assistant City Manager City Man a& RA PDW KGB T:\AGENDA\2012\9-27-12\Re-affirm Living Wage rates FY13-Summary.doc MIAMIBEACH AGENDA STEM R I F DATE N 7-1 Z, MIAMI BEACH City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Co ission FROM: Kathie G. Brooks Interim City Manager er DATE: September 27, 2012 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RE-AFFIRMING THE NEW LIVING WAGE RATES FOR FISCAL YEAR (FY) 2012-2013, IN ACCORDANCE WITH THE THREE YEAR "PHASE-IN" APPROVED PURSUANT TO ORDINANCE NO. 2010-3682; WITH SUCH RATES TO BE EFFECTIVE OCTOBER 1, 2012 AS FOLLOWS: $11.28 PER HOUR WITH CONTRIBUTIONS TOWARDS HEALTH BENEFITS OF AT LEAST $1.64 PER HOUR, AND $12.92 PER HOUR WITHOUT BENEFITS. BACKGROUND At its June 9, 2010 meeting, the Mayor and City Commission passed and adopted Ordinance No. 2010-3682, which amended the City's Living Wage Ordinance, Sections 2-407 thru 2-410 of the Miami Beach City Code, herein referred to as the "Ordinance". Using a proposed three (3) year "phase-in" approach, the new hourly living wage rates were adopted as follows: • commencing with City Fiscal Year 2010-11 (October 1, 2010), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hr, and $11.41/hr without benefits; • commencing with City Fiscal Year 2011-12 (October 1, 2011), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits; and • commencing with City Fiscal Year 2012-13 (October 1, 2012), the hourly living rate will be $11.28/hr with health benefits of at least $1.64/hr, and $12.92/hr without benefits. FISCAL IMPACT Effective October 1, 2012, service contractors as defined in the Ordinance shall be required to pay all employees, pursuant to Living Wage Ordinance No. 2010-3682, the new living wage rates of $11.28 per hour with health benefits of at least $1.64 per hour, and $12.92 per hour without benefits. The impact of the living wage increase for fiscal year 2012-2013 is as follows: FUND TOTAL LIVING WAGE IMPACT FY2013 General Fund $62,000 Internal Service $9,000 Enterprise Fund $253,000 RDA $20,000 Total Citywide $344,000 Commission Memo Re-affirm Living Wage Rates for FY2013 September 27, 2012 Page 2 of 2 The new living wage rates will apply to 16 contracts, awarded to 32 contractors which provide the City with general services and employ over 300 employees. Since the City is exercising the last year of the aforementioned three (3) year "phase-in approach", the administration would like to request that the Mayor and City Commission refer the implementation of future living wage increases to the Finance & Citywide Projects Committee for discussion. CONCLUSION The Administration recommends that the Mayor and City Commission adopt the attached Resolution hereby re-affirms the new living wage rates for FY 2012-2013, in accordance with the three year "phase-in" approved pursuant to Ordinance No. 2010- 3682; with such rates to be effective October 1, 2013 as follows: $11.28 per hour with contributions towards health benefits of at least $1.64 per hour, and $12.92 per hour without benefits. KGB/PDW TAAGENDA\2012\9-27-12\Re-affirm Living Wage rates FY13-Memo.doc