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2016-29478 Reso RESOLUTION NO. 2016-29478 ( A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE AT ITS JUNE 17, 2016 MEETING TO MAINTAIN THE LIVING WAGE RATE AND HEALTH CARE BENEFIT RATE AT CURRENT LEVELS FOR COVERED CITY AND SERVICE CONTRACTOR EMPLOYEES FOR FISCAL YEAR 2016/2017. WHEREAS, in Fiscal Year 2015/2016, the hourly living wage rate paid to City employees and employees of City service contactors is set at a rate of $11.62/hr with health benefits of at least $1.69/hr, and $13.31/hr without health benefits. WHEREAS, the process to index the living wage rate, as provided in Section 2-408(d) of the City Code, allows for the living wage rate and health care benefits rate to be increased annually for inflation, at the City Commission's discretion, using the latest PMSA Consumer Price Index for all Urban Consumers (CPI-U) for the Miami/Ft. Lauderdale region (1.089% for 2014/2015) issued by the U.S. Department of Labor, Bureau of Labor Statistics; and WHEREAS, notwithstanding the preceding, the City Code provides that no annual increase to the living wage rates for the employees of City service contractors shall exceed the corresponding annual compensation increase provided to unclassified City employees; and WHEREAS, on June 8, 2016, via City Commission agenda item C4B, the City Administration requested that the City Commission approve a referral to the Finance and City- Wide Projects Committee to discuss the indexing of the living wage rate for Fiscal Year 2016/2017, and the City Commission approved the request and referred the matter to the Finance and Citywide Projects Committee for discussion; and WHEREAS, the indexing of living wage rate was discussed at the Finance and Citywide Projects Committee (FCWPC) meeting on June 17, 2016; and WHEREAS, after consideration and discussion, the Finance and Citywide Projects Committee unanimously approved a recommendation to the Mayor and City Commission to maintain the current living wage rate and the healthcare benefits rate consistent with the current levels of $11.62/hr with health benefits of at least $1.69/hr, and $13.31/hr without health benefits; due, in part, to the importance of achieving parity with the upcoming minimum wage rate; and WHEREAS, maintaining the living wage and health care benefit rates at current levels will have no impact on the Budget for Fiscal Year 2016/2017. NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby approve the recommendation of the Finance and Citywide Projects Committee at its June 17, 2016 meeting to maintain living wage and health care benefit rates at the current levels for Fiscal Year 2016/2017 and further hereby find that it would not be fiscally prudent to index the living,wage due to the disparity that would be created with upcoming minimum wage rates. PASSED AND ADOPTED this > 'ti day>o ' 2016. ‘, \N''`t....,:-'C,� ,, � / ATTEST' a r Y - -�� ,� % P,yi(pjevine, Mayor �, °.* INCORP ORATED: :. � APPROVED AS TO �;�. �� A. FORM & LANGUAGE Rafa- E. Granado, City Clerk �,/; • �. .� # _ ....'\o)�/ &F R ELUTION 114-CHH 2§ r�ww( . � f City Attorney -701— Dcltr, COMMISSION ITEM SUMMARY Condensed Title: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLOIRIDA,ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC) TO MAINTAIN CURRENT LIVING WAGE RATE LEVELS THAT APPLICABLE CONTRACTORS MUST PAY THEIR EMPLOYEES, PURSUANT TO SECTION 2-408 OF THE CITY CODE, FOR FISCAL YEAR 2016/2017,AT A RATE OF$11.62/HR WITH HEALTH BENEFITS OF AT LEAST$1.69/HR,AND$13.31/HR WITHOUT BENEFITS. Key Intended Outcome Supported: I N/A Item Summary/Recommendation: In this fiscal year 2016,the hourly living wage rate paid to employees of City contactors is set at a rate of$11.62/hr with health benefits of at least$1.69/hr, and $13.31/hr without benefits. Section 2-408(d) allows for the living wage rate to be indexed (increased)annually by resolution of the Mayor and City Commission as follows: 2-408(d) Indexing. The living wage rate and health care benefits rate may, by resolution of the City Commission, be indexed annually for inflation using the Miami PMSA Consumer Price Index for all Urban Consumers(CPI-U)Miami/Ft.Lauderdale,issued by the U.S.Department of Labor's Bureau of Labor Statistics.Notwithstanding the preceding,no annual index shall exceed three percent;nor shall an annual increase exceed the corresponding annual compensation increase (if any) provided to unrepresented(i.e.,unclassified)City employees.The City Commission may also,by resolution,elect not to index the living wage rate in any particular year,if it determines it would not be fiscally sound to implement same(in a particular year).The determination to index(or not index)the living wage rate shall be considered annually during the City Commission's review and approval of the City's annual operating budget. Accordingly,on June 8,2016,via agenda item C4B,the Administration requested that the City Commission approve a referral to the Finance and City-Wide Projects Committee to discuss the indexing of the living wage rate for Fiscal Year 2017.The City Commission approved the request for referral to the Finance and Citywide Projects Committee for a discussion on the living wage rate. On June 17,2016,the Finance and Citywide Projects Committee considered,in accordance with the City Code,the following: 1. Whether to index for inflation using the Miami PMSA Consumer Price Index for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale, issued by the U.S. Department of Labor's Bureau of Labor Statistics, providing that: a.notwithstanding the preceding,no annual index shall exceed three percent(3%);and b.no annual increase shall exceed the corresponding annual compensation increase(if any)provided to unrepresented (i.e. unclassified)city employees. 2.Whether to elect not to recommend indexing(increasing)the living wage rate for the subsequent fiscal year. After consideration and discussion,the Finance and Citywide Projects Committee unanimously approved a recommendation to the Mayor and City Commission to maintain current living wage rate unchanged at the current levels of$11.62/hr with health benefits of at least$1.69/hr, and$13.31/hr without benefits. Part of the discussion focused on the importance of achieving parity with the upcoming minimum wage rate.The recommendation will have no impact on the budget for fiscal year 2017. The Administration recommends that the Mayor and City Commission approve the recommendation of the Finance and Citywide Projects Committee to maintain living wage rates at the current levels for Fiscal Year 2017. RECOMMENDATION Approve the Resolution. Advisory Board Recommendation: After consideration and discussion,the Finance and Citywide Projects Committee unanimously approved a recommendation to the Mayor and City Commission to maintain current living wage rate unchanged at the current levels of$11.62/hr with health benefits of at least$1.69/hr, and$13.31/hr without benefits. Financial Information: Source of Amount Account Funds: 1 2 OBPI Total _ Financial Impact Summary: N/A City Clerk's Office Legislative Tracking: Sign-Offs: De•art t4t ector Assistant ;%;± \a•er Ci Ma�u;;,•er AD -V A11 F:\PURC\$ALL\LI r7G WAGE\Living Wage Reso_Item Summary_Memo FY1 <9013-2014\Living Wage Rates FY 2014 Sum a, -09-18-13.doc • 7 Q I A! V 1 I V EAC AGENDA ITEM G DATE 7-/3'/Ci CI_ MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Philip Levine and Members f the City/ ommission FROM: Jimmy L. Morales, City Manager • DATE: JULY 13, 2016 SUBJECT: A RESOLUTION OF THE YOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLOIRIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC) TO MAINTAIN CURRENT LIVING WAGE RATE LEVELS THAT APPLICABLE CONTRACTORS MUST PAY THEIR EMPLOYEES, PURSUANT TO SECTION 2-408 OF THE CITY CODE, FOR FISCAL YEAR 2016/2017, AT A RATE OF $11.62/HR WITH HEALTH BENEFITS OF AT LEAST $1.69/HR, AND $13.31/HR WITHOUT BENEFITS. ADMINISTRATION RECOMMENDATION Approve the Resolution. BACKGROUND In this fiscal year 2016, the hourly living wage rate paid to employees of City contactors is set at a rate of $11.62/hr with health benefits of at least $1.69/hr, and $13.31/hr without benefits. Section 2-408(d) allows for the living wage rate to be indexed (increased) annually by resolution of the Mayor and City Commission as follows: 2-408(d) Indexing. The living wage rate and health care benefits rate may, by resolution of the City Commission, be indexed annually for inflation using the Miami PMSA Consumer Price Index for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale, issued by the U.S. Department of Labor's Bureau of Labor Statistics. Notwithstanding the preceding, no annual index shall exceed three percent; nor shall an annual increase exceed the corresponding annual compensation increase (if any) provided to unrepresented (i.e., unclassified) City employees. The City Commission may also, by resolution, elect not to index the living wage rate in any particular year, if it determines it would not be fiscally sound to implement same (in a particular year). The determination to index(or not index) the living wage rate shall be considered annually during the City Commission's review and approval of the City's annual operating budget. Accordingly, on June 8, 2016, via agenda item C4B, the Administration requested that the City Commission approve a referral to the Finance and City-Wide Projects Committee to discuss the indexing of the living wage rate for Fiscal Year 2017. The City Commission approved the request for referral to the Finance and Citywide Projects Committee for a discussion on the living wage rate. Commission Memo Referral to Finance and Citywide Project Committee-Living Wage July 23, 2014 Page 2 of 2 On June 17, 2016, the Finance and Citywide Projects Committee considered, in accordance with the City Code, the following: 1. Whether to index for inflation using the Miami PMSA Consumer Price Index for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale, issued by the U.S. Department of Labor's Bureau of Labor Statistics, providing that: a. notwithstanding the preceding, no annual index shall exceed three percent (3%); and b. no annual increase shall exceed the corresponding annual compensation increase (if any) provided to unrepresented (i.e. unclassified) city employees. 2. Whether to elect not to recommend indexing (increasing) the living wage rate for the subsequent fiscal year. After consideration and discussion, the Finance and Citywide Projects Committee unanimously approved a recommendation to the Mayor and City Commission to maintain current living wage rate unchanged at the current levels of $11.62/hr with health benefits of at least $1.69/hr, and $13.31/hr without benefits. Part of the discussion focused on the importance of achieving parity with the upcoming minimum wage rate. The recommendation will have no impact on the budget for fiscal year 2017. CONCLUSION The Administration recommends that the Mayor and City Commission approve the recommendation of the Finance and Citywide Projects Committee to maintain living wage rates at the current levels for Fiscal Year 2017. JLM / MT/AD / FM T:\AGENDA\2016Uuly\Procurement\Resolution - Living wage\Acceptance of Finance and Citywide Projects Committee recommendation-Living Wage FY16-17-Memo.docx