Ordinance 2020-4327 ORDINANCE NO. 2020-4327
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 31 OF THE
CODE OF THE CITY OF MIAMI BEACH, ENTITLED "PURCHASING,"
BY AMENDING ARTICLE II THEREOF, ENTITLED "CONSTRUCTION
CONTRACTS - MINIMUM WAGES AND BENEFITS," BY AMENDING
SECTION 31-27, ENTITLED "ESTABLISHMENT OF MINIMUM
WAGES," TO INCREASE THE CONTRACT THRESHOLD FOR CITY
PROJECTS SUBJECT TO MINIMUM WAGES AND BENEFITS; BY
AMENDING SECTION 31-31, ENTITLED "EXCEPTIONS," TO EXEMPT
EMERGENCY PURCHASES FROM THE MINIMUM WAGE
REQUIREMENTS OF THE ORDINANCE; BY CREATING SECTION 31-
32, ENTITLED "REPORTING REQUIREMENT," TO INCLUDE A
REPORTING REQUIREMENT OF CERTIFIED PAYROLL
INFORMATION FOR ALL CITY CONSTRUCTION CONTRACTS IN
EXCESS OF $1,500,000, INCLUDING CONTRACTS EXEMPTED
PURSUANT TO SECTION 31-31 OF THE CITY CODE; AND BY
AMENDING ARTICLE III, ENTITLED "LOCAL WORKFORCE
PARTICIPATION GOALS AND REPORTING REQUIREMENTS FOR
CITY CONSTRUCTION CONTRACTS," SECTION 31-40 THEREOF,
ENTITLED "LOCAL WORKFORCE PARTICIPATION GOALS AND
REPORTING REQUIREMENTS FOR CITY CONSTRUCTION
CONTRACTS," TO STREAMLINE REPORTING REQUIREMENTS AND
ELIMINATE UNNECESSARY INTERIM WORKFORCE PARTICIPATION
REPORTING REQUIREMENTS; AND PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE.
WHEREAS, Section 31-27 of the City Code currently requires that for City
construction projects with a contract value in excess of $1,000,000, the contractor must
pay laborers, apprentices and mechanics minimum wages, commonly referred to as
"prevailing wages," in accordance with the wage rates established from time to time by
the United States Department of Labor and published in the Federal Register; and
WHEREAS, the City Commission has not updated the minimum wage
requirements of the City Code since 1994, and desires to to increase the minimum
contract threshold for City projects that are subject to minimum wages and benefits from
$1,000,000 to $1,500,000, and to create an exemption for emergency contracts; and
WHEREAS, the City Commission also desires to create a reporting requirement
for the submission of certain certified payroll information on all City construction
contracts in excess of $1,500,000, including, without limitation, contracts exempted
pursuant to Section 31-31 of the City Code, to permit the City to monitor the wage rates
being paid to laborers on larger City projects, and determine whether the wages actually
paid to workers are keeping up with inflation in a manner that is comparable to other
projects in Miami-Dade County; and
WHEREAS, the City also desires to amend the workforce participation reporting
requirements set forth in Section 31-40 of the City Code, to streamline reporting
requirements and eliminate an unnecessary interim reporting requirement concerning
workforce participation goals.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1. That Chapter 31, entitled "Purchasing," Article II thereof, entitled
"Procurement," thereof, entitled "Construction Contracts-Minimum Wages and Benefits,"
of the Code of the City of Miami Beach is hereby amended as follows:
CHAPTER 31
PURCHASING
ARTICLE II. - CONSTRUCTION CONTRACTS-MINIMUM WAGES AND BENEFITS
Sec. 31-27. — Establishment of minimum wages.
Every construction contract in excess of $1,000,000.001,500,000.00 to which the
City of Miami Beach is a party shall include a provision that the rate of wages and fringe
benefits, or cash equivalent, for all laborers, mechanics and apprentices employed by
any contractor or subcontractor on the work covered by the contract, shall be not less
than the prevailing rate of wages and fringe benefit payments or cash equivalence for
similar skills or classifications of work as established by the Federal Register, in the City
of Miami Beach, Florida.
Every three years commencing in 1997, the city manager shall present a report
to the city commission regarding increases in the Construction Cost Index for South
Florida, if any, and shall recommend to the city commission whether there should be an
adjustment to the $1,000,000.001,500,000.00 threshold. In the event that the city
manager recommends an adjustment, the city commission shall hold a public hearing
regarding an amendment to this article to provide forconsider the adjustment.
* * *
Sec. 31-31. - Exceptions.
The provisions of section 31-27 shall not apply to the following City of Miami
Beach projects:
(a) Water, except water treatment facilities and lift stations.
(b) Sewer, except sewage treatment facilities and lift stations.
(c) Storm drainage.
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(d) Road construction, except bridges or structures requiring pilings.
(e) Beautification projects which may include resurfacing new curbs, gutters,
pavers, sidewalks, landscaping, new lighting, bus shelters, bus benches
and signage.
(f) Proposed parking garage projects located at Seventh Street and Collins
Avenue, Tenth Street and Collins Avenue, Thirteenth Street and Collins
Avenue, Twelfth Street and Washington Avenue and the Seventeenth
Street garage renovation project; however future parking structures not
specified herein and estimated to cost in excess of $1,000,000.00 shall
not be exempt.
(q) Emergency projects pursuant to Section 2-396 of the City Code.
In determining whether a construction project meets the $1,000,000.00 estimated
cost contract threshold established in section 31-27, all segments of the project, except
land acquisition, architectural/engineering design, and legal costs, shall be considered
as one entirety.- Construction projects for which the estimated cost exceeds
$1,000,000.00 the contract threshold established in section 31-27 shall not be bid in a
manner which would avoid the requirements of section 31-27 this article.
Sec. 31-32. — Certified payroll reporting requirement.
All city construction contracts in excess of $1,500,000, including contracts for
exempt city projects pursuant to subsections 31-31(a) through (q) of the city code, shall
include a provision requirinq the contractor to submit certified payrollrecords along with
each payment application, to allow the city to verify the wage rates paid to construction
workers performing work on city projects. All certified payroll records submitted to the
city shall, at a minimum, include the name, address or zip code, labor classification,
hours worked, and hourly base rate paid for each laborer, mechanic and apprentice
employed by any contractor or subcontractor on the work covered by the contract.
The requirements of this section shall be reviewed annually by the finance and
citywide projects committee (or successor committee), at which time the committee will
provide an advisory recommendation to the city commission as to whether to continue
to maintain this section in force and effect.
SECTION 2. That Chapter 31, entitled "Purchasing," Article III thereof, entitled
"Procurement," thereof, entitled "Local Workforce Participation Goals and Reporting
Requirements for City Construction Contracts," of the Code of the City of Miami Beach
is hereby amended as follows:
ARTICLE III. - LOCAL WORKFORCE PARTICIPATION GOALS AND REPORTING
REQUIREMENTS FOR CITY CONSTRUCTION CONTRACTS
Sec. 31-40. - Local workforce participation goals and reporting requirements for city
construction contracts.
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(1) Definitions. The following words, terms, and phrases, when used in this article,
shall have the meanings ascribed to them in this section, except where the
context clearly indicates a different meaning:
(a) City construction contract means (i) a city contract valued in excess of
$1,000,000.00 the contract threshold established in section 31-27 for the
construction, demolition, alteration and/or repair of city buildings or city public
works, or (ii) a contract valued in excess of $1,000,000.00 the contract
threshold established in section 31-27 which provides for privately-funded
construction, demolition, alteration and/or repair of buildings or
improvements located on city-owned land.
(b) Department means the department responsible for managing the awarded
city construction contract as designated by the city manager.
(c) Contractor means any person or entity providing construction services
pursuant to subsection (1)(a).
(2) Implementation. The provisions of this article shall apply to city construction
contracts that: a) are subject to section 31-27 of article II of this chapter; and b)
are awarded pursuant to an Invitation to Bid (ITB) or Request for Proposals
(RFP) issued by the city on or after April 1, 2017.
(3) General requirements.
(a) Except where state, county or federal laws or regulations, or other approved
granting agencies, mandate to the contrary, all contractors and
subcontractors of any tier performing on a city construction contract shall
satisfy the requirements of this article.
(b) As a condition of submitting a bid or proposal for a city construction
contract, a general contractor, construction manager, or other contractor
seeking award of a contract, shall submit a responsible contractor affidavit,
as provided in subsection (4)(a)(1), with its bid or proposal. The city shall
provide notice to any contractor who fails to submit a responsible contractor
affidavit that said contractor has forty-eight (48) hours from the time of
notification to submit a responsible contractor affidavit or its bid or proposal
will be deemed nonresponsive and disqualified from consideration.
(c) The responsible contractor affidavit shall be completed on a standard form
authorized by the Procurement Director and shall reference the city
construction contract for which a bid or proposal is being submitted by name
and contract or project number. Any city agency, department, or other party
responsible for administering a city construction contract shall require
contractors to use the standard form authorized by the Procurement
Director.(d)A city construction contract shall not be executed until all
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requirements of this section have been fulfilled.(e)No contractor shall
receive final payment for completion of a city construction contract until the
city receives a completed workforce performance report submitted pursuant
to subsection (4)(b).
(4) Responsible contractor affidavit and workforce performance reporting
requirements; contractor past performance.
(a) Responsible contractor affidavit. A construction manager, general
contractor, or other contractor submitting a bid or proposal for a city
construction contract shall verify the following information-en-its responsible
contractor affidavit form:
1. The contractor shall affirm that it will make its bestpood-faith,
reasonable efforts to promote employment opportunities for Miami-
Dade County residents by seeking to achieve a project goal of having
thirty percent (30%) of all construction labor hours performed by
Miami-Dade County residents. The contractor shall also make its best
reasonable efforts to promote employment opportunities for Miami
Beach residents. _ _ - - .e -- , _ - _ - _ _ ..e -
2.
_ -2. The responsible contractor affidavit shall specify the total number of
xich category, and the number of persons to be utilized in each
category. The name, address, and trade category of all persons
proposed to perform work under the contract currently on the
-
Miami Beach and Miami Dade County shall be provided. The
positions shown on the work, trade categories, and minimum
qualifications therefore, to be hired by the contractor (or by any
work under the contract.
(b) Local iNworkforce performance report. Before its final application for
payment of a city construction contract, the contractor responsible for the
project shall submit a workforce performance report to the city which shall
include the following information on the workforce employed in the
execution of the contract:
(1) The total number of construction labor work hours performed on the
project, and the number and percentage of such work hours
performed by Miami Beach and Miami-Dade County residents;
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(2) Supporting documentation verifying construction labor work hours
performed by Miami Beach and Miami-Dade County residents;
(3) Supporting documentation verifying reasonable efforts to promote
employment opportunities for Miami Beach and Miami-Dade County
residents if the project goal of thirty percent (30%) of all construction
labor hours to be performed by Miami-Dade County residents is not
met.
(c) [Evaluation.] Contractor's past performance. When evaluating a
prospective contractor's bids or proposals for future city construction
contracts, in addition to those factors identified in Section 2-369 of the City
Code for determination of award, the contractor's past record of meeting
local workforce goals and complying with reporting requirements of this
article shall be considered.
SECTION 3. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are
hereby repealed:
SECTION 4. SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance is held invalid,
the remainder shall not be affected by such invalidity. portions of this ordinance.
SECTION 5. CODIFICATION.
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 become and be
made a part of the Miami Beach City Code. The sections of this ordinance may be
renumbered or relettered to accomplish such intention, and the word "ordinance" may
be changed to "section," "article," or other appropriate word.
SECTION 6. EFFECTIVE DATE.
This Ordinance shall take effect on the g6- day of TmAC(fy, 2020.
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PASSED AND ADOPTED this /5- day of Jantfa/'y , 2019.
ATTEST: /
Dan Gelb , ayor
1 ( 27/tJ
Rafael E. Granado, City Clerk
Underline denotes additions
Strikethrough denotes deletions
(Sponsored by Commissioner Micky Steinberg) •APPROVED AS TO
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Ordinances - R5 F
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: January 15, 2020
S • 10:30 a.m. Second Reading Public Hearing
SUBJECT:AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA,AMENDING CHAPTER 31 OF THE CODE OF
THE CITY OF MIAMI BEACH, ENTITLED "PURCHASING," BY AMENDING
ARTICLE II THEREOF, ENTITLED "CONSTRUCTION CONTRACTS -
MINIMUM WAGES AND BENEFITS," BY AMENDING SECTION 31-27,
ENTITLED "ESTABLISHMENT OF MINIMUM WAGES," TO INCREASE THE
CONTRACT THRESHOLD FOR CITY PROJECTS SUBJECT TO MINIMUM
WAGES AND BENEFITS; BY AMENDING SECTION 31-31, ENTITLED
"EXCEPTIONS," TO EXEMPT EMERGENCY PURCHASES FROM THE
MINIMUM WAGE REQUIREMENTS OF THE ORDINANCE; BY CREATING
SECTION 31-32, ENTITLED "REPORTING REQUIREMENT," TO INCLUDE
A REPORTING REQUIREMENT OF CERTIFIED PAYROLL INFORMATION
FOR ALL CITY CONSTRUCTION CONTRACTS IN EXCESS OF $1,500,000,
INCLUDING CONTRACTS EXEMPTED PURSUANT TO SECTION 31-31 OF
THE CITY CODE; AND BY AMENDING ARTICLE III, ENTITLED "LOCAL
WORKFORCE PARTICIPATION GOALS AND REPORTING
REQUIREMENTS FOR CITY CONSTRUCTION CONTRACTS," SECTION
31-40 THEREOF, ENTITLED "LOCAL WORKFORCE PARTICIPATION
GOALS AND REPORTING REQUIREMENTS FOR CITY CONSTRUCTION
CONTRACTS," TO STREAMLINE REPORTING REQUIREMENTS AND
ELIMINATE UNNECESSARY INTERIM WORKFORCE PARTICIPATION
REPORTING REQUIREMENTS; AND PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION AND AN EFFECTIVE DATE.
ANALYSIS
Section 31,Article I I of the City Code requires that construction contractors pay wages that are
in accordance with United States Department of Labor, Federal Register, to any laborer,
mechanic and apprentice that performs work on any project in excess of $1,000,000. Section
31, Article III of the City Code requires, for any project to which Article II is applicable, that
contractors make reasonable efforts to promote employment opportunities, with a goal of thirty
percent(30%),for Miami Beach and Miami-Dade County residents.
The proposed revisions incorporated are intended to address the following goals:
1.Article I I.
a. Update the project threshold to allow for the impact of inflation.
b. Include an exemption for emergency projects pursuant to Section 2-396 of the City
Page 865 of 1618
•
code.
c. For a period of 12 months, implement a reporting requirement for all projects above
the threshold amount. The purpose of the reporting requirement is to collect data on the
wages the contractors are paying employees. This information will help the City better
understand the pressures of the labor market on contractor employee wages.
2.Article III.
a. Since Article 111 is only applicable to projects that would fall under the requirements of
Article 11, the proposed changes will make Article III consistent with Article I I.
b. Eliminate the requirement that bidders submit staffing information with the bid since
most contractors (and subcontractors) cannot assign staff to a project until the project is
awarded.
c. Eliminate the requirement4hat contractors submit local workforce; information monthly. The
article already requires bidders to submit an affidavit affirming that they, if selected, agree to hire
at least 30% of its workforce from the local area. The article further requires contractors to
submit a final report detailing its performance and efforts in complying with the local workforce
requirement. Requiring contractors to additionally submit monthly employee residency reports,
in addition to the reporting requirements of Article II, is a burdensome exercise for contractors
that does not typically provide benefits and is contrary to the goal of making it easier for
contractors to do business with the City.
CONCLUSION
This item was approved on first reading on December 11, 2019.
Applicable Area
Citywide
Is this a Resident Right to Does this item utilize G.O.
Know item? Bond Funds?
No No
Legislative Tracking
Procurement/Office of the City Attorney
Sponsor
Sponsored by Commissioner Steinberg
ATTACHMENTS:
Description
o Memorandum
o Ordinance
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_ t
MIAMI BEACH
COMMISSION M MORANDUM
TO: Honorable Mayor and Members of tti I City Com vscion
FROM: Jimmy L. Morales,City Manager
DATE: December 11,2019 •
SUBJECT:AN ORDINANCE OF THE MAYS - AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA,
AMENDING CHAPTER 31 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTITLED "PURCHASING," BY
AMENDING ARTICLE II THEREOF, ENTITLED "CONSTRUCTION CONTRACTS - MINIMUM WAGES AND
BENEFITS," BY AMENDING SECTION 31-27, ENTITLED "ESTABLISHMENT OF MINIMUM WAGES," TO
INCREASE THE CONTRACT THRESHOLD FOR CITY PROJECTS SUBJECT TO MINIMUM WAGES AND
BENEFITS; BY AMENDING SECTION 31-31, ENTITLED "EXCEPTIONS," TO EXEMPT EMERGENCY
PURCHASES FROM THE MINIMUM WAGE REQUIREMENTS OF THE ORDINANCE; BY CREATING
SECTION 31-32, ENTITLED "REPORTING REQUIREMENT," TO INCLUDE A REPORTING REQUIREMENT
OF CERTIFIED PAYROLL INFORMATION FOR ALL CITY CONSTRUCTION CONTRACTS IN EXCESS OF
$1,500,000, INCLUDING CONTRACTS EXEMPTED PURSUANT TO SECTION 31-31 OF THE CITY CODE;
• AND BY AMENDING ARTICLE III, ENTITLED "LOCAL WORKFORCE PARTICIPATION GOALS AND
REPORTING REQUIREMENTS FOR CITY CONSTRUCTION CONTRACTS," SECTION 31-40 THEREOF,
ENTITLED"LOCAL WORKFORCE PARTICIPATION GOALS AND REPORTING REQUIREMENTS FOR CITY
CONSTRUCTION CONTRACTS," TO STREAMLINE REPORTING REQUIREMENTS AND ELIMINATE
UNNECESSARY INTERIM WORKFORCE PARTICIPATION REPORTING REQUIREMENTS; AND
PROVIDING FOR REPEALER,SEVERABILITY,CODIFICATIONANDAN EFFECTIVE DATE.
BACKGROUND/HISTORY
Section 31, Article 11 of the City Code requires that construction contractors pay wages that are in accordance with United States
Department of Labor, Federal Register, to any laborer, mechanic and apprentice that performs work on any project in excess of
$1,000,000. Section 31,Article III of the City Code requires,for any project to which Article II Is applicable, that contractors make
reasonable efforts to promote employment opportunities,with a goal of thirty percent(30%),for Miami Beach and Miami-Dade County
residents.Both articles are in need of revisions as articulated below.
ANALYSIS
The proposed revisions incorporated are intended to address the following goals:
1.Article I I,
a. Update the project threshold to allow for the impact of inflation.
b.Include an exemption for emergency projects pursuant to Section 2-396 of the City code.
c. Implement a reporting requirement,to be considered annually for continuation,for all projects above the threshold amount.
The purpose of the reporting requirement is to collect data on the wages the contractors are paying employees. This
Information will help the City better understand the pressures of the labor market on contractor employee wages and make
future wage determinations.
2.Article I II.
a.Since Article I I I is only applicable to projects that would fall under the requirements of Article 11,the proposed changes will
make Article III consistent with Article I I.
b. Eliminate the requirement that bidders submit staffing information with the bid since most contractors (and subcontractors)
cannot assign staff to a project until the project is awarded.
c. Eliminate the requirement that contractors submit local workforce information monthly.The article already requires bidders to
submit an affidavit affirming that they, if selected, agree to hire at least 30% of its workforce from the local area. The article
further requires contractors to submit a final report detailing its performance and efforts in complying with the local workforce
requirement. Requiring contractors to additionally submit monthly employee residency reports, in addition to the reporting
requirements of Article II, is a burdensome exercise for contractors that does not typically provide benefits and is contrary to
the goal of making it easier for contractors to do business with the City.
CONCLUSION
On October 25, 2019, the Finance Committee considered and endorsed the recommendations to update the ordinance. The
Page 867 of 1618
recommendations to Article I I are intended to allow the City to collect construction worker information which will allow the City
Commission to analyze future wage recommendations.The recommendations to Article III will continue to make it easier for vendors
to do business with the City by streamlining burdensome requirements that do not add substantive value.
Applicable Area
Citywide
Is this a Residenj Right to Goes this item utilize G.D.
Know Item? Bond Funds?
No No
Legislative Tracking
Procurement/CAO •
Sponsor •
Commissioner Steinberg
•
•
• 3
Page 868 of 1618