Ordinance 2021-4405 ORDINANCE NO. 2021-4405
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 EXTEND THE WAGE REQUIREMENTS OF THE
ORDINANCE TO CONSTRUCTION PROJECTS ON CITY-OWNED
LAND THAT ARE DEVELOPED BY PERSONS OR ENTITIES OTHER
THAN THE CITY, PURSUANT TO A (I) DEVELOPMENT AGREEMENT,
(II) GROUND LEASE, OR (III) MANAGEMENT AGREEMENT WITH THE
CITY; BY AMENDING SECTION 31-31, "ENTITLED EXCEPTIONS," TO
EXEMPT CERTAIN PROJECTS FROM THE REQUIREMENTS OF THE
ORDINANCE; AND PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION AND AN EFFECTIVE DATE.
WHEREAS, Section 31-27 of the City Code, commonly referred to as the City's
"Prevailing Wages" Ordinance, currently requires that for "City construction projects"
with a contract value in excess of $1,500,000, the contractor must pay laborers,
apprentices and mechanics minimum 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 Mayor and City Commission desire to amend the City's
Prevailing Wages Ordinance, to extend the requirements of the Ordinance to
construction projects that are developed by persons or entities other than the City, but
which require the participation of the City as a party to a (i) development agreement, (ii)
ground lease, or (iii) management agreement for a city-owned building or facility having
a term of ten years or more (including renewal terms).
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 ll thereof, entitled
"Construction Contracts-Minimum Wages and Benefits," Section 31-27 thereof, entitled
Establishment of Minimum Wages, and Section 31-32 thereof, entitled Certified payroll
reporting requirement, of the Code of the City.of Miami Beach are hereby amended as
follows:
CHAPTER 31
PURCHASING
ARTICLE II. - CONSTRUCTION CONTRACTS-MINIMUM WAGES AND BENEFITS
Sec. 31-27. — Establishment of minimum wages.
(a) Definitions. "City construction contract" shall mean every contract in
excess of$1,500,000, where:
(1) the city is a party to a contract for the construction, demolition, alteration
and/or repair of a city building, facility or other public improvement; or
(2) the construction project is developed by persons or entities other than the
city, pursuant to a (i) development agreement with the city, (ii) ground lease, or
(iii) management agreement with the city having a term of ten years or more
(including renewal terms), and such agreement provides for construction,
demolition, alteration and/or repair of buildings or improvements located on city-
owned land, whether privately-funded or otherwise.
Prevailing wage requirements. Except for projects exempted pursuant to
Section 31-31 of this Article, every city construction contract in excess of $1,500,000.00
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..
L 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 $1,500,000.00 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 consider the adjustment.
Sec. 31-28. - Implementation by the Federal Register.
The prevailing wage rate and fringe benefit payments to be used in
implementation of this article shall be those last published by the United States
Department of Labor in the Federal Register prior to the date of issuance of
specifications by the City of Miami Beach in connection with its invitation for bid.
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Sec. 31-29. - Notice requirement.
On the date on which a laborer or mechanic commences work on a city
construction contract to which this article applies, the contractor shall be required to
post a notice in a prominent place at the work site stating the requirements of this
article.
Sec 31-30. - Preemption by federal funding.
When city construction contracts involve federal funding or are otherwise
subject to the provisions of the Davis-Bacon Act [40 U.S.C. 276(a)], this article shall
not apply, and the minimum wages to be paid the various classes of laborers,
mechanics and apprentices shall be based upon the wages determined by the
Secretary of Labor in accordance with the Davis-Bacon Act [40 U.S.C. 276(a)].
(Ord. No. 86-2507, § 1, 7-9-86; Ord. No. 94-2960,§ 1, 12-21-94)
Sec. 31-31. - Exceptions.
The provisions of section 31-27 shall not apply to the following proiectsCity 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.
(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.
(g) Emergency projects pursuant to Section 2-396 of the City Code.
(h) Affordable housing or workforce housing proiects.
(i) Any proiect covered under subsection 31-27(a)(2) of the city code, where
the development agreement, ground lease, or management agreement
was entered into prior to June 1, 2021, or where the contract was
entered into pursuant to any competitive solicitation issued prior to June
1, 2021.
(i) Any project covered under section 31-27(a)(2) of the city code, for which
the city commission, by resolution approved by a 5/7ths vote, has waived
the requirements of this article, finding such waiver to be in the best
interest of the city.
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Sec. 31-32. - Certified payroll reporting requirement.
(a)All city construction contracts covered under section 31-27(a)(1) of the city
code, including contracts for exempt city projects pursuant to subsections 31-
31(a) through (g) of the city Code, shall include a provision requiring the
contractor to submit certified payroll records along with each payment
application, to allow the city to verify the wage rates paid to construction
workers performing work on city projects. A - - - - - - - - - e ".
-
to the city shall, at a minimum, includes the name, address or zip code, labor
clasfsification, hours worked, and hourly base rate paid for each laborer,
work covered by the contract.
(b) For city construction contracts covered under section 31-27(a)(2) of the city
code, the development agreement, ground lease or management agreement
with the city shall include a. contract provision requiring the developer, ground
lessee, or manager/operator, as applicable, to obtain certified payroll records
from its construction contractor, and to submit such certified payroll records to
the city upon request, to allow the city to audit the wage rates paid to
construction workers performing work on the city construction proiect.
(c) 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 ratepaid for each laborer, mechanic and apprentice employed by any
contractor or subcontractor on the work covered by the city construction
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 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
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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 27 day of My-CA , �0�1
PASSED AND ADOPTED this I7 day of Meirtk , 2021 .
ATTEST:
‘.W1-fl
Dan Gelber, Mayor
Zsa
Rafael El. Granado, City C erk
Underline denotes additions = ��-,,,
Strikethrough denotes deletions 51
ago ao�TEn
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(Sponsored by Commissioner David Richardson)
APPROVED AS TO
FORM &LANGUAGE
&FOR EXECUTION
City Attorney nn Data
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Ordinances-R5 D
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Rafael Paz,Acting City Attorney
DATE: March 17, 2021
10:15 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 EXTEND THE
WAGE REQUIREMENTS OF THE ORDINANCE TO CONSTRUCTION
PROJECTS ON CITY-OWNED LAND THAT ARE DEVELOPED BY
PERSONS OR ENTITIES OTHER THAN THE CITY, PURSUANT TO A (I)
DEVELOPMENT AGREEMENT, (II) GROUND LEASE, OR (III)
MANAGEMENT AGREEMENT WITH THE CITY; BY AMENDING SECTION
31-31, "ENTITLED EXCEPTIONS," TO EXEMPT CERTAIN •PROJECTS
FROM THE REQUIREMENTS OF THE ORDINANCE; AND PROVIDING
FOR REPEALER, SEVERABILITY, CODIFICATION AND AN EFFECTIVE
DATE.
BACKGROUND/HISTORY
The proposed ordinance was prepared at the request of Commissioner David Richardson.
On October 14, 2020, the Mayor and City Commission referred the proposed ordinance to the
Finance and Economic Resiliency Committee (the "FERC").
On January 22, 2021, the FERC unanimously recommended the adoption of the proposed
ordinance.
On February 10, 2021, the Mayor and City Commission adopted the proposed Ordinance at
first reading.
ANALYSIS
The City's Prevailing Wages Ordinance, set forth in Chapter 31 of the City Code, currently requires
that for"City construction projects" with a contract value in excess of$1,500,000, 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.
Page 523 of 2284
As currently drafted, based on the definition of "City construction project' in the Prevailing
Wages Ordinance, the requirements only apply to construction contracts to which the City
is a party. Accordingly, the Prevailing Wages Ordinance does not apply where the City is
approving the construction of a building on City-owned land pursuant to a development
agreement, ground lease or long-term management agreement, simply because the City is not a
party to the underlying construction contract with the general contractor or the design/builder for
the project.
The proposed ordinance would extend the Prevailing Wages Ordinance to include
construction projects on City-owned land that are developed by persons or entities
other than the city, but which require the participation of the city as a party to a (i)
development agreement, (ii)ground lease,or(iii) management agreement.
If adopted, the proposed ordinance would provide the same wage protections to construction
workers performing work on City-owned land as those that perform work on City projects.
Simply put, if a developer desires the privilege of constructing a project on City-owned land, the
sponsor proposes that the same wage requirements that the City imposes on itself for its own
projects should apply to the developer's project.
The proposed language is similar to language currently set forth in the City's Local Workforce
Hiring Ordinance, which extends local workforce hiring goals to privately funded projects on
City-owned land, as well as the City's Art in Public Places Ordinance, which applies to privately
funded developments on City-owned land. The proposed ordinance would simply place
minimum wages for construction workers at parity with the City's desire to obtain public art
contributions from developers.
In addition, as every development implicates unique issues and the City Commission may
desire the flexibility to take into account the overall public benefits or other issues associated
with any given project, the sponsor proposes that the requirements of the Ordinance could be
waived by the City Commission on a case-by-case basis, by an affirmative 5/7ths vote. In
addition, as the City Commission's express policy is to incentivize affordable housing and
workforce housing projects in the City, the proposed ordinance would exclude such projects
from the requirements of the Prevailing Wages Ordinance.
SUPPORTING SURVEY DATA
N/A
FINANCIAL INFORMATION
The proposed Ordinance would not impact the City's revenues/expenses.
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Page 524 of 2284
Legislative Tracking
Office of the City Attorney
Sponsor
Commissioner David Richardson and Co-sponsored by Commissioner Micky Steinberg
ATTACHMENTS:
Description
D Ordinance
Page 525 of 2284