Resolution 2022-32263 RESOLUTION NO.. 2022-32263
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS MAY 27, 2022
MEETING, TO INCREASE THE LIVING WAGE RATE FOR FISCAL YEAR
2023 TO PROVIDE A COST OF LIVING ADJUSTMENT ("COLA") IN THE
AMOUNT OF THREE PERCENT, WITH THE INDEXED LIVING WAGE RATE
TO CONSIST OF EITHER: (1) $15.61 PER HOUR, WITHOUT HEALTH CARE
BENEFITS OR (2) $12.26 PER HOUR WITH HEALTH CARE BENEFITS, OF
AT LEAST $3.35 PER HOUR EFFECTIVE JANUARY 1, 2023; AND FURTHER
DELEGATING THE AUTHORITY TO THE PROCUREMENT DIRECTOR TO
AMEND ANY CONTRACT, AS NEEDED, IN ORDER TO IMPLEMENT THE
THREE PERCENT INCREASE TO THE LIVING WAGE RATE FOR FY 2023.
WHEREAS, Section 2-408 of the City Code requires that, for specific service contracts,
contractors pay employees the living wage rates that have been approved by the City
Commission for any given year; and
WHEREAS, on September 25, 2019, the Mayor and City Commission approved the
living wage rate for the calendar year 2020 as follows: $15.00 per hour, without health care
benefits; or$11.78 per hour, with health care benefits of at least$3.22 per hour; and
WHEREAS, the current rates resulted from a three-year phased-in approach initially
approved by the City Commission on October 18, 2017, to establish $15.00 an hour as the
minimum living wage rate by 2020; and
WHEREAS, during the annual budget discussion for each fiscal year, the City
Commission considers whether to change the living wage rates that certain City contractors are
required to pay their employees; and
WHEREAS, generally, the living wage hourly rate increase is calculated according to
any prior year increase in the overall Consumer Price Index ("CPI") for the local area, and the
healthcare benefit rate increase is calculated according to any previous year increase in the CPI
for medical costs for the local area; and
WHEREAS, Section 2-408(d) also states that an annual increase to the living wage
rates shall not exceed the corresponding increase (if any) provided to unclassified city
employees; and
WHEREAS, the City's past practice has been to consider the cost of living adjustment
("COLA")approved for unclassified staff; and
WHEREAS, during the FY 22/23 budget process, the City is considering a 3% COLA
increase for unclassified employees, equivalent to the proposed 3% increase for union staff
which is expected to be approved and adopted on September 14, 2022; and
WHEREAS, the fiscal impact of adopting a living wage increase equivalent to the
proposed FY 23 3% COLA for unclassified staff is an estimated $408,916.54; and
WHEREAS, on May 27, 2022, the Finance and Economic Resiliency Committee
("FERC") recommended an increase to the Living Wage for the calendar year 2023, equivalent
to the COLA by 3%; and
WHEREAS, If approved by the Mayor and City Commission, the living wage rates would
consist of either: (1) no less than $12.26 per hour, with health care benefits or (2) no less than
$15.61 per hour, without health care benefits, will become effective on January 1, 2023.
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 accept the. recommendation of the Finance and Economic Resiliency
Committee at its May 27, 2022 meeting, to increase the living wage rate for fiscal year 2023 to
provide a cost of living adjustment ("COLA") in the amount of three percent with the indexed
living wage rate to consist of either: (1) $15.61 per hour, without health care benefits or (2)
$12.26 per hour with health care benefits, effective January 1, 2023; and further delegate the
authority to the.Procurement Director to amend any contract, as needed, in order to implement
the three percent increase to the living wage rate for FY 2023.
PASSED AND ADOPTED this /Y day of serk0i64' 2022. .
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ATTEST: °
; 1NCORP�ORATED
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RAFA L E. G 4 NADO, CITY CLERK����,'..,, DAN GELBER, MAYOR
•
SEP 2 1 2022
APPROVED AS TO
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MIAMIBEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 14, 2022
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE TO APPROVE
AN INCREASE IN THE LIVING WAGE RATE FOR CITY CONTRACTS,
PURSUANT TO SECTION 2-408 OF THE CITY CODE, EQUIVALENT TO
THE COST OF LIVING WAGE ADJUSTMENT APPROVED FOR
UNCLASSIFIED STAFF FOR FISCAL YEAR 2023, SAID INCREASE TO BE
EFFECTIVE JANUARY, 2023; AND FURTHER DELEGATING TO THE CITY
MANAGER OR DESIGNEE THE AUTHORITY TO AMEND ANY CONTRACT
AS NECESSARY TO IMPLEMENT THE INCREASE TO THE LIVING WAGE
RATE.
RECOMMENPATION
The Administration recommends that the Mayor and City Commission adopt the Resolution
accepting the recommendation of the Finance and Economic Resiliency Committee, at its May
27, 2022 meeting, to increase the living wage rate to match the cost of living adjustment
(COLA) increase approved for unclassified staff. The Resolution also delegates to the City
Manager, or designee,the authority to amend any contract, as needed, in order to implement the
increase to the living wage rate.
BACKGROUND/HISTORY
Section 2-408 of the City Code requires, for specific service contracts, that contractors pay
employees the living wage rates approved by the City Commission for any given year. The
current rates, approved by the City Commission on September 16, 2020, are as follows:
• $15.15 per hour without health care benefits;or
• $11.90 per hour with health care benefits of at least$3.25 per hour.
Increases to the living wage hourly rate are calculated according to any prior year increases in
the overall Consumer Price Index (CPI) for the local area. Increases to the healthcare benefit
rate is calculated according to any previous year's increases in the CPI for medical costs for the
local area. However, the City Code stipulates that no increase may exceed 3% or the COLA
increase approved for unclassified staff.
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Consistent with past practice, on April 6, 2022, the City Commission referred a discussion
(agenda item C4D)to the Finance and Economic Resiliency Committee.
ANALYSIS
On May 27, 2022, the Committee considered the following available options for adjusting the
current living wage rates,which include:
Option 1 — Increase the rates consistent with any Consumer Price Index (CPI) increase
for the local area, with a maximum increase of 3% or any COLA adjustment approved for
unclassified staff.
Option 2 — Forego any increases to the living wage rates for the subsequent calendar
year.
After considering the options, the Finance and Economic Resiliency Committee recommended
that the City Commission approve an increase to the current living wage rates in an amount
equal to the cost of living adjustment(COLA)increase approved for unclassified staff.
At the time of the Committee meeting, on May 27, 2022, the COLA increase for unclassified
had not yet been finalized. It is understood that the City is now considering a 3% COLA
increase for unclassified staff for the fiscal year 2023. If the recommendation of the Finance
and Economic Resiliency Committee to increase the living wage rates by the same rate as the
COLA increase for unclassified staff is approved, the living wage rates, effective January 1,
2023,would be as follows:
• $15.61 per hour without health care benefits; or
• $12.26 per hour with health care benefits of at least$3.35 per hour.
SUPPORTING SURVEY DATA
n/a
FINANCIAL INFORMATION
The FY 22/23 fiscal impact of adopting a 3% living wage increase is approximately $400,000
annually(see Attachment A).
CONCLUSION
The Administration recommends that the Mayor and City Commission adopt the Resolution
accepting the recommendation of the Finance and Economic Resiliency Committee to increase
the living wage by 3%to no less than$12.26 per hour with health care benefits or at least$3.35
per hour, or a living wage rate of no less than$15.61 per hour without health care benefits,
effective January 1, 2023, and subject to the approval of the FY 23 budget; and delegating to
the City Manager, or designee,the authority to amend any contract as needed to implement the
three (3)percent increase to the current living wage rate.
Applicable Area
Citywide
Is this a"Residents Right Does this item utilize G.O.
to Know" item. pursuant to Bond Funds?
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City Code Section 2-14?
Yes No
Legislative Tracking
Procurement
ATTACHMENTS:
Description
❑ Attachment A
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Attachment A 8/19/2022
Scenerios
Living Wage Rate Impact for 3%Increase
Base Hourly Rate %Increase $Increase Est. Hours Impact
Living Wage Rate 11.9000 0.0300 0.3600 888,949.0000 320,021.6400
Health Benefits 3.2500 0.0300 0.1000 888,949.0000 88,894.9000
Total 15.1500 0.4600 408,916.5400
1 CPI Increase for all item from the BLS report increase a total of 7%from December 2020 trough December
2021. However,per Section 2-408, any increase cannot exceed 3%.
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