Resolution 2023-32737RESOLUTION NO. 2023-32737
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 JULY 28, 2023
MEETING, TO INCREASE THE LIVING WAGE BY THREE PERCENT TO $12.63
PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST $3.45 PER HOUR,
OR $16.08 PER HOUR WITHOUT HEALTH CARE BENEFITS, EFFECTIVE
JANUARY 1, 2024; 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
RATES.
WHEREAS, 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; and
WHEREAS, on September 14, 2022, the Mayor and City Commission approved the living
wage rate for the calendar year 2023 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; and
WHEREAS, the City Code stipulates that the living wage rates may be adjusted annually
for inflation by the City Commission. Typically, rate increases are considered by the City
Commission during annual budget discussions, as an increase will have a budgetary impact when
contract rates are adjusted to compensate for the increased wage requirement; and
WHEREAS, as is customary, on March 27, 2023, the Mayor and City Commission
approved a referral to the Finance and Economic Resiliency Committee for a discussion and
recommendation to the City Commission on any increases to the current living wage rates that
the City Commission may want to consider for the calendar year beginning January 1, 2024; and
WHEREAS, as stipulated in the City Code, living wage rate increases may not exceed the
local area's corresponding Consumer Price Index ("CPI") or the cost of living (COLA) adjustment
approved for unclassified staff. The CPI increase for the local area for the preceding year (January
- December 2023) was approximately 9.9 % for the overall CPI and 3.4 % for the medical services
CPI. On September 28, 2022, the Mayor and Commission approved a COLA increase of three
percent (3%) effective April 10, 2023; and
WHEREAS, despite any increase in the CPI index, the City Code stipulates that the
increase to the living wage rates may not exceed the COLA increase approved for unclassified
employees. Therefore, any living wage increase recommended in the current budget cycle is
capped at 3%; and
WHEREAS, on July 28, 2023, the Finance and Economic Resiliency Committee
recommended a 3% increase to the living wage rates for the calendar year 2024; and
WHEREAS, the estimated fiscal impact of adopting a living wage increase by 3% is
$486,282.68; and
WHEREAS, If approved by the Mayor and City Commission, the living wage rate of no less
than $12.63 per hour with health care benefits of at least $3.45 per hour, or $16.08 per hour
without health care benefits will become effective on January 1, 2024.
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 accept the recommendation of the Finance and Economic Resiliency Committee at
its July 28, 2023 meeting, to increase the living wage by three percent to $12.63 per hour with
health care benefits of at least $3.45 per hour, or $16.08 per hour without health care benefits,
effective January 1, 2024; and further delegate to the City Manager or designee the authority to
amend any contract, as necessary, to implement the increase to the living wage rates.
PASSED AND ADOPTED this
ATTEST:
SEP 2 0 2023
Rafael E. Granado, City Clerk
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
City Attorney Date
'.3 day of September 2023.
Dan Gelber, Mayor
,ovll ORATE
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 13, 2023
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 AT ITS JULY
28, 2023 MEETING, TO INCREASE THE LIVING WAGE BY THREE
PERCENT TO $12.63 PER HOUR WITH HEALTH CARE BENEFITS OF AT
LEAST $3.45 PER HOUR, OR $16.08 PER HOUR WITHOUT HEALTH CARE
BENEFITS, EFFECTIVE JANUARY 1, 2024; 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 RATES.
The Administration recommends that the Mayor and City Commission adopt the Resolution
accepting the recommendation of the Finance and Economic Resiliency Committee, at its July
28, 2023, meeting to increase the living wage by three (3) percent (%), effective January 1,
2024. The Resolution also delegates to the City Manager or designee the authority to amend
any contract, as necessary, to implement the increase to the living wage rates.
• ► 19ff I�
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 14, 2022, are 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.
The City Code stipulates that the living wage rates may be adjusted annually for inflation by the
City Commission. Typically, rate increases are considered by the City Commission during
annual budget discussions, as any increase will have a budgetary impact because contract rates
are adjusted to compensate for the increased wage requirement.
As is customary, on March 27, 2023, the Mayor and City Commission approved a referral to the
Finance and Economic Resiliency Committee for a discussion and recommendation to the City
Commission on any increases to the current living wage rates that the City Commission may want
to consider for the calendar year beginning January 1, 2024. The referral was considered by the
Page 671 of 2938
Finance and Economic Resiliency Committee on July 28, 2023.
As background information, the living wage rates for local entities that enforce a living wage
requirement are listed in the table below.
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Miami Beach
$15.61
$12.26 $3.35
Miami
$15.00
$13.19 $1.81
Broward Coun
$18.65
$15.00 $3.65
Miami -Dade Cou
$18.73
$15.03 $3.70
As stipulated in the City Code, living wage rate increases may not exceed the local area's
corresponding Consumer Price Index ("CPI") or the cost of living (COLA) adjustment approved
for unclassified staff. The CPI increase for the local area for the preceding year (January -
December 2023) was approximately 9.9 % for the overall CPI and 3.4 % for the medical
services CPI. On September 28, 2022, the Mayor and Commission approved a COLA
increase of three percent (3%) effective April 10, 2023.
Despite any increase
wage rates may no
Therefore, any living
3%.
in the CPI index, the City Code stipulates that the increase to the living
exceed the COLA increase approved for unclassified employees.
wage increase recommended in the current budget cycle is capped at
To assist the Committee with determining the recommended increase, if any, to the living wage
rates for the subsequent calendar year, the Administration calculated the fiscal impact of each
1 % increase (up to 3%) to the living wage rates. See the table below.
M
# ISMS
fEd
1%
$15.77/HR w/o heafth benefits or
$162,267.48
$12.38/HR with health benefits of at least $3.38/HR
2%
$15.92/HR w/o health benefits or
$324,534.95
$12.51/HR with health benefits of at least $3.42/HR
3%
$16.08/HR w/o health benefits or
$486,282.68
$12.63/HR with health benefits of at least $3.45/HR
1 Based on current contract usage.
FINANCIAL INFORMATION
The FY 23/24 fiscal impact of adopting a 3% living wage increase is approximately $486,282.68
Page 672 of 2938
annually.
On July 28, 2023, after discussion, the Finance and Economic Resiliency Committee approved
a recommendation to the City Commission to increase the living wage rates by three (3) percent
(%) for the calendar year beginning January 1, 2024.
If approved by the Mayor and City Commission, the living wage rates of no less than $12.63 per
hour with health care benefits of at least $3.45 per hour or $16.08 per hour without health care
benefits will become effective on January 1, 2024.
The Administration recommends that the Mayor and City Commission adopt the Resolution
accepting the recommendation of the Finance and Economic Resiliency Committee, approved
at its July 28, 2023, meeting, to increase the living wage rates to no less than $12.63 per hour
with health care benefits or at least $3.45 per hour, or no less than $16.08 per hour without
health care benefits, effective January 1, 2024. The Resolution also delegates authority to the
City Manager, or designee, to amend any contract, as needed, to implement the increase to the
living wage rates.
• •I•1.
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Im viol !-
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Legislative Tracking
Procurement
ATTACHMENTS:
Description
u Resolution
No
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