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2011-27752 Reso 7-- ■ RESOLUTION NO. 2011 -27752 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RE- AFFIRMING THE NEW LIVING WAGE RATES FOR FISCAL YEAR (FY) 2011 -2012, IN ACCORDANCE WITH THE THREE YEAR "PHASE -IN" APPROVED PURSUANT TO ORDINANCE NO. 2010 -3682; WITH SUCH RATES TO BE EFFECTIVE OCTOBER 1, 2011 AS FOLLOWS: $10.72 PER HOUR WITH CONTRIBUTIONS TOWARDS HEALTH BENEFITS OF AT LEAST $1.45 PER HOUR, AND $12.17 PER HOUR WITHOUT BENEFITS. WHEREAS, at its June 9, 2010 meeting, the Mayor and City Commission adopted Ordinance No. 2010 -3682, which amended the City's Living Wage Ordinance (as codified in sections 2 -407 thru 2 -410 of the Miami Beach City Code, and herein referred to as the Ordinance); and WHEREAS, using a proposed three (3) year "phase -in" approach, the new hourly living wage rates were adopted as follows: • commencing with City Fiscal Year 2010 -11 (October 1, 2010), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hr, and $11.41/hr without benefits; • commencing with City Fiscal Year 2011 -12 (October 1, 2011), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits; and • commencing with City Fiscal Year 2012 -13 (October 1, 2012), the hourly living rate will be $11.28/hr with health benefits of at least $1.64/hr, and $12.92/hr without benefits; and WHEREAS, effective October 1, 2011, service contractors subject to the provisions of the Ordinance shall be required to pay all employees who provide services for covered service contracts, the new living wage rates of $10.72/hr. with health benefits of at least $1.45/hr, and $12.17/hr without benefits; and WHEREAS, the impact of the living wage increase for fiscal year 2011 -2012 is as follows: General Fund $54,266, Internal Service $6,639, Enterprise Fund $283,754, and RDA $20,161 for a Citywide approximate total of $364,820. WHEREAS, the new living wage rates apply to 19 contracts, awarded to 46 contractors which provide the City with general services and employ over 700 employees; and I o eDjr- 2775 NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City Commission hereby re- affirms the new living wage rates for FY 2011 -12, in accordance with the three year "phase -in" approved pursuant to Ordinance No. 2010 -3682; with such rates to be effective October 1, 2011 as follows: $10.72 per hour with contributions towards health benefits of at least $1.45 per hour, and $12.17 per hour without benefits. PASSED AND ADOPTED this . 74jday of September, 2011. ATTEST: ' Alt," ....e ///' P ILO Peut.c MAY CITY CLERK ��,,.••u..v,„, a Pi \ -5- d : INCORP ORATED' T:\AGENDA\2011 \9 -14 -11 \Re -affirm Living Wa-s. F �k = R9% / pi t APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION > 2 3 f t. ../�'4'rd ttorney a te I COMMISSION ITEM SUMMARY Condensed Title: A Resolution Re- Affirming The New Living Wage Rates Effective October 1, 2011, Pursuant To Living Wage Ordinance No. 2010 -3682. Key Intended Outcome Supported: International Center for Innovation in Culture, Recreation and Business. Supporting Data (Surveys, Environmental Scan, etc.): 17% of business responding felt that Miami Beach was the best place to run a business, 25% felt that it was an above average place to run a business and 41%felt that it was an average to run a business. Also, 62% of business respondents would recommend Miami Beach to others as a place to run a business. Issue: Shall the City Commission Adopt the Resolution? Item Summary /Recommendation: At its June 9, 2010 meeting, the Mayor and City Commission passed and adopted Ordinance No. 2010 -3682, which amended the City's Living Wage Ordinance, Sections 2 -407 thru 2 -410 of the Miami Beach City Code, herein referred to as the "Ordinance ". Using a proposed three (3) year "phase -in" approach, the new hourly living wage rates were adopted as follows: • commencing with City Fiscal Year 2010 -11 (October 1, 2010), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hr, and $11.41/hr without benefits; • commencing with City Fiscal Year 2011 -12 (October 1, 2011), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits; and • commencing with City Fiscal Year 2012 -13 (October 1, 2012), the hourly living rate will be $11.28/hr with health benefits of at least $1.64/hr, and $12.92/hr without benefits. The Administration recommends that the Mayor and City Commission adopt the attached Resolution that re- affirms the new living wage rates for FY 2011 -12, in accordance with the three (3) year "phase -in" approach pursuant to Ordinance No. 2010 -3682, effective October 1, 2011. ADOPT THE RESOLUTION. Advisory Board Recommendation: Financial Information: Source of Amount Account Approved Funds: 1 2 3 OBPI Total Financial Impact Summary: City Clerk's Office Legislative Tracking: Gus Lopez ext. 6641 Sign - Offs: De • artme ' Director Assistant G; • er Cit Mana • er GL PDW 0 1 JM T:\AGENDA\201 :9 -2 - -11 \Re -affirm Living Wage rates FY12- . mmary.doc al AA I AAA I B EAC H f.F AGENDA ITEM R7 E DATE ( t - cs 7 --I� j MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Members of the City Commission FROM: Jorge M. Gonzalez, City Manager DATE: September 27, 2011 40 SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RE- AFFIRMING THE NEW LIVING WAGE RATES FOR FISCAL YEAR (FY) 2011 -2012, IN ACCORDANCE WITH THE THREE YEAR "PHASE -IN" APPROVED PURSUANT TO ORDINANCE NO. 2010 -3682; WITH SUCH RATES TO BE EFFECTIVE OCTOBER 1, 2011 AS FOLLOWS: $10.72 PER HOUR WITH CONTRIBUTIONS TOWARDS HEALTH BENEFITS OF AT LEAST $1.45 PER HOUR, AND $12.17 PER HOUR WITHOUT BENEFITS. BACKGROUND At its June 9, 2010 meeting, the Mayor and City Commission passed and adopted Ordinance No. 2010 -3682, which amended the City's Living Wage Ordinance, Sections 2 -407 thru 2 -410 of the Miami Beach City Code, herein referred to as the "Ordinance ". Using a proposed three (3) year "phase -in" approach, the new hourly living wage rates were adopted as follows: • commencing with City Fiscal Year 2010 -11 (October 1, 2010), the hourly living wage rate will be $10.16/hr. with health benefits of at least $1.25/hr, and $11.41/hr without benefits; • commencing with City Fiscal Year 2011 -12 (October 1, 2011), the hourly living wage rate will be $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits; and • commencing with City Fiscal Year 2012 -13 (October 1, 2012), the hourly living rate will be $11.28/hr with health benefits of at least $1.64/hr, and $12.92/hr without benefits. FISCAL IMPACT Effective October 1, 2011, service contractors as defined in the Ordinance shall be required to pay all employees, pursuant to Living Wage Ordinance No. 2010 -3682, the new living wage rates of $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without benefits. The impact of the living wage increase for fiscal year 2011- 2012 is as follows: General Fund $54,266, Internal Service $6,639, Enterprise Fund $283,754, and RDA $20,161 for a Citywide approximate total of $364,820. The new living wage rates apply to 19 contracts, awarded to 46 contractors which provide the City with general services and employ over 700 employees. Commission Memo Re- affirm Living Wage Rates for FY2012 September 27, 2011 Page 2 of 2 CONCLUSION The Administration recommends that the Mayor and City Commission adopt the attached Resolution hereby re- affirms the new living wage rates for FY 2011 -12, in accordance with the three year "phase -in" approved pursuant to Ordinance No. 2010- 3682; with such rates to be effective October 1, 2011 as follows: $10.72 per hour with contributions towards health benefits of at least $1.45 per hour, and $12.17 per hour without benefits. JM /PD /GL S T:\AGENDA\2011 \9- 27 -11 \Re -affirm Living Wage Rates FY12 - Memo.doc