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2013-28366 Reso RESOLUTION NO. 2013-28366 A RESOLUTION ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE (FCWPC) TO MAINTAIN FISCAL YEAR 2014 LIVING WAGE RATE LEVELS CONSISTENT WITH FISCAL YEAR 2013 RATE LEVELS WHEREAS, at its June 9, 2010 meeting, the Mayor and City Commission passed and adopted Ordinance No. 2010-3682 (the Ordinance), which amended the City of Miami Beach Living Wage Ordinance; and WHEREAS, effective October 1, 2010, service contractors, as applicable, were required to pay all employees the indexed hourly living wage rates established by the City based on the following three (3) year phase-in approach: • Commencing with City fiscal year (FY) 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 FY 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 FY 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, an indexing process was established that included considerations of current Living Wage rates to the Consumer Price Index for Urban Consumers (CPI-U) increases to be considered during the City's annual operating budget discussions; and WHEREAS, the City is currently exercising its final year of the three-year phase-in approach for indexing the Living Wage rate as referenced above; and WHEREAS, the process for subsequent considerations to index the Living Wage rate, as described in the Ordinance, allows for the Living Wage rate and health care benefits rate to be increased annually for inflation using the CPI-U for the Miami/Ft. Lauderdale region issued by the U.S. Department of Labor, Bureau of Labor Statistics; and WHEREAS, notwithstanding the preceding, the City's Living Wage Ordinance stipulates that no annual increase to the Living Wage rates for the employees of City service contractors shall exceed the corresponding annual compensation increase provided to unclassified City employees; and WHEREAS, the aforementioned was discussed at the Finance and Citywide Projects Committee (FCWPC) meeting dated August 21, 2013; and WHEREAS, given that the FY 2014 budget does not include a cost of living salary adjustment, the FCWPC unanimously agreed to maintain the FY 2014 living wage rate levels consistent with FY 2013 rate levels. 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 FCWPC to maintain Fiscal Year 2014 living wage rate levels consistent with Fiscal Year 2013 rate levels. PASSED AND ADOPTED this J��' ` day of Se h 2013. ATTEST: Rafaef Granado, City Clerk atti. Herr a Bower, ayor �1 BP TAGENDA\2013\September 30\Living W Imes' Y*2 1� , tion.doc INCORP ORATED: APPROVED AS TO FORM &LANGUAGE &FOR E TION torney ate COMMISSION ITEM SUMMARY Condensed Title:. A Resolution Accepting The Recommendation Of The Finance And Citywide Projects Committee To Maintain Fiscal Year 2014 Living Wage Rate Levels Consistent With Fiscal Year 2013 Rate Levels Key Intended Outcome Supported: Diversify Business Base in Miami Beach. Supporting Data (Surveys, Environmental Scan, etc.): Fiscal Year 2008/2009 survey responses resulted in 87% of businesses rated the City of Miami Beach as one of the best, above average, or average places to run a business.Also,67%of business respondents would recommend Miami Beach to others as a place to run a business. Issue: Should the City Commission Adopt the Resolution? Item Summa /Recommendation: The City is currently exercising its final year of the three-year phase-in approach for indexing the Living Wage rate.The process for subsequent considerations to index the Living Wage rate, as described in the Living Wage Ordinance, allows for the Living Wage rate and health care benefits rate to be increased annually for inflation(cost of living)using the CPI-U for the Miami/Ft. Lauderdale region issued by the U.S. Department of Labor, Bureau of Labor Statistics. However,notwithstanding the preceding,the City's Living Wage Ordinance stipulates that no annual increase to the Living Wage rates for the employees of City service contractors shall exceed the corresponding annual compensation increase provided to unclassified City employees. The aforementioned was discussed at the Finance and Citywide Projects Committee(FCWPC) meeting dated August 21, 2013. Given that the FY 2014 budget does not include a cost of living salary adjustment, the FCWPC unanimously agreed to maintain the FY 2014 living wage rate levels consistent with FY 2013 rate levels. Advisory Board Recommendation: On August 21, 2013 the Finance and Citywide Projects Committee discussed indexing the living wage rates for FY 2014 and unanimously agreed to follow the Ordinance, maintaining FY 2014 living wage rate levels consistent with FY 2013 rate levels. Financial Information: Source of Amount Account. Funds: 1 2 OB Total Financial Impact Summary: N/A City Clerk's Office Legislative Tracking: Sign-Offs: De Fart ` actor Assistant City na er City er AD KGB JL IVY T:\AGENDA\2013\September 30\Living Wage Rates FY 2014 Summary.doc MIAMIREACH AGENDA ITEM R70 1 DATE MIAMI BEACH City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139,wvvw.miamibeachfl.gov COMMISSION MEMORANDUM TO: Mayor Matti Herrera Bower and Me bers of the ity Commission FROM: Jimmy L. Morales, City Manager DATE: September 30, 2013 SUBJECT: A RESOLUTION ACCEPTING THE ECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTE (FCWPC) TO MAINTAIN FISCAL YEAR 2014 LIVING WAGE RATE LEVELS CONSISTENT WITH FISCAL YEAR 2013 RATE LEVELS BACKGROUND At its June 9, 2010 meeting, the Mayor and City Commission passed and adopted Ordinance No. 2010-3682 (the Ordinance), which amended the City of Miami Beach Living Wage Ordinance in the following particulars: 1. Effective October 1, 2010, service contractors, as applicable, were required to pay all employees the indexed hourly living wage rates established by the City based on the following three (3) year phase-in approach: • Commencing with City fiscal year (FY) 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 FY 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 FY 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. 2. An indexing process was established that included considerations of current Living Wage rates to the Consumer Price Index for Urban Consumers (CPI-U) increases to be considered during the City's annual operating budget discussions. The City is currently exercising its final year of the three-year phase-in approach for indexing the Living Wage rate as referenced above. The process for subsequent considerations to index the Living Wage rate, as described in the Ordinance, allows for the Living Wage rate and health care benefits rate to be increased annually for inflation using the CPI-U for the Miami/Ft. Lauderdale region issued by the U.S. Department of Labor, Bureau of Labor Statistics. However, notwithstanding the preceding, the City's Living Wage Ordinance stipulates that no annual increase to the Living Wage rates for the employees of City service contractors shall exceed the corresponding annual compensation increase provided to unclassified City employees. Commission Memorandum—Living Wage Rates for FY 2014 September 30, 2013 Page 2 The aforementioned was discussed at the Finance and Citywide Projects Committee (FCWPC) meeting dated August 21, 2013. Given that the FY 2014 budget does not include a cost of living salary adjustment, the FCWPC unanimously agreed to maintain the FY 2014 living wage rate levels consistent with FY 2013 rate levels. CONCLUSION The Administration recommends that the Mayor and City Commission accept the recommendation of FCWPC to maintain FY 2014 living wage rate levels consistent with FY 2013 ra levels. J LM/K /AD