Ordinance 94-2960 ORDINANCE NO. 94-2960
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING ARTICLE II, ENTITLED
"CONSTRUCTION CONTRACTS - MINIMUM WAGES AND BENEFITS" OF
MIAMI BEACH CITY CODE CHAPTER 31A, ENTITLED "PURCHASING" ,
AMENDING SECTION 31A-27 TO REQUIRE THAT, IN ALL CONSTRUCTION
CONTRACTS IN EXCESS OF $1, 000, 000 TO WHICH THE CITY IS A
PARTY, THE RATE OF WAGES AND FRINGE BENEFIT PAYMENTS SHALL
NOT BE LESS THAN THE PREVAILING RATE OF WAGES AND BENEFITS
FOR SIMILAR SKILLS IN A CLASSIFICATION OF WORK AS ESTABLISHED
BY THE FEDERAL REGISTER; PROVIDING PROCEDURES FOR
REEVALUATION OF THE $1, 000, 000 THRESHOLD EVERY THREE (3)
YEARS; ADDING SECTION 31A-32 REQUIRING THAT CONSTRUCTION
PROJECTS BE EVALUATED AND BID IN KEEPING WITH THE INTENT OF
SECTION 31A-27; PROVIDING FOR EXEMPTIONS FROM THE
REQUIREMENTS OF SECTION 31A-27; PROVIDING FOR A REPEALER,
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, City of Miami Beach Ordinance No. 86-2507 requires that,
for construction projects in excess of $500, 000 to which the City is a
party, the rate of wages and fringe benefits for laborers, mechanics
and apprentices employed by the contractor or subcontractor may not be
less than the prevailing rates published in the Federal Register for
similar work in the City of Miami Beach; and
WHEREAS, Ordinance No. 86-2507 was adopted in 1986 , and it is
necessary to update the $500 , 000 threshold in keeping with current
economic conditions; and
WHEREAS, the collective bargaining entities involved in the talks
relevant to the City of Miami Beach construction program and the
Administration have agreed that the changes set forth in this amendment
will serve the needs of the citizens of Miami Beach and of all persons
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affected by the Ordinance .
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA:
SECTION 1 . AMENDMENT OF ARTICLE II, CITY CODE CHAPTER 31A.
That Article II, entitled "Construction Contracts- Minimum Wages
and Benefits" of Miami Beach City Code Chapter 31A, entitled
"Purchasing" is hereby amended as follows :
Article II. Construction Contracts-
Minimum Wages and Benefits.
Sec. 31A-27 . Establishment of minimum wages .
Every construction contract in excess of i;T-c hund .cd thousand one
million dollars 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.
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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 one
million dollar threshold. In the event that the City Manager
recommends an adjustment , the City Commission shall hold a public
hearing regarding an amendment to this ordinance to provide for the
adjustment .
Sec. 31A-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.
Sec. 31A-29 . Notice Requirement.
On the date on which a laborer or mechanic commences work on a
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 .
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Sec. 31A-30 . Preemption by federal funding.
When 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) ] .
Sec . 31A-31 . Exceptions.
The provisions of this article shall not apply to any existing
-_- - - _ _ a . - - - - a notice for bids or request
6P Is.
tyre City of Miami B ach is requiring the construction of certain
improvements, including but not limited to road construction, as a
condition of the issuance of a development permit or to any
construction project performed by the City of Miami Beach utilizing its
own employees .
The provisions of Section 31A-27 shall not apply to the following
City of Miami Beach projects :
(a) water, except water treatment facilities and lift stations
(b) sewer, except sewage treatment facilities and lift stations
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(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 one
million dollars shall not be exempt .
In determining whether a construction project meets the one
million dollar estimated cost threshold in Section 31A-27, all segments
of the project , except land acquisition, architectural/engineering
design, and legal costs, shall be considered as one entirety.
Construction projects for which the estimated cost exceeds one million
dollars shall not be bid in a manner which would avoid the requirements
of Section 31A-27 .
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SECTION 2 . REPEALER.
All ordinances or parts of ordinances in conflict herewith be and
the same are hereby repealed.
SECTION 3 . SEVERABILITY.
If any section, subsection, clause or provision of this Ordinance
is held invalid, the remainder shall not be affected by such
invalidity.
SECTION 4 . EFFECTIVE DATE.
This Ordinance shall take effect on the 31st day of
December , 1994 . ,
PASSED and ADOPTED this 21st day �- December 1994 .
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ATTEST: 11,&
/r MAYOR
• Ck,+L.Oj� 1. -v-,,,L
CITY CLERK
1st reading 12/7/94
2nd reading 12/21/94
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FORM AP' 'OVED
•EPT. ,Or
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Date ''S !z-5.-9y
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CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139
COMMISSION MEMORANDUM NO. t )?-
gy
TO: Mayor Seymour Gelber and DATE: December 21, 1994
Members of the City Commission
FROM: Roger M. Canto
City Manager
SUBJECT:
PREVAILING WAGE ORDINANCE
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission adopt on Second Reading the
amendment to City Ordinance 86-2507 Prevailing Wage, changing the amount of the base from
$500.000 to $1.0 million. Further, every three years commencing in 1997,the City Manager
shall present a report to the City Commission regarding the increase in the construction cost
index for the South Florida area, if any, and a recommendation to the City Commission to adjust
the threshold of$1.0 million,to incorporate the change in the index. The $1.0 million threshold
shall not be circumvented by the breakdown of the overall project into separate bidding
packages. It will be the sum of the construction packages of the project that will determine its
value in reln to the threshold.
Further, the provisions of this Ordinance shall not apply to the following City 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 in excess of$1 million shall not be exempt.
BACKGROUND
The City Commission approved the Ordinance on First Reading December 7, 1994. City
Ordinance 86-2507 requires that City construction contracts of$500,000 or more include
contractors prevailing wage rates.
The implication for project cost of this requirement is the subject of substantial discussion.
AGENDA ITEM ' A
DATE 12-?-1-9q
Estimates range from eight(8)to twenty(20)percent dependent on the nature of the project. It
should be clear that there are also advantages to utilizing experienced labor provided by the
construction trades organizations.
At the September 26, 1994, Commission meeting,the determination was reached to schedule a
workshop on the prevailing wage ordinance. In order to clarify the issues the Administration met
with representatives of the construction trades. During that process the issues were resolved
leading to the proposed amended ordinance. Therefore the need for the workshop no longer
exists since an agreement has been reached.
CONCLUSION
Amendment to City Ordinance 86-2507 was approved on First Reading December 7, 1994.
The proposed amendments establish a reasonable basis for continuing a prevailing wage rate
requirement. The minimum project amount of$1.0 million will be adjusted as needed in the
future and many types of construction will not be included. A number of projects underway have
been excluded.
It should be clear that projects such as the hotels, movie theater and future parking garages will
• require thevailing wage rate based upon the City's ordinance or the infusion of Federal funds.
I wish to take this opportunity to thank Jack Lubin,Executive Assistant to the City Manager;
Buddy Hanowitz, Business Agent, Local Union 349; and Gary Waters,Business Manager,
International Union of Operating Engineers, who were very cooperative in resolving the concerns
relative to prevailing wage rates.
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