Amendment No. 4 to the Contract with United Services, Inc. AMENDMENT NO.4 TO THE CONTRACT
BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA
AND
UNITED SERVICES, INC.
This Amendment No.4("Amendment")to the Contract, dated February 24, 2014,
by and between the City of Miami Beach, Florida, a municipal corporation organized and
existing under the laws of the State of Florida, having its principal place of business at
1700 Convention Center Drive, Miami Beach, Florida 33139 (the "City"), and United
Services, Inc., a New Jersey corporation, authorized to do business in Florida, having its
principal place of business at 4M, Forest Street, Kearny, NJ 07032 (the"Contractor'), is
entered into this a9 day of //pve ke,y- , 2018.
RECITALS
WHEREAS, on February 12, 2014, the Mayor and City Commission approved the
award of Invitation to Bid ("ITB") No. 269-2013-ME for Janitorial Services, City-wide(the
"ITB") to United Services, Inc. ("Contractor") in an estimated annual amount of
$1,879,139;and.
WHEREAS, on February 24, 2017, the City and Contractor executed the Contract,
which incorporated the ITB and the Contractor's bid, for an initial term of three(3)years,
with two(2)one-year renewal options at the City's discretion;and
WHEREAS, on June 7, 2017,the Mayor and City Commission adopted Resolution
No. 2017-29874, approving and authorizing the execution of Amendment No. 1 to the
Contract, and increasing the Contract's not to exceed annual amount to $2,423,302,
subject to securing budgetary approvals; and
WHEREAS, on the purpose of Amendment No. 1 was to add certain sites and
services, and provided the City Manager with the authority to amend the Contract,
including the reduction and addition of sites and services; and
WHEREAS, on June 23, 2017, the City and Contractor executed Amendment No.
1 to the Contract; and
WHEREAS, on October 24, 2017, the City and Contractor executed Amendment
No. 2 to the Contract to amend the level of services in several locations and to pay the
Contractor a lump sum amount of 59,221.00 to cover the living wage increase mandated
in Ordinance No. 2014-3897; and
WHEREAS,on May 25, 2018, the City and Contractor executed Amendment No. 3
to the Contract to increase the service hoursat four (4) existing parking garages in the
amount of$388,683.36;and
Page 1 of 4
WHEREAS, on October 18, 2017, the Mayor and City Commission adopted
Ordinance No. 2017-4143, attached as Exhibit "A" hereto, which amended certain
provisions of the City's Living Wage Ordinance (the"Ordinance") as codified in Sections
2-407 through 2-410 of the City of Miami Beach Code of Laws and Ordinances(the"City
Code"); and
WHEREAS, the primary purpose of the amendment to the Ordinance was to
adjust and increase the hourly living wage rate and health benefit paid by service
contractors covered under the Ordinance, using a "phased-in" approach over a three
year period,commencing on January 1 2018, as follows:
• Effective January 1, 2018, covered employees must be paid a living wage rate of
no less than$11.62 per hour with health care benefits of at least$2.26 per hour,
or a living wage rate of no less than$13.88 per hour without health care benefits;
and
• Effective January 1, 2019, covered employees must be paid a living wage rate of
no less than $11.70 per hour with health care benefits of at least$2.74 per hour,
or a living wage rate of no less than$14.44 per hour without health care benefits;
and
m Effective January 1, 2020, covered employees must be paid a living wage rate of
noless than $11.78 per hour with health care benefits of at least$3.22 per hour,
or a living wage rate of no less than$ 15.00 without health care benefits;and
WHEREAS, in order to assure that covered service contractors doing business with the
City continue to comply with the provisions of the Ordinance as amended it is necessary
to amend all the current contracts between the City and service contractors subject to
and covered by the provisions of the Ordinance.
NOW THEREFORE, in consideration of the mutual promises and conditions
contained herein, and other good and valuable consideration,the sufficiency of which is
hereby acknowledged, the City and Contractor hereby agree to amend the Contract as
follows:
. 1. ABOVE RECITALS.
The above recitals are true and correct and are incorporated as part of this
Amendment.
2. MODIFICATIONS.
The Contract is hereby modified to add the following:
(a) The City will pay Contractor a lump sum payment of$45,803.20 to cover
the unpaid increased labor cost, as a result of the modifications to the
Ordinance, for services provided to the City, pursuant to the Contract,
from January 1,2018 through September 30, 2018.
(b) Based upon the approved City budget for FY 2018-2019, from October 1,
2018 through December 31, 2018, Contractor will invoice the City, on a
monthlybasis, and additional $0;63 per hour ($0.57 for the living wage
impact and $0.06 for related payroll taxes) for employees working under
Page 2 of 4
the Contract, to cover the increase in the minimum wage rate, based
upon the applicable minimum wage rate of$13.88 per hour.
(c) Based upon the approved City budget for FY 2018=2019, effective
January 1, 2019, for calendar year 2019, Contractor will invoice the City,
on a monthly basis, an additional $1.25 per hour ($1.13 for the living
wage impact and $0.12 for related payroll taxes) for employees working
under the Contract, to cover the increase in the minimum wage rate,
based upon the applicable minimum wage rate of$14.44 per hour.
(d) Similarly, any increase in the minimum wage for calendar year 2020 shall
be subject to funding approval by the City Commission during the 2019-
2020 fiscal year budgetary process.
3. RATIFICATION.
Except as amended herein, all other terms and conditions of the Contract shall
remain unchanged and in full force and effect. In the event there is a conflict
between the provisions of this Amendment and the Contract, the provisions of
this Amendment shall govern.
THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK
•
Page 3 of 4
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
executed by their appropriate officials, as of the date first entered above.
FOR CITY: CITY OF MIAMI =EACH, FLORIDA
ATTEST:
'4111/4111111!",--A, • %%waq i.
af.el E. Granado, Cit-1 CI!" 'JI ,r►i 717. ales, City Manager
•
NOV 2 9 2019 ` . ,
Date ENco co . `
Dnp/126
FOR CONSULTANT: =I4NI-T-ED SERVICES, INC.
ATTEST: )
2
By:
ilkj►,.'1c
Secretary - \IV Presid=nt
;1?-ethtd,v_ titre
Print ame r Print Name
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Dat-
APPR
Page 4 of4OVED AS TO
FORM&LANGUAGE
&FOR EXF��ON
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City Attorney
ORDINANCE NO. 2017-4143
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CITY OF MIAMI
BEACH CODE, ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE VI,
ENTITLED "PROCUREMENT," BY AMENDING DIVISION 6, ENTITLED
"LIVING WAGE REQUIREMENTS FOR SERVICE CONTRACTS AND CITY
EMPLOYEES," BY AMENDING SECTION 2-408, ENTITLED "LIVING WAGE,"
BY INCREASING THE CURRENT LIVING WAGE RATE OF $11.62 PER HOUR
WITH HEALTH CARE BENEFITS OF AT LEAST $1.69 PER HOUR, OR NO
LESS THAN $13.31 PER HOUR WITHOUT HEALTH CARE BENEFITS, IN A
"PHASE-IN" APPROACH COMMENCING ON JANUARY 1, 2018 AND
ENDING ON DECEMBER 31, 2020 AS FOLLOWS: 1) A LIVING WAGE OF NO
LESS THAN $11.62 PER HOUR WITH HEALTH CARE BENEFITS OF AT
LEAST $2.26 PER HOUR, OR A LIVING WAGE RATE OF NO LESS THAN
$13.88 PER HOUR WITHOUT HEALTH CARE BENEFITS, COMMENCING
JANUARY 1, 2018, 2) A LIVING WAGE RATE OF NO LESS THAN $11.70 PER
HOUR WITH HEALTH CARE BENEFITS OF AT LEAST $2.74 PER HOUR, OR
A LIVING WAGE RATE OF NO LESS THAN $14.44 PER HOUR WITHOUT
HEALTH CARE BENEFITS, COMMENCING ON JANUARY 1, 2019, AND 3) A
LIVING WAGE RATE OF NO LESS THAN $11.78 PER HOUR WITH HEALTH
CARE BENEFITS OF AT LEAST $3.22 PER HOUR, OR A LIVING WAGE
RATE OF $15.00 PER HOUR WITHOUT HEALTH CARE BENEFITS,
COMMENCING ON JANUARY 1, 2020 AND ENDING ON DECEMBER 31,
2020; BY REQUIRING THAT COMMENCING ON JANUARY 1, 2021, AND
EACH YEAR THEREAFTER, ANY INCREASE TO THE SUPPLEMENTAL
HEALTH CARE BENEFITS RATE, AS APPROVED BY COMMISSION, BE '
CALCULATED USING THE MIAMI CONSUMER PRICE INDEX EXCLUSIVELY
FOR "MEDICAL CARE" FOR ALL URBAN CONSUMERS (CPI-U) IN THE
MIAMI/FT. LAUDERDALE AREA; AND, PROVIDING FOR REPEALER,
SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.
WHEREAS, pursuant to Section 2-408(a) of the Code of the City of Miami Beach, any
service contractor entering into a covered services contract with the City, as defined in Section
2-407, must pay to all its employees, who provide services under the covered contract, the
stipulated living wage rates, as approved by the City Commission; and
WHEREAS, pursuant to Section 2-408(d) of the City of Miami Beach Code, the living
wage rate may, by resolution of the City Commission, be indexed annually for inflation using the
Consumer Price Index for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale area, issued by
the U.S. Department of Labor, Bureau of Labor Statistics; and
WHEREAS, at its April 26, 2017 meeting, the City Commission, pursuant to Agenda
Item C4-G, approved a referral to the Finance and Citywide Projects Committee (the
"Committee") for a discussion on whether or not to change the current Living Wage hourly rate;
and
WHEREAS, at its July 10, 2017 meeting, after several discussions, and after considering
all available options, the Committee recommended indexing the living wage rate cumulatively by
5.62% in a "Phase-In" approach to catch up with inflation from previous years (from January 1,
2016 through December 31, 2016, and from January 1, 2017 through December 31, 2017)
when no living wage increases took place; and further to require that commencing on January 1,
2021 and thereafter, any annual adjustment for inflation to the supplemental health care benefit
hourly rate, as approved by the City Commission, be calculated using the Miami Consumer
Price Index exclusively for "medical care" for all Urban consumers (CPI-U), Miami/Ft.
Lauderdale area; and
WHEREAS, after considering the Committee's recommendation during First Reading of
this Ordinance on September 25, 2017, the Mayor and City Commission directed the City's
Administration to increase the health care benefit, by at least 50 cents per hour the first year,
with a pathway to make the living wage rate without health care benefits at least $15.00 per
hour using a"phase-in" approach; and
WHEREAS, using a "phase-in" approach, the new hourly living wage rates, as approved
by the City Commission, will be as follows:
• Effective January 1, 2018, covered employees must be paid a living wage rate of no less
than $11.62 per hour with health care benefits of at least$2.26 per hour, or a living wage
rate of no less than $13.88 per hour without health care benefits; and
• Effective January 1, 2019, covered employees must be paid a living wage rate of no less
than $11.70 per hour with health care benefits of at least $2.74 per hour, or a living
wage rate of no less than $14.44 per hour without health care benefits; and
• Effective January 1, 2020, covered employees must be paid a living wage rate of no less
than $11.78 per hour with health care benefits of at least $3.22 per hour, or a living
wage rate of no less than $15.00 without health care benefits; and
WHEREAS, all existing covered service contracts and future solicitations for covered
services shall reflect and comply with all provisions herein, and as may be amended from time
to time.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF'MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1: That Chapter 2, Article VI, Division 6, Section 2-408 of the Code of the City of
Miami Beach is hereby amended as follows:
CHAPTER 2
ADMINISTRATION
* * *
ARTICLE VI. PROCUREMENT
* * *
DIVISION 6. LIVING WAGE REQUIREMENTS FOR SERVICE CONTRACTS
AND CITY EMPLOYEES
* * *
Sec. 2-408. Living wage.
(a) Living wage paid. --- . - - ' - -- - -- -• - - --- - -- - - - •
Using a "phase-in" approach , taw
hourly living wage rates are adopted as follows:
(1) Effective January 1, 2018, covered employees must be paid a living wage
rate of no less than $484 11.•2 •er hour with health care benefits of at
least $‘74 per hour, or a living wage rate of no less than $ 13.88
per hour without health care benefits;
(2) Effective January 1, 2019, covered employees must be paid a living wage
rate of no less than $4Q4a6 1 I •er hour with health benefits of at least
$ 2/4 per hour, or a living wage rate of no less than $4a44 14.44 per
hour without health care benefits;
and any incro-aco in tho EP-1 for all urban concumcrc (CPI U) for tho
health caro benefits Tato in scar 2019 (if any), ac approved by tho eity
commissiow
(3) Effective January 1, 2020, covered employees must be paid a living wage
rate of no less than $4 11.78 •er hour with health care benefits of at
least$4 9 3.22 per hour, or a living wage rate of no less than $14. 15.00
per hour without health care benefits,; e - - • •• - -- - : - e
commission.
(b) Health benefits; eligibility period. For a covered employer or the city to comply with the
living wage requirements of this division by choosing to pay the lower wage scale
available when a covered employer also provides health care benefits, such health
care benefits shall consist of payment of at least$1.69 $4 2.26 per hour toward the
provision of a health care benefits plan for covered employees and their dependents
effective January 1, 2018, and thereafter, as provided in subsections 2-408(a)(1)-(3).
If the health care benefits plan of a covered employer requires an initial period of
employment for a new employee to be eligible for health care benefits (eligibility
period) the living wage requirements of this division shall be deemed to have been
complied with during the eligibility period, provided the covered employer commences
to pay the applicable living wage rate without health care benefits, effective as of the
date of hire of the covered employee.
Upon completion of the eligibility period, and provided the new employee will be
provided health care benefits, a covered employer may commence to pay the
applicable living wage rate with health care benefits.
Proof of the provision of health care benefits must be submitted to the city's
procurement director to qualify for the wage rate for employees with health care
benefits.
(c) Annual open enrollment/election of benefits. If a covered employee is being paid the
hourly living wage rate with health care benefits and elects, during such period of time
(but no less than once during the covered employer's fiscal year) on which the covered
employer permits its employees an opportunity to change their health benefits plan
coverage (hereinafter such election period shall be referred to as the "annual open
enrollment period") to no longer continue receiving coverage under the employer's
health benefits plan, then notwithstanding the covered employer's continuing to offer a
health benefits plan to employees - the covered employee (electing out of coverage
during the annual enrollment period) shall, by the next pay period, be paid the
applicable hourly living wage rate without health care benefits. The covered employer
may, in its reasonable judgment and discretion, determine the length of time for the
annual open enrollment period; may require employees to complete and return a
benefits election form; and, in the event that a covered employee does not complete
and return such election form to the covered employee during the prescribed time of
the annual open enrollment period, then the covered employer may treat the covered
employee as having elected to continue with the health plan benefits coverage (then in
effect) and, accordingly, may continue to pay the covered employee the applicable
hourly living wage rate with health benefits.
(d) Indexing. The living wage rate and health Gare benefits rate may, by resolution of the
city commission, be indexed annually for inflation using the Miami PMSA Consumer
Price Index for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale, issued by the U.S.
Department of Labor's Bureau of Labor Statistics. Commencing in Fisea' Yea' 2O1 ?
on January 1. 2021, the supplemental health care benefits rate (the per hour rate
towards health benefits) may, by resolution of the city commission, be separately
indexed annually for inflation using the Miami PMSA Consumer Price Index for all
Urban Consumers (CPI-U) for the Miami/Ft. Lauderdale area, for medical care only, as
issued by the U.S. Department of Labor's Bureau of Labor Statistics. Notwithstanding
the preceding, no annual index shall exceed three percent; nor shall an annual
increase exceed the corresponding annual compensation increase (if any) provided to
unrepresented (i.e., unclassified) city employees. The city commission may also, by
resolution, elect not to index the living wage rate in any particular year, if it determines
it would not be fiscally sound to implement same (in a particular year). The
determination to index (or not index) the living wage rate shall be considered annually
during the city commission's review and approval of the city's annual operating budget.
In the event that the city commission has determined, in any particular fiscal year (or
years), to not index the living wage rate, and thereafter determines that making up all
or any part of the prior year's (or years') unindexed percentage would not have an
adverse fiscal impact upon the city, then the city commission shall also have the right,
but not the obligation, to cumulatively index the living wage rate to "make-up" for any
deficiencies in the prior year (or years) where there was (were) no increase(s) (the
"catch up" election). The "catch-up" election must be approved by resolution, and may
only be considered during the city commission's review and approval of the city's
annual operating budget.
* * *
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. CODIFICATION.
It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby
ordained that the provisions of this Ordinance shall become and be made part of the Code of
the City of Miami Beach, Florida. The sections of this Ordinance may be renumbered or re-
lettered to accomplish such intention, and the word "ordinance" may be changed to "section,"
"article," or other appropriate word.
SECTION 5. EFFECTIVE DATE.
This Ordinance shall take effect on the 1st day of January, 2018.
PASSED AND ADOPTED this ty day of Och6,K , 2017.
ATTEST: •
10,/
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a- �i�Ore,,:.Mayor
Rafael E. Granado, City Clerk `; - 17�
Underline denotes additions c; '''�` \ `�i✓1,� APPROVED AS TO
•
CSrikethrough�gh denotes deletions`. ." `r: `� ''� '/, FORM & LANGUAGE
Double underline denotes additioneefter First'Reefing`.'y &FOR E UTION I I
denotes deletions after Flrst'Reading Z..st., .{� �� f _ 4
7
City Attorney 1:5( Dote
(Sponsored by: Commissioner Ricky Arriola)
Ordinances - R5 H
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: October 18, 2017
10:35 a.m. Second Reading Public Hearing
SUBJECT AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CITY OF MIAMI
BEACH CODE, ENTITLED "ADMINISTRATION," BY AMENDING ARTICLE VI,
ENTITLED "PROCUREMENT," BY AMENDING DIVISION 6, ENTITLED "LIVING
WAGE REQUIREMENTS FOR SERVICE CONTRACTS AND CITY EMPLOYEES,"
BY AMENDING SECTION 2-408, ENTITLED "LIVING WAGE," BY INCREASING
THE CURRENT LIVING WAGE RATE OF $11.62 PER HOUR WITH HEALTH CARE
BENEFITS OF AT LEAST $1.69 PER HOUR, OR NO LESS THAN $13.31 PER
HOUR WITHOUT HEALTH CARE BENEFITS, IN A "PHASE-IN" APPROACH
COMMENCING ON JANUARY 1, 2018 AND ENDING ON DECEMBER 31, 2020 AS
FOLLOWS: 1) A LIVING WAGE OF NO LESS THAN $11.62 PER HOUR WITH
HEALTH CARE BENEFITS OF AT LEAST $2.26 PER HOUR, OR A LIVING WAGE
RATE OF NO LESS THAN $13.88 PER HOUR WITHOUT HEALTH CARE
BENEFITS, COMMENCING JANUARY 1, 2018, 2) A LIVING WAGE RATE OF NO
LESS THAN $11.70 PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST
$2.74 PER HOUR, OR A LIVING WAGE RATE OF NO LESS THAN $14.44 PER
HOUR WITHOUT HEALTH CARE BENEFITS, COMMENCING ON JANUARY 1,
2019,AND 3)A LIVING WAGE RATE OF NO LESS THAN $11.78 PER HOUR WITH
HEALTH CARE BENEFITS OF AT LEAST $3.22 PER HOUR, OR A LIVING WAGE
RATE OF $15.00 PER HOUR WITHOUT HEALTH CARE BENEFITS,
COMMENCING ON JANUARY 1, 2020 AND ENDING ON DECEMBER 31, 2020; BY
REQUIRING THAT COMMENCING ON JANUARY 1, 2021, AND EACH YEAR
THEREAFTER, ANY INCREASE TO THE SUPPLEMENTAL HEALTH CARE
BENEFITS RATE, AS APPROVED BY COMMISSION, BE CALCULATED USING
THE MIAMI CONSUMER PRICE INDEX EXCLUSIVELY FOR "MEDICAL CARE"
FOR ALL URBAN CONSUMERS (CPI-U) IN THE MIAMI/FT. LAUDERDALE AREA;
AND, PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN
EFFECTIVE DATE.
RECOMMENDATION
Adopt the Ordinance.
ANALYSIS
In the current fiscal year, the minimum hourly ("Living Wage") rate paid to covered employees of
applicable City service contractors is $11.62 per hour, with health benefits of at least$1.69 per hour,
or $13.31 per hour without health benefits. These rates were last indexed by the City Commission
on September 30, 2014 with an effective date of January 1, 2015. No increases were approved for
Page 500 of 1633
the following periods between January 1, 2016 — December 31, 2016 and January 1, 2017 —
December 31, 2017.
Pursuant to Section 2-408(d) of the City of Miami Beach Code, the living wage rate may, by
resolution of the City Commission, be indexed annually for inflation using the Consumer Price Index
for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale area, issued by the' U.S.. Department of
Labor, Bureau of Labor Statistics.
According to the City Code, the City Commission may: 1) index the Living Wage rate annually; 2)
index the Living Wage rate cumulatively to "catch up" for any prior year(s) where there was/were no
increase(s); or 3) may elect to forego any increases if it determines it would not be fiscally sound to
do so.
At its April 26, 2017 meeting, the City Commission, pursuant to Agenda Item C4-G, approved a
referral to the Finance and City-Wide Projects Committee (the "Committee") for a discussion on
whether or not to change the current Living Wage hourly rate. The discussion item was originally
presented to the Committee at its May 19, 2017, meeting for indexing the living wage rate. At that
time, representatives of the Service Employees International Union (SEIU) also presented
recommendations to the Committee that it proposes for both the living wage rates and amendments
to the language and requirements of the Living Wage Ordinance (the "Ordinance"). Following
the discussion of the information presented by both the Administration and SEIU, the Committee
deferred the discussion to its June 30, 2017, meeting and requested staff to meet with the
representatives of SEIU to determine the fiscal impacts of the different rates proposed and to provide
an analysis of the amendments to the City's living wage ordinance proposed by SEIU.
At its June 30, 2017, meeting, the Committee considered the information requested, which included
the proposed living wage rates, each rate's potential fiscal impact as noted in the table below.
Option Agency LW Health LW Potential
Rate Benefit Rate Fiscal
with Minimum without Impact
Health Amount Health
Benefits Benefits
Miami
1 Beach $11.91 $1.73 $13.64 $ 351,622
(single year
option)
Miami
2 Beach $12.27 $1.79 $14.06 $ 799,140
(catch up
option)
3 SEIU $13.00 $3.16 $16.16 $3,036,732
On June 30, 2017, the Committee directed staff to consider any circumstances that may reduce the
fiscal impact of the living wage rate options_noted above. In carrying out the direction of the
Committee, staff considered two scenarios that may reduce the fiscal impact of any increase:
1. Are any contractor employees at or above any proposed rate and, therefore. not eligible for an
increase? In this scenario, only the fiscal impact from reimbursing contractors for those
employees that would actually receive the increase is considered in the Revised Potential
Fiscal Impact.
2. Is the City considering reductions in the current level of service for any of the contracts to which
the living wage rate currently applies? Since the City is, in fact, considering reductions in the
Page 501 of 1633
current level of service for the contracts noted below in 2a-2c, the fiscal impact of the living
wage rate increase may be reduced by the corresponding reduction in the level of service. The
portion of Revised Potential Fiscal Impact indicated in the table below has been adjusted for
the estimated reduction in the level of service in the following contracts:
a-. Security Guards. The Emergency Management Department is currently working
on a plan to reduce a percentage of security guards deployed city wide.
b . Temporary Labor Services. The Sanitation Division of the Public Works
Department has been and is planning to continue to reduce the number of temporary
workers it utilizes because it plans to continue filling the full-time positions already
allocated in its budget.
c . Tennis Management. Pursuant to Resolution 2017-29897 approved by the City
Commission on June 7, 2017, the Parks and Recreation Department is implementing a
reduction in the level of service for the tennis management contract.
d. Other areas. The impact of any increase can be further mitigated by the reduction
of service in other contracts that may be currently being considered. For example, the
deployment of the gated revenue control system in the City parking garages may result
in a reduction in the number of parking garage attendants required. The same is the
case for the number of temporary office personnel contracted through one of the City's
temporary services (clerical and para-professional) contracts. However, the potential
reduction in these areas is not yet known and the Revised Potential Fiscal Impact
indicated in the table below has not been adjusted for any potential future reduction.
Based on the foregoing, the table below provides Revised Potential Fiscal Impacts for the options
being considered by the Committee on July 10, 2017.
Option Agency LW Health LW Potential Revised
Rate Benefit Rate Fiscal Potential
with Minimum without Impact Fiscal
Health Amount Health (Maximum) Impact
Benefits Benefits (Based on
Current
Employee
Rates and
Service
Reductions)
1 Miami
Beach
(single $11.91 $1.73 $13.64 $ 351,622 $ 234,985
year
option)
2 Miami
Beach $12.27 $1.79 $14.06 $ 799,140 $ 586,364
(catch up
option)
3 SEIU $13.00 $3.16 $16.16 $3,036,732 1$2,395,681
1There are no City employees whose hourly rates are below Options 1 and 2. A number of City
employee hourly rates are below the rate in Option 3. These figures do not include any adjustments
that may be required in the hourly rates of employees currently below the rate stipulated in Option 3.
Page 502 of 1633
That figure is estimated at approximately$150,000.
On June 30, 2017, the Committee also requested options for staggering the implementation of rate
increases to mitigate the impact on any given year. One approach for doing so is a phased-in option
over three (3) years. The tables below shows some potential options for phasing in the rate
increases for Options 2 and 3. A longer phase-in period (e.g., five years) is also an option at the
Committee's discretion, especially for Option 3.
Phase-in for Option 2
Current Option 2 Difference 2018 2019 2020
Rate Rate
$13.31 $14.06 $.75 $13.56 $13.81 $14.06
(.25/year for 3 (13.31+.25) (13.56+.25) (13.81+.25)
years) plus any plus any
increase in increase in
CPI for CPI for
2019 2020
Fiscal Impact
$586,364 $195,455 $195,455 $195,455
plus the plus the
($195,455/year impact of impact of
for 3 years) any rate any rate
increase in increase in
in 2019 in 2020
Phase-in for Option 3
Current Option 3 Difference 2018 2019 2020
Rate Rate
$13.31 $16.16 $.2.85 $14.26 $16.16
(.95/year for 3 (13.31+.95) $15.21 (15.21+.95)
years) plus any
(14.26+.95) increase in
plus any CPI for
increase in 2020
CPI for 2019
Fiscal Impact $798,560 $798,560 $798,560
$2,395,681 plus the plus the
impact of impact of
($798,560.33/year any rate any rate
for 3 years) increase in increase in
in 2019 in 2020
After considering all options, the Committee recommended approval of the Option 2 Phase-in. This
option consists of indexing current living wage rates by a 5.62% cumulatively increase in a "Phase-
In" approach to catch up with inflation from previous years when no living wage increases took
place; and further to require that commencing on fiscal year 2019 and thereafter, any annual
adjustment for inflation to the supplemental health care benefits hourly rate, as approved by the City
Commission, be calculated using the Miami Consumer Price Index exclusively for "medical care" for
all Urban consumers (CPI-U) in the Miami/Ft. Lauderdale area.
On September 25, 2017, after considering the Committee's recommendation during First Reading of
this Ordinance, the Mayor and City Commission directed the City's Administration to increase the
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health care benefit, by at least 50 cents per hour the first year, with a pathway to make the living
wage rate without health care benefits at least $15.00 per hour using a "phase-in" approach. The
new pathway or "Phase-in" approach will take effect as reflected in the revised Ordinance
(attached).
CONCLUSION
The Mayor and City Commission directed the City Administration to increase the current health care
benefit, by at least 50 cents per hour the first year, with a pathway to make the living wage rate
without health care benefits at least$15.00 per hour using a "phase-in"approach.
Using a "phase-in" approach commencing on January 1, 2018 and ending on December 31, 2020,
the new living wage rates, as approved by the Mayor and City Commission, will be as follows:
1. Effective January 1, 2018, covered employees must be paid a living wage rate of no less than
$11.62 per hour with health care benefits of at least $2.26 per hour, or a living wage rate of no
less than $13.88 per hour without health care benefits.
2. Effective January 1,_2019, covered employees must be paid a living wage rate of no`less than
$11.70 per hour with health care benefits of at least$2.74 per hour, or a living wage rate of no
less than $14.44 per hour without health care benefits.
3. Effective January 1, 2020, covered employees must be paid a living wage rate of no less than
$11.78 per hour with health care benefits of at least$3.22 per hour, or a living wage rate of no
less than $15.00 without health care benefits.
Furthermore, commencing on January 1, 2021, and each year thereafter, any increase to the
supplemental health care benefits rate, as approved by Commission, be calculated using the Miami
Consumer Price Index exclusively for "Medical Care" for all Urban Consumers (CPI-U) in the
Miami/Ft. Lauderdale area.
KEY INTENDED OUTCOMES SUPPORTED
Improve City's Managerial Leadership To Reward Innovation And Performance
FINANCIAL INFORMATION
The Phase-in approach will help mitigating the total estimated budget impact of $1,339,129, which
will have an annual estimated impact of $446,376 commencing on January 1, 2018 and ending on
December 31, 2020.
Legislative Tracking
Procurement
Sponsor
Vice-Mayor Ricky Arriola
ATTACHMENTS:
Description
o Ordinance
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