Amendment No. 1 to the Contract with SFM Services, Inc. AMENDMENT NO. 1 TO THE CONTRACT
BETWEEN
THE CITY OF MIAMI BEACH, FLORIDA
AND
SFM SERVICES, INC.
FOR CONTRACT PURSUANT TO,ITB 2014-275-LR
FOR GROUNDS MAINTENANCE-RIGHT OF WAY, PARKING FACILITIES,
LINCOLN ROAD AND COASTAL AREAS
This Amendment No.1 ("Amendment") to the. Contract, dated December 23, 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 SFM
Services, Inc., a Florida company, having its principal place of business at 9700 NW 79
venue, Hialeah Gardens, FL. 33016 ("Contractor"), is entered into this 7 day of
pixi=Mm , 2018 ("Effective Date") and hereby amends the Contract as follows:
RECITALS
WHEREAS, on November 19, 2014, the Mayor and City Commission approved the
award of Invitation to Bid ("ITB") No. 2014-275-LR for Grounds Maintenance-Right of
Way, Parking Facilities, Lincoln Road and Coastal Areas(the"ITB"); and
WHEREAS, on December23,2014,the City and Contractor executed the Contract
with respect to the ITB (the "Contract"), which services include Rights of Way South,
Rights of Way South RDA &. Rights of Way South Municipal Buildings, as set forth in
Attachment "B"of the Contract;and
WHEREAS, the Contract issubject to the City's Living Wage Ordinance (as
described below) per Appendix"A" Section 11 of the ITB; and
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 to their covered employees with the proposed
increases to be phased in over a three year period, commencing on January 1, 2018;
and
WHEREAS, commencing on January 1, 2018 and using a "phase-in" approach,
the proposed hourly living wage rates under the.Ordinance are 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,.
Page 1 of 4
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 healthcare benefits; and
WHEREAS; each year, as part of the annual budget process, the City
Commission considers whether or not it desires to revise or maintain the proposed living
wage rates via ordinance No. 2017-4143; and
WHEREAS; at its April 20, 2018 meeting, the Mayor and City Commission
accepted the recommendation of the Finance and Citywide Projects Committee, to
approve the 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), effective January 19, 2019; 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 contractsbetween 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 as follows:
(a) The City will pay.Contractor a lump sum payment of$16,730.28 to cover
the unpaid increased labor costs 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) Basedupon the approved City budget for FY 2018-2019,from.October 1,
2018 through December 31, 2018, Contractor_ will invoice the City, on a
monthly.basis, an additional $0.63 .per hour ($0.57 for the living, wage
impact and $0.06 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$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.
Page 2 of 4
(d) Similarly, any increase in the minimum wage for calendar year 2020 shall
be subject to 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.
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:
i l
Rafael .Granado, City Cler ,,j\t 8-71:10,4 L. Mo -les, City Manager
Date ORP
•
G- '•
ORATED= *i
•
•
FOR CONTRACTOR:
•,, cio ......SI�� p VICES, INC.
44,
ATTEST:
By:
Pre _nt
Jose Infante Christian Infante
Print Name Print Name
11/26/2018
Date
F:ATTO/TORG 1GISELAIFORMSIAMENDMENTSWMENDMENTTEMPLATE
APPROVED AS TO
FORM&LANGUAGE
8f FO EXI tUTION
Page 3 of 4 f`
.. ,�., . L
City Attorney 4561--. Dote
EXHIBIT A
LIVING WAGE ORDINANCE 2017-4143
II
• _ I
•
Page 4 of 4
�m�
EXHIBIT A
LIVING WAGE ORDINANCE 2017-4143
•
•
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 2408, 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) •
Sec.2-408. Living wage.
(a) Living wage paid. --- ' : . _ -- _ _ - -_ _ _ _ __ _ - __ __ _ -
Using a itUESA4440aelF°phase-in° approach , tleaew
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 $4,4:54 11.l2,? per hour with health care benefits of at
least$ 2, per hour,or a living wage rate of no less than$4448 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 911.0 per hour with health benefits of at least
.74 pelivin
r hour. or a g wage rata of no less than$3414 44 ger
hour without health care benefits;
eefflaiissie%
(3) Effective January 1, 2020, covered employees must be paid a living wage.
rate of no less than $ 1188 per hour with health care benefits of at.
least$ 9 3.22 per hour, ora living wage rate of no less than$-4 15.00
per hour without health care benefits.:
(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 least8 7.26 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)43).
•
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.
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 Cade 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 111 day of PC746€e ,2017.
ATTEST: •
ti, M;...
/ 4,r7A/i tub ci h o ,.•,,,,,'. ,,, y e„Mayor
Rafael E.Granada,City Clerk 1p1 -\• _ e $
Underline denotes additions --' `k APPROVED AS TO
denotes deletions`- r'_:%. .' .• N..1;/ FORM&LANGUAGE
Double underlir,9 denotes additionS•after Fi t:Fte inrg':` 4cttRZIf...ON. - Sc�denotes deletions a er.FlrMReading 0 4 — t
CityAttarney is:( Iote
(Sponsored by:Commissioner Ricky Arriola) .t''1
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 Comrrittee 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 kk
option)
Miami
Beach
2
(catch up $12.27 $1.79 $14.06 $ 799,140
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
Jncrease? 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. -1t• Aid_ •l �1 1= �_ e! - - • s- � � •r . • •I - . I alp 1
the living wage rate currently applies? Since the'City Is,in fact, considering reductions In the
Page 501 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 far
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 •
in2019 In2020
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 202.0
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 Inincrease 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
Page 503 of 1633