Resolution 2020-31399RESOLUTION NO. 2020-31399
A RESOLUTION OF THE MA VOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS JULY 17, 2020
MEETING, TO INCREASE THE LIVING WAGE RATE BY ONE PERCENT, TO
NO LESS THAN: (1) $11.90 PE R HOUR WITH HEALTH CARE BENEFITS OF
AT LEAST $3.25 PER HOUR, OR (2) $15.15 PER HOUR WITHOUT HEALTH
CARE BENEFITS, FOR CALENDAR YEAR 2021; AND FURTHER
DELEGATING TO THE CITY MANAGER THE AUTHORITY TO AMENO ANY
CONTRACT, AS NECESSARY, IN OROER TO IMPLEMENT THE ONE
PERCENT INCREASE TO THE LIVING WAGE RA TE.
WHEREA S, Section 2-408 of the City Code requires, for specific service contracts, that
contractors pay employees the living wage rates that have been approved by the City
Commission for any given year; and
WHEREAS, on September 25, 2019, the Mayor and City Commission approved the
living wage rate for the calendar year 2020 as follows: $15.00 per hour without health care
benefits; or $11.78 per hour with health care benefits of at least $3.22 per hour; and
WHEREA S, the current rates resulted from a three-year phased-in approach initially
approved by the City Commission on October 18, 2017, to establish $15.00 an hour as the
minimum living wage rate, by 2020; and
WHEREA S, every year, during budget discussions for the subsequent fiscal year, the
City Commission considers whether to change the living wage rates that specified City
contractors are required to pay their employees; and
WHEREAS, generally, the living wage hourly rate increase is calculated according to
any prior year increases in the overall Consumer Price Ind ex (CP I ) for the local area, and the
healthcare benefit rate increase is calculated according to any previous year increases in the
CPI for medical costs for the local area; and
WHEREAS, Section 2-408(d) also states that an annual increase to the living wage
rates shall not exceed the corresponding increase (if any) provided to unclassified city
employees; and
WHEREAS, the City's past practice has been to consider the cost of living adjustment
(COLA) approved for unclassified staff; and
WHEREAS, during the FY 20/21 budget process, the City is considering a 1% COLA
increase for unclassified employees, which is expected to be approved and adopted on
September 29, 2020; and
WHEREAS, the fiscal impact of adopting a living wage increase equivalent to the
proposed 1% COLA for unclassified staff is an estimated $121,115.25; and
WHEREAS, on July 17, 2020, the Finance and Economic Resiliency Committee (FERG)
recommended a 1% increase to the living wage rate for calendar year 2021, equivalent to the
proposed 1% COLA increase for unclassified staff; and
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WHEREAS, if approved, a living wage rate of no less than $11.90 per hour with health
care benefits or at least $3.25 per hour, or a living wage rate of no less than $15.15 per hour
without health care benefits, will become effective on January 1, 2020.
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 Finance and Economic Resiliency
Committee, at its July 17, 2020 meeting, to increase the living wage rate by one percent to no
less than: (1)$11.90 per hour with health care benefits of at least $3.25 per hour, or (2) $15.15
per hour without health care benefits, for calendar year 2021; and further delegates to the City
Manager the authority to amend any contract, as necessary, in order to implement the one
percent increase to the living wage rate.
PASSED AND ADOPTED this ly day of September 2020.
2.A
Dan Gelber, Mayor
ATTE71d__
lh...
Rail Ee. Ganado, Ciy Clerk
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R esol ution s -C Z U
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Jimmy L. Morales, City Manager
DATE: September 16, 2020
SUBJECT: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS JULY
17, 2020 MEETING, TO INCREASE THE LIVING WAGE RATE BY ONE
PERCENT, TO NO LESS THAN: (1) $11.90 PER HOUR WITH HEALTH
CARE BENEFITS OF AT LEAST $3.25 PER HOUR, OR (2) $15.15 PER
HOUR WITHOUT HEALTH CARE BENEFITS, FOR CALENDAR YEAR 2021;
AND FURTHER DELEGATING TO THE CITY MANAGER THE AUTHORITY
TO AMEND ANY CONTRACT, AS NECESSARY, IN ORDER TO IMPLEMENT
THE ONE PERCENT INCREASE TO THE LIVING WAGE RATE.
RECOMMENDATION
Adopt the Resolution.
BACKGROUND/HISTORY
Section 2-408 of the City Code requires, for specific service contracts, that contractors pay
employees the living wage rates that have been approved by the City Commission for any given
year. The current rates, approved by the City Commission on September 25, 2019, are:
$15.00 per hour without health care benefits; or
$11.78 per hour with health care benefits of at least $3.22 per hour.
The current rates resulted from a three-year phased-in approach initially approved by the City
Commission on October 18, 2017, to establish $15.00 as the minimum living wage rates by
2020.
ANALYSIS
Every year, during budget discussions for the subsequent fiscal year, the City Commission
considers whether to change the living wage rates that specific city contractors are required to
pay their employees. Generally, the living wage hourly rate increase is calculated according to
any prior year increases in the overall Consumer Price Index (CPI) for the local area. The
healthcare benefit rate increase is calculated according to any previous year increases in the
CPI for medical costs for the local area. Section 2-408(d) of the City Code precludes any
annual increase to the living wage rates from exceed the corresponding annual increase (if any)
provided to unclassified city employees. The City's past practice has been to consider the cost
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o f livi ng adjustm e nt (C O L A ) ap p ro ve d fo r unc la ss ifi e d staff .
D u ri ng th e F Y 2 0 /2 1 bud g e t pro c e s s , the C ity is c o n sid e ri ng a 1% C OL A inc re a s e fo r
unc las s ifi e d e m pl o ye e s, whi ch is exp e cte d to be ap p ro v ed and ad o p te d o n S e pte m b e r 29 ,
2 0 2 0 C om m is si on m e e ting .
O n J u ly 17, 20 2 0 , th e F ina nc e and E c o no m ic R e s ilie n c y C o m m itte e (F E R C ) a ls o
re c o m m e nd e d a 1% incr e as e to the living wa ge ra te fo r c ale nd a r ye a r 2 0 2 1, e q uiv ale nt to the
p ro p o s e d 1% C OL A inc re a se fo r unc la ss ifi e d s taff . T he fi sca l im p a c t of ad o p ting a livi ng wage
increase equivalent to the proposed 1% COLA for unclassified staff is an estimated
$121,115.25.
If approved by the Mayor and City Commission, the living wage rates of no less than $11.90 per
hour with health care benefits or at least $3.25 per hour, or a living wage rate of no less than
$15.15 per hour without health care benefits will become effective on January 1, 2021.
CONCL USION
The Administration recommends that the Mayor and City Commission adopt the resolution
accepting the recommendation of the Finance and Economic Resiliency Committee, approved
at its July 17, 2020 meeting, to increase the living wage rate to no less than $11.90 per hour with
health care benefits or at least $3.25 per hour, or a living wage rate of no less than $15.15 per
hour without health care benefits, effective January 1, 2021; and further seeks approval to
delegate authority to the City Manager to amend any contract, as needed, in order to implement
the one percent increase to the living wage rate.
ls this a "Residents Right
to Know" item , pursuant to
City Code Section 2-.447?
No
Legislative Tracking
Procurement
Does this item utilize G.O,
Bond Funds?
No
ATTACHMENT S:
Description
Resolution
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