Resolution 2025-33452RESOLUTION NO. 2025-33452
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 DECEMBER
20, 2024 MEETING, TO INCREASE THE LIVING WAGE TO MATCH THE
COST OF LIVING ADJUSTMENT (COLA) BY THREE PERCENT TO NO LESS
THAN $13.01 PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST
$3.45 PER HOUR, OR A LIVING WAGE RATE OF NO LESS THAN $16.46
PER HOUR WITHOUT HEALTH CARE BENEFITS, EFFECTIVE JULY 1, 2025;
AND FURTHER DELEGATING THE AUTHORITY TO THE CITY MANAGER
OR DESIGNEE TO AMEND ANY CONTRACT AS NECESSARY TO
IMPLEMENT THE INCREASE.
WHEREAS, Section 2-408 of the City Code requires specific service contractors to pay
employees the living wage rates approved by the City Commission for any given year; and
WHEREAS, on September 13, 2023, the Mayor and City Commission approved the
living wage rates for the calendar year 2024 as follows: $16.08 per hour without health care
benefits or $12.63 per hour with health care benefits of at least $3.45 per hour; and
WHEREAS, every year, during budget discussions for the subsequent fiscal year, the
City Commission evaluates whether to adjust the living wage rates that specific 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 Index (CPI) 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, the City is considering a 3% COLA increase for unclassified employees,
equivalent to the proposed 3% increase for union staff; and
WHEREAS, the fiscal impact of adopting a living wage increase equivalent to the
proposed 3% COLA for unclassified staff is an estimated $397,741.65; and
WHEREAS, on December 20, 2024, the Finance and Economic Resiliency Committee
(FERC) recommended a 3% increase to the living wage, effective July 1, 2025, to match the
proposed COLA adjustment; and
WHEREAS, if approved by the Mayor and City Commission, the living wage rates will
become effective on July 1, 2025, set at no less than $13.01 per hour with health care benefits
of at least $3.45 per hour, or $16.46 per hour without health care benefits.
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 December 20, 2024 meeting, to increase the living wage rate by three percent
to no less than $13.01 per hour with health care benefits of at least $3.45 per hour, or a living
wage rate of no less than $16.46 per hour without health care benefits, effective July 1, 2025;
and further delegate the authority to City Manager or designee to amend any contract, as
needed, in order to implement the three percent increase to the living wage rate.
PASSED AND ADOPTED this 3
ATTEST:
i4 KB 0 9 ?02�
Rafael E. Granado, City Clerk
day of February 2025.
Steven Meiner, Mayor
APPROVED AS TO
FORM & LANGUAGE
& FQRE.XFCUTION 1
City to eya.-7-/' Date
Procurement Requests - C2 A
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: February 3, 2025
TITLE: 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 DECEMBER 20,
2024 MEETING, TO INCREASE THE LIVING WAGE TO MATCH THE COST OF
LIVING ADJUSTMENT (COLA) BY THREE PERCENT TO NO LESS THAN $13.01
PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST $3.45 PER HOUR, OR
A LIVING WAGE RATE OF NO LESS THAN $16.46 PER HOUR WITHOUT HEALTH
CARE BENEFITS, EFFECTIVE JULY 1, 2025; AND FURTHER DELEGATING THE
AUTHORITY TO THE CITY MANAGER OR DESIGNEE TO AMEND ANY
CONTRACT AS NECESSARY TO IMPLEMENT THE INCREASE.
RECOMMENDATION
The Administration recommends that the Mayor and City Commission ("City Commission") adopt
the Resolution accepting the recommendation of the Finance and Economic Resiliency
Committee at its December 20, 2024 meeting, to increase the living wage rate to match the City
employee's Cost of Living Adjustment ("COLA") to three (3) percent (%) to no less than $13.01
per hour with health care benefits or at least $3.45 per hour, or a living wage rate of no less than
$16.46 per hour without health care benefits, effective July 1, 2025; and further seeks approval
to delegate the City Manager, or designee, to amend any contract, as needed, in order to
implement the increase to the living wage rates.
BACKGROUND/HISTORY
Section 2-408 of the City Code requires, for specific service contracts, that contractors pay
employees the living wage rates approved by the City Commission for any given year. The current
rates, approved by the City Commission on September 13, 2023, are as follows:
• $16.08 per hour without health care benefits; or
• $12.63 per hour with health care benefits of at least $3.45 per hour.
Living wage rate adjustments are generally based on increases in the Consumer Price Index
("CPI") for the local area, with healthcare benefit adjustments tied to CPI increases for medical
costs. However, the City Code stipulates that no increase may exceed 3% or the COLA increase
approved for unclassified staff.
Consistent with past practice, on April 3, 2024, the City Commission referred discussion item C4K
to the Finance and Economic Resiliency Committee (FERC) to make a recommendation on the
living wage rate adjustment. Historically, the living wage adjustment has taken effect on January
1 of the following year.
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ANALYSIS
As stipulated in the City Code, living wage rate increases may not exceed the local area's
corresponding CPI or the COLA approved for unclassified staff. For the preceding year (January —
December 2023), the CPI increase for the local area was approximately 5.7% for the overall CPI
and -0.5% for the medical services CPI.
Despite any increase in the CPI, the City Code stipulates that any adjustment to the living wage
rates may not exceed the COLA increase approved for unclassified employees. Therefore, the
current budget cycle caps any living wage increase at 3%. The proposed effective date of July
2025 for the living wage increase will align with budgeted City employee COLA adjustments of
July 2025.
FERC reviewed the living wage increase on December 20, 2024. To assist the Committee in
determining whether to recommend an increase to the living wage rates for the subsequent
calendar year, the Administration calculated the fiscal impact of each 1 % increase (up to 3%) to
the living wage rates in all the contracts impacted by the living wage ordinance. See the table
below for details.
Increase
Resulting rates
Estimated Fiscal
Impact'
1%
$16.21/HR w/o health benefits or
$33,145.14
$12.76/HR with health benefits of at least $3.45/HR
2%
$16.33/HR w/o health benefits or
$66,290.27
$12.88/HR with health benefits of at least $3.45/HR
3%
$16.46/HR w/o health benefits or
$99,435.41
$13.01/HR with health benefits of at least $3.45/HR
Based on current contract usage from July 2025 — September 2025.
The Administration recommended that FERC approve the living wage increase, effective July 1,
2025, not to exceed 3% and consistent with the approved cost of living adjustment (COLA) for
unclassified employees. Commissioner Alex Fernandez motioned to have this item heard at the
City Commission with a favorable recommendation approving the item as presented, the motion
was seconded, and all were in favor.
Positions covered by any City bargaining agreements impacted by the living wage threshold will
be adjusted through the bargaining process to meet or exceed the new living wage rates.
FISCAL IMPACT STATEMENT
The FY 24/25 fiscal impact of adopting a 3% living wage increase is an estimated $99,435.41.
Please refer to Attachment A.
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https://www:miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
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Click or tap here to enter text.
CONCLUSION
Following deliberation at its December 20, 2024, FERC Meeting, the Committee recommended
that the City Commission approve an increase to the living wage rates equivalent to the Cost -of -
Living Adjustment (COLA) percentage increase for unclassified staff, capped at a maximum of
3%.
If the Mayor and City Commission approve the Committee's recommendation to align the living
wage rates with the implementation of the City's employee COLA effective July 1, 2025, the new
rates would be:
• $16.46 per hour without health care benefits; or
$13.01 per hour with health care benefits of at least $3.45 per hour.
The Administration recommends that the Mayor and City Commission adopt the Resolution to
accept the Finance and Economic Resiliency Committee's recommendation to increase the living
wage by 3%, resulting in rates of no less than $13.01 per hour with health care benefits of at least
$3.45 per hour, or no less than $16.46 per hour without health care benefits, effective July 1,
2025. The Resolution also delegates authority to the City Manager, or designee, to amend any
contracts as necessary to implement the 3% increase to the current living wage rates.
Applicable Area
Citywide
Is this a "Residents Right to Know" item,
pursuant to City Code Section 2-17?
No
Is this item related to a G.O. Bond
Project?
No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
Procurement
Sponsor(s)
Co-sponsors)
Condensed Title
Approve Increase to the Living Wage Rates for Service Contractors, Effective July 1, 2025. PR
Previous Action (For City Clerk Use Only)
Page 42 of 1859
ATTACHMENT A
1% Living Wage Rate Increase
($16.21/HR w/o
health benefits or $12.76/1-111 with health benefits of at least $3.45/1-111)
$33,145.14 Fiscal Impact
Base Hourly Rate
% Increase $ Increase % Payroll
$ Payroll Taxes Est. Hours
3-Month Impact
Living Wage Rate' 12.6300
0.0100 0.1263 0.0950
0.0120 958,655
33,145.14
Health Benefits 3.4500
0.0000 0.0000 0.0950
0.0000 958,655
0.00
Total 16.0800
0.12630
0.0120
33,145.14
2% Living Wage Rate Increase
($16.33/HR w/o
health benefits or $12.88/HR with health benefits of at least $3.45/1-111)
$66,290.27 Fiscal Impact
Base Hourly Rate
% Increase $ Increase % Payroll
$ Payroll Taxes Est. Hours
3-Month Impact
Living Wage Rate'
12.6300
0.0200 0.2526 0.0950
0.0240 958,655
66,290.27
Health Benefits
3.4500
0.0000 0.0000 0.0950
0.0000 958,655
0.00
Tota l
16.0800
0.2526
0.0240
66,290.27
3% Living Wage Rate Increase
($16.46/1-111 w/o
health benefits or $13.01/HR with health benefits of at least $3.45/HR)
$99,435.41 Fiscal Impact
Base Hourly Rate
% Increase $ Increase % Payroll
$ Payroll Taxes Est. Hours
3-Month Impact
Living Wage Rate' 12.6300
0.0300 0.3789 0.0950
0.0360 958,655
99,435.41
Health Benefits 3.4500
0.0000 0.0000 0.0950
0.0000 958,655
0.00
Tota 1 16.0800
0.3789
0.0360
99,435.41
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