R7O-Accept Recommendation Maintain FY 2014 Living Wage Rate Consistent With FY 2COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Accepting The Recommendation Of The Finance And Citywide Projects Committee To
Maintain Fiscal Year 2014 Livin Wa e Rate Levels Consistent With Fiscal Year 2013 Rate Levels
Key Intended Outcome Supported:
Diversify Business Base in Miami Beach.
Supporting Data (Surveys, Environmental Scan, etc.): Fiscal Year 2008/2009 survey responses
resulted in 87% of businesses rated the City of Miami Beach as one of the best, above average, or
average places to run a business. Also, 67% of business respondents would recommend Miami Beach to
others as a place to run a business.
Issue:
Should the City Commission Adopt the Resolution?
Item Summary/Recommendation:
The City is currently exercising its final year of the three-year phase-in approach for indexing the Living
Wage rate. The process for subsequent considerations to index the Living Wage rate, as described in the
Living Wage Ordinance, allows for the Living Wage rate and health care benefits rate to be increased
annually for inflation (cost of living) using the CPI-U for the Miami/Ft. Lauderdale region issued by the U.S.
Department of Labor, Bureau of Labor Statistics. However, notwithstanding the preceding, the City's Living
Wage Ordinance stipulates that no annual increase to the Living Wage rates for the employees of City
service contractors shall exceed the corresponding annual compensation increase provided to unclassified
City employees.
The aforementioned was discussed at the Finance and Citywide Projects Committee {FCWPC) meeting
dated August 21, 2013. Given that the FY 2014 budget does not include a cost of living salary adjustment,
the FCWPC unanimously agreed to maintain the FY 2014 living wage rate levels consistent with FY 2013
rate levels.
Advisory Board Recommendation:
On August 21, 2013 the Finance and Citywide Projects Committee discussed indexing the living wage
rates for FY 2014 and unanimously agreed to follow the Ordinance, maintaining FY 20141iving wage rate
levels consistent with FY 2013 rate levels.
Financial Information:
Source of Amount Account
~ 1
2
B Total
Financial Impact Summary: N/A
City Clerk's Office Legislative Tracking:
T:\AGENDA\2013\September 30\Living Wage Rates FY 2014 Summary.doc
MIAMI BEACH 287
AGENDA ITEM R 7 0 __
DATE =.!1.::1.0-f)
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachA.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Me
FROM: Jimmy L. Morales, City Manager
DATE: September 30, 2013
SUBJECT: A RESOLUTION ACCEPTING THE ECOMMENDATION OF THE FINANCE AND
CITYWIDE PROJECTS COMMITTE (FCWPC) TO MAINTAIN FISCAL YEAR 2014
LIVING WAGE RATE LEVELS CONSISTENT WITH FISCAL YEAR 2013 RATE
LEVELS
BACKGROUND
At its June 9, 2010 meeting, the Mayor and City Commission passed and adopted Ordinance
No. 2010-3682 (the Ordinance), which amended the City of Miami Beach Living Wage
Ordinance in the following particulars:
1. Effective October 1, 2010, service contractors, as applicable, were required to pay all
employees the indexed hourly living wage rates established by the City based on the
following three (3) year phase-in approach:
• Commencing with City fiscal year (FY) 2010/11 (October 1, 2010), the hourly
living wage rate will be $1 0.16/hr. with health benefits of at least $1.25/hr, and
$11.41/hr without benefits;
• Commencing with City FY 2011/12 (October 1, 2011 ), the hourly living wage rate
will be $10.72/hr with health benefits of at least $1.45/hr, and $12.17/hr without
benefits; and
• Commencing with City FY 2012/13 (October 1, 2012), the hourly living rate will
be $11.28/hr with health benefits of at least $1.64/hr, and $12.92/hr without
benefits.
2. An indexing process was established that included considerations of current Living
Wage rates to the Consumer Price Index for Urban Consumers (CPI-U) increases to be
considered during the City's annual operating budget discussions.
The City is currently exercising its final year of the three-year phase-in approach for indexing the
Living Wage rate as referenced above. The process for subsequent considerations to index the
Living Wage rate, as described in the Ordinance, allows for the Living Wage rate and health
care benefits rate to be increased annually for inflation using the CPI-U for the Miami/Ft.
Lauderdale region issued by the U.S. Department of Labor, Bureau of Labor Statistics.
However, notwithstanding the preceding, the City's Living Wage Ordinance stipulates that no
annual increase to the Living Wage rates for the employees of City service contractors shall
exceed the corresponding annual compensation increase provided to unclassified City
employees.
288
Commission Memorandum -Living Wage Rates for FY 2014
September 30, 2013
Page2
The aforementioned was discussed at the Finance and Citywide Projects Committee (FCWPC)
meeting dated August 21, 2013. Given that the FY 2014 budget does not include a cost of living
salary adjustment, the FCWPC unanimously agreed to maintain the FY 2014 living wage rate
levels consistent with FY 2013 rate levels.
CONCLUSION
The Administration recommends that the Mayor and City Commission accept the
recommendation of FCWPC to maintain FY 2014 living wage rate levels consistent with FY
2013 r~!.iJievels.
JLM/K'~AD
289
RESOLUTION TO BE SUBMITTED
290