R5K-Increase Living Wage Rate By 3 Percent For Fiscal Year 2014-15 -Weithorn-Gondensed Title:
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH,
FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY OF MIAMI BEACH, ENTTTLED..ADMINISTRATION," BY AMENDING ARTICLE VI, ENTITLED "PROGUREMENT,'' BY AMENDING
DIVISION 6, ENTITLED "LIVING WAGE REQUIREMENTS FOR SERVICE CONTRACTS AND CITY
EMPLOYEES," BY AMENDING SECTION 2408, ENTITLED "LIVING WAGE," BY INCREASING THE
LIVING WAGE RATE BY 3Yo FOR FISCAL YEAR 20'14-2015 AND DELETING PHASE lN LANGUAGE
THAT IS OUTDATED DUE TO THE PASSAGE OF TIME; PROVIDING FOR REPEALER,
AND AN EFFECTIVE DATE.
N/A
Data (Surveys, Environmental Scan, etc:
COMMISSION ITEM SUMMARY
Item Summary/Recommendation :
Pursuant to Section 2-408(a) of the Code of the City of Miami Beach, any service contractors entering into
a covered services contract with the City shall pay to all its employees, who provide services covered by
this division, the living wage rates approved by the City Commission.
On July 23, 2014, the City Commission approved a referral to the Finance and Citywide Projects
Committee (the "Committee") for a discussion on indexing the living wage rate for fiscal year 2014-2015.
At its July 30, 2014 meeting, the Finance and Citywide Projects Committee considered the available
options regarding indexing the living wage rate for fiscal year 2014-2015 presented by the Administration
pursuant to the Living Wage Ordinance. The Committee recommended indexing the living wage rate by
three percent (3%) consistent with the three percent (3%) cost of living adjustment approved for
unclassified employees. The estimated financial impact for the increase for fiscal year 2014-2015 is
approximately $260, 000.
lf approved, effective October 1,2014, any covered service contractor shall be required to pay all
employees, who provide services for covered service contracts, the new living wage rates of $11.621hr
with health benefits of at least $1.69ihr, or a living wage of not less than $13.31/hr without benefits.
Additionally, covered service contracts shall be amended to reflect the living wage rate increase.
Based on the direction of the Finance and Citywide Projects Committee, the Administration recommends
that the Mayor and City Commission approve the Ordinance accepting the recommendation of the
Finance and Citywide Projects Committee to index the living wage rate by three percent (3%); and
authorize the Administration to prepare amendments for all covered service contracts subject to the living
wage increase and to delete phase in language that is outdated due to the passage of time.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission: 1) accept the recommendation of the Finance
and Citywide Projects Committee via separate motion; and 2) approve the Ordinance at First Reading and
schedule a Second Reading Public Hearing for September 30,2014.
This action has been recommended bv the Finance and C Committee.
Financial lnformation: N/A
qE AAIA^AIBEACH a.E^.DA,'A.. Nlofre ?-t
T:\AGENDA\2014\SeptembeAProcurement\Living Wage lncrease FY 2014-20'15- ORDINANCE SUfvff,,Innvg/S-10-14.docx
Alex Denis, ext: 7490
o..=^,oo',rA- RS KoAte Q-ln4
6
g MIAMI BEACH
City of Miomi Beoch, ,1700 Convenlion Center Drive, Miomi Beoch, Florido 33I39, www.miomibeochfl.gov
COMMI SION MEMORANDUM
TO:Mayor Philip Levine and Members of he City mrssron
FRoM: Jimmy L. Morales, City Manager
DATE: September 10,2014
SUBJECT: AN ORDINANGE OF THE MAYOR AND Clry COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE CITY
OF MIAMI BEACH, 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 LIVING WAGE RATE BY 3% FOR FISGAL YEAR 2014-2015 AND DELETING
PHASE !N LANGUAGE THAT IS OUTDATED DUE TO THE PASSAGE OF T!ME;
PROV!D!NG FOR REPEALER, SEVERAB!LIry, CODIFICATION, AND AN
EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The Administration recommends that the City Commission: 1) accept the recommendation of
the Finance and Citywide Projects Committee via separate motion; and 2) approve the
Ordinance at First Reading and schedule a Second Reading Public Hearing for September 30,
2014.
BACKGROUND
Pursuant to Section 2-408(a) of the Code of the City of Miami Beach, any service contractors
entering into a covered services contract with the City shall pay to all its employees, who
provide services covered by this division, the stipulated living wage rates as approved by the
City Commission. Furthermore, pursuant to Section 2-408(d) of the Code of the City of Miami
Beach, the living wage rate may, by resolution of the City Commission, be indexed annually for
inflation using the Miami PMSA Consumer Price lndex for all Urban Consumers (CP|-U)
Miami/Ft. Lauderdale, issued by the U.S. Department of Labor, Bureau of Labor Statistics.
On July 23,2014, the City Commission approved a referral to the Finance and Citywide Projects
Committee (Committee) for a discussion on indexing the living wage rate for fiscal year 2014-
2015 in accordance with the options pursuant to Ordinance 2010-3682.
At its July 30, 2014 meeting, the Finance and Citywide Projects Committee (the "Committee")
considered the available options regarding indexing the living wage rate for fiscal year 2014-
2015 presented by the Administration pursuant to the Living Wage Ordinance. The Committee
recommended indexing the living wage rate by three percent (3%) consistent with the three
percent (3%) cost of living adjustment approved for unclassified employees. The estimated
financial impact for the increase for fiscal year 2Q14-2015 is approximately $260,000.
F!RST READING
7
Commission Memo Ordinance Amending Chapter 2, Article Vl, Division 4 Section 2-408 By
lncreasing The Living Wage Rate By 3/o For Fiscal Year 2014-2015
September 10,2014
Page 2 of 2
lf approved, effective October 1,2014, any service contractor as defined in the Living Wage
Ordinance shall be required to pay all employees, who provide services for covered service
contracts, the new living wage rates of $11.62lhr with health benefits of at least $1.69/hr, or a
living wage of not less than $13.31/hr without benefits.
Additionally, as a result of the living wage rate increase effective October 1, 2014, covered
service contracts shall be amended to reflect the living wage rate increase and to delete phase
in language that is outdated due to the passage of time.
CONCLUSION
The Administration recommends that the Mayor and City Commission approve the Ordinance
accepting the recommendation of the Finance and Citywide Projects Committee to index the
living wage rate by three percent (3o/o); and authorize the Administration to prepare
amendments for covered service contracts subject to the living wage increase.
m,
JLM / MT'I NO I RR
T:\AGENDA\2014\September\Procurement\Living Wage lncrease FY 2014-2015 - ORDINANCE MEMO 09-10-14.docx
8
ORDINANCE NO.
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CODE OF THE
CITY OF MIAMI BEACH, ENTITLED "ADMINISTRATION," BY AMENDING
ARTICLE VI, ENTITLED "PROCUREMENT," BY AMENDING DIVISION 6,
ENTITLED .,LIuNG WAGE REQUIREMENTS FOR SERVICE CONTRACTS
AND CITY EMPLOYEES," BY AMENDING SEGTION 2-408, ENTITLED..LIVING WAGE," BY INCREASING THE LIVING WAGE RATE BY 3% FOR
FISCAL YEAR 2014.2015 AND DELETING PHASE IN LANGUAGE THAT IS
OUTDATED DUE TO THE PASSAGE OF TIME; 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 contractors entering into a covered services contract with the City shall pay to all its
employees, who provide services covered by Division 6, the stipulated living wage rates as
approved by the City Commission; and
WHEREAS, pursuant to Section 2-408(d) of the Code of the City of Miami Beach, the
living wage rate may, by resolution of the City Commission, be indexed annually for inflation
using the Miami PMSA Consumer Price lndex for all Urban Consumers (CP|-U) Miami/Ft.
Lauderdale, issued by the U.S. Department of Labor, Bureau of Labor Statistics; and
WHEREAS, on July 23,2014, the City Commission approved a referral to the Finance
and Citywide Projects Committee (the "Committee") for a discussion on indexing the living wage
rate for fiscal year 2014-2015 in accordance with the options pursuant to Ordinance 2010-3682;
and
WHEREAS, at its July 30, 2014 meeting, the Committee considered the available
options regarding indexing the living wage rate for fiscal year 2014-2015 presented by the
Administration pursuant to the Living Wage Ordinance; and
WHEREAS, at its July 30, 2014 meeting, the Committee recommended indexing the
living wage rate by three percent (3%) consistent with the three percent (3%) cost of living
adjustment approved for unclassified employees; and
WHEREAS, effective October 1, 2014, any service contractor as defined in the Living
Wage Ordinance shall be required to pay all employees, who provide services for covered
service contracts, the new living wage rates of $11.621hr with health benefits of at least
$1.69/hr, or a living wage of not less than $13.31/hr without health benefits; and
WHEREAS, as a result of the living wage rate increase effective October 1, 2014,
covered service contracts shall be amended to reflect the living wage rate increase and to
delete phase in language that is outdated due to the passage of time.
NOW, THEREFORE, BE !T ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, AS FOLLOWS:
SECTION 1. That Division 6 of Article Vl of Chapter 2 of the Code of the City of Miami Beach
is hereby amended as follows:
9
CHAPTER 2
ADMINISTRATION
ARflCLE T, -rI?"uREMENr
Division 6. Living Wage Requirements For Service
Contracts And City Employees
***
Sec. 2-408. Living wage.
(a) Living wage paid.
({-)
e)
Service contractors. Effective October 1. 2014. Any a service contractor
entering into a covered services contract with the city shall pay to all its
employees who provide services covered by this division, a living wage of no
less than $1{-28 $11.62 an hour with health benefits of at least $1.69 an
hour, or a living wage of not less than $12,92 $13.31 an hour without health
benefits.
i
Vearr inereasing en
fully implemented fer eevered empleyees in the 2012 2013 eity budget year+
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 benefits, such health benefits
shall consist of a payment of at least $4-642 $1.69 per hour toward the provision of a
health benefits plan for covered employees and their dependents.
lf the health benefits plan of a covered employer requires an initial period of
employment for a new employee to be eligible for health 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 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 benefits, a covered employer may commence to pay the applicable
living wage rate with health benefits.
Proof of the provision of health benefits must be submitted to the city's procurement
director to qualify for the wage rate for employees with health benefits.
***
2
(b)
10
t 1| I ltlai l.- ii/^^,1.4,1 ti.;.-.1la-r..her^,,. ,-^nmJ,r..r,r^ .),tth .1f:/ ii.-al \,^). )nli\ 1 , ,.a,-]^11.r/ 4 )aaa\
lhe it','ing Nlage wiil be 31 A.16ihr. witi: heailh benefili. end Si1.41,i:t'.'.',,tIhc'-t!,3er-.iis; cann€rctnj r\'t!i
c;ty flsca! y'ear 20'! 1-'! 2 {Octacet 1, 20i 1; lne i'.,t9 r!,?ge.e;e ltill be S/0.7Z,;hr. *ith health cene{its. erd
S'1 2.17,/hr.'t'ithcut be,teiils, an.J canme::ci..g',".,!!,\ ctri ftsc,tl i,ear 2C12 13 (October 1.2012). the ll,",tng
, )^6 r.+^ ,,,;,i h6 (r 1 )p hl t;t^ \::lrh Aanaftr-, rarl e t ) o),b, \.;tl^^ttt h^-,1ltr-
i?\ ll:inn lha arnntc.q4 tbyaa-,ta=r nhrca-in ^,,.,-,r!nf rn r-rrA.-aniinn ,JnAi)\ rammanrino rtrilh ni+rt ficrzl\. t' t-. !.Gt pt taro tt I pnt Ju\ti ii iJ JLivJUUiiVi; a' i UJ\L/, toi; ii i iCi i'ii;V y?ia, i Uri j/ i,nu(i
,,a?. ?n1n. 1 1 !t'.).r^t\a. I 2(1'n\ tha haal'h hanof:r: rtrs tt,itl ha cr laact I t )\/hr aammanrina ,j,'rh ^;t\,\/E dr ,gco: Ji ,LJit , -. t;J tiiito: ttii t j iriti: ttl j
fi.^al ,/d-r )n1 1.1? tOcrtitat 1 )n11t t^^ l-.a)tth F'a-6f;t-' r:tos,a.itl l^a at laact C1 ,.itr,iF', )-,i ^^nn6^.;-^luu,vvur t, Lr t! , vv,iuii\i,o(tJ 'e,,, vo ur itdu' et, tJtt;i., UiiU iul:;iiiY!iil;tJ
',vith lhe cili' fisce; ie...t' 201 2 13 (Cclabet 1 , 201 )). the kee!!!t bercfils tzle ,.,,illfbel ar /e;sl S' .5,! bt .
SECTION 2. REPEALER.
All ordinances or parts of ordinances in conflict herewith be and the same are hereby
repealed.
SECTION 3. SEVERABILITY.
lf 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 relettered to accomplish such intention, and the word "ordinance" may be changed to
"section," "article," or other appropriate word.
SECTION 5. EFFECTIVE DATE.
ThisordinanceShalltakeeffectonthe-dayof-,2014.
PASSED AND ADOPTED this
ATTEST:
RAFAEL E. GRANADO, CITY CLERK
Underline denotes additions
S+it<e+nreugh d enotes deletions
(Sponsored by Commissioner Deede Weithorn)
PHILIP LEVINE, MAYOR
day of ,2014.
APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
T:\AGENDA\2O14\SeptembeAProcurement\Living Wage lncrease FY 2014-2015 - ORDINANCE 09-10-14.docx
3
els
Doie
11