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2001-3301 ORDORDINANCE NO. 2001-3301 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CREATING DIVISION 6, TO BE ENTITLED "LIVING WAGE REQUIREMENTS FOR CITY SERVICE CONTRACTS AND CITY EMPLOYEES", OF ARTICLE VI, ENTITLED "PROCUREMENT", OF CHAPTER 2 OF THE MIAMI BEACH CITY CODE ENTITLED "ADMINISTRATION", BY ESTABLISHING A LIVING WAGE REQUIREMENT FOR CITY SERVICE CONTRACTS AND ESTABLISHING A LIVING WAGE FOR CITY EMPLOYEES; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE, WHEREAS, the City of Miami Beach awards private firms contracts to provide services for the public. The City also provides financial assistance to promote economic development and job growth. Such expenditures of public money also serve the public purpose by creating jobs, expanding the City's economic base, and promoting economic security for all citizens; and WHEREAS, such public expenditures should be spent only with deliberate purpose to promote the creation of full-time, permanent jobs that allow citizens to support themselves and their families with dignity. Sub-poverty level wages do not serve the public purpose. Such wages instead place an undue burden on taxpayers and the community to subsidize employers paying inadequate wages by providing their employees with social services such as health care, housing, nutrition, and energy assistance, The City has a responsibility when spending public funds to set a community standard that permits full-time workers to live above the poverty line. Therefore, contractors and subcontractors of City service contracts should pay their employees nothing less than the living wage herein described; and WHEREAS, in addition to requiring living wages for City services provided by private firms, the City wishes to serve as an example by providing a living wage to all City employees. NOW, THEREFORE, BE IT DULY ORDAINED BY THE MAYOR AND THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA AS FOLLOWS: SECTION 1. That Division 6, to be entitled "Living Wage Requirements for City Contracts", of Article VI, entitled "Procurement", of Chapter 2 of the Miami Beach City Code entitled "Administration" is hereby created to read as follow: 1 of 9 Chapter 2 ADMINISTRATION *** Article VI. Procurement Division 6. Living Wage Requirements for Service Contracts and City Employees Section 2-407.R~s~,md Definitions (a) "City" means the government of Miami Beach or any authorized agents, any board, agency, commission, department, or other entity thereof, or any successor thereto. (b) "Covered Employee" means anyone employed by the City or any Service Contractor, as further defined in this Division, either full or part time, as an employee with or without benefits or as an independent contractor. (c) "Covered Employer" means the City and any and all Service Contractors, whether contracting directly or indirectly with the City, and subcontractors of a Service Contractor. (d) "Service Contractor" is any individual, business entity, corporation (whether for profit or not for profit), partnership, limited liability company, ioint venture, or similar business who is conducting business in Miami Beach, or Miami Dade County, and meets one (1) of the two (2) following criteria: (1) The Service Contractor is: (a) paid in whole or part from one or more of the City's general fund,' capital project finds, special revenue funds, or any other funds either directly or indirectly, whether by competitive bid process, informal bids, requests for proposals, some form of solicitation, negotiation, or agreement, or any other decision to enter into a contract; or (b) engaged in the business of, or part of, a contract to provide, a subcontract to provide, or similarly situated to provide, services, either directly or indirectly for the benefit of the City. However, this does not apply to contracts related primarily to the sale of products or goods. (e) "Covered Services" are the type of services pumhased by the City that are subject to the requirements of this Division which include the following: (1) City Service Contracts Contracts involving the City's expenditure of over $100,000 per year and which include the following types of services: (1) food preparation and/or distribution; (2) security services; (3) routine maintenance services such as custodial, cleaning, computers, refuse removal, repair, refinishing, and recycling; 2 of 9 (4) clerical or other non-supervisory office work, whether temporary or permanent; (5) transportation and parking services; (6) printing and reproduction services; (7) landscaping, Lawn, and or agricultural services; and (8) park and public place maintenance (2~ Should any services that are being nerformed by City Emt~lovees at the time this ordinance is enacted be solicited in the future by the City to be nefformed by a Service Gorltractor, such services shall be Covered Services subject to this Division. SECTION 2-408. Resei,~d LIVING WAGE (a) Livin~WaeePaid. (1) Service Contractors. All Service Contractors, as defined by this Division, entering into a contract with the City of Miami Beach shall pay to all its employees who provide services covered by this Division, a living wage of no less than $8.56 an hour with health benefits, or a living wage of not less than $9.81 an hour without health benefits, as described in this Section. (2) City Employees. For City Employees under the City pay plan, the City will begin to pay a living wage consistent with the goals and terms of this Division on phase-in basis beginning in the 2001-2002 City budget year, increasing on an annual basis incrementally so that the Living Wage is fully implemented for City employees in the 2003-2004 City budget year as may be adjusted pursuant to subsection (c) below. Thereafter. the Living Wa~e to be naid by the City to its emnlovees shall not be subiect to the annual indexing using the Consumer Price Index for all Urban Consumers (CPI-U] reouired under subsection (c] below and instead shall be subject to negotiations withill the collective bargaining structure. {b) Health Benefits. For a Covered Employer or the City to comply with the living wage provision by choosing to pay the lower wage scale available when a Covered Employer also provides health benefits, such health benefits shall consist of payment of at least $1.25 per hour towards the provision of health care benefits for Covered Employees and their dependents. If the health benefits plan of the Covered Employer or the City requires an initial period of employment for a new employee to be eligible for health benefits (eligibility period) such Covered Employer or City may qualify to pay the $8.56 per hour wage scale during the new employee's initial eligibility period provided the new employee will be paid health benefits upon completion of the eligibility period. Proof of the provision of health benefits must be submitted to the awarding authority to qualify for the wage rate for employees with health benefits. (c) Indexing. The living wage will be automatically indexed each year using the Consumer Price Index for all Urban Consumers (CPI-U) unless the City Commission determines it would not be fiscally sound to implement the CPI-U in a particular year. 3 of 9 (d) Certification Required Before Payment. Any and all contracts for Covered Services shall be void, and no funds may be released, unless prior to entering any agreement with the City for a Covered Services contract, the employer certifies to the City that it will pay each of its employees no less than the living wage described in Section 2-408 (a). A copy of this certificate must be made available to the public upon request. The certificate, at a minimum, must include the following: the name, Address, and phone number of the employer, a local contact person, and the specific project for which the Covered Services contract is sought~ (2) the amount of the Covered Services contract and the City Department the contract will serve; (3) a brief description of the proiect or service provided; (4) a statement of the wage levels for all employees; and (5) a commitment to pay all employees a living wage, as defined by paragraph Section 2408 (a). (e) Observation of Other Laws. Every Covered Employee shall be paid not less than biweekly, and without subsequent deduction or rebate on any account (except as such payroll deductions as are directed or permitted by law or by a collective bargaining agreement). The Covered Employer shall pay Covered Employees wage rates in accordance with federal and ail other applicable laws such as overtime and similar wage laws. (f) Posting. A copy of the living wage rate shall be kept posted by the Covered Employer at the site of the work in a prominent place where it can easily be seen and read by the Covered Employees and shall be supplied to the employee within a reasonable time after a request to do so. Posting requirements will not be required where the Covered Employer prints the following statements on the front of the Covered Employee's first paycheck and every six months thereafter: "You are required by City of Miami Beach law to be paid at least $8.56 dollars an hour. If you are not paid this hourly rote, contact your employer, an attorney, or the City of Miami Beach." All notices will be printed in English, Spanish, and Creole. (g) Collective Bar~,aining. Nothing in this Division shall be read to require or authorize any Covered Employer to reduce wages set by a collective bargaining agreement or are required under any prevailing wage law. 4 of 9 SECTION 2-409. ~ IMPLEMENTATION (a) Procurement Specifications. The living wage shall be required in the procurement specifications for all City service contracts for Covered Services on which bids or proposals shall be solicited on or after the effective date of this Division. The procurement specifications for applicable Covered Services contracts shall include a requirement that Service Contractors and their subcontractors agree to produce all documents and records relating to payroll and compliance with this Division upon request from the City. All Covered Service contracts awarded subsequent to the date when this Division becomes effective, shall be subject to the requirements of this Division. (b) Information Distributed. All requests for bids or requests for proposals for Covered Services contracts of $I00,000 or more shall include appropriate information about the requirements of this Division. (c) Maintenance of Payroll Records. Each Covered Employer shall maintain payrolls for all Covered Employees and basic records relating thereto and shall preserve them for a period of three (3) years or the term of the Covered Services contract, whichever is greater. The records shall contain: (1) the name and address of each Covered Employeei (2) the job title and classification; (3) the number of hours worked each day; (4) the gross wages earned and deductions madei (5) annual wages paid; (6) a copy of the social security returns and evidence of payment thereof; (7) a record of fringe benefit payments including contributions to approved plans; and (8) any other data or information this Division should require from time to time. Reporting Payroll. Every six (6~ months, the Covered Emtflover shall file with the l?rq>¢urement Director a comnlete nawoll showing, the Covered Emr)lover's oavroll records for each Covered Emnlovee working, on the contract(s/for Covered Services for one navroll r>eriod. Upon request from the City, the Covered Employer shall produce for inspection and copying its payroll records for any or all of its Covered Employees for any period covered by the Covered Service contract. The City may examine navroll records as needed to ensure comnliance. SECTION 2-410. ~ COMPLIANCE AND ENFORCEMENT. (a) Service Contractor to Cooperate. The Service Contractor shall permit City employees, agents, or representatives to observe work being performed at, in or on the proiect or matter for which the Service Contractor has a contract. The City representatives may examine the books and records of the Service Contractor relating to the employment and payroll to determine if the Service Contractor is in compliance with the provisions of this Division. 5 of 9 Complaint Procedures and Sanctions. (1) An employee who believes that this Division applies or applied to him or her and that the Service Contractor, or the City, is or was not complying with the requirements of this Division has a right to file a complaint with the Procurement Director of the City. Complaints by employees of alleged violations may be made at any time and shall be investigated within thirty (30) days by the City. Written and oral statements by an employee shall be treated as confidential and shall not be disclosed without the written consent of the employee to the extent allowed by the (2) Any individual or entity may also file a complaint with the Procurement Director of the City on behalf of an employee for investigation by the City. (3) R shall be the responsibility of the City to investigate ail allegations of violations of this Division within thirty (30) days. If, at any time, the City, upon investigation determines that a violation of this Division has occurred, it shall, within ten (10) working days of a finding of non-compliance, issue a notice of corrective action to the employer specifying all areas of non-compliance and deadlines for resolutions of the identified violations. If a Service Contractor fails to comply with any notice issued, the City Manager or the City Manager's designee may issue an order in writing to the Service Contractor, by certified mail or hand delivery, notifying the Service Contractor to appear at an administrative hearing before the City Manager or the City Manager's designee to be held at a time to be fixed in such order, which date shall be not less than five (5) days after service thereof. (4) The proceedings shall be informal, but shall afford the Service Contractor the right to testify in the Service Contractor's own defense, present witnesses, be represented by counsel, submit relevant evidence, cross examine witnesses and object to evidence. (5) The proceedings shall be recorded and minutes kept by the City. Any Service Contractor requiring verbatim minutes for judicial review may arrange for the services of a court reporter at the expense of the Service Contractor. (6) Within ten (10) days of the close of the hearing, the City Manager or the City Manager's designee shall render a decision in writing determining whether or not the Service Contractor is in compliance, or whether other action should be taken, or whether the matter should be continued, as the case may be, and stating the reasons and findings of fact. (7) The City Manager or the City Manager's designee shall file findings with the City Clerk, and shall send a true and correct copy of his order by certified mail, return receipt requested, or by hand deliver~, to the business address as the Service Contractor shall designate in writing. (8) The City Manager's or designee's findings shall constitute the final administrative action of the City for purposes of judicial review under state law. 6 of 9 (9) If a Service Contractor fails to seek timely appellate review of an order of the City Manager or the City Manager's designee, or to comply timely with such order, the City may pursue the enfomement of sanctions set forth in Section 2- 410 (c). (~) Ih'ivate Right of Action Aoatnst Service Contractor Any Covered Emolovee of or former Covered Emolovee of a Service Contractor may. instead of utilizim, the City administrative orocedure set forth in this Division. but not in addition to such orocedure. brin~, an action by filim, suit a~,ainst the Covered Emolover in any court of comoetent iurisdiction to enforce the nrovisions of this Division and may be awarded back nav. benefits. attorney's fees. and costs. The anolicable statute of limitations for such a claim will be two (2/years as orovided in Florida Statutes Section 95.11(4~(c~ for an action for navment of Wi~,es. The court may also imnose sanctions on the Service Contractor. includim, those oersons or entities aidim, or abettim, the Service Contractor. to include wa~e restitution to the affected Covered Emnlovee and damaoes oavable to the Covered Emnlovee in the sum of un to $500 for each week each Service Contractor is found to have violated this Division. (d) Sanctions Against Service Contractors. For violations of this Division, the City shall sanction a Service Contractor by requiring the Service Contractor to pay wage restitution at the employers expense for each affected employee and may access the following: (1) The City may impose damages in the sum of $500 for each week for each employee found to have not been paid in accordance with this Division; and/or (2) The City may suspend or terminate payment under the Covered Services contract or terminate the contract with the Service Contractori and/or (3) The City may declare the employer ineligible for future service contracts for three (3) years or until all penalties and restitution have been paid in full, whichever is longer. In addition, all employers shall be ineligible under this section where principal officers of the employer were principal officers of an employer who violated this Division. (e) Public Record of Sanctions. All such sanctions recommended or imposed shall be a matter of public record. (f) Sanctions for .Aiding and Abetting. The sanctions in Section 2410 (c) shall also apply to any party or parties aiding and abetting in any violation of this Division. (g) Retaliation and Discrimination Barred. A Covered Employer shall not discharge, reduce the compensation, or otherwise discriminate against any Covered Employee for making a complaint to the City, or otherwise asserting his or her rights under this Division, participating in any of its proceedings or using any civil remedies to enforce his or her rights under this Division. Allegations of retaliation or discrimination, if found true in a proceeding under paragraph (b) or by a Court of competent iurisdiction under paragraph (c), shall result in an order of restitution and reinstatement of a discharged Covered Employee with back pay to the date of the violation or such other relief as deemed appropriate. 7 of 9 (h) Enforcement Powers. If necessary for the enforcement of this Division, the City .n.'.~.zmz-; Commission may issue subpoenas, compel the attendance and testimony of witnesses and production of books, papers, records, and documents relating to payroll records necessary for hearing, investigations, and proceedings. In case of disobedience of the subpoena, the City Attorney may apply to a court of competent iurisdiction for an order requiring the attendance and testimony of witnesses and production of books, papers, records, and documents. Said court, in the case of the refusal to obey such subpoena, after notice to the person subpoenaed, and upon finding that the attendance or testimony of such witnesses of the production of such books, papers, records, and documents, as the case may be, is relevant or necessary for such hearings, investigations, or proceedings, may issue an order requiring the attendance or testimony of such witnesses or the production of such documents and any violation of the court's order may be punishable by the court as contempt thereof. (i) Remedies Herein Non-Exclusive. No remedy set forth in this Division is intended to be exclusive or a prerequisite for asserting a claim for relief to enforce the rights under this Division in a court of law. This Division shall not be construed to limit an employee's right to bring a common law cause of action for wrongful termination. 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 a part of the Code 9f the City of Miami Beach, Florida. The sections of this Ordinance may be returned. 8 of 9 SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on the 28th day of April PASSED and ADOPTED this 18th day of April , 2001. ,2001. ATTEST: MAYOR CITY CLERK 1 st reading 2nd reading XX Ordinance No. 2001-3301 APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION City Attorney _ / ! Date 9 of 9 CITY OF MIAMI BEACH Labor Relations Interoffice Memorandum To: Jorge Gonzalez City Manager From: Mary Greenwood ~J~-~::~ Executive Assistant to the City Manager/Labor Relations Date: February 27, 2001 Subject: Living Wage Ordinance Proposal The Living Wage Ordinance proposes a salary of $8.56 an hour for employees with benefits and $9.31 per hour for employees without benefits. Currently, there are only seven (7) classifications in the City of Miami Beach that are below the proposed Living Wage. Four (4) positions are in the AFSCME Union, which are as follows: Municipal Service Worker I & II, trainees, and Street Light Technician. Two (2) positions are in the Others Classification, which are as follow: Concession Attendant and School Guard. One (1) position is in the Unclassified Classification which is the Office Associate I. There are fifty-nine (59) full-time employees in these categories. It will cost the City $92,352.00 to bring these employees up to the proposed Living Wage of $8.56 an hour, since they already have health benefits. There are forty-five (45) part-time or temporary employees without benefits in these categories. The annual cost of bringing them up to the proposed Living Wage of $9.31 an hour is $33,107.10, since they do not have health benefits. The total anticipated cost for the City of Miami Beach employees is $125,459.10. ~ If have any additional concerns or require any additional information regarding this matter, please do not he. sitate to contact me directly. MG: vpm Attachment(s) Mayra Diaz-Buttacavoli, Assistant City Manager Patricia Walker, Finance Director Gus Lopez, Procurement Division Director Donald Papy, Deputy City Attorney ATTACItM~NT 1 l.lving Wage Analysis (0z-0s-0~) Number o£ employees under hourly wage o£ $8.56: Annual cost to move them up to an hourly wage of $8.56: Clas~ication Concession Attendant (Parks Department) Municipal Service Worker (Public Works & Parks Department) Street Lighting Tech I (Pubhc Works) 59 $92,352.00 Number of Emp~ees 4 54 1 Number of employees without benefits under hourly wage of $9.31: Annual cost to move them up to an hourly wage of $9.31: Classification Concession Attendant (Parks Department) Recreation Leader I (Parks Department) Concession Attendant (Parks Department) Municipal Service Worker (Pubhc Works & Parks Department) Recreation Leader I (Parks Depa~m,ent) School Guard (Pohce Department) 45 $33,107.10 Number of Emp~ees 2 ("Temps'~ 2 ("Temps'~ 4 (Part-6me) 7 (Part-time) 2s (Pan-ame) 2 (Part-time) Total number of AlJ. employees under their associated wage: 104 Annual cost to move AH. employees to their associated wage: $125,459.10 CITY OF MIAMI BEACH Procurement Division Memorandum To: From: Subject: Mayra Diaz-Buttacavoli Assistant City Manager Gus Lopoz, CPPO Director Living Wage Ordinance Projections Date: March 1, 2001 As requested, I have prepared the attached projections to determine the fiscal impact that the proposed living wage ordinance will have on the City. The projections cover contracted services that may be subject to the requirements of the Living Wage Ordinance. It is projected that the adoption of the Living Wage Ordinance will increase the cost of service contracts by $1,031,296.40 annually when fully effective (Fiscal Year 2004/2005). It is important to note that a significant mount of this total projected increase when fully effective, is associated with the following two classifications: Temporary personnel labor -- increase of $302,318; and Janitors -- increase of $340,944. The total of the above listed classifications represents 62% of the total projected increase. Please note that the attached projections do not include the BFI contract for collection and disposal of residential solid waste, yard trash, etc. According to Jeanmarie Massa, BFI Manager, all personnel working for BFI on the City's conuact for collection and disposal...are paid salaries that exceed the living wage provisions (see attached letter dated March 1,2001). In the immediate future (Fiscal Year 2001/2002), there are two service contracts that *may be affected by the proposed Living Wage Ordinance: Security Guard Services: Request for issuance of RFP will be presented to the April 18 Commission meeting. Projected increase -- $156,744. Temporary Personnel Services: Request for issuance of RFP will be presented to the April 18 Commission meeting. Projected increase -- $302,318. ~The word may is used because whether or not these two contracts will be affected is contingent upon: (1) the Commission authorizing the issuance of the RFPs; and (2) when the ordinance is adopted -- if adopted after the contracts are awarded then they would not apply, if adopted prior to the award of these two contracts, then the ordinance would apply. ATTACHMENT 2 ' In determining the projected fiscal impact of the Living Wage Ordinance, we contacted service contractors and requested the following information: a. Classification of each type of employee under contract to the City; b. Actual hourly wage paid to each classification of employee working under the City contract; c. The number of weekly contracted hours for each classification of employee; and d. The average number of hours actually worked for each classification of employee. We then reviewed the information provided by the service contractors, and compared said information with the payment history and contract pricing of each firm. Please advise if additional information is required. Attachment: Living Wage Ordinance Projection GL c: Mary Greenwood Trish Walker Jose Cruz ' ~&e 01 010~:OOp BFI MIRMI Rdminis~pa~ion 1305)$33-~S73 P-~ March 1, 2001 Mr. Gus Lopez, CPPO Procurement Director City o[ Miami Beach 1700 Convention Center Drive Miami Beach. Florida 33139 RE: Collection and Disposal of Residential Solid Waste, Yard Trash, Bulk Waste, and Operation of the City's Solid Waste Management Facility Dear Mr, LopeT'. Please be advised that all personnel working for BFI on the above mentioned contract make salaries that exceed the "living wage provision". In addition, BFI provides all employees with benefits that include medical insurance. Should you have any questions, please feel free to call me at 305-638-3800 exten.~inn ?_17. Sincerely. .leanmarie M. Masse, Manager Marketing/Governmental Service 3840 Nm~hwc~t 37th Cour~ * Miami. Fk,dda 33142 CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARINGS NOTICE IS HEREBY given that public hearings will be held by the Mayor and City Commission of the City of Miami Beach, Florida, in the Commission Chambers, 3rd floor, City Hall, 1700 Convention Center Drive, Miami Beach, Florida, on Wednesday, April 18, 2001, at the times listed below, to consider the adoption of the following ordinances: at 10:45 a.m.: ~ AN ORDINANCE CREATING DIVISION 6 TO BE ENTITLED "LIVING WAGE REQUIREMENTS FOR CITY SERVICE CONTRACTS AND CITY EMPLOYEES", OF ARTICLE VI ENTITLED "PROCUREMENT" OF CN3%PTER 2 OF THE MIAMI BEACH CITY CODE ENTITLED "ADMINISTRATION" BY ESTABLISHING A LIVING WAGE REQUIREMENT FOR CITY SERVICE CONTRACTS AND ESTABLISHING A LIVING WAGE FOR CITY EMPLOYEES; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. Inquiries may be directed to the Human Resources at (305) 673-7524. at 11:15 a.m.: AN ORDINANCE CREATING CHAPTER 12, ARTICLE II OF THE MIAMI BEACH CITY CODE TO BE ElqTITLED "SPECIAL EVENTSn, CREATING SECTION 12-5, ENTITLED "SPECIAL EVENTS PERMITS", ESTABLISHING PROCEDURES AND CRITERIA FOR THE MANAGEMENT OF SPECIAL EVENTS PERMITS; AUTHORIZING THE CITY MANAGER OR THE MAi~AGER'S DESIGNEE TO ISSUE, MODIFY, OR REVOKE SPECIAL EVENTS PERMITS; PROVIDING FOR ENFORCEMENT AND PENALTIES; AMENDING SECTION 46-156(A) CONCERNING TEMPORARY NOISE PERMITS; PROVIDING FOR INCLUSION IN THE CODE OF THE CITY OF MIAMI BEACH; PROVIDING FOR REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. at 11:30 a.m.: AN ORDINANCE CREATING CHAPTER 12, ENTITLED "ARTS, CULTURE & ENTERTAINMENT", AND ARTICLE I, ENTITLED "FILM AND PRINT PRODUCTION", IN THE MIA-MI BEACH CITY CODE, CREATING SECTION 1221, ENTITLED "PERMITS FOR FILM AND PRINT PRODUCTIONS", ESTABLISHING PROCEDURES AND CRITERIA FOR THE ISSUANCE OF PERMITS FOR FILM AND PRINT PHOTOGRAPHY IN THE CITY; AUTHORIZING THE CITY MANAGER OR THE MANAGER'S DESIGNEE TO GRANT FILM AND PRINT PERMITS; PROVIDING FOR ENFORCEMENT A_ND PENALTIES; AMENDING SECTION 46-156(A) CONCEENING TEMPORARY NOISE PERMITS; PROVIDING FOR INCLUSION IN THE CODE OF THE CITY OF MIAMI BEACH, FLORIDA; PROVIDING FOR REPEALER, SEVERABILITY AND AN EFFECTIVE DATE. Inquiries may be directed to the Arts, Culture and Entertainment at {305) 673-2787. ALL INTERESTED PARTIES are invited to appear at this meeting, or be represented by an agent, or to express their views in writing addressed to the City Commission, c/o the City Clerk, 1700 Convention Center Drive, 1st Floor, City Hall, Miami Beach, Florida 33139. Copies of these ordinances are available for public inspection during normal business hours in the City Clerk's Office, 1700 Convention Center Drive, 1st Floor, City Hall, Miami Beach, Florida 33139. This meeting may be continued and under such circumstances additional legal notice would not be provided. Robert E. Parcher, City Clerk City of Miami Beach Pursuant to Section 286.0105, Fla. Stat., the City hereby advises the public that: if a person decides to appeal any decision made by the City Commission with respect to any matter considered at its meeting or its hearing, such person must ensure that a verbatim record of the proceedings is made, which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission of otherwise inadmissible or irrelevant evidence, nor does it authorize challenges or appeals not otherwise allowed by law. In accordance with the Americans with Disabilities Act of 1990, persons needing special accommodation to participate in this proceeding should contact the City Clerk's office no later than four days prior to the proceeding, telephone (305) 673-7411 for assistance; if hearing impaired, telephone the Florida Relay Service numbers, (800) 955-8771 (TDD) or (800) 955-8770 (VOICE), for assistance. CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:t\ci, rniar hi-beach .fl. u s TO: FROM: COMMISSION MEMORANDUM NO. ~.~)..~_-C) I Mayor Neisen O. Kasdin and Members of the City Commission DATE: April 18, 2001 SECOND READING SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, CREATING DIVISION 6, TO BE ENTITLED "LIVING WAGE REQUIREMENTS FOR CITY SERVICE CONTRACTS AND CITY EMPLOYEES", OF ARTICLE VI, ENTITLED "PROCUREMENT", OF CHAPTER 2 OF THE MIAMI BEACH CITY CODE ENTITLED "ADMINISTRATION", BY ESTABLISHING A LMNG WAGE REQUIREMENT FOR CITY SERVICE CONTRACTS AND ESTABLISHING A LIVING WAGE FOR CITY EMPLOYEES; PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Approve the Ordinance on second and final reading. ANALYSIS The City has a responsibility when spending public funds to set a community standard that permits full-time workers to live above the poverty line. In an effort to achieve this goal, contractors and subcontractors of City service contracts should pay their employees nothing less than the living wage herein described. Such expenditure of money also serves the public purpose by creating jobs, expanding the City's economic base and promoting economic security for all citizens. Studies conducted in other areas have shown that a Living Wage Ordinance increases productivity and enhances employee morale. It also will allow employees to be covered by health insurance or they should be able to afford to purchase health insurance. In addition, social services are less likely to be utilized. General Criteria The intent of a Living Wage is to provide salary rates for full-time employees equivalent to the poverty level plus 10% and therefore, eliminate sub-poverty level wages. The Ordinance proposes a salary of $8.56 per hour for employees who already receive health benefits and $9.31 per hour for employees without health benefits. The Living Wage Ordinance applies to City Employees, contractors, and subcontractors of City service contracts of $100,000 or more. AGENDA ITEM April 18, 2001 Commission Memorandum Living Wage Ordinance Page 2 The Living Wage will be annually increased by the Federal Poverty Guidelines which are issued by the Department of Health and Human Services. The Poverty Guidelines are updated annually using the Consumer Price Index for ail Urban Consumers (CPI-U). The City Commission will have the discretion of not automatically updating the Living Wage if it is not fiscaily sound or in the City's best interest to implement the annual index in a particuiar year. An amendment proposed will also have the COLA provision for Covered City Employees be subject to Collective Bargaining. City Employees A total of approximately one hundred and four (104) employees will be affected by this Legislation. They predominantly perform services in the Departments of Public Works, Parks, and Police. The estimated impact of the Living Wage Ordinance for the City of Miami Beach Employees in the first year is $125,000 (see attachment 1). This will be phased in with other annual increases such as union contracts. Ciq. Service Contracts and Subcontracts The estimated cost for outside City Contractors to comply with the Living Wage Ordinance is just over $1,000,000 (see attachment 2). The Ordinance will be phased in since it will only apply to new service contracts entered into by the City and, therefore, will apply only to contracts bid after the passage of this Ordinance. The proposed Ordinance should cover City Contracts for the following services: 6. 7. 8. Food preparation and/or distribution; Security Services; Routine maintenance such as custodial, cleaning, computers, refuse removal, repair, refinishing, and recycling; Clerical or other non-supervisory office work, whether temporary or permanent; Transportation and parking services; Printing and reproduction services; Landscaping, lawn and or agricnlturai services; and Parks and public place maintenance. The proposed Ordinance was referred to the Finance and Citywide Projects Committee (FCWPC) on February 12, 2001. The FCWPC unanimously recommended that the City Commission adopt the Living Wage Ordinance. The FCWPC's report was presented to the City Commission at its February 21, 2001 meeting. The FCWPC made the following recommendations: l) Annual increases be made to the Living Wage using Federal Poverty Guidelines by the Department of Health and Human Services. These Federal Poverty Guidelines are annually updated by the CPI-U; 2) The City Commission have discretion each year to determine whether the City's fiscal condition allows for an increase; and 3) The FCWPC also directed the Administration to resolve any pending legal concerns, in preparation for Commission consideration. April 18, 2001 Commission Memorandum £iving I'Vage Ordinance Page 3 The Ordinance was approved on the first reading on March 28, 2001, with one amendment. In Section 2-410 (g) Enforcement Powers, the revision is that the City Commission, not the City Attorney may issues subpoenas. A second amendment was introduced by Mr. Gary Waters, Business Manager of Intematioual Union of Operating Engineers, at the City Commission Meeting Section 2-406 (e)(2). Should any services that are heine ~erformed bv City Emnloyees at the time this ordinance is enacted be solicited in the future by the City to be ~erformed bv a Service Contractor. such services shall be covered services subject to this Ordinance re~,ardiess of the value of the The Administration recommended against this amendment. However, after discussion, the Commission decided to consider this amendment at the second reading so further study could be made of legal concerns, such as equal protection issues. After review, the Administration still recommends that this amendment not be approved for the following reasons: 1) All contracts should come under the $100, 000 threshold, and all Service Contractors should be treated the same. 2) City will have the flexibility to contract out small functions. 3) Our Labor Attorneys, Muller, Mintz, advised that all Service Contractors should be treated the same; otherwise some Service Contractors may be discouraged from bidding. 4) This provision could be subject to an equal protection challenge. Additional Amendments: Certain additional amendments were proposed after further consideration and discussion with Mr. Gary Waters, Business Manager of International Union of Operating Engineers and Mr. Arthur J. Rosenberg, Attorney with Florida Legal Services. They are the following three amendments. The fourth amendment is recommended by the City Attorney's Office: (1) Ci~ Employees. For City Employees under the City pay plan, the CiW will begin to pay a living wage consistent w~th the goals and terms of this Division on phase-in basis beginning in the 2001-2002 City budget year, increasing on an annual basis incrementally so that the Living Wage is fully implemented for City employees in the 2003-2004 City budget year as may be adjusted pursuant to subsection (c) below. Thereafter. the Livine Waee to be oaid by the City to its employees shall not be subiect to the annual indexin~ usine the Consumer Price Index for ail Urban Consumers (CPI-U~ rcouired under subsection (e) below and instead shall be subject to neeotiations within the collective bar~,ainine April 18, 2001 Commission Memorandum Living Wage Ordinance Page 4 This provides that once union employees are paid the Living Wage, their increases will be subject to their collective bargaining agreements. To do otherwise would result in a two-tiered system with one group of employees getting their raises according to the Consumer Price Index for all Urban Consumers (CPI-U), and another group of employees getting increases according to their collective bargaining agreement. The Administration recommends that this amendment be approved for the following reasons: 1) This amendment allows more conformity of wages within collective bargaining units and prevents a two-tier pay system. 2) Our Labor Attorneys, Muller, Mintz, have recommended that such increases should only be part of the collective bargaining process as required under Florida Statutes. All benefits that relate to employees must be negotiated through the bargaining unit. After discussion with Mr. Waters and Mr. Rosenberg, it was agreed that they support this amendment. 1) Reporting Payroll, Every six (6) months, the Covered Emolover shall file with the Procurement Director a comnlete uavroll showino the employer's oavroll records for each Covered Emolovee workin~ on the contract(si for Covered Services for one uavroll oeriod. Upon request from the City, the Covered Employer shall produce for inspection and copying its payroll records for any or all of its Covered Employees for any period covered by the Covered Service contract. The City shal_~l examine oavroll records as needed to ensure comoliance. The City had previously removed some of the reporting language because of the administrative burden it would cause. After discussing with Mr. Waters and Mr. Rosenberg, the City is recommending the above compromise which allows the City to examine payroll records as needed to ensure compliance. 2) The Administration is recommending an amendment to Section 2-410 (c) (Private Right of Action). A Private Right of Action allows any employees of a Service Contractor an alternative to the City's administrative procedure, but not in addition to the procedure and allows them to bring an action directly to court to enforce the ordinance. The City removed this Private Right of Action because the City believed that the City's internal administrative procedure was adequate. However, after meeting with Mr. Waters and Mr. Rosenberg, the City agreed to allow employees the option of going straight to court. The Private Right of Action is also in the Miami Dade County Ordinance. 3) The Administration is recommending an amendment to Section 2-410 (b). This section states that an employee's written and oral statements shall be treated as confidential and not be disclosed without written consent of the employee. At the City Attorney's suggestio~!lL.l~ll~fi~ by Florida Statute~s was added to make it clear that under Florida Law, some statements cannot be kept confidential. April 18, 2001 Commission Memorandum Living Wage Ordinance Page 5 Enforcement: Most changes to the County's Ordinance were made to streamline the process. Unlike Miami-Dade County, it is recommended that a Living Wage Commission not be established and instead any complaints will be sent to the City's Procurement Director. The City will investigate all complaints in a timely manner. If the investigation indicates a violation has occurred, a notice of corrective action will be issued. If the Service Contractor fails to comply with the notice of issue, the City Manager may issue an order notifying the Service Contractor to appear at an administrative hearing. The City Manager's findings shall constitute final administrative action of the City for purposes of judicial review under State law. Sanctions under the Ordinance include: 1) Damages in the amount of $500.00 for each week; 2) Suspension or termination of payment under contractor termination of contract; 3) Employer may be declared ineligible for future service contracts for three (3) years. Conclusion: A Living Wage Ordinance has been approved in over forty (40) jurisdictions nationwide and the Administration supports it. This Ordinance sets a community standard that permits full-time workers to live above the povert3, line. In addition, the City of Miami Beach will be the first municipality in Florida to approve the Living Wage Ordinance. JMG: L: vpm Attachm~J