On October 18, 2017, the City Commission amended Section 2-408 of the City Code, approving increases to the living wage rates for employees of certain City service contractors (including maintenance/custodial, security, and transportation/parking services), for fiscal years 2018, 2019 and 2020, with the following phased-in approach:

·   Effective January 1, 2018, covered employees must be paid a living wage rate of no less than $ 11.62 per hour with health care benefits of at least $2.26 per hour, or a living wage rate of no less than $ 13.88 per hour without health care benefits; and

·   Effective January 1, 2019, covered employees must be paid a living wage rate of no less than $ 11.70 per hour with health care benefits of at least $ 2.74 per hour, or a living wage rate of no less than $ 14.44 per hour without health care benefits; and

·   Effective January 1, 2020, covered employees must be paid a living wage rate of no less than $ 11.78 per hour with health care benefits of at least $ 3.22 per hour, or a living wage rate of no less than $ 15.00 without health care benefits; and

Notwithstanding the aforementioned phased-in increases, each year, as part of the annual budget process, the City Commission considers whether it desires to enact any changes to the living wage rates previously established. Therefore, in keeping with past practice, an item was presented, on April 20, 2018, to the Finance and City-Wide Projects Committee (“FCWPC”) for its recommendation to continue with the phased-in increase approved for fiscal year 2019, or consider options other than those previously approved.

It was recommended by the Committee to continue with the phase-in approach and increase the Living wage for FY 2019 that will require contractors to pay employees a living wage rate of no less than $ 11.70 per hour (with health care benefits of at least of $2.74 per hour), or a living wage rate of no less than $14.44 per hour (without health care benefits).

If approved by City Commission, these rates will become effective on January 19, 2019.

The Administration recommends that the Mayor and City Commission adopt the Resolution accepting the recommendation of the Finance and Citywide Projects Committee, at its April 20, 2018 meeting, to continue with the approved phase-in for the living wage rate increase for 2019, as provided in Section 2-408 of the City Code, with a living wage rate of no less than $11.70 per hour (with health care benefits of at least $2.74 per hour), or a living wage rate of no less than $14.44 per hour (without health care benefits), effective January 19, 2019.

The estimated potential budgetary impact of approximately $596,690.98 will be included in the Fiscal Year 2019 budget considerations.