a. Utility Rate Study (Liz Makofske/Anne Fritz) b. Alternate Funding for Water Resources Update (Anne Fritz)

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1 ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE AGENDA June 8, :00 City Hall Room 100 Members & Alternate: Support Staff: Budget, Finance & Taxation Committee: Chair James R. Jim Kennedy, Jr.; Vice Chair Charles Gerdes; Karl Nurse; Darden Rice; and Ed Montanari (alternate). Kewa Wright, City Council Administrative Aide Cindy Sheppard, City Council Administrative Officer A. Call to Order B. Approval of Agenda C. Approval of Minutes 1. May 25, 2017 D. New/Deferred Business 1. June 8, 2017 a. Consideration of a requirement for a city contractor securing future contracts of at least $2,000,000 to provide a minimum wage of at least $10.00 per hour with a schedule to raise this over time. (Chris Guella/Louis Moore) b. Council Needs Assessment c. Airbnb to collect sales tax and tourist taxes from guests (Legal) E. Upcoming Meetings Agenda Tentative Issues 1. June 15, 2017 a. Request to publish the FY Annual Action Plan and Budget (Joshua Johnson) b. Baseball Referendum to allow the St. Petersburg Baseball Commission a 10 year lease with a 10 year renewal for the Walter Fuller Baseball Park (Gerdes) c. Consideration of the establishment of a Citizens Advisory Committee for the Intown CRA (Nurse) d. Consideration of a revision to the Small Business Enterprise Ordinance (Nurse) 2. July 27, 2017 a. Utility Rate Study (Liz Makofske/Anne Fritz) b. Alternate Funding for Water Resources Update (Anne Fritz) F. New Business Item Referrals G. Adjournment

2 ST. PETERSBURG CITY COUNCIL BUDGET, FINANCE & TAXATION COMMITTEE Minutes May 25, :00 City Hall Room 100 Present: Also: Committee Members - Chair James R. Jim Kennedy, Jr., Vice-Chair Charles Gerdes, Karl Nurse, Darden Rice and Ed Montanari (alternate). Chief Assistant City Attorney, Jeannine Williams; City Administrator, Gary Cornwell; Procurement & Supply Management Director, Louis Moore; Budget Director, Tom Greene; Grants Officer, Shrimatee Ojah- Maharaj; Internal Audit Director, Bradley Scott; City Council Administrative Aide, Kewa Wright and Senior Deputy City Clerk, Cathy E. Davis A. Call to Order Chair Kennedy called the meeting to order with the above persons present. B. Approval of Agenda In connection with the approval of the May 25 th meeting agenda, Council Member Gerdes motioned that the agenda be approved as written. All were in favor of the motion. Ayes. Kennedy. Gerdes. Nurse. Nays. None. Absent. Rice. Montanari (alt). C. Approval of Minutes 1. May 11, 2017 In connection with the approval of the May 11 th meeting minutes, Councilmember Gerdes motioned that the minutes be approved as written. All were in favor of the motion. Ayes. Kennedy. Gerdes. Nurse. Nays. None. Absent. Rice. Montanari (alt). D. New/Deferred Business 1a. Changes to purchasing requirements to include life cycle costs (Louie Moore) Mr. Moore discussed with the committee recommended updates to the City s Procurement Code. The revisions include the following: Sec Exemptions; Sec Definitions and abbreviations; Sec Procurement Department; duties and responsibilities; Sec Approval Authority; Sec Competitive sealed bidding; Sec Construction delivery methods and source selection; and Sec Electronic Resource. There was some discussion on how the job order contracting process works. Mr. Moore explained that when there is a minor construction job (i.e. renovating a bathroom at one of the recreation facilities), the City would refer to an online catalog established by the Guardian Group, which list construction prices and tasks. The City will come up with a scope of work to provide to the vendor. The vendor will price the job based on the catalog prices, which are fixed. Additional clarification was asked on the new definition

3 of life cycle cost. Mr. Moore explained that the City will not just be looking at the initial price of an item, but also the costs associated with owning and maintaining the asset during its life and the cost of disposing of it. The committee also requested that the consideration of liquidation value is added to the definition of life cycle cost. CM Nurse motioned with a second by CM Rice that the Budget, Finance and Taxation approve the proposed changes to the Procurement Code and forward to the full Council for approval. All were in favor of the motion. Ayes: Approved unanimously by the committee. Ayes: Kennedy, Gerdes, Nurse, Rice, Montanari (Alt). Nays: None 2b. Quarterly Grants Report (Shrimatee Ojah-Maharaj) Ms. Ojah-Maharaj provided the committee with an overview of grants awarded during the second quarter of FY 17. The City was awarded 7 grants totaling $435,609. The departments in receipt of grants include the following: Albert Whitted Airport, Fire & Rescue, Housing, Parks & Recreation, Sanitation and Office of Sustainability. As of year-to-date (to include Q1 & Q2), the City has received 16 grants totaling $1,869,904. Ms. Ojah-Maharaj informed the committee that special efforts are being made to keep HUD and CDBG funding. This includes the Mayor s letter with the U.S. Conference of Mayors and City Council letter/resolution to HUD. Ms. Ojah-Maharaj shared the status of grants reviewed by the Grants Working Group for Q2 FY17 and Q2 FY16. Council Member Kennedy requested that dollar amounts be incorporated in the charts. Council Member Nurse inquired where we would be this year in terms of grants. Mr. Greene outlined the grants we have received as of to date, grants coming down the pipeline and the expected funds from HUD, should put the City around $9 - $10 million dollars. Council Member Montanari inquired if there was additional information regarding the proposed South Pinellas CRA Grant for the Foundation of a Healthy St. Petersburg for $600,000. Ms. Ojah-Maharaj informed the committee that there is a collaborative effort to submit the grant with various departments and will find out the status. (Update: The grant is being prepared for submittal). Council Member Kennedy inquired about how the process is reviewed for those grants that we were unsuccessful in obtaining and how to improve our chances the next time. Ms. Ojah-Maharaj stated that, staff contacts the grantor for feedback on the ratings of the grant application and suggestions on ways to improve it for submittal of a winning grant in the future. E. Upcoming Meetings Agenda Tentative Issues 1. June 8, 2017 a. Consideration of a requirement for a city contractor securing future contracts of at least $2,000,000 to provide a minimum wage of at least $10.00 per hour with a schedule to raise this over time. (Chris Guella/Louis Moore) b. Council Needs Assessment c. Airbnb to collect sales tax and tourist taxes from guests (Legal)

4 2. June 15, 2017 a. Request to publish the FY Annual Action Plan and Budget (Joshua Johnson) b. Baseball Referendum to allow the St. Petersburg Baseball Commission a 10 year lease with a 10 year renewal for the Walter Fuller Baseball Park (Gerdes) c. Consideration of the establishment of a Citizens Advisory Committee for the Intown CRA (Nurse) d. Consideration of a revision to the Small Business Enterprise Ordinance (Nurse) F. New Business Item Referrals G. Adjournment There being no further business, the meeting was adjourned at 9:05 a.m.

5 Minimum Wage Analysis June 8, 2017 FT and PT Employees > 5 Years Below $15/hr (minimum is currently $13.25/hr) Lump Sum Increase Option FY 18 Cost at $15.00/hr $222, % GWI $146,000 Incremental Increase Options FY 18 Cost at $14.00/hr $61,000 FY 18 Cost at $13.75/hr $20,500 FY 19 Cost at $14.50/hr $13,500 FY 19 Cost at $14.25/hr $3,900 FY 20 Cost at $15.00/hr $0 FY 20 Cost at $15.00/hr $0 $74,500 $24,400 Assumes a 3.5% GWI in each fiscal year PT Employees < 5 Years FY 18 Lump Sum PT Employees < 5 Years Incremental Increases FY 18 Cost at $10.00/hr $62,500 FY 18 Cost at $10.00/hr $62,500 FY 18 Cost at $11.00/hr $133,000 FY 19 Cost at $11.00/hr $48,500 FY 18 Cost at $12.00/hr $326,000 FY 20 Cost at $12.00/hr $33,000 $144, % GWI $102,000 Assumes a 3.5% GWI in each fiscal year Cost of Temporary Employees through Personnel Solutions Plus Lump Sum Option Incremental Increase Option FY 18 Cost at $10.00/hr $50,500 FY 18 Cost at $10.00/hr $50,500 FY 18 Cost at $11.00/hr $110,000 FY 19 Cost at $11.00/hr $59,500 FY 18 Cost at $12.00/hr $173,000 FY 20 Cost at $12.00/hr $63,000 $173,000

6 Mem ora nd urn Budget, Finance & Taxation Committee TO: Chair James R. Jim Kennedy, Jr.; Vice Chair Charles Gerds; Karl Nurse; Darden Rice; and Ed Montanan (alternate). FROM: Louis Moore, Director, Procurement and Supply ManagementQ(9k DATE: June8, 2017 RE: Living Wage Ordinance Objective To enact a Living Wage Ordinance that establishes minimum wage requirements for major City contracts over [$100,000]. Background A living wage is the minimum amount that a worker must earn to afford basic necessities, without public or private assistance such as food stamps, food banks or Section 8 housing. It is intended to meet the basic needs of a single working individual. Many St. Petersburg workers earn wages that are insufficient to support themselves and their families. Many cannot participate in civic life or pursue educational, cultural, and recreational opportunities because they cannot afford them and they must work long hours to meet their households most basic needs. When businesses do not pay a livable wage, the community bears the cost in the form of increased demand for taxpayer-funded social services, including homeless shelters and healthcare for the uninsured. It is in the public interest to require contractors benefiting from City actions and funding, and the opportunity to do business with the City, to pay employees a living wage that is adequate to meet the basic needs of living in St. Petersburg. A survey of the local construction industry regarding wages paid to their employees shows that most construction workers are paid above the state s minimum wage of $8.10 per hour. Field Labor Mm Max Avg. Operator- Backhoe! Excavator $13.00 $22.00 $17.96 Operator- Bulldozer $13.00 $21.00 $17.30 Operator - Grader! Blade $13.00 $36.88 $20.72 Operator- Loader $13.00 $22.00 $16.48 Operator- Roller!Skilled Laborer $11.00 $18.00 $13.92 Operator- Mechanic $17.00 $26.00 $19.13 Tail man $12.00 $15.50 $13.75 Top man $12.00 $15.50 $13.60 Pipe Layer $12.00 $19.00 $15.41 Laborer, Common or General $9.50 $15.00 $12.29 Truck Driver - Dump Truck $12.50 $22.00 $16.23 Truck Driver- Lowboy $13.00 $25.00 $18.86 Source: 2016 Suncoast Utility Contractors Wage Survey

7 Living Wage Ordinance Page 2 Several of the City s current contractors were asked what percentage of their workers on a typical construction project make minimum wage, or near minimum wage. One contractor said that about eight percent of their workers are assigned to tasks that are paid at the low end of the scale. Another said about 30 percent. To a question of who is paid the state s minimum wage, or near the minimum wage, three responded. One contractor said that their lowest paid employee makes $9 per hour, one, $10 per hour, and another said their lowest paid employees are paid $75 above the minimum wage. Finally, many nonprofessional service providers pay their employees less than $10 per hour. These workers include cashiers, janitorial workers, parking attendants, tree trimmers, lawn maintenance workers, painters, laborers, tow truck workers and security guards. Proposal It is proposed that City Council enact a Living Wage Ordinance for major contracts and mandate the implementation of a minimum wage requirement for employees of City contractors and subcontractors. All contractors and subcontractors of nonprofessional services entering into, or renewing, or extending a contract with the City should pay all of its covered employees a living wage of no less than $12 per hour. Who would be affected? Contractors that receive contracts of over $100,000, and hire more than 25 employees. Contractors using a subcontractor that hires more than 25 employees (FT or PT) Covered services would include, but are not be limited to: Janitorial services Maintenance and repair services Parking services Painting and refurbishing Landscaping and grounds maintenance Tree trimming services Towing and storage Temporary clerical office personnel Temporary laborers Construction services Construction trades Security services Repair services for motor vehicles Benefits There are several benefits to paying City contract workers a living wage. 1. A living wage can help to pull working families out of poverty. 2. A living wage benefits businesses and the local economy. 3. Livable wages also benefit employers and the economy as a whole by improving employee performance, reducing employee turnover, lowering absenteeism, and thereby improving productivity and the quality of services provided by employees.

8 Living Wage Ordinance Page 3 Any employee of a contractor working within the City boundaries should receive a minimum wage greater than one of the following: the minimum hourly wage set by State Minimum Wage Laws; the minimum hourly wage set by the Fair Labor Standards Act; or $12.00 per hour. The living wage should be adjusted annually. For example: Action Plan LM Annual adjustment Year Living Wage 2017 $l2perhour 2018 $l3perhour 2019 $l4perhour 2020 $15 perhour 1. Add the living wage requirements to the specifications of all major service procurement contracts. 2. Inform contractors receiving major service procurement contracts of their obligation to pay a living wage to their employees. 3. Inform contractors that their subcontractors also have an obligation to pay a living wage to their employees. 4. Issue living wage requirements in all Invitation for Bids, Request for Proposals, or other solicitation requests for major service contracts. Attachment: Living Wage Requirements for Major Contracts

9 , ORDINANCE NO. AN ORDINANCE AMENDING ARTICLE V OF THE ST. PETERSBURG CITY CODE BY ADDING DIVISION 8, ENTITLED LIVING WAGE REQUIREMENTS FOR MAJOR CONTRACTS, TO PROVIDE FOR IMPLEMENTATION OF A MINIMUM HOURLY WAGE FOR EMPLOYEES OF CERTAIN CONTRACTORS AND SUBCONTRACTORS; PROVIDING FOR DEFINITIONS; AND PROVIDING AN EFFECTIVE DATE. THE CITY OF ST. PETERSBURG DOES ORDAIN: Section 1. The St. Petersburg City Code is hereby amended by adding a new Article V, Chapter 2, Division 8, Sections to read as follows: DIVISION 8. - LIVING WAGE REQUIREMENTS FOR MAJOR CONTRACTS Sec Findings and definitions. (a) Findings. (1) The City of St. Petersburg awards millions of dollars in contracts for projects each year which results in the creation of a wide variety of employment opportunities. The contracts are paid for by taxpayer dollars which should be used to increase employment opportunities, decrease levels of poverty and reduce the need for taxpayer-funded programs in other areas. (2) Because the City indirectly hires hundreds of employees through contractors, it has an opportunity to fulfill its responsibility to impact the standard of living for people working in St. Petersburg. (3) An increase in the minimum wage is unlikely to result from legislative action at the state or federal level. (4) Providing for an increase in the minimum wage serves a public purpose by providing economic security for persons working in the City, and reducing the number of people who rely on public assistance for essential needs. 1

10 (b) Definitions. (1) The definitions set forth in the procurement code, currently section 2-240, shall apply to this division. (2) The following definitions shall apply only to this division: The terms employer, employee, tipped employee, and wage shall have the meanings established under the federal fair Labor Standards Act ( flsa ) and its implementing regulations. Fair Labor Standards Act or FLSA means the United States Fair Labor Standards Act of 1938, 29 U.S.C. 201 et seq., in force on the effective date of this division and as thereafter amended. State Minimum Wage Laws means the Florida Minimum Wage Act, fin. Stat et seq., in force on the effective date of this division and as thereafter amended, together with applicable provisions of the Florida Constitution, fla. Const. art. X. 24. Major contract means a contract awarded by the City where the average annual contract amount exceeds One Hundred Thousand Dollars ($100,000.00). Sec Living wage. Payment of living wage. Every Employer that employs more than 25 persons and provides services pursuant to a major contract shall pay no less than the following wages to each Employee for each hour of work performed for that Employer while physically present within the geographic boundaries of the City: (a) Beginning on the effective date of this division, the greater of: (1) The minimum hourly wage set by the State Minimum Wage Laws; (2) The minimum hourly wage set by the Fair Labor Standards Act; or (3) $12.00 per hour. (b) Beginning on January 1, 2018, the greater of: (1) The minimum hourly wage set by the State Minimum Wage Laws; (2) The minimum hourly wage set by the fair Labor Standards Act; or (3) $13.00 per hour. (c) Beginning on January 1, 2019, the greater of: (1) The minimum hourly wage set by the State Minimum Wage Laws; 2

11 (2) The minimum hourly wage set by the Fair Labor Standards Act; or (3) $14.00 per hour. (d) Beginning on January 1, 2020, the greater of: (1) The minimum hourly wage set by the State Minimum Wage Laws; (2) The minimum hourly wage set by the Fair Labor Standards Act; or (3) $15.00 per hour. Indexing. Beginning on January 1, 2021, and every year thereafter, the living wage rate may, by resolution of the City Council, be indexed annually for inflation using the Consumer Price Index for Tampa-St. Petersburg-Clearwater, FL, calculated by the U.S. Department of Labor s Bureau of Labor Statistics. Notwithstanding the preceding, no annual index shall exceed three percent. The City Council may also, by resolution, elect not to index the minimum wage rate in any particular year, if it determines it would not be fiscally sound to implement same (in a particular year). The determination to index (or not index) the living wage rate shall be considered annually during the City Council s review and approval of the City s annual operating budget. In the event that the City Council has determined, in any particular fiscal year (or years), to not index the living wage rate, and thereafter determines that making up all or any part of the prior year s (or years ) unindexed percentage would not have an adverse fiscal impact upon the City, then the City Council shall also have the right, but not the obligation, to cumulatively index the living wage rate to make-up for any deficiencies in the prior year (or years) where there was (were) no increase(s) (the catch up election). The catch-up election must be approved by resolution. Tipped Employees. For Tipped Employees meeting eligibility requirements for the tip credit under the FLSA, Employers may credit towards satisfaction of the living wage in subsections (a) - (d) tips up to the amount of the allowable FLSA tip credit. Procurement specifications. Payment of the living wage as set forth in subsections (a) (d) shall be required by the procurement specifications for all major contracts on which bids or proposals shall be solicited on or after the effective date of this division. Such procurement specifications shall also require each firm that utilizes a subcontractor to inform each subcontractor, prior to the time the subcontractor offers its price to such firm, of its obligation to pay a living wage to its employees. All requests for bids, requests for proposals, or requests for letters of interest for major service contracts, whether advertised or informally solicited, shall include appropriate information about the requirements of this division. 3

12 Sec Retaliation and discrimination prohibited. It shall be unlawful for an Employer or any other party to discriminate in any manner or take adverse action against any person in retaliation for exercising rights protected under this division. Rights protected under this division include, but are not limited to, the right to file a complaint or inform any person about any party s alleged noncompliance with this division, and the right to inform any person of his or her potential rights under this division and to assist him or her in asserting such rights. Sec Enforcement and Construction. Remedies for aggrieved employees. Employees aggrieved by a violation of this division may bring a civil action in a court of competent jurisdiction against an Employer or person violating this division and, upon prevailing, shall recover the full amount of any back wages unlawfully withheld, plus the same amount as liquidated damages, and shall be awarded reasonable attorney s fees and costs. In addition, they shall be entitled to such legal or equitable relief as may be appropriate to remedy the violation including, without limitation, reinstatement in employment and/or injunctive relief Actions to enforce this division shall be subject to a statute of limitations of two years or, in the case of willful violations, three years. Construction. It is intended that case law, administrative interpretations, and other guiding standards developed under the federal FLSA shall guide the construction of this division or any implementing regulations. Collective bargaining. Nothing in this division shall be construed to require or authorize any Employer to reduce wages set by a collective bargaining agreement or as required under any prevailing wage law. Section 2. The unconstitutionality or invalidity of any word, sentence, or portion of this ordinance shall not affect the validity of the remaining portions. Section 3. In the event this ordinance is not vetoed by the Mayor in accordance with the City Charter, it shall become effective upon the expiration of the fifth business day after adoption unless the Mayor notifies the City Council through written notice filed with the City Clerk that the Mayor will not veto the ordinance, in which case the ordinance shall become effective immediately upon filing such written notice with the City Clerk. In the event this ordinance is vetoed by the Mayor in accordance with the City Charter, it shall not become effective unless and until the City Council overrides the veto in accordance with the City Charter, in which case it shall become effective immediately upon a successful vote to override the veto. 4

13 Approved as to form: Administration 5

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18 BUDGET, FINANCE AND TAXATION COMMITTEE PENDING/CONTINUING REFERRALS June 8, 2017 Topic 2017 Management Evaluation Return Date 180 days 11/9/17? Date of Referral 10/2016 by ordinance Prior Meeting Referred by City Council Staff Brad Scott Notes Brad Scott preparing scope re: Water Resources. Prebid meeting for RFP held 1/18/17. Mr. Scott to contact Chair Kennedy reference 2/23 return date. Updated return date on 1/23/17. Presentations to return on 3/23/17. (4/17/17 note added) to be scheduled to return to full council. 5/25/17 Brad stated a signed contract has been returned to LA Consulting report to committee in 180 days Consideration of a requirement for a city contractor securing future contracts of at least $2,000,000 to provide a minimum wage of at least $10.00 per hour with a schedule to raise this over time 6/8/17 1/5/17 4/27/17 City Council Councilmember Nurse 4/27/17 This item is now two motions: Motion 1 Proposal on minimum wage ($10, $11 & $12 estimate cost) for contracts of more than $1M. Motion 2 Proposal on minimum wage ($10 and $11 estimate cost) for city employees (to include: temps and less than 5yrs service). Staff to report back. Council Needs Assessment 6/8/17 Airbnb to collect sales tax and tourist taxes from guests 6/8/2017 deferred from 5/11/17 COW of 4/20/17 City Council 5/7/15 City Council M. Dema/Goodwin Was referred for further discussion at the 5/4/17 Council Meeting 1/14/16 referral to PSI for ordinance review; reffered to COW scheduled for 9/15/16. Discussed on 1/12/17, legal to investigate and report back at a future meeting.

19 Discuss a ballot referendum to allow the St. Petersburg Baseball Commission a 10 year lease with a 10 year renewal for the Walter Fuller Baseball Park Consideration of the establishment of a Citizens Advisory Committee for the Intown CRA 6/15/17 5/18/17 Gerdes 6/15/17 2/2/17 City Council Councilmember Nurse Consideration of a revision to the Small Business Enterprise ordinance 6/15/17 2/2/17 City Council Councilmember Nurse Utility Rate Study Alternate Funding for Water Resources Update (TIF) Refer PILOF discussion 7/27/17 8/24/17 Liz Makofske 7/27/17 9/8/16 Anne Fritz 8/10/17 1/26/17 City Council COW 1/26/17 Discussion for use of Tourist Development Tax, including Arts Funding Follow up TBD 8/21/14 City Council Joe Zeoli 2018 Management Evaluation 10/12/17 Annual Ordinance Brad Scott 2018 Health Insurance Renewal 12/14/17 Annual BF&T Chris Guella To be discussed at COW on 1/26/17 Meeting to include David Downing of the TDC. Gerdes to follow up Quarterly Financial Reports Q1 2/9/17 Q2 5/11/17 Q3 8/24/17 Q4 11/19/17 Quarterly Grant Reports Q1 2/23/17 Q2 5/25/17 Q3 09/14/17 Q4 11/9/17 Quarterly Quarterly City Council City Council Anne Fritz Tom Greene Shrimatee Ojah Maharaj

20 Consideration of Multi year shade tree planting program along City trails and roadways funded through the Weeki Wachee Fund TBD 5/18/17 Nurse 2018 Property Insurance Renewals Mar 18 Annual Blaise Mazzola/Chris Guella External Audit Mar 18 Annual Anne Fritz

21 BUDGET, FINANCE & TAXATION COMMITTEE WEEKI WACHEE PROJECT LIST June 8, 2017 TOPIC DATE REFERRED REFERRED BY RETURN DATE STAFF RESPONSIBLE SPECIAL NOTES Youth Sports Field at Thurgood Marshall Middle School CM Wheeler- Bowman TBD McBee/Jefferis Maximo Park Project Kornell TBD McBee/Jefferis Referred to COW on 7/14/16 Scheduled COW on 7/28/16 $150,000 allocated by council on 8/4/16

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