Miami-Dade Legislative Item
File Number: 181908
    Clerk's Official Copy   

File Number: 181908 File Type: Ordinance Status: Adopted
Version: 0 Reference: 18-78 Control: Board of County Commissioners
File Name: CONCESSIONS AT MIAMI INTERNATIONAL AIRPORT Introduced: 8/7/2018
Requester: NONE Cost: Final Action: 7/24/2018
Agenda Date: 7/24/2018 Agenda Item Number: 5B
Notes: THIS IS FINAL VERSION AS ADOPTED. ALSO SEE 181628, 181726. Title: ORDINANCE RELATING TO CONCESSIONS AT MIAMI INTERNATIONAL AIRPORT; AMENDING SECTION 2-8.9 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA; REQUIRING THE PAYMENT OF LIVING WAGE BY CERTAIN CONCESSIONAIRES; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE [SEE ORIGINAL ITEMS UNDER FILE NOS. 181628, 181726]
Indexes: CONCESSION SERVICES
Sponsors: Barbara J. Jordan, Co-Prime Sponsor
  Jose "Pepe" Diaz, Co-Prime Sponsor
  Daniella Levine Cava, Co-Prime Sponsor
  Audrey M. Edmonson, Co-Prime Sponsor
  Sally A. Heyman, Co-Prime Sponsor
  Eileen Higgins, Co-Prime Sponsor
  Jean Monestime, Co-Prime Sponsor
  Dennis C. Moss, Co-Prime Sponsor
  Rebeca Sosa, Co-Prime Sponsor
  Xavier L. Suarez, Co-Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

County Attorney 8/7/2018 Assigned David M. Murray 8/8/2018

Board of County Commissioners 7/24/2018 5B AMENDED Adopted as amended P
REPORT: First Assistant County Attorney Geri Bonzon-Keenan read the foregoing proposed ordinance into the record. Chairman Bovo opened the public hearing. Ms. Cynthia S. Hernandez, 4349 NW 36 Street, Miami Springs, appeared before the Board representing the South Florida AFL-CIO and the Miami Airport Coalition in support of the living wage expansion and worker retention. Ms. Hernandez expressed concern that the renewal of the airline use agreement could invalidate the living wage and create living wage free zones. She urged the Board to maintain standards that provide minimum wage protections to local workers; to apply the living wage provision to the consortium of airlines; to close the living wage loophole that exempts airlines from paying the living wage; and to require airlines and their subsidiaries to pay the living wage for all workers. Mr. Daniel Brennan, 5395 NW 36 Street, Miami Springs, appeared before the Board representing TWU Local 568, in support of the living wage ordinance. He stated that airport workers deserved economic security and workers should be able to share the wealth at the State’s largest economic engine. Mr. Brennan asked the Board to oppose the exemption of airlines and contractors from paying the living wage in future leases. Ms. Rebecca Vedrine, 601 NW 42 Avenue, Apt. 101, Plantation, stated that she was a Starbucks coffee barista at Fort Lauderdale Airport, noting she was paid more than workers employed by the same company at Miami International Airport for doing the same work. She said Miami workers did not deserve earning the minimum wage and should receive a living wage. Mr. Hiram Rodriguez, 1151 W 28 Street, Hialeah, appeared in support of the living wage for airport workers, noting he came from Cuba to Miami looking for a better future, working two jobs at the airport to make a living. Ms. Maria Sanchez, 7480 SW 28 Street, Miami, also appeared in support of the living wage, noting raising the wage would send a strong message to businesses throughout the county. Ms. Destiny Taylor, 13300 Alexandria Drive, Miami, noted she was an airport worker and making a living wage would be a life-changer for her and her co-workers, noting increased wages would help workers with their daily needs. Mr. Cirilo Rodriguez, 6011 SW 88 Street, Miami, mentioned he was an ACDBE business operating two stores at the airport and requested the Board excluded these businesses. Mr. Luis Nachong, 3128 NW 46 Street, Miami, stated that employee turnover was a big problem at the airport. He said the living wage was needed in order for the airport workforce to remain competitive and provide the best service. Mr. Carlos Caballello, 4717 NW 7 Street, Apt. 107, Miami, indicated that both he and his wife worked at the airport and the cost of rent and raising a child was a struggle. He asked the Board to support the living wage to give airport workers the opportunity to live, not just survive. Mr. James McKnight, 505 NE 82 Street, Miami, appeared before the Board representing CWA-Envoy Air. He noted he was a Passenger Service Agent with 273 co-workers of which 151 made less than $11.00 per hour and expressed support for workers receiving a living wage. Ms. Carole Ann Taylor, 1717 N. Bayshore Drive, Miami, a Miami International Airport concessionaire, appeared in support of the living wage. She noted although her businesses were in the North and South Terminals; those located in the Central Terminal were experiencing difficulties and should be considered differently. Seeing no one further wanting to speak, Chairman Bovo closed the public hearing. Commissioner Jordan mentioned that she introduced legislation in February, 2018 that would pay a living wage for certain County leases. She indicated that she drafted a new item focusing on concessions, after hearing from her colleagues and taking into account Mayor Gimenez’ veto message remarks. Commissioner Jordan added that she considered the concerns of both the administration and airport workers while drafting the new legislation. She stated this legislation did not impact current contracts or their options to renew negotiated at the time of the initial contract award. Assistant County Attorney Dave Murray read an amendment to Handwritten Page 10, Section 3, of the ordinance into the record as requested by Commissioner Jordan. Following Commissioner Jordan’s motion to adopt the foregoing proposed ordinance as amended and a second by Commissioner Sosa, the Board engaged in the following discussion. Commissioner Martinez inquired about the amendment to which Assistant County Attorney Murray stated the ordinance would be effective immediately; however, existing agreements were not affected. In response to Commissioner Martinez’ question whether the living wage would apply to an option to renew, Assistant County Attorney Murray replied that option to renew remained under the Mayor’s discretion and the Mayor would not be required to condition the incorporation of the living wage in the option to renew. Commissioner Martinez stated that he supported the living wage; however, did not agree if it impacted present contracts. Commissioner Diaz expressed his support; however, believed employees earning tips would be impacted because they earned lower wages and suggested amended language to protect those workers. Ms. Wendy Walsh, 1525 NW 167 Street, Miami, representing United Care, appeared and explained that there was a $3.02 tip credit in Florida that would allow a lower wage for tip workers and supported the revision. Commissioner Sosa questioned whether the revision could be included at this time or if it needed to be advertised. Assistant County Attorney Murray advised Commissioner Sosa that the title was broad enough to encompass the amendment. Commissioner Sosa stated that on October 21, 2014, she sponsored a resolution urging the Hotel Association to join the Envelope Initiative asking hotels to place envelopes in rooms and to encourage guests to leave tips. She noted part of this agreement was not to lower salaries and to allow workers to receive tips. Commissioner Heyman commented on airport concessionaires complaining over the years about situations beyond their control. She said it was good that this legislation became effective immediately for new agreements; however, expressed concern that contracts were continually extended, amended, or changed. In response to Commissioner Heyman’s question about existing businesses not entering into new agreements by extending their contracts and not providing a living wage to their workers, Assistant County Attorney Murray indicated that the amendment required the Mayor to comply with the Board directive which directs staff to incorporate all of the updated County’s social policies or to inform the Board why it could not be incorporated for contract extensions beyond the option to renew. Commissioner Heyman commented on the need to protect both the employee and the employer. She stressed the need to help workers by providing them with a living wage while protecting businesses so they can keep employing people. Mayor Gimenez indicated that different terminals have the majority of contracts coming up at the same time. He said it would be better to use the year 2024 when the North Terminal contracts were up for renewal, noting everyone would have to comply at that time and no one in the terminal would have an advantage. Commissioner Jordan stated that she accepted Commissioner Diaz amendment relating to employees earning tips. Hearing no further questions or comments, the Board proceeded to vote to adopt the foregoing proposed ordinance, as amended. The foregoing proposed ordinance was adopted with the following amendments: - to add the language to the end of Sub Section (A) (1) on handwritten page 10, “An employee of a Concessionaire who receives some portion of their wages in the form of tips or gratuities may be paid a wage less than the Living Wage specified herein, so long as the combination of direct wages paid to such employee plus tips or gratuities equals or exceeds, the Living Wage provided for herein. For purposes of evaluating the wage paid to tipped employees, the terms employer, employee, direct wage, tips and gratuities equals or exceeds, the Living Wage provided for herein. For purposes of evaluating the wage paid to tipped employees, the terms employer, employee direct wage, tips and gratuity shall have the same meaning as in the Federal Fair Labor Standards Act and its implementing regulations.” - to replace the existing language on handwritten page 10, Section 3 with “This ordinance shall not apply to concession agreements entered into prior to its effective date; and nothing herein shall limit the authority of the County Mayor or County Mayor’s designee with respect to any options to renew incorporated into any agreement currently in effect; the County Mayor or County Mayor’s designee shall not recommend to this Board any additional time extension for any existing concession agreement except in accordance with Resolution No. R-391-17.”

Legislative Text


TITLE
ORDINANCE RELATING TO CONCESSIONS AT MIAMI INTERNATIONAL AIRPORT; AMENDING SECTION 2-8.9 OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA; REQUIRING THE PAYMENT OF LIVING WAGE BY CERTAIN CONCESSIONAIRES; PROVIDING SEVERABILITY, INCLUSION IN THE CODE, AND AN EFFECTIVE DATE [SEE ORIGINAL ITEMS UNDER FILE NOS. 181628, 181726]

BODY
WHEREAS, employees earning the State of Florida minimum wage are under tremendous financial pressure in Miami-Dade County; and
WHEREAS, employees making the state minimum wage are likely unable to afford to own a home, and are likely to spend a disproportionate share of their income on rent; and
WHEREAS, employees who make the state minimum wage are more likely to need government assistance and to make use of government services; and
WHEREAS, County-owned land and property should be used to promote business activities that drive broad based prosperity throughout all communities of the County; and
WHEREAS, the Miami-Dade Aviation Department leases property to concessionaires, who sell goods and services to travelers; and
WHEREAS, the sale of such goods and services is for the benefit of the County, as travelers expect goods and services, inclusive of food and beverages, to be available while traveling; and
WHEREAS, the decision to contract with a concessionaire is a discretionary function of the County which the County exercises in its proprietary capacity; and

WHEREAS, concessionaires at Miami International Airport earn substantial returns, given their ability to sell to travelers,
BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA:
Section 1. The above whereas clauses are deemed findings of fact and are incorporated herein.
Section 2. Section 2-8.9 of the Code of Miami-Dade County, Florida, is hereby amended to read as follows:1
Sec. 2-8.9. Living Wage Ordinance for County service contracts and County employees.

* * *
(F) Covered services are any one (1) of the following:
(1) County service contracts. Contracts awarded by the County that involve a total contract value of over one hundred thousand dollars ($100,000.00) per year for the following services:
(i) Food preparation and/or distribution;
(ii) Security services;
(iii) Routine maintenance services such as custodial, cleaning, refuse removal, repair, refinishing, and recycling;
(iv) Clerical or other non-supervisory office work, whether temporary or permanent;
(v) Transportation and parking services including airport and seaport services;
(vi) Printing and reproduction services; and,
(vii) Landscaping, lawn, and/or agricultural services.
(2) Service Contractors at Aviation Department Facilities. Any service that is provided by a Service Contractor at a Miami-Dade County Aviation Department Facility is a covered service without reference to any contract value:
(A) Ramp Service: Guiding aircraft in and out of Airport; aircraft loading and unloading positions, designated by the Aviation Department; placing in position and operating passenger, baggage and cargo loading and unloading devices, as required for the safe and efficient loading and unloading of passengers, baggage and cargo to and from aircraft; performing such loading and unloading; providing aircraft utility services, such as air start and cabin air; fueling; catering; towing aircraft; cleaning of aircraft; delivering cargo, baggage and mail to and from aircraft to and from locations at any Miami-Dade County Aviation Department facility; and providing such other ramp services approved in writing by the Aviation Department;
(B) Porter Assistance Services: Handling and transportation through the use of porters, or other means, of baggage and other articles of the passengers of contracting air carriers or aircraft operators, upon request of the passenger, in public access areas of the Airport Terminal Complex. The Living Wage shall not apply to employees performing tip related porter assistance services, including curbside check-in;

(C) Passenger Services: Preparing such clearance documents for the baggage and cargo of aircraft passengers, as may be required by all governmental agencies; furnishing linguists for the assistance of foreign-speaking passengers; passenger information assistance; arranging in-flight meals for departing aircraft with persons or companies authorized by the Department to provide such meals; and providing assistance to handicapped passengers;
(D) Dispatching and Communications Services: Providing ground to aircraft radio communication service; issuing flight clearances; sending and receiving standard arrival, departure and flight plan messages with appropriate distribution of received messages; providing standby radio flight watch for aircraft in flight; and calculation of fuel loads and take-off and landing weights for aircraft;
(E) Meteorological Navigation Services: Providing information based on the analysis and interpretation of weather charts; planning aircraft flights in accordance with the latest accepted techniques; providing appropriate prognostic weather charts; and generally providing information appropriate for enroute aerial navigation;
(F) Ticket Counter and Operations Space Service: The operation of ticket counter and airlines' operations space; ticket checking, sales and processing; weighing of baggage; operation of an information, general traffic operations and communications office for air carriers and aircraft operators with whom the Service Contractor has contracted to supply such services;
(G) Janitorial Services;

(H) Delayed Baggage Services;
(I) Security Services unless provided by federal government or pursuant to a federal government contract; and,
(J) Any other type of service that a GASP permittee is authorized to perform at any Miami-Dade County Aviation Department Facility will be considered a Covered Service, regardless of whether the service is performed by a GASP permittee or other Service Contractor.
(K) In-warehouse cargo handling.
>>(3) Concessionaires at Miami International Airport. All services of all employees employed at Miami-International Airport by a concessionaire, and all services of all subcontractors of such concessionaire providing services at Miami International Airport. For the purposes of this section, a concessionaire shall mean an entity that is authorized by contract, permit, lease, or other legal instrument supported by mutual consideration to offer goods, food, beverages, or services for sale to ticketed passengers inside Miami International Airport concourses or terminals. Notwithstanding the preceding, this subsection does not apply to employees of any airline or any entity that is exempt from the requirements of this subsection pursuant to state or federal law. A concessionaire who is otherwise exempt under this subsection may still be required to provide a living wage to its employees if it engages in activities covered in sections 2-8.9(F)(1) and 2-8.9(F)(2).<<
[[(3)]]>>(4)<< Services performed by county employees. Should any services that are being performed by County employees at the time the ordinance from which this section derives was enacted be solicited in the future by the County to be performed by a service contractor, such services shall be covered services subject to this section regardless of the value of the contract.


Living Wage.
(A) Living wage paid.
(1) Service contractors.�All service contractors as defined by this Chapter, performing covered services shall pay to all of its employees providing covered services, the current Living Wage rate of $12.63 per hour with a qualifying Health Benefit Plan valued at no less than $2.89 per hour per employee and $15.52 per hour if no qualifying Health Benefit Plan is provided by the Service Contractor, applicable to the time when the covered service is performed as that rate is adjusted each fiscal year in the manner provided for herein for the adjustment of the Living Wage rate. >>An employee of a Concessionaire who receives some portion of their wages in the form of tips or gratuities may be paid a wage less than the Living Wage specified herein, so long as the combination of direct wages paid to such employee plus tips or gratuities equals or exceeds, the Living Wage provided for herein. For purposes of evaluating the wage paid to tipped employees, the terms employer, employee, direct wage, tips and gratuity shall have the same meaning as in the Federal Fair Labor Standards Act and its implementing regulations.<<

* * *

Section 3. This ordinance shall not apply to concession agreements entered into prior to its effective date, and nothing herein shall limit the authority of the County Mayor or the County Mayor�s designee with respect to any options to renew incorporated into any agreement currently in effect. The County Mayor or County Mayor�s designee shall not recommend to this Board any additional time extension for any existing concession agreement except in accordance with Resolution No. R-391-17.
Section 4. If any section, subsection, sentence, clause or provision of this ordinance is held invalid, the remainder of this ordinance shall not be affected by such invalidity.
Section 5. It is the intention of the Board of County Commissioners, and it is hereby ordained that the provisions of this ordinance, including any sunset provision, shall become and be made a part of the Code of Miami-Dade County, 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 6. This ordinance shall become effective ten (10) days after the date of enactment unless vetoed by the Mayor, and if vetoed, shall become effective only upon an override by this Board.

1 Words stricken through and/or [[double bracketed]] shall be deleted. Words underscored and/or >>double arrowed<< constitute the amendment proposed. Remaining provisions are now in effect and remain unchanged.



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