Exh 8EAGENDA ITEM #8E
NOVEMBER 14, 200
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: First Vehicle Services Non-Contract Labor Rate
SUBMITTED BY: Rick Carper, P.E., Public Works Director
DATE: November 7, 2005
BACKGROUND: First Vehicle Services (FVS) is requesting an increase to their
Non-Contract Labor Rate from $22.50 to $40.00 per hour (letter
attached). As stated in their request, FVS has not had an increase in
their Non-Contract Labor Rate since the inception of their contract in
November 1997 (FVS acquired Ryder, the original fleet maintenance
contract holder, in 2000). -
' Section 19 of the Fleet Management and Vehicle Maintenance Services
Contract covers fee /compensation adjustments (attached). Based on
Staff reading of this Section, it would appear that Non-Contract labor fees
should have been included in the annual Consumer Price Index (CPI)
adjustments provided by this section. The original contract amount
awarded to First Vehicle Services in November 1997 was $169,686. The
• current contract (December 2005 -November 2006) is $213,236. The
$43,550 increase averaged over the eight-year period is approximately
3.2°lo I year. The $17.50 per hour requested increase averaged over the
• eight years since 1997 is a 9.7°~ increase per year. Applying the CPI rate
over that time would yield an hourly rate of about $28.30
As stated in the FVS letter, Shop charges for most commercial garages in
our area are $60lhour or more. Although no documentation was found,
Staff believes shop charges have risen much faster than the CPI over the
• intervening period. For the past two years, FVS non-contract labor
charges have averaged less than 1 G hours per month. The budget
impact of granting the fu11 rate increase would be $2000 or less per year.
• RECOMMENDATION: Approve a Non Contract Labor Rate increase from $22.50 per
.. hour to $28.30 per hour, and include the Non-Contract Labor Rate in
future CPI adjustments.
BUDGET: Fleet Maintenance Non-Contract account number 001-5004-549-34.02
has $18,000.00 budgeted in FY 2006.
ATTACHMENTS: 1) First Vehicle Services letter dated October 25, 2005.
2} Fleet Management and Vehicle Maintenance Services Contract
Section 19
REVIEWED BY CITY MANAGER:
AGENDA ITEM #8E
NOVEMBER 14, Z00~
First Vehicle Services
P.O. Box 51421
Jacksonville Beach, Florida 32240
Tel 904-247-6209 Ext. 10
Fax 904-246-9836
Forst Vehi I ~"
c e ,~
Services
October 25, 2005
MR. RICK CARPER
PUBLIC WORKS DIltECTOR
1200 SANDPIPER LANE -
ATLANTIC BEACH, FLORIDA
DEAR MR. CARPER,
WE RESPECTFULLY REQUEST AN INCREASE FROM $22.50 TO $40.00 PER
HOUR FOR NON CONTRACT LABOR. SINCE THE GOING RATE FOR LABOR
IN THIS AREA IS $60.00 TO $70.00 PER HOUR AND SINCE WE HAVE NOT HAD
AN INCREASE SINCE THE INCEPTION OF OUR CONTRACT IN NOVEMBER OF
1997, WE FEEL THIS TO BE A REASONABLE REQUEST.
.. THANKING YOLJ FOR YOUR CONSIDEP.ATION IN THIS MATTER, I AM
.. SINCERELY YOURS, .-
. T~~ .
FRANK SANDERSON
GENERAL MANAGER
FIlZST VEHICLE SERVICES
A FirstGroup America ~j Company
AGENDA ITEM #8E
NOVEMBER 14, 2005
Section 18 AUDITING PROCEDURES
The City authorized representatives shall have access, at all reasonable times, to all
Contractor's personnel, books, records, correspondence, instructions, plans, drawings, receipts,
' voucliers and memoranda of every description pertaining to work under contract for the ose
Pm'P
of auditing and verifying costs of work and upon prior notice to the Contractor's project
manager. The City representatives shall have the right to reproduce any of the aforesaid
documents pertaining to City vehicles until such vehicles shall be sold or destroyed.
The extent and character of the work to be done by the Contractor shall be subject
to the general control and approval of the Director of Public Works or his/her authorized
representatives. The Contractor will not comply with requests and/or orders issued by other than
the Director of Public Works or his/her designee acting within their authority for the City.
Section 19 INVOICING AND PAYMENT
Adjustments to Provide for Chance -The fees or compensation payable to the Contractor for the
subsequent terms of this agreement shall be adjusted upward or downward to reflect changes in
the cost of doing business, as measured by fluctuations in the Consumer Price Index (CPI)
published by the U.S. Department of Labor, Bureau of Labor Statistics. At the start of a new
term of the Contract, the "target" price shall be increased or decreased by a percentage amount
equal to the net percentage change in the CPI computed as follows:
,~:
Beginning with the first month of the second contract year, the net change
shall be the difference between the said CPI for the last full month preceding the contract date
~- and the last month of the first contract year. Subsequent years of the Contract shall be adjusted
annually based upon the net change for the preceding twelve (12)-month contract period. No
automatic adjustments shall be permitted during any extension beyond said initial term, all rates
shall be subject to the prior approval of the City Commission.
a. Factors to Measure Changes in the Size of the Fleet -The Contract
.payment may be adjusted to correspond with significant additions or
deletions tc~ the. fleet size as set forth in the agreement. Far each
vehicle above the allowable five percent (5%) increase in fleet size, the
Contractor shall be entitled to an increase equal to one-half (1l2) the
existing prorated vehicle unit cost.
b. Unusual Changes or Costs -The Contractor may petition the City for
rate adjustments at reasonable times on the basis of unusual changes in
their cost of doing business. For purposes of this section, "unusual
changes" shall mean items not covered by this agreement which occur
through no fault of the Contractor. The term shall not include price
increases arising in the ordinary course of business. The total cost for
such service shall be based on rates jointly agreed to by the Director of
Public Works or his/her designee and the Contractor must notify the
City at least thirty (30) days prior to any projected cost overrun of the
"target" price. Such notice shall be in writing and mailed return
receipt requested.
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