Exh 8Ai~
AGENDA ITEM NO: ~ ~I
DATE: '~' - ~~ - 9 9
CITY OF ATLANTIC BEACH
CITY COMMISSION MEETING
STAFF REPORT
AGENDA ITEM: ~ RyderIMLS Cost Increase
SUBMITTED BY: Robert S. Kosoy, Director of Public Works ~~~
DATE: March 30, 1999
BACKGROUND: Ryder/MLS is requesting an increase to the contract for the
current fiscal year (11-17-98 thru 11-16-99) due to rising costs.
Currently the contract price is $169,686.00 and the proposed
increase would be $3,383 for a total of $173,069. Additional
equipment not originally included less the lift stations not
serviced requires a net adjustment of another $2,590 to this
year's budget for a total of $175,659.
This increase in the contract should have been agreed upon 90
days prior to the annual expiration date of November 15, 199'8
However, the language in Article 3.10(a) has been disputed for
the last six months. The proposed rewriting of Article 3.10(a)
will provide an automatic mechanism for renewing the contract
prior to November 15, 1999 and 2000, and is fair to both the
City and the Contractor.
RECOMMENDATION: Approve an increase in Ryder/MLS Contract.
Approve change in Contractual Language in Section 3.10 (a).
ATTACHMENTS: Section 3.10(a) Ryder/MLS Contract
Copy of Consumer Price Indices
RyderlMLS Request
Proposed Change in Contractual Language
REVIEWED BY CITY MANAGER:
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fiscal year and multiplied by the number of weeks in the accounting period. These items will not
be subject to documentation.
3.06 Capital Expenditures -Any and all agreed upon capital expenditures of
Contractor for Units, equipment or other capitalized items, in connection with the services and
tivork to be provided by Contractor hereunder, shall be included in the Approved Budget, pursuant
to the terms of this Contract, based on the following. Using astraight-line method of amortization,
equipment costs will be amortized over a mutually agreed on period, but not to exceed a sixty (60)
month period, and U"nit costs «zll be amortized over a thirty six (36) month period. In addition,
interest at a rate of 1.2~% per month will be charged on the unamortized balance of the cost to
Contractor for such equipment and Units.
3.07 Additional Reimbursable Items - Costs incurred for Unit repairs
necessitated as a result of user abuse, vandalism, and accident damage during the life of the
Contract, will not be included in the actual costs for computation of the Cost Incentive described
below, «zll not be included in the Approved Budget, and will be directly reimbursable by CITY to
Contractor.
3.08 Cost Incentive - In addition to the Contractor's costs and fee, the
Contractor shall receive thirty percent (30%) of any aggregate annual savings to the CITY on the
Approved Budget for each fiscal year. Aggregate annual savings shall be defined as the difference
between a lower hvelve (12) month actual cost to the CI1Y and the amount of the Approved
Budget as stated in Section 3.01. In the event actual aggregate annual costs to the CITY exceed
the Approved Budget amount, 100 hundred percent (100%) of such additional costs shall be
deducted from the Contractor's final fee payment. Aggregate costs that exceed the maximum
amount of 100 percent (100%) of the Approved Budget shall be borne totally by the Contractor.
3.09 4uality Incentive -During the first six months of the contract, the CITY
and Contractor «zll mutually agree on quality/performance incentives and penalties that shall be
added or deducted on a monthly basis from any other pa3~nents due to Contractor pursuant to this
Agreement.
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3.10 Adjustments to the Approved Budget -
9
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(a) Annual Adjustments - The Approved Budget, including
Contractor's fee, shall be adjusted for the second and subsequent years of the Contract to take into
account changes in the cost of doing business. .In the event the parties are unable to reach
agreement on an adjustment to the Approved Budget prior to ninety (90) days before the expiration
of the then current Contract year, either party shall have the right to terminate this Contract, upon
written notice to the other party, as of the end of the then current Contract year.
(ti) Changes in the Size or Mix of the Fleet -The Approved Budget
shall be adjusted to correspond to increases or decreases in the fleet size or the t}•pe of equipment in
each class if such changes are at least five percent (~%) on a prorated Unit cost basis. These
adjustments shall be made semi-annually.
(c) Unusual Costs -Contractor may petition the CITY for an
adjustment to the Approved Budget at reasonable times on the basis of unusual changes in
Contractor's cost of doing business. For purposes of this Section, "unusual changes" shall mean
t 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 amount of an}•
adjustment pursuant to this Section (c) shall be determined b}• mutual agreement.
Section 4 -INVOICING AND PAYMENT
A. At the commencement of operations during this Contract, Contractor shall submit
to the Contracting Officer an invoice for an amount equal to one-twelfth of Contractor's Approved
Budget under the Contract.
B . If Contractor provides service to the CITY as described in Section 9 hereinafter
for more than one year, then, within twenty (20) days following the commencement date of each
consecutive year of operations, Contractor will submit to the Contracting Officer a notice reflecting
any increase in the amount equal to the increase (if any) in the amount equal to one-ttivelfth of the
Contractor's estimated Approved Budget from the amount previously billed as set forth in
paragraph A, or a credit memorandum for any decrease from the amount previously billed.
C. Payments by the CITY of the invoices described in Paragraphs A and B above will
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04/06/99 TIDE 09:43 FAX 404
• 331 3445
~--- EA & I UNIT I~j002
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` BUREAU OF LABOR STATISTICS
for Release:
EST, Tuosday
M.
8:30 A 30~}it:ASTERN REGIONAI.OFFICE
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pecember 15,
1998 A.I'I.fWTA. GEORGIA
TELEPHONE: 4 04-331-3415
Request Document 9105
CONSUMER PRICE INDEX
(1882-84100)
November 1998
A11 urban consumers Wa a earners S clerical workers
Percent Percent Percent Percent
Group U.5. change change
98 U.S.
City change
Nov 97 change
Od 98
cry
Avera a Nov 97
Nov 98 od
Nov 98 Avera a Nov 98 Nov 98
All }terns (1982-84=100) 184.0 1.5 0.0 180.7
8
478 1.4 0.1
All items (1887=100) 481.3 .
7
781
2.1 0.1
Food and'beverages
' 182.5
3
161 2.3
Z3 0.1
-0.1 .
157.7
2.1 0.1
Housing .
184.0 3.5 0.1 178.6 3:4 0.1
Sheller
Rent of primary residence 174.5 3.4 -0 4 134 0 0.3 - ~•2
Apparel 135.0
141
5 0.2
-1.7
0.1
140'8
-1'7
Tt~lnsportetian .
244
7
3.5
0.2
244.0
3.5 0.1
Medlcat pre
Recreation 1/ .
101.3 1.3 0.2 100.8 0.8 0,0
0
Education b communication 1/ 101.0 1.0 ~ ~ 239 2 S ~ -
0.5
- . Other goods and services 240.5 4.8
All urban consumers Wa a esmets 8 clerfcel workers
U Percent Percent Percent
change Percent
change
Group change
97
N change
Od 98 south Nov 97 Od 98
South ov
All items (1982.84=100} 159.8 1.1 -0.1 157.7
4
255 1-0 -0.1
All itenl5 (Dec 1977=100) 258.0 - .
Food and beverages 160.4 1.8 0.0
-0
4 159.3
150
1 1.9
1.4 0.1
-0.3
Houslr~ 151.3
9
145 1.8
0.1 .
0.2 .
145.0 -0.1
Appafel
Transportation .
138.1
-1.8
0.1
0
0
138.8
8
242
-1.8
1
3 01
0
Medical can; 242.3 3.2 .
0
4 .
101.1 - 0.
1
Recreation 1/
Education 8 communication 1/ 101.4
100.9 -
- .
0.3
101.0 -
8
0
0.3
-0
6
ocher goods and services 233.8 5.3 -0.4 2321 . .
1! Indexes on a December
-Not available.
FAX ON-DEMAND NUM6ER IS 404-331-3403
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02/09/99
TL~E 13:57
FdY 40•f 331 3•f.~5 E3 & I is\IT
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JJ 1908 BiP. OeL Nov.
N 1~r1fa .,._...__..._.... _ ._........._....__.._ 100.000 +64.0 161.0 1S 0.0 QO 02 02 '
Jri boss (116'7.+00) _ _......_...__~......._ 491.3 4913 .
Food and DarsaOsa .._,._..~_. _..:...._.__.._. 16.310 162.1 1623 23 .1 A .5 2
Road ~ ........r_ ...____ 1s3z6 162.0 162.1 2.3 a .o .6 .1
• Food at hort+a ~ 9.640 1623 162.5 2.1 A -Z .7 2
farasia and Nslsary produw ..r_.~._....__.•_...._.•._ 1.D30 7421' 1A2.1 23 -.1 A 2 Z
Msau, pora8ry, fttlt, and ~ _..-..._... ..._. 2.629 146.0 1479 -9 -1 -] 2 •2
Osir>randnYefadproduela _ ____.._. 1A37 1sa0 ts69 at :6 1.6 to .6
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~ ~vap ~ i.TOt .1903 196.s 49 •A -2.0 32 -9
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Dawropsmatadafa .....__.._ 1A77 132.6 132.7 •13 .l A A 5
Cttsar•ladaifsaerss , __._........._...........____ 1A72 152.7 152.7 3.4 A .3 .1 .7
S++Qr and awaw . _ _._._. .377 150.3 149.6 1.6 •.6 .~ • 1 .3
Raarandaia _.... ._... _...._......_.._..._._._.. 291 tE0.5 ib6.1 10.s •1.1 19 t:b -.3
OM+ar fooe~ _ -_._ 1.305 16s0 166.7 32 .4 -.1 •.4 7.7
Ghar Rsiaiansosw foods + ~ _.___.._.. __...._ .909 1033 104A 1 ~ .1 •.1 t.3
Rood asra7 ira s hams + ~___ _...._._.~_.»..»...» s.eso 1624 162.6 23 2 w 1 2
OE1r food awgr from ison+a + s ~ .172 1 OZT loss .6 A A .6
1iloo+folrs basraragat ._.~ » __.~.._ 953 106.8 160.6 19 .1 A .1 2
Fiouinq -~._~_»._._._~..._.... __.~~____. 39.560 161.4 lals Z.Z -.1 2 2 .3
t~fabar .__..._._..._.~_____._.._.___ 29.756 1615 164.0 33 .1 .s Z 3
t8ar+1 a primary tNidanes ._..........._..__.^.._.__._..___.. 6.SdS 1 TS.9 1746 3.4 J ,3 .S 2 .
~+0 ~ from home 2 ~ .»_«._..._. 23'21 +003 106.3 •79 2.5 •.3 1.3
Osiwrs' aqulvahnf rw'ti 4f prlrrsary /asJ6rr>n a ..._ 20.199 i 5DJ 1903 33 .3 .3 .3 2
Tarslrtl~' and housahoil Ftsssanea + _ _...^..__M....~_ .377 90.1 90.9 - 2 A 3 2
Ruab and N]•baa _....__...._._._._.~_ .._.~._._._ 4.942 127'.1 1263 .1.5 •3 •.6 •2 .E
Runts ~ ___»......^_......._....~_.._._._». 4A16 1120 111A -6.4 •3 •.5 -.4 .6
i'bM d and o1+ar hiait ..... ~.____.___.._.... .201 56.4 1M.5 -10.1 3 -1 7 •J -5
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Nowahold AsnMars9a and epsaslar»
..~.__...___.. _..._. 4,b31 120.6 120b .1 A 3 2 2
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...__....____._._._»...._._..._.._..
w 4.911 134.8 738.0 2 •A •.7 1 A
Mar-'s and Dora' apparN
.__............_._.__.~...._..__.» 1.900 t34.1 134.+ d A -13 12 •2
YYar+rrs's and giAt' apquei _._._._...._.......»...._.~..~___ 1.990 124.E 12f3 -1.0 -1.0 -.3 .T 3 •
5
6ianls' and 1od~db' appant + ~.._._..~~..~,.......__...._ .266 1302 1313 42 .6 .4 42 .
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fooewar ..._..~....~..._...._.«.._..__._»..... ._._..._. .R9S 130.3 1 X0.4 9 .1 -.4 -2 .E
Ttanapor+stbn _.._»___.~........._._..__..._._._»_......._ 17375 141.3 tots -1.7 .+ -.4 .3 .0
PlAwfatra-wportatiun _____......__._._.»_..»........_.._....... 16240 137.7 158A -1.5 .2 -.3 .4 0
Nor and toad motor vatsk~aa ~ „..._,.._.._...,_.,~,_.._...... 7.599 100.1 100.7 .6 .E .t -.7 .
2
Naarvahiefas __._.....»__.._._......_..,......,..___
• 4.063 1423 1433 •3 .7 -.1 -3 A
lkad aan and tnrlsa 1
~.._,__,_____._..._•.___..._.._.. 1.560 1SJA 154.0 4.3 .7 3 .7 7
Motarfurl __.._..__._..~_._.....„..__......_..... 2.996 00.E 69.7 -t42 •12 •2A 2.8 .
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ciaa06r+a (a9 typas~ .... .»..._....»..._.. _......._. 1.97E 90.3 502 -143 -12 •20 2.7 -.9
Mohr vahfds parts ar+d a4~p~^+ .»-•-..--._.-_.-...._..» .560 101.4 101 A -2 0 A 2 -
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Yoalrvahirlrr mdrtersanp and tipai _._._.......~.._.... lsa3 169D 169.5 lut ' 3 S .4 3 ~
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PL'i+ia irarsapartstbn .».......»....._._.~.._...__.........__....... +.335 1189 ' 151.4 •1.7 -1.6 -S.3 •.5 ~
Madt:a+taara .. ...._...._...._.._._._..._..._. 4614 2443 244.7 ss ~ a 2 2 P~
Wa~lCat oats Cnnrrfo~tSss - -•--».••-----...-.--....._.~... 1222 2242 2245 4A .1 .6 .1 2
MadCat eus arvkas .,«..«._._.____..._..._ .................._...
rtasaabnal senriow
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2242 249,
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221 3.4
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F+o~pihl and rttasad sarvlcas
..,..._..»._.._.
.._._........._ 1334 2902 2903 3.4 2 A .3 2 f,L
Rserardfars 2 -._..»..•.-..._..r._..~...._..__.,..__
~ 6.+45 101.1 10t.J 1.3 2 1 •3 2 l~1 G~
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Yidao and audio t Z ..
........._..___._...._..__.........__......._ 1.703 101.1 100.8 .S -.3 2 -3 •,9 Q,
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Edu~aonrd books and supplies ..........»._,.._........... 2.615
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237.0 104.E
237.1 4.7
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iNonftatlofl and MOrmafion poatsirfq ! 2 «_._.__...__ . ?..9'13
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tnto+rpatlon one Mormatkxs proesaahsq arbor than
14 2.387 100.1 101.1 .4 3 A ,4
INapt»na satricsa
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f'trnasaf compslan an4 paripbsral aquiymant + 2 _.»-.-. .930
234 J6.1
673 3E.3
83.8 -23.6 •22
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Managed Logistics Systems, Inc.
Jacksonville Beach Division
P.O. Box 51421
Jacksonville Beach, Florida 32240
(904) 247-6209 (9041247-6210
(904) 246-9836 FAX
J~~J~~
PROPOSED BUDGET FOR ATLANTIC BEACH: 11/15/98-11/14/99
1
ACCOUNT CURRENT a CHANGE PROPOSED
NAME AMOUNT CHANGE AMOUNT AMOUNT
PARTS ~ 44,583 - .2 $ -89 $ 44,494
LABOR 83,116 3.4 2,826 ~ 85,942
` OTH OP 7,987 3.4~ 272 8,259
ADM EXP 14,200 1.1 156 14,356
h1GMT FEE 19 , 800 1 .1 218 20 , 018
$169,686 X3,383 $173,069
ADD 50 PC S ED. @ ~75.Op EACH ffi3,750
LESS LIFT STATIONS AND GENERA TORS - 1,160
TOTAL ADD ITION TO BUDGE T 2,590
TOTAL BUDGET FOR FISCAL YEAR 98/99 X175,659
Managed Logistics Systems, Inc.
Jacksonville Beach Division
P.O. Box 51421
Jacksonville Beach, Florida 32240
~. (904)247.6209 19041247.6210
(904) 246.9836 FAX
~fa~~~f ~
~~~~
3.10 ~
Adjustment to the Approved Budget
(a) Annual Adjustments - The Approved
Budget, including Contractor's fee, shall be adjusted for
the second and subsequent years of the Contract to take into
account changes in the cost of doingrbusiness. In the event
the parties are unable to reach agreement on an adjustment
to the Approved Budget prior to ninety (90) days before the
expiration of the then current Contract year, either party
shall have the right to terminate this Contract, upon
written notice to the other party, as of the end of the then
current Contract year. Request for Addendum to the~~Contract
Section 3.10. Annual Adjustments to the approved budget for
the contract year will be according to a. Motor Vehicle
Maintenance and Repair CPZ for LABOR AND OTHER EXPENSES. b.
Motor vehicle parts and Equipment CPZ for PARTS. c. Overall
general CPI for ADMINISTRATIVE EXPENSE AND MANAGEMENT FEE.
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