AGENDA ITEM REPORT
TITLE:
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A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE, TO EXECUTE AMENDMENT NO. 1 TO THE AGREEMENT WITH FLORIDATOURS.COM, LLC FOR CHARTER BUS TRANSPORTATION SERVICES TO APPROVE A FUEL CHARGE ADJUSTMENT TO THE CONTRACTED HOURLY RATES PURSUANT TO IFB NO. 11-09-22-12.
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BACKGROUND:
On December 13, 2022, the City entered into an agreement with FloridaTours.com, LLC for charter bus transportation services pursuant to IFB No. 11-09-22-12. The agreement provides charter bus transportation for Parks and Recreation programs, special events, and other City-sponsored activities.
The current agreement does not include a fuel surcharge provision that allows for adjustments when diesel fuel costs increase significantly. Since the contract was awarded, the contractor has experienced substantial increases in diesel fuel prices, resulting in higher operating expenses.
DISCUSSION:
FloridaTours.com, LLC submitted a request to amend the agreement to include a fuel surcharge adjustment. According to the contractor, a typical motorcoach consumes approximately 30 gallons of diesel fuel on a local camp trip. Based on an average diesel fuel price increase of $1.65 per gallon, the contractor estimates an additional operating cost of approximately $49.50 per trip, or $9.90 per bus hour for an average five (5)-hour trip. Rather than requesting recovery of the full additional fuel cost, the contractor requested a $4.95 per bus hour increase to the contracted hourly rates to partially offset these increased operating expenses.
Approval of the amendment will revise the hourly rates by $4.95 per bus hour as follows:
|
Bus Type |
Current Rate |
Revised Rate |
|
38-Passenger Bus |
$120.00 |
$124.95 |
|
55-Passenger Bus |
$125.00 |
$129.95 |
|
60-Passenger Bus |
$140.00 |
$144.95 |
|
ADA Compliant Bus |
$125.00 |
$129.95 |
The requested adjustment will help maintain uninterrupted charter bus transportation services for City programs, while allowing the contractor to partially recover increased fuel costs. This adjustment will be retroactive to July 1, 2026, and will remain in effect for the remainder of the contract, with the final renewal period expiring in December 2027, as fuel prices are not anticipated to decline significantly during this period. Funding for these additional costs is available within the approved operating budget.
RECOMMENDATION:
Staff recommends approval of this resolution.
FISCAL IMPACT:
REVENUES: $ 0
EXPENDITURES: $ 102,130 Total annually
BUDGETED? Yes
NOTES: Estimated annual impact of fuel surcharge adjustment is approximately $4,000. Sufficient funding is available within the approved FY 2026 operating budget and the requested fuel increase will not impact the proposed budget for FY 2027. Funding is available from Accounts 0183-5250, Summer Camp (Proposed expenditure $79,200); 0183-4801, Special Events (Proposed expenditure $14,780); 0183-3412, Recreational Contract Services (Proposed expenditure $2,090); 61-T22020, Senior Center ($6,060 as a pass-through of costs).