A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT NO. 1 TO CONTRACT NO. 21-094-01, BETWEEN THE CITY AND FRANMAR CORPORATION, PURSUANT TO INVITATION TO BID (ITB) NO. 2021-094-AY FOR BUS TRANSPORTATION SERVICES; SAID AMENDMENT INCREASING THE HOURLY RATE FOR SERVICES FROM $58.00 TO $80.00 PER HOUR, EFFECTIVE NOVEMBER 16, 2022, SUBJECT TO POSSIBLE ANNUAL RATE INCREASES, NOT TO EXCEED 3%, SUBJECT TO APPROVAL BY THE CITY MANAGER AND FUNDING AVAILABILITY; AND FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE AMENDMENT.

Approve amending Contract No. 21-094-01 between the City of Miami Beach and Franmar Corporation, Inc. for bus transportation services, increasing the hourly rate from $58.00 per hour to $80.00 per hour, and further allowing for a rate evaluation and a possible increase on an annual basis during the life of the contract not to exceed the annual Consumer Price Index (CPI), subject to the Department’s approved budget.

During the March 9, 2016 City Commission meeting, the bus transportation services contract was awarded to Franmar Corporation, Inc. (“Franmar”) and Air B School Bus Transportation, Inc. (“Air B”) for a period of two (2) years and three (3) additional one (1) year renewals (Exhibit A).

Due to poor performance and failure to correct contract violations, on September 19, 2018 the City terminated the agreement between the City of Miami Beach and Air B for bus transportation services. Since then, Franmar has been the primary provider for bus transportation for the City.

At the time of the contract’s expiration on November 24, 2021, the City went out to bid. The Invitation To Bid (“ITB”) was issued on March 16, 2021, with an opening date of April 13, 2021. Bid notices were issued to 3,298 companies. The notices resulted in the receipt of one (1) bid from Franmar offering the same rate of $58.00 per hour throughout Miami-Dade, Broward and Palm Beach counties. The City felt confident with the proposal as Franmar has worked well with the City in the past, has a large fleet to fully service the City’s needs and is very responsive. During the June 23, 2021 City Commission meeting, the Commission approved the City Manager’s recommendation pursuant to the ITB to award Contract No. 21-094-01 (Exhibit B) to Franmar for bus transportation services.

Franmar has been in constant contact with the Parks and Recreation Department (the “Department”) and has expressed that due to rising prices in labor, fuel and fleet, they are no longer able to provide their services at the contract rate of $58.00 per hour. City staff has been communicating with Franmar and based on research conducted with other providers in South Florida, staff agrees that an increase is justified.

The Department’s research found that an hourly rate of $80.00 per hour is fair and equitable for both the City and the Contractor, as it is in line with what other vendors are charging, or less in some cases. A change in rate requires an amendment to the contract.

As a result, the Department recommends amending the current contract to increase the hourly rate from $58.00 per hour to $80.00 per hour effective immediately. Franmar has always provided the City with great customer service, has a sufficient fleet for all of the Department’s requests, and is very accommodating in providing the City with bus services for its many programs and events for seniors, after school, summer camps and other City initiatives such as the Veteran’s Day Parade, Memorial Day, etc.

The amendment would also include for the hourly rate to be evaluated for a possible increase not to exceed the annual Consumer Price Index (CPI) on an annual basis versus at the time of renewal. Any increase is subject to the Department’s approved annual budget for bus transportation.