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Amendment No. 6 to the Agreement with Limousines of South Florida, Inc. p a , '50 - if AMENDMENT NO. 6 TO THE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND LIMOUSINES OF SOUTH FLORIDA, INC. FOR THE TURN-KEY OPERATIONS AND MAINTENANCE SERVICES OF MUNICIPAL TROLLEY SYTEM FOR THE CITY OF MIAMI BEACH PURSUANT TO ITB 2014-154-SR This Amendment No. 6 ("Amendment") to the Agreement, dated May'8, 2014, by and between the City of Miami Beach, Florida, a municipal corporation organized and existing under the laws of the State of Florida, having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139 (the "CITY"), and Limousines of South Florida, Inc, having its principal place of bu iness at 2766 N.W. 62 Street, Miami, Florida 33147 ("CONTRACTOR"), is entered into this day of . ec,�'Pi , 2018 (Effective Date) and hereby amends the Contract as follows: RECITALS WHEREAS, on April 30, 2014, the City Commission approved the award of Invitation to Bid (ITB) No. 2014-154-SR for Turn-Key Trolley Operations and Maintenance Services to Limousines of South Florida, Inc. (LSF or CONTRACTOR); and WHEREAS, on May 8, 2014, the City and LSF executed the Agreement; and WHEREAS, on July 30, 2014, the Mayor and City Commission adopted Resolution No. 2014-28708, authorizing the City to execute Amendment No. 1 to the Agreement, which increased the scope of the Agreement to include optional equipment, as well as additional automated stop announcement equipment, with the capability of displaying public advertisements; and WHEREAS, on October 6, 2014, the City and CONTRACTOR executed Amendment No. 1; and WHEREAS, on March 18, 2015, the Mayor and City Commission adopted Resolution No. 2015-28967, approving and authorizing Amendment No. 2 to the Agreement, incorporating an enhanced Scope of Services to the Agreement in order to accommodate additional transportation expenses needed for the City's Centennial celebration, during the 2014-2015 fiscal year, solely; and WHEREAS, on March 24, 2015, the City and CONTRACTOR executed Amendment No. 2; and WHEREAS, on October 21, 2015, the Mayor and City Commission adopted Resolution No. 2015-29194, waiving, by 517th vote, the competitive bidding requirement and approving Amendment No. 3 to the Agreement; said amendment providing for (1) the addition of the operation and maintenance services for two new routes in Middle Beach (the Middle Beach Loop and the Collins Link); (2) the addition of fourteen (14) new modified/kneeling high-floor/rear end wheel chair lift trolley vehicles (New Modified trolley vehicles) for the operation of the North Beach and Middle Beach routes, in an amount not to exceed $6,700,000 annually; (3) a negotiated new hourly rate commensurate with the cost of said trolley vehicles and the additional services for the new Middle Beach routes; (4) the early exercise of the two (2) Page 1of5 renewal options, extending the agreement to May 7, 2021; (5) in addition to the term provided in the previous subsection (4), further extending the term, as to each route, to include a full sixty (60) month term, commencing as of the roll-out date of all the modified high-floor trolley vehicles for each respective route; and (6) and authorizing the City Manager to approve the purchase of additional optional equipment for the New Modified trolley vehicles; and WHEREAS, on January 14, 2016, the City and CONTRACTOR executed Amendment No. 3; and WHEREAS, on July 20, 2016, the Mayor and City Commission adopted Resolution No. 2016-29519, accepting the recommendation of the City Manager and waiving, by 5/7`h vote, the competitive bidding requirement, finding such waiver to be in the best interest of the CITY, and approving Amendment No. 4 to the Agreement in substantial form, increasing the scope of the .Agreement to include the following: (1) the addition of one (1) bi-directional route in South Beach for a term of sixty (60) months, commencing as of the roll-out date for the Low-Floor trolley vehicles; (2) the addition of twelve (12) new Low-Floor trolley vehicles for use in all CITY trolley routes; (3) a negotiated new hourly rate for the Low-Floor trolley vehicles and additional associated services; and (4) increasing the annual cost of the Agreement, from a not to exceed cost of $6,700,000 to a not to exceed cost of $12,000,000; authorizing the City Manager to approve, the purchase of additional optional equipment for the Low-Floor trolley vehicles, as may be needed in the Administration's discretion, subject to funding availability; and authorizing the City Manager to terminate the existing interlocal agreement, in connection with the negotiation of a new interlocal agreement with Miami-Dade County, in connection with the South Beach route; and WHEREAS, Amendment No. 4 to the Agreement was executed on March 29, 2017 and is in full effect; and WHEREAS, on May 17, 2017, the Mayor and City Commission adopted Resolution No. 2017-29873, approving and authorizing the City Manager and City Clerk to execute Amendment No. 5 to the Agreement; approving the replacement of the Collins Link route alignment with the Collins Express route, at no additional cost to the City, to provide more direct intracity connectivity between Washington Avenue/Lincoln road and 88 Street; and WHEREAS, Amendment No. 5 to the Agreement was executed on October 26, 2017 and is in full effect; and WHEREAS, the Agreement is subject to the City's Living Wage Ordinance (as described below) per Section 10 of the ITB 2014-154-SR WHEREAS, on October 18, 2017, the Mayor and City Commission adopted Ordinance No. 2017-4143, attached as Exhibit "A" hereto, which amended certain provisions of the City Living Wage Ordinance (the "Ordinance")as codified in Sections 2-407 through 2-410 of the City of Miami Beach Code of Laws and Ordinances (the"City Code"); and WHEREAS, the primary purpose of the amendment to the Ordinance was to adjust and increase the hourly living wage rate and health benefit paid by service contractors covered under the Ordinance to their covered employees with proposed increases to be "phase-in" over a three (3)year period, commencing on January 1, 2018, as follows: Page 2 of 5 • Effective January 1, 2018, covered employees must be paid a living wage rate of no less than $11.62 per hour with health care benefits of at least $2.26 per hour, or a-living wage rate of no less than $13.88 per hour without health care benefits; and • Effective January 1, 2019, covered employees must be paid a living wage rate of no less than $11.70 per hour with health care benefits of at least $2.74 per hour, or a living wage rate of no less than $14.44 per hour without health care benefits; and • Effective January 1, 2020, covered employees must be paid a living wage rate of no less than $11.78 per hour with health care benefits of at least $3.22 per hour, or a living wage rate of no less than $15.00 without health care benefits; and WHEREAS, each year, as part of the annual budget process, the City Commission considers whether or not it desires to revise or maintain the proposed living wage rates via ordinance No. 2017-4143; and WHEREAS, at its April 20, 2018 meeting, the Mayor and City Commission accepted the recommendation of the Finance and Citywide Projects Committee, to approve the living wage rate of no less than $11.70 per hour (with health care benefits of at least $2.74 per hour), or a living wage rate of no less than $14.44 per hour (without health care benefits), effective January 19, 2019; and WHEREAS, in order to assure that covered service contractors doing business with the City continue to comply with the provisions of the Ordinance as amended it is necessary to amend all the current contracts between the City and service contractors subject to and covered by the provisions of the Ordinance; and NOW THEREFORE, in consideration of the mutual promises and conditions contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the City and CONTRACTOR hereby agree to amend the Agreement as follows: 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated as part of this Amendment. 2. MODIFICATIONS. The Agreement is hereby modified to add the following: (a) The City will pay CONTRACTOR a lump sum payment of $75,530.06 to cover the unpaid increased labor costs as a result of the modifications to the Ordinance for services provided to the City, pursuant to the Contract, from January 1, 2018 through September 30, 2018. (b) Based upon the approved City budget for FY 2018-2019, from October 1, 2018 through December 31, 2018, CONTRACTOR will invoice the City, on a monthly basis, an additional $0.63 per trolley service hour ($0.57 for the living wage impact and $0.06 for related payroll taxes), to cover the increase in the minimum wage rate. (c) Effective on January 1, 2019, CONTRACTOR will invoice the City, on a monthly basis, an additional $1.25 per trolley service hour ($1.13 for the living wage impact and $0.12 for related payroll taxes). (d) Similarly, any increase in the minimum wage for calendar year 2020 shall be subject to approval, by the City Commission, during the 2019-2020 fiscal year budgetary process. Page 3 of 5 (e) Exhibit "E" "Living Wage Impact" is added to the Agreement and depicts the not to exceed amount the City will reimburse the CONTRACTOR as a result of the impact of the Ordinance during calendar year 2018, with an effective date of January 1, 2018. The payment is calculated based on amount of final trolley service hours for each of the months invoices were processed or.anticipated number of trolley service hours for upcoming invoices in calendar year 2018; however, the CONTRACTOR shall only be reimbursed for the amount of final trolley service hours, at $0.57/hour, plus $0.06/hr for related payroll taxes. Exhibit "E" will have to be amended if the number of trolley operating hours increases during calendar year 2018. 3. RATIFICATION. Except as amended herein, all other terms and conditions of the Agreement shall remain unchanged and in full force and effect. In the event there is a conflict between the provisions of this Amendment and the Agreement, the provisions of this Amendment shall govern. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. Page 4 of 5 IN 'WITNESS WHEREOF, the parties hereto' have' caused this Amendment to :be executedby their appropriate offiCialt, as of the date first entered above. FOR CITY: 'CITY OF MIAMI BEACH,;FLORIDA ATTEST: Rafael E:Grenedo,'City CJ "j1Ji1,1,10-1+44or les, City Manager '....... .4 \\- .. ....*1 At 1 )/ -..P se Date: * INCORP ORATED *; ...7,'••• A ' FOR CONTRACTOR: litt! S OF SOUTH'FLORIDA, INC: 441%I-1 26 v2,. ‘v. ATTEST:' 1 010111PP By: _Id" 41P Sefrrtary pair w reSidej EQ0)42 6V/I/Zikte? ale ke Print NamePrint,N:Me 11122 le Date • - - = - - - - APPROVED AS:TO FORM & LANGUAGE PITRANISALLITfansitlAmenditiontslkmendthent 6IAmendment No.6 to Trolley Agreement ResoORtjECMION ,dacx . - t Page-5 of 5 City•AttorriOy Date EXHIBIT A LIVING WAGE ORDINANCE 2017-4143 ORDINANCE NO. 2017-4143 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING CHAPTER 2 OF THE CITY OF MIAMI BEACH CODE, ENTITLED"ADMINISTRATION," BY AMENDING ARTICLE VI, ENTITLED "PROCUREMENT," BY AMENDING DIVISION 6, ENTITLED "LIVING WAGE REQUIREMENTS FOR SERVICE CONTRACTS AND CITY EMPLOYEES," BY AMENDING SECTION 2-408, ENTITLED"LIVING WAGE," BY INCREASING THE CURRENT LIVING WAGE RATE OF$11.62 PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST $1.69 PER HOUR, OR NO LESS THAN $13.31 PER HOUR WITHOUT HEALTH CARE BENEFITS, IN A "PHASE-IN" APPROACH COMMENCING ON JANUARY 1, 2018 AND ENDING ON DECEMBER 31, 2020 AS FOLLOWS: 1)A LIVING WAGE OF NO LESS THAN $11.62 PER HOUR WITH HEALTH CARE BENEFITS OF AT • LEAST $2.26 PER HOUR, OR A LIVING WAGE RATE OF NO LESS THAN $13.88 PER HOUR WITHOUT HEALTH CARE BENEFITS, COMMENCING JANUARY 1, 2018, 2)A LIVING WAGE RATE OF NO LESS THAN $11.70 PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST$2.74 PER HOUR, OR A LIVING WAGE RATE OF NO LESS THAN $14.44 PER HOUR WITHOUT HEALTH CARE BENEFITS, COMMENCING ON JANUARY 1, 2019, AND 3)A LIVING WAGE RATE OF NO LESS THAN $11.78 PER HOUR WITH HEALTH CARE BENEFITS OF AT LEAST $3.22 PER HOUR, OR A LIVING WAGE RATE OF $15.00 PER HOUR WITHOUT HEALTH CARE BENEFITS, COMMENCING ON JANUARY 1, 2020 AND ENDING ON DECEMBER 31, 2020; BY REQUIRING THAT COMMENCING ON JANUARY 1, 2021, AND EACH YEAR THEREAFTER, ANY INCREASE TO THE SUPPLEMENTAL HEALTH CARE BENEFITS RATE, AS APPROVED BY COMMISSION, BE CALCULATED USING THE MIAMI CONSUMER PRICE INDEX EXCLUSIVELY FOR "MEDICAL CARE" FOR ALL URBAN CONSUMERS (CPI-U) IN THE MIAMI/FT. LAUDERDALE AREA; AND, PROVIDING FOR REPEALER, SEVERABILITY, CODIFICATION,AND AN EFFECTIVE DATE. WHEREAS, pursuant to Section 2-408(a) of the Code of the City of Miami Beach, any service contractor entering into a covered services contract with the City, as defined in Section 2-407, must pay to all its employees, who provide services under the covered contract, the stipulated living wage rates, as approved by the City Commission; and • WHEREAS, pursuant to Section 2-408(d) of the City of Miami Beach Code, the living wage rate may, by resolution of the City Commission, be indexed annually for inflation using the Consumer Price Index for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale area, issued by the U.S. Department of Labor, Bureau of Labor Statistics; and WHEREAS, at its April 26, 2017 meeting, the City Commission, pursuant to Agenda • Item C4-G, approved a referral to the Finance and Citywide Projects Committee (the "Committee")for a discussion on whether or not to change the current Living Wage hourly rate; and WHEREAS, at its July 10, 2017 meeting, after several discussions, and after considering all available options, the Committee recommended indexing the living wage rate cumulatively by 5.62% in a "Phase-In" approach to catch up with inflation from previous years (from January 1, 2016 through December 31, 2016, and from January 1, 2017 through December 31, 2017) Sec. 2-408. Living wage. (a) Living wage paid. =- = . - -_ e -, -2 _ _ - - _ _ 2-•2 _ _ Using a tem"phase-in" approach , the=rziew hourly living wage rates are adopted as follows: (1) Effective January 1, 2018, covered employees must be paid a living wage rate of no less than 11.62 per hour with health care benefits of at least 4 2.26 per hour, or a living wage rate of no less than $4946 per hour without health care benefits: (2) Effective January 1, 2019, covered employees must be paid a living wage rate of no less than $1424•S 111Q per hour with health benefits of at least $475 2.74 per hour, or a living wage rate of no less than 1 . • .-r hour without health care benefits; • (3) Effective January 1, 2020, covered employees must be paid a living wage rate of no less than $ 11.78 per hour with health care benefits of at least$4=9 3,22 per hour. or a living wage rate of no less than 15.00 per hour without health care benefitscommissior3 . (b) Health benefits; eligibility period. For a covered employer or the city to comply with the living wage requirements of this division by choosing to pay the lower wage scale available when a covered employer also provides health care benefits, such health care benefits shall consist of payment of at least$444$4 2.26 per hour toward the provision of a health care benefits plan for covered employees and their dependents effective January 1, 2018, and thereafter, as provided in subsections 2-408(a)(1)-(3). ff the health care benefits plan of a covered employer requires an initial period of employment for a new employee to be eligible for health care benefits (eligibility • period) the living wage requirements of this division shall be deemed to have been complied with during the eligibility period, provided the covered employer commences to pay the applicable living wage rate without health care benefits, effective as of the date of hire of the covered employee. Upon completion of the eligibility period, and provided the new employee will be provided health care benefits, a covered employer may commence to pay the applicable living wage rate with health care benefits. SECTION 2. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 3. SEVERABILITY. r If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 4. CODIFICATION. It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this Ordinance shall become and be made part of the Code of the City of Miami Beach, Florida. The sections of this Ordinance may be renumbered or re- lettered to accomplish such intention, and the word "ordinance" may be changed to "section," "article,"or other appropriate word. SECTION 5. EFFECTIVE DATE. This Ordinance shall take effect on the 1st day of January, 2018. PASSED AND ADOPTED this day of OCh , 2017. ATTEST: • • O' -� BrEq c;�►,,� fEU/. o)h s .^� e / 'y 7'eMaYor Rafael E. Granado, City Clerk pi'. - • v;.` .Ot'�i Underline denotes additions \ t�., ,• APPROVED AS TO . StAke-through denotes deletions FORM&LANGUAGE Double underline denotes additions.after Fifst'f2e ling^'' & OR E U 1ON 4 _ 17 denotes deletions a(ter.Firs'f Reading City Attorney c Dote (Sponsored by: Commissioner Ricky Arriola) the following periods between January 1, 2016 — December 31, 2016 and January 1, 2017 — December 31, 2017. Pursuant to Section 2-408(d) of the City of Miami Beach Code, the living wage rate may, by resolution of the City Commission, be indexed annually for inflation using the Consumer Price Index for all Urban Consumers (CPI-U) Miami/Ft. Lauderdale area, issued by the U.S. Department of Labor, Bureau of Labor Statistics. According to the City Code, the City Commission may: 1) index the Living Wage rate annually; 2) index the Living Wage rate cumulatively to"catch up" for any prior year(s)where there was/were no increase(s); or 3) may elect to forego any increases if it determines it would not be fiscally sound to do so. - u At its April 26, 2017 meeting, the City Commission, pursuant to Agenda Item C4-G, approved a referral to the Finance and City-Wide Projects Committee (the "Committee") for a discussion on whether or not to change the current Living Wage hourly rate. The discussion item was originally presented to the Committee at its May 19, 2017, meeting for indexing the living wage rate. At that time, representatives of the Service Employees International Union (SEIU) also presented recommendations to the Committee that it proposes for both the living wage rates and amendments to,the language and requirements of the Living Wage Ordinance (the °Ordinance"). Following the discussion of the information presented by both the Administration and SEIU, the Committee deferred the discussion to its June 30, 2017, meeting and requested staff to meet with the representatives of SEIU to determine the fiscal impacts of the different rates proposed and to provide an analysis of the amendments to the City's living wage ordinance proposed by SEIU. At its June 30, 2017, meeting, the Committee considered the information requested, which included the proposed living wage rates,each rate's potential fiscal impact as noted in the table below. Option Agency LW Health LW Potential Rate Benefit Rate Fiscal with Minimum without Impact Health Amount Health Benefits Benefits Miami 1 Beach $11.91 $1.73 $13.64 $ 351,622 (single year option) Miami 2 Beach $12.27 $1.79 $14.06 $ 799,140 (catch up option) • 3 SEIU $13.00 $3.16 $16.16 $3,036,732 On June 30, 2017, the Committee directed staff to consider any circumstances that may reduce the fiscal impact of the living wage rate options noted above. In carrying out the direction of the Committee,staff considered two scenarios that may reduce the fiscal impact of any increase: 1. Are any contractor employees at or above any proposed rate and,therefore, not_eligible for an increase? In this scenario, only the fiscal impact from reimbursing contractors for those employees that would actually receive the increase is considered in the Revised Potential Fiscal Impact. 2. Is the City considering reductions in the current level of service for any of the contracts to which the living wage rate currently applies? Since the City is, in fact, considering reductions in the Page 501 of 1633 • That figure is estimated at approximately$150,000. On June 30, 2017, the Committee also requested options for staggering the implementation of rate increases to mitigate the impact on any given year. One approach for doing so is a phased-in option over three (3) years, The tables below shows some potential options for phasing in the rate increases for Options 2 and 3. A longer phase-in period (e.g., five years) is also an option at the Committee's discretion, especially for Option 3. Phase-in for Option 2 Current Option 2 Difference 2018 2019 2020 Rate Rate $13.31 $14.06 $.75 $13.56 $13.81 $14.06 (.25/year for 3 (13.31+.25) (13.56+.25) (13.81+.25) years) plus any plus any increase in increase in CPI for CPI for - 2019 2020 Fiscal Impact $586,364 $195,455 $195,455 $195,455 plus the plus the ($195,455/year impact of impact of for 3 years) any rate any rate increase in increase in in 2019 in 2020 J Phase-in for Option 3 Current Option 3 Difference 2018 2019 2020 Rate Rate $13.31 $16.16 $.2.85 $14.26 $16.16 (.95/year for 3 (13.31+.95) $15.21 (15.21+.95) years) plus any (14.26+.95) increase in plus any CPI for increase in 2020 CPI for 2019 Fiscal Impact $798,560 $798,560 $798,560 • $2,395,681 plus the plus the impact of impact of ($798,560.33/year any rate any rate for 3 years) increase in increase in in 2019 in 2020 After considering all options, the Committee recommended approval of the Option 2 Phase-in. This option consists of indexing current living wage rates by a 5.62% cumulatively increase in a"Phase- • In" approach to catch up with inflation from previous years when no living wage increases took place; and further to require that commencing on fiscal year 2019 and thereafter, any 'annual adjustment for inflation to the supplemental health care benefits hourly rate, as approved by the City Commission, be calculated using the Miami Consumer Price Index exclusively for°medical care" for all Urban consumers(CPI-U)in the Miami/Ft. Lauderdale area. On September 25, 2017, after considering the Committee's recommendation during First Reading of this Ordinance, the Mayor and City Commission directed the City's Administration to increase the Page 503 of 1633 EXHIBIT E LIVING WAGE ORDINANCE IMPACT Exhibit E "Living Wage Impact" is added to the Agreement and depicts not to exceed amount the CITY will reimburse the CONTRACTOR as a result of Living Wage Ordinance (LWO) No. 2017-4143 impact during calendar year 2018, with an effective"date of January 1, 2018. The payment is calculated based on amount of final service hours for each of the months invoices were processed or anticipated number of service hours for upcoming invoices in calendar year 2018, however, the CONTRACTOR shall only be reimbursed for the amount of final service hours, at $0.63/hour ($0.57 for living wage impact and $0.06 for related payroll taxes). Exhibit E shall be amended if the number of trolley operating hours increases during calendar year 2018. South Beach Trolley Middle Beach Loop Collins Express North Beach Loop Calendar Year Service Living Wage Service . Living Wage Service Living Wage Service Living Wage 2018 Hours 1 Impact($.63/hr)2 Hours Impact($.63/hr) Hours Impact($.63/hr) Hours Impact($.63/hr) January 5488.20 $3,457.57 3131.00 . $1,972.53 2899.28 $1,826.55 2179.76 $1,373.25 February 4927.00 $3,104.01 2463.25 $1,551.85 2948.37 $1,857.47 1973.44 $1,243.27 March 5458.77 $3,439.03 2726.83 $1,717.90 3262.55 $2,055.41 2162.85 $1,362.60 April 5272.42 $3,321.62 2631.65 $1,657.94 3155.84 $1,988.18 2098.46 $1,322.03 May 5465.69 $3,443.38 2717.11 $1,71178 3274.76 $2,063.10 2178.05 $1,372.17 June 5273.37 $3,322.22 2640.93 $1,663.79 3164.25 $1,993.48 2086.48 $1,314.48 July 5391.89 $3,396.89 2718.74 $1,712.81 3248.46 $2,046.53 2163.33 $1,362.90 August 5286.25 $3,330.34 2750.00 $1,732.50 3300.00 $2,079.00 2200.00 $1,386.00 September 5300.00 $3,339.00 2650.00 $1,669.50 3180.00 $2,003.40 2120.00 $1,335.60 October 5500.00 $3,465.00 2750.00 $1,732.50 3300.00 $2,079.00 2200.00 $1,386.00 November 5320.00 $3,351.60 2660.00 $1,675.80 3192.00 ,$2,010.96 2128.00 $1,340.64 December 5480.00 $3,452.40 2740.00 $1,726.20 3288.00 $2,071.44 2192.00 $1,380.96 Total per route 64,163.59 $40,423.06 32,579.51 $20,525.09 38,213.51 $24,074.51 25,682.37 $16,179.89 1 Table indicates actual number of service hours for each of the routes from January through end of September based on processed invoices and an anticipated number of operating hours Octobr through December.The final number of operating hours is typically less then anticipated due to service interruptions. 2$.63 per hours consists of$0.57 for living wage impact and$0.06 for related payroll tax. v AMENDMENT NO. 6 TO THE AGREEMENT BETWEEN THE CITY OF MIAMI BEACH, FLORIDA AND LIMOUSINES OF SOUTH FLORIDA, INC. FOR THE TURN-KEY OPERATIONS AND MAINTENANCE SERVICES OF MUNICIPAL TROLLEY SYTEM FOR THE CITY OF MIAMI BEACH PURSUANT TO ITB 2014-154-SR This Amendment No. 6 ("Amendment") to the Agreement, dated May 8, 2014, by and between the City of Miami Beach, Florida, a municipal corporation organized and existing under the laws of the State of Florida, having its principal place of business at 1700 Convention Center Drive, Miami Beach, Florida 33139 (the "CITY"), and Limousines of South Florida, Inc, having its principal place of business at 2766 N.W. 62 Street, Miami, Florida 33147 ("CONTRACTOR"), is entered into this day of , 2018 (Effective Date) and hereby amends the Contract as follows: RECITALS WHEREAS, on April 30, 2014, the City Commission approved the award of Invitation to Bid (ITB) No. 2014-154-SR for Turn-Key Trolley Operations and Maintenance Services to Limousines of South Florida, Inc. (LSF or CONTRACTOR); and • WHEREAS, on May 8, 2014, the City and LSF executed the Agreement; and WHEREAS, on July 30, 2014, the Mayor and City Commission adopted Resolution No. 2014-28708, authorizing the City to execute Amendment No. 1 to the Agreement, which increased the scope of the Agreement to include optional equipment, as well as additional automated stop announcement equipment, with the capability of displaying public advertisements; and WHEREAS, on October 6, 2014, the City and CONTRACTOR executed Amendment No. 1; and WHEREAS, on March 18, 2015, the Mayor and City Commission adopted Resolution No. 2015-28967, approving and authorizing Amendment No. 2 to the Agreement, incorporating an enhanced Scope of Services to the Agreement in order to accommodate additional transportation expenses needed for the City's Centennial celebration, during the 2014-2015 fiscal year, solely; and WHEREAS, on March 24, 2015, the City and CONTRACTOR executed Amendment No. 2; and WHEREAS, on October 21, 2015, the Mayor and City Commission adopted Resolution No. 2015-29194, waiving, by 5/7`h vote, the competitive bidding requirement and approving Amendment No. 3 to the Agreement; said amendment providing for (1) the addition of the operation and maintenance services for two new routes in Middle Beach (the Middle Beach Loop and the Collins Link); (2) the addition of fourteen (14) new modified/kneeling high-floor/rear end wheel chair lift trolley vehicles (New Modified trolley vehicles) for the operation of the North Beach and Middle Beach routes, in an amount not to exceed $6,700,000 annually; (3) a negotiated new hourly rate commensurate with the cost of said trolley vehicles and the additional services for the new Middle Beach routes; (4) the early exercise of the two (2) Page 1 of 5 renewal options, extending the agreement to May 7, 2021; (5) in addition to the term provided in the previous subsection (4), further extending the term, as to each route, to include a full sixty (60) month term, commencing as of the roll-out date of all the modified high-floor trolley vehicles for each respective route; and (6)'and authorizing the City Manager to approve the purchaseof additional optional equipment for the New Modified trolley vehicles; and WHEREAS, on January 14, 2016, the City and CONTRACTOR executed Amendment No. 3; and WHEREAS, on July 20, 2016, the Mayor and City Commission adopted Resolution No. 2016-29519, accepting the recommendation of the City Manager and waiving, by 5/7t vote, the competitive bidding requirement, finding such waiver to be in the best interest of the CITY, and. approving Amendment No. 4 to the Agreement in substantial form, increasing the scope of the .Agreement to include the following: (1) the addition of one (1) bi-directional route in South Beach for a term of sixty (60) months, commencing as of the roll-out date for the Low-Floor trolley vehicles; (2)the addition of twelve (12) new Low-Floor trolley vehicles for use in all CITY trolley routes; (3) a negotiated new hourly rate for the Low-Floor trolley vehicles and additional associated services; and (4) increasing the annual cost of the Agreement, from a not to exceed cost of $6,700,000 to a not to exceed cost of $12,000,000; authorizing the City Manager to approve the purchase of additional optional equipment for the Low-Floor trolley vehicles, as may be needed in the Administration's discretion, subject to funding availability; and authorizing the City Manager to terminate the existing interlocal agreement, in connection with the negotiation of a new interlocal agreement with Miami-Dade County, in connection with the South Beach route; and WHEREAS, Amendment No. 4 to the Agreement was executed on March 29, 2017 and is in full effect; and WHEREAS, on May 17, 2017, the Mayor and City Commission adopted Resolution No. 2017-29873,, approving and authorizing the City Manager and City Clerk to execute Amendment No. 5 to the Agreement; approving the replacement of the Collins Link route alignment with the Collins Express route, at no additional cost to the City, to provide more direct intracity connectivity between Washington Avenue/Lincoln road and 88 Street; and WHEREAS, Amendment No. 5 to the Agreement was executed on October 26, 2017. and is in full effect; and WHEREAS, the Agreement is subject to the City's Living Wage Ordinance (as described below) per Section 10 of the ITB 2014-154-SR WHEREAS, on October 18, 2017, the Mayor and City Commission adopted Ordinance No. 2017-4143, attached as Exhibit "A" hereto, which amended certain provisions of the City Living Wage Ordinance (the "Ordinance")as codified in Sections 2-407 through 2-410 of the City of Miami Beach Code of Laws and Ordinances (the"City Code"); and WHEREAS, the primary purpose of the amendment to the Ordinance was to adjust and increase the hourly living wage rate and health benefit paid by service contractors covered under the Ordinance to their covered employees with proposed increases to be "phase-in" over a three (3)year period, commencing on January 1, 2018, as follows: Page 2 of 5 • Effective January 1, 2018, covered employees must be paid a living wage rate of no less than $11.62 per hour with health care benefits of at least $2.26 per hour, or a living wage rate of no less than $13.88 per hour without health care benefits; and • Effective January 1, 2019, covered employees must be paid a living wage rate of no less than $11.70 per hour with health care benefits of at least $2.74 per hour, or a living wage rate of no less than $14.44 per hour without health care benefits; and • Effective January 1, 2020, covered employees must be paid a living wage rate of no less than $11.78 per hour with health care benefits of at least $3.22 per hour, or a living wage rate of no less than $15.00 without health care benefits; and WHEREAS, each year, as part of the annual budget process, the City Commission considers whether or not it desires to revise or maintain the proposed living wage rates via ordinance No. 2017-4143; and WHEREAS, at its April 20, 2018 meeting, the Mayor and City Commission accepted the recommendation of the Finance and Citywide Projects Committee, to approve the living wage rate of no less than $11.70 per hour (with health care benefits of at least $2.74 per hour), or a living wage rate of no less than $14.44 per hour (without health care benefits), effective January 19, 2019; and WHEREAS, in order to assure that covered service contractors doing business with the City continue to comply with the provisions of the Ordinance as amended it is necessary to amend all the current contracts between the City and service contractors subject to and covered by the provisions of the Ordinance; and NOW THEREFORE, in consideration of the mutual promises and conditions contained herein, and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the City and CONTRACTOR hereby agree to amend the Agreement as follows: 1. ABOVE RECITALS. The above recitals are true and correct and are incorporated as part of this Amendment. 2. MODIFICATIONS. The Agreement is hereby modified to add the following: (a) The City will pay CONTRACTOR a lump sum payment of $75,530.06 to cover the unpaid increased labor costs as a result of the modifications •to the Ordinance for services provided to the City, pursuant to the Contract, from January 1, 2018 through September 30, 2018. (b) Based upon the approved City budget for FY 2018-2019, from October 1, 2018 through December 31, 2018, CONTRACTOR will invoice the City, on a monthly basis, an additional $0.63 per trolley service hour ($0.57 for the living wage impact and $0.06 for related payroll taxes), to cover the increase in the minimum wage rate. (c) Effective on January 1, 2019, CONTRACTOR will invoice the City, on a monthly basis, an additional $1.25 per trolley service hour ($1.13 for the living wage impact and $0.12 for related payroll taxes). (d) Similarly, any increase in the minimum wage for calendar year 2020 shall be subject to approval, by the City Commission, during the 2019-2020 fiscal year budgetary process. Page 3 of 5 (e) Exhibit "E" "Living Wage Impact" is added to the Agreement and depicts the not to exceed amount the City will reimburse the CONTRACTOR as a result of the impact of the Ordinance during calendar year 2018, with an effective date of January 1, 2018. The payment is calculated based on amount of final trolley service hours for each of the months invoices were processed or anticipated number of trolley service hours for upcoming invoices in calendar year 2018; however, the CONTRACTOR shall only be reimbursed for the amount of final trolley service hours, at $0.57/hour, plus $0.06/hr for related payroll taxes. Exhibit "E" will have to be amended if the number of trolley operating hours increases during calendar year 2018. 3. RATIFICATION. Except as amended herein, all other terms and conditions of the Agreement shall remain unchanged and in full force and effect. In the event there is a conflict between the provisions of this Amendment and the Agreement, the provisions of this Amendment shall govern. THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK. Page 4 of 5