HomeMy WebLinkAboutResolution 2026-34079RESOLUTION NO. 2026-34079
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM,
AMENDMENT NO. 1 TO THE AGREEMENT BETWEEN THE CITY AND
LIMOUSINES OF SOUTH FLORIDA, INC., PURSUANT TO INVITATION TO
NEGOTIATE (ITN) NO. 2024-008-ND FOR MUNICIPAL CIRCULATOR
SERVICES; SAID AMENDMENT PROVIDING FOR A FIFTEEN PERCENT
(15%) INCREASE TO THE HOURLY OPERATING RATES FOR THE EXISTING
FLEET OF TROLLEY VEHICLES UNTIL THE NEW FLEET OF TROLLEY
VEHICLES HAS BEEN PLACED INTO OPERATION (TRANSITION PERIOD),
FOR AN ADDITIONAL COST OF APPROXIMATELY $1.4 MILLION DOLLARS
PER YEAR DURING THE TRANSITION PERIOD, THEREBY INCREASING
THE TOTAL CONTRACT AMOUNT FOR THE OPERATION OF THE EXISTING
FLEET TO APPROXIMATELY $10.7 MILLION PER YEAR, SUBJECT TO
FUNDING APPROPRIATION AND APPROVAL BY THE CITY COMMISSION
PURSUANT TO AN AMENDMENT TO THE FY 2026 BUDGET AND FUNDING
APPROPRIATION AND APPROVAL BY THE CITY COMMISSION DURING
THE CITY'S BUDGETARY PROCESS FOR SUBSEQUENT FISCAL YEARS;
AND AUTHORIZE THE CITY MANAGER TO FINALIZE THE AMENDMENT;
AND FURTHER, AUTHORIZE THE CITY MANAGER AND CITY CLERK TO
EXECUTE THE AMENDMENT.
WHEREAS, on December 17, 2025, the Mayor and City Commission approved, in
substantial form, an Agreement between the City of Miami Beach, Florida (the "City"), and
Limousines of South Florida, Inc. ("LSF"), pursuant to Invitation to Negotiate ("ITN") No. 2024-
008-ND, for the provision of Municipal Circulator Services, which Agreement was executed by
the parties on January 30, 2026; and
WHEREAS, pursuant to the Agreement, LSF will initiate the procurement of new 30-foot
and 40-foot Clean Diesel Gillig Low -Floor trolley vehicles pursuant to a Notice to Proceed signed
by the parties on January 30, 2026; however, due to an anticipated production and delivery
timeline of approximately eighteen (18) to twenty (20) months, with staggered deliveries, the City
will continue to rely on the existing LSF-owned trolley vehicles, dedicated solely for use in
connection with the operation of the City's municipal circulator services ("Existing Fleet"), until
the New Fleet has been placed in operation ("Transition Period"); and
WHEREAS, the hourly operating rates currently in effect under the Agreement are based
on rates originally established under the City's prior agreement with LSF pursuant to ITN No.
2014-154-SR, and the most recent adjustment to those rates occurred in July 2020, with no
subsequent increases approved since that time; and
WHEREAS, since the last rate adjustment in 2020, the Consumer Price Index has
increased by approximately twenty-five percent (25%), reflecting significant increases in labor,
fuel, insurance, maintenance, and overall operating costs associated with trolley operations; and
WHEREAS, during the Transition Period, the City's trolley service will continue to rely on
the aging Existing Fleet, many of which are 2016 model trolley vehicles with mileage nearing or
exceeding 300,000 miles, requiring increased maintenance and operational support to ensure
service reliability; and
WHEREAS, LSF has documented significant inflationary cost increases since 2020,
including substantial increases in insurance premiums, maintenance and replacement parts, and
overall operating expenses associated with continued operation of the Existing Fleet; and
WHEREAS, by correspondence dated July 15, 2025, LSF formally requested a fifteen
percent (15%) increase to the current hourly operating rates for the Existing Fleet during the
Transition Period to offset documented inflationary cost increases and to sustain uninterrupted
trolley service; and
WHEREAS, the proposed fifteen percent (15%) increase would adjust the hourly
operating rates for the Existing Vehicles during the Transition Period as follows:
Current Rates for Existing Fleet during the Transition Period:
Monthly Service
Between
Between
Between
Between
Between
Hours for Combined
10,777—
8,757—
6,736-8,756
4,715-6,735
2,694-4,714
Fleet
16,165 hrs
10,776 hrs
hrs
hrs
hrs
Hourly Rate for High -
Floor & Modified
$69.34
$76.02
$81.74
$92.38
$118.96
High -Floor Trolley
Vehicles*
Hourly Rate for Low -
Floor Trolley
$80.88
$87.56
$93.28
$103.92
$130.50
Vehicles*
Proposed Fifteen Percent (15%) Increase in the Hourly Rate for the Existing Fleet during
the Transition Period:
Between
Between
Between
Between
Between
Monthly Service Hours
10,777—
8,757—
6,736-8,756
4,715-6,735
2,694-4,714
for Combined Fleet
16,165 hrs
10,776 hrs
hrs
hrs
hrs
Hourly Rate for High -
Floor & Modified High-
$79.74
$87.42
$94.00
$106.24
$136.80
Floor Trolley Vehicles*
Hourly Rate for Low- $93.01 $100.69 $107.27 $119.51 $150.08
Floor Trolley Vehicles*
WHEREAS, the Administration recommends that the Mayor and City Commission
approve, in substantial form, Amendment No. 1 to the Agreement, a copy of which is attached to
the City Commission Memorandum; said Amendment approving the new hourly rates for the
Existing Fleet during the Transition Period to maintain service reliability and operational continuity
of the City's municipal circulator services, for an additional cost of approximately $1.4 million
dollars per year during the Transition Period, thereby increasing the total contract amount for the
operation of the Existing Fleet to approximately $10.7 million per year, subject to funding
appropriation and approval by the City Commission pursuant to an amendment to the FY 2026
budget and funding appropriation and approval by the City Commission during the City's
budgetary process for subsequent fiscal years.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby approve, in substantial form, Amendment No. 1 to the Agreement between
the City and Limousines of South Florida, Inc., pursuant to Invitation to Negotiate (ITN) No. 2024-
008-ND for Municipal Circulator Services; said Amendment providing for a fifteen percent (15%)
increase to the hourly operating rates for the Existing Fleet of trolley vehicles until the New Fleet
of trolley vehicles has been placed into operation (Transition Period), for an additional cost of
approximately $1.4 million dollars per year during the Transition Period, thereby increasing the
total contract amount for the operation of the Existing Fleet to approximately $10.7 million per
year, subject to funding appropriation and approval by the City Commission pursuant to an
amendment to the FY 2026 budget and funding appropriation and approval by the City
Commission during the City's budgetary process for subsequent fiscal years; and authorize the
City Manager to finalize the Amendment; and further authorize the City Manager and City Clerk
to execute the Amendment.
PASSED and ADOPTED this S day of F61'04, 2026.
ATTEST:
7�4 FEB 0 9 2026
Rafael E. Granado, City Clerk
Steven Meiner, Mayor
APPROVED AS TO
FORM Sr LANCUAG E
nEXECUTION
2 f Z f ?_02-(
City Attorney _.t' Date
Resolutions - C7 S
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Eric Carpenter, City Manager
DATE: February 5, 2026
TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, APPROVING, IN SUBSTANTIAL FORM, AMENDMENT
NO. 1 TO THE AGREEMENT BETWEEN THE CITY AND LIMOUSINES OF SOUTH
FLORIDA, INC., PURSUANT TO INVITATION TO NEGOTIATE (ITN) NO.2024-008-
ND FOR MUNICIPAL CIRCULATOR SERVICES; SAID AMENDMENT PROVIDING
FOR A FIFTEEN PERCENT (15%) INCREASE TO THE HOURLY OPERATING
RATES FOR THE EXISTING FLEET OF TROLLEY VEHICLES UNTIL THE NEW
FLEET OF TROLLEY VEHICLES HAVE BEEN PLACED INTO OPERATION
(TRANSITION PERIOD), FOR AN ADDITIONAL COST OF APPROXIMATELY $1.4
MILLION DOLLARS PER YEAR DURING THE TRANSITION PERIOD, THEREBY
INCREASING THE TOTAL CONTRACT AMOUNT FOR THE OPERATION OF THE
EXISTING FLEET TO APPROXIMATELY $10.7 MILLION PER YEAR, SUBJECT TO
FUNDING APPROPRIATION AND APPROVAL BY THE CITY COMMISSION
PURSUANT TO AN AMENDMENT TO THE FISCAL YEAR 2026 BUDGET AND
FUNDING APPROPRIATION AND APPROVAL BY THE CITY COMMISSION
DURING THE CITY'S BUDGETARY PROCESS FOR SUBSEQUENT FISCAL
YEARS, AND AUTHORIZE THE CITY MANAGER TO FINALIZE THE
AMENDMENT; AND FURTHER, AUTHORIZE THE CITY MANAGER AND CITY
CLERK TO EXECUTE THE AMENDMENT.
RECOMMENDATION
The City Administration ("Administration") recommends that the Mayor and City Commission
("City Commission") adopt the Resolution.
BACKGROUND/HISTORY
On December 17, 2025, the City Commission approved, in substantial form, an Agreement
between the City of Miami Beach ("City") and Limousines of South Florida, Inc. ("LSF"), pursuant
to Invitation to Negotiate ("ITN") 2024-008-ND for Municipal Circulator Services (the
"Agreement"). The Agreement between the City and LSF is currently in the process of
being executed.
Pursuant to the Agreement, LSF has proceeded with placing orders for new 30-foot and 40-foot
Clean Diesel Gillig Low -Floor Trolley vehicles to support the City's municipal circulator operations.
Due to the anticipated production and delivery timeline of 18-20 months and the staggered
delivery schedule of approximately two (2) vehicles per month, the City will continue to rely on the
existing LSF-owned trolley fleet for at least the next two (2) to three (3) years ("Transition Period").
This phased transition approach was anticipated as part of the procurement and implementation
strategy and allows the City to preserve uninterrupted circulator service while the new vehicles
are manufactured and delivered.
The hourly operating rates currently in effect under the Agreement are the same
rates established under the City's prior agreement with LSF for operation and maintenance of
citywide trolley services, pursuant to ITN No. 2014-154-SR. The most recent adjustment to LSF's
691 of 2180
hourly operating rate occurred in July 2020, through Amendment No. 9 to the prior agreement.
Since that time, there have been no subsequent rate adjustments. Over the same period, the
Consumer Price Index ("CPI") has increased by approximately twenty-five percent (25%),
reflecting significant increases in labor, fuel, insurance, parts, and overall operating costs;
however, the hourly operating rates paid to LSF have remained unchanged.
As outlined above, the City will continue to rely on the existing trolley fleet to maintain current
service levels and operational continuity of the City's trolley services. LSF has agreed to
continue operating its current trolley vehicles, most of which are 2016 models with mileage
nearing or exceeding 300,000 miles. However, LSF has documented significant inflationary
increases in insurance, maintenance, and operating costs since the last hourly rate adjustment
approved by the City in 2020. These cost pressures are driven by escalating premiums associated
with the City's required insurance coverage of $1,000,000 per vehicle, rising prices for critical
replacement parts for the existing vehicles, and overall operational cost increases associated with
keeping an aging fleet in continuous service. It is important to note that the City's current trolley
service consists of a total of 31 vehicles, with 21 vehicles in service daily for 15 hours a day, year-
round, serving approximately 10,000 riders a day.
While LSF initially requested a 25% increase in the hourly operating rates consistent with CPI
increases over the past five (5) years, as a result of negotiations between the City staff and LSF, a
15% increase was deemed fair and reasonable. As such, in its correspondence to the City dated
July 15, 2025 (Attachment A), LSF officially requested a 15% increase to the current hourly
operating rates ($76.02 per hour for high -floor trolleys and $87.56 per hour for low -floor trolleys,
both subject to the City's annual Living Wage adjustments) during the Transition Period to offset
the rising operating and maintenance costs. LSF's analysis, included with the letter, references
the following cost increases:
Insurance Costs — Premiums have increased from $19,500 in 2022 to a projected
$36,685 in 2028 (an 88% increase).
Maintenance Costs — Replacement parts have increased approximately 31 % since
2022, with many critical components experiencing even higher price jumps.
Operating Costs — Industry -wide increases in labor, fuel, and other recurring operating
expenses have further impacted service costs.
It is important to note that although the existing vehicle fleet is fully depreciated, the original capital
cost is a lapsed cost that does not reduce the current or future rate of operating those vehicles.
As vehicles age beyond their service life, repair and maintenance costs increase materially due
to higher failure rates, increased labor hours, part availability challenges and related
issues, notwithstanding CPI increases. As such, the increase in operations and maintenance
costs far outweighs the savings in capital cost.
The proposed 15% increase to the current hourly operating rates for the City's Trolley service is
intended to sustain service reliability during the Transition Period until the new fleet of vehicles is
delivered and placed into service. Without this rate adjustment, there is an increased risk of
experiencing more frequent service disruptions due to the higher costs of maintaining an aging
trolley fleet in service.
FISCAL IMPACT STATEMENT
The proposed 15% increase would adjust the current hourly operating rates as follows:
• High -Floor Trolleys: from $76.02 per hour to $87.42 per hour
• Low -Floor Trolleys: from $87.56 per hour to $100.69 per hour
For comparison, the hourly operating rate for new vehicles, once placed into service, will be
$124.19 per hour.
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Based on the current annual contract value of approximately $9.3 million, a 15% increase would
result in an estimated additional annual cost of $1.4 million, bringing the total annual contract
value to approximately $10.7 million. For Fiscal Year 2026, the estimated additional annual cost
would be approximately $950,000 (pro -rated from February 2026 through September 2026). This
increase is currently unfunded. As a result, should the City Commission approve this
item, a subsequent budget amendment would be required. The increased cost for Fiscal Year
2027 is subject to City Commission approval through the Fiscal Year 2027 budget process.
The Administration recommends that while the City Commission evaluates the proposed 15%
increase to the current hourly operating rates for the City's Trolley service during the Transition
Period, it also carefully considers several critical factors that will significantly impact the General
Fund budget:
1. The Commission's December 17, 2025 Resolution: The City Commission has
directed the Administration to prepare the Fiscal Year 2027 budget based on the
projected rolled -back millage rate. This directive may necessitate expenditure reductions
of up to $25 million from the current service -level budget before any consideration of
enhancements.
2. Escalating Capital Needs: The City continues to face an increasingly unfunded Capital
Improvement Program, placing additional pressure on long-term financial sustainability.
3. State -Level Tax Policy Risks: The State is contemplating measures to eliminate or
significantly reduce property taxes. Given that 62% of the General Fund revenue is
derived from property taxes, this poses a substantial risk to the City's fiscal stability.
Does this Ordinance require a Business Impact Estimate?
(FOR ORDINANCES ONLY)
If applicable, the Business Impact Estimate (BIE) was published on:
See BIE at: https://www.miamibeachfl.gov/city-hall/city-clerk/meeting-notices/
FINANCIAL INFORMATION
$950,000 / TBD
CONCLUSION
The Administration recommends that the City Commission adopt the Resolution,
thereby approving, in substantial form, Amendment No. 1 to the Agreement between the City and
Limousines of South Florida, Inc., pursuant to Invitation To Negotiate (ITN) No. 2024-008-
ND for Municipal Circulator Services; said amendment providing for a fifteen percent (15%)
increase to the hourly operating rates for the existing fleet of trolley vehicles until the new fleet of
trolley vehicles have been placed into operation (Transition Period), for an additional cost of
approximately $1.4 million dollars per year during the Transition Period, thereby increasing the
total contract amount for the operation of the existing fleet to approximately $10.7 million per year,
subject to funding appropriation and approval by the City Commission pursuant to an amendment
to the Fiscal Year 2026 budget and funding appropriation and approval by the City Commission
during the City's budgetary process for subsequent fiscal years, and authorize the City Manager
to finalize the Amendment; and further, authorize the City Manager and City Clerk to execute the
Amendment.
Applicable Area
Citywide
693 of 2180
Is this a "Residents Right to Know" item,
pursuant to City Code Section 2-17?
Yes
Is this item related to a G.O. Bond
Proiect?
No
Was this Agenda Item initially requested by a lobbyist which, as defined in Code Sec. 2-481,
includes a principal engaged in lobbying? No
If so, specify the name of lobbyist(s) and principal(s):
Department
Transportation and Mobility
Sponsor(s)
Co-sponsor(s)
Condensed Title
Approve Amendment 1 to Agreement w/ LSF, Municipal Trolley System for MB. TR
Previous Action (For City Clerk Use Only)
694 of 2180
_ SHUTTLE
A TRANSPORTATION AMFRICA COMPANY
July 15, 2025
The Cite of Miami Beach
Negotiation Committee
c/o Jose Gonzalez Director of Transportation
1700 Convention Center Drive
3'a I'loor
Miami Reach, FI., 33139
Re: Negotiations for ITN 2024-008-ND for Municipal Circulator Services
Dear Negotiation Committee:
As the longstanding provider for the City of Miami Beach's Trolley Program. Limousines
of South Florida, Inc. (LSF) is pleased to have been again recommended for award in connection
with the above -referenced procurement following a competitive process.
As discussed during the Negotiation Committee process, LSF will immediately place an
order to procure the Gilllig buses requested by the City, but as noted by the manufacturer, high
demand and supply chain issues in the industry forecast the production date commencing 18-
months from the issuance of the Purchase Order/Notice to Proceed, with projected delivery dates
of 2 vehicles per month. In this regard, to ensure continuity of services, LSF has agreed to continue
providing services during the Transition Period with the existing Fleet that is owned by LSF. To
this end, LSF requires a nominal adjustment of the existing rates that have not been raised for
several years to account for continued increases in maintenance and part replacement costs, as well
as escalations in insurance and related operational costs.
The existing rates are S72.49 (with an annual Living Wage Adjustment) per hour for the
Nigh Floor Trolleys, and S84.03 (with an annual Living Wage Adjustment) per hour for the Low
Floor Trolleys. It is important to underscore the fact that LSF has been operating on a month -to -
month basis — with no rate adjustment — while the City has been administering the procurement
process for the successor Contract. This process has encountered several delays, and LSF has
maintained the rates constant, despite having originally agreed to the existing rates for a fixed
period that has since been extended. Accordingly, during the Transition Period delineated in
Section 1.04 of the new Contract, LSF is requesting a rate adjustment of 15% to account for
operational increases until the new Trolleys are delivered, which is expected to occur February
2028.
At the City's request, LSF is providing this analysis of the increased operating costs
associated with the Trolleys currently in service within our local transit system. l'his analysis
includes actual cost increases observed from 2022 through 2025. as well as the additional months
until LSF is in receipt of all new Trolleys. Please keep in mind that these projections consider that
the existing (aging) Fleet will continue in operation until February 2028, and potentially beyond.
2766 NW 62nd street
Miami, Florida 33147
Te1305.265.3302
Fax305.265.3303
695 of 2180
LS)C SHUTTLE
A TRANSPORTATION AMERICA COMPANY
The anal% sis focuses on three (3) key cost categories, and to ensure accuracy. LSF analyzed
actual east increases for the following categories over the past three (3) years, and the projected
increases until February 2028:
Insurance
1.SF "s Insurance Broker has provided the following actual cost increases, as well as
projections until LSF receives the new vehicles., and the first dollar coverage for the City's required
$1,000,000 Combined Single limit Coverage rate per vehicle is as follows:
i Li l /2022 - 1/ 1 /2023: $19,500.00
1/1/2023 - l/l/2024: $22,425.00
> 1 i 112024 - 1 / 1 /2025: $25,798.00
;0 1 P'2025 - 1/l/2026: $29,650.00
> l/1 /2026 - 1/l /2027: $33,350.00
➢ 1 / 1 /2027 - 1 / 1 i202R: $3605 00
Maintenance
LSF reviewed the most common replacement parts that are used in the City's Trolley Fleet
Maintenance Program from 2022 through June 2025. As noted below. there has been a steadv
increase of 31 % of actual price points on equipment and parts - again, with no corresponding rate
adjustments since the current Contract is on a month -to -month basis. Presumably, these
escalations will continue until the Trolleys arc all replaced - likely February 2028 - at an even
greater pace, as the Fleet is aging, with most vehicles having a model year of 2016, and mileage
nearing (or surpassing 300,000 miles).
PART
DESCRIPTION
PRICE 2022
PRICE 2025
4376312
EGR COOLER
$
1,747.75
$
2,091.81
5473368RX
EGR VALVE
$
764.01
$
906.10
6398557RX
HIGH PRESSURE PUMP
$
2,382.89
$
2,800.51
04.31353-
004
DEF SENDER/HEADER
$
423.82
$
566.99
5473368RX
EGR VALVE
$
764.01
$
906.10
4309439
COMPRESSOR HFAD
$
930.18
$
1,151.75
HOR-
9904019A
FAN CLUCH CUMMINS
$
1,038.38
$
1,236.90
4387304RX
DOSER PUMP TROLLEY
$
1.050.85
$
1,309.78
27" NW 62nd Street
Miami, Florida 33147
Tel30S.265.3302
Faz305.265.3303
696 of 2180
LSPO
_ SH_UTTtE�
A TRANspoit- rioN AMERICA COMPANY
4326873RX
NOX SENSOR CUMMINS
$
613.16
$
648 30
HOR995580
FAN CLUTCH ANTI ROTA
$
169.55
$
203.65
DUAL HEAD
4089215
COMPRESSOR
$
2,295.09
$
3,586.03
HOR-
9904019A
FAN CLUCH CUMMINS
$
1,038.38
$
1.236.90
WAB1432.
433-037-0
MIAMI BEACH TWIN AIR
$
1,614.91
$
2,898.86
5506956
DEF PUMP CUMMINS
$
1,C93.20
$
1,325.04
Operations
On the proceeding pages of this letter, please find a market study that LSF has undertaken
to forecast projected increases in industry operating costs for similar transit models. LSF has
considered data collection that is publicly reported from government transportation sources, transit
industn publications, and %endor maintenance reports. Historical trends and predictive modelling
%alidate the aforementioned actual cost increases for Insurance and Maintenance, and predict
similar escalations for Operations through the end of 2027 in the double-digit range, clearly
indicating a financial burden in continuing to operate the existing Trolle} Fleet. Additionally.
driver turnover. as well as recent uncertainties in the marketplace relative to employee
displacement resulting from immigration -related policies (like the TIPS issue) also have an
operational cost component. Again, the current rates were agreed upon and implemented on Jule
8. 2021 (pursuant to addendum # 1 l of our Agreement — four (4) )cars ago — and we know that all
vehicles will not be replaced until February 2028. Consequently, the requested 15% increase in
rates during the Transition Period is fair and reasonable. and provides LSF with the flexibility to
ensure that the 'I rolley Fleet is appropriately maintained and readily available tar operational
success and continued delivery of the important services that the Miami Beach residents and
patrons ha%a grown accustomed to.
Thank %ou for %our consideration of this matter.
Attachment
RG 'nm
S' cc /
O
\Ray le
Prcy dent ( TO
2766 NW 62nd Street
Miami, Florida 33147
Te 305.265.3302
.r30', 26% 3303
697 of 2180
Operations Market Study
r;l,'FIt:,1:I/7,'{)itCic[7D7C/'EQSE.Ci17!!t[iU.Sll:, 0pi't(ilUl"" costs fDYSII?Il(RIIY[JILs'1111J�h11Y1.
Increased percentage of costs to operate 2016 transit vehicles in 2025 compared to
2022
Operating 2016 transi- vehicles in 2025 incurs s gnificantly nigher percentage costs
compared to 2022 due to the interplay of several inflationary pressures:
• Overall Transportation Inflation: Transportation costs experienced an average
inflation rate of 0.633,10 per year between 2022 and 2025. However, this overall figure
masks sharper increases in specific categories like motor vehicle maintenance and
repair and rnotor vehicle insurance.
• Maintenance and Repair: This area shows a sign ficant increase. Between 04 2021
and 04 2022, parts costs jumped by 29%, white tabor costs increased by over 10%.
This trend continued with repair expenses rising by 23% in 2023, and in 01 2025,
average service costs edged up another 2.6% over the 2024 average. The aging of the
2016 fleet further contributes to rising maintenance needs as vehicles become more
prone to breakdowns and require more frequent servicing. Additionally, a growing
backlog of deferred maintenance on pubic transit systems. with inflation accounting
for nearly half of the increase between 2008 and 2022, wilt tead to higher repair costs
when addressed.
• Insurance Premiums: Commercial auto insurance premiums have been steadily
rising, driven by factors like inflation impacting repair and replacement costs,
increasing claims severity, and expensive litigation, While the rate of increase might
be less dramatic in 2025 compared to 2024's 16.5% surge, the average annual cost of
auto insurance is still projected to reach a historic high in 2025.
• Parts Costs: Beyond general maintenance. specific parts categories have seen
sign-fficant price ;+gimps, such as a 23.7% increase in diesel oil change costs in Q1
2025. Tariffs In 2025 are expected to further Impact parts p� ices, potentially causing
increases of 15% to 25% for parts and 20% for materials like paint/coatings.
In summary: The aging of the 2016 transit fleet coupled with ongoing inflation in
maintenance and repair costs (both parts and tabor), increasing insurance premiums due to
higher Claim severity and social inflation. and the impact of new tariffs, results in a
substantial increase In the overall percentage costs of operating these vehicles in 2025
compared to 2022.3
698 of 2180
• Tariffs: New tariffs introduced in 2025 on imported vehicles and parts will increase
the cost of repairs and parts, notes Assurant. This will impact the cost of maintaining
the fleet, particutarly if parts are sourced from countries subject to tariffs.
Estimated percentage increase
While a precise overall percentage increase is difficult to calculate without detailed financial
data for the specific fleet, it's clear that the combination of these factors points towards a
significant overall increase in operating costs for a 2016 transit vehicle fleet between 2022
and 2025. The impact of rising maintenance, repair, and insurance costs, coupled with
potential tariff impacts, driving the overall percentage increase upwards.
• Maintenance costs alone saw Increases of 29% (parts) and over 10% (labor) between
Q4 2021 and 04 2022.
• Repair costs rose 23% in 2023.
• Auto insurance premiums saw a 15% increase in 2024. and are projected to increase
another 5% in 2025 Insunfy projects a 42% increase in full -coverage rates between
2022 and 2024 alone.
Therefore, the substantial increases in maintenance, parts, and insurance premiums wilt
likely lead to an overall double-digit percentage increase in operating costs between 2022
and 2025,
Overview
Transit service repair and maintenance costs for 2016 vehicles are likely to have increased
from 2022 to 2025 due to factors like inflation, rising labor costs, and the age of the vehicles.
White specific data for 2016 vehicles is not available, general trends in transit maintenance
costs and the specific challenges of maintaining older vehicles suggest a rise in expenses.
Here's a breakdown of the factors contributing to potential cost increases:
Inflation:
General inflation, particularly on parts and materials, has dnven up the cost of maintenance
ano repairs across various industries, including transit.
Rising Labor Costs:
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Service technician wages have Increased, further contributing to the overall cost of
maintenance.
Age of Vehicles:
2016 vehicles, now being 9- 10 years old in 2025, are likely to require more frequent
and extensive repairs as they age, increasing maintenance needs and assoc►atea
expenses.
Increased Utilization:
If 2016 vehicles are stilt In service and experiencing high utilization rates, this can
accelerate wear and tear, leadir�g to more frequent r-naintenance and higher costs,
According to Automotive Fleet Magazine.
Specialized Repairs:
Older vehicles may require specialized repairs or parts that are more difficult to
source, potentially increasing both the cost and time required for maintenance.
Technological Advancements:
While 2016 ve~icies might not have the same advanced systems as newer models, they still
may have sorne technological components that are becoming more expensive to repair as
they age.
Parts Availability:
While riot specific to 2016 vehicles, supply chain Issues can affect the availability and cost
of Darts for any vehicle.
Transportation Services CPI Increase (2022-2025!
• According to Bureau of Labor Statistics data. the CPI for transportation services rose
by approximately 24.6% over this per od.
• A $20 basket In 2022 would cost around $24.92 by 2025-an increase of $4.92 ur 24.620r0'
• The average annual inflation rate for transportation services during this period was about
7.61% per year
Comparison: Transportation Services vs. Overall Transportation
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• Transportation (general) CPI. which includes fuel and vehicle purchases, grew much less -
only 1.9% :'ram 2022 to 2025 (S20 - $20.38)
• Thus. services atone drove most of the increase.
Why the Big Gap?
• Fuel prices and vehicle costs stabilized or fell (especially in late 2022 and 2023). dragging
down the overall transportation CPI.
e Meanwhile, insurance premiums, repairs. and public transit fares kept rising sharply,
averaging 7-1011rb annually through 2024
Quick Summary Table
CPI category Increase (2022 - 2025)
Transportation Services +24.6%
Ali Transportation +1 .9%
Bottom Line
e If you're tracking costs related to auto servicing. insurance. rideshares. public transit. etc..
expect them to have climbed by roughly 25% since 2022.
• In contrast, transportation as a whole --including fuel and vehicle prices-- rose only about
2%.
• Yearly CPI Increases for Transportation
• 2022. +15.47% from 2021 to 2022-the largest Jump in decades.
• 2023: + 7.1 % from 2022 to 2023.
• 2024: + 1.6% from December 2023 to December 2024.
• 2025:
• +12% from January 2024 to January 2025.
• +1.7% from February 2024 to February 2025.
• - 0.9% from March 2024 to March 2025.
-1.5% from April 2024 to April 2025.
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Interpretation: Alter peaking in 2022, transportation (PI decelerated into 2024. then showed
mixed signs In early 2025, ranging from modest positive (Jan/Feb) to slight deflation
MariApr).
WI Summary Table
Period CPI Change
2021 - 2022 +15.5%
2022-2023 +7.1%
2023 - 2024 (as of De<� +1.6%
2024 - 2025 (Jan -Apr range) +3.2%to - 1.5%
Here's a clear, year -by -year snapshot of U.S. commercial insurance rate increases from 2022
through mid-2025.-
2022
• By the end of Q4 2022, commercial insurance premium growth cooled to just below +5%
year -over -year, down from near 10% during the 2020-2021 surge
2023
• Q12023 - Ql 2024. -6.3%
• Q2 2023 - Q2 2024: -6.1 %
• Q3 2023 - Q3 2024: -6.3%
• Q4 2023 - Q4 2024: � 5.6%
• Overall aggregate rate increase across 2023 hovered near +6%
2024
• Q4 2024 vs 04 2023: +5,6}/o
• Many lines showed moderation: commercial auto and umbrella lines still rar high (double
dig!ts), while property climbed more modestly:'
Early 2025
• Qi 2025 vs Qi 2024. + 5.3%
• Commercial auto and umbrella/excess still climbing in double -digits
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• Composite average around +3% according to MarketScout
• Q2 2025 vs Q2 2024: +2.8% aggregate
• Auto: +6.7%, Umbrella: +5%, Property. +3.6%. General liability: +3.7%
Summary Table
Period
Aggregate Increase
Q4 2022
+ 5.00/0
2023 (avg)
+6.0%
Q4 2024
+5.6%
Q1 2025
+5.3% (WTW); +3%
(MarketScoutcomposite)
Q2 2025 +2.8%
Highlights
Declined from 2020-21 highs
Auto & umbrella double-digit
Moderation begins
Auto & umbrella stilt high
Auto 6.7%, umbrella 50/a
Key Trends
• Peak inflation in 2020-21 gave way to a more stable -s-6% increase by late 2022.
• 2023 remained firm (-6*/o). driven by commercial auto. property. and umbrella lines.
• 2024-25 show moderating growth. with overall increases flattening to - 3-5% and some
softer segments. though auto and umbrella remain >60/o.
Bottom Line
Since 2022. U.S. commercial insurance rates have climoed significantly, peaking earlier but
stilt rising in most coverage categories. While aggregate increases are easing. key tines like
commercial auto and umbretta remain costly. often in the high -single to tow -double-digit
range annually. Businesses should continue monitoring their renewals carefully and
consider shopping the market or adjusting coverage. especially for the hardest -hit tines.
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AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT
BETWEEN
THE CITY OF MIAMI BEACH
AND
LIMOUSINES OF SOUTH FLORIDA, INC.
FOR
THE MUNICIPAL CIRCULATOR SERVICES
This Amendment No. 1 ("Amendment") to the Professional Services Agreement, dated January
21, 2026 ("Agreement'), 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. ("LSF"), a Florida corporation, having its principal place of
business at 2766 NW 62"d Street, Miami, Florida 33147 ("Contractor"), is entered into this
day of , 2026:
WHEREAS, on May 9, 2014, the City and Contractor executed an agreement for Turnkey
Trolley Operations and Maintenance Services (the "Current Agreement"); and
WHEREAS, on February 21, 2024, the Mayor and City Commission approved the
issuance of the Invitation to Negotiate (ITN) No. 2024-008-ND for Municipal Circulator Services;
and
WHEREAS, Invitation to Negotiate No. 2024-008-ND (the "ITN") was released on
February 23, 2024; and
WHEREAS, on June 26, 2024, the Mayor and City Commission adopted Resolution No.
2024-33084, accepting the recommendation of the City Manager pursuant to the ITN, authorizing
the City Administration to enter into simultaneous negotiations; and further requiring that the final
selection and negotiated agreement(s) be subject to the prior approval of the Mayor and City
Commission; and
WHEREAS, on July 16, 2025, the Finance and Economic Resiliency Committee ("FERC")
considered the essential contract terms for an agreement with Contractor and FERC
recommended executing an agreement with Contractor based upon said terms; and
WHEREAS, the City and Contractor have negotiated the following agreement pursuant
to the ITN; and
WHEREAS, on December 17, 2025, the Mayor and City Commission adopted Resolution
No. 2025-33960, approving and authorizing the City Manager to finalize and execute this
Agreement; 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.
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2. MODIFICATIONS.
The Agreement is hereby modified (deleted items strur-.lE-t q# and inserted items
underlined) as follows:
(a) Exhibit C of the Agreement, entitled "FEE SCHEDULE" is modified with the following:
A. HOURLY RATES FOR EXISTING FLEET (TRANSITION PERIOD)
Until the City places the New Fleet (all of the New Vehicles and the refurbished Used
Spare Vehicles) into operation ("Transition Period"), the Contractor shall operate the City's
Existing Fleet. During this Transition Period, the following hourly rates shall apply per
trolley vehicle of the Existing Fleet, per service hour, inclusive of all labor, drivers,
maintenance, fuel, equipment, insurance, licensing, administrative support, and all other
incidental items required for turnkey trolley operations, unless otherwise indicated below.
Monthly Service
Hours for
Combined Fleet
Between
10,777-
16,165 hrs
Between
8,757-10,776
hrs
Between
6,736-8,756
hrs
Between
4,715-6,735
hrs
Between
2,694-4,714
hrs
Hourly Rate for
High -Floor &
Modified High-
$79.74
$87.42
$94.00
$106.24
$136.80
Floor Trolley
Vehicles*
Hourly Rate for
Low -Floor Trolley
$93.01
$100.69
$107.27
$119.51
$150.08
Vehicles*
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.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 8 to be executed
by their appropriate officials, as of the date first entered above.
FOR CITY:
ATTEST:
By:
City Clerk
Date:
FOR CONTRACTOR:
ATTEST:
By:
Print Name and Title
Date:
CITY OF MIAMI BEACH, FLORIDA
City Manager
LIMOUSINES OF SOUTH FLORIDA
Print Name and Title
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