HomeMy WebLinkAboutVeolia CPI Contract Year 10.01.24-09.30.24() VEOIIA
May 30, 2024
Mr. Philip Hursh, PE
Interim City Manager, Winter Springs
1126 East SR 434
Winter Springs, Florida 32708
Re: Annual Fee Adjustment for the Period October 1, 2024 through September 30, 2025
Mr. Hursh:
The current Annual Fee value is S3,872,826.23, which is the sum of the Fixed Fee value of
S3,592,090.16 and the Maintenance and Repair Limit value of $280,736.07. Veolia is
requesting City approval of an adjusted Annual Fee value of $4,027,739.28 for the period
October 1, 2024 through September 30, 2025. This is comprised of a 4% increase on the
Fixed Fee component of the Annual Fee, resulting in an adjusted value of $3,735,773.77 and
a 4% increase on the Maintenance and Repair Limit component of the Annual Fee, resulting
in an adjusted value of $291,965.51. Section 8,5 of the Agreement for Utilities Operations,
Maintenance and Management Services provides instructions for adjusting the Annual Fee.
The CPI increase from August 2022 to August 2023 is 3.665%. Vcolia is requesting a 4.0%
CPI adjustment to help mitigate cost impacts experienced in recent years. For reference, the
CPI specified in Appendix E of the Agreement was 8.3% in August 2022. Veolia only
requested a 4% CPI adjustment for Fiscal Year 2023 per your request. These high inflation
rates have a material effect on our cost of doing business and we greatly appreciate your
consideration of our proposed adjustment.
Consumer Price Index, Bureau of Labor Statistics: 1982-84 = 100, unless otherwise noted
Consumer Price Index for All Urban Consumers
Index in August 2022 = 296.171
Index in August 2023 = 307.026
307.026 / 296.171 = 1.03665 or 3.665% increase. Requesting a 4% increase.
Q VEOLIA
Please sign below to indicate approval of the proposed adjustment and return the signed
document to me at your convenience. If additional information is desired, we xvill gladly
respond as soon as possible.
Sincerely,
John Kennedy, Project Manager
NY. Philip Ilursh, PE
Interim City Manager
Cc, Wynn Morgan, VP Operations, Veolia
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