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Item O6 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: March 19, 2014 Division: Monroe County Clerk Bulk Item: Yes No X Department: Internal Audit Staff Contact/Phone#: 3641 AGENDA ITEM WORDING: Clerk's analysis of payment to Pumpout USA, Inc. pursuant to Amendment 2 to the Agreement for Keys-Wide Mobile Vessel Pumpout Service between Monroe County and Pumpout USA, Inc. ITEM BACKGROUND: PREVIOUS RELEVANT BOCC ACTION: CONTRACT/AGREEMENT CHANGES: STAFF RECOMMENDATIONS: TOTALZOST: N/A INDIRECT COST: BUDGETED: Yes No DIFFERENTIAL OF LOCAL PREFERENCE: COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year APPROVED BY: County Atty OMB/Purchasing Risk Management DIVISION DIRECTOR APPROVAL: %/itx_'�'�-'/'r'✓ l'CX"� I , iP/,i'4 Pamela Sellers, IA Director DOCUMENTATION: Included Not Required DISPOSITION: AGENDA ITEM# Revised 7/09 Clerk's Analysis of Payments to Pumpout USA, Inc. pursuant to Amendment 2 to the Agreement for Keys-Wide Mobile Vessel Pumpout Service between Monroe County and Pumpout USA, Inc. On December 12, 2012, the Monroe County Board of County Commissioners approved a two year agreement with Pumpout USA, Inc. for Keys-Wide Mobile Vessel Pumpout Services commencing January 1, 2013. Payment terms of the agreement are based on 1300 pump outs per month at a unit price of$21.81 per pump out. Two amendments were made to this agreement. The first amendment to this agreement was approved by the Monroe County Board of County Commissioners March 20, 2013. This amendment provided for deletion of Section XII. Donations and Grants, and inclusion of Attachment H-Contract Provisions and Attachment I- Contract Regulations to conform with requirements of the Florida Department of Environmental Protection (DEP). The second amendment to this agreement was approved by the Monroe County Board of County Commissioners on July 17, 2013. This amendment provides for continued quarterly payments, but deletes the required monthly pump out quota of 1,300 pump outs and the associated per unit pump out price of$21.81. The amendment also provides for a slip for the Contractor's pump out boat at the Murray Nelson Government Center in Key Largo, and provides for evaluation of the Contractor's performance in January 2014. The amount paid under the contract amendment for calendar year 2013 was $340,200.85. The total pump outs for calendar year 2013 was 8,419. Therefore the actual price per pump out paid to the Contractor by Monroe County, amounts to $40.41 per pump out. This represents a unit cost of 85% more than the original agreement unit price. The total pump outs performed in 2013, (8,419) amounts to approximately 54% of the number of pump outs (15,600) required by the original agreement prior to the amendments. If Monroe County would have paid the Contractor based on the original agreement at a unit price of $21.81 per pump out, Monroe County would have paid the Contractor $183,618.39 for pump outs performed. According to the terms of the original agreement Monroe County paid an additional$156,582.46 for pump outs not performed. The existing contract amount for calendar year 2014 is $329,223.35. If the 2014 total annual pump outs are similar to the 2013 total pump outs and the 2014 contract amount is paid in the same manner as 2013, the actual unit price per pump out paid will be approximately $38.73. This represents a unit cost of 78%more than the original agreement unit price. Submitted by: Pamela Limbert Sellers,CFE Director of Internal Audit Clerk of the Circuit Court and Comptroller Analysis of 2013 Pumpout Service from Pumpout USA, Inc. Quarterly Payment that would have been due according to oreinal Agreement using unit Number of Quarterly Payment price of$21.81 per Pumpouts based on Contract pumpout using actual Service Month Performed Amendment 2 pumpouts performed Difference January 2013 0 February 2013 94 March 2013 204 2013 First Quarter Total 298 $98,267.11 $6,499.38 $91,767.73 April 2013 467 May 2013 746 June 2013 776 2013 Second Quarter Total 1989 $80,644.58 $43,380.09 $37,264.49 July 2013 697 August2013 807 September 2013 961 2013 Third Quarter Total 2465 $80,644.58 $53,761.65 $26,882.93 October 2013 1232 November 2013 1 106 December 2013 1329 2013 Fourth Quarter Total 3667 $80,644.58 $79,977.27 $667.31 2013 Annual Total 8419 $340,200.85 $183,618.39 $156,582.46