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HomeMy WebLinkAboutFYI 1. BCR Price Escalation Letter 2023 BCR I Solid Solutions July 25, 2023 Mr.Jeremy Johnston 3176 Old Jennings Road Middleburg, FL 32068-3907 Dear Mr. Jeremy Johnston, BCR values our longstanding relationship with the Clay County Utility Authority. Over the last 13 years, we have done our best to provide consistent and high-quality service with regard to the Service Agreement we signed with Clay County related to our Neutralizer® System. As you know, that Agreement has a clause regarding annual escalation —to allow us to increase our fee slightly so that we can cover our increasing costs. Attached is an updated copy of the June 2023 CPI that is used to compute the annual escalation under our service contract for the month of October 2023.The escalation calculations are applied based on Exhibit A attached. Under our Service Agreement, the base fee, which is calculated based on 1,000 gallons wasted, is to be adjusted by the annual change in the Consumer Price Index(CPI). The escalated fees will now be: Base Fee $97.89 per 1,000 gallons wasted; Labor Rates Per Hour,Technician or IT$80.04, Professional Engineer$153.92. Monthly billing will reflect these amounts beginning October 1, 2023 We continue to strive to provide the Clay County Utility Authority with the highest level of service. Please review the attached information and calculation. If you have any questions regarding the above changes, please do not hesitate to reach out to me. Sincerely, Tod ambers Managing Director, Customer Delivery Cc: Josh Scott, President& CEO 100 N Laura St.,Suite 601,Jacksonville,FL 32202 904.819.9170 I bcrinc.com BCR Solid Solutions 2023 Annual Escalation Calculations 1)2022 Base Fees Monthly Minimum Base Service Fee per 1000 gallons of WAS $ 94.76 a) Adjustment Calculation Consumer Price Index(CPI-U)for All Urban Consumers(June-23) 3.30% b) New Base Fee$/Month $ 97.89 3)2022 Labor Rate-Current$/Hr Technician or IT $ 77.48 Professional Engineer $ 149.00 a) Adjustment Calculation Consumer Price Index(CPI-U)for All Urban Consumers(June-23) 3.30% b) New$/Hr Technician or IT $ 80.04 Professional Engineer $ 153.92 AM 100 N Laura St., Suite 601, Jacksonville, FL 32202 904.819.9170 I bcrinc.com U.S. BUREAU OF LABOR STATISTICS Bureau of Labor Statistics > Geographic Information > Southeast > News Release Southeast Information Office Search Southeast Regio Southeast Home Southeast Geography Southeast Subjects Southeast Archives Contact Southeast Consumer Price Index, South Region - June 2023 News Release Information Prices in the South up 0.3 percent in June and 3.3 percent over the past year 23-1556-ATL The Consumer Price Index for All Urban Consumers (CPI-U) for the South rose 0.3 percent in June, the U.S. Bureau of Labor Wednesday,July 12, 2023 Statistics reported today. The index for all items less food and energy also increased 0.3 percent over the month. The energy index increased 1.5 percent in June, while the food index was unchanged. (Data in this report are not seasonally adjusted. Contacts Accordingly, month-to-month changes may reflect the impact of seasonal influences.) Technical information: (404)893-4222 The all items CPI-U for the South increased 3.3 percent for the 12 months ending in June after increasing 4.4 percent for the 12- BLSInfoAtlanta@bls.gov month period ending in May. (See chart 1 and table A.) The index for all items less and food and energy advanced 5.5 percent www.bls.gov/regions/southeast over the past 12 months. The food index continued to increase, up 6.0 percent over the past year. In contrast, the energy index Media contact: fell 17.6 percent over the last 12 months. (See table 1.) (404)893-4220 Chart 1. Over-the-year percent change in CPI-U, South region, June 2020-June Related Links 2023 CPI Charts All items Percent change All items less food and energy 11.0 10.0 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun 2020 2021 2022 2023 Source: U.S.Bureau of Labor Statistics. View Chart Data Food The food index was unchanged in June. The food at home index edged down 0.3 percent in June, as 5 of the 6 major grocery store food group indexes declined over the month. In contrast, the food away from home index rose 0.5 percent in June. The food index advanced 6.0 percent for the 12 months ending in June, led by a 5.0-percent increase in the food at home index as all six major grocery store food group indexes increased over the year. The food away from home index also continued to increase over the past year, up 7.9 percent. Energy The energy index increased 1.5 percent in June, led by a 3.8-percent increase in the electricity index. The gasoline index was little changed over the month, up 0.1 percent, while the natural gas index declined 0.7 percent. The energy index fell 17.6 percent for 12 months ending in June, largely due to a 29.1-percent fall in the gasoline index. The index for natural gas also declined over the past year(-14.2 percent). The index for electricity increased 4.8 percent over the last 12 months. All items less food and energy The index for all items less food and energy rose 0.3 percent in June, primarily due to a 0.4-percent increase in the shelter index. Within shelter, owners'equivalent rent rose 0.5 percent over the month and rent of primary residence rose 0.4 percent. The index for used cars and trucks was also among the notable components to increase in June, up 1.2 percent. The index for all times less food and energy advanced 5.5 percent for the 12 months ending in June, after increasing 6.0 percent for the 12-month period ending in May. The increase was largely contributed to shelter(+9.4 percent). The index for owners'equivalent increased 9.6 percent over the past year and rent of primary residence advanced 10.4 percent. In contrast, the index for used cars and trucks declined 5.4 percent over the past 12 months. Geographic divisions Additional price index are now available for the three divisions of the South. In June, the all items index rose 0.4 percent in the East South Central division and 0.3 percent each for the South Atlantic and West South Central divisions. Over the year, the all items index increased 3.8 percent in the South Atlantic division, 3.3 percent in the East South Central division, and 2.2 percent in the West South Central division. Table A. South region CPI-U 1-month and 12-month percent changes, all items index, not seasonally adjusted 2019 T 2020 2021 2022 2023 Month 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month January 0.2 1.2 0.3 2.3 0.5 1.6 0.9 7.8 0.8 6.9 February 0.5 1.1 0.2 1.9 0.5 2.0 1.1 8.4 0.6 6.4 2019 2020 2021 2022 2023 Month 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month 1-month 12-month March 0.7 1.6 -0.1 1.1 0.8 2.9 1.4 9.1 0.4 5.3 April 0.5 1.8 -0.8 -0.2 0.7 4.4 0.5 8.8 0.7 5.5 May -0.1 1.4 -0.2 -0.4 0.8 5.6 1.2 9.2 0.2 4.4 June -0.1 1.1 0.6 0.3 0.9 5.8 1.5 9.8 0.3 3.3 July 0.3 1.4 0.6 0.6 0.5 5.8 0.1 9.4 August -0.1 1.4 0.4 1.1 0.3 5.6 -0.2 8.9 September 0.0 1.3 0.2 1.3 0.3 5.8 0.2 8.7 October 0.2 1.3 0.1 1.3 1.0 6.6 0.4 8.1 November 0.0 1.6 -0.1 1.2 0.4 7.2 0.1 7.7 December 0.0 2.1 0.2 1.4 0.3 7.4 -0.3 7.0 The Consumer Price Index for July 2023 is scheduled to be released on Thursday,August 10, 2023, at 8:30 a.m. (ET). Technical Note The Consumer Price Index for the South region is published monthly. The Consumer Price Index (CPI) is a measure of the average change in prices over time in a fixed market basket of goods and services. The Bureau of Labor Statistics publishes CPIs for two population groups: (1) a CPI for All Urban Consumers (CPI-U) which covers approximately 93 percent of the total U.S. population and (2) a CPI for Urban Wage Earners and Clerical Workers (CPI-W) which covers approximately 29 percent of the total U.S. population. The CPI-U includes, in addition to wage earners and clerical workers, groups such as professional, managerial, and technical workers, the self-employed, short-term workers, the unemployed, and retirees and others not in the labor force. The CPI is based on prices of food, clothing, shelter, fuels, transportation fares, charges for doctors' and dentists' services, drugs, and the other goods and services that people buy for day-to-day living. Each month, prices are collected in 75 urban areas across the country from about 6,000 housing units and approximately 22,000 retail establishments -department stores, supermarkets, hospitals, filling stations, and other types of stores and service establishments. All taxes directly associated with the purchase and use of items are included in the index. The index measures price changes from a designated reference date; for most of the CPI-U the reference base is 1982-84 equals 100. An increase of 7 percent from the reference base, for example, is shown as 107.000. Alternatively, that relationship can also be expressed as the price of a base period market basket of goods and services rising from $100 to $107. For further details see the CPI home page on the internet at www.bls.gov/cpi and the CPI section of the BLS Handbook of Methods available on the internet at www.bls.gov/opub/hom/cpJ. In calculating the index, price changes for the various items in each location are averaged together with weights that represent their importance in the spending of the appropriate population group. Local data are then combined to obtain a U.S. city average. Because the sample size of a local area is smaller, the local area index is subject to substantially more sampling and other measurement error than the national index. In addition, local indexes are not adjusted for seasonal influences. As a result, local area indexes show greater volatility than the national index, although their long-term trends are quite similar. NOTE: Area indexes do not measure differences in the level of prices between cities; they only measure the average change in prices for each area since the base period. The South region is comprised of Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia. Information in this release will be made available to individuals with sensory impairments upon request. Voice phone: (202) 691-5200; Telecommunications Relay Service: 7-1-1. Table 1. Consumer Price Index for All Urban Consumers (CPI-U): Indexes and percent changes for selected periods South (1982-84=100 unless otherwise noted) Indexes Percent change from- L Item and Group Apr. May Jun. Jun. Apr. May 2023 2023 2023 2022 2023 2023 Expenditure category All Items 295.315 295.889 296.789 3.3 0.5 0.3 All items (December 1977=100) 479.042 479.973 481.434 - - - Food and beverages 314.609 314.975 314.879 5.9 0.1 0.0 Food 318.372 318.714 318.627 6.0 0.1 0.0 Food at home 300.837 300.736 299.741 5.0 -0.4 -0.3 Cereal and bakery products 362.107 363.129 361.630 7.6 -0.1 -0.4 Meats, poultry,fish, and eggs 313.906 310.432 309.959 1.0 -1.3 -0.2 Dairy and related products 271.962 270.749 269.988 3.0 -0.7 -0.3 Fruits and vegetables 325.434 328.368 330.672 2.9 1.6 0.7 Nonalcoholic beverages and beverage materials 214.712 216.002 213.753 8.5 -0.4 -1.0 Footnotes (1) Indexes on a December 1982=100 base. (2) Indexes on a December 1997=100 base. (3) Special index based on a substantially smaller sample. (4) Indexes on a December 1993=100 base. (5) Indexes on a December 1977=100 base. - Data not available. Regions defined as the four Census regions. South includes Alabama,Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, and West Virginia.