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DES MOINES FLEET MAINTENANCE/212 SOUTHEAST RACCOON STREET/DES MOINES,IOWA 50309/515-283-4959
NOBLE J. BEARDSLEY
Regional Manager
August 19, 1986
Mr. Donald D. Warden, Director
Department of Finance & Administration
Weld County
Greeley, Colorado 80632
Dear Don:
Please accept this letter as the formalization of our agreement of
August 14, 1986. On that date, the Commission approved the budget
for the third year of the contract in the amount of $1,019,850 based
on a fleet size of 401 units. This agreement is consistant with the
budget adjustment procedure specified in section 3. 10, paragraph (a)
of the contract.
It will be greatly appreciated if you will signify your agreement by
signing one of these documents and returning it for the company's
record.
Thank you for your continued confidence in our program to serve Weld
County's fleet management and maintenance needs.
Sincerely,
Noble J. Bea dsley, Regional M ger
ARA Managed gistics Systems, I c.
NJB/lh
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Concur: Adroe,
860810
MEMORAIMUM
Wilkro Board of County -.Commissioner Date e.ptswbr.r % 19%
COLORADO From Lcrajd D. words
Subject:_ARA rontrnrt Amendment
Attached is the annual contract amendment from ARA for 1987. As discussed
in the early warning budget sessions, the ARA contract shows a substantial
increase but costs for parts appear to be Justified based upon actual ccst
records from ARA. Contract includes an added "parts chaser" and 4% COLA.
The contract amount is still below the actual 1982 ccunty cost of
$1,029,425. With inflation of 28.9% over the five year period, the savings
appears to be 29.8%, or $307,078 annually, not considering fleet size
increase of over 15%.
Cost comparisons for the last three years are as fellows:
1985 1986 1987
Fleet size 351 385 401
Parts $ 301 ,000 $ 372,904 $ 500,000
Payroll 293,388 334,180 362,750
Overhead 85,000 54,036 55,100
Fee 75,000 84,028 102,000
TOTAL $ 754,388 $ 845,148 $1,019,850
Funds are budgeted to accommodate the contract amount. Recommend
authorizing Chairman tc sign attached amendment letter.
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