HomeMy WebLinkAbout20162710.tiffRESOLUTION
RE: APPROVE AGREEMENT FOR COST ADJUSTMENT TO FLEET MANAGEMENT
SERVICES AND AUTHORIZE CHAIR TO SIGN - CENTERRA INTEGRATED
SERVICES
WHEREAS, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with an Agreement for Cost Adjustment to
Fleet Management Services between the County of Weld, State of Colorado, by and through the
Board of County Commissioners of Weld County, on behalf of the Department of Finance, and
Centerra Integrated Services, commencing October 1, 2016, and ending September 30, 2017,
with further terms and conditions being as stated in said agreement, and
WHEREAS, after review, the Board deems it advisable to approve said agreement, a copy
of which is attached hereto and incorporated herein by reference.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of Weld
County, Colorado, that the Agreement for Cost Adjustment to Fleet Management Services
between the County of Weld, State of Colorado, by and through the Board of County
Commissioners of Weld County, on behalf of the Department of Finance, and Centerra Integrated
Services be and hereby is, approved.
BE IT FURTHER RESOLVED by the Board that the Chair be, and hereby is, authorized
to sign said agreement.
The above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 22nd day of August, A.D., 2016.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: j A j
Mike Freeman, Chair
Weld County Clerk to the Board
Sean P. Conway, Pro -Tern
uty Clerk to the Board
y Attorney
Date of signature: (Ali i a tro
CG=(= 2cC3G)
G-PPL
2016-2710
F10063
MEMORANDUM
TO: BOCC
DATE: August 16, 2016
FROM: Barb Connolly, Controller
SUBJECT: Centerra Contract
Centerra Group, LLC is our current contractor handling our fleet maintenance. The contractor
can request an annual increase to the contract equal to the current CPI. The Denver CPI for 2015-
2016 is 1.4%.
The current contract is for $1,775,054.31, a 1.4% increase is $24,850.76, bringing the 2016-
2017 contract to $1,799,905.07.
I recommend approval of the increase. This will be effective October 1, 2016 to September 30,
2017.
2016-2710
1� cenmEINTEGRATED rra
August 4, 2016
Barbara Connolly, Controller
Weld County Government
1150 O Street
P. O. Box 758
Greeley, Co 80631
Centerra Integrated Services, Inc.
4800 Overton Plaza, Suite 380
Fort Worth, Texas 76109
Telephone: 817.377.5800
Fax: 817.377.5897
Email: first.last@is-centerragroup.com
www.centerragroup.com
Re: Agreement for Fleet Management Services between Weld County, CO and Centerra Integrated
Services — Request for Contract Increase
Dear Ms. Connolly:
Centerra Integrated Services LLC (Centerra IS) is beginning the fifth year of the Agreement between
Weld County and Centerra IS. Pursuant to the terms of the Agreement, Centerra IS requests
Contract Increases noted below.
Exhibit A 13.0 CONTRACT TERM States:
"The duration of the contract will be from October 1, 2012, to September 30, 2017. Further, County
may exercise options, with the agreement of the contractor, to extend the contract for up to two (2)
two-year terms. Contractor may request annual price increase period at a rate not to exceed the
effective percentage change in the consumer price index (CPI) or product price index, whichever is
most appropriate for the specific contract for the previous twelve (12) months. The effective change
rate shall be based on the local index. The request for an increase must be submitted to the
controller/contract administrator no later than July 1 each year and will be effective with the next
contract period. If agreement cannot be reached, the contract will be terminated at the end of the
current contract period or within 120 days, whichever is longer. The County will accept the price
reductions at any time during the contract period."
The CPI for Denver -Boulder -Greeley, CO is 1.4% (see attached CPI Index).
Contract Price for October 1, 2015 and ending September 30, 2016 was ONE MILLION, SEVEN
HUNDRED SEVENTY FIVE, AND FIFTY FOUR DOLLARS AND THIRTY THREE CENTS
($1,775,054.33).
Centerra IS respectfully requests a 1.4% increase pursuant to the terms of our Agreement with Weld
County.
The new Contract Amount for Contract Year October 1, 2016 and ending September 30, 2017
will be (upon approval of the County) ONE MILLION, SEVEN HUNDRED NINETY NINE
THOUSAND NINE HUNDRED AND FIVE AND NINE -CENTS ($1,799,905.09).
New Non -Target Labor rates for Contract Year October 1, 2016 and ending September 30, 2017 will
be: Light duty vehicles: $58.07 and Heavy Duty Vehicles: $59.15.
Centerra IS looks forward to a long and mutually beneficial relationship with Weld County. If you
have any questions or comments, please give me a call.
Sincerely,
Toby Dickinson
Vice President
Fleet Operations
Page 1 of 1
CENTERRA GROUP,LLC
Weld County Fleet Maintenance
Cost Target Adjustment for the Period of
October 1, 2016 to September 30, 2017
Existing
2015-16Cost
Proposed
2016-17 Cost
Elements of Expense
Target
Increase
Target
Labor costs
798,934.02
11,185.08
810,119.10
Parts Costs
589,292.56
8,250.09
597,542.65
Sublet Costs
230,886.03
3,232.40
234,118.43
Admin Costs
76,069.13
1,064.97
77,134.10
Mgmt Fee
79,872.57
1,118.22
80,990.79
Total Contract
1,775,054.31
24,850.76
1,799,905.07
Denver CPI increase 2015-2016 1.4%
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