02-23-2007 BEAVER CREEK METROPOLITAN DISTRICT SERVICE AGREEMENT FOR VEHICLE MAINTENANCEMemo
To: Honorable Mayor and Town Council
Thru: Larry Brooks, Town Manager
From: Dan Higgins
Date: February 23, 2007
Re: Service Agreement with Beaver Creek Metro District
Background: The Town of Avon operates fleet maintenance out of its Swift Gulch
facility located at 500 Swift Gulch Road. We have several annual maintenance contracts with
neighboring districts.
One of our goals is to secure more third party revenue to help reduce the subsidy of our
operation.
Discussion: Attached is a one-year service agreement for 2007 between the Town and
Beaver Creek Metro District for vehicle maintenance.
Financial Implications: The agreement contains our standard price of
$90.Whour for routine and preventive maintenance as well as repair and replacement. We
billed BCMD 709 hours of labor ($63,797.00) in 2006.
Recommendation: Staff recon-imends approval of the one-year service agreement
with Beaver Creek Metro District. It is considered an Intergovermnental Agreement and
according to our Town Charter, 16.2, it must be approved by a 2/3 vote of the Town Council.
Town Manager Comments:
BEAVER
CREEK
METROPOLITAN
DISTRICT
P.O. Box 2560
Edwards, Colorado
81632
February 21, 2007
Town of Avon
Fleet Maintenance
PO Box 1726
Avon, CO 81620
Re: 2007 Service Agreement between Beaver Creek Metropolitan District and TOA
Enclosed are two original copies of the above referenced agreement which have been
executed by Beaver Creek Metropolitan District.
After execution and approval by the Town of Avon, please provide one original copy of
the agreement to:
Beaver Creek Metropolitan District
PO Box 2560
Edwards, CO 81632
If you need anything further please contact Mr. Clyde Hanks, (970) 748-9174 or myself
at (970) 926-6060, Ext. 3.
Thank you for your prompt attention to this matter.
Sincerely, _
Kathy Lewensten
Account Manager
Eric
Phone: (970) 926-9666 * Fax (970) 926-6040
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SERVICE AGREEMENT
This agreement is made and entered into this ay of 1lJeC 2006 by and between Beaver Creek Metropolitan
District whose address is P.O. Box 2560, Edwards Colorado, 81632 (hereafter know as "BCMD") and the Town of Avon
whose address is P.O. Box 1726, 500 Swift Gulch Road, Avon, Colorado, 81620 (hereafter designated as "Contractor').
RECITAL
In consideration of the obligation of BCMD to pay the Contractor as herein provided and in consideration of the other
terms and conditions hereof, the parties agree as follows:
Contractor Services: Contractor will, during the term of this Agreement, provide:
(a) Routine maintenance and preventive maintenance ("Routine Maintenance") of the BCMD vehicles
and equipment. Service will be performed on approximately 31 vehicles and equipment, although
the number of vehicles and equipment serviced may be increased or decreased in BCMD's sole
discretion; provided, the combined number of vehicles and equipment shall not exceed 75 without the
approval of Contractor. Routine Maintenance will be performed at least every 3,000 miles or 250
hours of use. Routine Maintenance shall consist of those services outlined in Exhibit A attached
hereto.
0 (b) Repair and replacement work as requested by BCMD ("Repair and Replacement"). No payment for
any Repair and Replacement shall be due unless BCMD has approved of such charges. Services
may be commenced with verbal approval by BCMD of a written estimate submitted by Contractor.
Repair and Replacement includes, without limitation, transmissions repairs, engine repairs, rear end
repairs and any other work or repairs exceeding $2,000.00. BCMD acknowledges that
subcontractors will perform certain repair work. Contractor shall be responsible for assuring that all
such subcontracted work will be performed promptly and in accordance with the terms and conditions
of this Agreement.
(collectively the "Services")
2. Facilities: Contractor represents that its facilities are in good repair and adequately equipped and
that it has a sufficient staff to perform all work in a timely manner. All Routine Maintenance shall be
completed within 24 hours of any vehicle being brought to Contractor's facility.
3. Compensation: In consideration of Contractor's services during the term of this Agreement, BCMD
will pay Contractor the shop rate of $95.00 per hour for Routine Maintenance and Repair and
Replacement. Materials and sublet work shall be charged at cost plus ten percent. Invoice shall be
issued by the 10`" of each month for services performed the previous month. Payment shall be
remitted within ten (10) days of receipt of invoice. Contractor's Fueling Facilities may be used by
BCMD. The cost of Unleaded Gasoline and Diesel Fuel will be at the Contractor's cost plus ten
percent. Contractor's vehicle washing facility may be used by BCMD. Contact TOA for current wash
rates.
4. Office Space and Utilities: It is anticipated that BCMD will place a small trailer at the Swift Gulch
site to be used as office space. The trailer must not occupy a paved space or rental rates will be
applicable. All costs for utilities and meters associated with the trailer must be incurred by BCMD.
Final location of the trailer must be approved by contractor. Placement and removal of the trailer will
be the entire responsibility of BCMD.
5. Terms and Termination: This Agreement will be effective as of January 1, 2007 and will terminate
on December 31, 2007 unless either party fails to substantially perform the duties and obligations in
accordance herewith. In such an event, the other party may terminate this Agreement upon seven
(7) days written notice to that party, unless that party cures the breach within the seven (7) day
remedy period. Either party may terminate this Agreement without cause upon 30 Days written
notice.
IV.
Relationships and Taxes: The relationship between the parties is that of independent contracting
parties, and nothing herein shall be deemed or construed by the parties hereto or by any third party
as creating a relationship of principal and agent or partnership, or of a joint venture between the
parties. Contractor shall be solely responsible for any tax, withholding or contribution levied by the
Federal Social Security Act. Contractor is not entitled to unemployment compensation or other
employment related benefits, which are otherwise made available by BCMD to its employees.
Contractor shall provide BCMD an original of its Form W-9 (Request for Taxpayer Identification
Number of Certification).
7. Warranty: Contractor shall perform all Services in a prompt, efficient and workmanlike manner.
Contractor shall promptly correct any defective work. This warranty shall be in lieu of all other
warranties, express or implied. Contractor's sole liability hereunder, whether in tort or in contract, is
expressly limited to the warranty provided for herein.
8. Assignment: Contractor's duties hereunder requires particular expertise and skills, and may not be
assigned to any third party without the expressed written consent of BCMD, and any attempt to do so
shall render this Agreement null and void and no effect as respects the assignee (s) and shall
constitute an event of default by Contractor.
9. Waiver: Failure to insist upon strict compliance with any terms, covenants, and/ or conditions hereof
shall not be deemed a waiver of such term, covenant, or condition, nor shall any waiver or
relinquishment of any right or power hereunder at any time or more times be deemed a waiver or
relinquishment of such right or power at any other time or times.
10. Benefit: The terms, provisions, and covenants contained in this Agreement shall apply to, inure to
the benefit of and be binding upon the parties hereto and their respective heirs, successors in
interest, and legal representatives except as otherwise herein expressly provided.
11. Situs and Severability: The laws of the State of Colorado shall govern the interpretation, validity,
performance and enforcement of this Agreement. If any provision of this Agreement shall be held to
be invalid or unenforceable, the validity and enforceability of the remaining provisions of this
Agreement shall not be affected thereby.
12. Modification: This Agreement contains the entire agreement between the parties, and no
agreement shall be effective to change, modify, or terminate in whole or in part unless such
agreement is in writing and duly signed by the party against whom enforcement of such change,
modification, or termination is sought.
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EXECUTED this "day of r '40e@-
Beaver Creek tropolita D' trict
By:
J ; • . TY~~ 1 i.f .
EXEC ED this day of CK ,
'rj
TO N ~ ' ~ Y, '
W C'
EXHIBIT A
WPRK _ FRggt y- CY - - RATE
"A" PM 3,000 miles or $95.00 hr.
Preventive Maintenance 250 hours Plus parts &
Inspection sublet
"Annual" every 12months $95.00 hr.
Preventive Maintenance Plus parts &
Inspection sublet
NOTE: Included as,#part of Exhibit A is the vehicle listing applicable to this agreement as of
December 31, 2006.
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