11-05-2007 VAIL RESORTS INC SERVICE AGREEMENTMemo
To: Honorable Mayor and Town Council
Thru: Larry Brooks, Town Manager
From: Dan Higgins
Date: November 5, 2007
Re: Service Agreement with Vail Resorts Inc. (D.A.R.)
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 2007/2008 between the
Town and Vail Resorts Inc. for vehicle maintenance.
Financial Implications: The agreement contains our standard price of
$95.00/hour ($100.00/hour for 2008) for routine and preventive maintenance as well as repair
and replacement. We have billed V.R.I. (D.A.R) 3,521 hours of labor ($325,624.00) in
2006/2007.
Recommendation: Staff recommends approval of the one-year service agreement
with Vail Resorts Inc.
Town Manager Comments:
SERVICE AGREEMENT
This agreement is made and entered into this day of 2007 by and between Vail Associates Inc., a
Colorado corporation whose address is P.O. Box 7, Vail Colorado, 81658 (hereafter know as 'VAI'N and the Town of .4
whose address is P 0. Box 975, 500 Swift Gulch Road, Avon, Colorado, 81620 (hereafter designated as "Contractor)
RECITAL
In consideration of the obligation of VAI 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. Beaver Creek
Resort Company buses, which are operated by VAI. Service will. be performed on approximately 59
buses or other vehicles, although the number of vehicles and equipment serviced may be increased
or decreased in VAI16 sole discretion; provided, the combined number of vehicles and equipment
shall not exceed 75 without the approval of Contractor. RdUtine Maintenance will be performed at
least every 3,000 miles or 250 hours of use. Routine Mairrtenance shall consist of those services
outlined in Exhibit A attached hereto.
(b) Repair and replacement work as requested by VAI Repair and Replacement'). No payment for OR
Repair and Replacement shall be due uniets VAI has approved of such charges. Services may be
commenced with verbal approval by VAI 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... VAI acknowledges that subcontraclors`wiliperform
certain repair wont.- Contractor shall be responsible for assuring that all such subcontracted Work wit
be performed promptly and in accordance with the terms and conditions of this Agreement.
(collectively the "Services")
2 Facilities: Contractor represents tl)ot its facilities are in good repair and adequately equipped and
that k has a sufficient. staff to perfoT all work in a timely manner, Aii Routine Maintenance shalt 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, VAI wil
pay Contractor the shop rato of $95.0b per hour for Routine Maintenance and Repair and
Replacement.. Effective January 1,'2008 the shop rate will be $100:00 per hour. Materials and subte
work shall be charged at.cost plus ten percent invoice shall be issued by the. Ie of each month for
services performed the previous month. Payment shall be remitted within ten (10) days of receipt of
invoige. Contractor's Fueling Facilities may tie used by VAI The cost of Unleaded Gasolene and.
Dies'e.! Fuel will be at the Contractor's cost plus ten percent. Contractor's vehicle washing facilities
may be used by VAI Contact TOA for, current wash rates.
4 Terms and Term nation: This Agreement will be effective as of October 1, 2007 and will terminate
on Septembet.30, 2008 finless 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.
5 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 VAI to its employees.
Contractor shall provide VAI an original of its Form W-9 (Request for Taxpayer Identification Number
of Certification).
6 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. Contraclors sole liability hereunder, whether in tort or in contract,
expressly limited to the warranty provided for herein
7 Assignment Contractor's duties hereunder requires particular expertise and skills, and may not t
assigned to any third party without the expressed written consent of VAI, and any attempt to do so
shall tender this Agreement null and void and no effect as respects the assignee (s) and shall
constitute an event of default by Contractor
8 Waiver: Failure to insist upon strict compliance with any forms, covenants, and/ or conditions here
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
9 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.
10. Situs and Severability: The laws.of the State of Cotomdo.shall govern the interpretation, validity,
performance and enforcement of this Agreement., if any provision of this Agreement shall be held tl
be invalid or unenforceable, the validity and enforceability of the remaining provisions of this
Agreement shaft not be affected thereby
11 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-
EXECUTED this -day of_ _ 2007
Approved as to
Vail tes Inc: Vail ltq t
A Coto do rpo on 6y:
By: Andre . Hensler
Date: 6
ay of,~ - 0 7. N OFq~,
L21
A L:
V
WORK
"A" PM
Preventive Maintenance
Inspection
"Annual"
Preventive Maintenance
Inspection
EXHIBIT A
FREQUENCY
3,000 miles or
250 hours
every 12months
RATE
$95.00 hr.
$100.00 hr after 1/1/08
Plus parts &
sublet
$95.00 hr.
$100.00 hr. after 1/1/08
Plus parts &
sublet
NOTE: Included as a part of Exhibit A is the vehicle listing applicable to this agreement as of
September 1, 2007.
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