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Keith f6cots+on CP;FP <br />City of Eugene <br />Fleet & Radio Communications Supervisor <br />'541) 682- S67t5sc h <br />keith, r.nicolsen gci. eugene; or', us <br />j„ 1920 Roosevelt Blvd <br />Eugene, OR X97402 <br />United States of America <br />http://ceonline/pw/fleet/ <br />"You can't hit a home-run unless you step up to the plate. You can't catch fish unless you put aline in the water. You can't reach your goal unless <br />you actually do something:" <br />Kathy Seligman <br />From: 7OBANEK Tony G <br />Sent: Friday, October 16, 2009 7:37 AM <br />To: 'sar@bmwor.com' <br />Cc: NICOLSON Keith R <br />Subject: RE: BMW Contract <br />Mr. Russell, <br />I am writing in response to your proposed rate increase for the last-year extension of our contract for maintenance& <br />repair of the City of Eugene's inventory of Police BMW motorcycles. The City recognizes the need to adjust your labor <br />rate for inflation and the financial impacts of your hitsinPSS's operating costs changing over time. However, I am under <br />the understanding no previous cost increases that may have occurred during the course of this contract were <br />communicated to the City of Eugene. If this is nut the case and the current labor rate change is the first increase that <br />has happened since the original contract was'signed in 2005 please IPt me know. We were under the impression that <br />up until your current rate adjustment request the City of Eugene was paying $66 per hour as identified in the contract. <br />I will authorize a one year extension of our contract with your proposed labor rate of $82 per hour. At the end of this <br />last extension, beginning in September 2010, we.will be putting forth a new contract, as required by state purchasing <br />law, for a competitive bid issuance to all qualified motorcycle repair facilities -which will cover the remaining life cycle of <br />our current motorcycle inventory.. City of Eugene Fleet Services is obligated to execute the most operationally efficient <br />and cost effective maintenance service we can provide to our departments and must take into account all options for <br />maintenance for our mission critical vehicle fleet. <br />To address your threshold value question, during the one year contract extension, I propose we continue to include a <br />maximum of $14,190 for unscheduled maintenance repairs. As is our current protocol,. before your company performs <br />any maintenance repairs on the City's Motorcycles, Fleet Services will be.notified for all work which exceeds $25.00. If <br />the maximum threshold is met in the next year we will determine our maintenance options for these crucial City <br />vehicles. Pre-authorization for all additional repair costs from that point forward will be required from the Fleet Services <br />Operations Supervisor prior to the work being performed. <br />I look forward to continuing our contractual relationship over the course of the next 11 months. Please work with Keith <br />Nicolson to finalize the contract extension for the coming year, if you have any additional questions for me please let <br />me know. <br />2 <br />