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Home My WebLink About2010-10-13 10-346 ORDERCOUNCIL ACTION Item No. 10 :14 6 Date: October 13, 2010 Item/Subject: ORDER, Authorizing the Interim City Manager to Execute an Agreement with the Town of Veazie to Provide Fleet Maintenance Services Responsible Department: Executive/Fleet Maintenance Commentary: Over the past several months, the communities of Veazie, Orono and Bangor have been discussing opportunities for municipal collaboration. Recently, Veazie approached Bangor about the possibility of obtaining Fleet Maintenance Services for approximately 6-8 Public Works and Police vehicles. The parties have met and have discussed the services requested and the terms and conditions that will apply. Both communities benefit from this arrangement, and this cooperative approach to providing municipal services may lead to future endeavors between and among the communities involved. A draft copy of the proposed Agreement is attached. The Government Operations Committee has reviewed and recommends approval. Department Head Manager's Comments: Approval is recommended. Interim City Manager Associated Information: Order, Background Memorandum, Draft Agreement for Services Budget Approval: / Finance Director Legal Approval: CiN Solicitor Introduced for X Passage First Reading Page _ of Referral Assigned to Councilor - Bronson CITY OF BANGOR 10 346 October 13, 2010 (TITLE.) ORDER, Authorizing the Interim City Manager to Execute an Agreement with the Town of Veazie to Provide Fleet Maintenance Services By the City Council of the City of Bangor. ORDERED, THAT Whereas, the City of Bangor has been exploring opportunities for collaborating with the Towns of Orono and Veazie; and Whereas, Veazie has requested that Bangor provide Fleet Maintenance Services for its municipal fleet of vehicles; and Whereas, the parties have reached an Agreement outlining the terms and conditions regarding providing the requested services; Now, Therefore, Be it Ordered That: the Interim City Manager is authorized to execute an Agreement between the City of Bangor and Town of Veazie whereby Bangor will provide certain Fleet Maintenance Services to the Town of Veazie; and Be It Further Ordered, That: the Agreement will be in substantially the same form as the Draft attached hereto, and in a final form approved by the City Solicitor or Assistant City Solicitor. IN CITY COUNCIL October 13, 2010 Motion Made and Seconded for Passage Passed (TITLE,) Authorizing the Interim City Manager to Execute an Agreement with the r Town of Veazie to Provide.Fleet Maintenance ------------- Services Aulped-to Coaaeilor 7 MEMO To: Government Operations Committee From: Robert Dawes, Equipment Director Subject: Tentative Agreement to Perform Outside Work Date: September 22, 2010 During the month of September, the Town of Veazie approached Interim City Manager, Bob Farrar and I about the possibility of obtaining the services from the Fleet Maintenance Division to perform maintenance on Veazie's vehicles. This opportunity grew out of on-going discussions among the communities of Bangor, Orono, and, Veazie seeking ways to cooperate. During Veazie's most recent budget adoption process, a decision was made to reduce a vehicle mechanic position. Unfortunately, they have not found a maintenance facility in the area that can serve their needs without transporting the vehicles a significant distance. And, area dealers are typically charging between $85.00 and $105.00 per hour and are not open for 24 hour service during snowplowing overnight hours. Mr. Farrar and I see this as both a function where a regionalization relationship could work very well and it would give the Fleet Maintenance Division the opportunity to generate some outside revenue. Finance Director Debbie Cyr and I have come up with an hourly rate that would be both beneficial for the Town of Veazie and would allow us to use this work to comingle with the types of work we already perform. In addition to this, I recommend the City purchase a separate `Garage Keepers Liability" insurance policy. It would protect the City from any liability regarding damages that might happen as a result of our technicians performing maintenance on their vehicles. In my opinion this arrangement would be a "win - win" situation whereby both Bangor and Veazie can benefit from a cooperative standpoint, and where we can best utilize our resources during these challenging economic times. Thank you for entertaining this forward thinking approach, and I will make myself available at the meeting to answer any questions or elaborate in any areas you may think necessary. `E ir? X 4 6 Agreement for Services Agreement made this day of October, 2010 by and between the City of Bangor (hereinafter "Bangor"), a municipal corporation located in Bangor, County of Penobscot, State of Maine, and the Town of Veazie (hereinafter "Veazie"), a municipal corporation located in Veazie, County of Penobscot, State of Maine WHEREAS, the City of Bangor has a Fleet Maintenance Division capable of providing maintenance and repair for motor vehicles; and WHEREAS, the Town of Veazie has several motor vehicles that require periodic maintenance and repair and currently does not have the capability of doing such maintenance and repairs; and WHEREAS, it is in the interest of both parties that the City of Bangor provide the maintenance and repairs for the Town of Veazie under certain terms and conditions. NOW, THEREFORE, IN CONSIDERATION of the mutual promises and covenants contained in this Agreement, the City of Bangor and the Town of Veazie agree as follows: 1. Services to be Provided by the City of Bangor The City of Bangor will provide vehicular maintenance and repair services for the Town of Veazie. The City of Bangor will perform an initial inspection of each vehicle owned by Veazie, if requested, to determine if said vehicles are in a safe condition and in compliance with all State motor vehicle rules and regulations. Any list of defects identified will be agreed upon by both parties. In the event that more than one vehicle of the Town of Veazie is in need of repair or maintenance at the same time, a representative from the Town of Veazie will prioritize which is to be repaired or maintained first, and shall notify the Bangor Fleet Maintenance Division. 2. Fees From the date of this agreement until June 30, 2011 the City of Bangor will charge the Town of Veazie an hourly rate of $37.50 per hour, unless the Overtime rate is applicable, which will be one and one-half (1 1/2) times the hourly rate. These rates will be renegotiated by the parties by June 30th of each year for subsequent years of this agreement. 22 r) 4 6 In the event that any vehicle of the Town of Veazie needs parts, the City of Bangor shall bill said parts to the Town of Veazie at the City of Bangor's cost plus a 15% markup to cover acquisition and inventory costs. 3. Billing The City of Bangor will bill the Town of Veazie monthly for all work done in the previous month and will provide to the Town of Veazie appropriate documentation to substantiate each monthly bill. The Town of Veazie shall pay each bill within thirty (30) days of receipt. 4. Insurance The City of Bangor will provide a Garage Keeper's Liability Policy to insure both the City of Bangor and the Town of Veazie. This policy limits shall be $400,000.00 for each incident. 5. Miscellaneous Transportation of Town of Veazie vehicles to and from the City of Bangor Fleet Maintenance Division shall be the responsibility of the Town of Veazie. 6. Termination Either party may terminate this agreement upon thirty (30) days written notice to the other. Witness Witness CITY OF BANGOR Name: Title: TOWN OF VEAZIE Name: Title: