AGENDA ITEM 10-B
ACTION ITEM
TO:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
FROM:
DALE ZEHNER
DATE:
APRIL 20, 2012
RE:
AUTHORIZATION TO APPROVE THE THIRD YEAR OF THE
OPERATING AND MAINTENANCE SERVICES CONTRACT
RECOMMENDATION:
The VRE Operations Board is being asked to recommend that the Commissions
authorize the Chief Executive Officer to modify the contract with Keolis Rail
Services Virginia, LLC for operating and maintenance services by approving up to
amount will be provided via blue sheet at the Board meeting, for a total
contract value not to exceed amount will be provided via blue sheet at the
Board meeting, for the third year of operations, through June 30, 2013, and to
make other administrative contract amendments described below.
BACKGROUND:
On October 16, 2009, the VRE Operations Board approved a contract with Keolis
Rail Services Virginia for VRE operating and maintenance services and
mobilization in the amount of $18,459,348 for the first contract year, through June
30, 2011. A contract amendment was approved on December 17, 2010 to add
$2,085,000 to the contract value for a total amount not to exceed $20,544,348, to
reflect service enhancements, higher than anticipated insurance costs, items
added during negotiations, contingency funds, and to remove the requirement
that Keolis indemnify VRE for all liability claims arising from the contract service
with a value of up to $5,000,000.
On May 20, 2011, the second contract year was authorized in the amount of
$17,954,527.
Authorization is now being sought in the amount of, amount will be provided via
blue sheet at the Board meeting, for the third contract year. This amount is
within the approved budget for FY 2013 and reflects a 3.5% increase to fixed cost
services, based on the increase to the CPI for a 12 month period, as required by
the contract. No change to the level of service is proposed.
The contract is also being modified to reflect administrative changes proposed by
VRE staff, including a scope change to include maintenance of the new
warehouse at Crossroads Yard, an update to contract procedures to specify staff
level representatives, the replacement of staff names with position titles, and an
amendment to the invoice requirements for maintenance of equipment. All
changes will be reviewed and approved by VRE Counsel before execution.
FISCAL IMPACT:
Funding for the third year of the commuter rail operating and maintenance
services contract is included in the FY 2013 operating budget.
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TO:
FROM:
DATE:
RE:
CHAIRMAN COVINGTON AND THE VRE OPERATIONS BOARD
DALE ZEHNER
APRIL 20, 2012
AUTHORIZATION TO APPROVE THE THIRD YEAR OF THE
OPERATING AND MAINTENANCE SERVICES CONTRACT
RESOLUTION
10B-04-2012
OF THE
VIRGINIA RAILWAY EXPRESS
OPERATIONS BOARD
WHEREAS, on October 16, 2009, the VRE Operations Board approved a contract
with Keolis Rail Services Virginia for VRE operating and maintenance services
and mobilization in the amount of $18,459,348 for the first contract year, through
June 30, 2011; and,
WHEREAS, a contract amendment was approved on December 17, 2010 to add
$2,085,000 to the contract value to reflect service enhancements, higher than
anticipated insurance costs, items added during negotiations, contingency funds,
and to remove the requirement that Keolis indemnify VRE for all liability claims
arising from the contract service with a value of up to $5,000,000; and,
WHEREAS, on May 20, 2011, the Operations Board approved the second
contract year, through June 30, 2012, in the amount of $17,954,527 for a total
contract value not to exceed $38,498,875; and,
WHEREAS, authorization is now being sought to approve the third contract year
as well as administrative contract amendments proposed by VRE staff.
NOW, THEREFORE, BE IT RESOLVED THAT, the VRE Operations Board
recommends that the Commissions authorize the Chief Executive Officer to
modify the contract with Keolis Rail Services Virginia, LLC for operating and
maintenance services by approving up to amount will be provided via blue
sheet at the Board meeting, for a total contract value not to exceed amount will
be provided via blue sheet at the Board meeting, for the third year of
operations through June 30, 2013; and,
BE IT FURTHER RESOLVED THAT, the VRE Operations Board recommends
that the Commissions authorize the Chief Executive Officer to make the
administrative contract changes discussed in the memo and as approved by VRE
Counsel.
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