Title
Resolution - Approval of Penske Fleet Maintenance Contract Extension - R Arellano
Other Info
Submitted By: Richard Arellano
Department: Support Services
Financial Impact and Cost/Benefit Considerations: $7,000,000
Discussion
The Board approved the existing Penske contract for fleet maintenance services in 2016 for an amount of $7,500,000. Penske fleet maintenance services was contracted to perform routine maintenance and repairs on PEC fleet vehicles and equipment. Due to a growing fleet and a heavy reliance on this contract service, these funds are nearing exhaustion, possibly by September 2019. To maintain this contract and continue fleet services, an additional $7,000,000 is being requested that should secure this service through 2021.
Body
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE COOPERATIVE, that the Board approves an extension of the existing contract for Penske fleet maintenance services for $7,000,000 for fleet maintenance-related costs; and
BE IT FURTHER RESOLVED, that the Chief Executive Officer or designee take all such actions as needed to implement this resolution.