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HomeMy WebLinkAbout2004-185 Contract - Osmose UtilitiesJuly 6, 2004 Mr. Scott Johnson Operations Superintendent City of Ashland 90 North Mountain Avenue Ashland, Oregon 97520 RE: Groundline Inspection and Treatment of Wood Distribution Poles Dear Mr. Johnson, It is our understanding that the City of Ashland and Osmose Utilities Services, Inc. would like to continue working under the present contract dated, January 28, 2003. Osmose proposes no change to the contract mentioned, with the exception of a three percent increase on items from the previous price schedule (2003). See new price schedule for the 2004 prices. The following costs have had the most impact on Osmose with regard to the proposed price increase. We would be happy to further discuss the items listed below. Labor Labor costs in the year 2004 have increased by 2% with the International Brotherhood of Electrical Workers (I.B.E.W). Osmose currently has a collective Bargaining Agreement with the I.B.E.W. Material Cost Osmose manufactures the majority of the products used for treatments in our pole test and treat operation. This means that we can shop, around for the best prices for raw materials. However, the cost of raw materials continues to go up, and did so in 2003 at a 5% increase over 2002. We also expect another .5% increase in 2004. The material cost invollved in this project for the City of Ashland is minimal. However, Osmose wants to show any and all costs that impact pricing to our customers. Health Care Costs As in most industries, our medical costs have increased. In 2003 the Osmose Employee Healthcare Plan costs increased over 20%. It is predicted that the cost may increase as much as 40% in 2004. Government mandated improvements in regard to pre-existing conditions and "Mental illness coverage" ca, used a large portion of this additional cost. Prescription drug costs jumped 15% in the last year. Insurance Premiums The important thing to remember is that not only do we pay the insurance premiums; our self.-insured deductibles are very high. Again, this is above the premiums and prior to any coverage from the insurance carrier. Osmose also pays all legal fees and expenses associated with handling and resolving these claims. Each year Osmose deals with dozens of fraudulent claims filed under our Workers' Compensation, Auto, and General Liability Coverage. Osmose Utilities Services, Inc. 16421 N. Tatum Blvd., Suite 207 ° Phoenix, AZ 85032 602-569-5632 · Fax 602-569-5633 Mr. Scott Johnson -Operations Superintendent The impact of September 11th on the insurance industry has been considerable. It is known that premiums have significantly increased. Impacting this further is that insurance companies have been hurt dramatically by decreased revenue generated by investments in the stock market. In 2003 we experienced a 33% increase. These dramatic costs have had huge negative effects on the cost of doing business. The chart attached (Attachment 1) indicates the percentage of increase from 2003 through 2004 (based on the I.B.E.W Agreement), for wages and benefits. The increases are broken out by crew size. The percentage increase used for this particular work for the City of Ashland is reflected by the % change 7/1/2004 7.15% column. However, Osmose proposes only a three percent (3%) increase for each item, reflected in the 2004 Price Schedule. All we would need to make the 2004 Price Schedule a part of the existing contract would be the return of a fully executed Acceptance Copy to our Phoenix address. Very Truly Yours, James H. McGiffert Vice President, Pacific Region Osmose Utilities Services, JHM/whh Signature of A Printed Name Enclosures CC: Buffalo B. Smith G. Herge Title Date of Acceptat~ce City of Ashland Osmose Job Number: 3-51-493 Tuesday, July 06, 2004 Partial with Flu-Rods 2004 Price Schedule Visual Report Sound & Bore (7/8") Partial Excavate-No Treatment Flurods 1/2" X 3" Per Rod Partial Excavate Reject Sound & Bore Reject $3.61 $8.36 $16.74 $2.85 $16.74 $8.36 Attachment 1 Union Benefits for Consessionary Wages Two Man Crew 211/2003 7/1/2003 211/2004 7/1/2004 % Change 2/1/04 % Change 711104 N.E.A.P-Foremen $ 5.00 $ 5.00 $ 5.00 $ 5.00 0.00% 0.00% N.E.A.P.-Groundman $ 3.25 $ 3.25 $ 3.25 $ 3.25 0.00% 0.00% W'a~le-Foremen $ 23.81 $ 23.81 $ 24.29 $ 24.29 2.02% 2.02% Wa~e-Groundman $ 15.48 $ 15.48 $ 15.79 $ 15.79 2.00% 2.00% H~alth & Welfare-FM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% iHealth &Welfare-GM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Totals' l$ 53.0415 54.04[$ 55.8315 56.83 5.26% 7.15% Three Man Crew 2/1/2003 7/1/2003 2/1/2004 7/1/2004 % Change 2/1/04 % Change 7/1/04 N.E.A.P-Foremen $ 5.00 $ 5.00 $ 5.00 $ 5.00 0.00% 0.00% N.E.A.P.-Groundman $ 3.25 $ 3.25 $ 3.25 $ 3.25 0.00% 0.00% N.E.A.P.-Gmundman $ 3.25 $ 3.25 $ 3.25 $ 3.25 0.00% 0.00% Wa~le-Foremen $ 23.81 $ 23.81 $ 24.29 $ 24.29 2.02% 2.02% Wage-Groundman $ 15.48 $ 15.48 $ 15.79 $ 15.79 2.00% 2.00% Wage-Groundman $ 15.48 $ 15.48 $ 15.79 $ 15.79 2.00%i 2.00% Health &Welfare-FM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Health &Welfare-GM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Health &Welfare-GM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Totals $ 74.52 $ 76.02 $ 78.62 $ 80.12 5.50% 7.51% Four Man Crew 2/1/2003 7/1/2003 2/'1/2004 7/1/2004 % Change 2/1/04 % Change 7/1104 N,E.^.P-Foremen $ 5.00 $ 5.00 $ 5.00 $ 5.00 0.00% 0.00% NiE.^.P.-Groundman $ 3.25 $ 3.25 $ 3.25 $ 3.25 0.00% 0.00% N.E.A.P.-Gmundman $ 3.25 $ 3.25 $ 3.25 $ 3.25 0.00% 0.00% NiE.A.P.-Groundman $ 3.25 $ 3.25 $ 3.25 $ 3.25 0.00% 0.00% Wa~le-Foremen $ 23.81 $ 23.81 $ 24.29 $ 24.29 2.02% 2.02% Wa~e-Gmundman $ 15.48 $ 15.48 $ 15.79 $ 15.79 2.00% 2.00% Wa~e-Groundman $ 15.48 $ 15.48 $ 15.79 $ 15.79 2.00% 2.00% Wa~e-Groundman $ 15.48 $ 15.48 $ 15.79 $ 15.79 2.00% 2.00% Health &Welfare-FM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Health &Welfare-GM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Health &Welfare-GM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Health &Welfare-GM $ 2.75 $ 3.25 $ 3.75 $ 4.25 36.36% 54.55% Totals $ 96.00 $ 98.00 $ 101.41 $ 103.41 5.64% 7.72% N.E.A.P. (National Electrical Annuity Plan) FM (Foremen) GM (Groundman) I DATE (MM/DD/YYYY) A CORD CERTIFI'CATE OF LIABILITY INSURANCE zz/ z/zoo PRODUCER (716) 505-2600 FAX (716) 505-0375 THIS CERTIFICATE IS ISSUED AS A'MATFER OF INFORMATION First Niagara Risk Management, Inc ONLYAND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 170 Northpoi nte I~urkway ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. P. O. Box 1010 Amherst, NY 14226-7010 INSURERS AFFORDING COVERAGE NAIC # INSURED Osmose Utilities Services Inc. INSURERA: ACE American Insurance Co 2266~ 980 El~icott Street INSURER B: Buffalo, NY 14209-2398 INSURERC: ,, INSURER D: INSURER E: COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD I~DICAT'ED.'NOTWITHSTANDIN~ ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR ~DD°L POLICY EFFECTIVE POLICY EXPIRATION UMITS LTR ~NSR£ TYPE OF INSURANCE POUCY NUMBER DATE ~MM/DD/Y~ DATE ~MM/DD/YY~ GENERAL UABILITY HDOG21694526 01/01/2004 O1/01/2005 EACH OCCURRENCE $ 2,000,000 ~- COMMERCIAL GENERAL LIABILrTY DAMAGE TO RENTI--[~' "$ 50,000 PREMI.~FR (F~ I CLAIMS MADE ~ OCCUR MED EXP (Any one person) $ 5,000 A PERSONAL & ADV INJURY $ 2f 000,0.00 GENERALAGGREC~TE I'$" 2,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: PRODUCTS - COMFVOP AGG $ Z I POLICY RPRO- JECT ~-~ LOC AUTOMOBILE LIABIMTY I5AHO8015685 01/01/2004 01/01/2005 COMBINED SINGLE LIMIT $ X ANY AUTO (La acddent) 2,000,00~ ALL OWNED AUTOS BODILY INJURY $ SCHEDULED AUTOS (Per person) A ' ' X HIRED AUTOS BODILY INJURY $ X NON-OWNED AUTOS (Per accident) PROPERTY DAMAGE $ (Per acddent) GARAGE UABILITY AUTO ONLY-EA ACCIDENT $ - I ANY AUTO OTHER THAN ACC $ I AUTO ONLY: AGG $ EXCESS/UMBRELLA MABIMTY XOOG20583435 01/01/2004 01/01/2005 EACH OCCURRENCE $ 5,000,000 A $ DEDUCTIBLE $ .. . RETENTION $ $ WORKERS COMPENSATION AND WLRC43967691 01/01/2004 01/01/2005' X I wc STATU- I lOTH- TORY LIMITS I I ER EMPLOYERS' LIABILITY E.L. EACH ACCIDENT $ 1,000,000 A ANY PROPRIETOR/PARTNER/EXECUT~/E OFFICER/MEMBER EXCLUDED? E.L. DISEASE - EA EMPLOYEE $ 1,000,000 If y~s. d~sc~".be under SPECIAL PROVISIONS below E.L. DISEASE - POLICY LIMIT $ 1,000 ~ 00~ OTHER , , DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES I EXCLUSIONS ADDED BY ENDORSEMENT ! SPECIAL PROVISIONS ~ac~f~c Region - confirmation of coverage. CERTIFICATE HOLDER CANCELLATION City of Ashland 90 N. Mountain Avenue Ashland, OR 9752,0 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER W1LL ENDEAVOR TO MAIL ~ 0 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO MAIL SUCH NOTICE SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSUREP~ rrs AGENTS OR REPRESENTATIVES. AUTHORIZED REPRESENTATIVE FNRM Inc Amherst/JELLCO ACORD 25 (2001108) ©ACORD CORPORATION 1988 IMPORTANT If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must be endorsed. A stateme,nt on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsernent. A statement on this certificate does not confer dghts to the certificate holder in lieu of such endorsement(s). DISCLAIMER The Certificate of Insurance on the reverse side of this form does not constitute a contract between the issuing insurer(s), authorized representative or producer, and the certificate holder, nor does it affirmatively or negatively amend, extend or alter the coverage afforded by the policies listed thereon. ACORD 25 (2001108) CITY OF ASHLAND 20 E MAIN ST. ASHLAND, OR 97520 (541) 488-5300 CITY RECORDER'S COPY DATE 7/1/2004 Page 1 / 1 I I: :' ' ' ;':':'PO'N~MBER :' '' ':03983 VENDOR: 006890 OSMOSE UTILITIES SERVICES INC 16421 N TATUM BLVD STE 207 PHOENIX, AZ 85032 SHIP TO: Ashland Electric Department (541 ) 488-5354 90 N MOUNTAIN ASHLAND, OR 97520 FOB Point: Terms: Net Req. Del. Date: 2/14/2003 Special Inst: Req. No.: Dept.: ELECTRIC Contact: D Wanderscheid/S Johnson Confirming? No Quantity , . Unit Description . . Unit Price Ext. Price THIS IS A REVISED PURCHASE ORDER · :.... i .i:i:~.::I :.'.'.:. ::.i:"i ': .'"::..]... ?~:i. '.".I '.~' :ili:':· i: ~NKE~:.: P'URC'HASE'...'0RD ER:":::..:'::' :.".':':.':":.': :. ~'i ':'.:.:.'..' ~.:' .' :..... '.' ..... ' ...... ."...'. '.'.. · ":'.: "~ ".. :":. .' .... Groundline Inspection and Treatment of 28,444.09: Wood Distribution Poles, FY 2003-2004 .:'.'....: .:.': ..':i.::.'~:.:" . :...;.:;.'.;'.: .. '.'.: '~.. :':.:.:'. .:............".....:." · .. Quotes Date of Agreement: 02/14/2003 ?: ~:~. Insurance certificates required/On file , Revised purchase order 08/13/2004 40,000.00; ........ Work.to be.continued this fiscal year. . . · ** This is a change order. *** I SUBTOTAL 68,444.09i BILL TO: Account Payable TAX 0.00 20 EAST MAIN ST FREIGHT 0.00 541-552-2028 TOTAL 68,444.09 ASHLAND, OR 97520 Account Number Amount AccOunt Number Amount E 690.11.18.00.60240(:) 68,444.09 , , Signature -- VENDOR COPY