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Home My WebLink AboutCORRESPONDENCE - BID - 5808 CARPET MAINTENANCE (6)Administrative Services Purchasing Division City of Fort Collins October 31, 2005 Porter Industries, Inc. Attn: Greg Jones PO Box 27 Loveland, CO 80539-0027 Re: Renewal, Bid 5808 Carpet Maintenance Dear Mr. Jones: The City of Fort Collins wishes to extend the agreement term for the above captioned proposal per the existing terms and conditions. The term will be extended for one (1) additional year, January 1, 2006 through December 31, 2006. You're approved for 3% increase of contract price. If the renewal is acceptable to your firm, please sign this letter in the space provided and return it to the City of Fort Collins, Purchasing Division, P. O. Box 580, Fort Collins, CO 85022, within the next fifteen days. If this extension is not agreeable with your firm, we ask that you send us a written notice stating that you do not wish to renew the contract and state the reason for non -renewal. Please contact James R. Hume, CPPO, Senior Buyer, at (970) 221-6776 if you have questions Sincerely, L4JL� �Mames B. O'Neill II, CPPO, FNIGP Director of Purchasing and Risk Management Signature. / �,a f Date t (Please indicate your desire to renew Bid 5808 by signing this letter and returning it to Purchasing Division within the next fifteen days.) cc: JBO: amm 215 North Mason Street • 2nd Floor • P.O. Box 580 • Fort Collins, CO 80522-0580 • (970) 221-6775 • FAX (970) 221-6707 October 19, 2005 Joan Barrie — Operation Services Jim Hume — Purchasing City of Fort Collins P.O. Box 580 Fort Collins, CO 80522 RE: CARPET MAINTENANCE # 5808 / CUSTODIAL # P — 897 Dear Joan & Jim: I wanted to start by saying how very grateful we are to be serving the City of Fort Collins and both of you. We have over 200 different "bosses" and I am not stretching the description by saying the City of Fort Collins is one of the best environments we serve in based on customer/vendor relations, incentive programs, realistic expectations, etc. Thank you. Joan forward an email that indicated the City of Fort Collins would like to renew the two aforementioned contracts and Porter Industries is, of course, excited to continue serving the City. Joan's email also indicated the Denver/Boulder CPI-U is 1.9% and I wanted to briefly share a few facts we are facing that are motivating me to ask if we can investigate the possibility of increasing these contracts more than the Denver/Boulder suggested 1.9%. I put together costs from our fiscal third quarter 2004 and compared it to our third quarter this year. I found the following: * 14 % increase in fuel costs — This was a comparison at the average per gallon cost. The third quarter of this year Porter Industries averaged $ 2.25 per gallon and as you know it has risen considerably since that point so this increase is even greater now, but again I used large pieces of data to ensure validity of the argument. Adjusting this amount for cost of sales this is an increase of a full four tenths of one percent... just in fuel. In the carpet maintenance contract this translates to over six percent in increased costs. Letter to City of Fort Collins October 19, 2005 Page 2 * 9.5 % increase in consumables - I compiled the costs of the six most popular consumable materials used in your facilities including: toilet paper, paper towels, hair & body soap, liners, etc, again from the third quarter of 2004 & 2005 and found nearly a 10% increase in material cost. This is a direct relationship to your accounts as these costs are included and this translates to approximately a five percent increase. * 7.8 % increase in chemicals - Again using the third quarter we experienced a 7.8% increase in the cost of the cleaning products we are using in your facilities. This again has a direct relationship to your accounts and translates to three tenths of one percent increase. I checked this morning with our supplier and they are preparing a list of increases, for four of the products from the previous two lists, which will change after current inventory is consumed. In addition, I am unsure if your use rates indicated higher attendance at the EPIC this summer, but we did experience a slightly more than five percent increase is consumable use in summer 2005 versus summer 2004. In lieu of the mentioned cost increases I would like to propose a 5.7% increase for both maintenance contracts and begin negotiation discussions immediately on the possibility of such an increase. Thank you for your consideration and if you have any questions please feel free to call me at 970-667-5239 ext. 206 or email me at kensnaporterindustries.com. Thank you, Ken Sargent Field Administrator Porter Industries, Inc.