ADOPTED - NOVEMBER 9, 2010

                                                                                                                                                     Agenda Item No. 4

Introduced by the County Services and Finance Committees of the:

INGHAM COUNTY BOARD OF COMMISSIONERS

RESOLUTION TO ADOPT A POLICY ON COST INCREASES FOR SERVICE RELATED CONTRACTS IN INGHAM COUNTY

RESOLUTION #10-357

WHEREAS, Ingham County has been making substantial and necessary reductions in its services to its citizens and cuts in its work force due to the continuing decline of the economic conditions in this county and state; and

WHEREAS, the County has implemented hiring delays, hiring freezes, travel prohibitions, and employee furlough days without pay and other drastic cost savings measures in order to bring its expenditures in line with its declining revenues; and

WHEREAS, Ingham County desires to establish guidelines for service related contracts for vendors doing business with Ingham County that reflects the current economic climate; and

WHEREAS, the Consumer Price Index’s Annual Inflation rate was a negative 0.7% for 2009 and projections are for small increases over the next several years.

WHEREAS, Ingham County employees are receiving a 1% increase in their pay in 2011.

THEREFORE BE IT RESOLVED, that the Ingham County Board of Commissioners adopts the following policy on cost increases for service related contracts in Ingham County:

-           In general, annual cost increases should not exceed 1% a year for the 2010, 2011, and 2012 County fiscal years.

-           Proposed contracts with vendor cost increases that exceed the above percentage increases will receive extra scrutiny and be identified by staff as they are reviewed by the appropriate Liaison and Finance Committees of the Ingham County Board of Commissioners.

-           County Staff will make this policy known to all vendors as they negotiate proposed new and renewal contracts.

-           This policy will be reviewed and evaluated by the Finance Committee during the last quarter of 2012.

BE IT FURTHER RESOLVED, that if price adjustments are requested pursuant to the terms of the contract, the vendor must notify the County ninety (90) days prior to the current term’s expiration date.

BE IT FURTHER RESOLVED, that prior to commencement of subsequent renewal terms, the County may entertain a request for escalation in accordance with the current Consumer Price Index at the time of the request or up to a maximum 1% increase on the current pricing, whichever is lower.

ADOPTED - NOVEMBER 9, 2010

                                                                                                                                                     Agenda Item No. 4

RESOLUTION #10-357

BE IT FURTHER RESOLVED, that for purposes of this section, “Consumer Price Index” shall mean the Consumer Price Index-All Urban Consumers-United States Average-All Items (CPI-U), as published by the United States Department of Labor, Bureau of Labor Statistics.

BE IT FURTHER RESOLVED, that the County reserves the right to accept or reject the request for a price increase.  If the price increase is approved, the price will remain firm for one (1) year from the date of the increase.

BE IT FURTHER RESOLVED, that all Invitation to Bids and Request for Proposals issued for services shall contain language referencing this policy.

BE IT FURTHER RESOLVED, that this policy will become effective immediately upon the date of the passage of this resolution.

BE IT FURTHER RESOLVED, that copies of this resolution will be forwarded to all Ingham County Department Heads and Elected Officials.

COUNTY SERVICES:    County Services will meet 11/8/10

FINANCE:   Yeas:  Grebner, Tennis, Bahar-Cook, Schor, Holman, Dougan

Nays:  None             Absent:  None           Approved 10/20/10