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In addition thereto, fifteen percent (L5%) of the total costs for municipal labor/frinee <br />benefits, materials and municipally owned equipment shall be added for overhead <br />costs for accounting, billing and administrative services. <br />DISCUSSION: <br />Public Works recently decided to change its chip seal rock purchasing strategy moving to <br />establish rock stockpiles. The move affords increased flexibility and improved rock <br />quality. Rock prices are expected to fluctuate year to year. If the City desires using <br />County forces to chip seal their roadways, our new business practice could result in the <br />County paying more for replacement stockpile rock than it receives in payment from the <br />City (assumes we use previous year stockpile rock purchased at a reduced rate). The City <br />is not keen on our proposed addition. Nothing prohibits the City from buying and <br />stockpiling their own rock for use by County forces during chip seal operations. <br />The decision to charge each other 15% for fringe benefits collects approximately one half <br />of the benefit cost for County employees. <br />FISCAL IMPACTS: <br />One half of the true cost of labor fringe benefits is being collected in the proposed joint <br />use agreement with the City. <br />ATTACHMENTS: <br />Exhibit 1: Existing Agreement <br />Page 2 of 3 <br />PUBLIC WORKS BOARD OP COUNTY COMMISSIONERS WORK SESSION Si ;AFF RITOR I <br />