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Advisor, but will also be free to work with our entire team when desired or appropriate. All <br />Guaranty Chevrolet staff will have a full understanding of the details of our agreement with the <br />City as outlined in this proposal. Work that falls under the manufacturer warranty on any vehicle <br />will be performed at the expense of General Motors pursuant to the New Vehicle Warranty <br />terms and policies. <br />Cost Proposal <br />Guaranty Chevrolet currently has an active contract with the City of Santa Ana valid though <br />6/30/2024. The terms of that agreement are as follows: <br />• $175 per hour of labor <br />• Parts sold at List Price less 25% <br />For this contract we propose the following labor rate schedule to allow for ever rising business <br />expenses, notably technician wages: <br />• $180 per hour of labor beginning 7/1/2024 (or the date this agreement goes into force) <br />• This rate will increase in line with the Consumer Price Index as calculated by the US <br />Department of Labor Statistics and COLA as announced by the Social Security <br />Administration every October, to take effect January 11' of the following year. <br />o For example, if hypothetically the Social Security Administration announces a <br />5.0% COLA increase in October 2023 to take effect January 1, 2024, the labor <br />rate of $180 would increase 5% to $189.00 per labor hour beginning January 1, <br />2024. <br />o This calculation would repeat every year of the contract term with the adjusted <br />labor rate taking effect January 1' using the October Social Security COLA <br />announcement. <br />o While perhaps not perfect, this is the most fair way for Guaranty Chevrolet to <br />retain world class technicians, who receive annual pay reviews, while also <br />protecting the City tax payers by setting the increase in -line with the broader <br />economy. <br />• Parts will continue to be sold to the City of Santa Ana at List Price less 25% for the <br />entirety of this contract. <br />REFERENCES <br />• James Aguila, Assistant Purchasing Agent, Orange County Fire Authority <br />0 7145736647 <br />o iamesaguila@ocfa.org <br />• Carlos Corona, Deputy Purchasing Agent, OC Public Works <br />0 7146679694 <br />o Carlos.Corona@ocpw.ocgov.com <br />• Juan Saldivar, Vehicle Mechanic II, Santa Ana Unified School District <br />0 7146100870 <br />o Juan.saldivar@sausd.us <br />