How Transition to New Company Would Work

CENTRAL — The current master privatization agreement for City Services between the City of Central and CH2MHILL provides details on how the transition will work if a new company is selected for the job.

Section 14 of the contract provides that, upon termination of the agreement, both the City and CH2MHILL will work toward a “smooth and harmonious transition from the Corporation to the City, or to any other person or entity City may designate… with the same quality services otherwise afforded.”

The contract also provides for the situation in which the City may not be ready to assume responsibility for providing City Services upon termination (June 30, 2011).  In that case, the agreement provides that CH2MHILL shall continue to provide the services provided in the contract for 90 days or until the City is capable, in its sole discretion, of assuming the responsibilities under the contract, whichever occurs sooner.

In this situation, the City is obligated to pay CH2MHILL its “actual costs,” which are defined as its direct and indirect costs of providing the services plus a mutually agreed upon fee.

The City also has the right to assume any of CH2MHILL’s leases or agreements, if it desires to do so.