Title
Resolution to Increase the Not-to-Exceed Limit for FY 2018 and for Subsequent Renewal Periods for the Contract with Bell Equipment for Rental of Refuse Trucks (NTE $150,000.00, plus a $20,000.00 Contingency)
Memorandum
On September 21, 2015, City Council approved a contract with Bell Equipment Company for the rental of refuse trucks (Resolution R-15-312). The approved agreement had an initial term of 31-months, with the option of three additional one-year renewal periods.
In its approval, City Council authorized an annual maximum each year for the contract, including a 3% annual escalation after the second year, with a total not-to-exceed amount over the life of the contract, including the three renewal periods, of $874,622.00. These maximums were based on an estimated eight weeks (plus a contingency of two additional weeks) that refuse-truck rental would be required to complete compost collection season. The contract limit set for FY 2018 was $136,856.00.
Due to increased service requirements of Art Fair and fueling difficulties of our CNG refuse trucks, additional rentals are required to efficiently deliver service. Current estimates for FY 2018 rental costs are approximately $150,000.00. Therefore, we request an increase of the not-to-exceed amount for FY 2018 to $150,000.00, with the 3% escalation amount for each renewal period after FY 2018 to be calculated starting with the $150,000.00 amount. We also request authorization of a $20,000.00 contingency, available to be spent as needed for this contract, in addition to the $150,000.00, in the event that our estimate remains low. Neither the contingency, nor dollar amounts remaining under the not-to-exceed limits, will carry over or accrue from year to year. Finally, we also request that the not-to-exceed amount for the life of the contract be adjusted based on the increased annual amounts, plus contingency amounts actually spent.
Budget/Fiscal Impact
The funding for the additional rental ...
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