Title
AUTHORIZATION TO ENTER INTO AMENDMENT NO. 1 TO THE LINKING AGREEMENT WITH REHRIG PACIFIC COMPANY, INC., FOR RESIDENTIAL REFUSE AND RECYCLING CONTAINERS
Staff Contact: Jack Friedline, Director, Public Works
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Purpose and Recommended Action
Recommendation
This is a request for City Council to authorize the City Manager to enter into Amendment No. 1 to the Linking Agreement with Rehrig Pacific Company, Inc., Contract No. C-10035, for an increase of $100,000, for a total not to exceed amount of $1,975,000, for the entire term of the Agreement for residential refuse and recycling containers. The initial term of the Agreement is effective through June 30, 2018.
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Background
The Solid Waste Collections Division of Public Works Department provides containers to Glendale residents for trash and recycling. The Division typically replaces between 6,000 to 7,000 containers annually, which contributes towards the overall environmental health and safety standards required for residential solid waste collections.
Rehrig Pacific Company was awarded a bid by the Town of Gilbert, Contract No. 2015-4105-0512, for Residential Refuse and Recycling Containers, on February 19, 2015, is effective through June 30, 2018, and includes an option to renew the contract for an additional two, one-year renewals, allowing the contract to be extended through June 30, 2020.
On June 9, 2015, the city entered into a Linking Agreement for residential refuse and recycling containers with Rehrig Pacific Company, Contract No. C-10035, in amount not to exceed $1,875,000, utilizing the Town of Gilbert, Contract No. 2015-4105-0512 for residential, refuse and recycling containers.
Cooperative purchasing allows counties, municipalities, schools, colleges and universities in Arizona to use a contract that was competitively procured by another governmental entity or purchasing cooperative. Such purchasing helps reduce the cost of procurement, allows access to a multitude of competitively bid contracts, and provides the opportunity to take advantage of volume pricing. The Glendale City Code authorizes cooperative purchases when the solicitation process utilized complies with the intent of Glendale’s procurement processes. This cooperative purchase is compliant with Chapter 2, Article V, Division 2, Section 2-149 of the Glendale City Code, per review by Materials Management.
Analysis
This request is to increase the total compensation for the purchase of refuse and recycling containers to support the container replacement program during the first several months of Fiscal Year 2017-18.
Previous Related Council Action
On June 9, 2015, Council authorized entering into a Linking Agreement with Rehrig Pacific Company, Contract No. C-10035, for the purchase of residential refuse and recycling containers in an amount not to exceed $1,875,000 for the full term of the agreement.
On December 14, 2010, Council awarded a proposal to Rehrig Pacific Company, Contract No. C-7832, for the purchase of residential refuse and recycling containers in an amount not to exceed $300,000 annually for the full term of the agreement.
Community Benefit/Public Involvement
The purchase of the containers will allow the city to provide quality containers to Glendale residents that will assist with a successful recycling program. The refuse containers meet all health and quality standards set by Maricopa County health code regulations.
Cooperative purchasing typically produces the lowest possible volume prices and allows for the most effective use of available funding. The bids are publicly advertised and all Arizona Firms have an opportunity to participate.
Budget and Financial Impacts
Funding is available in the Fiscal Year 2016-17 Public Works Operating and Maintenance budget. The increase in expenditures with Rehrig Pacific Company is $100,000 for the entire term of the Agreement, contingent upon Council Budget approval.
|
Cost |
Fund-Department-Account |
|
$75,000 |
2480-17830-524400, Curb Service |
|
$25,000 |
2440-17740-524400, Recycling |
Capital Expense? No
Budgeted? Yes
Requesting Budget or Appropriation Transfer? No
If yes, where will the transfer be taken from?