AgdaPkt 2002-01-14 - Laserfiche WebLink

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REPORT To the Honorable Mayor and City Council From the City Manager January 14, 2002 Subject Agreement with new vendor for shopping cart retrieval services. Recommendation Authorize the City Manager to execute the new agreement for shopping cart retrieval services with DeMichele's Shopping Cart Retrieval Service. Background On March 31,2001, at the conclusion of the first year contract, the City exercised the contract option to renew for another year. Due to rising fuel and labor costs, the current vendor, Scott Jr. Shopping Cart Service, stated that it was financially infeasible for them to operate at the current retrieval cost of $3.00 per cart. A request to rebid was granted and Scott Jr. Shopping Cart Service agreed to operate under the contract until a.new contract was executed. A Request for Proposal was put out to bid. We received two bids; one from DeMichele's Cart Service, at $3.50 per cart, and one from Scott Jr., at $4.50 per cart. DeMichele's references have been checked. They were highly regarded for over 20 years of good reliable service by a northern California store chain, at their district level and by one of their store managers. DeMichele's is the lowest responsible bidder. Staff has contacted all 38 currently participating stores. Thirty five stores have signed new contracts for the City service. One store no longer has carts. Two stores have contracted with another service. Alternatives 1. Negotiate a contract with Scott Jr. Sopping Cad Service at $4.50 per cart. 2. Discontinue the current shopping cart retrieval program. Fiscal Impact Participating stores will pay for the majority of the cost of the program. Fiscal impact to the General Fund is less than the previous estimated costs of $82,800. The costs are estimated to be $62,000 per year: $15,000 for approximately 20% of a staff member's time for contract administration, $8,000 for the duration of the program to enforce and maintain the program (10% of a staff member's time), $15,000 per year for carts that are not part of the program (including unmarked carts and carts from outside of Redwood City, that the vendor picks up and is paid for), and the equivalent of $24,000 annual market value for storage space at the corporation yard.