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7�-�f <br /> REPOR T <br /> _ To the Honorabie Mayor and City Council <br /> From the City Manager <br /> October 13, 2003 - <br /> Subject <br /> Amendment to Agreement for Shopping Cart Retrieval Services. <br /> Recommendation <br /> Authorize the City Manager to execute an amendment to extend the agreement for <br /> shopping cart retrieval services with DeMichele's Shopping Cart Retrieval Services. <br /> Background <br /> The City Council authorized the execution of the agreement with DeMichele's Shopping <br /> Cart Retrieval Services on January 14, 2002. Since that time, the contractor has provided <br /> very good service to the City, retrieving 24,121 carts in Fiscal Year 2002-2003. The <br /> agreement expired on June 30, 2003, and needs to be extended. The amendment will <br /> include annual renewal and termination provisions and extend the agreement for five <br /> years, to June 30, 2008. <br /> Altemative <br /> _ Not extend the agreement and terminate the cart retrieval program. This is not <br /> recommended since the program has made a noticeable improvement in the City's <br /> appearance for a minimal fiscal impact. <br /> Fiscal Impact <br /> The Fiscal Year 2002-2003 net direct costs for cart retrieval services were $6,758. <br /> $84,423 paid to DeMichele's Shopping Cart Retrieval Services <br /> -77,465 collected from the participating businesses <br /> - 200 from the sale of abandoned carts <br /> Total $ 6,758 <br /> The net direct costs will be reduced by the amount our collection agency can recover on <br /> the $5,842 of billings over ninety days due. If all overdue bills are paid, the annual net <br /> direct costs are approximately $1,000 (the cost of retrieving carts that are not identified or <br /> from non-participating businesses). <br /> In addition to the direct costs, there are indirect costs for the staff time to operate the <br /> program (about forty hours per year) and for the value of the cart storage space at the <br /> corporation yard. <br /> � � � <br /> � --E�t. ,' �-v,�. �' ^ <br /> Gary L pori ruce Liedstrand E Everett <br /> T Senior Building Inspector Community Development Services Cily Manager <br /> Director <br /> Attachment <br /> 1. Amendment to Agreement for Shopping Cart Retrieval Services <br />