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Submittal Date: <br />11 /20/ 12 <br />Council Date: <br />ll /26/ 12 <br />CITY COUNCIL AGENDA ITEM BRIEFING SHEET <br />Originating Department: I Presented By: <br />City Manager � John Godwin <br />ECOMMENDED MOTION: <br />Recommend Award of Contract <br />POLICY ISSUE(S�: <br />BACKGROUND: <br />Agenda Item No.: <br />16. <br />Sanitation Solutions has for a number of years provided landfill and demolition services to the City of <br />Paris. We recently discussed extending their agreement, including existing rates, which in turn include <br />demolition of 15 structures each year for free. Sanitation Solution's contract has expired, however, so <br />we have been required to issue a formal Request for Proposals (RFP). Although we received inquiries <br />from a few different companies, including some from out of state, Sanitation Solution was the only <br />company that submitted a complete proposal. We have been satisfied with their service over the last <br />several years, and therefore recommend the council approve a contract extension. <br />In addition to the overall contract extension, we have also negotiated a new tiered rate structure, which <br />pairs increasing discounts with increasing volumes of business. Specifically, if the city spends a total of <br />$150,000 or less, we will pay the same rates as now. However, for all work completed over $150,000 <br />but less than $250,000, we would receive a 5% price reduction; with an additional 10% reduction off the <br />current price for work above $250,000 up to $350,000; and a 15% price reduction for work over <br />$350,000. In this way, Sanitation Solutions' prices are protected should the city not complete as much <br />work as projected for some reason, but the city will still get a significant price break when we do <br />complete the planned demolitions in 2012-13 or beyond. Another change we are recommending is a <br />three-year agreement versus the previous single year. In this way we have a stable, predictable price, <br />making it easier to budget and plan. <br />BOARD�COMMISSION RECOMMENDATION: <br />EXHIBITS: <br />Contract <br />ACTION: <br />❑ Financial Report � Minute Order <br />❑ Department Report ❑ Resolution <br />❑ Presentation ❑ Ordinance <br />❑ Public Hearing ❑ Other <br />FISCAL NOTES: <br />BUDGET INFO: <br />Expense $ <br />Budgeted Amt. � <br />YTD Actual $ <br />Acct. Name <br />Acct. Number <br />City of Paris �� Revised 6/20/12 <br />t <br />