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Home My WebLink About4.B. Authorize Purchase of 2,200 Aditional Refuse/Recycling ContainerspbtA SHAKC)PEE TO: Mayor and City Council Mark McNeill, City Administrator FROM: Mark McNeill, City Administrator DATE: 04/29/2014 General Business 4. B. SUBJECT: Authorize Purchase of 2,200 Additional Refuse/Recycling Containers (F) Action Sought The Council is asked to affirm the purchase of 2,200 additional 65- gallon refuse /recycling carts from Cascade Engineering Company. Background In January, the Council authorized purchase of 22,000 refuse /recycling containers from Cascade. That number is based on customer counts which were provided by the current hauler, Dick's Sanitation. During the week of April 14th, Dick's notified the City that an additional database had been omitted from the submitted count, which indicated that an additional 1,063 townhouse customers had not been included in the original database of 11,000 Shakopee contract accounts. As such, the City will be 2,126 65- gallon containers short. For ordering purposes, that number is being rounded up to 2,200 carts. We are grateful that Dick's notified the City of their oversight; as without that the number of carts to be delivered would have been about 10% under the necessary amount. When we notified the supplier, Cascade Engineering Company, we were told that it was in the middle of the production run of the original order, and so it was easy to add the extra containers. Delivery will therefore be able to be made at the same time. Budget Impact The cost of this order is $86,020, plus sales tax if applicable. The original containers were to be funded with an inter -fund loan from the Sanitary Sewer Fund. These additional containers will be funded in the same way, which will mean a larger loan amount. However, the repayment will still be made over the same 10 year term, with the same charges made as to the other cart users. Recommendation I recommend that Council affirm the purchase of these carts. Note that the order was placed, so that delivery would be on time. Note that the cart order was placed on April 17th, so as to assure timely delivery. Action Required If the Council concurs, it should, by motion, authorize the purchase of 2,200 refuse /recycling carts from Cascade Engineering Company at a cost of $86,020, plus sales tax if applicable. Attachments: