Laserfiche WebLink
OE SAryT ' <br /> REQUEST FOR <br /> 4x r 2 <br /> II�IWt�• <br /> COUNCIL ACTION <br /> PREPARED BY .;'+ • .• DATE OFCOUNCI LACTION4e/ .4.17,/ /1,77 <br /> DATE 12-15-77 PHONE 4906 friar.Gas (_3"d/iwlt.GVN /y78 <br /> SUBJECT SUPPLEMENTAL REPORT ON3 Mt. <br /> STATUS OF TRASH CONTRACT <br /> NEGOTIATIONS <br /> APPROVED <br /> DEPARTMENT HEAD DEPUTY CITY MANAGER ASSISTANT CITY MANAGER CLERK OF TH COUNCI <br /> RECOMMENDED ACTION <br /> That the City Council approve in concept a new contract beginning January 1 , <br /> 1978 and ending December 31 , 1982 with Great Western Reclamation, Inc. , <br /> based on terms described in this report, and direct that a formal contract <br /> be prepared for Council approval at their meeting of January 16 , 1978 . <br /> BACKGROUND <br /> The City Negotiating Team .invited the-contractor' s team to meet yesterday, <br /> December 14 , in a last attempt to break the deadlock in our negotiations . <br /> The contractor is willing to modify his request for a_ rate of $2 . 29 starting <br /> January 1 and is willing to accept a rate of $2. 21 . This is 3. 7% higher <br /> than his present rate of $2.13 and 2. 3% higher than the seven largest cities ' <br /> average of $2.16. He also agreed to a 7% increase on January 1 , 1979 to <br /> $2 . 36 and on January 1 , 1980 , another 7% increase to $2. 53. This would cost <br /> the City $3, 596 , 390 over the three-year period. This is only 0. 5% above the <br /> $3, 577 , 000 cost which our consultant feels we could get through competitive <br /> bidding. <br /> The City team agreed that the contractor could continue to provide bin service <br /> for all residential facilities such as apartment and condominium projects, <br /> but still strongly feels that bin service for commercial and industrial <br /> accounts should be open competition. The two teams have negotiated prices <br /> for bin service along the following lines . Great Western' s present price <br /> schedule for bin service is about 8% above an 11-city average in Orange <br /> County. They have agreed to hold their prices without change through all of <br /> 1978 , to be followed with a 7% increase on January 1 , 1979 and another 7% <br /> increase on January 1 , 1980. For a three cubic yard bin emptied once weekly, <br /> this would cost $23. 00 a month during 1978, $24 . 61 during 1979, and $26 . 33 <br /> during 1980. <br /> All of the above prices will be firm and the contractor will assume all <br /> risks inherent with labor settlements or additional costs caused by inflation. <br /> This appears to be a fair and equitable agreement. It will hold prices firm <br /> for a three-year period, and future negotiations would be required for a <br /> pricing structure during the final two years of the contract. <br /> The contractor has not agreed to the open competition on commercial and <br /> industrial bin service . This is the only point still in contention, and we <br /> it <br /> urge the City Council to support the City Negotiating Team on this issue . <br /> Respl tfully Submitted by. City Negotiating Team: <br /> Rs � ' <br /> Davi:' Ort' z; Co rilman t uce C. <br /> Spragg , a' t` <br /> Y f=•ger <br /> Chairman Member <br /> ��,oUJTIO& t410111' <br /> m <br /> 1 <br /> o Ronald E. Wolford, A .� stant City Manager <br /> s Member <br /> a <br /> ??76-lei <br /> mq <br />