City of Oak Creek

Common Council Report

Meeting Date:  09/16/03

Item No.:  11

Recommendation:  That the Common Council approve the recommendation of the Street Superintendent and accept the proposal of Rehrig Pacific Company to lease/purchase carts to the City of Oak Creek for the six (6) month pilot program.

Background:  Rehrig Pacific Company has agreed to furnish 620-95 and 30-65 gallon “Huskylite” containers at the pricing specified below within 30-45 days after the receipt of approval from the City of Oak Creek.  At the end of the six (6) month pilot program, Rehrig Pacific has provided the City with buy out options as follows:

1) If the City decides to proceed to City wide collection, the City will owe Rehrig Pacific the unit prices awarded for the procurement of the City wide carts.

2) If the City decides not to proceed to City wide collection, the City will owe:

a. $20.00 plus shipping ($3.38 est.) to return the carts

b. $40.00 to keep the carts

c. Combination of the above

Fiscal Impact:  Council approved funds in the amount of $31,000.00 at their meeting of August 19, 2003 for this pilot program.

1. If the City approves a City-wide cart program the price of the pilot carts will reflect low bid contract pricing, expected to be less than $40.00.
2. If the City chooses Option #2a, the cost would be $15,137.00.
3. If the City chooses Option #2b, the cost would be $25,910.00.

Respectfully submitted,

Robert L. Kufrin

City Administrator

Prepared by:

William H. Schaper

Street Superintendent

Approved by:                                                   Fiscal Review by:

Wayne St. John                                              Beverly A. Buretta, CMC

Director of Public Works                                City Clerk

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