CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Cooperative Procurement 23-306, Refuse Carts, to Otto Environmental Systems for an amount not to exceed $142,500
body
DEPARTMENT: Department of Public Works
SUBMITTED BY: Richard Dublinski, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
Since 2004, the Department of Public Works (DPW) has administered the City’s voluntary garbage cart program. The garbage carts come in three sizes: 95-gallon, 65-gallon and 35-gallon and are delivered with a ten-year manufacturer's warranty. Approximately 50,300 garbage carts have been sold since 2004.
The City-managed voluntary garbage cart program provides residents the opportunity to purchase carts at below-market prices. Pursuant to program design, City staff manages the delivery of new carts and the repair of damaged carts. As such, the City maintains an inventory of carts and spare parts. Prior to the pandemic, residents were able to purchase carts at the Public Works Service Center. Since March of 2020, all refuse carts are being delivered to residents without an additional delivery charge.
Otto Environmental Systems (Otto) has manufactured and supplied the garbage carts since the inception of the program.
DISCUSSION:
DPW has experienced an increase in the number of replacement carts being ordered over the past few years, as carts originally purchased in the early years of the program are no longer under warranty. In 2023, more than 1,100 garbage carts have been sold.
Refuse carts and spare parts are available from Houston-Galveston Area Council Contract RC01-21, an approved cooperative contract, through Otto Environmental Systems. Based on pricing received through this contract, the cost of the carts will remain the same as in previous years.
The term of this contract is from January 1, 2024, through December 31, 2024.
FISCAL IMPACT:
CIP: N/A
Refuse carts are expensed to the Operating Supplies account listed below. A total of $142,500 is budgeted for refuse carts and repair parts in 2024. The requested award of $142,500 is within the budgeted amount for this expense. Revenues associated with the sale of the carts are also budgeted in the General Fund.
|
Account Number |
Fund Description |
Total Budget Amount |
|
31101100-541407 |
General Fund |
$312,500 |