Memorandum 10-57 Award of Contract for Junk Car Disposal

MEMORANDUM 10-57

TO: Members, of the Homer City Council
THROUGH: Walt Wrede, City Manager
FROM: Rick Abboud, City Planner
Dotti Harness-Foster, Planning Technician
MEETING: April 12, 2010

SUBJECT: Resolution 10-35, Awarding a $15,000.00 contract to Moore & Moore Services, Inc. for the disposal of junk cars

On February 22, 2010, the City Council approved Ordinance 2010-08(A) allocating $15,000.00 for the disposal of junk cars.

It was conceived that this program would create a market of scale which would drive down the cost of disposal preparation so the money used could dispose of more vehicle than could individual citizens.

Initially, the City’s Planning and Zoning Office estimated the cost of removing fluids to be approximately $150.00 per vehicle. To our disappointment, the responsive bids came in higher, at $250.00 per vehicle dropped off on site. At this price approximately 60 vehicles will be disposed of versus the 100 initially estimated. Another more expensive option was offered that would cost $300.00 per vehicle which would include a tow from the site of the vehicle. At this time, we propose accepting the cost of $250.00 per vehicle and, if requested, the contractor will charge $50.00 to have the vehicle picked up onsite.

Eliminating junk cars removes the potential environmental hazard while improving the visual impression of our community. Based on this, the Planning and Zoning Office feels this is a worthwhile project and will evaluate and report back to the City Council the merits of the program.

Att: Resolution 10-35