1994 AGN OCT 04 I09 - Laserfiche WebLink

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CITY OF COLTON AGENDA REPORT For Council Meeting of— October 41 99_4 TO: Honorable Mayor and City Council FROM: Robert A. Lavin, Water Utilities Manager SUBJECT: Date Approval of Transfer Costs from OMI to the City for the Wastewater Treatment Plant BACKGROUND: In 1989 OMI's proposal for operating the City's Wastewater Treatment Plant included a cost to purchase a vactor truck. The proposal price was $55,000, and the terms of the contract stated that the vactor truck would become the property of the City of Colton at the end of the five year contract (1994). DISCUSSION: The City of Colton's position regarding the vactor truck has been that it belongs to the City at the end of the five year contract. OMI's position is that the vactor truck was amortized over a ten year period, and that the City owes the amount remaining on the payments. OMI has now been able to demonstrate that they purchased the vactor truck at a cost of $161,093.73, which is substantially more than the proposal amount of $55,000. It has been agreed to by both parties, to pay OMI the principle cost of the vactor truck less the amount already paid. The amount remaining is $34,784.32. There are several miscellaneous items belonging to OMI, which the City would like to retain, which will lessen the cost to purchase new items. The following are the terms agreed to: 1. The repair rebate to the City listed in Contract Amendment No. 5, Section 2.15 is $18,750.00 OMI will not rebate this amount to the City, and apply it to the amount remaining on the vactor truck. The difference from the repair rebate ($16,034.32) will need to come from the Wastewater Budget, Capital Equipment. 2. The items to be purchased from OMI total $20,000. The existing OMI purchase order had funds set aside for emergency repairs, which may be utilized to purchase the required items. Attachments: Page 1 of___ — Item No.