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HomeMy WebLinkAboutAgenda Statement 1973/09/18 Item 07. AGENDA ITEM N0. [ 7 ] CHULA VISTA CITY COUNCIL MEETING OF: September 18~ 1973 ITEM TITLE: Resolution - Approving Extension of Agreement with MAIN5TEM, Inc. INITIATED BY: Director of Public Works/City Engineer BACKGROUND Council Resolution 6177 dated August 24, 1971 authorized the Mayor to execute an agreement between the City of Chula Vista and MAINSTEM, Inc. for automotive equipment management information services. This initial agreement expired on August 31, 1973. It is proposed that the agreement be extended for a one year period starting September 1, 1973 through August 31, 1974, with the following major change in the original contract: Monthly service charge changed from $1.76 per unit to $1.96 per power unit and $0.20 per non-power unit, with each additional unit added to the fleet being charged at the $1.96 and $0.20 respectively. The original contract price was set at $400.00 per month based upon the initial charges and an inventory of 226 vehicles. The number of vehicles has increased by 30 to 256. Although the rate change for power units increases $0.20, the change for non-power units is decreased from $1.76 to $0.20. This rate change was achieved through negotiations with MAINSTEM, Inc. The following is a cost contrast for the ~ new rate system: Old System New 256 units @ $1.76 = $450.56 240 16 ~ ~6 ATTACHED: Resolution [ ~ Ordinance [ ~ity between the old and the System power units @ $1.96 = $470.40 non-power units @ $0.20 = 3.20 _ -0 ] Agreement [ ] Plat [ ] See EXHIBITS ~X] No. 1 Financial Statement: Payment will be made from Fund No. 71 "Central Garage" and Account No. 3290-5201. $6,260.00 was budgeted which will be sufficient for the MAIN5TEM service. Commission-Board Recommendation: N.A. Department Head Recommendation: Approve agreement. City Manager Recommendation: Concur ~o i~