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Regular City Council Meeting Monday,June 17,2013 Page 22 eraged a ten-year lifecycle, with some manufactures actually offering a ten year guarantee on their carts. Councilmember McGehee opined that if a vendor required a cart that worked with its equipment, and was required to maintain it, and at the end of the contract was required to give it to the City, but still had based its bid on that built-in cost for the cart, how could that be considered a transparent process. Councilmember McGehee stated that she much preferred to not have City ownership of the cart and let each vendor come in with their new carts, and if not the next vendor, to pick them up. Mr. Pratt clarified that in some cities that happened, but currently there was a cost savings seen for a city to own the cart, and if another vendor came in they would factor in the cost of the cart. As an example, Mr. Pratt reviewed the history of the City of Brooklyn Park when they moved to single sort in 2002/2003, with the City buying carts, and after five years, uncertain of how this would play out. When the City went out for bids the second time, they thought vendors would drop their bids to reflect that they didn't' have to purchase and provide carts; however, it was found that all bids included the cost of purchasing carts, with vendors under the impression that they didn't need to provide those cost savings to the City, but needed their bid to come in at a certain rate. Mr. Pratt advised that similar exam- ples of prices actually increasing were available from other communities. Mr. Pratt advised that it was staff's belief that if the City owns the carts, they will see a cost-savings long-term for Roseville residents for second and subsequent con- tracts. At the request of Councilmember McGehee, staff estimated the upfront cost for cart purchase at $45 to $60 each to be $500,000 to $700,000. Mayor Roe noted that the proposal provided that the cost get built in and amor- tized into the contract. As to how the City could fund the purchase, Mr. Pratt, in consultation with Fi- nance Director Chris Miller, suggested a small internal loan amortized over five years in addition to using available recycling funds. At the request of Councilmember Etten, Mr. Schwartz advised that it was the in- tent to make it part of the contract, that whoever owns the carts, the vendor would be responsible for their maintenance and storage, and to roll-out carts, since the City had neither the staff nor storage space to do so. Mr. Schwartz confirmed that it would be the vendor's responsibility to replace and pick up damaged carts. Councilmember Willmus opined that he would like to see the draft RFP come back with cost differentials included; with Mr. Pratt responding that this was the