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Committee approves Pallet PBC contract amendment to adjust shelter prices, extend term to June 2026
Summary
The committee approved Amendment No. 1 to the city’s Pallet PBC general services contract to account for a price increase and extend the contract through June 30, 2026. Staff said the price increase has already taken effect and that the city used a purchase order (PO) to lock earlier pricing for units ordered; that PO expires June 30.
The Quality of Life Committee approved Amendment No. 1 to the City of Santa Fe general services contract with Pallet PBC to account for price increases and extend the contract term to June 30, 2026.
Staff clarified that the amendment adjusts existing contract terms to reflect price increases Pallet already implemented; it does not expand the Christ Lutheran safe outdoor space. The amendment amount discussed at the meeting was $1,466,100 and the item was described as an adjustment rather than a new procurement.
Julie Sanchez, director, told the committee the caption in the packet had been confusing and confirmed the amendment “is to adjust for price increase, no change in total compensation, and extend the term to 06/30/2026 to provide shelter and facility units.” Sanchez also said, “As the caption reads, it sounds like we are expanding the Christ Lutheran Church, which, for the record, we definitely are not.”
Councilor Miguel Garcia asked for specifics about the price increase and whether the city should let the contract expire or re‑bid. Staff said the price increase took effect in February and was driven in part by tariffs and higher costs for aluminum and other imported materials. City staff said they had executed a PO using prior budget authority to lock in an earlier, lower price for units already ordered; that PO expires on June 30.
Staff told the committee the city is not planning further unit purchases under current funding; the $2,000,000 allocation used the PO to secure previously quoted pricing. Staff said the amendment preserves the city’s flexibility to buy additional Pallet products during the extended term but does not prevent the city from pursuing a separate ITB (invitation to bid) if staff and funding allow.
Committee members noted Pallet’s broader product catalog — laundry, hygiene and shared community units, ADA‑accessible units and project management services — and discussed potential cost‑saving alternatives. Councilor Maria Castro and staff reiterated that the amendment preserves options and does not commit the city to expand the existing Christ Lutheran site.
The motion to approve the amendment passed on roll call: Councilor Castro — yes; Councilor Garcia — yes; Madam chair — yes. Councilor Chavez had left the meeting earlier and Councilor Faulkner was out of the room during that vote.
Councilors asked staff to keep the council informed about the PO expiration, any further vendor price changes, and whether additional procurement would be needed if the city opts to buy more units in the future.
