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Commissioners debate capping annual cost increases in service contracts
Summary
Board members discussed whether contracts should include a maximum allowable annual increase and the trade-offs between locking multi-year pricing and allowing annual renewal increases; staff argued caps are difficult to set given inflation variability.
A board member proposed that future service contracts include a maximum allowable annual increase and that the county trigger a re-bid if vendors hit that cap. The suggestion came during discussion of a 4% increase for the county's trash contract, which staff said brought the total contract increase to 16% after previous adjustments.
"It'd be kinda hard for us to set a maximum increase," a staff member replied, saying inflationary uncertainty and the risk of overestimating future costs could lead vendors to hedge with higher initial bids. Staff and commissioners discussed the county's prevailing approach: award a one-year firm price with renewal options and allow increases only when substantiated, rather than lock multi-year prices that could be higher upfront.
Commissioners and staff noted past experience during COVID-related price volatility and said the county will weigh whether a future re-bid is warranted if a proposed increase appears excessive. No policy change or cap was adopted at the meeting; the discussion remained advisory to procurement staff as they prepare the next solicitation.
