Title
Resolution to Appropriate Funds ($1,428,620.00) and Approve Purchase with Toter, Inc. for 33,000 Recycling Carts ($1,428,620.00) (8 Votes Required)
Memorandum
The attached resolution authorizes and approves the purchase of 33,000 recycling carts from Toter, Inc. These carts will be used as part of the new single stream recycling program, and will be distributed to residents and businesses starting July 1, 2010.
The following resolutions are being submitted to Council as part of the single stream program:
· Contract amendment with FCR for MRF upgrades (passed 11-5-09)
· Purchase of four automated recycling trucks
· Purchase of 33,000 Toter recycling carts
· Contract amendment with Recycle Ann Arbor
· Contract with RecycleBank
Each of the recycling carts will be equipped with an RFID (Radio Frequency Identification) tag, which will allow the carts to be tracked for participation by equipment on the new recycling trucks. This information will be used as part of the RecycleBank incentive program.
Individual single-family homes will each receive one 64-gallon cart, with the option to upgrade to one 96-gallon cart if they need the extra capacity. Homes with disabled or elderly residents will have the option to select a 32-gallon cart if they desire. Multi-family units and businesses will receive 96-gallon carts.
The carts will be colored bright blue and will have color decals on the lids identifying the materials that can be placed inside the carts. The carts will be manufactured with a minimum 25% recycled material.
The Toter recycling carts are being purchased through the National Intergovernmental Purchasing Alliance Company (National IPA). The National IPA contract is based on the City of Tucson, AZ. The City of Tucson has publicly solicited and awarded an agreement for Refuse Containers to Toter. This cooperative purchasing agreement (Contract #083008) is available to public agencies and non-profit entities nationwide. The National IPA price is the lowest price that Toter can offer per contract agreement.
Toter is the cart that has been used by the city for the refuse carts collected by our automated collection trucks. Field crews have been extremely satisfied with the durability of the Toter carts and their ease of use. The Toters are produced through a process called rotational molding and have a rough outside surface, which makes them easier to pick up with the automated arms. The rotational molding also produces a more flexible cart, which results in less cracking, particularly in cold weather.
Because Toter is the only major manufacturer of rotational molded carts, staff recommended not bidding the carts out and instead using the National IPA contract pricing. The National IPA has been used previously by the city's Procurement Unit as a way of obtaining competitive pricing.
In addition to the benefits mentioned above, using Toter for the recycling carts will also save the city money by reducing spare parts cost in using the same manufacturer as is currently used for 75% of the city's carts. The city has approximately 35,000 Toter carts in use out of a total of 45,000 city carts currently in deployment.
The attached spreadsheet (Toter Cart Resolution - Attachment) shows the cost breakdown and totals. The unit cost includes delivery to individual households. It is estimated that the city will purchase 26,000 sixty-four gallon carts, 6,500 ninety-six gallon carts, and 500 thirty-two gallon carts.
In addition to the purchase and delivery for new carts, the proposal also includes a $3.25 per cart charge for pickup of about 2,000 older carts that are currently at existing businesses and multi-family units. These carts will be recycled or reused at other locations.
Funding for the carts was anticipated in the FY2010-FY2015 Capital Improvements Plan (CIP), for FY 2011. However, for program implementation the carts need to be purchased ahead of that projected schedule. Funding for the cart purchase in the amount of $1,428,620.00 is available in the Solid Waste Fund Balance and needs to be appropriated to the FY2010 Solid Waste Capital Budget for this cart purchase.
Staff
Prepared by: Tom McMurtrie, Systems Planning Unit
Reviewed by: Sue F. McCormick, Public Services Administrator
Approved by: Roger W. Fraser, City Administrator
Body
Whereas, Implementation of the single stream recycling system provides a number of benefits to the City, including a cleaner community, reduced carbon footprint, greater operating efficiencies, overall increases in recycling and rewards to City's residents for recycling;
Whereas, City Council previously authorized a contract amendment with FCR that included funding for single stream equipment upgrades to the City's Material Recovery Facilty (MRF);
Whereas, The business case justification documents savings to the City by implementing a single stream program;
Whereas, The purchase of the recycling carts are a key element in the implementation of the single stream program and are key to realize projected savings;
Whereas, Funding for the carts was anticipated in the FY2010-FY2015 Capital Improvements Plan (CIP), for FY 2011;
Whereas, The carts will be purchased ahead of the projected schedule as necessary for program implementation;
Whereas, Funding for the cart purchase will be from the Solid Waste fund balance; and
Whereas, FCR received HR and Living Wage approval on April 14, 2009;
RESOLVED, That $1,428,620.00 be appropriated from the Solid Waste Fund Balance to the FY2010 Solid Waste Capital Budget;
RESOLVED, That the City Administrator be authorized to enter into a purchasing agreement in the amount of $1,428,620.00 to be issued to Toter, Inc. for the purchase of 33,000 recycling carts;
RESOLVED, That the funds are to be available without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.