Title
Resolution to Approve Installment Lease/Purchase Agreement with Deere Credit, Inc., for a New Loader at the City Materials Recovery Facility/Waste Transfer Station ($211,602.30; $21,260.13/ 6 months) and Appropriate Funds (8 Votes Required)
Memorandum
The City owns a materials recovery facility (MRF) that is operated by ReCommunity LLC d/b/a RRS, Inc., which is in the seventeenth year of a twenty-six year agreement with the City to operate and maintain the MRF on behalf of the City. A jointly funded MRF Capitalized Renewal and Replacement Account exists within the Solid Waste Enterprise Fund to finance capital renewals and replacements as needed. The attached resolution appropriates funds for the lease/purchase of a new John Deere 544K loader.
The existing loader at the Transfer Station is a John Deere 544J, leased new in 2007, which has had 12,124 hours of operation as of November, 2012. ReCommunity believes that the high number of loader hours and the existing work load tonnages will cause the loader to fail in the near future. History at other facilities with similar tonnages has shown that a loader is vulnerable for significant repairs after 12,000 to 14,000 hours of usage. Based on the last maintenance audit performed on the existing loader in May 2012, approximately $18,000.00 - $22,000.00 worth of repairs will be required in the near future to continue operating at its current pace. At the operating rate experienced between May and October 2012 (5,500 tons per month) these repairs would extend the life of the existing loader 4 to 6 months before additional repairs may be required. In addition, the current loader is not optimally efficient at moving glass material at the facility due to its small bucket size.
The City issued ITB 4256 to obtain the most favorable pricing for the loader. The following base bid amounts were received:
· Volvo L60G: $162,842.00
· Volvo L70G: $176,725.00
· Cat 930K: $180,596.00
· Case 621 FXR: ...
Click here for full text