Title
Resolution to Approve Purchase of a New Forklift ($28,978.58) and Installment Lease/Purchase Agreement with Deere Credit, Inc., for a New Loader at the City Materials Recovery Facility/Waste Transfer Station ($173,500.00; $37,858.88/year)
Memorandum
The attached resolution authorizes the purchase of a new forklift and an installment lease/purchase of a new loader for use at the city-owned materials recovery facility (MRF) and waste transfer station. The City is making the purchases, but the City's MRF/transfer station operator, FCR Inc., will be making the payments for these purchases and will be reimbursed pursuant to the operating contract between the City and FCR Inc. Funding for the forklift and loader will be provided through the MRF Capital Replacement account of the Solid Waste Fund, which has a current balance of approximately $265,000.00. The Replacement account is controlled by the City and funded by ongoing contributions from both the city and FCR Inc.
The City's contract with FCR Inc. (Section 2:10) allows FCR Inc. to be reimbursed for the repair (over $4,000.00) or replacement of equipment and rolling stock identified in Schedule 9 of the agreement, which includes the forklift and loader. Schedule 9 anticipated the replacement of the forklift in 2005/06 and the loader in 2007/08.
FCR Inc. received quotations from three vendors for a new forklift as follows:
Hyster H60FT (Great Lakes): $24,806.25
Nissan PFD 60 (Michigan Industrial): $27,820.03
CAT P6000-D (Fraza): $28,978.58
FCR Inc. has recommended the CAT forklift, even though it is $4,172.00 more expensive than the lowest bid, Hyster. The CAT forklift offers a two-year unlimited hours warranty that the other units do not include. The CAT dealer also guarantees that all parts will be available within 24 hours or they are free. The other vendors do not offer this protection. Finally, the CAT forklift includes a dust control packag...
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