Title
Resolution to Authorize the Purchase of a 2024 Caterpillar Electric Forklift from Fraza Forklift and to Appropriate Capital Contribution to the Fleet and Facilities Fund Operations and Maintenance Budget (Sourcewell Bid - $79,419.86) (8 Votes Required)
Memorandum
The attached resolution authorizes the purchase of one 2024 Caterpillar model 2EP8000 electric forklift at a cost of $79,419.86 through the Sourcewell cooperative purchasing program (contract #091520-MCF) for use by the Public Services Area, Wastewater Treatment Plant.
The forklift is used by the Wastewater Treatment Plant to lift a variety of heavy materials and equipment around the facility.
The proposed unit is a fully electric forklift which is consistent with the City’s Green Fleets Policy and A2Zero Climate Action Plan. This unit will replace asset #2927, a 1988 Kalmar KC 30 diesel forklift that is beyond its useful life based on its age and condition.
Mitsubishi Caterpillar Forklift America, the manufacturer of the Caterpillar brand, was awarded contract number 091520-MCF by the Sourcewell cooperative purchasing program for forklift and lift truck equipment. Fraza Forklift, Canton, Michigan, is the local dealer of record of Caterpillar forklifts for Mitsubishi Caterpillar Forklift America. The City’s purchasing unit has reviewed the Sourcewell cooperative purchasing program and found that it meets the requirements of the City of Ann Arbor for competitive and fair purchasing.
Fraza Forklift complies with the requirements of the City’s Conflict of Interest and Non-Discrimination ordinances.
Budget/Fiscal Impact: The City has been awarded a $57,326.00 Fuel Transformation Program grant through the State of Michigan Office of Environment, Great Lakes, and Energy towards the purchase of this vehicle. The grant will fund up to 70% of the total project cost for the replacement of eligible diesel vehicles with clean alternative powered vehicles. The grant is a reimbursement grant with funding made to the City upon receiving the new forklift and decommissioning the old diesel unit.
The Wastewater Treatment Plant will fund the purchase of the new forklift and has made a onetime transfer of $79,419.86 to the Fleet Services Fund Operations and Maintenance budget to cover this purchase. Once received, the grant funds will be reimbursed to the Wastewater Treatment Plant budget.
The transfer from sewer fund has been received as capital contribution revenue in the FY2024 Fleet Services Fund Operations and Maintenance budget. With appropriation of this revenue to the expenditure budget, adequate funding for the purchase of this forklift is available in the FY2024 Fleet Services Fund Operations and Maintenance budget.
This forklift will be placed on a 15-year replacement schedule and the Wastewater Treatment Plant will have an annual replacement cost of approximately $7,424.00 for this forklift.
Green Fleet Policy: The Green Fleet Committee approved the need for the replacement of this vehicle, that the proposed replacement is consistent with the Green Fleet Policy and recommended the approval of this resolution. The Sustainability and Innovations Manager has concurred with the actions of the Committee.
Staff
Prepared by: CJ Stegink, Fleet Supervisor
Matthew J. Kulhanek, Fleet and Facility Unit Manager
Reviewed by: John Fournier, Deputy City Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, The Fleet and Facilities Unit needs to purchase a replacement forklift for the City’s fleet;
Whereas, Competitive bids were received by the Sourcewell cooperative purchasing program;
Whereas, Mitsubishi Caterpillar Forklift America was awarded contract #091520-MCF for forklift and lift truck equipment and Fraza Forklift of Canton MI is the local Caterpillar forklift dealer of record for Mitsubishi Caterpillar Forklift America;
Whereas, Fraza Forklift complies with the requirements of the City’s Conflict of Interest and Non-Discrimination ordinances; and
Whereas, Upon appropriation of the capital contribution made for this forklift, adequate funding for this purchase is available in the FY2024 Fleet Services Fund Operations and Maintenance budget;
RESOLVED, That the City Council approves the issuance of a purchase order to Fraza Forklift, for one 2024 Caterpillar model 2EP8000 electric forklift for a total amount of $79,419.86;
RESOLVED, That $79,419.86 be appropriated to the FY2024 Fleet Services Fund expenditure budget with the source of revenue being capital contributions received for the purchase of this forklift;
RESOLVED, That funds for the purchase of this forklift in the amount of $79,419.86 comes from the FY2024 Fleet Services Fund Operations and Maintenance budget with funds to be available without regard to fiscal year;
RESOLVED, That the equipment being replaced (no. 2927) be decommissioned per the grant requirements and sent to a metal scrapper; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution.