Title
Resolution to Appropriate Funds and Reimburse FCR LLC d/b/a RRS, Inc. for Capital Repair of Magnet at the Material Recovery Facility ($94,788.00) (8 Votes Required)
Memorandum
The city owns a materials recovery facility (MRF) that is operated by FCR LLC d/b/a RRS, Inc. ("RRS"), under the terms of a twenty-six year agreement, now in the sixteen year, to operate and maintain the Material Recovery Facility (MRF) on behalf of the city. A jointly funded MRF Capitalized Renewal and Replacement Account exist within the Solid Waste Enterprise Fund to finance capital renewals and replacements as needed. The attached resolution appropriates funds and reimburses RRS for the cost of repairs described below.
BACKGROUND
In early February 2011, the MRF experienced the failure of the metal separation electromagnet that had been installed in the new single stream system. During the single stream construction process, RRS had evaluated ways to save dollars for the single stream conversion. One of the savings had been to use an existing electromagnet from the old sorting system.
RRS had performed many evaluation procedures on the magnet prior to installing it on the single stream system. After installation in the new single stream system, the electromagnet developed an oil leak from a fracture of one of the welds located in a lower corner of the magnet housing. This leak was not visible during testing and evaluation of the magnet. Once the magnet was installed and operational, heating from extended use caused the fracture within one of the welds to open, releasing oil and leading to a failure.
The failure of this magnet resulted in RRS having to implement expensive and very time-consuming hand-sorting of the steel off of the conveyor. The company had to move quickly to replace the magnet.
The placement of the magnet on the sorting line required the removal and replacement of a roof section and the use of a heavy crane. Because of Michigan road restrict...
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