Title
Resolution to Appropriate Funds and Reimburse FCR LLC for Capital Expenditures at the Materials Recovery Facility ($26,678.88) (8 Votes Required)
Memorandum
The city owns a materials recovery facility (MRF) that is operated by FCR LLC dba RRS Inc. (“FCR”), which is in the sixteenth 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 at the facility.
The attached resolution appropriates funds and reimburses FCR for the cost of replacement molded rubber tires for the current John Deere 544 Loader leased by the City of Ann Arbor and reimbursed out of the MRF Capitalized Renewal and Replacement Account.
The following vendors provided prices for four molded rubber tires for the John Deere 544 loader:
HPS $25,734.44
Setco $26,024.12
Brawler $26,678.88
Main Industrial Tire $26,746.00
Tiremax $28,796.00
FCR is recommending the Brawler tire due to the fact that they have had better experience with the longevity of that tire compared with the other brands. The current tires on the loader are close to failure, which would cause the loader to be inoperable.
Funding for these items will be provided through the Solid Waste Fund’s Capital Renewal and Replacement account, which has a balance of $311,905.47 as of April 30, 2012. The Replacement account is controlled by the city and is funded by way of ongoing contributions from both the city and FCR through a calculation method established in the contract.
The city’s current operating contract with FCR is set to expire in September 2021.
Staff
Prepared by: Tom McMurtrie, Systems Planning Unit
Reviewed by: Matthew J. Kulhanek, Fleet & Facility Manager
Craig Hupy, Interim Public Services Administrator
Approved by: Steven D. Powers, City Adminis...
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