Title
Resolution to Approve Toter Cart Purchases ($65,500.00) and Authorize up to Three Additional Years (not to exceed $131,000.00 per year)
Memorandum
The attached resolution approves and authorizes cart purchases through the end of FY16 from Toter, Inc. The purchase agreement with Toter is based on a long-term agreement between Toter and the Metro Waste Authority of Des Moines, Iowa. The Metro Waste Authority agreement extends through September 20, 2020. It allows the pricing from the agreement to be extended to other governmental entities.
The original Metro Waste Authority Agreement was competitively bid and the current pricing provided in the Metro Waste Authority agreement by an extension dated December 18, 2008, is competitive with Toter carts that are provided by the National Intergovernmental Purchasing Alliance (IPA) agreement, as shown in the chart below. Staff is recommending using the Metro Waste Agreement because the National IPA contract is set to expire.
Because the Metro Waste Authority Agreement does not include all the features that Ann Arbor requires in its carts, Toter has provided a supplemental options pricing for these features. These features include: Radio Frequency Identification (RFID) tags, complete assembly, color labels on the lids, complete assembly, and a 32 gallon cart size. Pricing for these features is included in the chart below.
Ann Arbor currently uses Toter carts for all of its solid waste cart needs (refuse, recycling, and compost carts). The use of the carts and automated trucks has increased collection efficiencies, reduced worker injuries, and provided a more convenient service for residents.
Field crews have been extremely satisfied with the durability of the Toter carts and their ease of use. The Toter carts are produced through a process called rotational molding and have a rough outside surface, which makes them easier to pick up with the automated arms. The rotational molding also produces a more flexible cart, which results in less cracking, particularly in cold weather.
Ann Arbor purchases their Toter carts fully assembled, which reduces labor costs and lost parts. The recycling carts are purchased with full color instruction labels on the lids and RFID (radio frequency identification) tags for tracking purposes.
In addition to the benefits mentioned above, using Toter for a standard cart also saves the city money by reducing spare parts cost. The city currently has about 55,000 Toter carts in circulation.
Staff estimates that up to 1,250 carts will need to be purchased this year and that the following number of carts will be needed per year for the following three years:
· Recycling Carts: 1,500 carts
· Compost Carts: 400 carts
· Refuse Carts: 600 carts
The larger number of recycling carts will be needed for the implementation of the mandatory commercial recycling program, which staff plans to enforce more strictly in the coming years. Most of the compost carts purchased will be for new carts that are purchased by residents for compost and leaf pickup. The refuse carts are eight years old, and it is expected that there will be a larger number of replacements as cart failures increase in the coming years.
Toter received HR Contract Compliance approval on March 15, 2012, and Living Wage approval on April 23, 2012.
Staff
Prepared by: Tom McMurtrie, Systems Planning Unit
Reviewed by: Craig Hupy, Public Services Administrator
Approved by: Steven D. Powers, City Administrator
Body
Whereas, The City of Ann Arbor has realized benefits from the implementation of the cart program for its solid waste collection services, including recycling, refuse, and compost collection;
Whereas, The City of Ann Arbor will be expanding its commercial recycling program in the coming years as the result of the mandatory commercial recycling program that is now in effect;
Whereas, The refuse carts that are now in service throughout Ann Arbor are eight years old, and will begin needing more replacements as they age;
Whereas, An agreement between the Metro Waste Authority of Des Moines, Iowa, and Toter, Inc., provides competitive pricing that other municipalities can use;
Whereas Funds for the new recycling carts are available from the approved Solid Waste Capital Budget;
Whereas Funds for compost and refuse carts are available in the approved FY13 Solid Waste Operations and Maintenance Budget; and
Whereas, Toter received HR Contract Compliance approval on March 15, 2012, and Living Wage approval on April 23, 2012.
RESOLVED, That the City Administrator be authorized to enter into a purchase agreement in the amount of $65,500.00 to be issued to Toter, Inc., for the purchase of up to 1,250 carts;
RESOLVED, That City Council authorize the City Administrator to renew the agreement for up to three additional fiscal years at an amount not to exceed $131,000.00 per year, subject to the annual appropriation of funds in those respective years;
RESOLVED, That pricing for the carts be based on the Metro Waste Authority Agreement Extension dated December 18, 2008, along with a supplemental options pricing list to Ann Arbor dated October 19, 2011; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.