Title
Resolution to Appropriate Funds and Approve Purchase of Two Clark C30 Forklifts for City Materials Recovery Facility (MRF) from Fraza Forklifts ($55,268.00) (8 Votes Required)
Memorandum
The City owns a materials recovery facility (MRF) that is operated by FCR LLC d/b/a RRS, Inc. (FCR), which is in the nineteenth 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. The attached resolution appropriates funds for the purchase of two new Clark forklifts for operations at the MRF.
The existing two forklifts at the MRF are being rented for $2,000.00 per month, or $12,000.00 per year for each forklift. The purchase cost will be covered by savings in rental charges in 2.3 years. The expected life of the new forklifts is three to five years. Purchasing the units will result in the elimination of these rental charges.
FCR obtained three quotes for forklifts, shown as follows:
* Toyota 8FDU32 (Bell Forklift): $35,887.00 each
* Cat 2PD60004-D (Fraza Forklift): $31,931.00 each
* Clark C30 (Fraza Forklift): $27,634.00 each
FCR recommends purchase of the Clark C30 forklift, which is the low bid. They are familiar with the unit, and are confident that it will perform the job at the MRF in a satisfactory manner.
Funding for the forklifts will be provided through the MRF Capitalized Renewal and Replacement account, which as of December 31, 2013 had a balance of $228,595.20. The MRF Capitalized Renewal and 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.
Staff
Prepared by: Tom McMurtrie, Systems Planning Unit
Reviewed by: Matthew J. Kulhanek, Fleet & Facility Manager
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