HomeMy WebLinkAboutA001 - Resolution waiving Purchasing Policies and Procedures requirement for competitive bids and awarding a contract to Hennen Equipment, Inc., for Resource Recovery primary shredder door replacementITEM #:1
DATE:06-04-25
DEPT:PW
SUBJECT:RESOURCE RECOVERY PRIMARY SHREDDER DOOR REPLACEMENT
COUNCIL ACTION FORM
BACKGROUND:
The City purchased a Komptech Terminator 6000 SEF shredder in 2013 for the Resource
Recovery Plant. The shredder is the primary means of reducing the size of municipal solid
waste (MSW) so that it can be utilized as refuse derived fuel (RDF). MSW is shredded when a
hydraulic rotor spins the shredder. The rotor contains a set of teeth and shredder door
contains another set of teeth in the opposite direction that creates the shredding action.
The current shredder door was last replaced in 2020. It has experienced significant
deterioration in need of replacement. The door is provided only by the original equipment
manufacturer, Komptech USA, which is the single source supplier of this item and will
provide a replacement-in-kind.
The equipment vendor, Hennen Equipment Inc., currently has one available door that is
compatible with the City's shredder unit. This door is located in Denver, CO. If this door
is not able to be purchased by the City, a compatible door would need to be sourced
from Komptech's facilities in Austria. An internationally sourced door will be subject to
significantly higher shipping costs and the potential for tariffs applicable to equipment
that is not domestically sourced.
The vendor is willing to sell the available door to the City, but a financial commitment in the
form of a purchase order is necessary to ensure it remains available. The cost of the
replacement door is $71,317.80 plus a yet to be determined freight cost from Denver
CO. Although the door was planned to be replaced in the FY 2025/26 Capital
Improvements Plan (CIP), the ability to secure the door domestically earlier and avoid
additional costs is in the best fiscal interests of the City.
Funding is available in the FY 2025/26 Resource Recovery System Improvements CIP
program in the amount of $459,000.
ALTERNATIVES:
1. Waive the Purchasing Policies and Procedures requirement for competitive bids, and
award a single source contract to Hennen Equipment, Inc., of Shakopee, MN in the
amount of $71,317.80 plus freight to supply a replacement shredder door.
2. Delay repairs to the shredder door.
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CITY MANAGER'S RECOMMENDED ACTION:
The primary shredder is a critical component of the Resource Recovery Plant
operation. Refuse-derived fuel cannot be produced without a functioning shredder, and
recyclable materials cannot be extracted from the solid waste stream unless the
shredder is operational. The door requires routine replacement and can only be
sourced by the original equipment manufacturer. A door has been located, but a
purchase order is needed to secure it for the City. Delaying this purchase subjects the
City to the risk that a door will need to be sourced internationally, which has the
potential to be significantly costlier. Therefore, it is the recommendation of the City
Manager that the City Council adopt Alternative No. 1, as described above.
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