Title
Resolution to Authorize a Commercial Solid Waste Collection Contract with Waste Management of Michigan (not to exceed $900,000.00 annually)
Memorandum
The attached resolution approves and authorizes a contract for Commercial Refuse Collection Services with Waste Management of Michigan as part of the steps required for carrying out the “Commercial Recycling Implementation Recommendations” prepared by the Commercial Recycling Implementation Committee of the Environmental Commission. Preparation was requested by City Council on July 2, 2007. Recommendations were received and approved by City Council on January 5, 2009. Target date for implementation is July 1, 2009.
The Waste Management agreement has an initial term of five years, with two renewal options of three and two years respectively, for a possible total of ten years. Approval of the agreement at this time will provide approximately four and one-half months for Waste Management to prepare for this July 1, 2009 service transition.
During both the initial five year term and the extensions, continuation is subject to the appropriation of sufficient funds in the budget.
Benefits of a franchised waste hauler in the commercial sector include cost savings for businesses, improved customer service, reduced truck traffic, noise and wear and tear on city streets and alleys, improved contractor accountability and waste container pricing intended to create positive economic incentives for maximum recycling. The City will be billing the commercial sector for service received from Waste Management and in turn, will be paying Waste Management approximately $900,000.00/year for services provided.
As part of the waste franchise transition, existing commercial (non-residential) accounts currently serviced by the city of Ann Arbor crews will, instead, be serviced by Waste Management. This includes 310 billable dumpsters (currently receiving weekly service at a subsidized $39/month) and 61 non-profit locatio...
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