Title
Resolution to Authorize Contract Amendment Number 3 with Recycle Ann Arbor for Adjustment to Compensation per Service Unit ($107,042.00)
Memorandum
The attached resolution approves and authorizes a contract amendment with Recycle Ann Arbor (RAA) for an adjustment to their compensation per service unit. This adjustment is being requested because the current compensation structure was based on projections for the single stream recycling program that have not fully materialized. The current compensation is based on the number of recycle carts serviced, and the total tons recycled. Below are details comparing the single-stream program projections with actual figures:
· Recycle Carts: The number of recycle carts in the field is approximately 9.2% lower than initially projected. The original projections anticipated 32,779 carts being deployed, but the actual number is 29,734 carts. The main reason for this lower than expected figure is that many of the smaller multi-family residential units that were previously using the 11-gallon recycling “totes” are able to share recycle carts, resulting in a smaller number of deployed carts. In addition, it has been discovered that there was inadvertent double-counting of some residential units in the original projections that resulted in an artificially high projection number.
· Recycle Tons Collected: The number of tons projected by the city’s recycling consultant for FY11 was 18,425 tons. The actual number that will have been collected in FY11 will be approximately 10,800 tons, a 40% shortfall. The main reason for this shortfall is that the projections were based on per-household generation rates provided by RecycleBank that were from communities that had a much larger percentage of single-family homes than Ann Arbor (which has almost 50% multi-family). On the positive side, the actual ton collected is still a 20% increase over the number of tons that were collected in the previous year.
The financi...
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