Title
Resolution to Approve a Five-Year Contract Extension with Waste Management of Michigan for Landfill Disposal Services ($770,000.00)
Memorandum
The attached resolution approves a five-year contract extension with Waste Management of Michigan (WMM) for the disposal of the City of Ann Arbor’s non-recoverable solid waste at the Woodland Meadows Landfill in Wayne, Michigan. City Council approved a five-year contract with WMM in June 2002, allowing for two additional five-year renewals under the same terms and conditions. In 2007, City Council approved the first five-year renewal of this contract.
WMM established a year 1 base price for landfill disposal of $10.17 for years one and two of the agreement, with a 2.3% annual escalator thereafter. Waste Management’s prices were 13% lower than the next nearest proposal (Allied Waste). The current five-year renewal expires June 30, 2012 and requires a sixty-day notice by the City Administrator to WMM for renewal. This notice was provided by the City Administrator the week of April 16, 2012.
Following are the years 11 through 15 pricing. Current year pricing (2011/12) is at $12.71/ton. This includes a $.36/ton State fee on all waste entering Michigan landfills and a $.15/ton Wayne County inspection/oversight fee.
Year 11 (2012/13): $12.99/ton
Year 12 (2013/14): $13.28/ton
Year 13 (2014/15): $13.57/ton
Year 14 (2015/16): $13.87/ton
Year 15 (2016/17): $14.18/ton
The City of Ann Arbor delivers approximately 62,000 tons of solid waste to the Woodland Meadows Landfill each year. In addition, the city’s street sweepings and seasonal wastewater treatment sludge and also disposed of at the Woodland Meadows Landfill.
In addition to excellent pricing, Waste Management has provided a safe and reliable site for the disposal of Ann Arbor’s waste. WMM received updated contract compliance on August 2, 2011 and living wage approval on April 16, 2012.
Current funding is available in the approved Operati...
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