Title
Resolution to Provide Additional Funding for Recycle Ann Arbor's Municipal Resource Recovery Services (Curbside Recycling) and Appropriate Funds in the Amount of $472,800.00 from the Solid Waste Fund balance. (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve an increase to the purchase order for Recycle Ann Arbor's Municipal Resource Recovery Services (Curbside Recycling) and to appropriate a total of $472,800.00 in funding from the Solid Waste Fund balance.
The Curbside Recycling contract with Recycle Ann Arbor (RAA), which serves single and multi-family units as well as some businesses, has experienced an additional monetary need for truck rental, maintenance and repair costs the City pays RAA to enable RAA to perform its collection operations. Due to the age and condition of the City-provided truck fleet RAA uses for its current operations, the City has experienced increased monthly costs as the fleet trucks age and their condition continues to deteriorate. The City has permanently taken out of service three vehicles, and with extensive repairs and preventative maintenance needed on the remaining fleet, the City had found it necessary to rent four to five vehicles every month at a cost of $8,300.00 per vehicle, per month. The City is contractually obligated to provide RAA with ten vehicles, in addition to paying for all repairs and fuel.
For the Curbside Recycling contract, we estimated a cost increase of 3%, which was similar to previous years, but the average monthly increase is currently trending at 26% from FY19 expenses. We now estimate needing an additional $157,600.00 per month for the remaining months of April, May and June of 2020, for a total of $472,800.00.
Budget/Fiscal Impact: Funding is available in the Solid Waste Enterprise Fund balance.
Staff
Prepared by: Christina Gomes, Solid Waste and Recycling Program Coordinator
Reviewed by: Molly Maciejewski, Public Works Unit Manager
Reviewed...
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