Title
Resolution to Approve Contract With WeCare Organics for Operating the Ann Arbor
Compost Facility (not to exceed $200,000.00 annually)
Memorandum
The City owns a 26 acre
composting facility located at the Wheeler Service Center, which it has been operating since 1990. The facility has played a significant role in reducing the amount of solid waste that is sent to landfills, providing savings in tip fees and environmental benefits such as a locally produced
compost product and a reduced carbon footprint.
The
compost facility has been operated with city staff since its inception. The operation has won awards and has generally produced a very high quality product. Operating costs for the facility are shown in Attachment A. When evaluated on a per-ton basis, these costs are high compared with industry standards.
Recognizing that there might be an opportunity for another private-public partnership, staff issued RFP 730 in May 2009 for
compost operations. Public-private partnerships have been very successful in other city operations, such as operating the City’s Material Recovery Facility (contracted with FCR), as well as providing curbside recycling collection (contracted with Recycle Ann Arbor).
Four proposals were received in response to RFP 730. The selection committee chose St. Louis
Composting as the finalist, and began negotiations with them. However, towards the end of the negotiations St. Louis
Composting asked that their proposal be withdrawn due to weakened markets for finished
compost and their failure to negotiate incoming merchant tonnages. The selection committee agreed to withdraw the proposal on May 4, 2010. Because of the time that had elapsed, staff chose to re-issue the RFP instead of beginning negotiations with another proposer from RFP 730.
On July 6, 2010, staff issued RFP 730A for
compost operations. Three proposals were received in response to this RFP:
· Spurt Industries (Zeeland, MI)
· New England Organics (Port...
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