Title
Resolution to Approve the Eleventh Amended and Restated General Services Agreement Between Recycle Ann Arbor and the City of Ann Arbor for Multi-Family and Commercial Recycling Collection Services for an Extension of Two Years with Annual Increases for Inflation Every July 1st (limited to the percentage change in the Consumer Price Index (CPI) for the previous contract year, or 6%, whichever is less), (not-to-exceed $1,413,617.16 for FY27 and 1,498,434.24 for FY28; estimated total do-not-exceed cost of $2,912,051.40 for two years of the Contract)
Memorandum
Attached for your consideration is a resolution to approve the Eleventh Amended and Restated General Services Agreement Between Recycle Ann Arbor (RAA) and the City of Ann Arbor for Multi-Family and Commercial Recycling Collection Services for a two-year duration (from July 1, 2026 to June 30, 2028). This Contract allows for annual increases for inflation. Adjustment for inflation shall be limited to the percentage change in the Midwest Region Consumer Price Index (CPI) for the previous twelve-month time period (ending May 31st), or 6%, whichever is less. RAA’s current compensation for Multi-Family and Commercial Recycling Collection Services is $111,133.42 per month. On June 10, 2026, the United States Bureau of Labor Statistics will release the Consumer Price Index for all Urban Consumers in the Midwest Region for the preceding twelve months ending in May. If this CPI is less than 6%, then that CPI will be used to increase RAA’s monthly compensation for FY27 (July 1, 2026 to June 30, 2027). Otherwise, 6% will be used to increase monthly compensation. On July 1, 2027, RAA’s monthly fixed cost shall once again be adjusted for inflation. Once the conversion of three thousand (3,000) weekly cart tips to dumpster collection has been completed, the monthly fixed cost shall be reduced by $10,000. The total estimated Contract amount is $2,912,051.40.
On December 15, 2003, City Council approved a ten-year contract with RAA for collection of recyclable materials throughout the City by approving Resolution R-517-12-03. On May 13, 2010, this contract was extended for an additional five years until June 30, 2018, as part of Amendment 2 which was approved by Resolution R-10-071. On June 29, 2018, this contract was extended one additional year until June 30, 2019, by the approval of Resolution R-18-218. On June 24, 2019, the contract was extended through June 30, 2020, with a City option to extend through June 30, 2021, by the approval of Resolution R-19-256. On June 30, 2021, the contract was extended through December 31, 2022, with a mutual option to extend through December 31, 2023, by the approval of Resolution R-21-247. On December 19, 2023, the contract was extended for a two-month period through February 28, 2023, by the approval of Resolution R-22-402. Finally, on March 22, 2023, the contract was extended for a three-year and four-month period through June 30, 2026, by the approval of Resolution R-23-076.
Under this proposed Eleventh Amended and Restated Agreement, RAA will continue to collect recycling from the accounts currently serviced under this Agreement in the City with curb carts. These accounts include multi-family homes of eleven units or greater, commercial establishments, mixed unit buildings, and civic units (for example, municipal parks) where curb carts are appropriate. This Contract is based on a fixed monthly fee.
RAA provides their own collection truck fleet for these services (several automated side load trucks and one smaller rear load truck for parks collection). The City does not provide collection trucks, fuel, repair, or maintenance of RAA’s recycling trucks.
The City will continue to provide recycling carts for customers’ use. In addition, the City will continue to provide recycling collection services for all accounts serviced with recycling dumpsters and pedestrian cans.
RAA is a non-profit based in Ann Arbor, MI with a mission to develop and operate innovative reuse, recycling, and zero-waste programs that improve the environmental quality of our community. In addition to recycling collection services, RAA also provides recycling processing to the City of Ann Arbor. RAA has been a key community partner in the establishment, growth, and success of the City’s recycling programs.
This General Services Agreement has been Amended and Restated because there are ten amendments to the original 2003 Agreement spanning a 23-year period of time and so the Agreement became difficult to follow and contained many incorrect references. A Restated Agreement needed to be drafted in order to clearly outline each party’s obligations and in order to comply with the legal requirements in all current City of Ann Arbor General Services Agreements.
RAA complies with the City’s Non-Discrimination and Living Wage ordinances.
Budget and Fiscal Impact: Total estimated contract costs for FY27 and FY28, based on the current Customer List will be an amount not-to-exceed $2,912,051.40.
The funding for the services provided by this contract are available in the approved FY27 Solid Waste Operations and Maintenance Budget and will be subject to funding approval by City Council for FY28.
Staff
Prepared by: Tom Oldakowski, Contract Specialist
Reviewed by: Sarah Mason, Solid Waste Manager
Reviewed by: Jordan Roberts, Public Services Area Administrator
Approved by: Milton Dohoney, Jr., City Administrator
Body
Whereas, On December 15, 2003, City Council approved a ten-year contract with RAA for collection of recyclable materials throughout the City by approving Resolution R-517-12-03. On May 13, 2010, this contract was extended for an additional five years until June 30, 2018, as part of Amendment 2 which was approved by Resolution R-10-071. On June 29, 2018, this contract was extended one additional year until June 30, 2019, by the approval of Resolution R-18-218. On June 24, 2019, the contract was extended through June 30, 2020, with a City option to extend through June 30, 2021, by the approval of Resolution R-19-256. On June 30, 2021, the contract was extended through December 31, 2022, with a mutual option to extend through December 31, 2023, by the approval of Resolution R-21-247. On December 19, 2023, the contract was extended for a two-month period through February 28, 2023, by the approval of Resolution R-22-402. On March 22, 2023, the contract was extended for a three-year and four-month period through June 30, 2026, by the approval of Resolution R-23-076;
Whereas, The term for this Amendment is two years, commencing on July 1, 2026 and ending on June 30, 2028;
Whereas, This Agreement does provide for a fixed monthly rate, adjusted annually every July 1st for inflation;
Whereas, The City seeks to have RAA continue to collect recycling from the accounts currently serviced in the City listed in Attachment I: Curb Cart Recycle Customers under an extension of the 2003 Service Contract for Municipal Resource Recovery Services;
Whereas, The accounts serviced by RAA under this Agreement include multi-family homes of eleven units or greater, commercial establishments, mixed unit buildings, and civic units (for example, municipal parks) where curb carts are appropriate;
Whereas, The City will continue to provide recycling collection services for all accounts serviced with recycling dumpsters and pedestrian cans;
Whereas, RAA will provide their own collection truck fleet for these services, as well as fuel, repair, or maintenance of collection trucks;
Whereas, The City will continue to provide recycling carts for customers’ use;
Whereas, Some locations will be converted to recycle dumpsters instead of curb carts, and some locations will remain on curb cart service;
Whereas, Once the conversion of three thousand (3,000) weekly cart tips to dumpster collection has been completed, the monthly fixed cost shall be reduced by $10,000;
Whereas, This General Services Agreement has been Amended and Restated because there are ten amendments to the original 2003 Agreement spanning a 23-year period of time and so the Agreement became difficult to follow and contained many incorrect references;
Whereas, A Restated Agreement needed to be drafted in order to clearly outline each party’s obligations and in order to comply with the legal requirements in all current City of Ann Arbor General Services Agreements;
Whereas, RAA complies with the City’s Non-Discrimination and Living Wage ordinances; and
Whereas, The funding for Eleventh Amended and Restated Agreement is available in the approved FY27 Solid Waste Operations and Maintenance Budget;
RESOLVED, That City Council approve this Eleventh Amended and Restated General Services Agreement Between Recycle Ann Arbor and the City of Ann Arbor for Multi-Family and Commercial Recycling Collection Services to provide for an additional two-year period with annual increases for inflation every July 1st (limited to the percentage change in the Consumer Price Index (CPI) for the previous contract year, or 6%, whichever is less);
RESOLVED, That the Mayor and City Clerk be authorized and directed to execute the Amendment after approval as to substance by the City Administrator and approval as to form by the City Attorney; and
RESOLVED, That the City Administrator be authorized to take the necessary administrative actions to implement this resolution.