Title
Resolution to Approve Amendment Number 2 to Contract with Waste Management of Michigan, Inc. for Commercial Refuse Collection Services (estimated $1,850,000.00)
Memorandum
Attached for your review and consideration is a resolution to approve an amendment to the City's contract with Waste Management of Michigan, Inc. for Commercial Refuse Collection Services. This amendment will extend the contract for an additional year with an option for one more one-year renewal.
The current contract, as well as two other contracts with Recycle Ann Arbor for recycling collections and recycling processing services, will expire on June 30, 2019. A task included in the Solid Waste Resources Management Plan (SWRMP) project that began in 2018 and is anticipated to be concluded in July, 2019 calls for that project's consultant team to assist City staff in developing a Request for Proposals (RFP) to procure contractor services to replace these expiring contracts.
During the first meeting of the SWRMP Advisory Committee on November 14, 2018, a question was raised by some of the participants as to whether or not this RFP should be delayed until after the SWRMP is completed. Then on December 6, 2018, the Environmental Commission passed a resolution requesting that the City Council have the City Administrator consider not issuing the RFP until the SWRMP process is complete. The City Administrator determined that this RFP process would be delayed until the completion of the SWRMP. This necessitates the extension of the existing contract(s) to allow for these services to continue through FY20 while the replacement contract(s) are procured. This determination was communicated to City Council in a memorandum from the City Administrator dated December 19, 2018, which is attached to this agenda item.
Waste Management has agreed to extend the contract under the current terms, including the annual Price Adjustment of 2.5% to 72% of the pricing, resulting in a 1.8% adjustment to ...
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