Title
Resolution to Approve a Services Agreement and Land and Building Lease with Recycle Ann Arbor (RAA) for Materials Recovery Facility (MRF) Transloading, Re-Equipping and Recyclables Processing (10-Year term, with two Potential 3-Year Extensions)
Memorandum
Attached for your approval is a resolution to approve a Services Agreement and Land and Building Lease ("Lease") with Recycle Ann Arbor (RAA). The Lease will allow RAA to occupy and use the City's MRF building which it will use for providing materials recovery services to the City. Under the Services Agreement RAA will provide these services by initially continuing to transload the City's recyclables for processing in Oakland County while it redevelops the building as a functioning MRF, at its own expense, by removing the obsolete processing equipment and re-equipping and installing updated recyclables processing equipment in the building, and then transitioning to processing the City's recyclables materials on-site at the MRF. The Services Agreement and Lease are each for an initial concurrent 10-year term which includes the initial transloading and re-equipping phases, with two potential 3-year extensions.
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.
Ann Arbor has historically provided local processing capacity for recyclables collected from residences and businesses, as well as outside third-party materials. However, in 2016, the City ceased processing operations at the MRF because the City's contracted vendor was not providing or maintaining a safe work environment or equipment condition. RAA currently operates the City's MRF structure as a materials transfer station and transports the City's recyclable materials for processing at a MRF in Cincinnati, Ohio. The City's existing contract with RAA for Recyclables Processing expired on June 30, 2020, and...
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