Title
Resolution to Approve Contract Amendment Number 1 with WeCare Denali LLC for Operation and Management of the City's Compost Facility for a 3-year Contract Extension, with an Option for Two 3-year Renewals (Estimated Cost $953,337.61 for the Initial 3-year Contract Term: $297,795.24 for Year 1, $317,486.86 for Year 2, and $338,055.50 for Year 3)
Memorandum
Attached for your review and approval is a resolution to approve Contract Amendment Number 1 with WeCare Denali LLC. This Amendment is to the Agreement between the City of Ann Arbor and WeCare Denali LLC for Operation and Management of the City of Ann Arbor Compost Facility at 4170 Platt Road. This Agreement is set to expire on January 29, 2023. Amendment Number 1 provides for a three-year contract term, with an option to extend the contract for up to two additional three-year periods.
WeCare Denali LLC, the operator for the City's Compost Facility, has been operating and managing the City's Compost Facility for over ten years. WeCare Denali LLC has been providing the labor, equipment, and materials necessary to operate and maintain the City's Compost Facility, and to market finished compost and mulch materials.
This Amendment provides for an increase in the City's "Yard Waste and Leaves Tip Fee" (from $24.00/ton to $28.00/ton) for the first year of the Contract term. For each additional Contract Year, the annual tipping fees and the City's revenue share credits (Merchant Organics Credit and Compost/Mulch Sales Credit) will be adjusted annually for inflation. This Amendment also outlines a procedure for removing and disposing of contamination found in City loads. This Amendment provides a plan to minimize contamination at the Compost Facility through City-wide education programs such as (1) Visual audits of curbside collections; (2) Curbside compost cart-tagging campaigns; and (3) City-wide messaging programs through established channels (such as direct mail campaigns, educational videos, and communit...
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