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 co...
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