Title
Resolution to Amend and Restate the 5-Year General Service Agreement Between Recycle Ann Arbor and the City of Ann Arbor for the Residential Customer Recyclables Collections (estimated $7,392,746.00 as amended) with the Option for one 2-Year Extension (estimated additional $3,193,892.00 as amended) (ITB-4623)
Memorandum
Attached for your approval is a resolution to approve the First Amended and Restated five-year General Services Agreement commencing on July 1, 2021 with Recycle Ann Arbor (RAA) for Residential Customer Recyclables Collections (ITB 4623).
On March 1, 2021 City Council approved Resolution R-21-083 in the estimated amount of $10,083,012.00 (based on the current City residential customer count), including an initial five-year General Service Agreement and one two-year extension option. The amended and restated agreement would increase the compensation to Recycle Ann Arbor for the same term and conditions by five percent above the initial bid price, to $10,586,637.00, to address increased costs for collection vehicles.
Recycle Ann Arbor's cost to acquire collection vehicles to perform the residential customer recycling service has increased since July 2020, when it submitted its initial bid to the City. Recycle Ann Arbor has requested an amendment to increase its initial bid price for ITB 4623 - Residential Recycling by five percent to accommodate the increased vehicle cost. Market factors including the price of steel for collection vehicles, as well as the length of the initial contract negotiation process, contributed to the vehicle price increase. Recycle Ann Arbor has provided the City with documentation that explains the difference in collection vehicle prices between April 2020, when it obtained its initial quote, and February 2021, when it received the final quote prior to City Council approval of Resolution R-21-083 on March 1, 2021.
Recycle Ann Arbor submitted all required Non-Discrimination, Prevailing Wage, Living Wage, and Co...
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