Title
Resolution to Negotiate an Agreement with Recycle Ann Arbor to Rebuild and Operate the Ann Arbor MRF for an Initial Period of Ten (10) Years (*Title Revised to Reflect Substitute Resolution)
Memorandum
Purpose
Attached for your approval is a resolution to approve a Services Agreement with Emterra Environmental USA Corp. (Emterra) to operate the City's Materials Recovery Facility (MRF) structure as a materials transfer station and processing of the City's recyclable materials at their new MRF facility in Lansing, Michigan. Emterra is in compliance with the requirements of the City's Non-Discrimination and Living Wage ordinances.
Background
Ann Arbor has historically provided local processing capacity for recyclables collected from residents and businesses, as well as outside third-party materials. However, in 2016, the City ceased processing operations at our MRF because our contracted vendor did not have a safe work environment or equipment condition. Since 2016, the MRF has been a transloading operation for the City's collected materials and international, state and regional recycling dynamics have evolved to alter the recycling landscape.
In 2017, the Governor's Recycling Council issued a comprehensive report to push the state to double its recycling rate of 15% through increased education, market development, increased finds, clear performance metrics and implementation of a "hub-and-spoke" processing model where materials are collected in lower density areas and shipped to hi-tech, regional MRFs to achieve economies of scale. In 2018, China effectively banned import of scrap materials, drastically altering the recycling market in states including Michigan. Finally, on a more local level, in December 2019, the County established the Washtenaw Regional Resource Management Authority (WRRMA) - an organization dedicated to improving regional resource management coordination, education and infrastructure. As of November 2019, the City of Ann Arbor is not...
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