Title
Resolution to Direct the City Administrator to Negotiate the Terms for a Services Agreement with Recycle Ann Arbor for Operation of the Proposed New Ann Arbor Regional Drop-Off Station (DOS)
Memorandum
The attached resolution directs the City Administrator and staff to commence negotiations on the terms for a services agreement with Recycle Ann Arbor (RAA) for operation of the proposed new regional DOS currently being designed, with construction expected in 2024. The proposed new DOS is being built to replace the existing DOS which is structurally unstable. The new DOS will be located on a larger parcel on the Wheeler Center property enabling expanded materials drop-off options, improved customer service and traffic flow.
Concurrent to design and construction, the City must decide on and secure a fiscally sustainable operational services model and contracted site operator all of which are intertwined substantively and as to timing. RAA, a local zero-waste mission-based recycler, has acted as the City's long-time operator of the current DOS site, and, as such, is best suited to continue in that role at the proposed new DOS. RAA has decades of local experience with community-based recycling, and a commitment to the community to provide zero waste services. Because of its unique experience as the City's DOS operator, RAA has relevant financial and operational information and documentation regarding the existing DOS and will be integral to the City efforts to arrive at a financially sustainable operational model for the proposed new DOS that will provide flexibility for regional participation and be consistent with the City's A2Zero Plan and Solid Waste Resources Management Plan. The terms for a services agreement and the operational model it is based on must also take into account additional factors, which Recycle Ann Arbor has experience with such as up-front facility costs, including necessary equipment, machinery, rolling stock, operating costs, revenue ...
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