After several months of negotiations, Ann Arbor has a new contract with nonprofit Recycle Ann Arbor for curbside collection of the city’s recyclables. “It’s been a contract that has taken quite some time to complete, but we’re very pleased to bring you this contract tonight after a lot of work by both Recycle Ann Arbor and the city,” City Administrator Tom Crawford told City Council Monday night, March 1, before council unanimously OK’d it.
The five-year deal starting July 1 calls for having the local nonprofit continue its role collecting recyclables placed in curbside bins from 28,550 households throughout the city at a cost of $1.3 million the first year, growing to $1.5 million by the fifth year, with the option to extend it two more years. At a cost of just over $1.5 million per year if extended, the contract would total $10 million over seven years, lasting through June 2028, documents show.
Eileen Naples, the city’s resource recovery manager, told council to expect an increase at the next meeting, though. “Due to the length of the contract negotiation and finalization process, and market factors including the price of steel for trucks, RAA’s cost to acquire trucks has increased since bids were received, and the city will submit an amendment to seek approval for an increase in the contract price for the increased truck cost,” she told council in a memo.