The City of Ann Arbor has entered into a franchise agreement with Waste Management of Michigan to collect refuse dumpsters and roll-off containers from non-residential locations throughout Ann Arbor.
PROGRAM BACKGROUND
There are several reasons that the city is entering into this franchise agreement:
- Low Costs: Costs for almost everyone will go down. Through the competitive bid process that led up to the franchise, the city was able to leverage all commercial accounts within the city to get rates that would produce cost savings.
- Cost Stability: The franchise contract is a multi-year contract of up to 10 years, with very strict limitations on cost increases. For example, there will be strict limits on what is allowed for fuel escalation
- Service Quality: Waste Management is currently the largest private service provider in the Ann Arbor area. They have been able to accomplish this in part by providing a quality service for their customers. In addition, under the franchise contract, there will be another level of compliance that the company will need to meet in addition to their standard procedures.
- Infrastructure: Implementation of the contract will mean fewer trucks on the road, which will reduce street maintenance costs and degradation, such as potholes.
- Environment: Fewer trucks on the road also means cleaner air.
This franchise program was carefully reviewed by a Commercial Recycling Implementation Committee that was comprised of business members from throughout the community. They were closely involved with the process that led up to the franchise, as well as the development of the rates themselves. The committee recommendations were used by City Council in their evaluation leading up to the approval of the franchise contract and the franchise rates.
The franchise is a program that is enabled by State law. The city ordinance that set up the franchise can be viewed here.
Under the franchise, all non-residential properties that need refuse dumpster service will be required to use the city franchise. The service will be provided by Waste Management, while the quarterly billing will be handled by the city.
TIMELINE AND RATES
This program is being phased in over two years.
Customers that currently have a contract with a private sector hauler will be transitioned to the franchise at the end of their contract or July 1, 2011, whichever comes first. Customers will be billed based on the size of their dumpsters or roll-off containers and the frequency of service. Rates are shown here (opens to a new page).
Special event dumpster rates and service options are here (opens to a new page).
Non-residential customers that currently receive city service will be transitioned to the franchise during a 90-day period starting July 1, 2009. These customers currently own their own dumpsters. The city is evaluating those dumpsters and will make an offer on the dumpsters that it determines to have value for use in the expanded recycling program. Dumpsters that are determined not to have value will be removed at no charge to the customer. These customers are currently receiving a city-subsidized rate for servicing their dumpsters. This rate will gradually be phased-in over several years, as shown here (opens to a new page)
Non-profit customers that are that are classified as 501(c)(3) and are further defined as public charities under 509(a)(2) may qualify for refuse dumpster service at no charge. These types of organization must meet two tests under IRS rules to be given a 509(a)(2) classification. See page 35 of the IRS Non-profit categories attachment (72-page PDF) for a discussion of this type of non-profit. Churches, Educational Organizations (schools or colleges), hospitals, and governments are defined as 509(a)(1) organizations and are not exempt from refuse dumpster fees.
CUSTOMER FEEDBACK
If you have any questions or comments about this program, please do not hesitate to contact the Customer Service Center at: 734-99-GREEN or customerservice@a2gov.org.
For questions about your dumpster service once the dumpster has been placed at your location, please call 99-GREEN (734-994-7336), and select the option for Commercial Dumpster service, followed by the option to speak with an agent regarding non-billing related service issues or concerns. Making these selctions will connect you directly with Waste Management.
ADDITIONAL INFORMATION
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FAQs for the City of Ann Arbor and Waste Management refuse dumpster franchise (5-page PDF)
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IRS summary of types of tax-exempt organizations (8-page PDF)
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