TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Erick Lee, Public Works Director
Anna Luke-Jones, Senior Management Analyst
SUBJECT:Title
Consideration of a Resolution Approving Amendment No. 2 to the Connect Services Agreement with Big Belly Solar, LLC to Extend and Expand the Lease of Solar Compacting Refuse Containers and Related Services (Public Works Director Lee).
ADOPT RESOLUTION NO. 23-0057
Line
_________________________________________________________
Recommended Action
RECOMMENDATION:
Staff recommends that City Council approve Resolution No. 23-0057, approving Amendment No. 2 to the Connect Services Agreement with Big Belly Solar, LLC to extend and expand the lease of solar compacting refuse containers and related services.
Body
FISCAL IMPLICATIONS:
If the resolution is adopted, there will be no additional fiscal impact in Fiscal Year (FY) 2022-2023. The City Council appropriated $75,000 for the additional units as part of the business district beautification efforts on November 1, 2022, and the existing units are already covered under the existing agreement. Additionally, Amendment No. 2 extends the term for the existing units along with new pricing, adds a three-year lease for 20 additional duo units, and includes a $5,000 annual contingency to cover emergency services or unanticipated expenses.
Existing Eight Units
The current monthly lease cost of $290.42 per unit, per month for the existing eight units will remain unchanged until August 14, 2024. Beginning August 15, 2024, the per unit, per month pricing will be increased to $304.39.
Additional 20 Units
The monthly lease cost for the 20 additional units will be $304.39 per unit, per month, for an annual total of $73,053.12.
The maximum compensation will be set to a total not to exceed the amount of $400,000 between June 6, 2023 and December 31, 2026. Sufficient funds exist in the remainder of the year and the Proposed Budget for FY 2023-2024. Future years will be budgeted accordingly.
BACKGROUND:
In 2016, as part of Downtown's ongoing maintenance enhancements strategy, City Council directed staff to replace seven high-use/volume public trash cans in downtown Manhattan Beach with Big Belly Solar trash compacting units. These units hold up to five times the volume of the traditional concrete can and the recycling compacting units hold up to three times the volume of the traditional concrete can. The recycling unit compactor uses enough pressure to compact paper and plastic, but not break glass.
August 2018
In August 2018, seven duo-unit compactors (trash and recycling, side by side) were installed under a three-year lease agreement. As part of the lease, Big Belly provides annual maintenance and tune-up as well as replacement parts under warranty. Prior to the Big Belly installations, trash and recycling cans at several downtown "hot-spot" locations had excessive overflow issues and were being serviced two to three times per day, seven days per week. Once the Big Belly compactor units were installed, service levels were reduced from two to three times per day service to every one to two day service. Overflow issues at these locations were eliminated because they hold up to five times more landfill trash and three times more recycling than traditional concrete City cans.
December 2020
On December 1, 2020, City Council approved Amendment No. 1 to add an eighth duo-unit and extend the agreement to August 2024 under a Big Belly Solar promotion to receive free upgraded doors with foot pedals on all the existing units.
November 2022
As part of the beautification efforts in the Downtown and North Manhattan Business Districts, City Council directed staff to expand the Big Belly Solar footprint by at least 20 units with an additional $75,000 that was allocated from funds appropriated for business district beautification efforts.
DISCUSSION:
Big Belly Lease Extension for Existing 8 Big Belly Duo Units
The current eight unit lease costs just under $28,000 annually. A full inspection of these units was performed recently, and Big Belly has committed to making non-warranty repairs at no additional cost to the City to ensure function properly for the extended lease term. Big Belly Solar has improved their warranty policy and is now covering some repairs not previously available. This provides the City with a better value for the lease.
Additional 20 Big Belly Duo Units
As part of the ongoing beautification efforts, the City Council directed staff to expand the Big Belly Solar footprint in the business districts with $75,000. Because the units are leased, $75,000 will provide 20 additional duo units annually. Due to current supply chain issues, the lead-time for production and delivery of these additional units is estimated at six months. Therefore, the anticipated installation is Winter 2023/2024. The units will have both a handle and foot pedal option on the doors to match the existing units.
PUBLIC OUTREACH:
Feedback from the Downtown Manhattan Beach Business and Professional Association (DBPA) indicates support for this expansion. The units have eliminated several problematic overflow areas and reduced the presence of flies and odors. The North Manhattan Beach Business Improvement District also supports this expansion.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 23-0057
2. Amendment No. 2 - Big Belly Solar, Inc.
3. Agreement and Amendment No. 1 - Big Belly Solar, Inc.