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HomeMy WebLinkAboutI-9 Staff Report - Approval of Lease of Two Trash-Recycling ReceptaclesUB CONSENT ITEM I-9 TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES DATE: JUNE 15, 2020 SUBJECT: APPROVAL OF LEASE OF TWO BIGBELLY TRASH/RECYCLING RECEPTACLES BACKGROUND: The City of Azusa receives a grant from the Department of Resources Recycling and Recovery (CalRecycle) to administer a program to promote and provide opportunities for recycling beverage containers. Funds are used for drop-off recycling programs, public education and outreach promoting beverage container recycling, litter prevention and cleanup activities for waste stream that includes beverage containers, and personnel expenditures. RECOMMENDATION: Staff recommends the Utility Board take the following action: 1) Approve the lease of two Bigbelly trash/recycling receptacles for a 60-month term; and 2)Authorize the Director of Utilities, in a form acceptable to the City Attorney, to execute the Lease Agreement. ANALYSIS: The City of Azusa currently leases eight (8) Bigbelly Waste Compacting Stations that replaced the traditional trash receptacles at downtown and civic center bus stop locations for a 60-month term from December 2016-June 2021 using grant funds through the Foothill Transit Bus Stop Enhancement Program (BSEP). The Bigbelly Stations are fully enclosed solar-powered trash receptacles that compact trash to allow for up to 5 times more capacity than a traditional 32-gallon receptacle. The fully enclosed system design eliminates trash overflow, hides unsightly trash, controls pests and vectors and reduces litter. APPROVED UTILITY BOARD 6/15/2020 Approval of Lease of Two Bigbelly Receptacles June 15, 2020 Page 2 The Bigbelly Stations are also equipped with a smart software system providing real-time data on each station and alerts Staff when the Bigbelly Stations have reached near-full capacity and need to be serviced. This information allows for a more efficient deployment of resources and will reduce staff time than servicing a traditional trash receptacle. CalRecycle has approved the use of grant funds for the lease of two Bigbelly Stations to be installed at Memorial Park and Highway 39 Bike Trail entrance. These receptacles will have double units to accommodate trash and recycling in order to qualify as a grant expense. Staff expenses in servicing these stations will also be paid for by the grant. Since the City has an open contract with Connect by Bigbelly for the eight (8) receptacles currently at downtown and civic center bus stops, the two additional double receptacles need to be approved as an Addendum to the Agreement. FISCAL IMPACT: The proposed 60-month lease term, which includes system monitoring, cleaning and inspection, full-term warranty, customer support, setup and training, is $6,943.10 per year. The total lease amount including shipping and initial supply of replacement bags is $35,319.39. There are sufficient funds under Account No. 28-40-750-064-6625 to cover the annual lease and additional expenses related to this program. Prepared by: Reviewed and Approved: Liza Sagun Manny Robledo Environmental Programs Specialist Director of Utilities Reviewed and Approved: Sergio Gonzalez City Manager Attachments: 1) Bigbelly Proposal 2) Original Contract 3) Addendum Agreement Quote Number: Q36728-3 May 29, 2020 Bigbelly 2020 Executive Summary Proposal CITY OF AZUSA, CA Program Overview Connect is Bigbelly’s turnkey smart city solution which delivers a connected smart waste and recycling platform and provides Customers with a partner to help deploy, manage, and optimize their customized solution over a 60-month term. This subscription-based service was designed to deliver a flexible, scalable, smart platform that transforms waste operations today, and enables Customers to benefit from the technology innovations of the future. Connect 60 Month Term System Software Automated System Monitoring CLEAN Management Console Licenses for Full Term CLEAN Mobile Software Licenses for Full Term Automated System Diagnostics and Alerts Equipment/Hardware Cleaning and Inspection Custom Configuration as Detailed Below Annual Comprehensive Station Cleaning Annual Station Inspection Station Installation Warranty On-Site Installation for Stations Hardware Parts Warranty for Full Term Setup and Training Customer Support CLEAN Software Account Setup System Training & Onboarding Customer Support Hotline and Trained Field Service Professionals Equipment/Hardware Configuration 2 HC5/HC5 Double Station with Message Panels, Partial Wraps, and 2 HC Foot Pedals Total Quarterly System Cost $1,574.40 1Pricing is valid for 60 days from June 2, 2020. 2Sales Tax is NOT included in above pricing. 3Pricing is subject to Connect Program Terms and Conditions. 4Initial order of bags included in “One Time Fees”. Please visit www.wastezero.com/bigbelly for future orders. One Time Fees 2 Boxes of HC Bags (Box of 50) $67.00 Shipping $530.00 Attachment 1 Attachment 2 ADDENDUM TO CONNECT SERVICES AGREEMENT Reference: Service Schedule No. 1 to Bigbelly Connect Services Agreement No. 10065 between City of Azusa, CA and Big Belly Solar, Inc. dated as of December 12, 2016 (together, the “Agreement”). THIS ADDENDUM to the above-referenced Connect Services Agreement (“Addendum”) is entered into effective as of _______________ (the “Effective Date”) by and between City of Azusa, CA (the “Customer”) and Big Belly Solar, LLC, a Delaware limited liability company (“Bigbelly”). Capitalized terms not otherwise defined herein shall have the meaning given to them in the Agreement. WHEREAS, Bigbelly, as assignee of Big Belly Solar, Inc., and Customer are parties to the above-referenced Agreement pursuant to which the Customer is presently leasing, for a fifty-three (53) month Term that expires on May 14, 2021, the following Bigbelly Smart Waste Systems: eight (8) HC Single Stations; and WHEREAS, Customer desires to lease, for a sixty (60) month Term two (2) additional HC5/HC5 Double Stations, all with Message Panels, Partial Wraps, and Foot Pedals (the “Additional Equipment”). NOW, THEREFORE, for good and valuable consideration, intending to be legally bound, Bigbelly and Customer agree as follows: 1.Effective as of the Effective Date of this Addendum, the Equipment/Hardware Configuration table set forth in the Connect Service Schedule on the first page of the Agreement is amended by adding the Additional Equipment identified below and the related Connect Services Fees and One-Time Fees for the Additional Equipment: Additional Equipment/Hardware Configuration: Qty. 2 HC5/HC5 Double Stations with Message Panels, Partial Wraps, and Foot Pedals Additional Equipment Connect Services Fees: Total Quarterly System Cost $1,574.40 Additional Equipment One-Time Fees: Shipping Charges $530.00 2 Boxes of HC Bags (Box of 50) $67.00 2.The Initial Term of the Agreement with respect to the Additional Equipment shall be sixty (60) months, commencing upon the delivery of the Additional Equipment, as the same may be extended or renewed pursuant to the terms and conditions of the Agreement. The Initial Term with respect to the Existing Equipment remains as stated in the Agreement and is unchanged by this Addendum. 3.The payment terms of this Addendum are quarterly in a rrears (“Payment Terms”). The Customer shall pay the first quarterly payment of this Addendum in advance. 4.Except as modified by this Addendum, the Agreement remains in full force and effect. IN WITNESS WHEREOF, the parties have caused this Addendum to be executed on the date first set forth above. Customer: CITY OF AZUSA, CA BIG BELLY SOLAR, LLC By: By: Name: Name: Title: Title: Date: Date: Jack Hunt Regional Manager 6/2/2020 Attachment 3