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SR 04-12-2016 3J City Council Report City Council Meeting: April 12, 2016 Agenda Item: 3.J To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Resource Recovery & Recycling Subject: Purchase Order Increase for Big Belly/Smart Belly Dual Compactors Recommended Action Staff recommends that the City Council approve a change order to purchase order #24836 OF in the amount of $45,700 with Waxie Sanitary Supply, a California-based company, for purchase and delivery of seven additional Big Belly/Smart Belly dual recycle bins/trash compactors. This would result in a new three-year revised purchase order total not to exceed $391,400. Executive Summary The City currently has a purchase order with Waxie Sanitary Supply to provide Big Belly/Smart Belly dual recycle bins/trash compactors at high foot traffic areas in the amount not to exceed $345,700 for a three-year term expiring in December 2016. Staff is requesting an increase to the existing purchase order in the amount of $45,700 for seven additional Big Belly/Smart Belly compactors to be purchased with funds received from CalRecycle to aid in beverage container recycling for a new three-year total not to exceed $391,400. Background On December 17, 2013 Council awarded Bid #4103 to Waxie Sanitary Supply, for the purchase of Big Belly/Smart Belly dual compactors to replace the concrete pedestrian litter containers located at high foot traffic areas near the business districts and bus stops (Attachment A). On May 27, 2014 Council amended the purchase order to Waxie Sanitary Supply by $45,700 for the purchase and placement of seven additional dual compactors that would be installed at high traffic bus stops as part of the Bus Shelter Improvement Project (Attachment B). 1 of 3 Discussion There are over 400 concrete refuse containers in the pedestrian right-of-way to handle high foot traffic areas near the business districts and bus stops. These open top refuse containers are gradually being replaced by the new solar powered dual compactor enclosed system, which allows for both refuse and recycling to be collected separately. Each dual compactor communicates via SMS to a cloud-based web application called CLEAN. The CLEAN management dashboard captures real-time data on bin capacity, operational status and waste diversion. This provides staff with the management tools needed for efficient route scheduling and collection. The service frequencies at the Big Belly stations have decreased from daily services to 3 times per week and 34 percent of the waste has been diverted from the landfills. To date over 60 of these new compactors have been installed throughout the City including Main Street, Montana Avenue, Santa Monica Pier, Ocean Avenue and various other locations. Staff plans to use these additional compactors to complete the replacement of containers on Lincoln Boulevard . Annually, CalRecycle distributes funds to cities to implement new or enhance existing programs to provide convenient beverage container recycling opportunities in various locations. Eligible activities include litter prevention and cleanup where the waste stream includes beverage containers that would be recycled as well as public education promoting beverage container recycling. This year the City received a supplemental payment of $31,294 from the Beverage Container Curbside Program and $24,450 from the City/County Payment Program for a total amount of $55,744. Resource Recovery & Recycling proposes to use $45,700 to purchase seven additional Big Belly/Smart Belly compactors and use the remaining funds for recycling education. Vendor Selection In September 2013, the City issued a Bid for the purchase of Big Belly/Smart Belly dual compactors. Only one bid was received. The price of the new Big Belly/Smart Belly dual compactors was compared against the price paid for the 13 compactors installed on Main Street in early 2013, and the pricing was found to be comparable. Since 2013, 2 of 3 the price for these dual stations has only increased by 3 percent. Financial Impacts and Budget Actions The purchase order modification to be awarded to Waxie Sanitary Supply is for $45,700 , for an amended purchase order total of $391,400 over the three-year term. Funds are available in the FY2015-16 budget in the Public Works Department. The purchase order will be charged to account 27441.566640 (State Recycling Program). Prepared By: Annette Morales, Principal Public Works Analyst Approved Forwarded to Council Attachments: A. December 17, 2013 Staff Report B. May 27, 2014 Staff Report 3 of 3