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SR 06-14-2016 3A City Council Report City Council Meeting: June 14, 2016 Agenda Item: 3.A To: Mayor and City Council From: Martin Pastucha, Director, Public Works, Resource Recovery & Recycling Subject: Award Bid for Purchase of Big Belly/Smart Belly Dual Compactor Stations Recommended Action Staff recommends that the City Council: 1. Award Bid #4245 to Waxie Sanitary Supply, a California-based company, for the purchase of Big Belly/Smart Belly dual compactor stations; 2. Authorize the Purchasing Services Manager to issue a purchase order with Waxie Sanitary Supply for the purchase of Big Belly/Smart Belly dual compactor stations in an amount not to exceed $145,000 for one year, with four-additional one-year renewal options, with an up to two percent annual increase on the same terms and conditions for a total amount not to exceed $754,586 over a five- year period, with future year funding contingent on Council budget approval. Executive Summary Across Santa Monica, there are over 400 refuse containers in the pedestrian right-of- way to handle high foot traffic areas near business districts and bus stops. The majority of the existing open top refuse containers are gradually being replaced by solar powered Big Belly/Smart Belly dual compactor stations to increase efficiency and recycling. In March 2016, the City solicited bids for the continuous purchase of Big Belly/Smart Belly dual compactor stations. After reviewing the only bid received, staff recommends Waxie Sanitary Supply to provide the dual compactor stations for a total not to exceed amount of $754,586 over a five-year period. Background Prior to 2002 there were various sizes and styles of litter containers throughout the City. Most of them were more than 10 years old and in poor condition. As part of the Transit Mall project, a design was developed for a more durable litter container that could be used in the Transit Mall and throughout the City. These are the concrete open top single-stream trash containers currently in use today. In FY2012-13, staff implemented a pilot program that replaced 13 concrete containers on Main Street with the new Big Belly/Smart Belly dual compactor stations. These fully 1 of 5 enclosed dual compactor stations were being considered as an alternative to the open top container as a means to eliminate trash overflow, control pests and reduce litter. Staff was also looking for a system that would increase operational efficiencies. The Big Belly dual compactor station was the only system on the market that provided point of disposal compaction, which allowed for five times more trash to be collected. After completion of the pilot program, staff evaluated the service levels at these locations and found that the collection frequencies had dropped significantly. Collection service dropped from daily service to three times a week, complaints concerning overflowing litter from the businesses along Main Street decreased, and a recycling component . As a result, staff recommended that the program be expanded to other business districts and high frequency bus stops. On December 17, 2013 Council awarded Bid #4103 to Waxie Sanitary Supply, for the purchase of the Big Belly/Smart Belly dual compactor stations to begin the replacement of the existing concrete containers (Attachment B). The purchase order was amended twice during the three-year period; on May 27, 2014 to purchase seven dual compactor stations for Big Blue Bus (Attachment D) and on April 12, 2016 to purchase seven grant-funded dual compactor stations (Attachment E) . To date 69 of these new dual compactor stations have been installed throughout the , City including Main Street, Montana Avenue, Santa Monica Pier, Ocean Avenue and various other locations city-wide (Attachment C). Discussion There are over 400 refuse containers in the pedestrian right-of-way to handle high foot traffic areas near business districts and bus stops. The majority of the open top refuse containers are gradually being replaced by the new solar powered dual compactor stations. It is estimated that the city would purchase 20 containers per year for a total of 100 over the five year term. At the end of this five-year term the replacement project will be 70% complete. The first year replacements would be along Santa Monica Blvd., 2 of 5 Business District. The overall objectives for transitioning to the fully enclosed dual compactor stations was to increase service levels while reducing staff time to collect trash, reduce carbon emissions by reducing the number of trips per week, reduce the number of containers on the streets, reduce overflow and wind-blown trash, and increase recycling. As of 2015, 34 percent of the waste has been diverted from the landfills. Each Big Belly station includes a CLEAN management dashboard, a proprietary software program developed by Big Belly Solar, which 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. By employing this program, service frequencies at the Big Belly dual compactor stations have decreased from daily collection to 3 times per week, which means less servicing by the crews. In turn, this frees up staff to perform other needed tasks. The Big Belly Solar system is the only product of its type in the North American market. There is however a similar product currently emerging out of Asian and European markets. The product has yet to be introduced in North America. No data is available to compare the effectiveness of the new product to the Big Belly product as this time. Vendor Selection In March 2016, the City published a Notice Inviting Bids to furnish and deliver Big Belly/Smart Belly dual compactor stations in accordance with City specifications. The bid was posted on the City's on-line bidding site, and notices were advertised in the Santa Monica Daily Press in accordance with City Charter and Municipal Code provisions. 24 vendors downloaded the bid. One bid was received and publicly opened on April 7, 2016, per Attachment A. The bid was evaluated based on the criteria in SMMC 2.24.072, including price, previous experience, ability to deliver, quality of product, and compliance with City specifications and scope of work. Procurement conducted additional outreach to vendors who downloaded the bid to see why they did not submit a bid; one vendor responded. The vendor indicated that they were not an 3 of 5 authorized distributor of the Big Belly/Smart Belly dual compactor stations. Staff contacted Big Belly Solar, Inc. the manufacturer of the Big Belly solar powered dual compactor stations, who confirmed that these systems can only be procured directly from an authorized distributor. The only distributor authorized to provide Big Belly products, services and technology to the City of Santa Monica is Waxie Sanitary Supply. Since these dual compactor stations can only be purchased from this vendor, staff evaluated the vendor on its pricing and responsiveness, Prices have only increased by 3% since 2013 and they have been Based on these criteria, Waxie Sanitary Supply is recommended as the best bidder. Financial Impacts and Budget Actions The purchase order to be awarded to Waxie Sanitary Supply is for an amount not to exceed $754,586. Funds of $145,000 are included in the FY 2016-17 Budget Plan in the Public Works Department. The contract will be charged to the following accounts: Account Number Description Amount C270227.589000 Refuse Container Purchases$108,500 $ 36500 27441.566640 State Recycling Program, TOTAL $145,000 Future year funding is contingent on Council budget approval. Prepared By: Annette Morales, Principal Public Works Analyst Approved Forwarded to Council 4 of 5 Attachments: A. Bid #4245 Summary B. December 17, 2013 Staff Report C. Big Belly Locations D. May 27, 2014 Staff Report E. April 12, 2016 Staff Report 5 of 5