| | | | | | | |  | Resolutions - R7 W
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Jimmy L. Morales, City Manager | | | DATE: | March 1, 2017 | | | |
| | SUBJECT: | A RESOLUTION OF MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, APPROVING AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE, SUBSTANTIALLY IN THE FORM ATTACHED TO THIS RESOLUTION, AN AGREEMENT WITH BIG BELLY SOLAR, INC., FOR A TERM OF ______ YEARS; SAID AGREEMENT EXTENDING THE TERM OF THE TWENTY-FOUR (24) EXISTING SMARTBELLY TRASH CAN STATIONS, WHICH WERE THE SUBJECT OF A ONE YEAR PILOT PROGRAM, AND ADDING ____ ADDITIONAL SMARTBELLY TRASH CAN STATIONS, ALL TO BE LOCATED ALONG WASHINGTON AVENUE, BETWEEN 5TH STREET AND 17TH STREET, IN THE TOTAL AMOUNT NOT TO EXCEED $99,000 ANNUALLY. |
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| | | | | | | | RECOMMENDATION
| | The Administration recommends approving the resolution. |
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| | | | | | | | ANALYSIS
| At its July 8, 2015, the City Commission accepted the recommendation of the May 27, 2015 Sustainability and Resilience Committee, to proceed with a pilot program and explore a range of financing options proffered by Big Belly Solar without advertising and subsequently adopted Resolution 2015-29067. On December 4, 2015 the City and Big Belly Solar, Inc. (Bigbelly) agreed to launch a 12-month pilot program that would allow for the lease of twenty-four (24) Bigbelly + Smartbelly Double Stations under a service contract at a monthly rate of $128 per station, for a total monthly cost of $3,072.
At its October 26, 2016 Sustainability and Resiliency Committee meeting, the Committee requested a financial analysis be conducted of the Bigbelly pilot program. A discussion was made to the Finance and City Wide Projects Committee on December 16, 2016. Preliminary cost information and program expansion possibilities were discussed.
The current trash receptacles deployed in most locations are manufactured by Victor-Stanley. The purchase cost for a Victor-Stanley can is $1,400, and over the course of its ten year service life; it is refurbished every other year at a cost of $200. This results in an average annual cost of $220 per year.
For the original pilot project, Bigbelly has provided dual units consisting of a compacting trash unit and a recycling container for the monthly cost of $128 per set. If one were to consider a similar service life, the average annual cost would be $1,536 per year.
On January 18, 2017, Bigbelly provided pricing with the original 24 units remaining at a discounted price based on a 60 month deployment. Additional units or any reduction of the contract time period would result in higher pricing.
The Administration is interested in extending the pilot program to see if the technology offers sufficient efficiencies in service and recycling to offset the higher cost of the Bigbelly stations. The concept would be to take a segment of Washington Avenue and make it exclusively Bigbelly trash receptacles.
A discussion was held at the January 20, 2017 meeting of the Finance and Citywide Projects Committee. The Committee voted to expand the pilot program along Washington Avenue with the direction to report back in six (6) months. In addition, future financial analysis over an extended period of time should include cost of living adjustments for labor components.
At the February 8, 2017 meeting, the City Commission directed Public Works staff to continue its contract negotiations with Bigbelly and to bring it back in March on the agenda.
Staff has had several discussions with Bigbelly representatives to develop a mutual agreement. The latest discussions have resulted in the proposal including insurance to cover damages and losses of the units, a third party policy at a cost of $3500 with a $1000 deductible and an additional catastrophic loss policy with a $30,000 deductible will be preferable at this time. There is also a $10,897 fee to move the existing stations to Washington Avenue as well as a shipping charge of $7,904 for the additional units being provided.
Attached is the latest draft agreement which is still subject to negotiation. We recommend capping the total annual value of the contract at the $99,000. While a lower per unit cost has been provided for the 60 month option, we believe a complete evaluation of the effectiveness of these units in reducing man hours to service these stations should be achievable within a 36 month period. An adjustment to the number of cans to stay within the budget amount can be accomplished with a full evaluation at or near the end of the 36 month period.
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| | | | | | | | CONCLUSION
| | The Administration recommends approving the resolution. |
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| | | | | | | | Legislative Tracking
Public Works |
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