Title
Resolution to Approve a General Services Agreement between Throne Labs, Inc. and the City of Ann Arbor for Delivery, Installation, and Maintenance of Semi-Portable Bathrooms (Not to Exceed $541,000.00 in the First Year) and Appropriate up to $121,000.00 from the General Fund, ($500,000.00 was appropriated as part of the budget) (8 Votes Required)
Memorandum
Attached for your review and action is a resolution to approve a contract with THRONE Labs, Inc (“THRONE”) not to exceed $541,000.00, in the first year, for the installation of public restrooms in Ann Arbor. The contract can be extended four times, one year each, by the City Administrator if there is a corresponding budget appropriation by the City Council. If funds are not appropriated as part of the budget the contract is not extended. The contract includes a 7% per year escalator that, at the end of the four years, brings the City up to Throne’s current standard pricing model. At the end of the full five-year period the City will decide on extending the contract or putting the service out to bid.
The DDA has agreed to provide up to $170,000.00 towards the first-year amount, reducing the total cost to the City to $371,000.00.
The Throne program was created in response to City Council direction to investigate additional public restrooms in the Community. The City Administrator initiated a series of downtown listening sessions to better understand the issues. The number one priority identified was the need for additional community restrooms, confirming Council’s direction. A task force worked with the Administrator to review options and met with several other communities to evaluate different facilities. THRONE was determined to be the preferred option based on the City’s current needs and situation. 10 Units were installed as part of the pilot. With well over 100,000 uses through the first 8 months and an average customer ranking of 4.7 out of 5, the pilot program is a significant success.
The proposed contract reduces the number of units to 8, with the possibility of adding more if needed. It is a one-year contract with the possibility of four, one-year extensions approved by the City Administrator. Those extensions are contingent on Council approving the funding needed in each year’s corresponding budget. If the money is not appropriated by Council, the contract terminates.
THRONE leverages custom hardware with a cloud connected IOT suite, historic usage data and real time user cleanliness ratings to inform operations to provide a consistently clean operation that brings public restrooms into the 21st Century.
THRONE resolves many of the issues of providing public bathrooms by offering a turnkey solution to cities that includes all cleaning, servicing and user support. Their innovative bathroom solution drastically reduces the capital and time required for cities to offer restroom infrastructure and uses technology and behavior science to introduce accountability to the public restroom use. As a mission-driven company, they offer baby changing stations and menstrual products. The THRONE design exceeds federal ADA standards, and THRONE actively works with local partners to enable easy access for unhoused and all members of the community.
The City Administrator is recommending approval of a contract for one year with four possible administrative extensions, (for a total of 5 years), with THRONE for eight restrooms starting July 1, 2025.
Budget/Fiscal Impact: The FY 2026 funding for this contract will come from up to $170,000.00 provided by the Downtown Development Authority and $371,000 from the City’s General Fund, of which $250,000.00 is in the approved FY 2026 budget. Staff requests an additional $121,000.00 be appropriated from the General Fund fund balance for this contract.
Staff
Prepared by: Derek Delacourt, Community Services Area Administrator
Approved by: Milton Dohoney Jr., City Administrator
Body
Whereas, City Council approved the Resolution to Encourage the Development of Public Restrooms in Downtown Ann Arbor at Enactment #R-22-361 directing the City Administrator to explore the addition of public restrooms to the downtown and other applicable areas of the City;
Whereas, The City Administrator’s Office convened and conducted listening sessions with downtown stakeholders to determine the need and type of issues related to the downtown;
Whereas, Those stakeholders identified the need for additional public restrooms as being a priority;
Whereas, A task force of stakeholders and City staff was established to review options and make a final recommendation to the City Administrator regarding the preferred option to expand the number of restrooms in the downtown and other areas of the City;
Whereas, THRONE was recommended as the preferred option for the pilot program including the sighting and maintenance; and
Whereas, The City completed a one-year pilot that determined that THRONE was the appropriate solution to meet the need;
RESOLVED, That City Council approves the General Services Agreement between Throne Labs, Inc. and the City of Ann Arbor for Delivery, Installation, and Maintenance of Semi-Portable Bathrooms, not to exceed $541,000.00 in the first year, to continue a public restroom program (the “Agreement”);
RESOLVED, That City Council appropriate up to $121,000.00 from the General Fund fund balance to the FY 2026 Community Development General Fund Expenditure budget for the Agreement.
RESOLVED, That all amounts herein be without regard to fiscal year; and
RESOLVED, That the City Administrator be authorized to take the necessary actions to implement this resolution, including execution of any partnership agreements for program contributions from local entities, including but not limited to the University of Michigan and the Ann Arbor Downtown Development Authority, to administratively approve any amendments to the Agreement not exceeding the approved expenditure, and to terminate the Agreement per its terms if deemed necessary.