Resolution 2022-32228 RESOLUTION: 2022-32228
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY'S FINANCE AND ECONOMIC RESILIENCY COMMITTEE,AT ITS APRIL 29,
2022 MEETING, TO EXTEND, ON A MONTH TO MONTH BASIS, THE
CONTRACT TERM FOR THE FOLLOWING AGREEMENTS, FOR A PERIOD NOT
TO EXCEED TWELVE (12) MONTHS FROM THEIR CURRENT EXPIRATION
DATE OF SEPTEMBER 30, 2022: (1) THE NON-EXCLUSIVE FRANCHISE
WASTE CONTRACTOR AGREEMENTS BETWEEN THE CITY AND (I) WASTE
MANAGEMENT INC. OF FLORIDA AND (II) WASTE CONNECTIONS OF
FLORIDA, INC. (THE "FRANCHISE WASTE CONTRACTORS") FOR
RESIDENTIAL SOLID WASTE COLLECTION AND DISPOSAL, AS WELL AS
RECYCLING SERVICES FOR MULTI-FAMILY RESIDENCES AND FOR
COMMERCIAL PROPERTIES IN THE CITY; AND (2) THE SERVICE
AGREEMENT AMONG THE CITY AND THE FRANCHISE WASTE
CONTRACTORS FOR ADDITIONAL SOLID WASTE COLLECTION SERVICES
AND COLLECTION OF RECYCLABLE MATERIALS AT CITY OWNED
PROPERTIES, PARKS, RIGHTS OF WAY, AND OTHER PUBLIC FACILITIES
AND PROPERTIES, IN ORDER TO PROVIDE THE ADMINISTRATION WITH AN
OPPORTUNITY TO CONDUCT PUBLIC OUTREACH AND PRESENT TO THE
CITY COMMISSION THE RECOMMENDED SERVICE OPTIONS TO BE
INCLUDED IN THE PROCUREMENT PROCESS FOR THE NEW AGREEMENTS;
AND FURTHER, AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENTS TO THE FRANCHISE AGREEMENTS AND SERVICE
AGREEMENT, MEMORIALIZING THE APPROVED TERM EXTENSION, FOR A
PERIOD NOT TO EXCEED ONE YEAR, THROUGH SEPTEMBER 30, 2023.
WHEREAS, on July 23, 2014, the Mayor and City Commission adopted Resolution No.
2014-28681,authorizing the Administration to negotiate and execute agreements with the top
three ranked proposers: Waste Management Inc. of Florida, Progressive Waste Solutions, and
Southern Waste Systems LCC ("Franchise Waste Contractors") and a separate service
agreement to provide additional solid waste/recycling services at City-owned properties ("Service
Agreement") pursuant to Request for Qualifications (RFQ) No. 2013-178SR for Franchise Waste
Contractors to provide Residential and Commercial Waste Collections and Disposal Services;
and
WHEREAS, the City entered into separate Non-Exclusive Franchise Waste Contractor
Agreements ("Franchise Agreements") with each Franchise Waste Contractors and a separate
Service Agreement with all of the Franchise Waste Contractors for municipal solid waste and
recycling services: and
WHEREAS, the City's Franchise Agreements, and the related Service Agreement, had an
initial term of five (5) years, effective as of October 1, 2014, and contemplated a renewal term, at
the City's option, of up to three (3) years; and
WHEREAS, in and around 2016, Southern Waste Systems was purchased by Waste
Management Inc. of Florida; and
WHEREAS, in 2018, Progressive Waste Solutions of FL, Inc. changed its name to Waste
Connections of Florida, Inc., leaving Waste Management Inc. of Florida and Waste Connections
of Florida, Inc. as the remaining Franchise Waste Contractors; and
WHEREAS, on July 31, 2019, the Finance and Citywide Projects Committee (FCWPC)
discussed the renewal, and recommended that the item be forwarded to the City Commission for
its consideration; and
WHEREAS, on July 31, 2019, the FCWPC further recommended that the City
Commission increase the franchise fee set forth in Section 90-221 of the City Code, from the
current franchise fee of eighteen percent (18%) to twenty percent (20%) of the franchisee's
monthly gross revenues; and
WHEREAS, on September 11, 2019, the Mayor and City Commission adopted Resolution
No. 2019-30981, pursuant to Section 90-221 of the City Code, increasing the franchise fee paid
to the City by each Franchise Waste Contractor, from eighteen percent (18%) of the Contractor's
monthly gross receipts, to twenty percent (20%) of the Contractor's monthly gross receipts; and
WHEREAS, on September 11, 2019, the Mayor and City Commission adopted Resolution
No. 2019-30982, extending the existing Franchise Agreements on a month-to-month basis for a
maximum period of six (6) months, and providing that the renewal of the Franchise Agreement
for the remainder of the three (3) year renewal term provided under Section 90-230(b) of the City
Code, shall be subject to negotiation of mutually acceptable terms for a new Service Agreement,
with additional public benefits to be provided to the City; and
WHEREAS, on October 16, 2019, the Mayor and City Commission adopted Resolution
No. 2019-31056, extending the renewal of the City's Franchise Agreements and new Service
Agreement for a period of three (3) years, Commencing as of October 1, 2019 and expiring on
September 30, 2022; and
WHEREAS, in the interim, the Sanitation Division of the Public Works Department
engaged Midatlantic Solid Waste Consultants (MSW) to assist staff with evaluating the current
agreement structure and to provide recommendations for an open versus closed, exclusive
versus non-exclusive, Franchise Waste Contractor Agreement model; and
WHEREAS, on April 29, 2022, the Public Works Department and its consultant presented
its assessment to the Finance and Economic Resiliency Committee and, following the
presentation, members of the Committee recommended to extend, on a month to month basis,
the City's current Franchise Agreements and the Service Agreement for a period of twelve (12)
months past the current expiration date of September 30, 2022; and
WHEREAS, the Administration recommends accepting the recommendation of the City's
Finance and Economic Resiliency Committee, to extend, on a month to month basis, the contract
term for the following agreements, for a period not to exceed September 30, 2023: (1) the Non-
exclusive Franchise Waste Contractor Agreements for Residential Solid Waste Collection and
Disposal for Multifamily Residences with Nine (9) or more Units, Commercial Solid Waste
Collection and Disposal, as well as for Recycling Services for Multi-family Residences with two
(2) or more Units, and for Commercial Properties in the City with (i) Waste Management Inc. of
Florida and (ii) Waste Connections of Florida, Inc; and (2) the Service Agreement among the City,
Waste Connections of Florida, Inc. and Waste Management Inc. of Florida for Additional Solid
Waste Collection Services and Collection of Recyclable Materials at City Owned Properties,
Parks, Rights of Way, and other Public Facilities and Property(ies), in order to provide the
Administration with the opportunity to conduct public outreach, to determine the residents'
preference for waste collection services and, together with the recommendations of the City's
consultant, present to the City Commission the recommended service options to be included in
the procurement process for the new agreements.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Mayor and City
Commission hereby accept the recommendation of the City's Finance and Economic Resiliency
Committee, at its April 29, 2022 meeting, to extend, on a month to month basis, the contract term
for the following agreements, for a period not to exceed twelve (12) months from their current
expiration date of September 30, 2022: (1) the Non-Exclusive Franchise Waste Contractor
agreements between the City and (i) Waste Management Inc. of Florida and (ii) Waste
Connections of Florida, Inc. (the "Franchise Waste Contractors") for residential solid waste
collection and disposal, as well as recycling services for multi-family residences and for
commercial properties in the City; and (2) the Service Agreement among the City and the
Franchise Waste Contractors for additional solid waste collection services and collection of
recyclable materials at city owned properties, parks, rights of way, and other public facilities and
properties, in order to provide the Administration with an opportunity to conduct public outreach
and present to the City Commission the recommended service options to be included in the
procurement process for the new agreements; and further, authorize the City Manager to execute
amendments to the Franchise Agreements and Service Agreement, and memorializing the
approved term extension, for a period not to exceed one year, through September 30, 2023.
PASSED and ADOPTED this c•) day of _rid 2022.
ATTEST:
JUL 2 5 2022 Dan Gelber, Mayor
Ra ael E. Granado, City Clerk l etiO,,
► ' i
IINCORP ORATED'110/
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APPROVED AS TO
FORM & LANGUAGE
& FOR EXECUTION
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City Attorney /i Dote
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Resolutions -C7 Q
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: July 20, 2022
SUBJECT:A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY
OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF
THE CITY'S FINANCE AND ECONOMIC RESILIENCY COMMITTEE,AT ITS
APRIL 29, 2022 MEETING, TO EXTEND, ON A MONTH-TO-MONTH BASIS,
THE CONTRACT TERM FOR THE FOLLOWING AGREEMENTS, FOR A
PERIOD NOT TO EXCEED TWELVE (12) MONTHS FROM THEIR
CURRENT EXPIRATION DATE OF SEPTEMBER 30, 2022: (1) THE NON-
EXCLUSIVE FRANCHISE WASTE CONTRACTOR AGREEMENTS
BETWEEN THE CITY AND (I) WASTE MANAGEMENT INC. OF FLORIDA
AND (II) WASTE CONNECTIONS OF FLORIDA, INC. (THE "FRANCHISE
WASTE CONTRACTORS") FOR RESIDENTIAL SOLID WASTE
COLLECTION AND DISPOSAL, AS WELL AS RECYCLING SERVICES
FOR MULTI-FAMILY RESIDENCES AND FOR COMMERCIAL
PROPERTIES IN THE CITY; AND (2) THE SERVICE AGREEMENT AMONG
THE CITY AND THE FRANCHISE WASTE CONTRACTORS FOR
ADDITIONAL SOLID WASTE COLLECTION SERVICES AND
COLLECTION OF RECYCLABLE MATERIALS AT CITY OWNED
PROPERTIES, PARKS, RIGHTS OF WAY, AND OTHER PUBLIC
FACILITIES AND PROPERTIES, IN ORDER TO PROVIDE THE
ADMINISTRATION WITH AN OPPORTUNITY TO CONDUCT PUBLIC
OUTREACH AND PRESENT TO THE CITY COMMISSION THE
RECOMMENDED SERVICE OPTIONS TO BE INCLUDED IN THE
PROCUREMENT PROCESS FOR THE NEW AGREEMENTS; AND
FURTHER, AUTHORIZING THE CITY MANAGER TO EXECUTE
AMENDMENTS TO THE FRANCHISE AGREEMENTS AND SERVICE
AGREEMENT, MEMORIALIZING THE APPROVED TERM EXTENSION,
FOR A PERIOD NOT TO EXCEED ONE YEAR, THROUGH SEPTEMBER
30, 2023.
RECOMMENDATION
The Administration recommends accepting the recommendation of the City's Finance and
Economic Resiliency Committee, at its April 29, 2022 meeting, to extend, on a month to month
basis, the contract term for the following agreements, for a period not to exceed twelve (12)
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months from their current expiration date of September 30, 2022: (1) the Non-exclusive
Franchise Waste Contractor Agreements for residential solid waste collection and disposal for
multifamily residences with nine (9) or more units, commercial solid waste collection and
disposal, as well as for recycling services for multi-family residences with two (2) or more units,
and for commercial properties in the City (collectively, "the Franchise Agreements") with (i)
Waste Management Inc. of Florida and (ii) Waste Connections of Florida, Inc; and (2) the
Service Agreement among the City, Waste Connections of Florida, Inc. and Waste
Management Inc. of Florida for additional solid waste collection services and collection of
recyclable materials at City owned properties, parks, rights of way, and other public facilities and
property(ies) (the "Service Agreement"), in order to provide the Administration with the
opportunity to conduct public outreach, to determine the residents' preference for waste
collection services and, together with the recommendations of the City's consultant, present to
the City Commission the recommended service options to be included in the procurement
process for the new agreements; and further, authorizing the City Manager to execute
amendments to the Franchise Agreements and Service Agreement, memorializing the
approved term extension,for a period not to exceed September 30, 2023. solution.
BACKGROUND/HISTORY
In 2013, the City issued a Request for Qualifications (RFQ) for a franchise for waste haulers.
Pursuant to Resolution No. 2014-28681, the City entered into a Non-Exclusive Franchise Waste
Contractor Agreement with (1) Waste Management Inc. of Florida, and (2) Waste Connections of
Florida, Inc. (f/k/a Progressive Waste Solutions of FL, Inc.) (the "Franchise Waste Contractors") and
further, the City entered into a separate Service Agreement with the Franchise Waste Contractors for
municipal solid waste and recycling services.
The City's Non-Exclusive Franchise Waste Contractor Agreements, and the related Service
Agreement, had an initial term of five (5) years, effective as of October 1, 2014, and
contemplated a renewal term, at the City's option, of up to three (3)years.
On July 31, 2019, the Finance and Citywide Projects Committee (FCWPC) discussed the
renewal, and recommended that the item be forwarded to the City Commission for its
consideration.
On July 31, 2019, the FCWPC further recommended that the City Commission increase the
franchise fee set forth in Section 90-221 of the City Code, from the current franchise fee of
eighteen percent(18%)to twenty percent (20%)of the franchisee's monthly gross revenues.
On September 11, 2019, the Mayor and City Commission adopted Resolution No. 2019-
30981, pursuant to Section 90-221 of the City Code, increasing the franchise fee paid to the
City by each Contractor, from eighteen percent (18%) of the Contractor's monthly gross
receipts, to twenty percent(20%)of the Contractor's monthly gross receipts.
On September 11, 2019, the Mayor and City Commission adopted Resolution No. 2019-
30982, extending the existing Franchise Agreements on a month-to-month basis for a maximum
period of six (6) months, and providing that the renewal of the Franchise Agreement for the
remainder of the three (3) year renewal term provided under Section 90-230(b) of the City
Code, shall be subject to negotiation of mutually acceptable terms for a new Service
Agreement,with additional public benefits to be provided to the City.
Page 379 of 1502
On October 16, 2019, the Mayor and City Commission adopted Resolution No. 2019-31056,
extending the renewal of the City's Non-Exclusive Franchise Waste Contractor Agreements and
new Service Agreement for a period of three (3) years, Commencing as of October 1 , 2019
and expiring on September 30, 2022.
In the interim, the Sanitation Division of the Public Works Department engaged Midatlantic Solid
Waste Consultants (MSW) to assist staff with evaluating the current agreement structure and to
provide recommendations for an open versus closed, exclusive versus non-exclusive,
Franchise Waste Contractor Agreement.
On April 29, 2022, the Public Works Department and its consultant presented its assessment to
the Finance and Economic Resiliency Committee. Following the presentation, members of the
Committee continued the discussion and made a motion to bring to Commission, a
recommendation to extend the City's current agreement to a month-to-month basis for
consideration; and for the next Committee meeting: provide additional content to the analysis
presented and to invite the City's waste haulers to participate in the discussion.
SUPPORTING SURVEY DATA
Results from the 2019 Resident Survey regarding overall City rating show that 69% of residents
rate neighborhood cleanliness as excellent/good and 58% for business and commercial areas.
FINANCIAL INFORMATION
CONCLUSION
The Administration recommends accepting the recommendation of the City's Finance and
Economic Resiliency Committee, at its April 29, 2022 meeting, to extend, on a month to month
basis, the contract term for the following agreements, for a period not to exceed twelve (12)
months from their current expiration date of September 30, 2022: (1) the Non-exclusive
Franchise Waste Contractor Agreements for residential solid waste collection and disposal for
multifamily residences with nine (9) or more units, commercial solid waste collection and
disposal, as well as for recycling services for multi-family residences with two (2) or more units,
and for commercial properties in the City (collectively, "the Franchise Agreements") with (i)
Waste Management Inc. of Florida and (ii) Waste Connections of Florida, Inc; and (2) the
Service Agreement among the City, Waste Connections of Florida, Inc. and Waste
Management Inc. of Florida for additional solid waste collection services and collection of
recyclable materials at City owned properties, parks, rights of way, and other public facilities and
property(ies) (the "Service Agreement'), in order to provide the Administration with the
opportunity to conduct public outreach, to determine the residents' preference for waste
collection services and, together with the recommendations of the City's consultant, present to
the City Commission the recommended service options to be included in the procurement
process for the new agreements; and further, authorizing the City Manager to execute
amendments to the Franchise Agreements and Service Agreement, memorializing the
approved term extension, for a period not to exceed September 30, 2023. solution.
Applicable Area
Citywide
Is this a "Residents Right Does this item utilize G.O.
Page 380 of 1502
to Know" item, pursuant to Bond Funds?
City Code Section 2-14?
Yes No
Strategic Connection
Neighborhoods - Enhance the beautification, physical appearance and cleanliness of
neighborhoods.
Legislative Tracking
Public Works
ATTACHMENTS:
Description
❑ Resolution
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