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98-3141 ORD ORDINANCE NO. 98-3141 AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, AMENDING ORDINANCE NO. 91- 2757, PROVIDING FOR THE GRANTING OF A NON-EXCLUSIVE FRANCHISE TO EASTERN ENVIRONMENTAL SERVICES OF FLORIDA, INC. (EESF), AS SUCCESSOR IN INTEREST TO A-I CARTING CORPORATION, FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE GENERATED WITHIN THE CITY OF MIAMI BEACH; SAID AMENDMENT APPROVING THE RENEWAL OF THE FRANCHISE FOR AN ADDITIONAL FIVE (5) YEAR PERIOD, AND REQUIRING THE FRANCHISEE TO CONTRIBUTE TOWARD A PUBLIC RIGHT-OF-WAY CLEANING PROGRAM, TO BE ESTABLISHED BY THE CITY; PROVIDING FOR SEVERABILITY; CODIFICATION; REPEALER; AND AN EFFECTIVE DATE. WHEREAS, on April 24, 1991, the Mayor and City Commission adopted Ordinance No. 91-2742, amending Chapter 14A of the Miami Beach City Code entitled, "Garbage," and providing the licensing and operating criteria for not more than five (5) non-exclusive waste contractors to provide collection and disposal of solid waste generated within the City of Miami Beach; and WHEREAS, on or about October 9, 1991, the Mayor and City Commission adopted Ordinance No, 91-2757, providing for the granting of a non-exclusive franchise to A-I Carting Corporation, a Florida corporation, for the collection and disposal of solid waste generated within the City of Miami Beach; and WHEREAS, pursuant to the adoption of Resolution No. 97-22397, approving an assignment of the non-exclusive franchise, EESF is the successor in interest to A-I Carting Corporation; and WHEREAS, the initial seven (7) year term of the non-exclusive franchise currently held by EESF will expire on October 18, 1998, and the City may thereupon, at its sole discretion, either accept applications for a new franchisee and/or renew the current franchisee for an additional term; and WHEREAS, the Administration has been negotiating with all five of the City's current non- exclusive franchisees, including EESF, and would herein recommend that the Mayor and City Commission approve a renewal term of five (5) years for said franchises, rather than the seven (7) year term currently set forth in Ordinance No, 91-2757; and WHEREAS, as further consideration for the Administration's recommendation for renewal of the five incumbent non-exclusive franchises, the Administration would also recommend that Ordinance No. 91-2757, which granted the franchise currently held by EESF and memorializing the terms of the agreement between the City and the franchisee, be amended to not only reflect the new renewal term, but also to require the incumbent franchisee to contribute an amount equal to two percent (2%) ofits annual gross receipts, toward a City public right-of-way cleaning program, to be established through the City's Sanitation Department NOW THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. Upon recommendation by the Administration, and having found that the requirements for renewal ofthe franchise waste agreement, as set forth in Chapter 90, Article IV, Sections 90-229 and 90-230 of the Code of the City of Miami Beach, have been met, the Mayor and City Commission finds such renewal to be in the best interest of the City and herein accepts and approves the renewal of the non-exclusive franchise granted to EESF, as successor in interest to A-I Carting Corporation, pursuant to Ordinance No. 91-2757, as same is subsequently amended herein. Accordingly, Section 5 of Ordinance No. 91-2757 is amended as follows: SECTION 5. TERM. The term of this franchise shall commence on the effective date of this ordinance. The franchise shall be granted for a period of seven (7) years unless sooner terminated by revocation due to breach of the terms hereof by the Grantee or due to the bankruptcy of insolvency of the Grantee. At the expiration or earlier; revocation thereof, the City Commission may choose, in its sole discretion, to accept applications for a new franchisee and/or to renew this franchise for an additional seven (7) five (5) year period or to provide for collection and disposal of solid waste by some other means. In deciding whether to issue a new franchise to a different franchisee or to accept a franchise application from the current franchisee for renewal of this franchise, the City Commission shall follow the criteria and procedure set forth in Section 14/\ 16 ofOrdinftftee No. 91 2742 Chapter 90. Article IV. Section 90-229 and 90-230 of the Code ofthe City of Miami Beach. SECTION 2. As further consideration for renewal of this franchise, EESF agrees to contribute an amount, as set forth herein, and based upon a percentage of its annual gross receipts, toward a City public right-of-way cleaning program, to be established by the City, through its Sanitation Department. Accordingly, the following paragraph is added at the end of Section 6. SECTION 6. FRANCHISE CONSIDERATION * * * In addition to payment of the franchise fee. as set forth herein. the Grantee shall pay an amount equal to two percent (2%) of its annual Gross Receipts. as defined in this section. to be applied by the City toward the establishment. implementation. and operation of a public right-of-way cleaning program. to be established by the City and operated through its Sanitation Department. The Grantee 2 shall. on or before thirty (30) days following the close of its fiscal year. deliver to the Finance Director and the City Manager a statement of its annual gross receipts generated from accounts within the City certified by an independent certified public accountant. reflecting gross receipts within the City for the preceding fiscal year. Payment of this amount for the City's program shall be made monthly to the Finance Director. on or before the last day of each month. SECTION 3. All references throughout this Ordinance to Ordinance No. 91-2742, as amended, shall mean Chapter 90 of the Code of the City of Miami Beach, entitled, "Solid Waste," as same may be amended from time to time. All references to Section 14A-3 of Ordinance No. 91-2742, shall refer to Section 90-97; Section 14A-17 of Ordinance No. 91-2742, shall refer to Section 90-276 et seq.; Section 14-A-15 of Ordinance No. 91-2742, shall refer to Section 90-191 et seq.; Section 14A-16a of Ordinance No. 91-2742, shall refer to Section 90-221 et seq. SECTION 4. CODIFICATION. It is the intention of the Mayor and City Commission of the City of Miami Beach, and it is hereby ordained that the provisions of this ordinance shall become and be made a part of the Code of the City of Miami Beach, Florida, The sections of this ordinance may be renumbered or relettered to accomplish such intention, and the word "ordinance" may be changed to "section", "article," or other appropriate word. SECTION 5. REPEALER. All ordinances or parts of ordinances in conflict herewith be and the same are hereby repealed. SECTION 6. SEVERABILITY. If any section, subsection, clause or provision of this Ordinance is held invalid, the remainder shall not be affected by such invalidity. SECTION 7. EFFECTIVE DATE. This Ordinance shall take effect on the 17th day of October , 1998. PASSED and ADOPTED this 7th day of October ,1998. rp~ ATTEST: I I " _ ,) J} ;' (. C TY CLERK 1 l' I Ii) I 'I ' c /;." L .-\. \ J /\~ MAYOR APPROVED AS TO FORM & LANGUAGE & FOR EXECUTION RJA\kw(F:\A ITO\AGUR\RESOS\9 J -2757.AMD) 1st reading 9/23/98 2nd reading 10/7/98 3 41( 111M-: City Attorney ~b/~ Date ITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 .tp:\\ci. m iam i-beach. fl. us ~ITY OF MIAMI BEACH COMMISSION MEMORANDUM NO. to83-1B TO: Mayor Neisen O. Kasdin and Members of the City C mmission DATE: October 7,1998 FROM: " SUBJECT: ORDINANCES AMENDING ORDINANCE NOS. 2757; 2758; 2759; 2760; AND 2761, RESPECTIVELY, PROVIDING FOR THE GRANTING OF NON- EXCLUSIVE FRANCHISES FOR THE COLLECTION AND DISPOSAL OF SOLID WASTE GENERATED WITHIN THE CITY OF MIAMI BEACH; SAID AMENDMENTS APPROVING THE RENEWAL OF THE FRANCHISES FOR AN ADDITIONAL FIVE (5) YEAR PERIOD, AND REQUIRING THE FRANCHISEES TO CONTRIBUTE TOWARD A PUBLIC RIGHT -OF -WAY CLEANING PROGRAM, TO BE ESTABLISHED BY THE CITY; PROVIDING FOR SEVERABILITY; CODIFICATION; REPEALER; AND AN EFFECTIVE DATE. ADMINISTRATION RECOMMENDATION Adopt the Ordinances. BACKGROUND The Ordinances were approved on first reading at the September 23, 1998 City Commission meeting. The City of Miami Beach has non-exclusive franchise agreements with five solid waste haulers: Eastern Environmental Services of Florida, (EESF); Lazaros Waste Recycling; Davis Sanitation, Inc.; Browning Ferris Industries; and Waste Management, Inc. After seven years of service to the City of Miami Beach, the agreements with each of the franchisees will expire on October 18, 1998. The Administration has held a series of meetings with the franchisees, and based on those meetings, the Administration is recommending a five year franchise renewal. The City's five commercial waste haulers have agreed to the following requirements which have been incorporated into the amendments to the Solid Waste Chapter 90 of the Miami Beach City Code. (See companion Item R5F.) They are: 1) Increased fines to the franchisees for violations related to container condition and SIze; AGENDA ITEM R6~ L0-=-1-9:3 DATE 2) Increased accountability for the area surrounding the container to the property line or vvithin a radius of 10 feet regardless of whether it is included or secured within a dumpster; 3) The franchise renewal period has been reduced from seven years to five years; and 4) A 2% of annual gross contribution (payable monthly) to a "Public Right-of-Way Clean-Up Program" to be developed by the City to provide additional funds (totalling approximately $185,000 annually) to further clean the City's commercial districts. ANAL YSIS The City's Commercial Solid Waste Franchisees have been fully apprised of the City's dissatisfaction with the conditions of commercial areas of the City and the need to provide additional assistance. They have agreed to become more proactive and accountable for the conditions of the businesses they service and the City at large. They have agreed to identify accounts in need of additional service and/or large containers; as well as improving conditions at and around the accounts they serve. By requiring larger container sizes, greater pick-up frequency and additional responsibility to service accounts, the haulers gross revenue will increase and consequently the City's franchise revenue (based on annual gross franchise fee) will also increase. Based on the foregoing discussions with the haulers, the Administration is recommending renewal of the franchise agreements for a five year period. CONCLUSION The City Commission should adopt the Ordinances on second and final reading. SR~:pw f: \cmgr\$all\commemo. 98\ wasteno .cod