2014-28681 Reso RESOLUTION NO. 2014-28681
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE
CITY MANAGER PERTAINING TO THE RANKING OF PROPOSALS,
PURSUANT TO REQUEST FOR QUALIFICATIONS NO. 2013-178SR, FOR
FRANCHISE WASTE CONTRACTORS TO PROVIDE RESIDENTIAL AND
COMMERCIAL WASTE COLLECTIONS AND DISPOSAL SERVICES (THE
RFQ); AUTHORIZING THE ADMINISTRATION TO ENTER INTO
NEGOTIATIONS FOR NEW FRANCHISE AGREEMENTS WITH THE TOP
THREE (3) RANKED PROPOSERS: WASTE MANAGEMENT INC. OF
FLORIDA, PROGRESSIVE WASTE SOLUTIONS, AND SOUTHERN WASTE
SYSTEMS LCC; ALSO AUTHORIZING THE CITY ADMINISTRATION TO
ENTER INTO NEGOTIATIONS WITH THE TOP THREE RANKED
PROPOSERS FOR A NEW AGREEMENT TO PROVIDE ADDITIONAL SOLID
WASTE/RECYCLING SERVICES AT CITY-OWNED PROPERTIES AND
-OTHER RELATED PUBLIC BENEFITS TO THE CITY WHICH, AT A-MINIMUM,
SHOULD CONTAIN THE SAME (OR MORE FAVORABLE) BUSINESS TERMS
THAN THE EXISTING SERVICES AGREEMENT; AND FURTHER
AUTHORIZING THE CITY MANAGER AND CITY CLERK TO EXECUTE THE
FRANCHISE AGREEMENTS AND THE ADDITIONAL SERVICES
AGREEMENT UPON CONCLUSION OF SUCCESSFUL NEGOTIATIONS BY
THE ADMINISTRATION, WITH SUCH AGREEMENTS HAVING AN INITIAL
TERM OF FIVE YEARS, COMMENCING ON OCTOBER 1, 20149 AND
RUNNING FOR AN INITIAL TERM OF FIVE (5) YEARS (COMMENCING ON
OCTOBER 1, 2014 AND ENDING ON SEPTEMBER 30, 2019).
WHEREAS, on October 16, 2013, the City Commission approved the issuance of
Request for Qualifications No. 178-2013SR (the RFQ); and
WHEREAS, the RFQ was issued on November 27, 2013, with an opening date of
February 7, 2014; and
WHEREAS, a pre-proposal conference was held on December 9, 2013; and
WHEREAS, the City received proposals from the following firms: -(1) 1-866-Junk-Be-
Gone; (2) Ecological Waste Systems; (3) Progressive Waste Solutions; (4) Southern Waste
Systems, LLC; (5) Sunshine Recycling Services -of SWFL; (6) Waste Management Inc. of
Florida; (7)World Waste Recycling; and G7 Holding, Inc. (d/b/a Garbageman); and
WHEREAS, on March 14, 2014, the City Manager via Letter to Commission (LTC) No.
'084-2014, appointed an Evaluation Committee (the "Committee") consisting of the following
individuals:
• Jorge Cano, Fleet Division Director, City of Miami Beach;
• Daniel Veita, Resident and Leadership Academy Alumni;
• Ramon Suarez, Finance Manager, City of Miami Beach;
• Rhonda McPherson, Assistant Director, Sanitation Department, City of Miami Beach;
• John Woodruff, Director, OBPI, City of Miami Beach; and
WHEREAS, the Committee convened on May 30, 2014, to consider proposals received
and interview the proposers; and
WHEREAS, the Committee was provided with an overview of the project; information
relative to the City's Cone of Silence Ordinance and the Government Sunshine Law; general
information on the scope of services; references; and a D&B report for each responsive
proposal; and
WHEREAS, the Committee was instructed to score and rank the proposers in
accordance with the evaluation criteria in the RFQ and, following deliberations, ranked the
proposers as follows: (1); Waste Management, Inc. of Florida; (2) Progressive Waste Solutions;
(3) Southern Waste Systems, LLC; (4) Ecological Waste Systems; (5) Sunshine Recycling
Services of SWFL; and (6) 1-866-Junk-Be-Gone; and
WHEREAS, after reviewing all the submissions and the Evaluation Committee's
rankings of proposals received, the City Manager exercised his due diligence and recommends
'`that the Mayor and the City Commission enter into negotiations with-`the top three (3) ranked
proposers: Waste Management Inc. of Florida, Progressive Waste Solutions, and Southern
Waste Systems LCC.
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 Manager pertaining to the ranking of proposals, pursuant to
Request for Qualifications No. 2013-178SR for the Franchise Waste Contractors to provide
Residential and Commercial Waste Collections and Disposal Services (the RFQ); authorize the
Administration to enter into negotiations for new franchise agreements with the top three (3)
ranked proposers: Waste Management Inc. of Florida, Progressive Waste Solutions, And
Southern Waste Systems Llc; also authorize the Administration to enter into negotiations with
the top three ranked proposers for a new agreement to provide additional solid waste recycling
services at City-owned properties and other related public benefits which, at a minimum, should
contain the same (or more favorable) business terms than the existing services agreement; and
further authorizing the City Manager and City Clerk to execute the franchise agreements and
the additional services agreement upon conclusion of successful negotiations by the
Administration, with such agreements to commence on October 1, 2014, and to run for an initial
term of five (5) years (commencing on October 1, 2014 and ending on September 30, 2019).
PASSED AND ADOPTED this o?3 day of �(�/ 2014.
ATTES
R ael Gran I Lev rye or
TAAGENDA\201_\Jun WOne 11 er e&q 78-2013-Resol io
APPROVED AS TO
1J`:'' ORF'. ORATED: FORM&LANGUAGE
&FOR EXECUTION
•._? ��.j .-�:' Date
��r;: City Attomey
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The Mayor And City Commission Of The City Of Miami Beach, Florida, Accepting The
Recommendation Of The City Manager Pertaining To The Ranking Of Proposals, Pursuant To Request For
Qualifications(RFQ)No.2013-178SR,For The Franchise Waste Contractors To Provide Residential And Commercial
Waste Collections And Disposal.
Key Intended Outcome Supported:
To provide the essential service of solid waste removal to City residents and businesses.
Supporting Data(Surveys, Environmental Scan,etc: N/A
Item Summary/Recommendation:
At the July 13, 2011 City Commission Meeting, the City Administration requested approval to issue a Request For
Qualifications for additional franchise waste contractors(the RFQ).RFQ No.2013-178SR was issued on November 27,
2013,with an opening date of February 7, 2014.A pre-proposal conference to provide information to the proposers
submitting a response was held on December 9, 2013.The City received eight(8)proposals.
As a result of the due diligence performed by the Administration,G7 Holding,Inc(d/b/a Garbgeman)and World Waste
Recycling were deemed non-responsive because they both failed to provide evidence of compliance with City Code
Section 90-229 (a)(3), which states that, pursuant to the minimum requirements for selection of a franchise waste
contractor, an applicant for a franchise must have the potential for a significant amount of business within the City,
comprised of either a minimum of 50 committed accounts within the City,or in the alternative 50 comparable committed
accounts from outside of the City.This requirement was also set forth as a minimum requirement in the RFQ.
As it pertains to the City's evaluation and selection of franchise waste contractors,the term"committed accounts"has
been historically interpreted by the City to mean that,in order to demonstrate compliance with Section 90-229(a)(3),an
applicant for a franchise must show evidence of at least 50 current,active accounts(either within or outside of the City)
for which the applicant is currently providing solid waste collection and disposal services.
On March 14, 2014, the City Manager via Letter to Commission (LTC) No. 084-2014, appointed an Evaluation
Committee (the "Committee")which convened on May 30, 2014 to consider proposals received and interview the
proposers.The Committee was provided an overview of the project,information relative to the City's Cone of Silence
Ordinance and the Government Sunshine Law.
RECOMMENDATION
After reviewing the submissions and the Evaluation Committee's rankings,the City Manager exercised his due diligence
and is recommending that the Mayor and the City Commission enter into negotiations for franchise agreements with the
top three(3)ranked proposers: Waste Management Inc.of Florida;Progressive Waste Solutions;and Southern Waste
Systems LCC.
In addition to executing a franchise agreement with the City,City's current solid waste franchises are also parties to a
service agreement with the City which,in addition to their duties under(and the respective terms and conditions of)the
franchise agreement, includes the provision of in kind services, such as servicing public facilities and streets,
hazardous material pickup events, additional fees (based on market share of$390,000), a monetary contribution
($75,000)for educational programs,a contribution for environmental programs(currently$25,000),and one and a half
percent(1.5%)of gross revenues for green initiatives and other items(the"Additional service agreement").
The City Manager recommends that,in addition to authorizing negotiations with the top three(3)ranked proposers for
franchise agreements that the City Commission further authorize,as a condition of issuance of each franchise,to also
negotiate an additional service agreement which,should contain the same(or more favorable)business terms that the
current agreement.
The Manager further recommends that,if successful in negotiations,the three(3)franchise agreements and additional
service agreements shall commence on October 1,2014.
ADOPT THE RESOLUTION.
Advisory Board Recommendation:
Financial Information:
Source of Amount Account
Funds: 1 N/A N/A
2
OBPI Total
Financial Impact Summary:
City Clerk's Office Legislative Tracking:
Alex Denis, Extension 6641
Sign-Offs:
e artment Director Assistant Cit anager City ana er
YZ 11\
A EC MT" JLM
T:\AG 2014\July\Procurement\RFP-178-2013 Waste r c ise-Summary.doc
AGENDA ITEM
M1AM1BEr"t%..H`
DATE 7 3
MIAMI BEACH
City of Miami Beath, 1700 Convention Center Drive,Miami Beach, Florida 33139,www.miamibeachfl.gov
CkANMDCITY ION MEMORANDUM
TO: Mayor Philip Levine and Members ommission
FROM: Jimmy L. Morales, City Manager
DATE: July 23, 2014
SUBJECT: A RESOLUTION OF THE MAYO COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY
MANAGER PERTAINING TO THE RANKING OF PROPOSALS, PURSUANT TO
REQUEST FOR QUALIFICATIONS NO. 2013-178SR, FOR FRANCHISE WASTE
CONTRACTORS TO PROVIDE RESIDENTIAL AND COMMERCIAL WASTE
COLLECTIONS AND DISPOSAL SERVICES (THE RFQ); AUTHORIZING THE
ADMINISTRATION TO ENTER INTO NEGOTIATIONS FOR NEW FRANCHISE
AGREEMENTS WITH THE TOP THREE (3) RANKED PROPOSERS: WASTE
MANAGEMENT INC. OF FLORIDA, PROGRESSIVE WASTE SOLUTIONS, AND
SOUTHERN WASTE SYSTEMS LCC; ALSO AUTHORIZING THE CITY
ADMINISTRATION TO ENTER INTO NEGOTIATIONS WITH THE TOP THREE
RANKED PROPOSERS FOR A NEW AGREEMENT TO PROVIDE ADDITIONAL
SOLID WASTE/RECYCLING SERVICES AT CITY-OWNED PROPERTIES AND
OTHER RELATED PUBLIC BENEFITS TO THE CITY WHICH, AT A MINIMUM,
SHOULD CONTAIN THE SAME (OR MORE FAVORABLE) BUSINESS TERMS
THAN THE EXISTING SERVICES AGREEMENT; AND FURTHER AUTHORIZING
THE CITY MANAGER AND CITY CLERK TO EXECUTE THE FRANCHISE
AGREEMENTS AND THE ADDITIONAL SERVICES AGREEMENT UPON
CONCLUSION -OF SUCCESSFUL NEGOTIATIONS BY THE ADMINISTRATION,
WITH SUCH AGREEMENTS HAVING AN IN]Ti AL TERM OF FIVE YEARS,
COMMENCING ON OCTOBER 1, 2014, AND RUNNING FOR AN INITIAL TERM
OF FIVE (5) YEARS (COMMENCING ON OCTOBER 1, 2014, AND ENDING ON
SEPTEMBER 30, 2019).
ADMINISTRATION RECOMMENDATION
Adopt the Resolution.
KEY INTENDED OUTCOME SUPPORTED
To provide the essential service of solid waste removal to City residents and businesses.
BACKGROUND
The City currently has two (2) franchises for residential and commercial solid waste collection
and disposal with Waste Management of Dade County and Progressive Waste Solutions; both
of which will expire on September 30, 2014. At the July 13, 2011 City Commission Meeting,
the City Administration requested approval to issue a Request For Qualifications for franchise
waste contractors for the City. On October 16, 2013, the City Commission approved the
issuance of Request For Qualifications No. 178-2013SR, as amended (the RFQ).
Commission Memorandum —RFQ# 178-2013 Waste'Franchise
July 23, 2014
Page 2
RFP PROCESS
The RFQ was issued on November 27, 2013, with an opening date of February 7, 2014. A pre-
proposal conference to provide information to the proposers submitting a response was held
on December 9, 2013. The City received proposals from the following firms:
1. 1-866-Junk-Be-Gone;
2. Ecological Waste Systems;
3. Progressive Waste Solutions;
4. Southern Waste Systems, LLC;
5. Sunshine Recycling Services of SWFL;
6. Waste Management Inc. of Florida;
7. World Waste Recycling; and
8. G7 Holding, Inc. d/b/a Garbageman.
As a result of the due diligence performed by the Administration, G7 Holding, Inc (d/b/a
_ Garbgeman) and World Waste Recycling were deemed..,non-responsive because they both
failed to provide evidence of compliance with City Code Section 90-229 (a)(3), which states
that, pursuant to the minimum requirements for selection of a franchise waste contractor, an
applicant for a franchise must have the potential for a significant amount of business within the
City, comprised of either a minimum of 50 committed accounts within the City or, in the
alternative, 50 comparable committed accounts from outside of the City. This requirement was
also set forth as a minimum requirement in the RFQ.
As it pertains to the City's evaluation and selection of franchise waste contractors, the term
"committed accounts" has been historically interpreted by the City to mean that, in order to
demonstrate compliance with Section 90-229 (a)(3), of the Code, an applicant for a franchise
must show evidence of at least 50 current, active accounts (either within or outside of the
City)for which the applicant is currently providing solid waste collection and disposal services.
On March 14, 2014, the City Manager via Letter to Commission (LTC) No. 084-2014,
appointed an Evaluation Committee (the "Committee") consisting of the following individuals:
• Jorge Cano, Fleet Division Director, City of Miami Beach;
• Daniel Veita, Resident and Leadership Academy Alumni;
• Ramon Suarez, Finance Manager, City of Miami Beach;
• Rhonda McPherson, Assistant Director, Sanitation Department, City of Miami Beach;
and
• John Woodruff, Director, OBPI, City of Miami Beach.
The Committee convened on May 30, 2014, to consider proposals received and interview the
proposers. The Committee was provided an overview of the project; information relative to the
City's Cone of Silence Ordinance and the Government Sunshine Law; general information on
the RFQ scope of services; references; and a D&B report for each responsive proposer.
Additionally, the Committee engaged in a question and answer session after the presentation
of each proposer.
The Committee was instructed to score and rank each proposal pursuant to the evaluation
criteria established in the RFQ, as follows:
Commission Memorandum —RFQ# 178-2013 Waste Franchise
July 23, 2014
Page 3
Total Points Evaluation Criteria
25 Proposer Qualifications, including:
Minimum Qualifications
Experience of Firm and Team
Financial Capacity
Other Qualifications pursuant to information submitted in
Appendix A
50 Scope of Services and Methodology, including:
Scope of Services Proposed
Approach and Methodology
Customer Service Plan
Value-Added Services and Public Benefits
25 Environmental Sustainability(Green) Initiatives
Local Preference: Procurement staff may assign an additional five (5) points to proposers
which are a Miami Beach-based vendor, as defined in the City's Local Preference Ordinance.
No proposers were eligible for local preference.
Veterans Preference: Procurement staff may assign an additional five (5) points to proposers,
which are a small business concern owned and controlled by a veteran(s) or a service-
disabled veteran business enterprise, as defined in the City's Veterans Preference Ordinance.
No proposers were eligible for Veterans preference.
The Committee's final rankings were as follows:
RFQ#2013-178 Waste Jorge Daniel Ramon Rhonda John
Franchise Cano Veitia Suarez McPherson Woodruff LOW
AGGREGATE
TOTALS
Waste Management Inc of
Florida 1 92 2 94 1 87 1 100 1 75 6 1
Progressive Waste Solutions 3 85 1 96) 2 80 2 94 1 (75) 9 2
Southern Waste Systems
LLC 290 479 280 375 370 143
Ecological Waste Systems 4 82 3 85 5 50 4 57 5 40 21)4
Sunshine Recycling
Services of SW FL 5 80 5 70 4 52 5 36 4 55 (23)5
1-866 Junk-Be-Gone 6 50 6 40 6 30 6 22 6 15 (30)6
MANAGER'S DUE DILIGENCE & RECOMMENDATION
After reviewing the Evaluation Committee's rankings, the City Manager exercised his due
diligence in his review of the proposals and is recommending that the Mayor and the City
Commission enter into negotiations for new franchise agreements, for an initial term of five (5)
years, commencing on October 1, 2014, with the top three (3) ranked proposers: Waste
Management Inc. of Florida; Progressive Waste Solutions; and Southern Waste Systems LLC.
It should be noted that during the course of his due diligence review, the City Manager was
made aware that Ecological Waste Systems is currently in default of its contract with the City
of Hollywood (as noted in the attached Exhibit "A"). Pursuant to Section 90-229 (a)(2) of the
City Code, applicants for franchises (i.e. proposers) are required to provide certification that
the applicant has never defaulted on any government contract or bid award. In its response to
the RFQ, Ecological Waste Systems did not disclose the aforestated default to the City;
i
Commission Memorandum - RFQ# 178-2013 Waste Franchise
July 23, 2014
Page 4
therefore, it does not comply with the minimum qualifications in Code Section 90-229 (a)(2), or
the RFQ.
In addition to having franchise agreements with the City, the City's current solid waste
franchisees are also parties to a service agreement with the City which (in addition to their
duties under, and the respective terms and conditions of, the franchise agreement) includes
the provision of in-kind services, such as servicing public facilities and streets, hazardous
material pickup events, additional fees (based on market share of $390,000), a monetary
-contribution ($75,000) for educational programs, a contribution for environmental programs
(currently $25,000), and one and a half percent (1.5%) of gross revenues for green initiatives
and other items (the "Additional Services Agreement").
The City Manager further recommends that, in addition to authorizing negotiations with the top
three (3) ranked proposers for franchise agreements, that the City Commission further
authorize him, as a condition of issuance of each franchise, to also negotiate a new Additional
Service Agreement with the three (3) recommended proposers which should, at a minimum,
contain the same (or more favorable) business terms that the current service Agreement. Like
the franchise agreements, the term of the Additional Services Agreement is intended to run
concurrent with the franchises, commencing on October 1, 2014, and ending on September
30, 2019.
CONCLUSION
The Administration recommends that the Mayor and City Commission of the City of Miami
Beach, Florida accept the recommendation of the City Manager pertaining to the ranking of
proposals, pursuant to Request for Qualifications No. 2013-178SR for Franchise Waste
Contractors to Provide Residential and Commercial Waste Collection and Disposal services
(the RFQ); authorize the Administration to enter into negotiations for new franchise
agreements with the top three (3) ranked proposers: Waste Management Inc. of Florida,
Progressive Waste Solutions, And Southern Waste Systems Llc; also authorize the City
Manager to enter into negotiations with the top three ranked proposers for a new agreement to
provide additional solid waste recycling services at City-owned properties and other related
public benefits to the City which, at a minimum, should contain the same (or more favorable)
business terms than the existing services agreement; and further authorize the City Manager
and City Clerk to execute the franchise agreements and the Additional Services Agreement
upon conclusion of successful negotiations by the Administration, with such agreements to
commence on October 1, 2014, and to run for an initial term of five (5) years (commencing on
October 1, 2014 and ending on September 30, 2019).
JLM/OAD/ /ME
T:\AGENDA\2014\July\ curement\RFP-178-2013 Waste Franchise - Memo.doc
CITY of HOL _, I .A
61
DIAMONEK.i
W THE Office of the City Attorney
ALA
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)0 11 T -{itllv%Vtud Blvd.
rik oRAIf.�" Punte(`)S 1)921-3:j)� Fax O i 21-31)81
Jeffrey P.Sheffel
C,in'rlrrurn��
YOU R UD
/ern ern
April 30, 2014
Platte River Insurance Company p
4610 University Avenue
Madison, WI 53705
RE: Ecological Paper Recycling, Inc. 2350 NW 149`1' Street Opa I.ocka, FI 33054
Payment and Performance Bond No. 41279257
Dear Sir/Madam:
This letter will serve as written notification of my client's claim (the '`City of Hollywood,
Florida) against the above-referenced bond.
On July 3, 2013, the City of Hollywood, Florida and Ecological Paper Recycling, Inc.
("Vendor") entered into an agreement for tile. Vendor to provide recyclables processing services
to which your company has issued the above-referenced Performance Bond. As part of the
agreement, amongst many obligations, the Vendor was required to provide monthly reports to
the City (see Sections 6.1.5 and 6.18 of the Agreement) as well as remit payment of revenue to
the City of Hollywood (See Section 6.18).
As of January 15, 2014, the Vendor has failed to perform its obligations with regard to
submitting its monthly reports and has not remitted the required revenue payments to the City for
the months of December, 2013 through present. Pursuant to the terms and conditions of the
Agreement, the Vendor is in default and the City has notified the Vendor numerous times of its
failure to perform. Additionally, attempts were made to meet with the vendor to no avail.
t
In accordance with the Agreement, liquidated damages are also being assessed and have accrued
against the Vendor and the amount due and owing �my client is as set forth in the attached
spreadsheet.
9
orr n•Iission: we are dedicared io providing municipal services forour diverse c:omnlunin•in an a[mosphere of cooperation,iourres)•all rc:�pccr.
Wle do this hr cnsurint all who lk-C.work and plan in nce(.:it,•of 1-1)lltwood ell,ov a llwh qualm,of lilt.
"An Equal opportunity and Service 1)rovider Agency"
Paue 2
Ecological Paper Recycling, Inc
April 29, 2014
Thus, my client is formally requesting that Platte River Insurance Company, as the surety for the
above-referenced bond, remit payment to the City of Hollywood, Florida in the total amount of
$247,200.12 (which includes the amount due and owing, the penalty charges).
Please make the check payable to the City of Hollywood and send same to the address listed
below.
Very truly yours,
Debra-Ann Reese
Sr. Asst. City Attorney
cc: Cathy Swans on-Rivenbark, City Manager
Jeffrey P. Sheffel, City Attorney
Sylvia Glazer, Director of Public Works
Joel Wasserman, Director of Procurement Services
William Hernandez, Ecological Paper Recycling, Inc.
Craig M. Dorne, PA (Registered Agent for Ecological Paper Recycling, Inc.)