033-1998 LTCCITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.fl.us
L.T.C. No. 33-1998
LETTER TO COMMISSION
March 11, 1998
TO:
FROM:
Mayor and Member: ~e City, Commission
Sergio Rodrigue~_,,~,
City Manager
SUBJECT: BFI ResidentialWaste Contract
When Browning-Ferris Industries (BFI) was awarded the residential waste hauling (RFP #63-96/98)
in April of 1997, a raise in fee from $13.37 per residential unit to $15.80 was approved. (It should
be noted that BFI held the previous contract at the lower rate). This rate increase is now costing the
City of Miami Beach $2.43 per unit, per month, or $188,868 annually. In an effort to offset this
deficit, the Administration has proposed the first residential rate increase for disposal of garbage and
trash in seven years. This increase merely offsets or "passes through" the increased charge from
BFI; without it, the department operates at a deficit. This agreement expires on October 18, 1998,
and the City has the ability to terminate the contract at that time (with 60 days notice), or extend it
through April 13, 2000.
On March 4, 1998, the City Commission directed the Administration to meet with BFI for the
purpose of assessing the feasibility of "rolling back" the increased fee charged to the City. On
Monday, March 9, 1998, members of the Administration met with representatives of BF! to discuss
the residential waste contract. The City Commission's fee "roll back" request was posed. BFI is
preparing a response to be received prior to the City Commission meeting. As soon as this
information is received, it will be analyzed by the Administration, and transmitted to the City
Commission. Representatives from BFI will be present at the Commission meeting of March 18,
1998 to answer questions.
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