Loading...
Resolution 2025-33461RESOLUTION NO. 2025-33461 A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS DECEMBER 20, 2024 MEETING, DIRECTING THE ADMINISTRATION TO PROCEED WITH NEGOTIATIONS OF A LONG-TERM AGREEMENT BETWEEN THE CITY AND WASTE CONNECTIONS OF FLORIDA, INC., AND WAIVING BY 517TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82-39(A) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE SERVED BY WAIVING SUCH CONDITION, TO CONTINUE TO PROVIDE STABLE PRICING AND CONTINUED SERVICE EXCELLENCE TO OUR RESIDENTS; AND FURTHER REQUIRING THE SUCCESSFULLY NEGOTIATED AGREEMENT BE BROUGHT BACK TO THE CITY COMMISSION FOR APPROVAL. WHEREAS, in 2019, the City entered into an Agreement with Waste Connections of Florida Inc. (Waste Connections), formerly known as Choice Environmental Services of Miami, Inc., extending their contract from 2019 - 2023, with the option to renew up to three (3) additional one- year renewal terms; and WHEREAS, the City is currently in its second one-year renewal term with Waste Connections of Florida, set to expire in December 2025, with the extension renewable by mutual consent of both parties; and WHEREAS, Waste Connections has indicated to the Administration that they will NOT be able to renew their contract with the City after the extension expires in December 2025, due to the increase in cost of service; and WHEREAS, the existing contract terms as written are no longer deemed financially viable for Waste Connections; and WHEREAS, research shows that in the State of Florida (based on bids submitted to the different Florida cities for Residential Solid Waste Services), there has been an average rate increase of 50% over a five-year period, from 2019 — 2024; and WHEREAS, on November 20, 2024, at the request of Commissioner Joseph Magazine, the Mayor and City Commission (City Commission) approved a referral to the Finance and Economic Resiliency Committee (FERC) to discuss the City's Residential Solid Waste Collection Contract; and WHEREAS, additionally, to provide a presentation showing the City's current situation, stats showing recent rate increases, and staff recommendations on whether to continue with the existing agreement or procure a new one, as well as a menu of options to consider on the matter; and WHEREAS, on December 20, 2024, FERC members discussed the Residential Solid Waste Collection Contract and presentation as requested; and WHEREAS, the discussion concluded with a motion, directing the Administration to proceed with negotiations for a long-term agreement between the City and Waste Connections, and waiving by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, to continue to provide stable pricing and continued service excellence to our residents, and once negotiations are completed, bring it to the City Commission for approval. 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 Finance and Economic Resiliency Committee at its December 20, 2024 meeting, direct the Administration to proceed with negotiations of a long-term agreement between the City and Waste Connections of Florida, Inc., and waive by 5/7th vote the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, to continue to provide stable pricing and continued service excellence to our residents; and further require the successfully negotiated agreement be brought back to the City Commission for approval. PASSED AND ADOPTED this 3 day of r$brUae 2025. Steven Meiner, Mayor ATTEST: Z-V FEB 0 5 2025 Rafael E. Granado, City Clerk 410m" 0RA-iED-" ; APPROVED AS TO FORM & LANGUAGE & FO7UTION City Attey Date Resolutions - C7 H MIAMI BEACH COMMISSION MEMORANDUM TO: Honorable Mayor and Members of the City Commission FROM: Eric Carpenter, City Manager DATE: February 3, 2025 TITLE: A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND ECONOMIC RESILIENCY COMMITTEE AT ITS DECEMBER 20, 2024 MEETING, DIRECTING THE ADMINISTRATION TO PROCEED WITH NEGOTIATIONS FOR A LONG-TERM AGREEMENT BETWEEN THE CITY AND WASTE CONNECTIONS OF FLORIDA, INC., AND WAIVING, BY 5/7TH VOTE, THE FORMAL COMPETITIVE BIDDING REQUIREMENT IN SECTION 82-39(A) OF THE CITY CODE, FINDING THAT THE PUBLIC INTEREST WOULD BE SERVED BY WAIVING SUCH CONDITION, TO CONTINUE TO PROVIDE STABLE PRICING AND CONTINUED SERVICE EXCELLENCE TO OUR RESIDENTS, AND ONCE NEGOTIATIONS ARE COMPLETED, BRING IT TO THE CITY COMMISSION FOR APPROVAL. RECOMMENDATION The Administration recommends accepting the recommendation of the Finance and Economic Resiliency Committee (FERC) at its December 20, 2024 meeting, directing the Administration to proceed with negotiations for a long-term agreement between the City and Waste Connections of Florida Inc. (Waste Connections), and waiving, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, to continue to provide stable pricing and continued service excellence to our residents, and once negotiations are completed, bring it to the City Commission for approval. BACKGROUND/HISTORY In 2019, the City entered into an Agreement with Waste Connections, formerly known as Choice Environmental Services of Miami, Inc., extending their contract from 2019 - 2023, with the option to renew up to three (3) additional one-year renewal terms. The City is currently in its second one-year renewal term with Waste Connections of Florida, set to expire in December 2025. This extension can only be renewed by mutual consent of both parties. Waste Connections of Florida has indicated to the Administration that they will NOT be able to renew their contract with the City after the extension expires in December 2025, due to the increase in cost of service. The existing contract terms as written, are no longer deemed financially viable for Waste Connections. Further, research shows that in the State of Florida (based on bids submitted to the different Florida cities for residential solid waste services), there has been an average rate increase of 50% over a five-year period, from 2019 — 2024. On November 20, 2024, at the request of Commissioner Joseph Magazine, the Mayor and City Commission (City Commission) approved a referral to FERC to discuss the City's Residential Solid Waste Collection Contract. Additionally, to provide a presentation showing the City's current situation, statistics showing recent rate increases, and staff recommendations on whether to Page 690 of 1859 continue with the existing agreement or to procure a new one, as well as any other options to consider on the matter. On December 20, 2024, FERC members discussed the Residential Solid Waste Collection Contract and presentation (see attached) as requested. The discussion concluded with a motion, directing the Administration to proceed with negotiations for a long-term agreement between the City and Waste Connections, and waiving by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, to continue to provide stable pricing and continued service excellence to our residents, and once negotiations are completed, bring it to the City Commission for approval. Waiving the formal competitive bidding requirement is necessary to allow the Administration to negotiate a contract which will be brought back to the City Commission for a formal vote. FISCAL IMPACT STATEMENT No fiscal impact. CONCLUSION The Administration recommends accepting the recommendation of the FERC at its December 20, 2024 meeting, directing the Administration to proceed with negotiations for a long-term agreement between the City and Waste Connections, and waiving, by 5/7th vote, the formal competitive bidding requirement in Section 82-39(a) of the City Code, finding that the public interest would be served by waiving such condition, to continue to provide stable pricing and continued service excellence to our residents, and once negotiations are completed, bring it to the City Commission for approval. Applicable Area Citywide Is this a "Residents Right to Know" item, pursuant to City Code Section 2-17? Yes Is this item related to a G.O. Bond Protect? No Was this Agenda Item initially requested by a lobbyist which as defined in Code Sec. 2-481, includes a principal engaged in lobbying? No If so, specify the name of lobbyist(s) and principal(s): Department Public Works Sponsor(s) Commissioner Joseph Magazine Condensed Title Accept Rec/Waive Bid/Negotiate Long-term Agmt w/ Waste Connections of Florida. PW 5/7 Previous Action (For City Clerk Use Only Page 691 of 1859 i a7i,7 �1: RESIDENTIAL SOLID WASTE = _ t- .- . COLLECTION CONTRACT �r DISCUSSION FINANCE AND ECONOMIC RESILIENCY COMMITTEE MEETING December 20 2024 'PUBLIC WORKS DEPAR HISTORY In 2010, the City of Miami Beach (the City) entered into a Residential Single Family and Multi -Family Exclusive Agreement for solid waste services with Choice Environmental Services of Miami, Inc. (Choice Environmental), for a duration of five (5) years (2010- 2015). This Agreement provided the City with the option to renewal for up to three (3) additional one (1) year terms. In 2014, the City Commission authorized a First amendment to the Agreement, consenting to the name change of the contractor from Choice Environmental to Progressive Waste Solutions of FL, Inc. (Progressive Waste), with all other material terms remaining unaltered. Upon the expiration of the initial term of the Agreement, the City Commission, on July 8, 2015, approved a one (1) year extension, with a directive to the City Administration to prepare a Request for Proposals (RFP, to go out for bid for future residential disposal and waste services). Page 696 of 1859 In 2015, the Administration presented, and the City Commission approved, the issuance of RFP 2015-258-WG for the Collection and Disposal of Residential Solid Waste Yard Trash, Bulk Waste, and Operation of the City's Green Waste Facility. In 2016, the City Commission provided further direction to the Administration to negotiate and extend the contract with Waste Connections, for the remaining two, one- year extension terms, extending the contract to 2018. HISTORY Following the review and evaluation of the RFP submittals, it was deemed that Waste Connections was the best qualified firm to continue the City's Residential Solid Waste services. In 2019, the City entered into an Agreement with Waste Connections, extending the contract to 2023, with the option of up to three (3) additional one-year renewal terms, provided that the Contractor is not in default under the agreement. The City is its second one-year renewal term with Waste Connections, set to expire on December 2025. Page 697 of 1859 4 WHERE WE ARETODAY Waste Connections has already indicated to the City that they will NOT be able to renew the Agreement after December 2025 under the existing contract terms. This extension can only be renewed by mutual consent of both parties. Due to the increase in cost of service, the existing contract terms are no longer deemed financially viable for Waste Connections. Staffs research shows that in the State of Florida (based on recent bids submitted to the different Florida cities for Residential Solid Waste Services` there has been a rate increase for Residential Solid Waste Services in Florida cities, averaging 50%, from 2019 — 2024 (as shown on the next slide). Page 698 of 1859 y ANALYSIS 2024 2023 2021 Indian River County 32% Highland Beach 93% City of Crystal River 61% Islamorada 9% North Lauderdale 119% YearlyAverage Increase g Monroe County 38% 27% West Melbourne 101% Margate 32% Miami -Dade County Wilton Manors 81% Pembroke Pines 87% 2019-2024 2024 Average % Increase 32% Coral Springs 26% Wellington 28% Village of Pa:m Springs 56% Pompano Beach 54% Weston 5% City of Melbourne 38% 2019 43% City of Jacksonville svc area 2 81% City of Malabar 104% Fernandina Beach 26% City of Hypluxo 63% 37% Polk County SA2 96% City of Miramar 62% Hillsborough County 31% St. Johns County 41% 2021 Average % Increase 62% 2023 Average % Increase 56% 2021 _ 62% 2020 Davie 39% 2022 74% Port St. Lucie (Citywide) 49% El Portal 19% Lee County Area 4 67% Coral Gables 53% Southwest Ranches 187% 2020 Average % Increase 37% 2023 56% Jupiter 53% Ft. Lauderdale 97% 2024 32% City of Delray Beach 61% Riviera Beach 64% Fort Lauderdale 5o Sebastian 35% Weston 77 0'0,b 20% 40% 60`,ro 80% Tarpon Springs 53% Coconut Creek 22 2022 Average %Increase 74% Hollywood 23 ■ 2024 2023 2022 ■ 2021 2020 2019 2019 Average % Increase 431,, Page 699 of 1859 Twice a week garbage service, and 6 bulk pickups a year. This is a back door or side yard service which is used by 80% of the residents. CURRENT Waste Connections also runs the City's Green Waste Facility, located at 2800 SERVICE Meridian Avenue. This facility is open Monday through Saturday 7am-5pm and takes residential yard waste, electronic waste and textilesfree of charge to Miami LEVELS Beach residents. Page 700 of 1859 11 CURRENT RATES r $48.53 per month for single-family residential units i $44.10 per unit, per month, for Multi Family up to 8 units Fees include a $16 City service fee for single family home -owners and a $12 monthly fee for multi -family. The City service fee includes administrative costs and contractual management services by City Administration, Page 701 of 1859 L\ WA ADMINISTRATION RECOMMENDATION Based on the existing market conditions, the Administration does not recommend going out to bid for Residential Solid Waste Services. Further, the City of Miami Beach is only one of two cities in Broward and Miami - Dade County that provides this type of service, which is more labor intensive and requires the use of rear load trucks verses cart tippers picking up curbside. As depicted in a previous slide, rates have been going up significantly over the past 4 years (that have gone out to bid for Residential Solid Waste Services). The cities listed on the slide, have curbside service and not the back door or side yard service like the City of Miami Beach offers. Taking all of this into consideration the Administration recommends moving forward with a bid waiver, allowing the negotiations of a long-term Agreement with Waste Connections, to continue to provide stable pricing and continued service excellence to our residei,ts, and once negotiations are completed, bring it to the City Commission for approval. Page 702 of 1859 L►' "' 4 MLIP" a 00 1 f