R5H-Amend Solid Waste Ordinance -City Commission-Condensed Title:
An Ordinance Of The Mayor And City Commlssion Of The City Of Miami Beach, Florida, Amending The
Miami Beach City Code By Amending Chapter 90, Entitled "Solid Waste," By Amending Article IV, Entitled
"Private Waste Contractors," By Amending Division 3, Entitled "Franchise; By Amending Section 90-230
Entitled "Term Of Franchise Agreements; Initial Term; Renewal Term,« To Provlde That Prior To The
Expiration Of The Initial Term Of A Franchise Agreement, The City Commission May Agree To Amend
The Renewal Term Of An Existing Franchise Agreement, Under Certain Circumstances, For Up To An
Additional Three Year Renewal Term; And Providing For Repealer, Severability, Codification, And An
Effective Date.
orted:
entia! service of solid waste removal to City residents and businesses.
Supporting Data (Surveys, Environmental Scan, etc.): N/A
Issue: ~~~----~~~~~--~~------~~~~------~--~--~~~~--~--~ II the Mayor and the City Commission approve the Ordinance amendment on first reading and
ule a second readin ublic hearin
Item Summary/Recommendation:
At the May 9, 2012 Commission Meeting, the City Administration recommended that the City Commission
evaluate the additional public benefits and/or contributions proposed by the existing three (3) solid waste
franchise contractors, and the conditions for receipt of such benefits, and determine an acceptable course
of action.
Per Resolution No. 2012-27904, the City Commission approved not proceed to issue the RFQ for the
fourth solid waste franchise contractor, and agree to maintain the number of franchise contractors at three
(3), to accept exercising the renewal of the existing contract for one-year only to expire September 30,
2015. In consideration thereof, the solid waste franchise contractors agreed to provide $390,000 per year
starting immediately, plus $25,000 dedicated for environmental programs (ECOMB) through the life of the
extension, in addition to what is already being contributed.
The exisiting agreements have an initial five (5) year term that expires on September 30, 2014. The
action taken was to extend the contract an additional year prior to the expiration of the contract. In order
for the City to exercise an early renewal of the franchise agreements, the City Commission would also
have to amend Section 90-230 of the City Code, which currently only allows for the renewal of a franchise
agreement upon expiration of the initial term.
Additionally, the additional public benefits and other considerations in the "best and final" offers would
require an amendment to the existing Service Agreement between the City and the franchise contractors.
THE CITY ADMINISTRATION RECOMMENDS APPROVING THE ORDINANCE AMENDMENT ON
FIRST READING AND SCHEDULE A SECOND READING PUBLIC HEARING.
Adviso Board Recommendation:
Financial Information:
Amount
MIAMI BEACH
Account
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Approv
AGENDA ITEM f?S" H
DATE 9-/2~/l
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachll.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the City Co
FROM: Kathie G. Brooks, Acting City Manager
DATE: September 12, 2012
SUBJECT: AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING THE MIAMI BEACH CITY CODE BY
AMENDING CHAPTER 90, ENTITLED "SOLID WASTE," BY AMENDING
ARTICLE IV, ENTITLED "PRIVATE WASTE CONTRACTORS," BY AMENDING
DIVISION 3, ENTITLED "FRANCHISE," BY AMENDING SECTION 90·230
ENTITLED ''TERM OF FRANCHISE AGREEMENTS; INITIAL TERM; RENEWAL
TERM," TO PROVIDE THAT PRIOR TO THE EXPIRATION OF THE INITIAL
TERM OF A FRANCHISE AGREEMENT, THE CITY COMMISSION MAY AGREE
TO AMEND THE RENEWAL TERM OF AN EXISTING FRANCHISE
AGREEMENT, UNDER CERTAIN CIRCUMSTANCES, FOR UP TO AN
ADDITIONAL THREE YEAR RENEWAL TERM; AND PROVIDING FOR
REPEALER, SEVERABILITY, CODIFICATION, AND AN EFFECTIVE DATE.
ADMINISTRATION RECOMMENDATION
The City Administration recommends approving the Ordinance amendment on first reading and
schedule a second reading public hearing.
BACKGROUND
The City currently has three (3) contracts for solid waste/recycling collection and disposal with
Waste Management of Dade County, Waste Services, Inc., and Choice Environmental Services
of Miami which all expire September 30, 2014. The existing contractors provide in-kind and
cash benefits to the City in the amount of $1,618,750 over a five (5) year period, or $323,750
per year.
At the July 13, 2011 Commission Meeting, the City Administration requested approval to issue a
Request For Qualifications (RFQ) for a fourth solid waste franchise contractor to provide
residential and commercial solid waste collection and disposal services. This request was made
after one of the existing four (4) solid waste franchise contractors, General Hauling Services,
Inc., was acquired by Waste Services, Inc., leaving the City with three (3) solid waste franchise
contractors. The Commission referred the item to the Finance and Citywide Projects Committee
(F&CWPC).
At the January 19, 2012 F&CWPC meeting, following discussion on whether to issue the RFQ,
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September 12, 2012
City Commission Memorandum
Waste Hauler Franchise Agreement
Page 2 of 2
the Committee recommended that it be brought back to the Committee at the same time as the
City's proposed Recycling Ordinance. The three existing franchise contractors have requested
that an RFQ not be issued.
The item was discussed again at the April 19, 2012 F&CWPC meeting, and the
recommendation was to bring the discussion to the full City Commission to determine whether
or not to issue the RFQ or accept additional public benefits from the contractors in exchange for
keeping it to the three (3) existing contractors.
At the May 9, 2012 Commission Meeting, Resolution No. 2012-27904 was adopted as
amended. A motion was made "to accept exercising the renewal/extension option for one-year
only until September 2015, in consideration that the firms will provide $390,000 per year starting
immediately, plus $25,000 dedicated for environmental programs (ECOMB) through the life of
this extension, in addition to what is already being contributed."
It was noted that, in order for the City to exercise an early renewal of the franchise agreements,
the City Commission would also have to amend Section 90-230(b) of the City Code, which
currently only allows for the renewal of a franchise agreement upon expiration of the initial term.
ANALYSIS
After reviewing the existing ordinance regarding extending contracts for the solid waste
franchise contractors, it was determined that the ordinance needed to be amended to effectuate
the vote taken by the City Commission.
CONCLUSION
The City Administration recommends approving the Ordinance amendment on first reading and
schedule a second reading public hearing.
JGG/FHB/JJF
T:\AGENDA\2012\9-12-12\Waste Hauler Franchise Agreement. MEMO.docx
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ORDINANCE NO. -----
AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AMENDING THE MIAMI BEACH CITY CODE BY
AMENDING CHAPTER 90, ENTITLED "SOLID WASTE," BY AMENDING
ARTICLE IV, ENTITLED "PRIVATE WASTE CONTRACTORS," BY
AMENDING DIVISION 3, ENTITLED "FRANCHISE," BY AMENDING SECTION
90-230 ENTITLED "TERM OF FRANCHISE AGREEMENTS; INITIAL TERM;
RENEWAL TERM," TO PROVIDE THAT PRIOR TO THE EXPIRATION OF
THE INITIAL TERM OF A FRANCHISE AGREEMENT, THE CITY
COMMISSION MAY AGREE TO RENEW THE TERM OF AN EXISTING
FRANCHISE AGREEMENT, FOR UP TO AN ADDITIONAL THREE YEAR (3)
RENEWAL TERM; AND PROVIDING FOR REPEALER, SEVERABILITY,
CODIFICATION, AND AN EFFECTIVE DATE.
NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDA, as follows:
SECTION 1.
That Chapter 90, Article IV, Division 3, Section 90-230 of the Miami Beach City Code is
hereby amended as follows:
Chapter 90.
SOLID WASTE
* * *
Article IV. PRIVATE WASTE CONTRACTORS
* * *
Division 3. Franchise
* * *
Sec. 90-230 Term of franchise agreements; initial term; renewal term
(a) Effective May 1, 2010, franchise agreements shall have an initial term of five years. As to
those certain franchise agreements between the city and franchise waste contractors in effect as of
May 1, 2010, but having an initial three-year term which commenced on October 1, 2009, said initial
term shall be extended from three to five years (with the five-year term commencing retroactively as
of October 1, 2009).
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(b) At Prior to the expiration of the initial term of a franchise agreement,--Gf earlier revocation of
the franchise, the city commission may choose, in its sole discretion, to accept applications for new
franchise waste contractors, or, in the alternative, to renew an existing franchise agreement for up to
an additional three-year renewal term.
SECTION 2. 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 part of the
Code of the City of Miami Beach, Florida. The sections of this ordinance may be renumbered or
re-lettered to accomplish such intention, and the word "ordinance" may be changed to "section",
"article" or other appropriate word.
SECTION 3. REPEALER
All ordinances or parts of ordinances in conflict herewith are and the same are hereby
repealed.
SECTION 4. SEVERABILITY
If any section, subsection, sentence, clause, phrase or portion of this Ordinance is, for
any reason, held invalid or unconstitutional, such portion shall be deemed a separate, distinct
and independent provision and such holding shall not affect the validity or constitutionality of the
remaining portions of this Ordinance.
SECTION 5. EFFECTIVE DATE
This Ordinance shall take effect on the day of , 2012.
PASSED and ADOPTED this day of , 2012.
ATTEST:
MATTI HERRERA BOWER, MAYOR
RAFAEL E. GRANADO, CITY CLERK
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