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R5C-Amend Solid Waste Ordinance -City Commission-Condensed Title: 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 "Frenchise; 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. Issue: 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 finar offers would require an amendment to the existing Service Agreement between the City and the franchise contractors. At the September 12, 2012 Commission Meeting, the City Commission approved the Ordinance on First Reading as amended. A Second Reading and Public Hearing is scheduled for October 24, 2012. THE CITY ADMINISTRATION RECOMMENDS APPROVING THE ORDINANCE AMENDMENT ON SECOND READING PUBLIC HEARING. At the September 12, 2012 City Commission Meeting, the City Administration approved the · Ordinance on First Readin as amended. Financial Information: Source of Account funds: OBPI Financial Impact Summary: H 263 AGENDA ITEM_.:..!..,;:..,.-,...,..--- DATE ___::...:;__,;,__,j...__;,...;;;· City of Miami Beach, 1 700 Convention Center Drive, Miami Florida 33139, COMMISSION MEMORANDUM Mayor Matti Herrera Bower and Members of th Commission FROM: Kathie G. Brooks, Acting City DATE: October 24, 2012 SECOND READING PUBLIC HEARING 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 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 8, 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 three (3) solid waste franchise contractors. The Commission referred the item to the Finance and Citywide Projects Committee (F&CWPC). 264 October 24, 2012 City Commission Memo Waste Hauler Franchise Agreement Page 2of2 At the January 19, 2012 F&CWPC meeting, following discussion on whether to issue the RFQ, 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. At the September 12, 2012 Commission Meeting, the City Commission approved the Ordinance amendment on First Reading. A Second Reading and Public Hearing is scheduled for October 24,2012. 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 Second Reading Public Hearing. JGG/FHB/JJF T:\AGENDA\2012\10-24-12\Waste Hauler Franchise Agreement MEMO.docx 265 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 Article 3, Section 90-230 of the Beach City Code is hereby amended as follows: Chapter 90. SOLID WASTE * * * Article IV. PRIVATE WASTE CONTRACTORS * * * Division 3. Franchise * * * Effective May 1, 2010, franchise agreements shall have an initial term five years. As to those certain franchise between the city and franchise waste contractors in effect as May 1, 2010, but having an initial three-year term which commenced on October 1, said initial term shall be extended of October i , three to five years (with the five-year term commencing 266 as At the expiration of the initial term of a agreement,er earlier revocatio~ef thefranehlse, the city commission may choose, in its sole discretion, to accept applications for new franchise waste or, in the alternative, to renew an existing franchise agreement for an additional three-year renewal term. SECTION 2. CODIFICATION It is intention of the Mayor and City Commission of City of Miami Beach, and it is hereby ordained that the provisions of 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 SECTION 4. SEVERABILITY If any section, subsection, sentence, clause, phrase or of this Ordinance for 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 portions of this Ordinance. SECTION 5. EFFECTIVE DATE This Ordinance shall effect on the _____ day of----------~ 2. PASSED and ADOPTED ___ day of ____ , 2012. ATTEST: MATTI HERRERA BOWER, MAYOR RAFAEL E. GRANADO, CITY CLERK F:\WORK\$ALL\(1) Etv1PLOYEE FOLDERS\JAY 267 14NE OCTOBER 11, 2012 AC CITY OF MIAMI BEACH NOTICE OF PUBLIC HEARINGS that a public Florida, in the Chambers, 3rd Floor. October 24, 2012, to consider the following: 11:15 a,m, Ordinance Amending The Miami Beach Entited "Private Waste Contractors." By the Mayor and City Commission of the Ci~y of Miami Beach. Center Drive, Miami Beach. Florida. on Wednesday, ''Term Of Franchise _Agreements: Term: Renewa' T:; Entitled F"'"''n'tir'n Of The initial Term Of Agreement, For Up To An A Franchise Agreement, The C1ty fviay Agree To Renew Term Of An Existing Additional T1ree ;3) Renewal Term. Inquiries may be directed to the Public Works Department (305) 673·7080, I~JTERESTED PARTIES are invited to appear at th,s meeting, or be represented by an or to their views in addressed to the City Commission, c/o thB City c~erk, i 700 Convention Center Drive, st Floor, M;ami Beach, 33' 39. of these items are available for inspection normal bus. ness hours in Citv Clerk's Office, 700 Convention Drive, 1st F!oor, Hall, Beach, Florida 39, This meeting may be continued, and under E;UCh circumstances additional legal r£Jtice not be provided. Rafael E. Granedo, City Clerk City of Miami Beach Pursuant to Section 286.0' 05, Fla. Stat, the City hereby adv;ses the public that if a decides to appeal eny decision made the City Commission with respect to any matter considered at its meeting or its such must ensure that a record o' the proceedings is made, which record includes the and evidence upon the is to be based. This notice does not constitute consent by the City for the introduction or of otherwise or irrelevant evidence, nor does it authorize challenges or not othervvise allowed by law. To request this material in accessible format, sign or any accommodatio'1 to rev>ew document or advance at (305) 6 73--7 4 ~ 1 (vo1ce) or Ad #747 interpreters, information on access for persons with disabilities, and/ 268 Citv--<mGlPSOfEid proceeding, please contact us five days in Service at 71 i.