99-23273 RESO
RESOLUTION NO. 99-23273
A RESOLUTION OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE ADMINISTRATION
TO NEGOTIATE AGREEMENTS WITH THE FOUR EXISTING NON-
EXCLUSIVE FRANCHISE LICENSEES: BROWNING-FERRIS INDUSTRIES;
DAVIS SANITATION, INC.; IMPERIAL SANITATION SERVICE; AND WASTE
MANAGEMENT OF DADE COUNTY-NORTH, TO PROVIDE ADDITIONAL
SANITATION SERVICES TO THE CITY, AT NO COST TO THE CITY, IN
CONSIDERATION OF THE CITY'S AGREEMENT, IN THE EVENT THE CITY
IS ABLE TO SUCCESSFULLY NEGOTIATE SAID AGREEMENTS, TO LIMIT
THE NUMBER OF COMMERCIAL HAULERS TO FOUR (4), FOR THE
DURATION OF SAID AGREEMENTS.
WHEREAS, the City currently has four non-exclusive franchises for the collection of solid waste
from commercial properties in the City; and
WHEREAS, the Sanitation Department currently has an accumulated deficit in its Enterprise Fund
of approximately $800,000, and is currently operating with a deficit; and
WHEREAS, the existing four non-exclusive franchise licensees: Browning-Ferris Industries; Davis
Sanitation, Inc.; Westside Sanitation; and Waste Management of Dade County-North have expressed an
interest in providing additional sanitation services to the City, in exchange for not increasing the number
of commercial haulers; and
WHEREAS, the provision of additional services to the City could generate a considerable cost
savings to the City in internal operations and disposal fees.
WHEREAS, the four non-exclusive franchises will not raise fees as a result of this agreement.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY
COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, that the Administration is authorized
to negotiate agreements with the four existing non-exclusive franchise licensees: Browning-Ferris
Industries; Davis Sanitation, Inc.; Imperial Sanitation Service; and Waste Management of Dade County-
North, to provide additional sanitation services to the City, at no cost to the City, in consideration of the
City's agreement, in the event the City is able to successfully negotiate said agreements, to limit the number
of commercial haulers to four (4), for the duration of said agreements; said agreement to be reviewed by
the Mayor and City Commission bi-annually, to insure that fees charged by the haulers have not been
increased as a result of this agreement.
~
MAYOR
PASSED and ADOPTED this 21stday of July, 1999.
r
APPROVED A..c, TO
FORl'A & LANGUAGE
& FOR EXECUTIO;o"j
ATTEST:
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CITY CLERK
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ATTACHMENT A
CITY OF MIAMI BEACH ~ ,"' ,.
- I
OFFICE OF THE CITY ATTORNEY"
MEMORANDUM
TO:
Ronnie Singer'
Executive Assistant to the City Manager
/.JC~
Raul J. Aguila (/ . r-
First Assistant City Attorney
"
FROM:
SUBJECT: Selection of Franchise Waste Contractors
DATE: April 20, 1999
I
Pursuant to the direction of the City Manager at After Action on April 15, 1999, I am
attaching a copy of Sections 90-229 and 90-230 of the Miami Beach City Code, regarding selection
of F ranchise Waste Contractors, and renewal of existing contracts.
As you will note in Section 90-229(a), with the exception to provide for recycling, the City
sballlicense not more than five (5) franchise waste contractors for residential and commercial waste
collections and disposals. Therefore, should one of the existing five franchise agreements be
terminated, or otherwise expire, the City may elect to license a new fifth franchisee or, in the
alternative, maintain a lessor number of franchisees. In the event that the City opted to maintain less
than five (5) franchisees, an amendment to this Section would not be required; however, should the
City ever wish to have more than five, an amepdment would be necessary.
The criteria for the selection of franchise waste contractors is set forth in Section 90-229 and
is self-explanatory. Please note that the Mayor and City Commission recently approved an
amendment to this Section, allowing potential franchisees to show either a minimum of fifty (50)
committed accounts within the City or, in the alternative, and at the discretion of the Mayor and City
Commission, fifty (50) comparable committed accounts from outside of the City. in satisfying the
minimum qualifications to be considered in the granting of a franchise agreement.
The Mayor and City Commission has the discretion to either issue franchise agreements to
new applicants, subject to compliance with the minimum qualifications, as set forth in Section 90-
229, or issue a new license to existing franchisees. You have raised the questions as to whether,
should the City wish to solicit new applicants for franchise agreements, the competitive bidding
process is appropriate. ~
As you informed me, the City has historically awarded franchise agreements pursuant to the
aforementioned Code provisions, and not through either a bid or request for proposals process.
However, as Section 90-229 was recently amended to allow potential franchisees to submit either
fifty committed accounts within the City (which understandably limited the amount of potential
available franchisees in the past) or, in the alternative, fifty comparable committed accounts outside
of the City, a competitive bidding process might now be desirable. Notwithstanding the foregoing, *'
any selection process must clearly reflect and delineate the minimum qualifications to be considered
in the granting offranchise agreements, as set forth in Section 90-229.
Should you have any questions or comments regarding the above, please do not hesitate to
contact me.
RJA/kw
F:\ATrOlAGUIlIMEMOSIFRNCHSEL.RS
Attachments
cc: Murray H. Dubbin, City Attorney
Sergio Rodriguez, City Manager
Robert Thomas, Sanitation Director
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ATTACHMENT B
ONYX FLORIDA LLC
~ON>X
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99 MAR r 7 Pl1 3: S
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March 17, 1999
Mr. Sergio Rodriguez
City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Ronda 33139
Re: Merger of Waste Management and Eastern Environmental Services
Dear Mr. Rodriguez:
As you know, the Miami Beach business community has had its choice of
waste service providers greatly reduced since this last January. - .
Encosed is an article describing the merger of Waste Management and
Eastern Environmental Services. This merger has . er of
commercial waste competitors avaIlable in Miami Bea
I respedfuIly submit for the City's consideration that the City license
ONYX Rorida as the fifth franchisee. ONYX has, since fast Odober, provided an
Ow~~-;diiig lsvel of service to the residents of the City through its residential
coffection service, and we have greatly improved the appearance and deanliness
of the Stash Area
J
Our fleet of trucks is already operating throughout the City, and filfinc the
fifth cosmon with another franchisee would add a sixth carbaoe truck fleet to the
City streets.
Tnis request is in conformance with the City's current Franchise
Ordinance, which aIlows the City to directly license any qualified \V2ste service
provider it chooses based on ..... the current garbage, trash, and \V2ste disposal
needs of the City.....
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Mr. Sergio Rodriguez
March 17,1999
Page -2-
Of coursa, licensing ONYX Ronda as the fifLh franchisee does not imolv
. ar.v cost whatsoever to t~ C:tv. We merely are aJlp\ved the opportl....,ity to
compete on price and service with the remaining franchisees.
Please advise how you would like to proceec on this time-sensitive matter.
Sincerely,
/'
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Leonard N. Enriquez
Vice President-Business Development
LNElmt
11031799.lne
enclosure
cc: Hon. Neisen Kasdin.. Mayor
Hon. Nancy Liebman, Vice Mayor
Commissioner Simon Cruz
Commissioner David Dermer
Commissioner Susan Gottlieb
Commissioner Martin Shapiro
Commissioner Jose Smith
Ms. Ronnie Singer, Assi~&.Ont City Manager
Mr. Raul ~guila, Esquire, Assis"'~ City Attorney
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07/06/99 13:43 TEL 3056332973
BFI ~IIAMI
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ATTACHMENT C
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BF'
July 6, 1999
Mr. Matthew D. Schwartz
Assistant City Manager
City of Miami Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Re: Sanitation Services
Dear Mr. Schwartz:
We are in receipt of your letter of June 29, 1999 regarding the abovt!
mentioned topic. As was discussed at our last meeting, having the f'ur
current haulers collect the waste at the city facilities named in your Il!tter
and provide the three 30 yard roll off containers is acceptable. We c:>ncur
with the concept.
If further discussion is required please do not hesitate to call me at 305-63B-
3800 extension 201.
3840 NW 37 COlin' Miami, Florida 33141
Phone 305.638.3~00 - Fax 305.634-4272
JO'1~ PO!t-Cori,ufTler
c0.d ltllOl
VW~
WASTE MANAGEMENT
2125 NW I 0 Court
Miami, Florid:! 31127
(05) 4il.4444
July 1,1999
Mr. Ma1hew D. Schwartz
Assista 1t City Manager
City of lv1iami Beach
1700 C Jnvention Center Drive
Miami Eleach, FL 33139
Re: Sanitation Services
Dear Mr. Schwartz:
In resp':mse to your letter of June 29, 1999, Waste Management Inc. of Florida
agrees with the concept of in kind.services to the city.
Our ccmpany will participate with the three other franchisees in providing
complete waste service to the city facilities listed in your Jetter as well as
servicirlg the three roll-off containers to be placed at the parks division.
We believe that these services will free city crews to perform other work as well
as saVEl the city considerable collection and disposal fees.
This continued cooperation between the public and private sector will provide the
solution to the budget deficit problem as well as enhance the right of way clean-
up pro"ram.
If you have any questions or need any further assistance please call me at any
time.
Sincemly,
G
Arthur M. D'Onofrio
Oivisio, Manager
A Divisiol1l1f""\tste M;tnll!:"mem In,~. ofFI,'ri,l;\
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rr.~~ rrrT n~ ~In~
Ray Davis tRay Davis Jr.
Family Owned 8. Operated
Free Estimating
Trash 8. Garbage Hauling
DA VIS SANlT A TION, INC.
850 IVES DAIRY ROAD, SUITE T98
SORTH MIAMI BEACH, FLORIDA 33179
(305) 653-1684 PHONE
(305) 653-9040 FAX
July 12, 1999
Dear Mr Schwartz,
This letter is being sent to confirm that Davis Sanitation,
Inc~ will participate in providing additional services to the
City of Miami Beach of trash removal and recycling services.
If we can assist you in any other way please call my office.
Thank You,
Owner-President
JUL-13-99 03:30 PM IMPERIAL. SANITATION
8882792
P.04
July 13, 1999
City of r...1iarni Beach
1700 Convention Center Drive
Miami Beach, Florida 33139
Attn: Mr. Matthew D. Schartz
Assistant City Manager
This letter is to serve as written confirmation that LazaroRecycling,'Imperial
Sanitation is interested in participating with the other existing City of Miami
Beach commercial haulers in providing additional services to the City. I
have reviewed the listing of city facilities and see no problem in sClvicing
my fair share of locations. I look forward to further discussion on the issue
at the City Commission meeting July 21, 1999.
Respectfully,
8180 N.W. 93rd Street · Medley, Florida 33166 · (305) 888-5515
CITY OF MIAMI BEACH
CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139
http:\\ci.miami-beach.f).us
COMMISSION MEMORANDUM NO. 5 8t, Lf5
TO:
Mayor Neisen O. Kasdin and
Members of the City Co ission
DATE: July 21,1999
FROM:
Sergio Rodriguez
City Manager
SUBJECT:
A RESOL ON OF THE MAYOR AND THE CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY
~AGERTONEGOTMTEASER~CEAGREEMrnNT~THTHEFOUR
NON-EXCLUSIVE FRANCHISE LICENSEES, BROWNING-FERRIS
INDUSTRIES, DAVIS SANITATION, INC., WESTSIDE SANITATION,
AND WASTE ~AGEMENT OF DADE COUNTY-NORTH, TO PRO~DE
ADDITIONAL SER~CES TO THE CITY AT NO COST.
ADMINISTRATION RECOMMENDATION:
Adopt the Resolution.
BACKGROUND:
The Sanitation Department has a FY 98/99 budget of $4.7 million dollars and operates as an
Enterprise Fund. It has accrued a deficit of over $800,000 through FY 98/99. In an effort to reduce
this deficit, the Sanitation Department has proposed several fee increases which the City
Commission did not support. The Sanitation Department was directed to present their proposals to
the Finance and Citywide Projects Committee which met on June 15, 1999. At this meeting, it was
suggested that the City approach the existing four commercial franchisees to discuss additional
servIces.
The City Administration met with the four haulers on June 25, 1999 to discuss seeking their
assistance in reducing the deficit by providing additional revenue and/or reducing the cost of
sanitation services provided to the City. The haulers expressed a strong interest in providing
assistance if the City would agree not to fill the fifth commercial franchise slot which became vacant
as a result of the merger of Waste Management and Eastern Environmental Services. The City is
not mandated to have five commercial haulers. (Note Attachment A.)
Based on revenues paid to the City, the existing distribution of volume of business is as follows:
Browning - F ems Industries
Davis Sanitation, Inc.
Westside Sanitation
Waste Management of
Dade County-North
24.7%
5.9%
23.0%
46.4%
Agenda Item R 'l 0
Date 1-2l-qq
The Administration, along with the haulers, has discussed several proposals that will decrease costs
to the City. The proposed additional services that would be provided by the haulers at no cost
include:
The provision of waste collection and removal services for ALL City owned properties and
facilities at no cost. This service is currently provided by the Sanitation Department.
Estimated cost saving to the City for this service is approximately $136,000 annually.
The provision of three 30-yard rolloff containers to be utilized by the City for debris which
the licensees will empty a minimum of three times per week. The City currently pays the
disposal cost. Estimated cost saving of this service is approximately $100,000 annually.
Providing these waste collection and removal services for ALL City-owned properties and facilities
(operated by the City) will save the Sanitation Department an estimated $236,000 annually.
Onyx Florida LLC (Montenay International Corporation) has requested that it be given
consideration as the fifth commercial hauler (Attachment B). They presently hold the residential
contract.
Meetings were held with representatives of Onyx on June 25, July 1 and July 13, 1999 to discuss
services that they would provide for the City to help reduce the existing Sanitation Enterprise Fund
deficit. Initial discussions focused on Onyx contracting to undertake the Citywide Right-Of-Way
Cleanup Program and removal of park debris. At the meeting of July 13, 1999, Onyx indicated that
they were unable to assume additional services that would be provided at a subsidized cost to the
City.
ANAL YSIS
At the July 7, 1999 Commission Meeting, the City Commission directed the Administration to
review alternatives and provide a recommendation that would provide the largest financial benefit
to the City as well as the continuation of competitive services for commercial trash collection.
The three alternatives that were reviewed include:
Entering into an agreement with the existing four commercial haulers for additional services
provided at no cost to the City and not fill the existing fifth slot. Estimated cost saving to
the City is $236,000 annually. (See Attachment C.)
Granting the fifth commercial franchise slot to Onyx Florida LLC without issuing a Request
for Qualifications.
Opening the fifth slot to a competitive Request for Qualifications. This would preclude the
City from requiring additional services in order to be consistent with previous solicitation
of sanitation services; thus, there would be no additional economic benefit to the City.
Issues presented by representatives of the existing four commercial haulers and Onyx at the July 7,
1999 Commission Meeting include:
Competition
A major objective of the City is to ensure the provision of competitively priced sanitation
services for commercial accounts. The existing four haulers provide a competitive situation
for trash collection since they all operate throughout the City. The establishment of a
maximum of five franchises was based on the number doing business in the City at the time
it created the licensing and operating criteria for non-exclusive waste contractors. The
number of commercial haulers ranges significantly among cities (ranging from one in Coral
Gables to over thirty in Dade County).
Availability of Fifth Slot
The merger of Waste Management and Eastern Environmental Services has resulted in the
elimination of one of the existing five franchises. Waste Management indicated at the July
7, 1999 Commission Meeting that it still retains the fifth license. There has not been any
change in service or noted level of customer satisfaction as a result of the merger. Review
by the City Attorney has indicated that the merger of Eastern Environmental and Waste
Management resulted in a forfeiture of the fifth franchise. No City approvals were needed
per Section 90-192 (f) of the City Code which permits the assignment and transfer of
franchise licenses of companies whose stock is traded over the New York or American Stock
Exchange or that are institutional lenders. Waste Management is a publicly traded
corporation and thus did not need City approval. However, pursuant to City Code Section
90-229 (a) (5), as one of the minimum qualifications for a franchise waste contractor, no
franchisee throughout the term of the franchise can be affiliated with any existing licensee.
Therefore, the City Attorney has opined that, upon merger of Eastern Environmental with
Waste Management, the fifth franchise became available. As noted previously, the City is
not mandated to fill this position.
CONCLUSION
Even though there may be a short-term benefit to the user with an additional hauler who may
initially be more competitive in pricing, pricing and services tend to be fairly consistent among the
firms in the long term.
The City Administration recommends that the Mayor and the City Commission adopt the attached
Resolution authorizing the City Manager to negotiate a Service Agreement with the four non-
exclusive franchise licensees: Browning-Ferris Industries; Davis Sanitation, Inc.; Westside
Sanitation; and Waste Management of Dade County - North, to provide additional services to the
City at no cost. The value of these services would be approximately $236,000. This proposal
provides a significant cost saving to the City without having to raise fees that would be directly
passed on to the commercial accounts in the form of higher franchise fees. It is recommended that
this agreement be for a two-year period.
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