2008-26923 ResoRESOLUTION NO. 2008-26923
A RESOLUTION OF THE CITY OF MIAMI BEACH, FLORIDA APPROVING
THE RENEWAL OF THE FRANCHISE SERVICE AGREEMENTS BETWEEN
THE CITY AND THE FOUR (4) CURRENT FRANCHISE WASTE
CONTRACTORS: 1) WASTE MANAGEMENT OF DADE COUNTY NORTH, 2)
REPUBLIC SERVICES OF FLORIDA, 3) WASTE SERVICES, INC., AND 4)
DAVIS SANITATION, INC.; SAID RENEWAL(S) HAVING AN INITIAL TERM
OF THREE (3) YEARS, COMMENCING RETROACTIVELY ON OCTOBER 1,
2008, AND ENDING ON SEPTEMBER 30, 2011; PROVIDED FURTHER THAT
THE AFORESTATED RENEWAL(S) ARE SUBJECT TO AND CONTINGENT
UPON THE SUCCESSFUL NEGOTIATION AND EXECUTION OF A
SEPARATE AGREEMENT BETWEEN THE CITY AND THE INDIVIDUAL
FRANCHISEES FOR THE PROVISION OF ADDITIONAL PUBLIC WASTE
COLLECTION AND DISPOSAL AND RECYCLING SERVICES; AND
FURTHER AUTHORIZING THE CITY MANAGER TO EXECUTE THE SERVICE
AGREEMENTS UPON CONCLUSION OF NEGOTIATIONS WITH THE
INDIVIDUAL FRANCHISEES.
WHEREAS, Section 90-239 of the City Code provides that the City may issue up to five
(5) franchises to waste contractors for residential and commercial waste collection and disposal;
and
WHEREAS, the City currently licenses four (4) franchisees, and the renewal term for
these four (4) franchise agreements will expire on September 30, 2008; and
WHEREAS, at the September 8, 2008, City Commission Meeting, the Mayor and City
Commission approved Resolution No. 2008-26867, which authorized the Administration to issue
a Request for Qualifications (RFQ) for a fifth franchise waste contractor, and also approved a
month to month extension of the current four (4) franchise agreements, pending the final
outcome of the RFQ process; and
WHEREAS, additionally, the four (4) current franchise waste contractors, under separate
agreements with the City, also provide additional public waste collection and disposal and
recycling services to the City including: collection and disposal of solid waste from all City
facilities; recycling services at seven (7) City facilities; and support of the first weekend of the
month collection and disposal of bulky waste at 75th Street and Dickens Avenue, and 6th Street
and Meridian Avenue; and
WHEREAS, the Administration would hereby recommend the Mayor and City
Commission renew the franchise agreements with the City's four (4) current franchise waste
collectors: 1) Waste Management of Dade County North, 2) Republic Services of Florida, 3)
Waste Services, Inc., and 4) Davis Sanitation, Inc.; and
WHEREAS, the aforestated renewal would be for an initial term of three (3) years,
commencing retroactively on October 1, 2008, and ending on September 30, 2011; and
WHEREAS, the City Manager would further recommend the renewal of the aforestated
four (4) franchise agreements be subject to and conditioned upon negotiation and execution of
separate service agreements (with the individual franchisees), which agreements would require
the franchisees to provide the following additional public benefits/ services to the City:
Continue to provide those services as provided under the current service agreements,
as well as;
2. Disposal of litter collected by City crews in the Entertainment Districts (Lincoln Road,
Washington Avenue, Collins Avenue, Ocean Drive), beach walk, and boardwalk (this
service will be provided seven days a week);
3. Pick-up and disposal of all litter cans throughout the City, except for litter cans located in
the Entertainment Districts (this service will be provided seven days a week);
4. Expand current recycling services to seventeen (17) additional City facilities
(Franchisees to provide recycling containers and collect recycled material once a week);
5. Pick-up and disposal of recycled material in the public right-of-way and City parks
(service will be provided two times per week);
6. Additional support for special events by providing fifty (50) 20-yard roll-off containers, per
year, and by providing a discounted price on thirty (30) port-o-lets per year;
7. Partnering with the City on a Citywide recycling education program; and
WHEREAS, the total value of the current pubic services provided by the four
franchisees, (under the current service agreements), plus the newly negotiated additional public
services (contemplated under the new service agreements), an estimated current value of
$1,359,082; and
WHEREAS, the additional $896,620 in savings to the City will be reallocated to provide
additional services and/ or to reduce positions and equipment in the Sanitation Division.
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 approve the renewal of the franchise service agreements between the City
and the four (4) current franchise waste contractors: 1) Waste Management of Dade County
North, 2) Republic Services of Florida, 3) Waste Services, Inc., and 4) Davis Sanitation; said
renewal(s) having an initial term of three (3) years, commencing retroactively on October 1,
2008, and ending on September 30, 2011; provided further that the aforestated renewal(s) are
subject to and contingent upon the successful negotiation and execution of a separate
agreement between the City and the individual franchisees for the provision of additional public
waste collection and disposal and recycling services; and further authorizing the City Manager
to execute the service agreements upon conclusion of negotiations with the individual
franchisees.
PASSED and ADOPTED this 7th day of
A EST:
CITY CLERK
Robert Parcher
T:WGENDA\2008\October 7\Consent\FranchiseA9reementExt RESO.doc
October 2008.
r
OR
Matti Herrera Bower
APPROVED A3 TO
FORM 8~ LANGUAGE
D G'A~~VC/'M ~'tr~/'\u
COMMISSION ITEM SUMMARY
Condensed Title:
A Resolution Of The City Of Miami Beach, Florida Approving The Renewal Of The Franchise Service Agreements
Between The City And The Four (4) Current Franchise Waste Contractors: 1) Waste Management Of Dade County
North, 2) Republic Services Of Florida, 3) Waste Services, Inc., And 4) Davis Sanitation, Inc.; Said Renewal(s) Having
An Initial Term Of Three (3) Years, Commencing Retroactively On October 1, 2008, And Ending On September 30,
2011, Provided Further That The Aforestated Renewal(s) Are Subject To And Contingent Upon The Successful
Negotiation And Execution Of A Separate Agreement Between The City And The Individual Franchisees For The
Provision Of Additional Public Waste Collection And Disposal And Recycling Services; And Further Authorizing The
Ci Mana er To Execute The Service A reements U on Conclusion Of Ne otiation To The Individual Franchisees.
Ke Intended Outcome Su ooted:
Im rove cleanliness of Miami Beach Ri ht-of-Wa s es eciall in business areas.
Supporting Data (Surveys, Environmental Scan, etc.):
The 2007 Miami Beach Community survey shows the following improvements compared to the 2005 survey in
cleanliness of streets in business/ commercial areas, residential neighborhoods and canals/ waterways:
• 9% improvement in rating of street cleanliness in neighborhoods by Mid Beach and Condo Corridor residents
respectively,
• 10% improvement in street cleanliness in business/ commercial areas by Mid Beach residents,
• 8% and 6% improvement in street cleanliness in business/ commercial areas by South and Mid Beach, and
• 17% im rovements in Mid Beach resident ratin of canals/ waterwa s as excellent or ood.
Issue:
Shall the Ma or and Cit Commission a rove the Resolution?
Item summary/Kecommenaation:
The City Code currently makes provisions for five solid waste contractors to serve as Franchisees of the City of Miami
Beach in the provision of solid waste services to commercial properties.
In 1998, The City Commission approved renewal agreements with four Franchisees to provide solid waste services to
the City in exchange for not issuing a fifth license to fill a vacancy that had occurred. The agreements have continued
through renewals with the four Franchisees in 2003 and are due to expire on September 30, 2008.
At the August 21, 2008 meeting of the Finance and City Wide Projects Committee, the question of renewing the four
franchise licenses in exchange for the provision of added services, while leaving vacant the fifth license, was
discussed. The Committee discussed the levels of competition desired within this service sector and possible benefits
to the community. The Committee voted to recommend to the full City Commission that the Administration negotiate
with the current four Franchise license holders to determine what additional services might be negotiated as a result of
their license renewals. The Committee also recommended that a RFQ be issued to solicit interested contractors in
filling the vacant fifth license. The RFQ has been issued and responses are due November 2, 2008.
The City Administration recommends approval of a three year extension of the franchise service agreement with the
current four franchise waste contractors in exchange for additional in-kind services valued at $896,620. The $896,620
in savings will be reallocated to provide additional services and/ or to reduce positions and equipment in the Sanitation
Division as soon as the extension of the service agreements are executed.
THE ADMINISTRATION RECOMMENDS APPROVAL OF THE RESOLUTION.
Adviso Board Recommendation:
N/A
Financial Information:
Source of Amoiunt Account.
Funds:
2;
3
OBPI Total
Financial Im act Summa
Cit Clerk's Office Le islative Trackin
AI Zamora. Sanitation Director. ext 3541
Sign-Offs:
be artment Director Assi t Cit Mana er ' Cit M er
FHB JMG
T:\AGENDA\2008\October 7\Consent\Franchise Agre xtention SUMM.doc
A~,aENaA ITEM ~~
~- ~~ ~ ~~ ~ DATE /o- ~ -D
m MIAMIBEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachH.gov
COMMISSION MEMORANDUM
TO: Mayor Matti Herrera Bower and Members of the Ci Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: October 7, 2008
SUBJECT: A RESOLUTION OF THE CITY OF MIAMI BEACH, FLORIDAAPPROVING THE
RENEWAL OF THE FRANCHISE SERVICE AGREEMENTS BETWEEN THE
CITY AND THE FOUR (4) CURRENT FRANCHISE WASTE CONTRACTORS: 1)
WASTE MANAGEMENT OF DADE COUNTY NORTH, 2) REPUBLIC SERVICES
OF FLORIDA, 3) WASTE SERVICES, INC., AND 4) DAVIS SANITATION, INC.;
SAID RENEWAL(S) HAVING AN INITIAL TERM OF THREE (3) YEARS,
COMMENCING RETROACTIVELY ON OCTOBER 1, 2008, AND ENDING ON
SEPTEMBER 30, 2011, PROVIDED FURTHER THAT THE AFORESTATED
RENEWAL(S) ARE SUBJECT TO AND CONTINGENT UPON THE
SUCCESSFUL NEGOTIATION AND EXECUTION OF A SEPARATE
AGREEMENT BETWEEN THE CITY AND THE INDIVIDUAL FRANCHISEES
FOR THE PROVISION OF ADDITIONAL PUBLIC WASTE COLLECTION AND
DISPOSAL AND RECYCLING SERVICES; AND FURTHER AUTHORIZING THE
CITY MANAGER TO EXECUTE THE SERVICE AGREEMENTS UPON
CONCLUSION OF NEGOTIATION TO THE INDIVIDUAL FRANCHISEES.
ADMINISTRATION RECOMMENDATION
Approve the Resolution.
BACKGROUND
The City Code currently makes provisions for 5 solid waste contractors to serve as Franchisees of
the City of Miami Beach in the provision of solid waste services to commercial properties.
In 1998, the City Commission approved renewal agreements with four Franchisees to provide solid
waste services to the City in exchange for not issuing a fifth license to fill a vacancy that had
occurred. These agreements have continued through renewals with the four Franchisees in 2003
and are due to expire on September 30, 2008.
At the August 21, 2008 meeting of the Finance and City Wide Projects Committee, the question of
renewing the four franchise licenses in exchange for the provision of added services, while leaving
vacant the fifth license, was discussed. The Committee discussed the levels of competition desired
within this service sector and possible benefits to the community. The Committee voted to
recommend to the full City Commission that the Administration negotiate with the current four
Franchise license holders to determine what additional services might be negotiated as a result of
their license renewals the Committee also recommended that a request for qualifications (RFQ) be
issued to solicit interested contractors in filing the vacant fifth license. It was the consensus of the
Committee that if the current franchisees agreed to the provision of added services at no cost to the
City, that the licenses would be recommended for renewal and that if a fifth contractor were to be
selected by the City Commission, that new license holder would assume a proportionate share of
the responsibility to provide the free services to the City.
At the September 8, 2008, City Commission Budget hearing, the Commission approved a
Resolution authorizing the Administration to issue an RFQ for a fifth franchise waste contractor and
approved a month to month extension of the franchise agreement with the four current franchise
waste contractors.
The Administration has completed its negotiations for additional in-kind services with the current four
franchise holders. Currently the four franchisees provide in-kind services such as: collection and
disposal of solid waste from all City facilities, recycling services at seven City facilities, and support
of the first weekend of the month collection and disposal of bulky waste at 75th Street and Dickens
Avenue and 6th Street and Meridian Avenue. The value of current in-kind services is in the amount
of $462,462.
The City has negotiated the following additional in-kind services totaling a value of $896,620:
Disposal of litter collected by City crews in the Entertainment District (Lincoln Road,
Washington Avenue, Collins Avenue, Ocean Drive, Beach walk, and Boardwalk). This
service will be provided seven days a week. Total estimated savings of $78,120.
2. Pick-up and disposal of all litter cans throughout the City except for litter cans located in the
Entertainment District. This service will be provided seven days a week. Total estimated
savings of $775,000.
3. Expand recycling services to 17 additional City facilities. Franchisees to provide recycling
containers and collect recycled material once a week. Total estimated savings of $15,000.
4. Pick-up and disposal of recycled material in the public right-of-way and parks. Service will be
provided two times per week. Total estimated savings of $25,000.
5. Additional support for special events by providing 50 20-yard roll-off containers per year.
Total estimated savings of $$10,000.
6. Additional support for special events by providing a discounted price on 30 port-o-lets per
year. Total estimated savings of $3,500.
7. Partnering with the City on a recycling education program. Total estimated savings of
$15,000.
The total value of the current in-kind services provided by the four franchisees plus the newly
negotiated additional in-kind services total $1,359,082. The additional $896,620 in savings to the
City will be reallocated to provide additional services and/ or to reduce positions and equipment in
the Sanitation Division as soon as the three year extension of the franchise agreements are
executed.
It should be noted that once the fifth franchisee is selected and approved by the City Commission,
the new franchisee will provide its fair share of in-kind services. In addition, the fifth franchisee RFQ
allows the potential franchisees to offer in-kind services over and above the in-kind services
provided by the other four franchisees.
CONCLUSION
The Administration recommends approving the renewal of the franchise service agreements
between the City and the four current franchise waste contractors.
JMG\RCM\FHB
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