OIG No. 24-03: Waste Hauler Report
Joseph M. Centorino, Inspector General
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TO: Honorable Mayor and Members of the City Commission
FROM: Joseph Centorino, Inspector General
DATE: March 12, 2024
PROJECT: Review of Process for Considering Waste Hauler Options for Delivery of Waste Collection
Services for Commercial Accounts and Multi-Family Accounts Exceeding Eight Units
OIG No.: 24-03
INTRODUCTION
On December 13, 2023, the City Commission considered item R7-H, a resolution directing the
administration to terminate Request for Qualifications (RFQ) 2023-506-WG for a non-exclusive franchise
for waste haulers to provide multi-family and commercial waste collection and prepare a Request for
Proposals (RFP) for a “single hauler” for such services as an exclusive franchise. The vote on the resolution
was deferred until January 31, 2023.
RFQ 2023-506-WG was the culmination of work that began in the Finance and Economic Resiliency
Committee (FERC) on April 29, 2022. At that time, the administration, after an oral presentation,
recommended that the City move from a multi-hauler system to an exclusive waste hauler system. At the
following FERC meeting on July 29, 2022, staff presented two options without recommending either. The
administration subsequently changed its recommendation to a non-exclusive system, and, following a
Commission vote on the issue, began the process of preparing RFQ 2023-506-WG, which was advertised
in September 2023. During the December 13, 2023, Commission meeting, Commissioner David Suarez
made a motion to refer the matter to the Office of Inspector General (OIG) for review of the
process/transparency of the administration regarding this issue, which was approved unanimously. This
review followed.
This report could not have been completed without the cooperation of present City staff as well as that of
the City’s consultant and members of the public, all of whom cooperated voluntarily and provided candid
and pertinent information. The statements of the City’s current senior staff were recorded and taken under
oath. Additionally, the OIG acknowledges staff cooperation in timely providing all the requested
documentation.
Given the limited scope of this review as voted on by the Commission, the OIG interviewed the following
people:
1. Ms. Alina Hudak-City Manager
2. Mr. Eric Carpenter-Deputy City Manager
3. Mr. Joe Gomez-Director of Public Works
4. Mr. Bradford Kaine-Director of Sanitation
5. Mr. Jason Greene-Chief Financial Officer
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6. Mr. John Woodruff-Former Chief Financial Officer
7. Mr. George Ruiz-Assistant Director of Sanitation
8. Mr. Alex Denis-Director of Procurement
9. Mr. John Culbertson-MSW Consultants
10. Ms. Tabitha Pennington-Miami Quality Management
11. Mr. Lester Sola, Former Assistant City Manager (interviewed by telephone)
12. Mr. Ricardo Dopico-City Attorney’s Office
In addition to the interviews, the OIG attended the waste hauler forum that occurred on August 17, 2023,
met with Mr. David Bustamante (broker), spoke with residents, reviewed Resolutions, Letters to
Commission, Commission Memoranda, FERC Committee Memoranda, meeting minutes, videos of all
relevant proceedings, emails, contracts between haulers and customers, franchise agreements, consultant
reports, survey data, financial data, procurement documents, ordinances, and relevant Code provisions.
Because of the time and resource limitations faced in this review, and in the absence of any allegations of
fraud or other illegality, this report has focused on the period from April 29, 2022, to December 13, 2023,
and has been limited to a review of the administration’s process in recommending a specific type of waste
hauling agreement and its transparency with the Commission and public at large. The OIG believes that,
regardless of the number of times that the issue appeared on a Committee or Commission agenda, the full
Commission did not have the benefit of a comprehensive analysis from the administration of both delivery
systems prior to its decision on which delivery method would best serve the City. The OIG found this to be
troublesome. Yet, it should be emphasized that the primary purpose of this report is not the assessment of
blame on any single individual, but rather the identification of systemic and procedural weaknesses in the
decision-making process that may need to be addressed.
In the end, the OIG concluded that the evaluation process was flawed; that the two systems were not fairly
compared with a publicly available explanation for the decision to favor the one chosen.
BACKGROUND
The City of Miami Beach currently provides residents with solid waste collection utilizing two distinct
methods of contracting and service delivery, an “exclusive” contract for single-family residences and multi-
family residences of eight units or less, and a “non-exclusive” franchise for commercial properties and multi-
family residences in excess of eight units.
Exclusive System for Single-family Residences
Section 90-97 of the City Code, titled “Garbage Collection Services” states that:
All solid waste generated by single-family residences and multi-family residences of
eight units or less shall be collected, conveyed, and disposed of by a single-family
waste contractor(s).
This method of delivery service is commonly referred to as an exclusive agreement. On February 14, 2019,
the City of Miami Beach entered into an exclusive service agreement with Waste Connections of Florida,
Inc. d/b/a Waste Connections of Florida (Waste Connections), for the collection of residential solid waste,
yard debris, and bulk waste. The agreement was the result of a Request for Proposal (RFP2018-024-WG)
which required the bidders to compete both on qualifications and price.
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The City’s agreement with Waste Connections reflects the understanding of the rights and obligations of
the parties. Sections of the agreement that establish the obligations of the contractor and the remedies for
the City and all Miami Beach residents who receive services include the following:
1. Section 7 details the solid waste collection and disposal services including the frequency of
collection, hours of collection, point of pick-up, truck route, and driver’s name.
2. Section 12 requires the contractor to assign an individual as a Waste Connections
representative, subject to approval by the City Manager, who is responsible for directing,
coordinating, and administering all aspects of the services. Additionally, supervisory personnel
must be available for consultation with the City and have vehicles that are capable of direct
communication with all trucks performing waste collection service in the City.
3. Section 12.2 requires a primary and secondary individual to handle customer service issues
including, without limitation, ensuring prompt and satisfactory resolution of customer
complaints, and handling customer inquiries and requests for information. The Contractor is
responsible for sending complaint registers to the City.
4. Section 16 requires the Contractor to take immediate action to satisfactorily correct deficiencies
identified by the City Manager, including, but not limited to, increasing workforce and
equipment, and to perform in accordance with the “first class standards contemplated in this
Agreement.” Should the Contractor fail to restore performance to the high level expected, the
City Manager may take additional steps to ensure performance. Additionally, this section
provides for the City’s authority to inspect the contractor’s operations, workforce, equipment,
and books and records for audit and inspection purposes.
5. Section 18.3 provides that the contractor can be assessed monetary penalties for failing to
resolve all complaints, including failure to clean spillage, failure to repair customer property,
failure to maintain equipment in good working order, and failure to maintain office hours.
Section 25 states that the City Commission retains the right to terminate the Agreement at its sole option,
at any time, for convenience, without cause, and without penalty, when it determines it is in the best interest
of the City to do so.
The current agreement was scheduled to terminate on December 31, 2023, but has been renewed for one
year by the City Commission.
Non-exclusive System for Commercial Accounts and Multi-Family Residences Over Eight Units
Section 90-97 of the City Code further states that:
All solid waste generated by commercial establishments, industrial uses, hotels,
rooming houses, and multi-family residences of nine dwelling units or more shall be
collected, conveyed, and disposed of by franchise waste contractors.
This second method of contracting and service delivery is referred to as a non-exclusive agreement. On
November 26, 2019, the City and Waste Management Inc. of Florida (Waste Management) entered into a
non-exclusive agreement for residential solid waste collection and disposal for multi-family residences with
nine (9) or more units, commercial solid waste collection and disposal, as well as for recycling services for
multi-family residences with two or more units and commercial properties. On the same date, the City
entered into a similar non-exclusive agreement with Waste Connections for the same services. A non-
exclusive agreement enables the Contractors to negotiate directly with the customers and to enter into
private service agreements with them.
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Section 90-229 (a) of the City Code states, in part:
Except as provided in section 90-2331, the city shall not authorize more than five
franchise waste contractors for residential and commercial waste collections and
disposal.
The City has used the non-exclusive method of service delivery to this sector of the community for more
than thirty years and has utilized the same two service providers for more than twenty years. According to
the Sanitation Division Director, there are currently a total of about 2300 accounts, consisting of commercial
and multi-family residences greater than eight units that are serviced either by Waste Management or Waste
Connections. Waste Management has 61 percent of the market share, comprised of 1400 properties or
accounts. Waste Connections has 39 percent of the market share, with 900 properties or accounts.
Based on information provided to the OIG by the Finance Department, the gross receipts reported to the
City by Waste Management and Waste Connections over the past five years, 2019-2023, total over 128
million dollars. It is safe to say that the total receipts for the collection and disposal of solid waste to this
sector of the community over the past 30 years amounts to several hundred million dollars.
Unlike the exclusive agreement that the City controls, the residents living in multi-family units contract
directly with the waste haulers through their Homeowner’s Association, Property Management Company, a
third-party broker, or some other method. Although there is a non-exclusive franchise agreement between
the City and the waste haulers, the agreements between the haulers and the residents are not prepared,
executed, managed, or enforced by the City, nor are the customers identified or their corresponding
payment terms even known to the City. Consequently, customers have entered into agreements with both
Waste Management and Waste Connections that include clauses for liquidated damages for early
termination, right of first refusal, and automatic renewals. In addition, both companies have clauses in their
standard agreements in which customers agree that increased charges are not “solely an offset or pass
through” of costs and “might not be directly associated with increased costs of servicing customer’s specific
account. Charges may be based on regional and/or national level factors unrelated to the customer’s
account” (See Attached Exhibit 1).
CITY STAFF PROCESS
The terms of both franchise agreements with the City expired on September 30, 2022, and both continue
to be extended on a month-to-month basis by the City Commission. In November 2021, in anticipation of
the expiration of the franchise agreements, the City engaged MSW Consultants (MSW) to assist the Public
Works Department Sanitation Division in procuring new solid waste services for commercial and multi-
family residential units greater than eight. The original purchase order for the MSW contract was for
$50,000. The City utilized the consultant to gauge satisfaction levels within both the residential and
commercial sectors and to evaluate how to improve services in anticipation of an upcoming procurement.
The scope of services included service benchmarking (analysis of how Miami Beach compared to other
governmental entities), residential customer surveys, business sector stakeholder outreach, public
meetings with stakeholders, preparation of a technical memo summarizing the findings, and assistance
with drafting the procurement documents.
First Presentation – April 29, 2022
In consultation with the Sanitation Director, Mr. Bradford Kaine, and the Public Works Director, Mr. Joe
Gomez, MSW prepared an assessment of waste hauling in the City and a presentation detailing the results
and recommendations. The OIG interviewed John Culbertson, President of MSW Consulting who
1 Section 90-233 (a) of the City Code, as an exception, allows the city manager to license individual recycling contractors and is not
subject to the limitation of five. At this time the City utilizes only one recycling contractor.
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stated that the “initial research was focused only on communities in South Florida with fairly similar
populations and demographics to Miami Beach.”
The presentation was reviewed by Mr. Kaine, Mr. Gomez, Assistant City Manager Lester Sola, and the City
Manager, Ms. Alina Hudak. Based on the information reviewed by the OIG, the first PowerPoint presentation
of the initial benchmarking analysis went through several iterations, with comments being made on the
presentation by Mr. Gomez, Mr. Kaine, and MSW’s representative. A draft of the presentation was attached
to an email thread dated April 11, 2022 (See attached Exhibit 2), which indicates that Mr. Gomez reviewed
the presentation and commented on the need to strengthen the recommendation for an exclusive system,
as depicted in the images below.
Additionally, on April 11, 2022, Mr. Gomez requested a meeting with the City Manager and advised that if
the meeting could not occur prior to April 29, the date on which the presentation was scheduled at the
Finance and Economic Resiliency Committee (FERC), the matter would have to be deferred until May. The
City Manager advised that the meeting needed to occur ASAP and it was then scheduled for April 19 at
11:00 A.M. On April 19 at 10:00 A.M., Mr. Gomez, Mr. Kaine and Mr. George Ruiz, Assistant Director of
Sanitation, met to review the presentation which had been modified to reflect Mr. Gomez’s suggestion to
strengthen the recommendation for an exclusive agreement. At 11:00 A.M. they, along with Assistant
Director of Public Works, Rodney Knowles, and former Assistant City Manager, Lester Sola, met with the
City Manager (See attached Exhibit 3).
Prior to the April 29, 2022, FERC meeting, item C4-A, a discussion of the waste hauler presentation, was
heard at the April 6, 2022, Commission meeting and referred to the FERC. At the April 29 FERC meeting,
Mr. Gomez, introduced the PowerPoint presentation to the two FERC members present, Committee Chair
David Richardson and Commissioner Mark Samuelian, and made the following statement:
… today we're going to present to you, through our consultant, some analysis that
we've done in the marketplace. And then we're also going to provide you with some
recommendations for your consideration.”
He turned the presentation over to the MSW representative who presented the data from its service
benchmarking of 13 municipalities in the tri-county area. The results showed that solid waste collection and
disposal was delivered through 9 exclusive agreements, 2 non-exclusive agreements, and 2 open market
programs. MSW also presented responses from 15 online surveys that were sent to members of the public.
Based on the research and analysis of the consultant and City staff, a recommendation was made to the
FERC to “authorize staff to procure commercial solid waste franchise services under an exclusive franchise
system.” The summary of recommendations is depicted in the image below:
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During the oral presentation the summary of recommendations was the final slide presented. However, the
hardcopy of the PowerPoint presentation that was provided to FERC members contained an additional
slide with other options to consider: 1. Revert to open-market for commercial collections or 2. Maintain
status quo approach with 2 non-exclusive haulers. These options were not discussed during the meeting.
During the presentation, the following reasons were provided for recommending the move from a non-
exclusive system to an exclusive system:
1. An exclusive franchise agreement results from a Request for Proposals procurement process
that requires bidders to compete on price.
2. Prices should decrease for most businesses.
3. Improved service levels and transparency in pricing.
4. Improved operational efficiencies and economies of scale.
5. Streamlined contract management and oversight.
6. Improved hauler accountability.
7. Less truck traffic on the street.
8. Fewer greenhouse gas emissions.
At the conclusion of the presentation, Commissioner Richardson expressed his disappointment with the
consultant’s report and the amount of data presented to support the exclusive agreement. Public comment
was not sought during the meeting. He moved to have the matter reset for the next FERC meeting on May
27, 2022, and instructed staff to meet with the waste haulers to give them an opportunity to respond to the
presentation. Commissioner Samuelian restated the motion, which he seconded, to include asking staff
and MSW to expand the survey and engage with the community at large to get feedback from residents
and businesses. The video from the FERC Committee meeting may be accessed at
https://miamibeachfl.new.swagit.com/videos/171011?ts=7230.
Public Forum
Between the April 29 meeting and the subsequent presentation to the FERC on July 29, 2022, staff held a
public forum on July 7 at the Miami Beach Golf Course. The minutes from the meeting (Exhibit 4) reflect
that there were 40-45 people in attendance, about 60% from the waste hauling community and 40% from
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the general public based on a head count reflected in the minutes. The actual sign-in sheet shows a total
of only 33, including ten individuals who identified themselves as being from the hauling community and
four staff members.
Second Presentation – July 29, 2022
The item was heard again at the July 29, 2022 FERC meeting. Commissioners Richardson, Fernandez,
Arriola, and Rosen-Gonzalez (alternate) were present. At that time, an expanded study was presented by
Mr. Gomez. It included data from 139 municipalities in the tri-county area as well as Collier, Lee, Monroe,
and Pinellas counties. It also included the results of an expanded survey posted on Survey Monkey that
received over 140 responses. The survey was not distributed in a controlled manner and cannot be relied
upon for statistical accuracy. (The PowerPoint presentation is attached as Exhibit 5).
The data detailing the breakdown of franchise types across municipalities showed the following:
1. In the tri-county area, 59% exclusive, 21% open market and 8% non-exclusive.
2. Miami-Dade County results showed 50% open market, 26.6% exclusive, 13.3% non-
exclusive, and 10.1% city-operated.
3. Broward and Palm Beach showed 75% exclusive; Pinellas, Lee, Collier, and Monroe
Counties revealed 69% exclusive.
4. Non-exclusive had the smallest market share at 5%.
The expanded survey reached 140 + respondents and revealed the following data:
1. 66% responded that quality of service was poor to average.
2. 69% responded that the cost of service was poor to average.
3. 41% responded that having the ability to hire another waste services provider was the
most important.
4. 29% responded that the lowest price was the most important to them.
While the data presented appeared to support the previous recommendation of an exclusive agreement,
staff presented two options to the FERC--to either continue with the non-exclusive franchise or to consider
an exclusive one--without recommending either and without referencing the staff’s previous
recommendation for the exclusive system.
During the July 29, 2022, meeting, the FERC Committee accepted public comments. Representatives from
Waste Management, Waste Connections, and Coastal Waste and Recycling stated that the non-exclusive
agreement was preferable, but they would participate in either procurement. Some of their arguments
against the exclusive agreement included:
1. Commercial properties are not one size fits all;
2. There are issues of ingress and egress;
3. Exclusive is a fixed price for units that are not standard;
4. Miami Beach is a complex community with a unique environment;
5. Pricing is not guaranteed to be cheaper;
6. 41% of commercial customers want a choice;
7. Logistical challenges such as additional containers and trucks could take a year to
overcome;
8. 64% of respondents on the survey rated service as average to good;
9. 42% of respondents on the survey rated cost as average to good.
Miami Quality Management, a local property management company that represents 40-50 associations on
Miami Beach offered the following observations regarding the current non-exclusive agreements based on
client complaints:
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1. The associations are locked into contracts, typically for five years, with the haulers and then
they renew automatically.
2. Some associations have been paying liquidated damages for years to get out of contracts with
haulers.
3. Haulers cause thousands of dollars in property damage and the associations cannot afford
repairs.
4. Overages and contamination charges are increasing association costs each year.
5. Complaints against the haulers go to multiple representatives. Brokers are often needed to
resolve issues.
6. Brokers are needed to try and bring the costs down. The associations are then in contractual
relationship with both the hauler and the broker.
7. Fines against consumers with no appeal option. Service is terminated and the consumer is
then fined by the City.
The Committee engaged in a lengthy discussion, after which the FERC Chairperson instructed staff to
remove the exclusive agreement from consideration and to meet with the haulers to solicit their input on
the above issues. At no time did a Committee member make a motion regarding the policy directive to
proceed with a non-exclusive franchise agreement as required by Chapter 2 of the City Code, although
there appeared to be a consensus among Committee members for the non-exclusive franchise option. A
video of the FERC Committee meeting can be accessed at:
https://miamibeachfl.new.swagit.com/videos/177983?ts=3581.
Minutes of the July 29, 2022 Meeting
According to the minutes of the July 29, 2022, meeting:
The Committee strongly agreed they would not support an exclusive contract to one
vendor. The Committee suggests an RFP process take place allowing up to 5
operators. Commissioner Richardson asked the City Attorney to research the
possibility of adding a clause to the contract denying franchise hauler operators to
merge while under contract with the City. Item to be brought back to the October 31,
2022 FERC Meeting.
The minutes from the meeting were not made public as required by Chapter 2, Section 2-17 of the City
Code. That section, in part states:
Draft minutes from meeting of each city commission committee shall be placed on
a subsequent city commission agenda for the purpose of city commission review
and approval. Meeting minutes shall reflect any motions, votes on motions and the
conclusion of each discussion on each agenda item including any future action that
shall be taken. The draft minutes are subject to correction, amendment, and
approval by the city commission, with any corrections or amendments to be
reflected in those minutes.
The minutes from the July 29, 2022, meeting were placed on the January 31, 2024, Commission agenda
for adoption,18 months after the policy directive was given to staff, along with the minutes from the
September 30 and October 31 FERC meetings of the same year. The inclusion of the minutes from all three
of those meetings indicates the failure to file the minutes, which is a staff responsibility outside of the City
Commission and Public Works staff, was likely an unintentional lapse.
Nonetheless, according to Chapter 2, Section 2-17:
those portions of minutes addressing a commission committee’s request for city
administration action shall only be effectuated when a corresponding item for such
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requested city administration action is placed on a city commission agenda and
approved pursuant to resolution or motion passed by a majority vote of the
members present.
This was never done.2
The Changed Staff Recommendation
Between April 29, 2022, and September 27, 2023, the item moved between the FERC Committee and the
full Commission several times. It was brought to the Commission seven times within that period, June 22,
2022, July 20, 2022, March 27, 2023, April 28, 2023, May 17, 2023, July 26, 2023, and September 27,
2023. Although the information was publicly available and some Commission members may have sought it
out or heard about it from other sources, other than a passing reference to the consultant’s and staff’s
recommendation in a single resolution attached to three subsequent agendas, there is no other public
record indicating that the full Commission was informed about the results of the City staff and consultants'
research supporting an exclusive agreement. It should be noted that the latter resolution, sponsored by
Commissioner Kristen Rosen Gonzalez, was for the City administration to issue an RFP for an exclusive
franchise waste contractor system, which was deferred twice and ultimately withdrawn.
On September 27, 2023, Item R2-B was on the agenda to issue RFQ 2023-506WG for a non-exclusive
waste hauler franchise agreement. Commissioner Meiner (now Mayor Meiner) asked Mr. Gomez and Mr.
Carpenter why the City changed its recommendation from an exclusive to a non-exclusive agreement. Mr.
Carpenter advised that it was the consultant’s recommendation and that he “personally” believed the non-
exclusive was the best option for the City.
As a part of the OIG’s review of the staff evaluation process, Mr. Gomez was interviewed. He acknowledged
that the results of the expanded research reinforced the findings and recommendation of an exclusive
system. However, during the second presentation, although the data supported the staff’s initial
recommendation, no recommendation was made. Mr. Gomez was asked for the reason he did not continue
to recommend the exclusive system and he stated:
Well, it was obvious that there didn't seem to be an appetite to consider an exclusive
model. We had been, the City has been operating under a non-exclusive for 33 years.
So it's not like we were introducing a completely alien concept. It's a concept that's
been tried and true and worked in the City for multiple decades. The only one we felt
that we really didn't want to move forward, or recommend, or have the committee
consider anymore was the open [open market] model. Again, our concerns about
additional traffic and at that point, the committee at the July 29th meeting, we
received our direction. As you know we work at the direction of the policy makers.
So, at that point, we then continued to focus on the non-exclusive.
When asked by the OIG what the staff’s decision to recommend a non-exclusive waste collection
agreement was based on, he stated:
Either system will work. We can make any system work, However, the nonexclusive
has worked for the city of Miami Beach for 33 years. I think with the additional tweaks
that we've made in this new RFQ providing protections for the 9 to 24 units in terms
of capping the increase, termination by convenience and other protections that we
put in, in addition to that, having the ability to ask if there customer complaints and
after 24 hours that did not resolve that the city gets involved directly because right
now, under the non-exclusive we get calls typically, if they're not happy with the
2 The focus of this report is on the staff evaluation process for the commercial and over 8 multi-unit waste hauler franchise, not on the lack of adherence to Chapter 2, and no finding is made regarding the reason for the lapse. However, the OIG may consider
issuing a report on this issue in the future.
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service, whatever. Sometimes it may be a week will go by before we get that call. In
this particular new system, we're going to have a dedicated person to do that. I think
with that, I believe the non-exclusive is the better model for the city. I'm comfortable
with stating that. And I've stated that, for the record, I've also stated for the record,
and I'm sure you've seen those tapes where I said that either system could work for
the city. Right? So, I've been very clear about that.
In addition to stating that the non-exclusive had worked for the City for 33 years, Mr. Gomez also told the
OIG during his interview that he relied on the City ordinance that states that franchise haulers shall be used
for waste collection of the commercial and multi-family residential greater than eight units, the financial
comparison of exclusive service fees and non-exclusive franchise fees, and the direction from the FERC
committee. No other information was provided to the OIG which supported the recommendation of the non-
exclusive agreement.
The OIG interviewed Mr. Carpenter as part of this review. After being shown the PowerPoint presentation
slides previously mentioned where Joe Gomez sought to strengthen the recommendation for the exclusive
system as well as the transcript of the April 29, 2022, FERC meeting where Joe Gomez introduced the
presentation, Mr. Carpenter acknowledged that it was, in fact, the staff’s initial recommendation to the FERC
for an exclusive system. During his interview, Mr. Carpenter was asked why it was his “personal” belief that
the non-exclusive system was best for the City. He stated,
Being involved in Public Works for the City of Miami Beach for the last 11 years, give
or take the year that I had no responsibility for Public Works and the complexity of
the City, I mean, it's very similar to the description that I gave to you before as to
why, I think it's very likely that we would oversimplify the bid package if you were to
go with an exclusive approach. And I personally, in my opinion, think that the
residents would end up paying a higher price in the end.
It should be noted that former Assistant City Manager Lester Sola, not Mr. Carpenter, was the member of
the administration overseeing Public Works and its Sanitation Division at the time of the staff
recommendation for the exclusive system and its presentations to FERC. Mr. Sola was interviewed by
phone by the OIG and stated that he was aware of the staff’s original recommendation but had no
recollection of being involved in any discussion to change the staff recommendation. Mr. Sola left his City
position on Friday, September 2, 2022.
Finally, the OIG interviewed Ms. Hudak. The City Manager, when asked by the OIG about the
recommendation that was made at the April 29, 2022, FERC committee meeting, responded as follows:
It was never represented to me as a staff recommendation. It was presented to me
as a consultant recommendation, for purposes of having a conversation and a
discussion. And actually, if you read the memo, the memo attached to the consultant
says for discussion and direction from the Committee, because it was, again, the
beginning of a conversation regarding the type of process that we would be using
to procure a hauler in the future.
The FERC committee memorandum, approved by Ms. Hudak through the NOVUS system for the April 29,
2022, meeting states the following conclusion:
The consultant has recently completed its assessment, and along with the Public
Works Department, are prepared to present their findings and recommendations to
FERC for discussion and further direction. (Exhibit 6)
Ultimately, as a result of Commission action approving the non-exclusive system, an RFQ was issued on
October 5, 2023, following which the City received five proposals.
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On December 13, 2023, Item R7 H, the resolution directing the administration to terminate RFQ 2023-506-
WG and prepare a request for proposals for a “single hauler” under an exclusive agreement, was heard.
The item was deferred until January 31, 2023. The Inspector General was asked to conduct a review of
the staff process that resulted in RFQ 2023-506WG and whether it was a fully transparent process.
THE RFQ FOR A NON-EXCLUSIVE AGREEMENT
After the FERC Committee’s directive on July 29, 2022, the process of developing a Request for
Qualifications (RFQ) for a non-exclusive franchise agreement began. The prevailing view of the FERC
committee, championed by the waste hauling community throughout the process, was that having multiple
waste haulers through a non-exclusive franchise agreement with the City would create competition and
provide customers an opportunity to secure the most favorable terms regarding price and service.
Between July 29, 2022, and the Commission meeting of September 27, 2023, the waste hauler item was
before the FERC committee seven times and before the full Commission five times in a continuing effort to
refine the terms of the RFQ. City staff were directed by the FERC committee to include provisions in the
development of the current RFQ to address the complaints by the residents. They were also directed to
meet with the waste hauler industry to solicit their feedback on the issues. Throughout the outreach process,
except for the limited surveys that were received from residents or businesses, the majority of the input
regarding the development of the RFQ came from the waste haulers or their representatives. They
represented the majority of attendees at the public forum (60% according to the minutes) and, except for
one property manager representing approximately fifty properties and one other resident, were the only
ones providing comment at the FERC committee meetings when public comment was invited.
Moreover, at the direction of the FERC, exclusive meetings with the waste hauling industry were held by
City staff on August 26, 2022, April 10, 2023, and August 17, 2023. The two current non-exclusive
franchisees, Waste Connections and Waste Management, were represented at all of the meetings. In
addition, representatives of Waste Pro, Great Waste, Coastal Waste and Recycling, and Ojito Waste
Systems were present. The incumbent waste haulers and the waste hauling industry at large had extensive
participation in the development of the RFQ provisions, according to staff.
MSW Report
As part of the ongoing non-exclusive RFQ preparation process, the City’s consultant, MidAtlantic Solid
Waste Consultants (MSW) was tasked with “researching features from non-exclusive commercial
solid waste systems in other states that improve pricing transparency and ensure market forces
are balancing supply and demand to minimize pricing outliers and rate shocks.” MSW issued a
technical memorandum dated October 17, 2022, to Public Works Director Gomez and Sanitation Division
Director Kaine titled, “Non-Exclusive Commercial Solid Waste Collection Franchise Strategies to
Achieve Price Transparency.” The memorandum identified a few strategies to improve administrative
oversight, including reporting requirements and the right to audit the books and records of the franchisees,
that are similar to what is reflected in Chapter 90 of the City Code. The memorandum noted that none of
the communities examined required waste haulers to report rate information. MSW concluded that “Due to
the nature of non-exclusive agreements, which leave intact the ability of the market to set pricing
dynamically, no mechanisms exist to impose oversight on actual rates.”
The report also identified that none of the communities addressed the regulation of brokers or other parties
that secure collection services on behalf of multi-family or commercial customers. Brokers create an
additional layer between the customer and the waste hauler which essentially prohibits the customer from
communicating directly with the waste hauler. Once a broker is contracted by the customer, the customer
deals directly with the broker, not the hauler. The City is not a party to the broker contracts. MSW concluded
that “While the strategies presented in this memorandum may improve customer service, reporting,
and overall hauler performance in a non-exclusive system, they do not address critical issues such
as pricing transparency.” (Exhibit 7)
Page 12 of 19
Important RFQ Provisions
Section E of RFQ 2023-506-WG, “Customer Contract Provisions,” identifies provisions that would be
required in the standard contract between the waste hauler with the customer. The relevant provisions in
this section include:
1. Term of Customer Contracts;
2. No Auto-Renewal/Evergreen Clauses;
3. Prior Notice to Customer/Broker of Expiration Date with Option to Renew;
4. Cap on Annual increases for MF 9-24 Accounts;
5. Termination for Convenience; and
6. Escalation of Customer Complaints
The RFQ further requires that waste haulers awarded a franchise provide copies of their customer and
broker contract templates for each category of customer to the City for review and approval to ensure
compliance with the requirements for waste collection services agreements under the City Code and the
non-exclusive franchise agreement to be entered into with the City.
The waste haulers have collectively informed the City administration and the Commissioners at various
meetings that putting these types of provisions in the non-exclusive RFQ and agreement may not yield the
outcome they intend. Any provision in the RFQ and agreement that affects the waste hauler companies’
pricing model, including term limits, rate caps, termination for convenience clauses, public benefit/in-kind
services, and franchise fees, as well as the provision of newer collection vehicles, would have a direct
impact on the price to the customer. The haulers have advised that shorter terms will cause the front-loading
of contracts, rate caps will result in a higher initial contract price, and termination for convenience clauses
will have a fifteen percent maximum on the premium to cancel. This will have a direct impact on the affected
customers and potentially on the commercial and multi-family units greater than 24.
During this review, the OIG requested from Waste Management a sample of their customer contracts. Mr.
Jason Neal, the Government Affairs Director for Waste Management, who regularly appeared in front of the
FERC during this process, provided the sample contract and in an email advised the OIG of the following:
…We believe it is reasonable to expect price increases to apply to these items
without caps. Setting “caps” will simply increase initial pricing to
customers…Mandated shorter terms only serve to increase initial prices, given the
need to spread costs of capital, setup, and related costs over the negotiated term.
Mandating a termination for convenience clause allowing cancelation at any time
with 30 or 60 days’ notice essentially means no real contract term, presenting even
further pressure to increase customers initial rates to cover upfront costs. (Exhibit
8)
The issued RFQ includes a provision for an open solicitation period that defines how the newly selected
franchisees will compete for customers which includes a phasing out period of the existing contracts over
three years. The City Code authorizes the City to issue up to five franchise agreements under the non-
exclusive model. Currently, the City contemplates three to four waste haulers to be selected for a franchise
agreement with one or two haulers in a standby posture to be deployed should the number of franchisees
fall below the issued number. The decision regarding the number of franchises to issue would be up to the
Commission.
Section F of the RFQ titled, “Open Solicitation Period,” states:
To allow all franchisees under the new franchise agreements to be awarded the
opportunity to compete for customers and ensure an orderly transition from the
existing paradigm, the existing franchisees will be required to phase out existing
customer contracts in three phases (each, a “Phase” and collectively, the “Phases”).
At the time of issuance of this RFQ, the City intends the following: (1) Phase 1 will
Page 13 of 19
include all existing commercial and multifamily residential contracts entered into by
franchisees on or after January 1, 2023, as well as contracts entered into prior to
January 1, 2023 that have an expiration date (original term or renewal term) earlier
than July 1, 2024; (2)Phase 2 will include all existing commercial and multi-family
residential contracts entered into during the 2022 calendar year as well as contracts
entered into prior to January 1, 2022 that have an expiration date (original term or
renewal term) prior to July 1, 2025; and (3) Phase 3 will include all other existing
commercial and multi-family residential contracts. There will be an open solicitation
period in respect of each Phase as follows:
Phase 1 – March 1, 2024 through June 30, 2024
Phase 2 – March 1, 2025 through June 30, 2025
Phase 3 – March 1, 2026 through June 30, 2026
The commencement date for contracts entered into during each of the foregoing
solicitation periods will be as follows:
Phase 1 – July 1, 2024
Phase 2 – July 1, 2025
Phase 3 – July 1, 2026
Section F of the RFQ is a direct result of FERC direction and contrary to the recommendation of the
professional staff on the RFQ. The staff’s recommendation, reflected in the FERC Committee
memorandum dated September 22, 2023, was as follows:
There will be an open solicitation period during the last one hundred twenty (120)
days of the term of franchise agreements (including agreements in place at the time
this RFQ is issued). During such solicitation period, franchise waste contractors
shall be free to solicit and sign contracts with customers and brokers in respect of
waste collection agreements with terms that will commence upon the expiration of
the expiring franchise agreements. With regard to customer contracts in effect at
the time this RFQ is issued that will not expire by or before the effective date for new
franchise agreements, waste haulers shall provide written notice to such customers
by certified mail, return receipt requested, not less than one hundred eighty (180)
days prior to the expiration of their franchise agreements advising that they may
terminate their agreements without payment of liquidated damages or early
termination fees of any kind if they desire to contract with a different waste hauler
during the solicitation period for a term that commences when the new franchise
agreements become effective.
Additionally, staff is currently reviewing the concept of splitting the contract
sunsetting periods into a phased in approach. The phases will include contracts that
expire in 2024 and contracts that expire in 2025 or later, so that the open solicitation
process doesn't occur at will include contracts that expire in 2024 and contracts that
expire in 2025 or later, so that the open solicitation process doesn't occur at the
same time for all contracts. Staff has asked both of the current commercial haulers
to provide a list of dates of all of their expiring contracts for their multi-family and
commercial accounts. If staff is unable to obtain this information, a more
rudimentary recommendation (ie by odd or even address number or split the city
geographically) as to the process for phasing the new franchise contract
enrollments can be made. (Exhibit 9)
The minutes from the FERC meeting on September 22, 2023, state that he FERC Committee
recommended approval of the RFQ as presented with the following adjustments:
1. Existing contracts signed on or after January 1, 2023, will expire 60 days
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after new franchise agreements are in effect.
2. Existing contracts signed between January 1, 2022, and December 31,
2022, will have 3 years of life remaining without options considered.
3. Existing contract signed prior to January 1, 2022, shall remain in effect for
the remainder of the term, but not longer than 5 years from original term
execution.
4. The city has a 90-day notice requirement.
5. Administration to discuss with industry vehicle life issues.
The FERC Committee meeting can be found at the following link: Sep 22, 2023 Finance and Economic
Resiliency Committee - Miami Beach, FL (swagit.com).
City Manager Input on the RFQ
During the OIG’s interview, the City Manager, while speaking about the process of the waste hauler
procurement, stated as follows:
My bigger concern with staff was whatever the RFQ document is going to be,
whatever the procurement process is going to be is, how do we make sure that that
document is a document that is competitive, that protects the city, that anything any
experience that we've had, that anything that's come out through this dialog that
shows a weakness in our current system gets corrected. And so, my bigger concern
ultimately was in preparation of the RFQ document and making sure that there were
protections. And I expected Eric and Alex Denis, who's our procurement director,
and Joe, to provide leadership, and Brad, who is an expert in this field, you know, to
make sure that RFQ document had the appropriate protections for the City and
improved our ability to service the commercial needs of our City.
Procurement Director Input on the RFQ
During the OIG’s interview with Procurement Director Alex Denis regarding the development of this RFQ
he stated:
So, the RFQ itself has been in development for a long time. Typically, what happens
is my folks will work with the requesting department to develop the specifications
for any particular solicitation. In this case, though, there were so many people
involved. There was the department and the department had a consultant, and the
City Attorney’s office had a lot of involvement regarding the language that's in the
RFQ. So, when it comes to, other than procedural issues, you know the way the
document is set up and things like that. My team had very little involvement in this.
Regarding Section F discussed above, Mr. Denis stated:
What I recall is a lot of conversation. I'm not sure who wrote this. I suspect it was Ric [Deputy
City Attorney Ricardo Dopico], but I recall a lot of conversation at either at Committee or the
Commission about this issue. About the open solicitation period, but my team did not write
this.
He further stated on the issue of the open solicitation:
I hate that they say open solicitation period because it makes it sound like this is
some procurement process when really phase one, phase two, phase three, has
nothing to do with procurement. I think I would have to read it. But I think that is
something that the hauler does with the customer.
Page 15 of 19
Mr. Denis later spoke with the OIG to clarify his comments. He stated that his department worked with the
Public Works Department to develop the RFQ specifications and requirements that are generally included
in any RFQ. He added that the City Attorney’s Office took the lead on additional items in the RFQ,
particularly those related to the open solicitation period and the phasing in of new contracts.
City Attorney Office Input on the RFQ
The OIG interviewed Deputy City Attorney Dopico, who was responsible for drafting the language in Section
E, “Customer Contract Provisions” and Section F, “Open Solicitation Period”. After some discussion about
the customer provisions in Section E of the RFQ listed above, Mr. Dopico confirmed that the inclusion of
those six provisions in the RFQ was the result either of direction from the FERC committee or by the
Commission.
With respect to the open solicitation period, Mr. Dopico acknowledged that it was the Public Works staff
recommendation to implement something similar to the Hillsborough County model which included a four
to six-month period in which the newly selected franchisees could compete and solicit all customers, and
at the end of the solicitation period the new franchise agreements would begin:
I don't recall if it was Brad or Joe who spoke but yeah, the idea was to follow the
same procedure that was done in Hillsborough. And then ultimately different
direction was received because there were concerns raised by those in the industry
who are the incumbents that it was going to be a mess if we did it that way and that
there was, that I guess that there were horror stories about what had happened in
Hillsborough that had been, you know, whatever very disorganized and whatnot.
When asked whether the language in the RFQ contemplates that the incumbent waste haulers, Waste
Management and Waste Connections, would be selected in the new procurement, he stated:
Yes, I mean I suppose the possibility that Waste Connections or waste management
wasn't selected, in which case all of their contracts would be available. But it in other
words, once the new contracts went into effect, if you are an incumbent, your old
franchises going to cease to exist, you will be existing under a new franchise…Yeah,
I guess the language could have perhaps been more vague about whether, I suppose
the selection committee could have recommended not to include one of the two. But
yeah, the wording the way that it was drafted assumes, I guess, to some extent they
would be selected. I don't know. I mean, there was no intention to assume that, but
I guess that's the way, that it ended up reading.
Concerning the language of the open solicitation period and its appearance of limiting competition he stated:
I think you should watch the FERC meetings to the extent you haven’t already. But
this formula for lack of a better word, was direction from the FERC. I would not have
come up with anything sort of, as complex on its face as what they came up with.
The Competition Comparison
Finally, the net result of the RFQ that has been issued limits competition. Firms do not compete on price,
only on qualifications. Any competition over price occurs out of the public eye and under circumstances that
may allow for abusive practices, not to mention the chaos created by brokers in the middle. Full competition
within the non-exclusive environment occurs in an open market. The current language in the RFQ regarding
the open solicitation period substantially benefits the incumbent waste haulers, further limiting competition
as depicted in the image below which illustrates the non-exclusive method of service delivery.
Page 16 of 19
Alternatively, within the exclusive method of the collection and disposal of solid waste, real price competition
occurs within the Request for Proposal process depicted below.
The diagrams above were created by the OIG.
Page 17 of 19
What has become clear is that the open solicitation method recommended by the Deputy City Manager,
Public Works Director, and Sanitation Director to ensure competition for contracts, was not accepted by the
FERC. Instead, the FERC directed that, as part of a new franchise agreement the current contracts with
customers would be phased out over three years. This requirement favors the current waste haulers, who
would be better positioned to control contract renewals, limiting the contracts available for the third hauler.
Moreover, according to some members of the waste hauling industry, the customer provisions that are
contained in the RFQ would result in increased prices to customers.
The process outlined above indicates that the RFQ process would likely not achieve the desired results of
both fostering competition and protecting the public interest.
RESPONSES TO DRAFT REPORT
In compliance with Section 2-256(h) of the City of Miami Beach Code, a draft copy of this report was
provided on January 30, 2024 to the following individuals: Alina Hudak, Eric Carpenter, Joe Gomez,
Bradford Kaine, Ricardo Dopico, and Alex Denis. Written responses to the draft report were received from
Alina Hudak, Eric Carpenter, Joe Gomez, and Ricardo Dopico during the late afternoon and early evening
of March 12, 2024. All responses are included as attachments to this final report.
The OIG understands the challenges faced by the administration in considering the important decision of
selecting a waste collection system for commercial accounts and multi-unit residences over eight units. The
complexity of the issues involved, the competing private and public interests, and different perspectives on
the part of administrators and elected officials all contributed to a lengthy, and at times contentious,
decision-making process leading first to the issuance of an RFQ for a multi-hauler non-exclusive system,
followed by the pending proposal for a single-hauler exclusive system.
The OIG appreciates that several members of the administration took the unusual step of filing separate
written responses to the draft report. Most reports that are forwarded to the administration do not result in
multiple responses.
The OIG values the collaboration that it has had with the City administration on a number of issues in the
past and respects the deep professional backgrounds of the responders. The responses, as expected,
include certain disagreements with the OIG draft report, which is their right. Some of the responses have
been helpful in that they have resulted in clarifications and edits in the draft that improved its content. Some
criticisms of the OIG and the report, which was completed expeditiously in approximately the same time as
the administration took to respond to it, are less helpful in the absence of information illuminating the City’s
staff’s consideration of the issue at hand.
Some responses criticized the OIG for not interviewing City Commissioners during its review. This criticism
is misplaced and misunderstands the reason for the report, which was focused on the staff work and
recommendations, not on the Commissioners’ decisions on what position to take on the issue. Additionally,
the reason for any given decision or opinion by an elected official is generally not a matter for an OIG report
in the absence of some evidence of a conflict of interest or other corruption in the decision-making process.
The City Manager has claimed that the administration never made a recommendation for an exclusive
system. It is clear that staff members did make such a recommendation to the FERC Committee during the
initial presentation, which was confirmed in OIG interviews. It would be reasonable to assume that they
made that recommendation on behalf of the administration. Whether or not the City Manager was aware of
or in agreement with that recommendation does not change the OIG’s conclusion.
The handling of the waste hauler franchise recommendation by City staff remains a source of concern to
the OIG. None of the responses from the administration deal directly with the central issue raised by the
City Commission in its request for this report and addressed in the analysis provided by the OIG—the basis
of the City staff’s recommendation in favor of a non-exclusive hauler system and the reasons for its change
of position from its original support of an exclusive system. The importance of that opinion to the City’s
Page 18 of 19
decision has been duly noted in the report. Even now, months after the OIG publicly expressed concern
over the lack of documentation in the decision-making process leading up to the staff’s changed
recommendation, there remains a paucity of an explanation for its basis. In that respect, the responses,
although submitted in good faith, may be of limited value to the Commission in its current decision-making
posture.
CONCLUSION
On September 27, 2023, when the full Commission voted to issue RFQ 2023-506-WG, former Mayor Gelber
stated, “When we get these procurements, I always feel like it’s a little dangerous given all the competing
interests out there,” and, therefore, “would vote for anything the administration recommends.”
Mayor Gelber’s identification of competing interests and the danger they pose to an open and fair
procurement process was accurate and has played out in this matter.
The result has been an important policy decision driven by a committee recommendation rather than by the
Commission being fully informed by its professional staff, and with more extensive input by waste hauler
interests than by public concerns over the performance of the current franchisees. It has led to the issuance
of an RFQ that also fails to reflect the recommendations of the professional staff, which could defeat the
premise of ensuring real competition in the marketplace and best pricing. In the opinion of the OIG, the
interests of the consumers of waste hauling services could not be properly protected without a greater effort
to give to their property managers or other representatives the same courtesies extended to the haulers
and their representatives.
This issue merited an open, thorough, and fair assessment of the City’s waste hauler franchise options.
The facts related in this report regarding the process leading to the pending RFQ support the need for a
fairer evaluation of the two methods discussed. City staff considered both and ended up on both sides of
the issue at different times, without a clear explanation of the shift in positions, and an appearance that the
shift occurred for reasons unrelated to an objective assessment of the alternatives. The original staff
recommendation for an exclusive system was supported by cogent reasons and the input from an expert
consultant buttressed by research. The public record for the basis of the subsequent staff recommendation
of a non-exclusive system is bereft of such support.
The OIG has found no evidence suggesting a lack of integrity on the part of the City staff, and It may be
debatable which system is best for Miami Beach. However, the lack of clarity in the process, the unexplained
and non-transparent change in direction by the City staff, the undue weight given to input from self-
interested parties, possible political influence, and the nature of an RFQ with which no one should be
satisfied at the end of the process, leaves the impression that a fair assessment of the options by City staff
did not occur and was not presented to the full Commission.
The City of Miami Beach has a form of government that is intended to maximize the input of professional,
non-political management in the administration of City government and the execution of City policies. The
City has a professional staff that is certainly capable of performing that service. The Mayor and City
Commission are entitled to receive the staff’s professional advice and guidance in a clear and unambiguous
form that will enable them to collectively make their own judgments about policy, notwithstanding their right
to make final decisions on such policies contrary to the advice of staff. All of this should occur in a
transparent process that can be accessed and understood by the public. The problematic way in which this
policy decision was made as outlined in this report calls for closer attention and adherence to the form of
government established by the City Charter.
To that end, the OIG recommends that, notwithstanding direction given by the Commission or any of its
committees, it is incumbent upon the Procurement department and the using department to work together
with elected officials to ensure that the procurement process results in a fair and open competition, and that
terms and conditions do not negatively affect those who will be the recipients of the services.
Should the Commission decide to move forward with the non-exclusive process, the OIG would like to be
given the opportunity to weigh in on the process prior to any agreements being issued.
i Singer, Investigator • ±.
cc: Alina T. Hudak, City Manager
Eric Carpenter, Deputy City Manager
Joe Gomez, Public Works Department Director
Brad Kaine, Sanitation Division Director
Ricardo Dopico, Deputy City Attorney
Alex Denis, Procurement Department Director
OFFICE OF THE INSPECTOR GENERAL, City of Miami Beach
1130 Washington Avenue, 6" Floor, Miami Beach, FL 33139
Tel: 305.673.7020 • Hotline: 786.897.1111
Email: CityofMiamiBeachOIG@miamibeachfl.gov
Website: www.mbinspectorgeneral.com
Page 19 of 19
OIG COMPOSITE
EXHIBIT 1
WASTE CONNECTIONS OF FLORIDA, INC.
WASTE MANAGEMENT, INC. OF FLORIDA
Form: US_ST_042223
WM Agreement #
1. (a) SERVICE GUARANTEE. We guarantee our Services (as defined below). If Company fails to perform Services in accordance with the service summary as provided, which for Services purchased online include the information and terms disclosed during the order and checkout process (collectively, the “Service Summary”), and Company does not remedy such failure within five (5)
business days of its receipt of a written demand from Customer, Customer may immediately terminate this Agreement without penalty. (b) SERVICES RENDERED; WASTE MATERIALS. Customer grants to Company the exclusive right, and Company through itself and its Affiliates shall furnish equipment and services, to collect and
dispose of and/or recycle (collectively, the “Services”) all of Customer's Waste Materials at Customer’s Service Address(es) listed on the Service Summary, subject to the terms and provisions
contained herein (collectively, with the Service Summary, the “Agreement”). If Customer changes its Service Address(es), this Agreement shall remain valid and enforceable with respect to Services rendered at Customer's new service location(s) if such location(s) is within Company's service area. Customer represents and warrants that the materials to be collected under this Agreement shall
be only "Waste Materials" as defined herein. For purposes of this Agreement, "Waste Materials" means all non-hazardous solid waste, organic waste, and if applicable, Recyclable Materials (as defined in Section 12) generated by Customer or at Customer's Service Address(es). Waste Materials includes “Special Waste”, such as industrial process wastes, asbestos-containing material,
petroleum contaminated soils, treated/de-characterized wastes, and demolition debris, for which Customer shall complete a Special Waste Profile sheet to be approved by Company in writing. Waste
Materials excludes, and Customer agrees not to deposit or permit the deposit for collection of (i) any waste tires, (ii) radioactive, volatile, corrosive, flammable, explosive, biomedical, infectious, bio-hazardous, regulated medical or hazardous waste, toxic substance or material, as defined by, characterized or listed under applicable federal, state, or local laws or regulations, (iii) any materials
containing information protected by federal, state or local privacy and security laws or regulations (unless tendered to Company pursuant to an additional Exhibit L to this Agreement), (iv) any other items or material prohibited by federal, state or local laws or regulations, or that could adversely affect the operation or useful life of the facility(ies) receiving Customer’s Waste Materials, or (v) Special Waste not approved in writing by Company (collectively, "Excluded Materials"). Title to and liability for Excluded Materials shall remain with Customer at all times. Title to Customer's Waste
Materials is transferred to Company upon Company's receipt or collection unless otherwise provided in this Agreement or applicable law. 2. CONTRACT TERM. The Initial Term and any subsequent Renewal Term of this Agreement (collectively, the “Contract Term”) is set forth on the Service Summary. Unless otherwise specified on the Service Summary, at the end of the Initial Term and any subsequent Renewal Term, the Contract Term shall automatically renew for an additional Renewal Term at the then current Service levels
and applicable Charges, unless (a) for a Renewal Term of twelve (12) months or more, either party gives to the other party written notice of termination at least ninety (90) days, but not more than
one hundred eighty (180) days, prior to the termination of the then-existing term, and (b) for a Renewal Term of less than twelve (12) months, either party gives to the other party written notice of termination at least thirty (30) days prior to the termination of the then-existing term. Notice of termination received at any other time will be considered ineffective and the Agreement will be
considered automatically renewed upon completion of the then-existing term. 3. TERMINATION RIGHTS. Notwithstanding the foregoing, this Agreement can be terminated prior to the end of the Initial Term or a Renewal Term as follows: (a) by Customer (with no obligation to pay liquidated damages as provided in Section 7), (i) if Company fails to satisfy the Service Guarantee provided in Section 1(a) or (ii) pursuant to Section 4(c) if
Company increases the Charges payable by Customer hereunder with a Consensual Price Increase;
(b) by Customer with thirty (30) days prior written notice to Company, subject to Customer’s obligation to pay liquidated damages as provided in Section 7 no later than thirty (30) days after written notice of termination;
(c) by Company, (i) if as a result of Customer’s breach of Section 5, Company suspends Services for more than fifteen (15) days, or (ii) if Customer fails to cure any other breach of its obligations under this Agreement within five (5) business days of its receipt of written demand from Company to cure such breach; and (d) by Company, with at least fifteen (15) days prior written notice to the Customer, any time after Customer retains, designates or appoints a broker or agent to act for Customer, or manage its
Services, under this Agreement. In order to move containers in a safe, secure and orderly fashion, Company shall have up to seven (7) days to remove any equipment from Customer’s service location(s) after the effective date of
the termination of this Agreement.
4. (a) CHARGES; ADDITIONAL SERVICES; CHANGES. The initial charges, fees and other amounts payable by Customer (“Charges”) for Services and/or equipment furnished by Company to
Customer are set forth on the Service Summary. Company also reserves the right to charge Customer additional Charges for additional Services provided by Company to Customer, whether requested or incurred by Customer, including, but not limited to, container relocation or removal; gate, enclosure or roll out services; account resume or reactivation services; extra pickups or trip
charges; container overages and overflows; and equipment repair and maintenance (see www.wm.com/billhelp for a list of “Additional Services”, which may be updated from time to time), all at such standard prices or rates that Company is charging its customers in the service area at such time. Changes in the frequency of collection, collection schedule, number, capacity and/or type of
equipment, the terms and conditions of this Agreement, and any changes to the Charges payable under this Agreement (including any Consensual Price Increase or Negotiated Price Adjustment),
may be agreed to orally, in writing or by other actions and practices of the parties, including, without limitation, electronic or online acceptance or payment of the invoice reflecting such changes, and written notice to Customer of any such changes and Customer’s failure to object to such changes, which shall be deemed to be Customer’s affirmative consent to such changes.
(b) PERMITTED PRICE INCREASES AND CHARGE MODIFICATIONS. Company reserves the right, and Customer acknowledges that it should expect Company to increase, add, or modify the Charges payable by Customer hereunder during the Contract Term: (i) for any changes or modifications to, or differences between, the actual equipment and Services provided by Company to
Customer and those specified on the Service Summary; (ii) for any changes or difference in the composition, amount or weight of the Waste Materials collected by Company from Customer’s service
location(s) from what is specified on the Service Summary (including for container overages or overflows); (iii) for any increase in or other modification made by Company to the calculation of the Energy Surcharge including additions or modifications to the fuel types used in the calculation, the Recyclable Materials Offset, and/or any other Charges included or referenced in the Service
Summary (which Charges are calculated and/or determined on an enterprise-wide basis, including Company and all Affiliates and subcontractors); (iv) to cover any increases in disposal, processing, and/or transportation costs, including fuel or energy surcharges; (v) to cover increased costs due to uncontrollable circumstances, including, without limitation, changes (occurring from and after three
(3) months prior to the Effective Date) in local, state, federal or foreign laws or regulations (or the enforcement, interpretation or application thereof), including the imposition of or increase in taxes,
fees or surcharges, or acts of God such as floods, fires, hurricanes and natural disasters; and (vi) for increases in the Consumer Price Index (“CPI”) for Water, Sewer and Trash Collection Services published by U.S. Bureau of Labor Statistics, or with written notice to Customer, any other national, regional or local CPI, with such increases in CPI being measured from the Effective Date, or as
applicable, Customer's last CPI based price increase date (“PI Date”). Increases to Charges specified in this Section 4(b) may be applied singularly or cumulatively and may include an amount for Company's operating or profit margin. Customer acknowledges and agrees that any increased Charges under this Section 4 (including any Consensual Price Increases or Negotiated Price Adjustments) are not represented to be solely an offset or pass through of Company’s costs.
(c) CONSENSUAL PRICE INCREASES. Without limiting the foregoing, Company also reserves the right to seek, and Customer acknowledges that it should expect Company to seek, increases in the Charges payable by Customer hereunder for reasons not specifically permitted in Section 4(b) (a “Consensual Price Increase”). If Customer does not accept the Consensual Price Increase,
Customer’s sole right and remedy shall be to terminate this Agreement by written notice to Company no later than thirty (30) days after Company notifies Customer of such Consensual Price Increase. Customer’s failure to terminate this Agreement (within the 30-day period) shall be construed as Customer’s acknowledgement that the continuation of the Services by Company hereunder
is good, valuable and sufficient consideration for the Consensual Price Increase. Notwithstanding the foregoing, the parties may, but are not obligated to, agree to a different increase or an
adjustment to Customer’s Charges (a “Negotiated Price Adjustment”) as a result of a Consensual Price Increase. Absent a Negotiated Price Adjustment, the Consensual Price Increase shall be binding and enforceable against Customer under this Agreement unless the Customer terminates this Agreement (within the 30-day period) as described above. Customer’s agreement to a
Consensual Price Increase or Negotiated Price Adjustment may be evidenced pursuant to Section 4(a) and the parties agree that this Agreement with such modified Charges will continue in full force
and effect. 5. INVOICES; PAYMENT TERMS. Company shall send all invoices for Charges and any required notices to Customer under this Agreement to Customer’s billing address specified in the Service Summary, or if the Customer elects to participate in the Company’s electronic billing program, make them available by email to Customer’s designated e-mail address. Unless specifically agreed to
in writing by Company and subject to such additional costs that Company may charge, in its discretion, Company shall not be required to bill Customer using Customer’s or any third-party billing portal or program. In no event shall the use by Company of Customer’s or any third-party billing portal or program, or any terms thereof, operate to amend or supplement the terms and conditions of this Agreement, which will remain binding in accordance with its terms. Customer shall pay all invoiced Charges within thirty (30) days of the invoice date, by check mailed to Company’s payment
address on Customer’s invoice. Payment by any other method or channel, including in person, online or by phone, shall be as may be allowed by Company and subject to applicable convenience fees and other costs charged by Company, from time to time. Any Customer invoice balance not paid within thirty (30) days of the date of invoice is subject to a late charge, and any Customer check
returned for insufficient funds is subject to a non-sufficient funds charge, both to the maximum extent allowed by applicable law. Customer acknowledges that any late charge charged by Company is not to be considered as interest on debt or a finance charge, and is a reasonable charge for the anticipated loss and cost to Company for late payment. If payment is not made when due, Company
retains the right to suspend Services until the past due balance is paid in full. In addition to full payment of outstanding balances, Customer shall be required to pay a reactivation charge to resume
suspended Services. If Services are suspended for more than fifteen (15) days, Company may immediately terminate this Agreement for default and recover any equipment and all amounts owed hereunder, including liquidated damages under Section 7.
6. EQUIPMENT, ACCESS. All equipment furnished by Company shall remain its property; however, Customer shall have care, custody and control of the equipment and shall be liable for all loss or
damage to the equipment and for its contents while at Customer's service location(s). Customer shall not overload, move or alter the equipment or allow a third party to do so, and shall use it only for its intended purpose. At the termination of this Agreement, Company’s equipment shall be in the condition in which it was provided, normal wear and tear excepted. Customer shall provide safe and unobstructed access to the equipment on the scheduled collection day. Company may suspend Services or terminate this Agreement in the event Customer violates any of the requirements of this
Form: US_ST_042223
WM Agreement #
provision. Customer shall pay, if charged by Company, any additional Charges, determined by Company in its sole discretion, for overloading, moving or altering the equipment or allowing a third party to do so, and for any service modifications caused by or resulting from Customer's failure to provide access. Customer warrants that Customer's property is sufficient to bear the weight of
Company's equipment and vehicles and agrees that Company shall not be responsible for any damage to Customer's pavement or any other surface resulting from the equipment or Services.
7. LIQUIDATED DAMAGES. In the event Customer terminates this Agreement prior to the expiration of the Initial or Renewal Term for any reason other than as set forth in Section 3(a), or in the
event Company terminates this Agreement for Customer's default pursuant to Section 3(c), Customer shall pay the following liquidated damages in addition to Company's legal fees, if any: (a) if the remaining Contract Term (including any applicable Renewal Term) under this Agreement is six (6) or more months, Customer shall pay the average of its six (6) monthly Charges immediately prior to
default or termination (or, if the Effective Date is within six (6) months of Company’s last invoice date, the average of all monthly Charges) multiplied by six (6); or (b) if the remaining Contract Term is less than six months, Customer shall pay the average of its six (6) most recent monthly Charges multiplied by the number of months remaining in the Contract Term. Customer acknowledges that the actual damage to Company in the event of Customer’s early termination or breach of contract is impractical or extremely difficult to fix or prove, the foregoing liquidated damages amount is
reasonable and commensurate with the anticipated loss to Company resulting therefrom, and such liquidated damages payment is an agreed upon charge for Customer’s early termination or breach of contract and is not imposed as a penalty. Customer shall also pay liquidated damages of $100 for every Customer waste tire that is found at any disposal facility used by Company. In addition to
and not in limitation of the foregoing, Company shall be entitled to recover all losses, damages and costs, including attorneys’ fees and costs, resulting from Customer’s breach of any other provision
of this Agreement in addition to all other remedies available at law or in equity. 8. INDEMNITY. Company agrees to indemnify, defend and save Customer and its Affiliates harmless from and against any and all liability which Customer or its Affiliates may suffer, incur or pay as a result of any bodily injuries (including death), property damage or violation of law, to the extent caused by any negligent act or omission or willful misconduct of Company or its employees, which
occurs (a) during the collection or transportation of Customer's Waste Materials, or (b) as a result of the disposal of Customer's Waste Materials in a facility owned by Company or an Affiliate,
provided that Company's indemnification obligations will not apply to occurrences involving Excluded Materials. Customer agrees to indemnify, defend and save Company and its Affiliates harmless from and against any and all liability which Company and its Affiliates may suffer, incur or pay as a result of any bodily injuries (including death), property damage or violation of law to the extent
caused by Customer's breach of this Agreement or by any negligent act or omission or willful misconduct of Customer or its employees, agents or contractors or Customer's use, operation or possession of any equipment furnished by Company. Neither party shall be liable to the other for consequential, incidental or punitive damages arising out of the performance or breach of this
Agreement.
9. RIGHT TO PROVIDE COMPETING OFFERS. If Customer receives an offer from (or makes any offer to) a third party relating to such third party’s provision to the Customer of the same or similar
Services to those provided hereunder, Customer shall give Company prompt written notice of any such offer and a 15-day period to respond to such third party offer prior to Customer agreeing to such third party offer. Except to the extent either party has provided timely written notice of termination as set forth in Section 2, Customer’s acceptance of a competing offer under this Section 9
before the expiration or termination of the current Initial Term or Renewal Term shall be a termination under Section 3(b) and subject to Customer’s obligation to pay liquidated damages as provided
in Section 7. 10.DISPUTE RESOLUTION-ARBITRATION AGREEMENT AND CLASS ACTION WAIVER.BINDING ARBITRATION: Except for those claims expressly excluded below (EXCLUDED CLAIMS), Customer and Company agree that any and all existing or future controversy or claim between them arising out of or related to this Agreement or any prior agreements between the parties, whether
based in contract, law or equity or alleging any other legal theory, or arising prior to, in connection with, or after the termination of this Agreement or any other agreements, shall be resolved by
mandatory binding arbitration (see www.wm.com for details on arbitration procedures). CLASS ACTION WAIVER: Customer and Company agree that under no circumstances, whether in arbitration or otherwise, may Customer bring any claim against Company, or allow any claim that Customer may have against Company to be asserted, as part of a class action, on a consolidated or
representative basis or otherwise aggregated with claims brought by, or on behalf of, any other entity or person, including other customers of Company. EXCLUDED CLAIMS: The following are not subject to mandatory binding arbitration: (a) either party’s claims against the other in connection with bodily injury or real property damage and for environmental indemnification; and (b) Company’s claims against Customer for collection or payment of Charges, damages (liquidated or otherwise) or any other amounts due or payable to Company by Customer under this Agreement or any prior
agreements between the parties, but Customer and Company may mutually agree to arbitrate any Excluded Claims. 11. MISCELLANEOUS. (a) Except for the obligation to make payments hereunder for Services already performed, neither party shall be in default for its failure to perform or delay in performance caused by events or significant threats of events beyond its reasonable control, whether or not foreseeable, including, but not limited to, strikes, labor trouble, riots, imposition of laws or governmental orders, fires, acts of war or terrorism, acts of God, and the inability to obtain equipment, and the affected party shall be excused from performance during the occurrence of such events. (b) This
Agreement shall be binding on and shall inure to the benefit of the parties hereto and their respective successors and assigns. (c) The terms, conditions and disclosures set forth on www.wm.com relating to Billing/Billing Help, Charges, Arbitration Procedures, and for those Customers that sign up for electronic billing and payment, Autopay, are incorporated by reference and made a part
hereof (as such terms, conditions and disclosures may be changed or modified from time to time, effective from such change or modification). In addition to, and not in limitation of, the foregoing, the
terms and provisions of this Agreement may be amended and modified as agreed to by the parties as provided in Section 4(a). Subject to the foregoing, this Agreement represents the entire agreement between the parties and supersedes any and all other agreements for the same Services at the same Customer locations covered by this Agreement, whether written or oral, that may
exist between the parties. (d) This Agreement shall be construed in accordance with the law of the state in which the Services are provided. (e) All written notification to Company required by this Agreement shall be effective upon receipt and delivered by Certified Mail, Return Receipt Requested, courier or by hand to Company’s address on the first page of the Service Summary, provided
that Company may provide written notice to Customer of a different address for written notice to Company. (f) If any provision of this Agreement is declared invalid or unenforceable, then such
provision shall be severed from and shall not affect the remainder of this Agreement; however, the parties shall amend this Agreement to give effect, to the maximum extent allowed, to the intent and meaning of the severed provision. (g) In the event Company successfully enforces its rights against Customer hereunder, Customer shall be required to pay Company's attorneys' fees and court
costs. (h) Notwithstanding the termination of this Agreement, Sections 6, 7, 8, 10, 11, 12(vi) and Customer’s obligation to make payments for all Charges and other amounts due or payable hereunder through the termination date shall survive the termination of this Agreement. (i) It is expressly agreed that the parties shall be independent contractors and that the relationship between the parties
shall not constitute a partnership, joint venture, agency, or employer-employee relationship. (j) The term “Affiliate” means with respect to any specified party, any corporation, limited liability company,
partnership or other legal entity, directly or indirectly, controlled by, controlling or under common control with such specified party, with “control” meaning, directly or indirectly, the power to direct or cause the direction of the management and policies of such legal entity, whether through the ownership of voting securities, by contract or otherwise. (k) “business day” means Monday through
Friday, excluding bank holidays. 12. RECYCLING SERVICES. The following shall apply to fiber and non-fiber recyclables (“Recyclable Materials”) and recycling services. All Recyclable Materials must be clean, dry, unshredded,
empty, loose and unbagged. (i) Single stream Recyclable Materials (“Single Stream”) will consist of Customer’s entire volume of uncoated office and writing paper, magazines, pamphlets, mail, newspaper; flattened, uncoated cardboard, paperboard boxes; aluminum food and beverage containers, tin or steel cans; glass, and rigid container plastics #1, #2 and #5, including narrow neck
containers and tubs. Any material not specifically set forth above, including but not limited to foam, film plastics, plastic bags, napkins, tissue, paper towels, or paper that has been in contact with food, is unacceptable. Glass may not be accepted at all locations. Customer shall provide source-separated wastepaper, cardboard, plastics and metals in accordance with the most current ISRI Scrap Specifications Circular and any amendments thereto or replacements thereof. All other Recyclable Materials will be delivered in accordance with industry standards or such specifications
communicated to Customer by Company from time-to-time. Company reserves the right, upon notice to Customer, to discontinue acceptance of any category of Recyclable Materials set forth above as a result of market conditions related to such materials and makes no representations as to the recyclability of the materials. (ii) Notwithstanding anything to the contrary contained herein,
Recyclable Materials may not contain Special Waste, Excluded Materials or other materials that are deleterious or capable of causing material damage to any part of Company’s property, its
personnel or the public or materially impair the strength or the durability of Company’s structures or equipment. (iii) Company may reject in whole or in part, or may process, in its sole discretion, Recyclable Materials not meeting the specifications. Customer shall pay Company for all increased costs, losses and expenses incurred with respect to such non-conforming Recyclable Materials
which charges may include an amount for Company’s operating or profit margin (collectively the “Cost”). Without limiting the foregoing, Customer shall pay a contamination charge for additional handling, processing, transporting and/or disposing of such non-conforming Recyclable Materials, Special Waste, Excluded Materials, and/or all of part of non-conforming loads and additional
charges may be assessed for bulky items such as appliances, concrete, furniture, mattresses, tires, electronics, pallets, yard waste, propane tanks, etc. Collected Recyclable Materials for which no commercially reasonable market exists may be landfilled at Customer’s Cost. (iv) Recycling Services are subject to a Recyclable Material Offset (RMO) charge to the extent that (a) Company’s processing cost per ton, including costs of disposal for contamination, plus profit margin, exceeds (b) an amount equal to recyclables value per ton minus an amount for profit margin. The RMO
charge, including profit margin, processing and disposal costs and recyclable value shall be determined by Company from time-to-time, in its sole discretion, based on applicable operating data and market information. If recyclables value exceeds processing costs, plus profit margin, a RMO credit may apply, at Company’s sole discretion. (v) Where Company has agreed in writing to provide a
market-based rebate to Customer, the following shall apply. Customer acknowledges that the market value for Recyclable Materials will fluctuate based upon various factors, and such materials may
at times have no value or that the value may be negative. Company will establish the value of Recyclable Materials each month based upon such various factors, including but not limited to quantity, quality and location. For recycling services, Company shall pay or charge Customer on or about the last day of each month for Recyclable Materials accepted during the preceding month, after
deduction of any charges owed to Company by Customer. Any invoice shall be payable upon receipt. Where recyclable processing services are provided, Charges may include separate fuel and environmental surcharges for recycling services as set forth at www.wm.com. (vi) Notwithstanding anything to the contrary set forth above, the liquidated damages calculation set forth in Section 7 of
this Agreement shall not apply to any Customer breach of the Agreement pertaining to Services for Recyclable Materials which have been determined by Company to have a positive value. If a
Form: US_ST_042223
WM Agreement #
breach occurs under such circumstances, the damages shall be determined by calculating actual damages rather than such liquidated damages. (vii) Service arrangements will be agreed upon between Customer and Company for the service location(s) set forth in this Agreement. For trailer load quantities, Customer shall load trailers to full visible capacity to achieve 40,000 pounds
minimum shipping weight and trailers shall be loaded or caused to be loaded in accordance with the most current ISRI/AF&PA Shipping Guide. Freight and/or adjustments may apply to light loads. For baled wastepaper picked up by bale route service, the minimum quantity for pickup is six (6) bales and for purposes of payment, weights shall be estimated weights.
OIG
EXHIBIT 2
From:Phil Bresee
To:Kaine, Bradford
Date:Monday, April 11, 2022 10:11:54 AM
Attachments:Outlook-wfckolsa.pngOutlook-bihbrzcs.pngOutlook-uth1enqz.png
Outlook-nxkn0bpq.pngOutlook-5vxggihx.pngOutlook-gjkxxbl4.pngMB City Commission Mtg-DRAFTv3_jlg edits_pdb.pptx
[ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL - USE CAUTION WHENREPLYING AND OPENING LINKS OR ATTACHMENTS ]
I am just getting back and was unable to speak with John.
Here is the latest version that addresses Joe's comments. I suspect we'll need to kick the
recommendations slide around a little more.
Also: Would love for any feedback on the business outreach. Was not 100% comfortable on how I revised
it, but there may not be much else we can do with it.
Phil Bresee
Senior Consultant
17935 College Road, Hagerstown, MD 21740
Toll-Free 800.679.9220 x 89 | Direct 301.760.4119 | Cell 954.604.9475
pbresee@mswconsultants.com | mswconsultants.com
Please consider the environment before printing this e-mail.
From: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>
Sent: Monday, April 11, 2022 9:49 AM
To: Phil Bresee <PBresee@mswconsultants.com>
Subject: RE: PLEASE SEE DRAFT PRESENTATION FOR FERC FOR COMMERICAL FRANCHISE HAULER
OPTIONS
Can you send me what changes you have made.
Thanks
Bradford KaineDirector Sanitation Division
MIAMIBEACH
PUBLIC WORKS DEPARTMENT /Sanitation Division
BradfordKaine@miamibeachfl.gov
140 MacArthur Cswy, Miami Beach, FL 33139
Tel: 305.673.7616 ext .3541 / Fax: 305.673.7627 / www.miamibeachfl.govWe are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community.
From: Phil Bresee <PBresee@mswconsultants.com>
Sent: Monday, April 11, 2022 7:54 AM
To: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>
Subject: Re: PLEASE SEE DRAFT PRESENTATION FOR FERC FOR COMMERICAL FRANCHISE HAULER
OPTIONS
[ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL - USE CAUTION WHEN REPLYING AND
OPENING LINKS OR ATTACHMENTS ]
G’morning, Brad. I am taking my mother to a pretty critical Drs appointment this a.m.
As to the deck, I’ve made all the changes except for addressing the comments on the comparative
matrices and the recommendations, which I wanted John to think about.
I don’t know when I’ll be done with mom’s appointment but have flipped your email to John to see if he
can help out. I’ll let you know as soon as I hear anything.
Get Outlook for iOS
From: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>
Sent: Monday, April 11, 2022 7:25:34 AM
To: Phil Bresee <PBresee@mswconsultants.com>
Subject: RE: PLEASE SEE DRAFT PRESENTATION FOR FERC FOR COMMERICAL FRANCHISE HAULER
OPTIONS
Phil,
I have an 1130am today with Joe and our ACM. I would like if we can get together for about 20 minutes
early this am and make the necessary corrections to the powerpoint before that.
Thanks
Bradford KaineDirector Sanitation Division
MIAMIBEACH
PUBLIC WORKS DEPARTMENT /Sanitation Division
BradfordKaine@miamibeachfl.gov
140 MacArthur Cswy, Miami Beach, FL 33139
Tel: 305.673.7616 ext .3541 / Fax: 305.673.7627 / www.miamibeachfl.govWe are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community.
From: Phil Bresee <PBresee@mswconsultants.com>
Sent: Sunday, April 10, 2022 4:56 PM
To: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>
Subject: Re: PLEASE SEE DRAFT PRESENTATION FOR FERC FOR COMMERICAL FRANCHISE HAULER
OPTIONS
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OPENING LINKS OR ATTACHMENTS ]
Ok, good. I’ll look them over tonight.
Have most of the memo ready - perhaps Joe's comments allow us to seal it up.
Get Outlook for iOS
From: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>
Sent: Sunday, April 10, 2022 4:51:04 PM
To: Phil Bresee <PBresee@mswconsultants.com>
Subject: FW: PLEASE SEE DRAFT PRESENTATION FOR FERC FOR COMMERICAL FRANCHISE HAULER
OPTIONS
See Joe’s comments on the selected slides. Most of them are easy to address. Some I am just going to
have to explain to him why we are doing it like this.
Thanks
Bradford KaineDirector Sanitation DivisionMIAMIBEACH
PUBLIC WORKS DEPARTMENT /Sanitation DivisionBradfordKaine@miamibeachfl.gov140 MacArthur Cswy, Miami Beach, FL 33139Tel: 305.673.7616 ext .3541 / Fax: 305.673.7627 / www.miamibeachfl.govWe are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community.
From: Gomez, Joe <JoeGomez@miamibeachfl.gov>
Sent: Sunday, April 10, 2022 4:38 PM
To: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>; Knowles, Rodney
<rodneyknowles@miamibeachfl.gov>
Subject: RE: PLEASE SEE DRAFT PRESENTATION FOR FERC FOR COMMERICAL FRANCHISE HAULER
OPTIONS
Brad, attached is the presentation with my comments. Please go over them and address with MSW prior
to our internal meeting this week. Call me if you have aby questions. Overall a good presentation.
Joe
MIAMIBEACHRISINGABOVE
Joe L. Gómez, PE, F. FES
DirectorDepartment of Public Works
1700 Convention Center Drive, Miami Beach, FL 33139
Direct Tel: 305.673.7030, Mobile: 786.492.2974
We are committed to provide excellent public service and safety to all who live, work, and play in our
vibrant, tropical, historic community.
From: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>
Sent: Wednesday, April 6, 2022 9:34 PM
To: Gomez, Joe <JoeGomez@miamibeachfl.gov>; Knowles, Rodney <rodneyknowles@miamibeachfl.gov>
Subject: PLEASE SEE DRAFT PRESENTATION FOR FERC FOR COMMERICAL FRANCHISE HAULER OPTIONS
Gentleman,
For your comments and review. We tried to simply the presentation as much as possible for our
audience as these terms and issues can be very technical.
Thanks
Bradford KaineDirector Sanitation Division
MIAMIBEACH
PUBLIC WORKS DEPARTMENT /Sanitation Division
BradfordKaine@miamibeachfl.gov
140 MacArthur Cswy, Miami Beach, FL 33139
Tel: 305.673.7616 ext .3541 / Fax: 305.673.7627 / www.miamibeachfl.govWe are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community.
Commercial Solid Waste
Services Franchise
Agreement
Miami Beach City Commission
Finance & Economic Resiliency
Committee
April 29, 2022
GJ0
Slide 1
GJ0 I would change the logo to the new CMB logo.
Gomez, Joe, 2022-04-10T20:16:40.196
PB0 0 Done.
Phil Bresee, 2022-04-11T14:08:26.271
Founded in 2004
Headquartered in Orlando with offices in
Pennsylvania & Maryland
Key Practice Areas:
Solid waste system planning
Material stream characterization
Collection and facility operations
Recycling program optimization
Solid waste user fee and rate studies
Procurement and contracting support
MSW Consultants
Project Overview:
MSW Consultants engaged by City in November 2021 to support 2022 re-
bid of commercial solid waste franchise services. Key project tasks include:
Benchmarking of Regional Cities
Business Outreach & Rate Research
Procurement Support
Residential up to 8 Units = ~6,700 Households
• Includes single-family homes and residential structures up to 8 dwelling
units
• 2x week garbage; weekly yard trash; scheduled bulk (Waste
Connections)
• Weekly recycling (Coastal Waste & Recycling – through Miami-Dade
County)
• Drop-off services for bulk, yard trash, e-waste, etc.
Commercial, incl. Multi-family 8+ units = ~2,300 properties.
Collection services from:
• Dumpsters
• Compactors
• Roll-out carts
Commercial & multi-family properties contract directly with haulers
Miami Beach Solid Waste & Recycling
Services Overview:
GJ0
Slide 4
GJ0 Need to define what HH is
Gomez, Joe, 2022-04-10T20:17:50.349
Waste Management:
61% of market share
~1,400 properties or
accounts
Waste Connections:
39% of market share
~900 properties or
accounts
Miami Beach Commercial Solid Waste Service
Providers:
Agreements in place since
October 2014
3-year extensions in September
2019
Contracts expire September
30, 2022
Seeking month-to-month
extensions up to March 2023
In-kind services include:
Collections at 30+ City facilities
Public litter/recycling can
collections
Special events collections
containers
Other programs & funding
support:
$400,000 for illegal dumping
programs
$90,000 for environmental
education
$60,000 for 4 Household
Hazardous Waste events
$25,000 for environmental
programs
Contract Terms & Selected Special Services:
GJ0
Slide 6
GJ0 Define what HHW is.
Gomez, Joe, 2022-04-10T20:19:12.073
Issue competitive procurement for
commercial services only
Retain Waste Connections for residential services
No change to open-top roll-off system (primarily for
C&D debris)
Change from non-exclusive system to
exclusive system
Commercial recycling must remain open-market,
but exclusive hauler can still provide services
New contract to allow commercial customers to
retain existing service agreements until expiration
Sanitation Division to take on greater
responsibility for contractor management,
customer service, and invoicing
MSW Consultants to draft procurement
documents and assist with evaluations
Commercial Procurement: Current Plan
Dumpsters
Compactors
Carts
GJ0
Slide 7
GJ0 Explain what an open-top roll-off system is.
Not sure I understand the highlighted statement.
Gomez, Joe, 2022-04-10T20:23:41.133
PB0 0 Joe - What we’re trying to convey is that the switch will not automatically switch and then individual businesses will have grace period to change hauler.
Phil Bresee, 2022-04-11T14:00:04.169
Researched cities in:
Miami-Dade County
Broward County
Palm Beach County
Evaluated contracts and
pricing for 10 cities
Benchmarking:
GJ0
Slide 8
GJ0 Try to space the bullets a bit more to minimize the white space on the slide.
Gomez, Joe, 2022-04-10T20:24:29.799
PB0 0 Done - Hopefully OK
Phil Bresee, 2022-04-11T14:00:24.581
Open Market
• Allows for larger
number of
companies to
compete
• Solid waste
generators hire their
own hauler
Non-Exclusive
• Can permit multiple
franchisees who
compete for service
• Can be organized by
geographic area
Exclusive
• Franchisee is only
service provider and
has exclusive “right”
to provide service
Solid Waste Management System
Approaches:
Less Regulatory Control More Regulatory Control
City County Population Form of Regulation
Coral Gables Miami-Dade 49,248 Exclusive Franchise
Coral Springs Broward 134,394 Exclusive Franchise
Davie Broward 105,691 Exclusive Franchise
Boca Raton Palm Beach 97,422 Non-Exclusive Franchise
Delray Beach Palm Beach 66,846 Exclusive Franchise
Hialeah Miami-Dade 223,109 Open Market
Miami Miami-Dade 442,241 Open Market
Miami Beach Miami-Dade 82,890 Non-Exclusive Franchise
North Miami Miami-Dade 60,191 Exclusive Franchise
North Miami Beach Miami-Dade 43,676 Exclusive Franchise
Pompano Beach Broward 112,046 Exclusive Franchise
Sunrise Broward 97,335 Exclusive Franchise
Tamarac Broward 71,897 Exclusive Franchise
West Palm Beach Palm Beach 117,415 Non-Exclusive Franchise
Commercial Collection System
Organization in Other Cities
Font = Contracts and rates analyzed
GJ0
Slide 10
GJ0 I would use a different color to highlight those cities that use pricing as part of the evaluation. I would also show MB and its populaton to illustrate the comparison of size.
Gomez, Joe, 2022-04-10T20:27:21.335
PB0 0 Done - hopefully OK
Phil Bresee, 2022-04-11T14:00:43.288
Standard Commercial Container Rate
Matrix
Container
Type
Container
Size 1x 2x 3x 4x 5x 6x 7x
Dumpster 2 yd $____ $____ $____ $____ $____ $____ $____
Dumpster 3 yd $____ $____ $____ $____ $____ $____ $____
Dumpster 4 yd $____ $____ $____ $____ $____ $____ $____
Dumpster 6 yd $____ $____ $____ $____ $____ $____ $____
Dumpster 8 yd $____ $____ $____ $____ $____ $____ $____
Pickups Per Week
GJ0
Slide 11
GJ0 Not sure if I understand what the value of this slide is.
Gomez, Joe, 2022-04-10T20:27:55.470
PB0 0 Intended to show framework for best way to price commercial container services.
Phil Bresee, 2022-04-11T14:02:43.077
Commercial Container Rates:
Analysis:
•Most cities use standard rate matrix, consistent with industry-standard
pricing practices
•Some cities still rely on cubic-yard pricing models, which are not
economically rational
City Miami BeachCoral GablesCoral SpringsDavieDelray BeachNorth MiamiNorth Miami BeachPompano BeachSunriseTamaracWest Palm BeachYear 2022 2022 2022 2021 2021 2022 2022 2022 2022 2022 2022
Std. Rate Matrix?
CY Charge
Non-Compacted $14.98 $7.26 $12.53
Compacted $27.31 $11.18 $23.47
PB0
Slide 12
PB0 Add compactor rates from previous slide
Phil Bresee, 2022-03-30T18:18:40.046
Compactor Services:
Analysis:
•Compactor pricing appears consistent with industry standard
pricing
City Miami BeachDelray BeachDavieCoral SpringsPompano BeachSunriseCoral GablesYear 2022 2022 2022 2022 2022 2022 2022
Compactor Rate
Pull Charge $210.00 $275.00 $442.27 $336-569 $262.00 $513.76
Disposal Pass Thru Pass Thru Pass Thru Pass Thru Pass Thru Pass Thru
GJ0
Slide 13
GJ0 Explain what pass thru means in this context.
Gomez, Joe, 2022-04-10T20:29:07.709
PB0 0 Will address shortly...will likely revise the table itself.
Phil Bresee, 2022-04-11T14:01:22.639
Multi-Family Rates & Service Levels:
Analysis:
•Pricing is not uniform
•Some cities price services by dwelling unit (similar to residential pricing
model)
•Some cities treat multi-family properties as commercial establishments
City Miami BeachCoral GablesCoral SpringsDavieDelray BeachNorth MiamiNorth Miami BeachPompano BeachSunriseTamaracWest Palm BeachYear 2022 2022 2022 2021 2022 2022 2022 2022 2022 2022 2022
Per Unit for some buildings? × × × × ×
Per Unit Rate $6.05 $14.79 $16.44 $5.12
Per Unit Rate Lower than SF?
Container Rates for some buildings? ×
MSW Consultants developed
14-question survey to gather
feedback on MF/C garbage and
recycling services
Request was for survey to be
distributed to members
Organizations contacted:
Lincoln Road BID
Washington Avenue BID
Ocean Drive Association
Normandy Fountain Business
Association
Miami Beach Chamber of
Commerce
Florida Restaurant & Lodging
Association (Miami-Dade County
chapter)
Miami Quality Management
(property management firm)
Total potential audience of
1,500+
Business Outreach:
Priorities from associations, individual businesses, and condominium
board members included:
Improve quality of service, including collection consistency
Improve hauler accountability
Add clarity to hauler – property contract pricing, including special
charges
Decrease traffic and the number of trucks on the street
Increase uniformity (i.e., more standard dumpsters and carts)
City support for contractor customer service, enforcement, contract
disputes
Business Outreach: Qualitative Input
MSW Consultants obtained pricing
information and hauler invoices from
property management firm
15 properties total; range in size from
6 to 21 dwelling units (13 is average)
Analyzed hauler invoices from 15
properties to review:
Service levels (garbage & recycling)
Container types
Charges and fees (including by type)
Costs
Per service
Per household
Service capacity
Garbage
Recycling
Multi-Family Property Rate Analysis:
Review of invoices reveal:
Rates for both garbage and
recycling vary widely, both in
service level and price per
household per month
Many invoices include
supplemental charges:
Environmental
Administrative
Regulatory cost recovery
Fuel charges
Inconsistency in garbage and
recycling capacity per HH
Low capacity in the form of smaller
containers or fewer pickups can
lead to container overflow
Multi-Family Property Rate Analysis:
Garbage Low High Average
Cost/Month/Cubic Yard $20.05 $79.26 $44.69
Cost/Month/HH $22.64 $85.38 $43.27
Weekly Capacity (in Lbs. per HH) 6.8 40.7 23.6
Recycling Low High Average
Cost/Month/Cubic Yard $25.82 $91.99 $50.40
Cost/Month/HH $5.88 $24.89 $11.02
Weekly Capacity (in Lbs. per HH) 1.82 5.10 2.6
ProPro ConCon
Procurement process allows for
competitive pricing
Prices should decrease for most
businesses
Improved service level and pricing
transparency
Improved operational efficiencies &
economies of scale
Streamlined contract management
and oversight
Improved hauler accountability
Less truck traffic on streets
Fewer GHG emissions
Pros & Cons of Exclusive Collection:
Limited customer choice
Some rates may increase
Perceived reduction in market
competitiveness
South Florida Municipal
Contracts
Waste
Management
Waste
Connections
Republic Services
Coastal Waste &
Recycling
Waste Pro
FCC
Environmental
Services
Potential Bidding Market:
Other Potential Market
Entrants
GFL
Environmental
JJ’s Waste &
Recycling
Authorize staff to enter into negotiations with Waste
Connections for extension of residential services
Authorize staff to negotiate month-to-month
extensions and not to exceed six months with Waste
Management and Waste Connections to allow for
procurement process to move forward
Authorize staff to procure commercial solid waste
franchise services under an exclusive franchise system
Recommendation:
GJ0
Slide 21
GJ0 This slide needs a bit more work to make a strong recommendation.
Gomez, Joe, 2022-04-10T20:31:52.116
PB0 0 Agreed. See additional bullets that cover the key things you'll need the OK to do.
Phil Bresee, 2022-04-11T14:08:03.640
Revert to open-market for
commercial collections:
City could license haulers
Maintain status quo
approach with 2 non-
exclusive haulers
Issue zone-based exclusive
franchises
Other Options:
GJ0
Slide 22
GJ0 Same comment as previous slide.
Gomez, Joe, 2022-04-10T20:32:31.653
PB0 0 Done.
Phil Bresee, 2022-04-11T14:08:12.106
John Culbertson
Principal
(407) 380-8951
Jculbertson@mswconsultants.com
Phil Bresee
Senior Consultant
(954) 604-9475
Pbresee@mswconsultants.com
Thank You & Questions
OIG
EXHIBIT 3
From:AlinaHudak@miamibeachfl.gov
To:NaimaDePinedo@miamibeachfl.gov
Cc:LesterSola@miamibeachfl.gov
Subject:RE: Meeting with the Manager on Solid Waste Franchise Contract
Date:Monday, April 11, 2022 4:28:49 PM
Let’s get this scheduled ASAP.
Alina T. Hudak, City Manager
OFFICE OF THE CITY MANAGER
1700 Convention Center Drive, Miami Beach, FL 33139
Tel: 305-673-7000 ext. 26486 / Fax: 305-673-7782 / www.miamibeachfl.gov
From: De Pinedo, Naima <NaimaDePinedo@miamibeachfl.gov>
Sent: Monday, April 11, 2022 3:09 PM
To: Hudak, Alina <AlinaHudak@miamibeachfl.gov>
Cc: De Pinedo, Naima <NaimaDePinedo@miamibeachfl.gov>
Subject: FW: Meeting with the Manager on Solid Waste Franchise Contract
Alina,
I’m trying to squeeze this in next week; let me know if you prefer this go to the May meeting.
From: Mejia, Camila <CamilaMejia@miamibeachfl.gov>
Sent: Monday, April 11, 2022 3:06 PM
To: De Pinedo, Naima <NaimaDePinedo@miamibeachfl.gov>
Subject: RE: Meeting with the Manager on Solid Waste Franchise Contract
Yes mam.
If they can’t have the meeting, then they will need to defer the item until May
M. Camila Mejia, Assistant to the Director
PUBLIC WORKS DEPARTMENT
1700 Convention Center Drive, Miami Beach, FL, 33139
Tel : 305-673-7080 Ext: 26192
We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community. Please do not print this e-mail unnecessarily
From: De Pinedo, Naima <NaimaDePinedo@miamibeachfl.gov>
Sent: Monday, April 11, 2022 3:04 PM
To: Mejia, Camila <CamilaMejia@miamibeachfl.gov>
Subject: RE: Meeting with the Manager on Solid Waste Franchise Contract
Hi,
Does the meeting need to happen prior to the agenda item printing? I will likely need to speak with her
and move something.
From: Mejia, Camila <CamilaMejia@miamibeachfl.gov>
Sent: Monday, April 11, 2022 2:55 PM
To: De Pinedo, Naima <NaimaDePinedo@miamibeachfl.gov>
Subject: FW: Meeting with the Manager on Solid Waste Franchise Contract
Importance: High
Hi Naima,
I hope this email finds you well.
Joe is requesting me to set up this meeting with Alina as soon as her schedule permits.
This meeting is in reference to an item going of April’s FERC.
Would you please, provide me with available times?
M. Camila Mejia, Assistant to the Director
PUBLIC WORKS DEPARTMENT
1700 Convention Center Drive, Miami Beach, FL, 33139
Tel : 305-673-7080 Ext: 26192
We are committed to providing excellent public service and safety to all who live, work and play in our vibrant, tropical, historic community.
Please do not print this e-mail unnecessarily
From: Gomez, Joe <JoeGomez@miamibeachfl.gov>
Sent: Monday, April 11, 2022 2:46 PM
To: Mejia, Camila <CamilaMejia@miamibeachfl.gov>
Cc: Kaine, Bradford <BradfordKaine@miamibeachfl.gov>; Knowles, Rodney
<rodneyknowles@miamibeachfl.gov>
Subject: Meeting with the Manager on Solid Waste Franchise Contract
Importance: High
Hi Cami, I need you to schedule a meeting with Alina and the following folks for next week:
Lester
Brad
George Ruiz
Rodney
Joe
We can do in 30 minutes but just in case I would have an hour blocked off. In case Naima presses you on
how important is this meeting, we have an item going to FERC on April 29th and we need to have this
meeting with her before the 29th or we will need to defer the item until May.
Joe
MIAMIBEACHRISINGABOVE
Joe L. Gómez, PE, F. FES
Director
Department of Public Works
1700 Convention Center Drive, Miami Beach, FL 33139
Direct Tel: 305.673.7030, Mobile: 786.492.2974
We are committed to provide excellent public service and safety to all who live, work, and play in our
vibrant, tropical, historic community.
From:Gomez, Joe
To:LesterSola@miamibeachfl.gov; Kaine, Bradford; Ruiz, George; Knowles, Rodney; Hudak, Alina
Subject:Meeting with PW - Solid Waste Franchise Contract
Start:Tuesday, April 19, 2022 11:00:00 AM
End:Tuesday, April 19, 2022 12:00:00 PM
Location:Microsoft Teams Meeting
________________________________________________________________________________Microsoft Teams meetingJoin on your computer or mobile appClick here to join the meeting<https://teams.microsoft.com/l/meetup-join/19%3ameeting_NzBiNDlkZGQtYTZjMi00ZTk4LWI3N2UtNTAyOTc5N2YyNzA4%40thread.v2/0?context=%7b%22Tid%22%3a%22551608f9-48f3-4871-808a-a969ec5cf48a%22%2c%22Oid%22%3a%2211e859a8-e90b-450b-aa8d-004e1614cf56%22%7d>Or call in (audio only)+1 786-636-1480,,25564927#<tel:+17866361480,,25564927#> United States, MiamiPhone Conference ID: 255 649 27#Find a local number<https://dialin.teams.microsoft.com/27a0cff4-d357-4d68-a8b8-cdfc9544358c?id=25564927> | ResetPIN<https://mysettings.lync.com/pstnconferencing>Learn More<https://aka.ms/JoinTeamsMeeting> | Meeting options<https://teams.microsoft.com/meetingOptions/?organizerId=11e859a8-e90b-450b-aa8d-004e1614cf56&tenantId=551608f9-48f3-4871-808a-a969ec5cf48a&threadId=19_meeting_NzBiNDlkZGQtYTZjMi00ZTk4LWI3N2UtNTAyOTc5N2YyNzA4@thread.v2&messageId=0&language=en-US>________________________________________________________________________________
OIG
EXHIBIT 4
11875 High Tech Ave, Suite 150, Orlando, FL 32817
(800) 679-9220
Meeting Notes – City of Miami Beach Multi-family & Commercial Property (MF/C) Solid
Waste Services Forum
Date/Time: July 7, 2022, 6 p.m.
Location:Miami Beach Golf Club
City Staff Present: Joe Gomez, Brad Kaine, Rodney Knowles, Rickelle Williams, Kevin Pulido
MSW Consultants: Phil Bresee
City Elected Officials Present: Commissioners Steven Meiner, Alex Fernandez and Kristen
Rosen Gonzalez
Estimated Attendees: 40-45 (head count); 32 recorded on sign-in sheet.
Meeting Proceedings: Kevin Pulido, director of the public works department’s neighborhood
affairs division, opened the meeting, welcomed attendees and introduced public works director
Joe Gomez. Mr. Gomez introduced city staff and consultant and also asked how many attendees
were representing MF/C properties and how may were representing private waste haulers or
brokers. A show of hands indicated about a 60-40 split on the hauler side.
Mr. Gomez delivered a PowerPoint presentation on the project and which summarized project
actions to-date and next steps. He also recognized e-mails that had come into the city
commission and clarified that no decision has been made on whether the city will pursue an
exclusive franchise system for MF/C services. That decision will ultimately be made by the city
commission, and the objective of tonight’s forum is to obtain critical feedback from system
stakeholders.
Mr. Gomez and Mr. Pulido directed attendees to the survey, which is posted live again through
SurveyMonkey and was made available in hard copy format during the meeting. Immediately
following Mr. Gomez’ presentation, attendees were given the opportunity to provide comments
and ask questions. Speakers were asked to identify themselves prior to asking their questions or
providing comments. They were given approximately two minutes.
Summaries of the individual questions and comments are presented below:
1. Valerie Novorele commented that this was the first time that she became aware of the survey
and asked for clarification on how it was distributed.
2. Unidentified resident asked for confirmation on whether this is for all services (including
residential) or for just MF/C services. He indicated that his property has one year left on its
contract with its current hauler and that they experience terrible service. He indicated that
more competition is needed, not less.
3. Luciano Isla identified himself as a waste broker and stated that City Code authorizes up to
five haulers. He opined that more haulers allow for more negotiating power and better
service on behalf of property owners and that more stringent hauler requirements can be
incorporated into City code. An exclusive franchise system will create a monopoly. Luciano
also asked why the city is rushing to this recommendation.
first time that she became aware of the survey
and asked for clarification on how it was distributed.
(g
He indicated that his property has one year left on its)j pp y y
contract with its current hauler and that they experience terrible service. He indicated that
more competition is needed, not less.
Luciano py y
also asked why the city is rushing to this recommendation.
2
4. Tabitha Pennington shared that condominium properties are considered commercial
properties and frequently must lock-in on contracts with haulers. She also shared complaints
about broken locks and container damages often caused by haulers that her properties are
then held liable for. She said brokers have some leverage with haulers and can help
negotiated down damages, but that properties should not have to operate under this type of
system.
5. An unidentified resident stated that there was no recycling at his property and asked if it was
required. City staff detailed how MF/C recycling is provided and agreed to follow-up with
resident regarding status of recycling at his property.
6. Connie Gonzalez asked for clarification on whether the City was accepting just one survey
per business.
7. Jack Levenbrown commented that competition is good. He also asked if through and
exclusive franchise system if the City could guarantee most favored nations’ status to
properties, ensuring that they have the lowest rates in the region.
8. Robert Wolfarth asked for the background of the City’s commercial solid waste contracting,
e.g., how long has the city had two haulers.
9. Commissioner Kristen Rosen Gonzalez asked questions related to whether the City could
revert to an open-market system and include more than five haulers. She also relayed that her
office has received more than 100 complaints from City residents and businesses about their
solid waste services since the forum was announced and she asked representatives of Waste
Management and Waste Connections to respond to them.
10. Jason Young from Waste Management spoke to charges for fuel adjustments as something
that many properties are seeing on their invoices now. He also shared that he does not believe
that an exclusive system is the best fit for Miami Beach saying instead that three to five
haulers is probably about right.
11. Mike Gibaldi asked about the contamination rate of the City’s recyclables. He said the City
should have mechanisms to hold haulers accountable for better recycling and recycling
outreach.
12. An unidentified resident said he does not believe an exclusive hauler would result in lower
pricing for ratepayers and that having only one hauler can be “dangerous”. He also
commented about the difficulties in undertaking a container and dumpster switch-out when
new contracts are awarded.
13. An unidentified resident asked if the city could select five new haulers but leave the
incumbents out of the new agreements.
14. An unidentified resident asked if the research into approaches from the benchmarked cities
would be made available.
With no further questions or comments, Mr. Gomez recapped the next steps to attendees and
directed them to the survey. The forum adjourned at approximately 7:05 p.m.
She also shared complaintspp q y p
about broken locks and container damages often caused by haulers that her properties are gypp
then held liable for. She said brokers have some leverage with haulers and can help gp
negotiated down damages, but that properties should not have to operate under this type of
system.
g
OIG
EXHIBIT 5
<< 1 >>
Solid Waste Hauler Commercial Franchise Hauler Presentation
1
Update
From
April 29, 2022, FERC Meeting
<< 2 >>
Takeaways from the Last Presentation
2
1.Low Response to the On-Line Survey
a.Only 15 Responses Received
2.Limited Municipality Data Sampling Reviewed
a.13 Municipalities
<< 3 >>3
Thursday, July 7, 2022
<< 4 >>
Summary of Industry Forum
4
•Attended by approximately 40 persons; with 32 registered
on sign-in sheet.
•Provided an update to the Community
•Survey provided; hard copies and on-line (over 140
responses received)
•Q & A
•What works, what doesn’t
•How can we improve
•Overall Satisfaction
<< 5 >>
Survey
5 Online survey address:https://www.surveymonkey.com/r/KBZMGJV
<< 6 >>
Some Results from the Survey
6
How satisfied are you with the following aspects of your trash and recycling service?
Response Quality of Service Cost of Service
No Opinion 1%12%
Poor 35%45%
Average 31%24%
Good 22%11%
Great 11%7%
What is more important to you?
Response Rate
Getting high-quality service 27%
Having the ability to hire another waste services
provider 41%
Getting the lowest price for services provided 29%
No opinion 3%
<< 7 >>
Background-Types of Agreements
7
Open Market
•Allows for larger
number of companies
to compete
•Solid waste generators
hire their own hauler
•No limit as to the
number of operators
within a geographical
area
Non-Exclusive
•Can permit multiple
franchisees who
compete for service
•Can be organized by
geographic area
•Current system in
Miami Beach
•Section 90-229 of the
City Code allows up to
five franchises
Exclusive
•Franchisee is only
service provider and
has exclusive “right” to
provide service
•Prices are pre-
negotiated between
franchisee and the City
•Provides price stability
over life of the
contract
Less Regulatory Control More Regulatory Control
<< 8 >>
Population by County and
Number of Cities reviewed
8
Population
by county for
the cities
reviewed
-
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Miami-Dade Broward Palm Beach Pinellas Lee Collier Monroe
Miami-Dade, 2,588,635
Broward, 1,928,018
Palm Beach, 1,417,653
Pinellas, 964,416
Lee, 776,995
Collier, 382,680
Monroe, 83,411
30 28 33 25 10 4 9
POPULATION AND CITIES
Population Total
Cities
•91 Municipalities in Tri-
County Area
•48 Municipalities in Four
Additional Counties
•Total of 139 Municipalities
Reviewed
•Population numbers
reflect municipalities that
provided data
<< 9 >>
Breakdown of Franchise Type
9
Cities Reviewed
County Population Total
Cities
Open
Market
Non
Exclusive Exclusive City
Miami-Dade 2,588,635 30 15 4 8 3
Broward 1,928,018 28 3 1 21 3
Palm Beach 1,417,653 33 1 2 25 5
Pinellas 964,416 25 3 0 12 10
Lee 776,995 10 0 0 9 1
Collier 382,680 4 0 0 3 1
Monroe 83,411 9 0 0 9 0
Totals 8,141,808 139 22 7 87 23
16%5%63%17%Population numbers reflect municipalities that provided data
<< 10 >>
Tri-County Market By Percentage
10
Open Market
21%
Non-Exclusive
8%
Exclusive
59%
City
12%
TRI-COUNTY MARKET
Open Market Non-Exclusive Exclusive City
County Open Market Non-Exclusive Exclusive City Total Cities
Tri Counties 19 7 54 11 91
21%8%59%12%100%
<< 11 >>
Miami-Dade
11
County City
Names
Open
Market Non Exclusive Exclusive
Franchise City
Unincorporated 1,197,784
Bal Harbour 3,084
Biscayne Park 3,119
Coral Gables 50,193
Cutler Bay 45,478
Doral 80,703
Golden Beach 955
Hialeah 225,493
Hialeah Gardens 23,055
Indian Creek 84
Key Biscayne 14,815
Medley 1,047
Miami 449,747
Miami Beach 82,785
Miami Gardens 112,508
Miami Lakes 30,857
Miami Shores 11,548
Miami Springs 13,851
North Bay Village 8,211
North Miami 60,175
North Miami Beach 43,749
Opa-locka 16,570
Palmetto Bay 24,499
Pinecrest 18,419
South Miami 12,071
Sunny Isles Beach 22,655
Surfside 5,593
Sweetwater 19,941
Virginia Gardens 2,371 Chart excludes unincorporated Miami - Dade County which has a population of 1,197,184 and is open market.
West Miami 7,275
Total Service by Population 1,535,985 838,728 195,826 18,096 2,588,635
Total # of Cities 15 4 8 3 30MIAMI - DADE COUNTY -
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
500,000
MIAMI -DADE COUNTY CITIES
Open
Market
Non Exclusive Exclusive Franchise City
Population
numbers reflect
municipalities that
provided data
<< 12 >>
Broward
12
County City
Names
Open
Market Non Exclusive Exclusive
Franchise City
Unincorporated BC 17,079
Coconut Creek 57,871
Cooper City 34,397
Coral Springs 134,558
Dania Beach 31,837
Davie 106,199
Deerfield Beach 87,106
Fort Lauderdale 186,076
Hallandale Beach 41,157
Hillsboro Beach 1,986
Hollywood 153,854
Lauderdale Lakes 6,203
Lauderdale-by-the-Sea 36,647
Lauderhill 74,538
Lighthouse Point 10,499
Margate 58,714
Miramar 136,007
North Lauderdale 44,855
Oakland Park 44,296
Parkland 35,440
Pembroke Park 6,222
Pembroke Pines 170,857
Plantation 92,628
Pompano Beach 113,144
Southwest Ranches 7,675
Sunrise 97,359
Tamarac 72,509
Weston 68,305
Total Service by Population 371,767 58,714 1,324,978 172,559 1,928,018
Total # of Cities 3 1 21 3 28BROWARD COUNTY -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Broward County Cities
Open
Market
Non Exclusive Exclusive Franchise City
Population
numbers reflect
municipalities
that provided
data
<< 13 >>
Palm Beach
13
County City
Names
Open
Market Non Exclusive Exclusive
Franchise City
SWA Zone 1 - 6 653,174
Belle Glade 16,893
Boca Raton 98,046
Boynton Beach 81,011
Delray Beach 66,948
Greenacres 44,549
Gulf Stream 949
Haverhill 2,193
Highland Beach 4,300
Juno Beach 3,862
Jupiter 61,121
Lake Clarke Shores 3,562
Lake Park 9,039
Lake Worth Beach 42,572
Loxahatchee Groves 3,379
Mangonia Park 2,142
North Palm Beach 13,167
Ocean Ridge 1,828
Pahokee 5,580
Palm Beach 9,253
Palm Beach Gardens 59,755
Palm Beach Shores 1,330
Royal Palm Beach 39,144
South Bay 4,924
Tequesta 6,152
Wellington 61,768
West Palm Beach 119,255
Westlake 1,757
Total Service by Population 2,142 217,301 1,035,528 162,682 1,417,653 Chart excludes SWA ("Solid Waste Authority") zones 1- 6 which has a population of 653,174 and is exclusive franchise.
Total # of Cities 1 2 25 5 33 PALM BEACH COUNTY -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
PALM BEACH COUNTY CITIES
Open
Market
Non Exclusive Exclusive Franchise City
Population
numbers reflect
municipalities that
provided data
<< 14 >>
Other Florida Counties By Percentages
14
Open Market
6%
Non-Exclusive
0%
Exclusive
69%
City
25%
Other Counties
Open Market Non-Exclusive Exclusive City
County Population # of Cities Open
Mkt Exclusive City
Pinellas 964,416 25 3 12 10
Lee 776,995 10 0 9 1
Collier 382,680 4 0 3 1
Monroe 83,411 9 0 9 0
Totals 2,207,502 48 3 33 12
100%6%69%25%
Population numbers
reflect municipalities
that provided data
<< 15 >>
Summary of Industry Forum & Survey
15
•Industry Forum held on July 7th
•Received a total of over 140 responses to Survey
•Over 65%of participants rated Quality and Cost of Service as
Average or Poor.
•Having ability to hire another Provider and getting the lowest cost
accounted for 70%of what is most important to participants.
<< 16 >>
Summary of Municipal Data Sampling
16
•Reviewed 139 Municipalities
•91 in Tri-County Area
•48 in Four Additional Counties: Pinellas, Lee, Collier and Monroe
•Miami-Dade County favors Open Market = 15/30 or 50%
•Broward and Palm Beach favor Exclusive = 46/61 or 75%
•Pinellas, Lee, Collier & Monroe Counties favor Exclusive = 33/48
or 69%
•Non-Exclusive has the smallest market share = 7/139 or 5%
<< 17 >>
Options for Your Consideration
17
•Continue with the Non-Exclusive Franchise Agreements
•Section 90-229 of City Code allows up to Five
•Note: In 2014 the City opted to select only Three
•Consider an Exclusive Franchise Agreement
•Our current Residential Solid Waste Hauler has an Exclusive Agreement
•Do Not Recommend an Open Franchise Model
•Unlimited Haulers in seven square miles will increase traffic congestion
<< 18 >>
Comments / Questions ?
18
<< 19 >>
Thank you
1919191919
OIG
EXHIBIT 6
OIG
EXHIBIT 7
11875 High Tech Avenue, Suite 150 Orlando, FL 32817
(800) 679-9220
TECHNICAL MEMORANDUM
To: Joe Gómez, Director of Public Works, City of Miami Beach
Brad Kaine, Director of Sanitation, City of Miami Beach
From: MSW Consultants
Date: October 17, 2022
Subject: Non-Exclusive Commercial Solid Waste Collection Franchise Strategies to
Achieve Price Transparency
Exclusive franchise systems are widely used in Florida and nationally for multiple reasons,
including administrative simplicity, enforcement of service standards, and to ensure efficient
routing, which can translate into lower prices and decreased vehicle emissions. A particular benefit
of exclusive franchise systems, which has been proven effective in countless cities and counties in
Florida and nationally, is that a competitive procurement process can be used to establish fair and
transparent prices for a wide range of standard and premium services offered to commercial and
multi-family customers within the exclusive service territory.
The City of Miami Beach (City) currently offers solid waste collection for commercial and multi-
family customers via a non-exclusive franchise system. Commercial and multi-family customers
within the City negotiate and contract for solid waste collection directly with either of the two non-
exclusive franchisees, Waste Connections or Waste Management. The current non-exclusive
commercial solid waste collection franchise contracts expired on September 30, 2022 but have
been extended for up to 12 months to allow the City to obtain new services through a competitive
procurement process.
As part of the new procurement process, the City has been evaluating opportunities to enhance the
system. The City retained MidAtlantic Solid Waste Consultants (MSW Consultants) to assist with
the procurement of future commercial solid waste collection services (Project).
As part of the Project, MSW Consultants gathered solid waste system information from other local
governments across Florida. This included an initial analysis of systems from 10 cities with
exclusive franchise agreements, followed by an expanded survey of some 140 cities to determine
the type of solid waste system used (exclusive franchise, non-exclusive, or open market). MSW
Consultants was subsequently tasked with researching features from non-exclusive commercial
solid waste systems1 in other states that improve pricing transparency and ensure that market forces
are balancing supply and demand to minimize pricing outliers and rate shocks.
Although full pricing transparency and a strong management of the commercial and multi-family
solid waste collection system can best be obtained via exclusive franchise, this memorandum
summarizes strategies that can be incorporated into a non-exclusive franchise system to better
monitor the health of the market.
1 The memorandum utilizes the term franchise. Note the City of Austin and the City of Denver programs are licenses.
TECHNICAL MEMORANDUM
October 17, 2022
Page 2 of 5
SELECTED BENCHMARK COMMUNITIES
The initial benchmarking research noted above has informed the City’s understanding of solid
waste systems in Florida. MSW Consultants requested that the haulers attending the August 26th
hauler roundtable submit examples of non-exclusive franchises that contained terms associated
with pricing transparency but to date no haulers have provided such examples.
As a consequence, at the request of the City, MSW Consultants has reviewed several readily
available franchise agreements from jurisdictions in other states, and also drawn from its internal
procurement knowledge base, to highlight pricing transparency strategies incorporated into non-
exclusive franchise systems nationally. Non-exclusive franchise agreements from the following
communities were reviewed specifically:
City of Austin, TX
City of Denver, CO
City of Pasadena, CA
Sacramento County, CA
City of Los Angeles, CA
Exhibits A through D contains pertinent documentation for the above communities (except for Los
Angeles, which transitioned to an exclusive franchise system and is cited later in the memo as an
example).
Generally, non-exclusive franchises have built in a number of terms and procedures to improve
the management of the franchise, establish accountability for compliance, and streamline reporting
requirements. The following sections highlight these noteworthy non-exclusive franchise elements
for consideration by Miami Beach.
REPORTING REQUIREMENTS
One of the most basic tools in a non-exclusive franchise is the establishment of reporting
requirements. Effective management of the collection system by the local government begins with
access to relevant data on tonnage, customers, revenues, service delivery statistics, and potentially
other metrics.
Section 11 of the City of Miami Beach’s current non-exclusive commercial solid waste collection
franchise contract states “Franchisee shall keep accurate set of books….reflecting the Gross
Receipts…” However, the City does not require periodic reporting. As shown in Table 1, the
California and other benchmark communities not only require periodic reporting, but several have
established management systems to compile data.
TECHNICAL MEMORANDUM
October 17, 2022
Page 3 of 5
Table 1 Non-exclusive Hauler Reporting Requirements
Miami
Beach Austin Denver Pasadena
Sacramento
County
Periodic Reporting No Yes Yes Yes Yes
Reporting Frequency NA Quarterly Quarterly Monthly Quarterly
Customer Reporting No
Reporting Process NA Mail/E-mail Online Tool Mail Online Tool
As shown in this table, in terms of reporting frequency, City of Pasadena requires monthly
reporting and Austin, Denver and Sacramento County requires quarterly reporting.
Generally, these communities require haulers to report tonnage and disposal/processing site
information, although in the case of Miami Beach the disposal sites will be designated pursuant to
the City’s interlocal agreement with Miami-Dade County. Some communities require haulers to
report customer information, such as the City of Pasadena. The following information is illustrative
of standard requirements in each community:
Total number of accounts served, identified by source type (commercial, multi-family, etc.)
Tonnage by material type identified by source type
Disposal and processing site for material collected
Vehicle information including compliance with applicable law
Company contact information
Operation or diversion plans, which can touch on a variety of subjects for which elected
officials might wish to monitor
It is also noteworthy that none of these communities require haulers to report rate information.
Due to the nature of non-exclusive agreements, which leave intact the ability of the market to set
pricing dynamically, no mechanisms exist to impose oversight on actual rates. Additionally, none
of the communities reviewed addressed the regulation of brokers or other companies that secure
collection services on behalf of multi-family or commercial customers. Once again, non-exclusive
franchise systems leave in place the open market dynamics that give rise to brokerage businesses.
On another note, in the opinion of MSW Consultants, the form of reporting can be significant in
obtaining and tracking collection system operational and financial data. Historically, the form of
required reporting has not been a focus of many franchises, which leaves significant leeway to the
franchisee to deliver data in a disorganized format. Even among the communities reviewed for this
analysis, the reporting process varied with some communities relying on email or even mail
transmittal of data. However, the City of Denver and Sacramento County have taken a more
progressive approach, establishing online tools for hauler reporting. Such tools standardize the
data compilation across multiple franchisees and automate the process for assembling one or more
databases to track franchise performance and franchise fee payments.
TECHNICAL MEMORANDUM
October 17, 2022
Page 4 of 5
If City staff are directed by the City Commission to continue with a non-exclusive system, MSW
Consultants recommends the City revise the current non-exclusive commercial solid waste
collection franchise contract to require periodic comprehensive reporting. Expanding reporting
requirements will provide the City needed information to better administer the system. However,
the reporting requirements will not provide the City the ability to regulate or otherwise control
commercial and multi-family property rates.
RIGHT TO AUDIT
Although it can be considered invasive or heavy-handed, a contractual right to audit is important
to include in non-exclusive franchises. Section 11 of the City’s current non-exclusive commercial
solid waste collection franchise contract states “The City shall have the right to audit Franchisee’s
books and records…” which is appropriate to retain at a minimum.
All of the communities researched reserve the right to audit haulers, in some cases to a high level
of open book detail. It is important to note the importance of establishing an audit process that
protects the proprietary data for each franchisee. Typically, this entails the use of an independent
third-party auditor who is required to sign a non-disclosure agreement that prevents sharing of any
proprietary data with the city. As an example, Austin City Code includes a business-friendly limit
on the right to copy or remove proprietary information during audits such as customer list, price
information, etc., which further protects proprietary information being disclosed by the
independent auditor
MSW Consultants recommends the City retain the right to audit non-exclusive commercial solid
waste collection franchisees. Auditing rights provide the City needed information to confirm
accurate remittance of franchise fees. Although an audit could conceivably test the dispersion of
charges for similar services and identify highly variable rate structures, like reporting
requirements, the right to audit will not provide the City the ability to act directly on such findings
to regulate or control rates.
CONCLUSION
While the strategies presented in this memorandum may improve customer service, reporting, and
overall hauler performance in a non-exclusive system, they do not address critical issues such as
pricing transparency. It is MSW Consultants' professional opinion that the regulatory limitations
inherent in non-exclusive systems are among the key reasons our research found that more than
80 percent of the 140 Florida jurisdictions surveyed utilize an exclusive franchise system with
either commercial hauler or municipally-provided services. Moreover, the regulatory controls that
are made more possible through exclusive franchise systems are what have driven the two largest
cities in the U.S. to move from non-exclusive (“open market”) to exclusive systems (Los Angeles
in 2017 and New York City in 2023).
In light of the obstacles to attaining pricing transparency in a non-exclusive commercial solid
waste collection franchise program, the City should integrate the strategies discussed in this
memorandum if directed to retain its non-exclusive system approach. However, these strategies
will uniformly increase the administrative demands on City staff (in the case of reporting and
TECHNICAL MEMORANDUM
October 17, 2022
Page 5 of 5
franchise fee payment processing), and/or impose additional third-party costs on the City’s budget
for franchise management (independent audits; development of an online reporting interface).2
EXHIBITS:
A. Austin, TX – Hauler Application Forms
B. Denver, CO – Online Hauler Licensing Portal
C. Pasadena, CA – Franchise Agreement Forms and Documents
D. Sacramento, CA – Franchise Agreement Forms and Documents
2 Under appropriate circumstances, it may be possible to charge the cost of any audit to the franchisee and deflect this
cost from the City.
City of Miami Beach
EXHIBIT A
Austin, Texas
Hauler Application Forms
City of Miami Beach
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PRIVATE HAULER APPLICATION
DESCRIPTION: All private haulers that collect, remove, or transport waste, recycling, and/or organic/compost
within the City of Austin must obtain a Private Hauler License. This Article of the City Code may be viewed in whole
at the City Clerk's Office or at: City of Austin Code 15-6, Article 3.
INSTRUCTIONS:
1.Complete this application. This application must be signed by a legally authorized representative. All attachments
must be clearly labeled.
2.Submit application by mail: City of Austin Code Department, Attn: Finance-Private Hauler, PO Box 1088, Austin, TX 78767, in person: 5202 E Ben White Blvd, Suite 550, Austin, TX 78741, or by e-mail: ccdhaulerlicense@austintexas.gov
3.Payment must be cash, check or money order payable to: City of Austin Code Department, or by credit card
in person or with our cashier at 512-974-9142. For questions, e-mail: ccdhaulerlicense@austintexas.gov Upon completed application and submission of all required certifications and fees, you will receive two decals for
each vehicle indicated. The placement of the decals shall be on the driver’s door and the passenger door.
CHECKLIST:
Complete Private Hauler Application
Insurance Certification (City of Austin Code, §15-6-53) - Attach a copy of your commercial general liability AND commercial auto liability insurance policy. Must show minimum limits of $250,000 per individual and $500,000 per
occurrence for bodily injury and $100,000 for property damage, OR $1,000,000 on a combined single limit basis.
Annual State of Texas Vehicle Inspection Certification for each Licensed Vehicle - If certification is unavailable, three pictures must be taken of each vehicle: side view of full vehicle, front view with license plate
visible, and close up of inspection sticker.
Vehicle License Fee (City of Austin Code, §15-6-56) - $647 per solid waste vehicle annually.
Tonnage Report – Most recent 6-month reporting period.
All Containers must have a Landfill, Recycling, or Organics Sticker (City of Austin Code §15-6-93(D)
PRIVATE HAULER INFORMATION:
Name of Applicant:
Name of Business:
Local Address:
City: State: Zip:
Phone: Fax:
Business Email:
Mailing Address:
(if different than above)
Primary Contact and Title:
Contact Email:
Website:
Page 1 of 5 Revised: 09-22-22
PRIVATE HAULER APPLICATION
VEHICLES:
$647 per vehicle hauling to landfill | no fee for vehicle hauling ONLY recycling, compost or mulching materials
# of vehicles hauling to landfill: X $647 = $
# of vehicles hauling ONLY to
recycling, compost, mulching facilities: No Fee
TOTAL: $
Vehicles that haul to Landfill
(list additional vehicles on separate page):
License Plate # Make Model Year Gross Vehicle
Weight
VIN #
Vehicles that haul ONLY to recycling, compost or mulching facilities
(list additional vehicles on separate page):
License Plate # Make Model Year Gross Vehicle
Weight
VIN #
Page 2 of 5 Revised: 09-22-22
PRIVATE HAULER APPLICATION
FEE EXEMPTION:
In accordance with the current Fee Schedule, this section must be completed to request exemption from the fees for Private Hauler Licenses.
Reason(s) for exemption from fees (check all that apply):
No trucks haul to landfill
Other (must specify):
INSURANCE:
Name of commercial general liability and automobile insurance company:
Certificate of insurance attached: yes no If no, date insurance will be sent:
SIGNATURES:
By signing this document, I do hereby certify that all statements and representations contained in this application are true,
correct and complete. I understand the obligations as a holder of a Private Hauler License and am willing to comply with the terms and conditions of all provisions in the applicable City of Austin ordinances and administrative rules. Any
changes to the information above shall be my responsibility to update and submit to the City of Austin.
Signature (Owner or President Only) Printed Name Date
Signature of Applicant (if different than above) Printed Name Date
*this application shall not be complete until the Code Director or City designee, signs below for acceptance of the certificate of
insurance required by City of Austin Code §15-6-53
For City of Austin Use Only (acceptance of the said contained Private Waste Hauler applicant’s Certificate of Insurance)
Code Director or Designee Printed Name Date Received
Page 3 of 5 Revised: 09-22-22
PRIVATE HAULER APPLICATION
TONNAGE REPORT:
PRIVATE COLLECTION SERVICES:
1. a. What type of collection services do youprovide?
b. Do you haul C&D Material?
solid waste/landfill recycling compost/organic
yes no
2.List the names of facilities materials are hauled to:
Six-month reporting period (check one and complete the year):
__ January to June, 20___ __ July to December, 20___
Enter tons of each type of material hauled to each type of facility. Enter zero (0) to indicate your company didn’t haul a
particular type of material to a facility type. Each box should have an entry.
Destination Facility Tons of Material
(Excluding C&D)
Tons of C&D Debris TOTAL
Disposal Facility/Landfill + =
Recycling Facility/Operation + =
Organic Processor + =
Definitions:
•Disposal facility – a landfill or facility that processes material into a fuel; includes anaerobic digester
•Recycling facility – a facility that processes recovered materials into raw materials for the production of new
products
•Organic processor – a facility that processes organic material (landscaping, yard trimmings, brush, grass, tree
stumps, untreated wood, food, etc.) into animal feed, mulch, compost, or similar product
•Construction or Demolition (C&D) Material – by-products of construction or demolition projects, such as building
components, concrete, corrugated cartons, gypsum wallboard, metal, paper, paving, plastics, and wood
•DO NOT report tonnages for these items: excavated soil, stone, asbestos-containing materials, lead-containing
materials, and similar items
For City of Austin Use Only
Austin Resource Recovery Staff Date Entered
Comments:
Page 4 of 5 Revised: 09-22-22
PRIVATE HAULER APPLICATION
PRIVATE HAULER VEHICLE LICENSE FEE REMITTANCE FORM:
Name of Applicant:
Name of Business:
Local Address:
City: State: Zip:
VEHICLES:
$647 per vehicle hauling to landfill | no fee for vehicle hauling ONLY recycling, compost or mulching materials
# of vehicles hauling to landfill: X $647 = $
# of vehicles hauling ONLY to
recycling, compost, mulching facilities: No Fee
TOTAL: $
I certify that the above information is true and correct.
Signature of Applicant Printed Name Date
Title Phone Number
Page 5 of 5 Revised: 09-22-22
PRIVATE HAULER APPLICATION ADDENDUM
DESCRIPTION: All private haulers that collect, remove, or transport waste, recycling, and/or organic/compost
within the City of Austin for a fee must obtain a Private Hauler License. This Article of the City Code may be viewed
in whole at the City Clerk's Office or at: City of Austin Code 15-6, Article 3.
INSTRUCTIONS:
1. Complete this addendum.
2.Submit addendum and required fee by mail: City of Austin Code Department, Attn: Finance-Private Hauler,
PO Box 1088, Austin, TX 78767. Or in person: 5202 E Ben White Blvd, Suite 550, Austin, TX 78741.
3.Payment must be cash, check or money order payable to: City of Austin Code Department. For questions, e-
mail: ccdhaulerlicense@austintexas.gov
Upon submission of all required certifications and fees, you will receive a decal for each collection vehicle. Payment
must be cash, check or money order payable to: City of Austin Code Department. For questions, e-mail:
ccdhaulerlicense@austintexas.gov
CHECKLIST:
Original Addendum
Annual State of Texas Vehicle Inspection Certification for each Licensed Vehicle - If certification is
unavailable, three pictures must be taken of vehicle: side view of full vehicle, front view with license plate visible,
and close up of inspection sticker.
Prorated Vehicle License Fee (City of Austin Code, §15-6-56).
All Containers must have a Landfill, Recycling, or Organics Sticker (City of Austin Code §15-6-93(D)(E))
PRIVATE HAULER INFORMATION:
Name of Applicant:
Name of Business:
Local Address:
City: State: Zip:
Phone: Fax:
VEHICLES:
$555 per vehicle hauling to landfill (prorated by 365 days) | no fee for vehicle hauling to recycling/
compost/mulching facilities.
# of vehicles hauling to landfill: X $555 / 365 days X days = $
# of vehicles hauling ONLY to
recycling, compost, mulching
facilities: No Fee
TOTAL: $
Page 1 of 2 Revised: 09-21-21
PRIVATE HAULER APPLICATION
Vehicles that haul to Landfill
(list additional vehicles on separate page):
License Plate # Make Model Year Gross Vehicle
Weight
VIN #
Vehicles that haul ONLY to recycling, compost or mulching facilities
(list additional vehicles on separate page):
License Plate # Make Model Year Gross Vehicle
Weight
VIN #
SIGNATURES:
By signing this document, I do hereby certify that all statements and representations contained in this application are true,
correct and complete. I understand the obligations as a holder of a Private Hauler License and am willing to comply with
the terms and conditions of all provisions in the applicable City of Austin ordinances and administrative rules. Any
changes to the information above shall be my responsibility to update and submit to the City of Austin.
Signature (Owner or President Only) Printed Name Date
Signature of Applicant (if different than above) Printed Name Date
Page 2 of 2 Revised: 09-21-21
City of Miami Beach
EXHIBIT B
Denver, Colorado
On-line Hauler Licensing Portal
City of Miami Beach
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CCD Hauler License Help Document Pg1
Applying for a Solid Waste Hauler License -
Help Document
This document is a step-by-step instruction manual on how to apply for a solid waste hauler license with
the City & County of Denver.
Contents:
Section 1: Reporting Tonnage
Section 2: Applying for a License
Section 3: Renewing a License
To apply for a solid waste hauler license, you will need to:
1. Report tonnage (Section 1)
2. Apply for a license. (Section 2) OR Renew a License (Section 3)
These must be completed in this order.
Other Important Information:
• Consider downloading and utilizing the “Hauler Tonnage Tracking Tool” located on our webpage
to help keep your data organized throughout the year. This tool can be used to your benefit in
Section 1.
• All licenses will expire on January 31st. Due to this, all renewals must report data and application
between January 1st-31st.
• If you are having issues with the application, contact HaulerLicense@denvergov.org or 311 (720-
913-1311). If applicable, please be ready with a screenshot or the section and step number so
we can assist you quickly.
CCD Hauler License Help Document Pg2
Section 1: Reporting Tonnage
Step 1: To create an account press “Create a Tonnage Reporting Account” button on right hand side of
the waste hauler webpage. If you have already created an account, skip to Step 4. If you have already
reported data for the previous year, skip to Section 2.
Step 2: In the form, type in your “Hauler Legal Name” for your business. Input this name the same way
in license application (Section 2, Step 7), so double check that punctuation and spelling is correct before
pressing “submit.” You will need to use the same name to renew and to submit every tonnage report.
Otherwise, you will have to apply as a new hauler.
Step 3: You will now see this screen (below). Take a screenshot to remember how you inputted your
Hauler Account or download the page as a PDF and save in your records. Now close this window.
Step 4: From our waste hauler webpage click on the “Report Tonnage” button on the right-hand side of
the screen under “Apply Now”. Haulers must report tonnage annually before applying for a license.
Step 5: *All haulers utilizing the web application for the first time will receive a NEW BFN number. *
Scenario 1: If you are reporting tonnage for the first-time through the new system press “Submit”
without entering a “BFN.” Pressing submit will bring you to the tonnage form.
Scenario 2: If you have already completed Step 1-3 and have already received a license through the
webform as a returning hauler, please enter the BFN that starts with “2021” (or a later year) that you
have been assigned.
CCD Hauler License Help Document Pg3
Step 6: Filling out the tonnage form. Have your data stored for your own records. An optional “Hauler
Tonnage Tracking Tool” Spreadsheet is located on the webpage. It is recommended to fill out the
tracking tool first before beginning the form. Keep it updated throughout the year as you compile
records and report data quarterly.
a. Make sure the “Hauler Legal Name” is the written exactly how it was inputted in the “Account
Creation.” Refer to Step 3 for more details.
b. Fill out the “Notes” section if you found that your total waste data increased or decreased 15%
from the year prior. Ex. “COVID19 slowed business, therefore we hauled 2k tons less.”
Otherwise, leave blank. *If there are discrepancies without an explanation, this may delay the approval
of your license. *
c. For data reporting in 2021 or later, haulers must report annual waste data by quarter. To apply
for a license, you must report data for all four quarters, even if you do not have tonnage to
report for that quarter. If you have no data to report for that quarter, select the box “No
Tonnage to Report This Period.” Then tell us why in the pop out field (ex. not in business,
COVID19 business closed temporarily, did not haul from Denver at this time).
d. Write in the year that you are reporting data for, not the year you are applying for.
e. Fill the remainder of the form in the box.
f. For each quarter, material and facility type fill “Add another response”.
CCD Hauler License Help Document Pg4
g. Review your data. [Optional] Date when you submitted each tonnage to prevent repeats in your
Hauler Tonnage Tracking Tool.
h. Take a screenshot for your records and press “submit.”
Step 7: a. Review the submitted information and take a moment to screenshot or “Print this page” (see
Step 7, b) for your records. You will not be able to retrieve this information once it is gone.
Hint: If you did not get a chance to screenshot the last page in Step 6, press the “back” button on your
browser to review your information.
b. To “Print this Page” (on Google Chrome browser), select the 3 dots in the top right corner. Select the
“Print” button. Select “Save as PDF” for Destination.
CCD Hauler License Help Document Pg5
c. Press the “Confirm” button at the bottom of the page.
Step 8: a. If you have more waste data to report, do so by clicking the “here” hyperlink on the thank you
page. And repeat Step 5-7.
b. If you have completed your tonnage data reporting for the previous year, you may now apply for your
hauler license (Section 2) and close the tab.
Step 9: If you need access to data you have previously reported or need to make a correction please
contact HaulerLicense@denvergov.org.
CCD Hauler License Help Document Pg6
Section 2: Applying for a License
Step 1: Navigate to Denver’s Permitting and Licensing Center by selecting “Apply or Renew a License”
from the Waste Hauler webpage.
Step 2: Click on the “Business Licenses” tab.
Step 3: Click on the “Apply for a License” button.
Step 4: Register as a new account or log in.
Step 5: Under “Business Licenses” select the bubble next to “Solid Waste Hauler License”. Then scroll
down and press “Continue Application.”
Step 6: Answer the eligibility questions.
CCD Hauler License Help Document Pg7
Step 7: If you already reported tonnage for the previous year press “Yes”. If you have not reported
tonnage, reference Section 1 at the top of this document before continuing the license application.
a. Enter your hauler name, exactly how you had entered it in the Tonnage Reporting Account
Creation. Then press anywhere in the grey box.
b. Select “Yes” to receive retrieve your tonnage report.
c. If you complete the tonnage form correctly, you will receive a notice stating your business name
and last reported tonnage date. Click “yes” to continue.
d. If the form was filled out incorrectly, an error notice will appear in red. Troubleshoot by
referencing Section 1. If it has not been resolved after referencing Section 1, contact
HaulerLicense@denvergov.org or 311 (720-913-1311). Be ready with screenshots of your issue.
e. If you inputted data for all 4 quarters of the previous year and search the correct business name,
you should receive the following notice. Now press “Continue Application.”
CCD Hauler License Help Document Pg8
Step 8: Required Documents
a. “Save and resume within 30 days” if you do not have the information ready. Certificate of
Insurance minimum requirements can be found at our webpage under “Helpful Documents.”
b. If you have the documents prepared, press “Continue Application.”
Step 9: General Information Continued
a. Add a main contact. Add an email and phone number associated with your main contact.
b. Add your waste hauler mailing address.
c. “Continue Application”
Step 10: Fill in the general company info. “*” is a required field. Review, then “Continue Application.”
CCD Hauler License Help Document Pg9
Step 11: Motor Vehicle Reporting
a. Provide your Department of Transportation (DOT) number, if applicable.
b. Fill out the motor vehicle reporting form by selection “Add a vehicle”. Include all motor vehicles
that you use to haul tonnage from the City & County of Denver.
c. Fill in the fields below. When you go to renew, this information will be auto populated. Be sure to
add any new vehicles or remove any old ones by changing status to “Inactive.” Submit this form
for every existing vehicle.
d. You will now see your vehicles listed as such (below). Review, then press “Continue Application.”
CCD Hauler License Help Document Pg10
Step 12: Services Provided
a. Check boxes for the type of wastes you haul. “Continue Application.”
b. Choose the collection mechanisms for each waste type by selecting the box next to “Type of
Waste” in the table or the individual waste types below. Then press “Edit Selected.”
c. Select the collection mechanisms for each waste type in the pop out window by checking
the white boxes. Then press “Submit.”
d. Review the selections you had made. Then “Continue Application.”
CCD Hauler License Help Document Pg11
Step 13: Required Documents. Please upload the documents required. For more details on the
Certificate of Insurance, see webpage under “Helpful Documents”. “Continue application.”
Step 14: Read the Statement of Understanding and check each box. “Continue application.”
Step 15: Review all the information you inputted. Use the “edit” buttons on the right-hand side of the
screen to make any changes. “Continue application.”
Step 16: Pay the fee associated with your license. Price will vary on the number of vehicles and will be
prorated after March. See the breakouts on the hauler webpage. “Continue Application.”
a. You will be directed to another page (see below). Select “Checkout Now.”
CCD Hauler License Help Document Pg12
a. Complete payment by entering a credit card or bank account. Select “Complete Transaction.”
Step 17: Once payment has been made; your application will be reviewed. Once it has been approved,
your license will be automatically emailed to you.
CCD Hauler License Help Document Pg13
Section 3: Renewing a License
If this is the first time your company is using the web application, apply as a NEW hauler. See Section 1
& 2.
Step 1: Make sure you have reported tonnage data for the year prior. (Section 1, Step 4-8).
Step 2: Sign into Denver’s Permitting and Licensing Center.
Step 3: Navigate to “My Records”.
Step 4: Select the arrow next to “Business Licenses.”
Step 5: If you have an active license it will appear here. Yours will likely only show one license. Select
“Renew Application” under “Action.”
CCD Hauler License Help Document Pg14
Step 6: Tonnage Reporting Info. If you have not reported data for the year prior, see Section 1, Step-4-8
before proceeding.
a. If you have reported data. Select “Yes”.
b. Select “Yes” to continue. “Continue Application.”
Step 7: Required Documents. Continue if you have the documents available, “Continue Application”. Or
“Save and resume within 30 days” to save your work and return later. An example Certificate of
Insurance can be found under “Helpful Documents” on the webpage.
CCD Hauler License Help Document Pg15
Step 8: Review General Information. Review the contact information. Select “Edit” underneath each
section and edit any necessary information. Then “Continue Application.”
Step 9: Review General Company Information. Review the general company info. If your legal entity
name has changed you must surrender your current license and apply for a new license. “Continue
Application.”
Step 10: Moto Vehicle Reporting
a. Update your DOT number if applicable.
b. Update your vehicles. Add vehicles by selecting “Add a Vehicle” button. To change the Status to
“Inactive” for any vehicle that is no longer hauling waste within the City & County of Denver,
select “Actions”, “edit”.
CCD Hauler License Help Document Pg16
c. Go to the “Status” drop down menu and select “Inactive.” “Submit.” “Continue Application”
once all vehicles have been added and updated accordingly.
Step 11: Services Provided. Review your “Type of Waste” selections and make any necessary edits.
“Continue Application.”
Step 12: Collection Mechanism.
a. Select the box next to “Type of Waste” then select “Edit Selected.”
b. Select the box next to each collection mechanism for every “Type of Waste”. Select as many
collection mechanisms are applicable for each “Type of Waste.” “Submit.”
c. “Continue Application.”
CCD Hauler License Help Document Pg17
Step 13: Required Documents. Upload the required documents by selecting “Upload”.
A.) Certificate of Insurance that meets the required minimum liability/automobile coverage (see “helpful
documents” on the webpage for more details)
B.) A photograph of a vehicle or container labeled correctly. “Continue Application” once you receive the
green check above.
Step 14: Statement of Understanding. Acknowledge and agree to the terms provided by checking the
white box next to each statement. “Continue Application.”
Step 15: Affidavit. Select “Yes” or “No” in the affidavit form. “Continue Application.”
Step 16: Review. Review your information and select “edit” on the right-hand side of the screen if any
information requires edits. “Continue Application.”
Step 17: Pay fees.
a. Review the pricing based on the number of motor vehicles you are re-licensing. Select
“Continue Application” to make payment. Pricing breakouts can be found on the webpage
under the FAQ’s section.
b. You will be redirected to another page. Select “Checkout Now.”
Step 18: Once payment has been made the application will be reviewed. Once it has been approved
your company’s license will be automatically emailed to you.
City of Miami Beach
EXHIBIT C
Pasadena, CA
Franchise Agreement Forms and Documents
City of Miami Beach
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NON-EXCLUSIVE SOLID WASTE COLLECTION
FRANCHISE AGREEMENT NO. ________
CITY OF PASADENA
THIS AGREEMENT is made and entered into by and between the
CITY OF PASADENA ("City"), a municipal corporation, and
("Franchisee"), a Solid Waste Collection Company with its
principal place of business at _______________.
WHEREAS, pursuant to Chapter 8.61 of the Pasadena Municipal
Code, Franchisee has applied to City for a non-exclusive Solid
Waste Collection Franchise ("Franchise"); and
WHEREAS, on ___________, the City Council held a
public hearing for the purpose of hearing persons in favor of or
in opposition to the granting of such Franchise; and
WHEREAS, the City Council determined that Franchisee
demonstrated compliance with Chapter 8.61 of the Pasadena
Municipal Code and agreed to comply with all provisions of that
Chapter; and
WHEREAS, it is required that City and Franchisee enter into
a non-exclusive Solid Waste Collection Franchise Agreement in
order that Franchisee may perform solid waste collection,
transportation, disposal and recycling services in the City of
Pasadena;
NOW, THEREFORE, City and Franchisee do hereby agree as follows:
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1.0. GRANT OF FRANCHISE. By Ordinance No.______, City has
granted to Franchisee a non-exclusive Solid Waste Collection
Franchise authorizing Franchisee to engage in the business of
collecting, transporting, disposing and recycling of solid waste
kept, accumulated or produced in the City of Pasadena and to use
the public streets and rights of way for such purpose. This
grant is pursuant to Franchisee's application for the Franchise,
which application is incorporated by this reference. Franchisee
is subject to the terms and conditions specified in Article XI
of the Charter of the City of Pasadena, the provisions of
Chapter 5.44 and Chapter 8.61 of the Pasadena Municipal Code,
the terms and conditions specified in all related resolutions,
and the terms and conditions of this Agreement and the
representations and assurances in Franchisee's application for
the Franchise.
2.0 TERM OF FRANCHISE. The term of the Franchise is from
________through ________, inclusive. There may be up to four (4)
additional renewal terms in the sole discretion of the City
Manager, exercised in accordance with this section, for a
maximum potential franchise length of five (5) years. The
Franchisee has no vested or contract right in any such renewal
term. As to any such renewal term, the City Manager may grant
the renewal on a finding that the Franchisee is in compliance
with the ordinance, the nonexclusive franchise agreement, and
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all federal, state or local laws and regulations applicable to
the operation of the nonexclusive franchise and that the public
interest is served by a renewal, or (a) grant the renewal,
conditionally, on a finding that the Franchisee is essentially
in compliance with the ordinance, the nonexclusive franchise
agreement, and all federal, state or local laws and regulations
applicable to the operation of the nonexclusive franchise and
that the public interest is served by a conditional renewal, or
(b) may decline to grant any renewal term based on a finding
either, (i)that the Franchisee is not in compliance with the
ordinance, or with the nonexclusive franchise agreement, or with
any federal, state or local law or regulation applicable to the
operation of the nonexclusive franchise, or (ii) that the public
interest is not served by a renewal because of a change in
circumstances or policy related to solid waste collection or the
nonexclusive franchise system. There shall be no other renewals
of a nonexclusive franchise. On August 6, 2007, City Council
approved an action to close the solid waste franchise system to
any new franchisees. On December 6, 2010, the City Council
reviewed the non-exclusive solid waste collection franchise
system and approved the retention of the closed franchise
system. On August 23, 2015 the solid waste collection franchise
system was revisited and approved by City Council to remain a
closed system.
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3.0 FRANCHISE FEES.
3.1 During the term of the Franchise, Franchisee shall
pay franchise fees to City, which fees shall be assessed from
the date on which the ordinance granting this Franchise became
effective. Such fees shall be in the amount and manner as set
forth in the Resolution adopted by the City Council on June 4,
2012, a true and correct copy of which is attached hereto as
Exhibit 1, and in such other amounts as are set forth in any
subsequent resolutions that may be adopted by the City Council
at any time during the term of the Agreement.
3.2 Franchisee shall timely pay and submit all
required franchise fees to:
City of Pasadena-Public Works
C/O Municipal Services
P.O. Box 7138
Pasadena, CA 91109-7138
Each payment shall be accompanied by a written statement,
verified by the Franchisee or a duly authorized representative
of the Franchisee, showing in such form and detail as the
Director of the Department of Public Works may prescribe, the
calculation of the franchise fee payable by the Franchisee and
such other information as the Director of the Department of
Public Works may require as material to a determination of the
amount due.
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3.3 The first payment of the franchise fees will be
due on ___________, and payments shall be due on the first day
of every month thereafter. Specifically, fees on Franchisee's
revenue shall be due and payable on the first day of the second
month after the close of the month in which revenue was
received. For example, the franchise fee for the month of July
is due on September 1.
3.4 When Franchisee remits franchise fees to City,
such franchise fees shall be deemed timely paid only if
delivered or postmarked on or before the due date. If fees are
not timely paid, Franchisee shall be subject to suspension or
termination of the Franchise pursuant to Section 14 of this
Agreement and/or to any other penalties which may be established
and assessed by the City.
4.0 DISPOSAL OF SOLID WASTE. Franchisee shall dispose of
solid waste at a permitted landfill, transfer station, recycling
facility, materials recovery facility or other disposal or
recycling facility, which is lawfully authorized to accept such
solid waste.
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5.0 RECYCLING SERVICES.
5.1 Each Franchisee shall be required to ensure that
recycling services are provided for all of its customers either
directly or by arrangement with another Franchisee.
5.2 Materials to be recycled shall be collected at a
minimum of once per week.
5.3 Each Franchisee shall, at intervals of no greater
than 6 months, provide education and informational literature to
its customers and the City describing the recycling services to
be provided, materials to be recycled, instructions on how to
participate, and provide its customers the Franchisee’s
telephone number.
5.4 Each Franchisee shall provide public awareness to
its customers in accordance with the provisions of the Pasadena
Municipal Code and the Rules and Regulations adopted by the
Director.
5.5 Each Franchisee shall select the type of recycling
collection operation. When considering recycling collection
methods, the Franchisee shall consider factors to assure maximum
participation and waste diversion, including but not limited to
convenience and cost.
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5.6 Nothing in this chapter precludes a Franchisee
from assessing reasonable fees for providing recycling services.
6.0 REQUIRED RECYCLING DIVERSION RATES.
6.1 Construction and Demolition Debris. Franchisee
shall meet a minimum recycling diversion rate of 75%, on a
monthly basis, and on an annual basis for construction and
demolition debris. “Construction and Demolition debris” shall
have the definition as set forth in Pasadena Municipal Code
8.61.
6.2 Other Solid Waste. Franchisee shall meet a minimum
recycling diversion rate of 60%, on a monthly basis, and on an
annual basis for all “other solid waste”. “Other solid waste”
shall have the definition as set forth in Public Resources Code
Section 40191, Pasadena Municipal Code 8.61, and any successor
provision, except that it shall not include construction and
demolition debris.
6.3 Third Party Recycling. If Franchisee works with a
third party to assist in recycling efforts, this third party
diversion tonnage must be documented in a manner that conforms
to the Rules and Regulations adopted by the Director, and may
not exceed twenty five percent (25%) or total tons approved by
City staff, which ever is lowest, of the total tonnage reported
for the recycling diversion rates in any one calendar month.
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6.4 Calculation of recycling rates. Recycling
diversion rates shall be calculated in accord with the
provisions of the Pasadena Municipal Code and any Rules and
Regulations adopted by the Director.
7.0 LIQUIDATED DAMAGES.
7.1 Construction and Demolition Debris. Failure
of Franchisee to meet the recycling diversion rates of 75% for
construction and demolition debris, as defined above, for any
month, will result in damages being sustained by the City. Such
damages are, and will continue to be, impracticable and
difficult to determine. For each month in which the recycling
diversion rate is not met, Franchisee shall pay the City an
amount of money to be calculated as follows: where the
recycling diversion rate in a reported month is 40% or greater,
but less than the required recycling diversion percentage of
75%, $10 per ton of “recycling shortfall tonnage”; where the
recycling diversion rate in a reported month is 30% or greater,
but less than 40%, $20 per ton of the “recycling shortfall
tonnage”; where the recycling diversion rate in a reported month
is 20% or greater, but less than 30%, then $30 per ton of
“recycling shortfall tonnage”, and where the recycling diversion
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rate is less than 20%, then $40 per ton of the “recycling
shortfall tonnage”. “Recycling shortfall tonnage” means the
number of additional tons of construction and demolition debris
that a franchise would have to recycle in order to meet the
recycling diversion of 75%. Execution of this Agreement shall
constitute agreement by the Franchisee and City that the stated
values are the minimum value of costs and actual damage caused
the City by the failure of the Franchisee to meet the recycling
diversion rate for construction and demolition debris. Such sum
is liquidated damages and shall not be construed as a penalty.
Liquidated damages shall be reported and paid to the City by
Franchisee along with the monthly franchise fee payment.
7.2 Other Solid Waste. Failure of Franchisee to meet
the recycling diversion rate of 60% for other solid waste, as
defined above, for any month, will result in damages being
sustained by the City. Such damages are, and will continue to
be, impracticable and difficult to determine. For each month in
which the recycling diversion rate is not met, Franchisee shall
pay the City an amount of money to be calculated as follows:
where the recycling diversion rate in a reported month is 40% or
greater but less than the required recycling diversion
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percentage of 60%, $10 per ton of “recycling shortfall tonnage”;
where the recycling diversion rate in a reported month is 30% or
greater, but less than 40%, $20 per ton of the “recycling
shortfall tonnage”; where the recycling diversion rate in a
reported month is 20% or greater, but less than 30%, then $30
per ton of “recycling shortfall tonnage”, and where the
recycling diversion rate is less than 20%, then $40 per ton of
the “recycling shortfall tonnage”. “Recycling shortfall tonnage”
means the number of additional tons of other solid waste that a
franchise would have to recycle in order to meet the 60%.
Execution of this Agreement shall constitute agreement by the
Franchisee and City that the stated values are the minimum value
of costs and actual damage caused the City by the failure of the
Franchisee to meet the recycling diversion rate for other solid
waste. Such sum is liquidated damages and shall not be construed
as a penalty. Liquidated damages shall be reported and paid to
the City by Franchisee along with the monthly franchise fee
payment.
7.3 Continued failure or inability to meet the recycling
diversion rates shall be considered a material breach of the
franchise and of the franchise agreement and, notwithstanding
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the payment of liquidated damages, shall be cause for
termination, suspension or non-renewal of the Franchise in
addition to other remedies provided or specified by Chapter 8.61
of the Pasadena Municipal Code.
8.0 EXEMPTION FROM REQUIRED RECYCLING DIVERSION RATES.
8.1 Basis for Exemption. If Franchisee wishes a
partial exemption from the required recycling diversion rates
then Franchisee must demonstrate to the satisfaction of the
Director that the 75% diversion for construction and demolition
debris and/or 60% diversion for other solid waste requirement
cannot be met because the waste stream from specific accounts is
not able to be recycled because either a) all recyclable
materials have already been removed from specific accounts prior
to collection by the Franchisee or a third party, or b) the
composition of the material stream to be collected by the
Franchisee from specific accounts is not made up of recyclable
materials.
8.2 Exemption Request. The Franchisee seeking such an
exemption shall submit a waste characterization analysis to the
Director and conducted in compliance with any then current
methodology of the California Integrated Waste Management Board,
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or its successor, agency as acceptable sampling methodologies.
As to each specific account for which the Franchisee wishes to
obtain an exemption, the waste characterization analysis must
also include: the customer name, address, tonnage, a detailed
description of the composition of the waste stream, and a
statement as to why specific materials are unable to be
diverted.
8.3 An exemption report shall be approved or denied,
or approved conditionally, by the Director .
8.4 If the exemption request is approved by the
Director, it shall be effective from the date of approval, to
and through the earlier of the following dates:
June 30, 2018 (the end of one year-franchise term), or the date
on which the facts supporting the waste characterization
analysis change materially. If the exemption application is
approved conditionally, it shall be effective as of the date all
of the conditions are met, as determined by the Director.
8.5 An approved exemption shall state the total amount
of solid waste, in tons, which is excepted from the recycling
requirement, and this may be used by Franchisee in calculating
the monthly recycling diversion rate. In claiming this
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exception in any reporting period, Franchisee shall affirm that
the facts upon which the waste characterization analysis and
exemption are based have not changed materially during reporting
period.
8.6 A new report, requesting an exemption must be
submitted for every one year franchise term. If an exemption
request is denied, prior to the beginning of the franchise term
for which franchisee is applying, a Franchisee may not apply for
an exemption until the following franchise term.
9.0 REPORTS.
Franchisee shall file a monthly collection tonnage report
for solid waste, organic material, other solid waste and/or
construction and demolition debris, when applicable, with the
Director of the Department of Public Works ("Director") on the
first day of every month as follows: Specifically, a report is
due on the first day of the second month after the close of the
month being reported. For example, the report for the month of
July is due on September 1.
The report shall be submitted to:
Department of Public Works/SMIWM Division
Attn: Carmen Rubio-Program Coordinator II
City of Pasadena
P.O. Box 7115
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Pasadena, California 91109
The report shall include the following information for
Franchisee, brokers and its subcontractors, if any:
Franchisee shall file with the Director a monthly
collection tonnage report no later than 30 days after the end of
the month being reported.
The report shall include the following information certified as
true and correct under penalty of perjury by a responsible owner
or official of the Franchisee:
1. Total tonnage of other solid waste, as defined above,
disposed, identified by source (residential, multi-family,
commercial, industrial entities and large venues);
2. Total tonnage of other solid waste, as defined above,
recycled, identified by source (residential, multi-family,
commercial, industrial entities, large venues, and third party)
and individual type of material designated to be recycled as
well as recycling shortfall tonnage, if any;
3. Destination and disposal site locations of all solid
waste, and organic material disposed and recycled;
4. Total number of accounts served, identified by source
(residential, multi-family, commercial, industrial, large venues
and third party);
5. The construction and demolition report shall include the
following information certified as true and correct under
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penalty of perjury by a responsible owner or official of the
Franchisee:
6. Total tonnage of construction and demolition disposed,
identified by source (residential, multi-family, commercial, and
industrial entities);
7. Total tonnage of construction and demolition recycled,
identified by source (residential, multi-family, commercial, and
industrial entities)and individual type of material designated
to be recycled as well as recycling shortfall tonnage, if any;
8. Destination and disposal site locations of all
construction and demolition disposed and recycled;
9. Total number of accounts served, identified by source
(residential, multi-family, commercial, industrial entities);
10. All other information required by the franchise
agreement or requested by the Director pertaining to the
operation of the franchise.
10.0 Compliance Monitoring
A. Books and Accounts. Franchisee shall maintain
accurate and complete books and accounts of all revenues and
income arising out of its operations under the Franchise and in
a manner which conforms to generally accepted accounting
principles. Franchisee's books, accounts and records, arising
out of or related to its operations under the Franchise granted
pursuant to Chapter 8.61, shall at all times be open to
inspection, examination and audit by authorized officers,
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employees and agents of the City. Franchisee shall comply with
all Rules and Regulations adopted by the Director pertaining to
books, records, audits and inspections.
B. Regulatory Inspection. Franchisee shall maintain
all records for the number of years in accordance with federal,
state or local laws and regulations applicable to the operation
of the non-exclusive franchise, but in no event less than five
(5) years, in a secured area to preserve records from events
that can be reasonably anticipated such as a fire, theft and
earthquake. Electronically maintained data/records shall be
protected and backed up. Franchisee shall provide written
technical or monitoring program reports which verify compliance
with the regulatory aspects of the Franchise as may be specified
and requested by the Director. Such reports shall be timely
submitted to the Director under penalty of perjury by the
responsible operating officer. Franchisee agrees to allow
reasonable on-site inspection of vehicles and facilities, in
accordance with any Rules and Regulations issued by the
Director, to evaluate compliance with the Franchise. Franchisee
shall comply with all Rules and Regulations adopted by the
Director pertaining to regulatory compliance and proof of
compliance.
C. Non-Compliance. In addition to other remedies and
penalties specified under the Pasadena Municipal Code or under
Rules and Regulations adopted by the Director, failure to
provide documentation requested by a city auditor or inspector
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within two weeks of a written request shall constitute failure
to pass the audit and shall be grounds for suspension,
termination or nonrenewal of the franchise.
11.0 VEHICLE REPORTING, COMPLIANCE, AND IDENTIFICATION.
11.1 Franchisee shall maintain on file with the City,
a complete and accurate listing of every vehicle operated for
collecting, transporting, disposing and/or recycling of solid
waste, construction and demolition debris and organics in the
City. Franchisee shall certify, in a form acceptable to City,
that every such vehicle conforms with regional and State vehicle
emission standards (“emission standards”), and shall provide
documentation of compliance on written request of the City.
Franchisee understands and agrees that failure to conform with
emission standards may result in suspension, termination or non-
renewal of a Franchise.
11.2 Vehicle Identification.
Every vehicle operated by Franchisee and for collecting,
transporting, disposing and/or recycling of solid waste,
construction and demolition debris and organics under this
franchise shall display the identification required by section
8.61.097 of the Pasadena Municipal Code: Franchisee’s trade
name, monogram or insignia, the Franchise vehicle number,
together with Franchisee’s telephone number painted upon both
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sides of the vehicle. All lettering mentioned in this paragraph
shall be not less than 2-1/4” in height and not less than 5/6”
stroke, except the Franchise vehicle number which shall be not
less than 6” in height. The Franchisee agrees to remove the
Franchise vehicle number and all other information within 15
calendar days after the Franchise is terminated or the vehicle
is sold, transferred or taken out of service.
11.3. Emission Standards.
Every Franchisee shall operate its vehicles under the Franchise
in conformance with Rule 1193 and all other Rules and
Regulations adopted by the South Coast Air Quality Management
District, and as interpreted and applied by the South Coast Air
Quality and Management District as well as the Rules and
Regulations adopted by the California Air Resources Board. The
Director shall have the authority to require additional
inspections deemed necessary to insure that the public health,
safety and welfare are adequately protected. All costs of such
inspections shall be the responsibility of the Franchisee.
Inspections by the California Highway Patrol shall be required
annually on all vehicles, and certificates of compliance for
said inspections shall be filed with the Director in conformance
with the rules and regulations adopted by the California Code of
Regulations.
11.4 BINS-STANDARDS AND IDENTIFICATION
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Every bin shall be manufactured specifically for its intended
use and shall comply with the provisions of Rules and
Regulations adopted by the Director pursuant to Section
8.61.035(B) of the Pasadena Municipal Code as to specifications,
characteristics, maintenance, cleanliness and permanent
labeling.
12.0 INDEMNIFICATION OF CITY.
12.1 Franchisee shall indemnify and hold the City
harmless from and against any and all loss, damages, liability,
claims, suits, costs and expenses, fines, charges or penalties
whatsoever, including reasonable attorney's fees, regardless of
the merit or outcome of any such claim or suit, arising from or
in any manner related to the services provided or business
conducted under Chapter 8.61 of the Pasadena Municipal Code or
under any non-exclusive Franchise granted pursuant to Chapter
8.61 of said code or otherwise pursuant to this Agreement.
12.2 Franchisee shall indemnify the City, defend with
counsel approved by the City, protect and hold harmless the
City, its officers, employees, agents, assigns, and any
successor or successors to the City's interest from and against
all claims, actual damages (including but not limited to special
and consequential damages), natural resources damage, punitive
damages, injuries, costs, response, remediation and removal
costs, losses, demands, debts, liens, liabilities, causes of
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action, suits, legal or administrative proceedings, interest,
fines and charges, penalties and expenses (including, but not
limited to, attorneys' and expert witness fees and costs
incurred in connection with defending against any of the
foregoing or in enforcing this indemnity) of any kind whatsoever
paid, incurred or suffered by, or asserted against, the City or
its officers, employees, agents or the Franchisee arising from
or attributable to any repair, remediation, cleanup or
detoxification, or preparation and implementation of any
removal, remedial, response, or closure or other plan
(regardless of whether undertaken due to governmental action)
concerning any hazardous substance or hazardous waste at any
place where the Franchisee stores or disposes of solid or
hazardous waste. The foregoing indemnity is intended to operate
as an Agreement pursuant to the Comprehensive Environmental
Response, Compensation and Liability Act, 42 United States Code
Section 9607, and California Health and Safety Code Section
25364, and any successor provisions, to insure, protect, hold
harmless, and indemnify the City from liability.
12.3 INSURANCE REQUIREMENTS. Franchisee shall obtain
and shall maintain throughout the term of this Agreement, at
Franchisee's sole cost and expense, the minimum levels and
standards of liability insurance and claims reserve which must
be maintained in order to apply for, to receive and to operate a
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non-exclusive Franchise under Chapter 8.61 of the Pasadena
Municipal Code, as established by Resolution of the City Council
of the City, a true and correct copy of which is attached hereto
as Exhibit 2, and as may be established in any subsequent
resolutions that may be adopted by the City Council at any time
during the term of this Agreement. Franchisee also agrees to
demonstrate compliance with the minimum standards in the manner
established by said Resolution of the City Council. The failure
to maintain the minimum levels and standards of liability
insurance and claims reserve for any period of time is a
violation of Chapter 8.61 and shall be sufficient grounds for
temporary suspension or termination of a non-exclusive
Franchise.
13.0 SUSPENSION.
13.1 The Director of Public Works may suspend any non-
exclusive Franchise pursuant to Chapter 8.61 without a hearing,
whenever the continued operation by the Franchisee would
constitute a danger to public health, safety, welfare or public
morals, including without limitation, where there is a failure
to maintain the minimum levels and standards of liability
insurance or claims reserve or failure to keep in full force and
effect any applicable licenses or permits required by federal,
state law or regulation or failure to comply with any material
term of this franchise. Continued failure or inability to meet
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recycling requirements or failure to make timely payments or
timely submittal of reports, or non-compliance with a request
for documents, reports or inspections shall, among other
material violations, constitute grounds for suspension,
termination or non-renewal of a Franchise. Any suspension of a
nonexclusive Franchise shall specify conditions upon which the
nonexclusive franchise may be reinstated or terminated.
13.2 A notice of intent to terminate a non-exclusive
Franchise shall be personally delivered or mailed, at the
discretion of the Director, to the Franchisee at the
Franchisee's notice address of record, shall state grounds for
suspension or termination and shall give the Franchisee notice
of the time, date and place of a hearing before the City Council
thereon, which shall be convened no more than 60 days after the
date of notice, subject to continuance with the consent of the
parties. The notice shall advise the Franchisee that it may be
represented by counsel and may contain any other information
deemed proper.
13.3 The hearing shall be conducted and closed, and
decision rendered thereon within 60 days after the date of the
hearing.
13.4 The City Council shall have the right to
terminate or suspend any non-exclusive Franchise Agreement
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granted pursuant to Chapter 8.61 if the City Council finds,
after a public hearing, that:
13.4.1 The Franchisee has failed to comply with,
or to do anything required of the Franchisee by Chapter 8.61, or
that Franchisee has violated any provision of the ordinance
granting the non-exclusive Franchise, including, but without
limitation, failure to timely pay all franchise fees, or has
violated any provision of the non-exclusive Franchise Agreement
or any federal, state or local law or regulation applicable to
the operation of the non-exclusive Franchise; or
13.4.2 Any provision of Chapter 8.61 or of the
Franchise Agreement is repealed or becomes or is declared to be
invalid, and the City Council expressly finds that such
provision constitutes a material consideration to the grant or
continuation of such non-exclusive Franchise.
13.5 TERMINATION. The City Council shall have the
right to terminate any nonexclusive Franchise pursuant to
Chapter 8.61, whenever the continued operation by the Franchisee
would constitute a danger to public health, safety, welfare or
public morals, including without limitation, where there is a
failure to maintain the minimum levels and standards of
liability insurance or claims reserve or failure to keep in full
force and effect any applicable licenses or permits required by
federal, state law or regulation or failure to comply with any
material term of this franchise agreement or any law, rule or
regulation governing the operation of the franchise. Continued
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failure or inability to meet recycling requirements or continued
failure or inability to make timely payments or timely submittal
of reports, or non-compliance with a request for documents,
reports or inspections shall, among other material violations,
constitute grounds for suspension, termination or non-renewal of
a Franchise. The decision to terminate shall contain findings of
fact; a determination of the issues presented and shall be final
and conclusive.
14.0 TEMPORARY SUSPENSION. The Director of the Department
of Public Works may temporarily suspend any non-exclusive
Franchise without a hearing, whenever the continued operation by
the Franchisee would constitute a danger to public health,
safety, welfare or public morals, including, without limitation,
where there is a failure to maintain the minimum levels and
standards of liability insurance or claims reserve or failure to
keep in full force and effect any applicable licenses or permits
required by federal, state or local law or regulation. The
notice of temporary suspension may be personally delivered to
the party named and to the address given on the application
pursuant to which such non-exclusive Franchise was issued and to
the notice address stated herein, if different, or, mailed by
registered or certified mail to the party named at the address
given on the application pursuant to which such Franchise was
issued and to the notice address stated herein, if different.
Notwithstanding other notice provisions of this Agreement, the
temporary suspension is effective upon the earlier of either
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receipt or the expiration of 3 days from the date of mailing.
The notice of temporary suspension shall include a notice of the
date and time for termination hearing and all other information
required by paragraph B of Section 8.61.130 of the Pasadena
Municipal Code. The temporary suspension shall remain effective
until the decision on suspension or termination by the City
Council is made pursuant to Section 8.61.130 or unless the
suspension is lifted by written notice of the Director.
14.1 INFRACTIONS/VIOLATIONS.
Any franchisee that violates any provision of this franchise
agreement and is convicted of an infraction shall be punished by
a fine of an amount defined in General Fee Schedule. Each
franchisee convicted may be deemed guilty of a separate offense
for every day during any portion of which any violation is
committed or permitted. In addition franchisee may be subject to
the administrative proceedings set forth in
Chapters 1.25 and 1.26 of the Pasadena Municipal Code,
including, but without limitation, civil penalties, late payment
penalties, administrative fees, general fee schedule penalties
and other related charges.
15.0 ACCEPTANCE, WAIVER.
Franchisee agrees to be bound by and comply with all the
requirements of Chapter 8.61 and this Agreement. By entering
into this Agreement, Franchisee waives, to the maximum extent
permitted by law, Franchisee's right to challenge the terms of
this Agreement and of Chapter 8.61 under federal, state or local
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law, or under administrative regulation, as such laws and
regulations exist as of the date of signing of this Agreement.
16.0 GENERAL TERMS AND CONDITIONS.
16.1 INDEPENDENT STATUS. It is understood that in the
performance under this Agreement, Franchisee shall be, and is,
an independent operator, and is not an agent, contractor, or
employee of City and shall furnish services in its own manner
and method. Further, Franchisee has and shall retain the right
to exercise full control over the employment, direction,
compensation and discharge of all persons employed by Franchisee
in its business operations. Franchisee shall be solely
responsible for, and shall indemnify, defend and save City
harmless from all matters relating to the payment of its
employees, including compliance with social security,
withholding and all other wages, salaries, benefits, taxes,
exactions, and regulations of any nature whatsoever.
16.2 FRANCHISEE NOT AGENT. Franchisee, its
subcontractors and brokers shall have no authority, express or
implied, to act on behalf of or bind the City in any capacity
whatsoever as agents or otherwise.
16.2.1 SUBCONTRACTORS AND BROKERS.
Pursuant to Chapter 8.61, if a franchisee utilizes a
subcontractor(s) or broker(s) to collect, transport, dispose,
and or recycle solid waste, organics, or construction and
demolition that is produced, kept, or accumulated within the
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jurisdictional boundaries of the City, a written agreement must
be developed. The agreement between the broker and/or
subcontractor and franchisee must be pre-approved by the City in
writing. Separate agreements must be in place for each entity
that the franchisee utilizes as either a broker or
subcontractor. Contract agreements between franchisees and
subcontractors/brokers must indicate cost details, period of
contract (start to finish date) and liability issues (if any).
A list of Pasadena customers serviced by subcontractors/brokers
must be provided to City staff at the time franchisee customer
list is provided (January of every year). Subcontractors/brokers
must provide proof of automobile, general liability and worker’s
compensation insurance required by City of Pasadena. Monthly
tonnage and fee reports shall include tonnage and fees collected
by franchisee and subcontractors/brokers. Franchisee shall NOT
have any subcontractors/brokers pay the City such franchise
fees. Diversion for material collected by subcontractors/brokers
may only be reported by franchisee.
16.3 WAIVER. The City's waiver of any term, condition,
breach or default of this Agreement shall not be considered to
be a waiver of any other term, condition, default or breach, nor
of a subsequent breach of the one waived.
16.4 NO ASSIGNMENT. No Franchise shall be sold,
leased, transferred, assigned, or otherwise disposed of, either
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in whole or in part, whether by forced sale, merger,
consolidation, bankruptcy, reorganization under bankruptcy laws
or otherwise, without the prior consent of the City Council
expressed by ordinance; however, a change of name or a sale of
accounts to a current City solid waste Franchisee, who is in
good standing and in compliance with City ordinances does not
require City Council approval.
16.5 COMPLIANCE WITH LAWS. Franchisee shall comply
with all Federal, State, County and City laws, ordinances,
resolutions, rules and regulations, which are, as amended from
time to time, incorporated herein and applicable to the
performance hereof.
16.6 ATTORNEY'S FEES. If any action at law or in
equity is brought to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable
attorney's fees, costs and necessary disbursements in addition
to any other relief to which such party may be entitled.
16.7 INTERPRETATION.
16.7.1 Applicable Law. This Agreement, and the
rights and duties of the parties hereunder (both procedural and
substantive), shall be governed by and construed according to
the laws of the State of California.
16.7.2 Entire Agreement. This Agreement,
including any Exhibits attached hereto and any documents
explicitly referenced herein, constitutes the entire agreement
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29
and understanding between the parties regarding its subject
matter and supersedes all prior or contemporaneous negotiations,
representations, understandings, correspondence, documentation
and agreements (written or oral).
16.7.3 Written Amendment. This Agreement may only
be changed by written amendment signed by Franchisee and the
City Manager or other authorized representative of the City,
subject to any requisite authorization by the City Council. Any
oral representations or modifications concerning this Agreement
shall be of no force or effect.
16.7.4 Severability. If any provision in this
Agreement is held by any court of competent jurisdiction to be
invalid, illegal, void, or unenforceable, such portion shall be
deemed severed from this Agreement, and the remaining provisions
shall nevertheless continue in full force and effect as fully as
though such invalid, illegal, or unenforceable portion had never
been part of this Agreement.
16.7.5 Choice of Forum. The parties hereby agree
that this Agreement is to be enforced in accordance with the
laws of the State of California, is entered into and is to be
performed in the City of Pasadena and that all claims or
controversies arising out of or related to performance under
this Agreement shall be submitted to and resolved in a forum
within the County of Los Angeles at a place to be determined by
the rules of the forum.
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16.7.6 Order of Precedence. In case of conflict
between the terms of this Agreement and the terms contained in
any document attached as an Exhibit or otherwise incorporated by
reference, the order of precedence is as follows: Charter of
the City of Pasadena, the Pasadena Municipal Code, the ordinance
granting this Franchise, resolutions of the City of Pasadena,
this Agreement, and Franchisee's application to the City for
this Franchise.
16.7.7 Duplicate Originals. There shall be two
(2) fully signed copies of this Agreement, each of which shall
be deemed an original.
16.8 AUTHORITY OF FRANCHISEE. The Franchisee hereby
represents and warrants to the City that the Franchisee has the
right, power, legal capacity and authority to enter into and
perform its obligations under this Agreement, and its execution
of this Agreement has been duly authorized.
17.0 ADDITIONAL ASSURANCES BY PASADENA FRANCHISEES.
17.1 EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.
Franchisee agrees to comply with the City's Competitive Bidding
and Purchasing Ordinance, Chapter 4.08 of the Pasadena Municipal
Code, the rules and regulations promulgated thereunder, the
California Fair Employment and Housing Act (Government Code
Section 12900 et seq.) and to this end:
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17.1.1 Franchisee certifies and represents that,
during the performance of this Agreement, Franchisee and any
other parties with whom it may subcontract shall adhere to equal
opportunity employment practices to assure that applicants and
employees are treated equally and are not discriminated against
because of their race, religion, color, national origin,
ancestry, disability, sex, age, medical condition, marital
status. Franchisee further certifies that it will not maintain
any segregated facilities.
17.1.2 Franchisee shall, in all solicitations or
advertisements for applicants for employment placed by or on
behalf of this Agreement, state that Franchisee is an "Equal
Opportunity Employer" or that all qualified applicants will
receive consideration for employment without regard to their
race, religious creed, color, national origin, ancestry,
disability, sex, age, medical condition or marital status.
17.1.3 Franchisee shall, if requested to so do by
the City, certify that it has not, in the performance of this
Agreement, discriminated against applicants or employees because
of their race, religious creed, color, national origin,
ancestry, disability, sex, age, medical condition or marital
status.
17.1.4 If requested to do so by the City,
Franchisee shall provide the City with access to copies of all
of its records pertaining or relating to its employment
practices, except to the extent such records or portions of such
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records are confidential or privileged under state or federal
law.
17.1.5 Franchisee agrees to recruit Pasadena
residents initially and to give them preference, if all other
factors are equal, for any new positions which result from the
performance of this Agreement and which are performed within the
City.
17.1.6 Nothing contained in this Agreement shall
be construed in any manner so as to require or permit any act,
which is prohibited by law.
17.1.7 Franchisee shall include the provisions
set forth in paragraphs numbered 18.1.1 through 18.1.6 of
subsection 18.1 of this Agreement, inclusive, in each of its
subcontracts under this Agreement.
17.2 BUSINESS LICENSES. Franchisee shall obtain,
and pay any and all costs associated therewith, any Pasadena
Business License, which may be required by the Pasadena
Municipal Code and all permits, and licenses applicable to
Franchisee's operations under this Franchise, which are required
of Franchisee by any governmental agency.
17.3 MAINTENANCE AND INSPECTION OF RECORDS.
The City, or its authorized auditors or
representatives, shall have access to and the right to audit and
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33
reproduce any of the Franchisee's records to the extent the City
deems necessary to insure it is receiving all money to which it
is entitled under the Agreement and/or is paying only the
amounts to which Franchisee is properly entitled under the
Agreement or for other purposes relating to the Agreement.
The Franchisee shall maintain and preserve all such
records for a period of at least 3 years after termination of
the Agreement.
The Franchisee shall maintain all such records in the
City of Pasadena. If not, the Franchisee shall, upon request,
promptly deliver the records to the City of Pasadena or
reimburse the City for all reasonable and extra costs incurred
in conducting the audit at a location other than the City of
Pasadena, including, but not limited to, such additional (out of
the City) expenses for personnel, salaries, private auditors,
travel, lodging, meals and overhead.
17.4 CONFLICT. Franchisee hereby represents warrants
and certifies that no member, officer or employee of the
Franchisee is a director, officer or employee of the City of
Pasadena, or a member of any of its boards, commissions or
committees, except to the extent permitted by law.
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18.0 NOTICES.
Except as otherwise provided in this Agreement, all notices
required by this Agreement or by Chapter 8.61 of the Pasadena
Municipal Code shall be given by personal service or by deposit
in the United States mail, postage pre-paid and return receipt
requested, addressed to the parties as follows:
To City: Department of Public Works/SMIWM Division
Attn: Carmen Rubio-Program Coordinator II
City of Pasadena
P.O. Box 7115
Pasadena, California 91109-9866
Franchisee: ________________________________________
Attention:
________________________________________
________________________________________
________________________________________
Notice shall be deemed effective on the date personally served
or, if mailed, three days after the date deposited in the mail.
19.0 Taxpayer Protection Amendment. Under the provisions of
the City of Pasadena Taxpayer Amendment of 2000 (“Taxpayer
Protection Act”), the Franchisee will be considered a “recipient
of a public benefit.” The full provisions of the Taxpayer
Protection Act are set forth in Pasadena City Charter, Article
XVII. Under the Taxpayer Protection Act, City public officials
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35
who approve this Contract are prohibited from receiving gifts,
campaign contributions or employment from Franchisee for a
specified time. This prohibition extends to individuals and
entities which are specified and identified in the Taxpayer
Protection Act and includes Franchisee and its trustees,
directors, partners, corporate officers and those with more than
a 10% equity, participation, or revenue interest in Franchisee.
Franchisee understands and agrees that: (A) Franchisee is aware
of the Taxpayer Protection Act; (B) Franchisee will complete and
return the forms provided by the City in order to identify all
of the recipients of a public benefit specified by the City in
order to identify all of the recipients of a public benefit
specified in the Taxpayer Protection Act; and (C) Franchisee
will not make any prohibited gift, campaign contribution or
offer of employment to any public official who approved this
Contract.
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20.0 Administrative Rules and Regulations.
Franchisee agrees to conform with all administrative
Rules and Regulations duly adopted by the Director, now or at
any time during the term of the Franchise, pursuant to Chapter
8.61 of the Pasadena Municipal Code, for the purpose of
administering and monitoring the operations of all franchises in
the City of Pasadena.
21.0 Security Deposit.
Franchisee shall maintain a bond or other security
with the City, in a form acceptable to the Director, in an
amount required to secure payment of franchise fees projected
for one month of the Franchise, or the amount of ten thousand
dollars, whichever amount is greater. The bond or security must
be submitted within seven days from the date the Franchise is
granted and must be replenished within ten (10) days from any
draw by the City. The City may draw upon the bond or security
after five (5) days written notice to Franchisee. The remaining
bond or security will be returned to the Franchisee by the City
on termination of the Franchise.
/ / /
/ / /
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IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their duly authorized
representatives as of the date set forth below.
DATED: CITY OF PASADENA
_______________________
STEVE MERMELL
City Manager
ATTEST:
_________________________
Mark Jomsky, CMC
City Clerk
DATED: FRANCHISEE:
____________________________
By: _______________________
(Signature)
_______________________
(Print Name)
Title: _____________________
Dated: _____________________
APPROVED AS TO FORM:
___________________________
Brad L. Fuller
Assistant City Attorney
REVIEWED:
____________________________
Erika Estrada
Purchasing Administrator
Non-Exclusive Solid Waste Collection Franchise Application
Revised January 2011
Renewal Application For
NON-EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE
FRANCHISEE INFORMATION
Legal Company Name and DBA: _____ _______________________________________________
Address: _
City: State: Zip:
Mailing Address (if different from above): ____________________________________
City: State: ______ Zip:
Fleet Address (if different from above): ___________________________________________________
Website address: ___________________________________________________________________
Business License Number: Expiration Date:
Contact/Preparer's Name and Title (print):
Telephone #: Fax #_______ E-mail: ______
FRANCHISE VEHICLES
Please list all vehicles, including license plate numbers and vehicle identification numbers to be used in
connection with this franchise. Use additional sheets of paper, if needed.
Vehicle
Number Vehicle Make & Model License Plate
Number Vehicle Identification Number
Have you conducted trash or recycling collection in the City of Pasadena in the past, under a different name other
than your current franchise name? No:_____Yes:_____ Year:_______Other Business Name:_________________
CERTIFICATION
I declare under penalty of perjury under the laws of the State of California that the information contained in this application is
true and correct.
___________________________________________
Owner/President Name and Title (print) Telephone Number E-mail address
_____________ ____________________________
Owner/President Signature Date
OFFICE USE ONLY
Application Processing Fee Received on ________ Date application received: ____
Received by: __________ Date approved: Date denied: ___________
Effective Date: ___________ ______________ Term of Franchise: _________________________
Application packet date completed: ______________________ Incomplete Date: _ ______________________________
PASADENA PUBLIC WORKS
Street Maintenance & Integrated Waste Management
www.ci.pasadena.ca.us/publicworks
626-744-7162
626-396-7774 Fax
Mail: City of Pasadena
Department of Public Works/SMIWM
P.O. Box 7115
Pasadena, CA 91109-9866
Non-Exclusive Solid Waste Collection Franchise Hauler ▪ Monthly Fee Payment Report Revised April 2017
Non-Exclusive Solid Waste Collection Franchise Hauler
MONTHLY FEE PAYMENT REPORT
PAYMENT FOR MONTH: _______________YEAR: ____________DUE DATE: ___________________
FRANCHISEE INFORMATION
Company Name: _____________________________________________________________________
Owner's Name: ______________________________________________________________________
Preparer’s Name and Title (print): ________________________________________________________
PAYMENT CALCULATION
1. City of Pasadena Franchise Fee: .23066 x $ = $
(23.066% of Gross Receipts for Pasadena Accounts) CODE: REFUSE
2. Liquidated Damages Amount for Solid Waste: $
(From Solid Waste tonnage report) CODE: LIQUID
3. Liquidated Damages Amount for C & D: $_________________
(From Construction and Demolition tonnage report) CODE: LIQUID
4. TOTAL PAYMENT DUE: $
Please make your check(s) payable to the City of Pasadena and remit payment to the address above.
If you have any questions on calculating your franchise fee, please call (626) 744-7162.
CERTIFICATION
I declare under penalty of perjury under the laws of the State of California that the information contained
in this report is true and correct.
__________________________
Authorized Signature Date
PASADENA PUBLIC WORKS
Street Maintenance & Integrated Waste Management
www.ci.pasadena.ca.us/publicworks
626-744-7162 phone
626-396-7774 fax
Mailing Address: City of Pasadena-Public Works
Municipal Services
P O Box 7138
Pasadena, CA 91109-7138
ROWDESCRIPTION RESIDENTIAL MULTI-FAMILY COMMERCIAL INDUSTRIALDisposal TonnageA Tons Disposed by Hauler in Reporting MonthB Tons Disposed at Large Venue EventsC City of Pasadena Approved Exemption TonsD Total Tons Disposed by Hauler in Reporting Month with Approved ExemptionE Total Tons Disposed by Hauler in Reporting Month without Approved ExemptionDiversion TonnageF Recycling Tons Diverted by Hauler in Reporting MonthG Tons Diverted at Large Venue EventsH Transformation Tons Diverted by Hauler in Reporting MonthI Third Party / Internal Diversion Tonnage in Reporting Month (25% in tons of total tonnage reported)J Total Diversion Tons Without Third Party / Internal Diversion TonsK Total Diversion Tons With Third Party / Internal Diversion TonsGeneration TonnageL Total Generation Tons (With Third Party / Internal Diversion, No Exemption)M Total Generation Tons (With Third Party / Internal Diversion, With Exempt Tons)N Total Generation Tons (Without Third Party / Internal Diversion, No Exemption)O Total Generation Tons (Without Third Party / Internal Diversion, With Exempt Tons)Diversion Rate CalculationP Hauler Diversion Rate (With Third Party / Internal Diversion, No Exemption)Q Hauler Diversion Rate (With Third Party / Internal Diversion, With Exempt Tons)R Hauler Diversion Rate (Without Third Party / Internal Diversion, No Exemption)S Hauler Diversion Rate (Without Third Party / Internal Diversion, With Exempt Tons)Liquidated Damages CalculationTUVWXYZNumber of Customers for Reporting Month: Temporary: __________ Permanent: __________ SOLID WASTE REPORTNumber of 3rd Party Customers: ___________________________________________ CITY OF PASADENANON-EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE HAULER WASTE DIVERSION MONTHLY TONNAGE REPORT Hauler Name: __________________________________________________________ Reporting Month and Year: _______________________________________________ Enter Per Ton Liquidated Damages Charge ($40 for less than 20% Diversion Rate; $30 for 20% or greater but less than 30%; $20 for 30% or greater, but less than 40%; $10 for 40% or greater but less than the applicable, required recycling diversion percentage)Minimum Diversion Tons Needed to Achieve 60% Diversion Rate With City Approved Exempt TonnageAdditional Tons Needed to Achieve 60% Diversion Rate Without City Approved Exempt TonsTOTAL TONSAuthorized Signature:__________________________________ Print Name:__________________________________ Date: _____________________Preparer's Name and Title: Print Name: ____________________________________________ Print Title:________________________________________________________Certification: I declare under penalty of perjury under the laws of the State of California that the information contained in this report is true and correct. In claiming an exception in this reporting period, I affirm that the facts upon which the waste characterization analysis and exemption are based, have not changed materially during the reporting period.Total Liquidated Damages Charge for Reporting Month Total of Monthly Franchise Fee and Liquidated Damages for Reporting MonthAdditional Tons Needed to Achieve 60% Diversion Rate With City Approved Exempt TonsWASTE STREAM SOURCE BY SECTORMinimum Diversion Tons Needed to Achieve 60% Diversion Rate Without City Approved Exempt Tonnage
ROW DESCRIPTION RESIDENTIAL MULTI-FAMILY COMMERCIAL INDUSTRIAL ATonnage Not Counted as Disposal or Recycling CIWMB-permitted inert facilities Disposal TonnageB C & D Tons DisposedDiversion TonnageC C & D Tons DivertedD Transformation Tons DivertedE Total Diversion Tons Generation TonnageF Total Generation Tons Diversion Rate CalculationG Hauler Diversion Rate Liquidated Damages CalculationHIJKL Total of Monthly Franchise Fee and Liquidated Damages for Reporting MonthPreparer's Name and Title: Print Name: ____________________________________________ Print Title:________________________________________________________Authorized Signature:_____________________________________ Print Name:__________________________________ Date: ________________ NON-EXCLUSIVE SOLID WASTE COLLECTION FRANCHISE HAULER WASTE DIVERSION MONTHLY TONNAGE REPORTHauler Name: _____________________________________________________ Reporting Month and Year: _________________________________________ WASTE STREAM SOURCE BY SECTORMinimum Diversion Tons Needed to Achieve 75% Diversion RateAdditional Tons Needed to Achieve 75% Diversion Rate Total Liquidated Damages Charge for Reporting Month CITY OF PASADENACertification: I declare under penalty of perjury under the laws of the State of California that the information contained in this report is true and correct. Enter Per Ton Liquidated Damages Charge ($40 for less than 20% Diversion Rate; $30 for 20% or greater but less than 30%; $20 for 30% or greater, but less than 40%; $10 for 40% or greater, but less than the applicable, required recycling diversion percentage)Number of Customers for Reporting Month: Temporary: __________ Permanent: __________ CONSTRUCTION AND DEMOLITION REPORTTOTAL TONS
Name of Disposal Facility Residential Multi-Family Commercial IndustrialTotal Disposal TonsTotal Disposed TonsName of Diversion Facility Residential Multi-Family Commercial IndustrialTotal Diversion TonsTotal Diverted TonsName of Transformation Facility Residential Multi-Family Commercial IndustrialTotal Transformation Diverted TonsTotal Transformation TonsName of C & D Disposal Facility Residential Multi-Family Commercial IndustrialTotal C&D Disposed TonsTotal C&D Disposed TonsName of C & D Diversion FacilityResidential Multi-Family Commercial IndustrialTotal C&D Diverted TonsTotal C&D Diverted TonsFacility for Tons Not Counted as Disposal or Diversion (WASH)Residential Multi-Family Commercial IndustrialTotal Tons (WASH)Total Tons (WASH)Large Venue Event Name Event Date Tons Disposed Tons DivertedTOTAL DISPOSED TONSTOTAL DIVERTED TONSEvent Location Date _______________ Hauler Name:__________________________________________Reporting Month: __________________________________MONTHLY SUMMARY REPORT FOR SOLID WASTE AND CONSTRUCTION AND DEMOLITION BY DESTINATION
City of Miami Beach
EXHIBIT D
Sacramento, CA
Franchise Agreement Forms and Documents
City of Miami Beach
This page intentionally left blank.
Contract No. 7XXXX
Page 1 of 19
COUNTY OF SACRAMENTO COMMUNITY SERVICES AGENCY
FRANCHISE AGREEMENT FOR COMMERCIAL SOLID WASTE
COLLECTION
THIS FRANCHISE AGREEMENT is made and entered into on
by and between the COUNTY OF SACRAMENTO, a political
subdivision of the State of California, hereinafter referred to as “COUNTY”,
and BUSINESS NAME, BUSINESS TYPE, hereinafter referred to as
“FRANCHISEE.”
RECITALS
WHEREAS, Public Resources Code section 40059 broadly authorizes COUNTY
to determine aspects of solid waste handling which are of local concern,
including the means of collection and transportation of solid waste and the
nature, location, and extent of providing solid waste handling services; and
WHEREAS, COUNTY has determined that it is in its best interest to provide for
commercial solid waste collection, transportation, and disposal services by
means of non-exclusive franchises; and
WHEREAS, section 6.20.210 of the Sacramento County Code (hereinafter
referred to as “SCC”) authorizes the Board to grant franchises for such
services; and
WHEREAS, the Board, pursuant to the provisions of SCC section 6.20.210, has
determined that it is desirable to retain FRANCHISEE to provide commercial
solid waste collection, transportation and disposal services within the
unincorporated County; and
WHEREAS, the services to be provided by FRANCHISEE for the subject project
are not services provided by county employees and, therefore, not subject to
the requirements of Sacramento County Charter Section 71-J; and
WHEREAS, the services to be provided by FRANCHISEE are further authorized
by Government Code Section 31000; and
WHEREAS, COUNTY and FRANCHISEE desire to terminate Agreement No.
70XXX and execute this Agreement in its place; and
Contract No. 7XXXX
Page 2 of 19
WHEREAS, COUNTY and FRANCHISEE desire to enter into this Agreement on
the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual promises hereinafter set
forth, COUNTY and FRANCHISEE agree as follows:
1. GRANT OF FRANCHISE
A. By this Agreement, COUNTY hereby grants to FRANCHISEE a
non-exclusive commercial solid waste collection franchise
authorizing FRANCHISEE to engage in the business of collecting,
transporting and disposing of Commercial Solid Waste kept,
accumulated or generated within the unincorporated County and
to use the public streets and rights of way for such purpose.
B. This grant is made pursuant to FRANCHISEE's Application for
COUNTY Franchise dated _______, which application is
incorporated herein by this reference.
2. CONDITIONS OF EFFECTIVENESS The effectiveness and validity of this Agreement is subject to
FRANCHISEE's satisfaction of each and all of the conditions set forth
below, each of which may be waived in whole or in part by COUNTY.
A. Accuracy of Representations. The representation and warranties
made by FRANCHISEE in its Application for Franchise are true
and correct on and as of the effective date of this Agreement.
B. Absence of Litigation. There is no litigation pending, as of the
effective date of this Agreement, in any court challenging the
award or execution of this Franchise or seeking to restrain or
enjoin performance thereunder.
C. Furnishing of Insurance. FRANCHISEE has furnished evidence of
the Insurance required by this Agreement.
3. SCOPE OF SERVICES
FRANCHISEE shall provide services in the amount, type and manner
described in Exhibit A, which is attached hereto and incorporated
herein.
4. TERM
This Agreement shall be effective and commence as of the date first
written above and shall remain in effect until ______________.
Contract No. 7XXXX
Page 3 of 19
5. NOTICE
Any notice, demand, request, consent, or approval that either party
hereto may or is required to give the other pursuant to this Agreement
shall be in writing and shall be either personally delivered or sent by
mail, addressed as follows:
TO COUNTY:
Department of Waste
Management and Recycling
10863 Gold Center Dr.
Rancho Cordova, CA 95670
Attn: Director
TO FRANCHISEE:
INSERT HERE
Either party may change the address to which subsequent notice and/or
other communications can be sent by giving written notice designating
a change of address to the other party, which shall be effective upon
receipt.
Notice shall be deemed effective on the date personally served or, if
mailed, three days after the date deposited in the mail.
FRANCHISEE shall maintain functional Electronic Mail (E-mail) during
the entire duration of the Agreement and provide COUNTY with such
E-mail address for COUNTY communication to FRANCHISEE.
FRANCHISEE shall notify COUNTY of any change in its functional E-
mail address in writing via US Mail or Email communication to the
COUNTY.
6. COMPLIANCE WITH LAWS
A. FRANCHISEE shall, at all times and at its sole cost and expense,
observe and comply with all applicable Federal, State, regional,
and County laws, regulations, rules and ordinances, including
those of other states, cities, or counties which may have
jurisdiction over any service provided by FRANCHISEE under this
Agreement.
B. Economic Sanctions: Pursuant to California State Executive
Order N-6-22 (Order) imposing economic sanctions against
Russia and declaring support of Ukraine, COUNTY shall terminate
any contract with any individual or entity that is in violation of
the Order or that is subject to economic sanctions therein, and
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shall not enter a contract with any such individual or entity while
the Order is in effect.
7. GOVERNING LAWS AND JURISDICTION
This Agreement shall be deemed to have been executed and to be
performed within the State of California and shall be construed and
governed by the internal laws of the State of California. Any legal
proceedings arising out of or relating to this Agreement shall be brought
in Sacramento County, California or in the United States District Court
for the Eastern District of California, as applicable.
8. LICENSES AND PERMITS
A. FRANCHISEE shall possess and maintain all necessary licenses, permits, certificates and credentials required by the laws of the
United States, the State of California, County of Sacramento and
all other appropriate governmental agencies, including any
certification and credentials required by COUNTY. Failure to
maintain the licenses, permits, certificates, and credentials shall be deemed a breach of this Agreement and constitutes grounds
for the termination of this Agreement by COUNTY.
B. FRANCHISEE further certifies to COUNTY that it and its principals
are not debarred, suspended, or otherwise excluded from or
ineligible for, participation in federal, state or county government
contracts. FRANCHISEE certifies that it shall not contract with a
subcontractor that is so debarred or suspended.
9. PERFORMANCE STANDARDS
FRANCHISEE shall perform its services under this Agreement in
accordance with the industry and/or professional standards applicable
to FRANCHISEE’S services.
10. OWNERSHIP OF WORK PRODUCT
All technical data, evaluations, plans, specifications, reports,
documents, or other work products developed by FRANCHISEE provided
hereunder shall be the exclusive property of COUNTY and shall be
delivered to COUNTY upon completion of the services authorized
hereunder. FRANCHISEE may retain copies thereof for its files and
internal use. Publication of the information directly derived from work
performed or data obtained in connection with services rendered under
this Agreement must first be approved in writing by COUNTY. COUNTY
recognizes that all technical data, evaluations, plans, specifications,
reports, and other work products are instruments of FRANCHISEE’S
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services and are not designed for use other than what is intended by
this Agreement.
11. STATUS OF FRANCHISEE
A. It is understood and agreed that FRANCHISEE (including
FRANCHISEE’S employees) is an independent contractor and that
no relationship of employer-employee exists between the parties
hereto. FRANCHISEE’S assigned personnel shall not be entitled
to any benefits payable to employees of COUNTY. COUNTY is not
required to make any deductions or withholdings from the
compensation payable to FRANCHISEE under the provisions of this
Agreement; and as an independent contractor, FRANCHISEE
hereby indemnifies and holds COUNTY harmless from any and all claims that may be made against COUNTY based upon any
contention by any third party that an employer-employee
relationship exists by reason of this Agreement.
B. It is further understood and agreed by the parties hereto that FRANCHISEE in the performance of its obligation hereunder is
subject to the control or direction of COUNTY as to the designation
of tasks to be performed, the results to be accomplished by the
services hereunder agreed to be rendered and performed, and not
the means, methods, or sequence used by FRANCHISEE for
accomplishing the results.
C. If, in the performance of this Agreement, any third persons are
employed by FRANCHISEE, such person shall be entirely and
exclusively under the direction, supervision, and control of
FRANCHISEE. All terms of employment, including hours, wages,
working conditions, discipline, hiring, and discharging, or any
other terms of employment or requirements of law, shall be
determined by FRANCHISEE, and the COUNTY shall have no right
or authority over such persons or the terms of such employment.
D. It is further understood and agreed that as an independent
contractor and not an employee of COUNTY, neither the
FRANCHISEE nor FRANCHISEE’S assigned personnel shall have
any entitlement as a COUNTY employee, right to act on behalf of
COUNTY in any capacity whatsoever as agent, nor to bind COUNTY
to any obligation whatsoever. FRANCHISEE shall not be covered
by worker’s compensation; nor shall FRANCHISEE be entitled to
compensated sick leave, vacation leave, retirement entitlement,
participation in group health, dental, life and other insurance
Contract No. 7XXXX
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programs, or entitled to other fringe benefits payable by the
COUNTY to employees of the COUNTY.
E. It is further understood and agreed that FRANCHISEE must issue
W-2 and 941 Forms for income and employment tax purposes, for
all of FRANCHISEE’S assigned personnel under the terms and
conditions of this Agreement.
12. FRANCHISEE IDENTIFICATION
FRANCHISEE shall provide the COUNTY with the following information
for the purpose of compliance with California Unemployment Insurance
Code section 1088.8 and SCC chapter 2.160: FRANCHISEE’S name,
address, telephone number, social security number or federal tax identification number, and whether dependent health insurance
coverage is available to FRANCHISEE.
13. COMPLIANCE WITH CHILD, FAMILY AND SPOUSAL SUPPORT
REPORTING OBLIGATIONS A. FRANCHISEE’s failure to comply with state and federal child,
family and spousal support reporting requirements regarding
FRANCHISEE’s employees or failure to implement lawfully served
wage and earnings assignment orders or notices of assignment
relating to child, family and spousal support obligations shall
constitute a default under this Agreement.
B. FRANCHISEE’s failure to cure such default within ninety (90) days
of notice by COUNTY shall be grounds for termination of this
Agreement.
14. BENEFITS WAIVER
If FRANCHISEE is unincorporated, FRANCHISEE acknowledges and
agrees that FRANCHISEE is not entitled to receive the following benefits
and/or compensation from COUNTY: medical, dental, vision and
retirement benefits, life and disability insurance, sick leave,
bereavement leave, jury duty leave, parental leave, or any other similar
benefits or compensation otherwise provided to permanent civil service
employees pursuant to the County Charter, the SCC, the Civil Service
Rule, the Sacramento County Employees’ Retirement System and/or
any and all memoranda of understanding between COUNTY and its
employee organizations. Should FRANCHISEE or any employee or agent
of FRANCHISEE seek to obtain such benefits from COUNTY,
FRANCHISEE agrees to indemnify and hold harmless COUNTY from any
and all claims that may be made against COUNTY for such benefits.
Contract No. 7XXXX
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15. CONFLICT OF INTEREST
FRANCHISEE and FRANCHISEE’S officers and employees shall not have
a financial interest, or acquire any financial interest, direct or indirect,
in any business, property or source of income which could be financially
affected by or otherwise conflict in any manner or degree with the
performance of services required under this Agreement.
16. LOBBYING AND UNION ORGANIZATION ACTIVITIES
A. FRANCHISEE shall comply with all certification and disclosure
requirements prescribed by Section 319, Public Law 101-121 (31
U.S.C. § 1352) and any implementing regulations.
B. If services under this Agreement are funded with state funds granted to COUNTY, FRANCHISEE shall not utilize any such funds
to assist, promote or deter union organization by employees
performing work under this Agreement and shall comply with the
provisions of Government Code Sections 16645 through 16649.
17. NONDISCRIMINATION IN EMPLOYMENT, SERVICES, BENEFITS
AND FACILITIES
A. FRANCHISEE agrees and assures COUNTY that FRANCHISEE and
any sub-Contractors shall comply with all applicable federal, state,
and local Anti-discrimination laws, regulations, and ordinances
and to not unlawfully discriminate, harass, or allow harassment
against any employee, applicant for employment, employee or
agent of COUNTY, or recipient of services contemplated to be
provided or provided under this Agreement, because of race,
ancestry, marital status, color, religious creed, political belief,
national origin, ethnic group identification, sex, sexual orientation,
age (over 40), medical condition (including HIV and AIDS), or
physical or mental disability. FRANCHISEE shall ensure that the
evaluation and treatment of its employees and applicants for
employment, the treatment of COUNTY employees and agents,
and recipients of services are free from such discrimination and
harassment.
B. FRANCHISEE represents that it is in compliance with and agrees
that it will continue to comply with the Americans with Disabilities
Act of 1990 (42 U.S.C. § 12101 et seq.), the Fair Employment and
Housing Act (Government Code § 12900 et seq.), and regulations
and guidelines issued pursuant thereto.
Contract No. 7XXXX
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C. FRANCHISEE agrees to compile data, maintain records and submit
reports to permit effective enforcement of all applicable anti-
discrimination laws and this provision.
D. FRANCHISEE shall include this nondiscrimination provision in all
subcontracts related to this Agreement.
18. INDEMNIFICATION
To the fullest extent permitted by law, FRANCHISEE shall indemnify,
defend, and hold harmless COUNTY, its governing Board, officers,
directors, officials, employees, and authorized volunteers and agents
(collectively “Indemnified Parties”), from and against any and all claims,
demands, actions, losses, liabilities, damages, and all expenses and
costs incidental thereto (collectively “Claims”), including cost of defense,
settlement, arbitration, expert fees, and reasonable attorneys' fees,
resulting from injuries to or death of any person, including employees
of either party hereto, and damage to or destruction of any property, or
loss of use or a reduction in value thereof, including the property of
either party hereto, arising out of, pertaining to, or resulting from the
acts or omissions of FRANCHISEE, its officers, employees, or agents, or
the acts or omissions of anyone else directly or indirectly acting on
behalf of the FRANCHISEE, or for which FRANCHISEE is legally liable
under law. FRANCHISEE understands and agrees that this indemnity
obligation shall apply regardless of whether any loss, damage or cost
arises from, whether in whole or in part, any acts or omissions, or any
other negligence, concurrent or otherwise, on the part of COUNTY, or
any other party indemnified hereunder, except only those Claims caused
by the sole negligence or willful misconduct of an Indemnified Party.
The right to defense and indemnity under this Section arises upon
occurrence of an event giving rise to a Claim and, thereafter, upon
tender in writing to FRANCHISEE. FRANCHISEE shall defend Indemnified
Parties with counsel reasonably acceptable to SWA. Notwithstanding the
foregoing, SWA shall be entitled, on its own behalf, and at the expense
of FRANCHISEE, to assume control of its defense or the defense of any
Indemnified Party in any legal action, with counsel reasonably selected
by it. Should COUNTY elect to initially assume control of its defense, or
the defense of any Indemnified Party, it does so without prejudice to its
right to subsequently request that FRANCHISEE thereafter assume
control of the defense and pay all reasonable attorneys’ fees and costs
incurred thereby.
Contract No. 7XXXX
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This indemnity obligation shall not be limited by the types and amounts
of insurance or self-insurance maintained by FRANCHISEE or
FRANCHISEE’s subcontractors at any tier.
Nothing in this indemnity obligation shall be construed to create any
duty to, any standard of care with reference to, or any liability or
obligation, contractual or otherwise, to any third party.
The provisions of this indemnity obligation shall survive the expiration
or termination of the Agreement.
19. INSURANCE
Without limiting FRANCHISEE’S indemnification, FRANCHISEE shall
maintain in force at all times during the term of this Agreement and any
extensions or modifications thereto, insurance as specified in Exhibit B.
It is the responsibility of FRANCHISEE to notify its insurance advisor or
insurance carrier(s) regarding coverage, limits, forms and other
insurance requirements specified in Exhibit B. It is understood and
agreed that COUNTY shall not pay any sum to FRANCHISEE under this
Agreement unless and until COUNTY is satisfied that all insurance
required by this Agreement is in force at the time services hereunder are rendered. Failure to maintain insurance as required in this
agreement may be grounds for material breach of contract.
20. INFORMATION TECHNOLOGY ASSURANCES
FRANCHISEE shall take all reasonable precautions to ensure that any
hardware, software, and/or embedded chip devices used by
FRANCHISEE in the performance of services under this Agreement,
other than those owned or provided by COUNTY, shall be free from
viruses. Nothing in this provision shall be construed to limit any rights
or remedies otherwise available to COUNTY under this Agreement.
21. COMPENSATION A. Compensation under this Agreement shall be in accordance with
Exhibit C, or Exhibit C as modified by COUNTY in accordance with
express provisions in this Agreement.
B. FRANCHISEE shall maintain for five years following termination of
this agreement full and complete documentation of all services
and expenditures associated with performing the services covered
under this Agreement. Expense documentation shall include:
time sheets or payroll records for each employee; receipts for
Contract No. 7XXXX
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supplies; applicable subcontract expenditures; applicable
overhead and indirect expenditures.
22. ASSIGNMENT
A. FRANCHISEE acknowledges that this Agreement involves
rendering a vital service to commercial solid waste Generators
within the unincorporated County, and that COUNTY has
franchised FRANCHISEE to perform the services specified herein
based on: (1) FRANCHISEE'S experience, skill and reputation for
conducting its solid waste collection in a safe, effective and
responsible fashion, at all times in keeping with applicable waste
management laws, regulations and good solid waste management
practices, and (2) FRANCHISEE's financial resources to maintain the required equipment and to support its obligations to COUNTY
under this Agreement. COUNTY has relied on each of these
factors, among others, in choosing the FRANCHISEE to perform
the services to be rendered under this Agreement.
B. This Agreement is a privilege to be held in trust by FRANCHISEE.
A franchise granted by COUNTY shall not be transferred, sold,
leased, assigned, or relinquished, or delegated to another person,
either in whole or in part, whether by forced sale, merger,
consolidation, bankruptcy laws or otherwise, without the prior
approval of the COUNTY Board of Supervisors (“COUNTY Board”).
This restriction includes the transfer of ownership of the
Agreement, or a majority of the ownership or control of the
FRANCHISEE, or the conveyance of a majority of the
FRANCHISEE's stock to a new controlling interest. This Agreement
shall become void upon the abandonment of FRANCHISEE. The
COUNTY Board shall not unreasonably withhold approval of a
franchise assignment, provided that such assignment does not
unreasonably impact competition and the assignee is qualified to
perform its obligations as required by this Agreement and any
implementing County law, regulation, rule, or ordinance.
FRANCHISEE shall promptly notify the COUNTY Director in writing
in advance of any proposed assignment, sale, or transfer. In the
event the COUNTY Board approves of any assignment, sale, or
transfer, said approval shall not relieve FRANCHISEE of any of its
obligations or duties under this Agreement unless this Agreement
is modified in writing to that effect.
23. AMENDMENT AND WAIVER
Except as provided herein, no alteration, amendment, variation, or waiver of the terms of this Agreement shall be valid unless made in
Contract No. 7XXXX
Page 11 of 19
writing and signed by both parties. Waiver by either party of any
default, breach or condition precedent shall not be construed as a waiver
of any other default, breach or condition precedent, or any other right
hereunder. No interpretation of any provision of this Agreement shall be
binding upon COUNTY unless agreed in writing by Director and counsel
for COUNTY.
24. SUCCESSORS
This Agreement shall bind the successors of COUNTY and FRANCHISEE
in the same manner as if they were expressly named.
25. TIME
Time is of the essence of this Agreement.
26. INTERPRETATION
This Agreement shall be interpreted and construed reasonably and
neither for nor against either party, regardless of the degree to which
either party participated in its drafting.
27. DIRECTOR
As used in this Agreement, "Director" shall mean the Director of the
Department of Waste Management and Recycling for County of
Sacramento or his/her designee. Director shall administer this
Agreement on behalf of the COUNTY, and has authority to make administrative amendments to this Agreement on behalf of the COUNTY
including, but not limited to, scope of services, pricing, management
practices, etc. Unless otherwise provided herein or required by
applicable law, Director shall be vested with all the rights, powers, and
duties of COUNTY herein. With respect to matters herein subject to the
approval, satisfaction, or discretion of COUNTY or Director, the decision
of the Director in such matters shall be final.
28. DISPUTES
In the event of any dispute arising out of or relating to this Agreement,
the parties shall attempt, in good faith, to promptly resolve the dispute
mutually between themselves. Pending resolution of any such dispute,
FRANCHISEE shall continue without delay to carry out all its
responsibilities under this Agreement unless the Agreement is otherwise
terminated in accordance with the Termination provisions herein.
COUNTY shall not be required to make payments for any services that
are the subject of this dispute resolution process until such dispute has
been mutually resolved by the parties. If the dispute cannot be resolved
within 15 calendar days of initiating such negotiations or such other time
Contract No. 7XXXX
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period as may be mutually agreed to by the parties in writing, either
party may pursue its available legal and equitable remedies, pursuant
to the laws of the State of California. Nothing in this Agreement or
provision shall constitute a waiver of any of the government claim filing
requirements set forth in Title 1, Division 3.6, of the California
Government Code or as otherwise set forth in local, state and federal
law.
29. DEFAULT, TERMINATION
A. Default. Except for the occurrence of Force Majeure as described
in paragraph D of this section, in the event of any material
failure or refusal of FRANCHISEE to comply with any obligation
or duty imposed on FRANCHISEE under this Agreement or the SCC or related ordinances, resolutions, or administrative rules,
the COUNTY Director and FRANCHISEE shall meet and confer in
good faith in an effort to agree on a resolution and cure of the
breach. If the parties are unable to agree on the informal
resolution or cure of the breach within ten (10) business days, the COUNTY Board shall have the right to terminate this
AGREEMENT if:
1. Following the ten (10) day meeting period described
above, the COUNTY Director shall have given written
notice to FRANCHISEE specifying that a particular default
or defaults exists which will, unless corrected, constitute a
material breach of this Agreement on the part of
FRANCHISEE; and
2. FRANCHISEE fails to correct such default or fails to take
reasonable steps to commence to correct such default
within thirty (30) days from the date of the notice given by
the COUNTY Director under section (1) above and
FRANCHISEE thereafter fails to diligently continue to take
reasonable steps to correct such default.
B. In addition, the following events shall constitute a material
breach and default under this Agreement:
1. Misrepresentation. Any misrepresentation or disclosure
made to COUNTY by FRANCHISEE in connection with or as
an inducement to entering this Agreement or any future
amendment to this Agreement, which proves to be false or
misleading in any material respect as of the time the
representation or disclosure is made, whether or not any
such representation or disclosure appears as part of this
Agreement.
Contract No. 7XXXX
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2. Fraud or Deceit. If FRANCHISEE practices, or attempts to
practice, any fraud or deceit upon COUNTY.
3. Failure to Maintain Insurance Coverage. If FRANCHISEE
fails to provide or maintain in full force and effect the
Worker's Compensation, liability, or insurance coverage as
required by this Agreement.
4. Violations of Regulation. If FRANCHISEE violates any
permits, orders or filing of any regulatory body having
jurisdiction over FRANCHISEE which violation or non-
compliance materially affects FRANCHISEE'S ability to
perform under this Agreement, provided that FRANCHISEE
may contest any such orders or filings by appropriate
proceedings conducted in good faith, in which case no breach of the Agreement shall be deemed to have occurred
during the pendency of the contestation or appeal, to the
extent FRANCHISEE is able to adequately perform during
that period.
5. Acts or Omissions. Any other act or omission by FRANCHISEE which materially violates the terms,
conditions, or requirements of this Agreement; the
COUNTY ordinances, resolutions, administrative rules or
regulations; the California Integrated Waste Management
Act of 1989 (as codified in Public Resources Code section
40000 et seq.), as it may be amended from time to time;
or any order, directive, rule, or regulation issued
thereunder and which is not corrected or remedied within
the time set in the written notice of the violation or, if
FRANCHISEE cannot reasonably correct or remedy the
breach within the time set forth in such notices, if
FRANCHISEE should fail to commence to correct or remedy
such violation within the time set forth in such notice and
diligently effect such correction or remedy thereafter.
6. Termination of Service. In the case of a breach related to
the above sections, and the breach continues for more
than thirty (30) calendar days after written notice from the
COUNTY Director for the correction thereof, provided that
where such breach cannot be cured within such thirty (30)
day period, FRANCHISEE shall not be in default of this
Agreement if FRANCHISEE shall have commenced such
action required to cure the particular breach within ten
(10) calendar days after such notice, and it continues such
performance diligently until completed.
C. Termination. Upon the occurrence of a material breach, the
COUNTY Board shall have the right to terminate this Agreement
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pursuant to the provisions in article 3 of chapter 6.20 of the
SCC. In the event the FRANCHISEE fails to cure the material
breach specified in a written notice from the COUNTY Director,
then failure to cure may result in a declaration of termination of
this Agreement by COUNTY as provided in SCC section 6.20.260.
D. Force Majeure. The performance of this Agreement may be
discontinued or temporarily suspended in the event of Force
Majeure. FRANCHISEE shall not be deemed to be in default and
shall not be liable for failure to perform under this Agreement if
FRANCHISEE’S performance is prevented or delayed by Force
Majeure. Force Majeure means acts of God including landslides,
lightning, forest fires, storms, floods, freezing and earthquakes,
civil disturbances, strikes, lockouts, or other industrial disturbances, acts of the public enemy, wars, blockades, public
riots, breakage, explosions, or government restraint.
Notwithstanding anything to the contrary herein, the Parties
agree that the settlement of strikes, lockouts or other industrial
disturbances, and litigation, including appeals, shall be entirely within the discretion of FRANCHISEE and FRANCHISEE may
make settlement thereof at such time and on any such terms
and conditions as it may deem to be advisable, and no delay in
making such settlement shall deprive FRANCHISEE of the benefit
of this section.
E. Notice of Termination. The COUNTY Director shall serve written
notice, either personally or by registered or certified mail,
postage prepaid of the termination of a Franchise under this
Agreement to the last place of business of FRANCHISEE and
FRANCHISEE shall cease operation under its Franchise within ten
(10) calendar days.
30. CONDITIONS UPON TERMINATION
A. In the event this Agreement is terminated:
1. FRANCHISEE shall have no right or authority to engage in
Commercial Solid Waste Collection, transportation or
disposal operations in the unincorporated County.
FRANCHISEE acknowledges that this Agreement does not
grant any continuation of service rights under Public
Resources Code section 49520, and that FRANCHISEE
must cease providing the services authorized by this
Agreement upon termination, even if such termination
occurs before the end of the unexpired term of the
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contract or five years, whichever is less, as provided in
section 49520.
2. FRANCHISEE shall, however, remain liable to COUNTY for
any and all Franchise Fees that would otherwise be
payable by FRANCHISEE, for any and all late payment
charges and interest assessed, for any liquidated damages
assessed pursuant to Exhibit C of this Agreement and for
any and all delinquent report charges assessed pursuant to
or article 3 of chapter 6.20 of the SCC.
3. FRANCHISEE shall have a continuing obligation to submit
to COUNTY all reports required by section 31 of this
Agreement that relate to Commercial Solid Waste or
recycling activities performed by FRANCHISEE up to and
including the date of termination.
B. In the event this Agreement is terminated, then, within the time
period specified by the County Board and if directed by the
COUNTY Director, FRANCHISEE shall promptly remove all of
FRANCHISEE’s Commercial Solid Waste containers from all of FRANCHISEE’s collection service locations and shall properly
dispose of all solid waste in such containers.
31. REPORTS
A. FRANCHISEE shall submit quarterly tonnage reports on or before
the first day of the second calendar month immediately following
the reportable quarter and shall be submitted pursuant to SCC
section 6.20.275.A.1 in a format as required by the COUNTY
Director.
B. FRANCHISEE shall submit quarterly Generator data on or before
the 15th day of the first month following the end of the
reportable quarter and shall be submitted in a format as required
by the COUNTY Director.
C. FRANCHISEE shall submit monthly generator compliance data.
COUNTY shall provide FRANCHISEE with the required report
format and due date of such submittal as required by COUNTY
Director pursuant to SCC section 6.20.275.A.3.
D. FRANCHISEE shall submit progress reports on the
implementation of FRANCHISEE’S Diversion Plan as directed by
COUNTY Director pursuant to SCC section 6.20.275.A.4.
E. FRANCHISEE delivering material to solid waste facilities owned
or operated by COUNTY shall submit information pursuant to
SCC section 6.20.275.A.5 for all tons delivered to such facility.
Contract No. 7XXXX
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F. FRANCHISEE shall report quarterly contamination to COUNTY
pursuant to Exhibit A, section 8.
G. FRANCHISEE shall submit monthly revenue reports on or before
the first day of the second month immediately following the
month in which collection services were provided as required in
SCC section 6.20.275.C. COUNTY Director shall provide
FRANCHISEE with the required report format of such submittal.
H. FRANCHISEE shall submit reports by the specified due dates
pursuant to the Franchise Agreement Reporting Schedule,
attached hereto as Attachment 1. The Franchise Agreement
Reporting Schedule is provided for ease of reference. In the
event of any inconsistencies or ambiguities, this Agreement shall
govern over the Franchise Agreement Reporting Schedule.
I. FRANCHISEE agrees that, pursuant to Government Code section
7522.56, FRANCHISEE shall make best efforts to determine if
any of its employees or new hires providing direct services to the
COUNTY are members of the Sacramento County Employees’
Retirement System (SCERS). FRANCHISEE further agrees that it shall make a report bi-annually (due no later than January 31st
and July 31st) to COUNTY with a list of its employees that are
members of SCERS along with the total number of hours worked
during the previous six (6) months. This report shall be
forwarded to where Notice is sent pursuant to section 5 of
Agreement.
32. AUDITS, RECORDS, AND INSPECTION AUTHORITY
A. Upon COUNTY’s request, FRANCHISEE shall promptly provide
access to the COUNTY Director or his/her designees of all
records, accounts or other financial or program information
pertinent to conduct of the business and/or requirements of this
Franchise as COUNTY deems necessary to determine
FRANCHISEE’s compliance with legal and contractual
requirements, including the correctness and accuracy of claims
submitted by FRANCHISEE.
B. FRANCHISEE shall certify that any response provided to the
COUNTY Director or his/her designee, pursuant to this section, is
true, complete and correct.
C. In addition to the requirements in subsections A and B above,
FRANCHISEE shall reimburse audit costs incurred by COUNTY
staff, and any other costs for FRANCHISEE-related services
provided by COUNTY staff or its contractors, in the event of
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Page 17 of 19
significant audit findings including but not limited to, detailed
follow-up audits when staff determines that documentation
reported by FRANCHISEE is inadequate or incomplete. Where
necessary, COUNTY staff will retain the services of an
independent auditor to verify performance and conduct an audit
of FRANCHISEE records.
33. PRIOR AGREEMENTS
This Agreement constitutes the entire contract between COUNTY and
FRANCHISEE regarding the subject matter of this Agreement. Any prior
agreements, whether oral or written, between COUNTY and
FRANCHISEE regarding the subject matter of this Agreement are hereby
terminated effective immediately upon full execution of this Agreement.
34. SEVERABILITY
If any term or condition of this Agreement or the application thereof to
any person(s) or circumstance is held invalid or unenforceable, such
invalidity or unenforceability shall not affect other terms, conditions, or applications which can be given effect without the invalid term,
condition, or application; to this end the terms and conditions of this
Agreement are declared severable.
35. SURVIVAL OF TERMS
All services performed and deliverables provided pursuant to this
Agreement are subject to all of the terms, conditions, price discounts
and rates set forth herein, notwithstanding the expiration of the initial
term of this Agreement or any extension thereof. Further, the terms,
conditions and warranties contained in this Agreement that by their
sense and context are intended to survive the completion of the
performance, cancellation or termination of this Agreement shall so
survive.
36. AUTHORITY TO EXECUTE
Each person executing this Agreement represents and warrants that he
or she is duly authorized and has legal authority to execute and deliver
this Agreement for or on behalf of the parties to this Agreement. Each
party represents and warrants to the other that the execution and
delivery of the Agreement and the performance of such party's
obligations hereunder have been duly authorized.
37. DUPLICATE COUNTERPARTS
This Agreement may be executed in counterparts. The Agreement shall
be deemed executed when it has been signed by both parties.
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Signatures scanned and transmitted electronically shall be deemed
original signatures for purposes of this Agreement, with such scanned
signatures having the same legal effect as original signatures. This
Agreement may be executed through the use of an electronic signature
and will be binding on each party as if it were physically executed.
(SIGNATURE PAGE FOLLOWS)
Contract No. 7XXXX
Page 19 of 19
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the day and year first written above.
COUNTY OF SACRAMENTO, a
political subdivision of the State of
California
Business Name, Business Type
By:
Name:
Title:
“COUNTY”
Date:
By:
Name:
Title:
“FRANCHISEE”
Date:
Agreement approved by
Board of Supervisors:
Agenda Date:
Item Number:
Resolution No:
THIS AGREEMENT FORMAT HAS BEEN APPROVED BY COUNTY COUNSEL
Prepared by: _________________________________________
Richard Shaw, Senior Contract Services Officer Department of General Services
Contract & Purchasing Services Division
Phone: (916) 876-6373
Contract No. 7XXXX
Exhibit A Page 1 of 9
EXHIBIT A to Agreement
SCOPE OF SERVICES
1. DEFINITIONS
For the purposes of this Agreement, all terms used shall have the
same meaning as those defined in SCC section 6.20.030.
2. CUSTOMER SERVICE AGREEMENTS
A. FRANCHISEE shall enter into customer service agreements with
Generators consistent with SCC section 6.20.340.
B. FRANCHISEE shall submit its then-current customer service
agreement template to COUNTY on an annual basis (due no later
than July 31), and within thirty (30) days of the effective date of any template change.
3. OWNERSHIP OF WASTE MATERIAL
COUNTY does not gain any ownership, control, or right to possess
Waste Material collected by FRANCHISEE pursuant to this Agreement.
Subject to the provisions of this Agreement, FRANCHISEE shall have
the right to retain any benefit resulting from its right to retain, recycle,
process, dispose of, or use the Commercial Waste Material that it
collects. As described in SCC sections 6.20.160 and 6.20.440, all such
Waste Material shall become the property of FRANCHISEE upon its
deposit in containers provided by FRANCHISEE.
4. DISPOSAL AND DIVERSION OF COMMERCIALLY GENERATED
WASTE MATERIAL
FRANCHISEE shall dispose of Commercial Solid Waste collected or
transported by FRANCHISEE only by taking such Commercial Solid
Waste to a landfill or transfer station lawfully authorized to accept such
solid waste. FRANCHISEE shall divert Recyclable Material and Organic
Material at facilities legally permitted to process Source Separated
Recyclable Material and Organic Material. FRANCHISEE shall not
dispose of Commercial Waste Material by depositing it on any land,
whether public or private, or in any river, stream or other waterway,
or in any sanitary sewer or storm drainage system.
5. DIVERSION PROGRAMS
A. Source Separated Recyclable Material and Organic Material:
FRANCHISEE is required to divert from landfilling Source
Separated Recyclable Material and Organic Material collected and
removed by it within the unincorporated County, in accordance
with SCC chapter 6.20. Failure to meet the diversion
Contract No. 7XXXX
Exhibit A Page 2 of 9
requirement will subject FRANCHISEE to the Recycling Shortfall
Penalty provided in SCC section 6.20.777. FRANCHISEE shall
not landfill Source Separated Recyclable Material and Organic
Material without notifying the COUNTY as described in section 32
of this Agreement.
B. Construction and Demolition Debris: When FRANCHISEE
provides commercial Waste Material collection services for a
project subject to article 6 of chapter 6.20 of the SCC,
FRANCHISEE shall assist their Generators in complying with said
article.
Diversion credit from mixed construction and demolition debris
for compliance with mandates will only be recognized if
FRANCHISEE delivers mixed C&D debris to a COUNTY-Certified
C&D Sorting Facility.
C. Low-density Population Areas: Waste Material collected in low-
density areas depicted in Attachment 2 will be excluded from
calculation of the diversion requirement established pursuant to
subsection A above.
6. COLLECTION EQUIPMENT
A. Any and all vehicles used by FRANCHISEE to perform commercial
Waste Material collection services shall meet the vehicle
inspection, tag and covered load requirements of SCC section
6.20.330.
B. FRANCHISEE shall submit a Commercial Solid Waste Vehicle
Inventory Form of FRANCHISEE’s vehicles, as required in SCC
section 6.20.245, which shall include but not be limited to,
vehicle number, year, make, model, capacity, and vehicle
identification number (VIN). FRANCHISEE is required to submit
its Commercial Solid Waste Vehicle Inventory Form annually as
part of its FRANCHISEE Application for COUNTY Franchise.
FRANCHISEE’S Commercial Solid Waste Vehicle Inventory Form
shall be approved by the COUNTY.
C. FRANCHISEE shall maintain a current list of its vehicles and shall
submit to COUNTY Director an amended FRANCHISEE
Commercial Solid Waste Vehicle Inventory Form, upon request of
COUNTY, if such changes occur throughout the term of the
Agreement, as required in SCC section 6.20.255, prior to
commencing the provision of services under this Agreement.
Contract No. 7XXXX
Exhibit A Page 3 of 9
7. FRANCHISEE PROVIDED WASTE MATERIAL CONTAINERS
A. General. Each Generator shall be provided Solid Waste,
Recyclable Material, and Organic Material services. This
provision of three or more containers shall comply with the
collection container requirements specified in chapter 6.20 of the
SCC. FRANCHISEE is responsible for ensuring Generator
compliance with this requirement, and use of proper facilities for
collected material. This requirement does not apply to a
Generator’s temporary service.
B. Source Separated Recyclable Materials Collection (Recycling
Container): FRANCHISEE shall provide Recycling Containers to
Generators for collection of Source Separated Recyclable Materials and shall provide Source Separated Recyclable
Materials collection service, as described below. FRANCHISEE
shall transport the Source Separated Recyclable Materials to a
Recyclable Materials Processing Facility.
Source Separated Recyclable Materials that are mandated to be
accepted for collection in the Source Separated Recyclable
Materials commercial collection program include the following:
Mandatory Commercial Recycling Material
Aluminum Containers
Glass Containers
Plastics #1 and #2
Tin and Bi-Metal Containers
Mixed Paper
Cardboard
C. Source Separated Organic Material (Organics Container):
FRANCHISEE shall provide Organics Containers to Generators for
collection of Organic Material and shall provide Organic Material
collection service.
FRANCHISEE shall transport Organic Material to an Organic
Material Processing Facility, or a Transfer Facility for Transfer
and Transport to an Organic Material Processing Facility.
Contract No. 7XXXX
Exhibit A Page 4 of 9
Organic Materials that are mandatory to be accepted for
collection in the commercial collection program include the
following:
Mandatory Commercial Organic Material
Food Waste
Food Soiled Paper
Green Waste
Compostable Plastic Bags*
Clear Plastic Bags**
*Compostable plastic bag material must meet ASTM D6400
sections 5.1 through 6.4.2 standard for compostability as published
May, 2019.
** Clear Plastic Bags shall only be acceptable when used for the
collection and bagging of Organic Material for placement in the
Organics Material collection container.
D. Commercial Solid Waste Collection (Solid Waste Container):
FRANCHISEE shall provide Solid Waste Containers to Generators
for collection of Solid Waste, and shall provide Solid Waste
collection service. FRANCHISEE shall transport the Solid Waste
to a Disposal Facility or a Transfer Facility for Transfer and
Transport to a Disposal Facility.
E. FRANCHISEE shall provide containers used for storage of Waste
Materials that meet the following requirements:
1. FRANCHISEE shall place a label on the body or lid of each
new container that includes language or graphic images, or
both, that indicate the primary materials accepted and the
primary materials prohibited in that container.
2. Container must be clearly identified, with the name, or
recognizable corporate or company logo, and phone
number of the Franchisee that is legible from a distance of
fifty (50) feet.
3. Be adequately sized and serviced with adequate frequency
to meet the Waste Material generation needs of the
Contract No. 7XXXX
Exhibit A Page 5 of 9
business and requirements set forth in chapter 6.20 of the
SCC.
4. Be designed and constructed to be watertight to prevent
the leakage of liquids.
5. Be equipped with lids which are to be kept closed, and
shall be placed in a way that does not prevent the lid from
being closed.
6. Containers shall be equipped with functioning locking bars
or a locking mechanism.
7. Be kept free of graffiti.
8. Be replaced, cleaned or repainted as needed so as to
present a clean appearance.
9. No later than January 1, 2036, FRANCHISEE shall provide all Generators with collection containers that comply with
the container color requirements specified in in section
18982 of title 14 of the CCR. If an existing container
breaks or is otherwise rendered non-functional,
FRANCHISEE shall replace the non-functional container
with a container that complies with the color requirements.
F. COUNTY Director or designee may require special container
equipment, and/or container labeling with customer identifying
information.
G. Violations of the conditions of this section may become the basis
for enforcement actions and may be deemed by COUNTY to be a
material breach of this Agreement, which shall subject the
FRANCHISEE to payment of liquidated damages pursuant to
Exhibit C of this Agreement.
8. CONTAMINATION MONITORING, RECORDKEEPING, AND
REPORTING
FRANCHISEE shall implement a contamination monitoring, record
keeping, and reporting program. This requirement does not apply to a
Generator’s temporary service.
A. Contamination Monitoring. FRANCHISEE shall conduct a route
review for prohibited container contaminants in Waste Material
containers in a manner that results in all routes being reviewed
annually. Waste Material containers may be randomly selected
along a hauler route.
Contract No. 7XXXX
Exhibit A Page 6 of 9
1. Upon finding prohibited container contaminants in a Waste
Material container, the FRANCHISEE, shall notify the
Generator of the violation. The notice shall, at a minimum,
include information regarding the Generator’s requirement
to properly separate materials into the appropriate Waste
Material containers and may include photographic evidence
of the violation. The notice may be left on the Generator’s
Waste Material container, gate, or door at the time the
violation occurs, and must be mailed, e-mailed, or
electronically messaged to the Generator.
2. If a FRANCHISEE observes excessive prohibited container
contaminants in a Generator’s Waste Material collection
container(s), it may dispose of the container’s contents.
B. Route Review Contamination Recordkeeping and Reporting.
FRANCHISEE shall conduct route reviews and submit reports
related to the contamination monitoring program that includes,
but is not limited to, the following required fields.
Quarterly documentation of all route reviews conducted shall
include, but is not be limited to:
1. Generator name
2. Generator site address
3. Generator account number
4. Generator contamination found
5. Copy of all contamination notices issued
6. Container contents disposed
On an annual basis, FRANCHISEE shall submit an Initial Route Review
Plan that includes, but is not limited to:
1. A list of routes, associated route numbers, and number of
stops per route.
2. A description of the methodology for conducting route
reviews.
3. A copy of the proposed contamination notice template.
Contract No. 7XXXX
Exhibit A Page 7 of 9
All contamination monitoring documentation shall be submitted to
COUNTY in a format as directed by COUNTY Director and made part
of COUNTY’s implementation record upon COUNTY request.
9. ABANDONED CONTAINERS
A. If FRANCHISEE abandons any container used to provide
commercial Waste Material collection services under the
Agreement, COUNTY may remove the container and/or dispose
of the contents of the container.
B. If COUNTY removes a container abandoned by FRANCHISEE
and/or disposes of the contents of any container abandoned by
FRANCHISEE, COUNTY may charge FRANCHISEE for COUNTY’s
costs incurred in such removal/disposal and for COUNTY’s costs
of storage of the container. FRANCHISEE shall reimburse
COUNTY for such costs within ten (10) days of the date of
COUNTY’s invoice for such costs.
C. For the purposes of this section, “abandoned” includes:
1. FRANCHISEE’s failure to remove the container within the
time period specified by the COUNTY Board upon
termination of the Agreement pursuant to SCC section
6.20.260;
2. FRANCHISEE’s failure to remove the container within a
reasonable period after the expiration of this Agreement,
except in the case where FRANCHISEE has been granted a
term extension under this Agreement or FRANCHISEE has
been granted a subsequent franchise authorizing
FRANCHISEE to collect and transport the type or types of
solid waste for which the container was used pursuant to
this Agreement.
3. FRANCHISEE’s failure to dispose of the contents of the
container within five (5) days after COUNTY issues written
notice to FRANCHISEE to dispose of the contents.
10. PERSONNEL
A. Driver Qualifications. FRANCHISEE agrees that all drivers shall
be trained and qualified in the operation of collection vehicles
and must have in effect a valid license, of the appropriate class,
issued by the California Department of Motor Vehicles.
Contract No. 7XXXX
Exhibit A Page 8 of 9
B. Safety Training. FRANCHISEE shall provide suitable operational
and safety training for all of its employees who utilize or operate
vehicles or equipment for collection of solid waste, or who are
otherwise directly involved in such collection.
11. EDUCATION AND OUTREACH
A. FRANCHISEE shall assist COUNTY in educational and outreach
activities to promote diversion of Recyclable Material and
Organic Material.
B. FRANCHISEE shall provide outreach and education campaigns
pursuant to Exhibit A, section 12 below.
12. DIVERSION PLAN FRANCHISEE shall submit a Diversion Plan annually to COUNTY as part
of its FRANCHISEE Application for COUNTY Franchise. The Diversion
Plan shall be approved by the COUNTY and incorporated into the
Agreement as Attachment 3. The Diversion Plan shall contain at
minimum:
A. A methodology for how FRANCHISEE will meet the COUNTY
diversion requirement.
B. A compliance plan that describes the proposed methodology for
identifying Generators required to have Source Separated
Recycling and Organic Material services, proposed methodology
for tracking compliant/noncompliant Generators, and proposed
efforts for increasing subscription levels for required services.
C. A description of FRANCHISEE’S contamination reduction
program, as described in Exhibit A, section 8 of this Agreement.
D. A description of a minimum of three (3) outreach and education
campaigns including quantifiable goals for each campaign.
1. At least one annual campaign will be directed at all
Generators covered under each State mandate and will
inform the Generators about the State Mandatory
Commercial Recycling Law (Assembly Bill 341, Chapter
476, Statutes of 2011), the State Mandatory Commercial
Organics Recycling Law (Assembly Bill 1826, Chapter 727,
Statutes of 2014), the State Mandatory Short-Lived
Climate Pollutants: Organic Waste Reduction Law (Senate
Bill 1383, Chapter 395, Statutes of 2016), applicable
implementing regulations promulgated by CalRecycle,
Contract No. 7XXXX
Exhibit A Page 9 of 9
applicable County requirements, and how to comply with
each Law.
2. At least one campaign will be specifically directed at
Generators that are not in compliance with either AB 341,
and/or AB 1826, and/or SB 1383, and will inform them of
their requirements and how they can comply with these
laws;
3. One campaign will be at the choice of FRANCHISEE.
E. A description of FRANCHISEE’S recordkeeping and reporting
systems and how it will accurately meet CalRecycle mandatory
reporting requirements under the laws identified in subsection
D.1 above.
F. FRANCHISEE shall further submit a Diversion Plan annually to
COUNTY by July 1 each year according to sections A-E above.
13. GENERATOR WAIVER PROGRAM
A. COUNTY shall grant all Generator recycling and organic recycling
waivers.
B. Waiver applications must be submitted by the Generator on a
form provided by the COUNTY Director.
C. FRANCHISEE may assist the Generator with completing the
waiver application, but is prohibited from submitting a waiver on
the Generator’s behalf.
D. COUNTY shall provide FRANCHISEE with an updated listing of
waivers approved by COUNTY, including the Generator s’ names,
mailing address, service address, and type of waiver.
14. RESTRICTED COLLECTION HOURS IN CERTAIN LOCATIONS
COUNTY Director may designate areas where FRANCHISEE shall not
collect commercial Waste Materials during specific times. Attachment
4 to this Agreement identifies such designated area. Failure to comply
with this provision will subject FRANCHISEE to liquidated damages
identified in Exhibit C, section 3.
Contract No. 7XXXX
Exhibit B Page 1 of 4
EXHIBIT B to Agreement
COUNTY OF SACRAMENTO INSURANCE REQUIREMENTS
Without limiting FRANCHISEE'S indemnification, FRANCHISEE shall procure
and maintain for the duration of the Agreement, insurance against claims for
injuries to persons or damages to property which may arise from or in
connection with the performance of the Agreement by FRANCHISEE, its
agents, representatives or employees. COUNTY shall retain the right at any
time to review the coverage, form, and amount of the insurance required
hereby. If in the opinion of COUNTY Risk Manager, insurance provisions in
these requirements do not provide adequate protection for COUNTY and for members of the public, COUNTY may require FRANCHISEE to obtain insurance
sufficient in coverage, form and amount to provide adequate protection. Any
claim by FRANCHISEE that COUNTY’s insurance changes result in higher costs
will be subject to review and approval by COUNTY, whose approval will not be
unreasonably withheld. COUNTY'S requirements shall be reasonable but shall be imposed to assure protection from and against the kind and extent of risks
that exist at the time a change in insurance is required.
1. Verification of Coverage
FRANCHISEE shall furnish COUNTY with certificates evidencing coverage
required below. Copies of required endorsements must be attached
to the certificates provided. COUNTY Risk Manager may approve self-
insurance programs in lieu of required policies of insurance if, in the
opinion of the Risk Manager, the interests of COUNTY and general public
are adequately protected. All certificates, evidences of self-insurance,
and additional insured endorsements are to be received and approved by
COUNTY before performance commences. COUNTY reserves the right to
require that FRANCHISEE provide copies of any policy of insurance
including endorsements offered in compliance with these specifications.
2. Minimum Scope of Insurance
Coverage shall be at least as broad as:
GENERAL LIABILITY: Insurance Services Office’s Commercial General
Liability occurrence coverage form CG 0001. Including, but not limited to
Premises/Operations, Products/Completed Operations, Contractual, and
Personal & Advertising Injury, without additional exclusions or limitations,
unless approved by COUNTY Risk Manager.
AUTOMOBILE LIABILITY: Insurance Services Office’s Commercial
Automobile Liability coverage form CA 00 01. Commercial Automobile
Contract No. 7XXXX
Exhibit B Page 2 of 4
Liability: auto coverage symbol “1” (any auto) for corporate/business
owned vehicles. If there are no owned or leased vehicles, symbols 8 and
9 for non-owned and hired autos shall apply. Personal Lines automobile
insurance shall apply if vehicles are individually owned.
WORKERS’ COMPENSATION: Statutory requirements of the State of
California and Employer's Liability Insurance.
UMBRELLA or Excess Liability policies are acceptable where the need for
higher liability limits is noted in the Minimum Limits of Insurance and shall
provide liability coverages that at least follow form over the underlying
insurance requirements where necessary for Commercial General
Liability, Commercial Automobile Liability, Employers’ Liability, and any other liability coverage (other than Professional Liability) designated
under the Minimum Scope of Insurance.
3. Minimum Limits of Insurance
FRANCHISEE shall maintain limits no less than:
General Liability shall be on an Occurrence basis (as opposed to Claims
Made basis). Minimum limits and structure shall be:
General Aggregate: $2,000,000
Products Comp/Op Aggregate: $2,000,000
Personal & Adv. Injury: $1,000,000
Each Occurrence: $2,000,000
Fire Damage: $ 100,000
Automobile Liability:
A. Commercial Automobile Liability for Corporate/business owned
vehicles including non-owned and hired, $2,000,000 Combined Single Limit.
B. Personal Lines Automobile Liability for Individually owned vehicles,
$250,000 per person, $500,000 each accident, $100,000 property
damage.
Workers' Compensation: Statutory.
Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Deductibles and Self-Insured Retention
Any deductible or self-insured retention that apply to any insurance
required by this Agreement must be declared and approved by COUNTY.
Contract No. 7XXXX
Exhibit B Page 3 of 4
5. Other Insurance Provisions
The insurance policies required in this Agreement are to contain, or be
endorsed to contain, as applicable, the following provisions:
6. All Policies:
a. ACCEPTABILITY OF INSURERS: Insurance is to be placed with
insurers with a current A.M. Best's rating of no less than A-: VII.
COUNTY Risk Manager may waive or alter this requirement, or accept
self-insurance in lieu of any required policy of insurance if, in the
opinion of the Risk Manager, the interests of COUNTY and the general
public are adequately protected.
b. MAINTENANCE OF INSURANCE COVERAGE: FRANCHISEE shall
maintain all insurance coverages and limits in place at all times and
provide COUNTY with evidence of each policy's renewal ten (10) days
in advance of its anniversary date.
FRANCHISEE is required by this Agreement to immediately notify
COUNTY if they receive a communication from their insurance carrier
or agent that any required insurance is to be canceled, non-renewed,
reduced in scope or limits or otherwise materially changed.
FRANCHISEE shall provide evidence that such cancelled or non-
renewed or otherwise materially changed insurance has been
replaced or its cancellation notice withdrawn without any interruption
in coverage, scope or limits. Failure to maintain required insurance
in force shall be considered a material breach of the Agreement.
7. Commercial General Liability and/or Commercial Automobile
Liability:
a. ADDITIONAL INSURED STATUS: COUNTY, its officers, directors,
officials, employees, and volunteers are to be endorsed as additional
insureds as respects: liability arising out of activities performed by
or on behalf of FRANCHISEE; products and completed operations of
FRANCHISEE; premises owned, occupied or used by FRANCHISEE; or
automobiles owned, leased, hired or borrowed by FRANCHISEE. The
coverage shall contain no endorsed limitations on the scope of
protection afforded to COUNTY, its officers, directors, officials,
employees, or volunteers.
b. PRIMARY INSURANCE: For any claims related to this agreement,
FRANCHISEE'S insurance coverage shall be endorsed to be primary
insurance as respect to COUNTY, its officers, officials, employees and
volunteers. Any insurance or self-insurance maintained by COUNTY,
Contract No. 7XXXX
Exhibit B Page 4 of 4
its officers, directors, officials, employees, or volunteers shall be
excess of FRANCHISEE'S insurance and shall not contribute with it.
c. SEVERABILITY OF INTEREST: FRANCHISEE'S insurance shall apply
separately to each insured against whom claim is made or suit is
brought, except with respect to the limits of the insurer's liability.
d. SUBCONTRACTORS: FRANCHISEE shall be responsible for the acts
and omissions of all its subcontractors and additional insured
endorsements as provided by FRANCHISEE’S subcontractor.
8. Workers’ Compensation:
WORKERS’ COMPENSATION WAIVER OF SUBROGATION: The workers' compensation policy required hereunder shall be endorsed to state that
the workers' compensation carrier waives its right of subrogation against
COUNTY, its officers, directors, officials, employees, agents or volunteers,
which might arise by reason of payment under such policy in connection
with performance under this Agreement by FRANCHISEE. Should FRANCHISEE be self-insured for workers' compensation, FRANCHISEE
hereby agrees to waive its right of subrogation against COUNTY, its
officers, directors, officials, employees, agents or volunteers.
9. Notification of Claim
If any claim for damages is filed with FRANCHISEE or if any lawsuit is
instituted against FRANCHISEE, that arise out of or are in any way
connected with FRANCHISEE’S performance under this Agreement and
that in any way, directly or indirectly, contingently or otherwise, affect
or might reasonably affect COUNTY, FRANCHISEE shall give prompt and
timely notice thereof to COUNTY. Notice shall be prompt and timely if
given within thirty (30) days following the date of receipt of a claim or
ten (10) days following the date of service of process of a lawsuit.
Contract No. 7XXXX
Exhibit C Page 1 of 3
EXHIBIT C to Agreement
COMPENSATION
1. FRANCHISE FEES
A. During the term of the Agreement, FRANCHISEE shall pay to
COUNTY Franchise Fees. Such fees shall be in the amount
established for commercial solid waste services as set forth by
resolution of the COUNTY Board, currently set at 10% of
FRANCHISEE’s gross collection revenue pursuant to the Fee and
Penalty Schedule attached hereto as Attachment 5.
B. Franchise Fees shall not be paid by FRANCHISEE for revenues received from federal, state and local governments, including
school districts.
C. FRANCHISEE shall pay Franchise Fees on all Solid Waste
collected within the unincorporated County pursuant to this
Agreement regardless of the method of disposal or handling.
D. FRANCHISEE may be required by COUNTY to pay the minimum
annual franchise fee amount set forth in Attachment 5, as set
forth in SCC section 2.60.265(H).
E. For calculation of gross collection revenue and calculation of
franchise fees, FRANCHISEE may deduct collection revenues for
Source-Separated Recyclable Material and Organic Material,
provided those materials are diverted from disposal.
2. FRANCHISE FEE PAYMENT
A. FRANCHISEE shall pay Franchise Fees to COUNTY pursuant to
article 3 of chapter 6.20 of the SCC.
B. FRANCHISEE shall pay all required Franchise Fees to:
Department of Waste Management & Recycling
Attention: Administration & Finance
10863 Gold Center Drive
Rancho Cordova, CA 95670
C. If FRANCHISEE remits Franchise Fees by personal delivery to
COUNTY, such Franchise Fees shall be deemed timely paid only if
delivered on or before the due date. If FRANCHISEE remits
Franchise Fees by mail or other delivery service, such Franchise
Fees shall be deemed timely only if: (1) the envelope containing
Contract No. 7XXXX
Exhibit C Page 2 of 3
the Franchise Fee payment bears a postmark or receipt showing
that the payment was mailed or sent on or before the due date
or (2) FRANCHISEE submits proof satisfactory to COUNTY
Director that the Franchise Fee payment was in fact deposited in
the mail or sent on or before said due date.
D. In the event FRANCHISEE believes that it has paid Franchise
Fees in excess of the amounts due to COUNTY, FRANCHISEE
may submit a request for refund to COUNTY Director on a form
provided by said COUNTY Director. If proof of overpayment is
satisfactory to COUNTY Director, COUNTY Director shall refund to
FRANCHISEE any overpayment on FRANCHISEE’s subsequent
monthly invoice. FRANCHISEE shall not apply any overpayment
as a credit against any Recycling Shortfall Penalty, Franchise
Fees or other amounts payable to unless specifically so
authorized by the COUNTY Director in writing.
3. LIQUIDATED DAMAGES
Failure of FRANCHISEE to provide Waste Material collection containers
and services as required by this Agreement will be subject to the
assessment of liquidated damages pursuant to the following schedule:
FAILURE(s) Amount Cure
Period
SCC section
Non-lockable containers /
Non-functional lock bars
$150/service
address/failure
2
Business
Days
6.20.225 (D)
Containers with missing lid $150/service
address/failure
2
Business
Days
6.20.225 (D)
Containers with graffiti $150/service
address/failure
2
Business
Days
6.20.230 (A)
Containers with missing
labels
$150/service
address/failure
2
Business
Days
6.20.230 (A)
Containers overflowing,
leaking, spilling
$250/service
address/failure
48
hours
6.20.225 (B)
Use of collection vehicle(s)
without required County
inspection
$150/vehicle N/A 6.20.165
Contract No. 7XXXX
Exhibit C Page 3 of 3
Verified collection outside
of restricted collection
hours (Exhibit A, section
14)
$150/incident
N/A 6.20.225 (G)
Unsecured materials in
collection vehicles
$150/incident N/A 6.20.170
Provision of non-compliant
service
$5/day/account N/A 6.20.225 (B)
Eff. 4/1/22
Non-removal of any
container within the 30-day
period following the
customer service
agreement termination
date
$100 / day /
customer
Until
removed
6.20.260 (F)
A. If any of the failures identified above are brought to the attention
of COUNTY, COUNTY shall notify FRANCHISEE in writing of such
failure, including the associated liquidated damages amount and
the SCC section being violated, and provide FRANCHISEE with an opportunity to correct said failure within the cure period specified
above. Proof of corrective action must be provided to COUNTY in
writing by FRANCHISEE within the time period specified in the
notice.
B. If proof of corrective action is not provided by FRANCHISEE within the time period specified in the notice, COUNTY shall
immediately assess the liquidated damage amount according to
the schedule above by preparing an invoice to FRANCHISEE for
such amounts, which invoice FRANCHISEE shall promptly pay as
part of FRANCHISEE’s next monthly payment to COUNTY.
C. Continued failure to take any corrective action stated in the
notice shall be deemed a material breach of this Agreement, and
may constitute grounds for termination pursuant to section 29
(C).
D. COUNTY Director’s decision on the assessment of liquidated
damages shall be final. Any disputes arising from this section
shall be resolved pursuant to section 28.
4. LATE FEES AND PENALTIES
FRANCHISEE shall pay late fees and penalties to COUNTY pursuant to
Attachment 5.
County Franchise Application- Attachment 2
Page 1 of 4 Annual Diversion Plan
Rev_03/17/2021
ANNUAL DIVERSION PLAN REQUIREMENTS
Please complete the following annual diversion plan, detailing your compliance with requirements as provided
in Exhibit A, section 12 of the Franchise Agreement.
1. Describe the methodology to meeting the County’s diversion requirements.
2.Provide a description of the following related to AB 341, AB 1826, and SB 1383 requirements for
covered generators:
a.Proposed methodology for identifying covered generators.
b.Proposed methodology for tracking compliant and noncompliant covered generators.
Applicant Name:
IMPORTANT: Non-Exclusive Commercial Solid Waste Collection Franchise Applicants who provide only
Roll-Off bin service are not required to complete sections 2 – 5 of the Annual Diversion Plan.
Does the applicant business provide only roll-off service? Yes No
If yes, sections 2-5 are not required. You may save this Annual Diversion Plan and submit as an
attachment to your application.
If no, please continue with sections 2 – 5 of this Annual Diversion Plan before saving and submitting as an
attachment to your application.
County Franchise Application- Attachment 2
Page 2 of 4 Annual Diversion Plan
Rev_03/17/2021
c.Proposed efforts for increasing required subscription levels.
3. Provide a description of your Franchisee’s contamination reduction program, as described in section 8.
4.Complete details for your Franchisee’s three education and outreach campaigns:
a.Campaign #1 – Directed to all covered generators of AB 341, AB 1826 and SB 1383. If efforts
for each law are different, please specify.
i.Please attach examples of all education and outreach material for covered generators.
ii.Please provide examples of all education and outreach material for multifamily property
covered generators.
iii. Please attach examples of all signage you will provide to customers for outdoor solid
waste, recyclable material carts, organic recyclable material carts, bins, and roll-off
containers. Please explain how these signs will be attached to carts, bins, and roll off
containers.
County Franchise Application- Attachment 2
Page 3 of 4 Annual Diversion Plan
Rev_03/17/2021
iv.Please attach examples of all signage you will provide to customers for indoor garbage,
recyclable material carts, organic recyclable material carts, and bins. Please explain how
signage will be made available to customers, i.e., online and/or printed? Free or for a
fee?
b.Campaign #2 – Directed to all non-compliant covered generators of AB 341, AB 1826, and SB
1383. If efforts for each law are different, please specify.
i.Please provide information on your steps to follow-up with noncompliant businesses.
ii.Please provide information on your steps to follow-up with noncompliant multifamily
residential properties.
County Franchise Application- Attachment 2
Page 4 of 4 Annual Diversion Plan
Rev_03/17/2021
c.Campaign #3 –Franchisee’s choice
i.Please provide details about any additional education and outreach campaign(s) of your
choice.
5.Provide a description of the Franchisee’s recordkeeping and reporting systems and how it will
accurately meet CalRecycle mandatory reporting requirements under AB 341, AB 1826, and SB 1383.
County Franchise Application- Attachment 4
COUNTY OF SACRAMENTO
INSURANCE REQUIREMENTS
Without limiting FRANCHISEE'S indemnification, FRANCHISEE shall procure and maintain for
the duration of the Agreement, insurance against claims for injuries to persons or damages to
property which may arise from or in connection with the performance of the Agreement by
FRANCHISEE, its agents, representatives or employees. COUNTY shall retain the right at any
time to review the coverage, form, and amount of the insurance required hereby. If in the opinion
of COUNTY Risk Manager, insurance provisions in these requirements do not provide adequate
protection for COUNTY and for members of the public, COUNTY may require FRANCHISEE to
obtain insurance sufficient in coverage, form and amount to provide adequate protection. Any
claim by FRANCHISEE that COUNTY’s insurance changes result in higher costs will be subject
to review and approval by COUNTY, whose approval will not be unreasonably withheld.
COUNTY'S requirements shall be reasonable but shall be imposed to assure protection from and
against the kind and extent of risks that exist at the time a change in insurance is required.
1. Verification of Coverage
FRANCHISEE shall furnish COUNTY with certificates evidencing coverage required below.
Copies of required endorsements must be attached to the certificates provided.
COUNTY Risk Manager may approve self-insurance programs in lieu of required policies of
insurance if, in the opinion of the Risk Manager, the interests of COUNTY and general public
are adequately protected. All certificates, evidences of self-insurance, and additional
insured endorsements are to be received and approved by COUNTY before performance
commences. COUNTY reserves the right to require that FRANCHISEE provide copies of
any policy of insurance including endorsements offered in compliance with these
specifications.
2. Minimum Scope of Insurance
Coverage shall be at least as broad as:
GENERAL LIABILITY: Insurance Services Office’s Commercial General Liability
occurrence coverage form CG 0001. Including, but not limited to Premises/Operations,
Products/Completed Operations, Contractual, and Personal & Advertising Injury, without
additional exclusions or limitations, unless approved by COUNTY Risk Manager.
AUTOMOBILE LIABILITY: Insurance Services Office’s Commercial Automobile Liability
coverage form CA 00 01. Commercial Automobile Liability: auto coverage symbol “1” (any
auto) for corporate/business owned vehicles. If there are no owned or leased vehicles,
symbols 8 and 9 for non-owned and hired autos shall apply. Personal Lines automobile
insurance shall apply if vehicles are individually owned.
WORKERS’ COMPENSATION: Statutory requirements of the State of California and
Employer's Liability Insurance.
UMBRELLA or Excess Liability policies are acceptable where the need for higher liability
limits is noted in the Minimum Limits of Insurance and shall provide liability coverages that
at least follow form over the underlying insurance requirements where necessary for
Commercial General Liability, Commercial Automobile Liability, Employers’ Liability, and
any other liability coverage (other than Professional Liability) designated under the Minimum
Scope of Insurance.
County Franchise Application- Attachment 4
3. Minimum Limits of Insurance
FRANCHISEE shall maintain limits no less than:
General Liability shall be on an Occurrence basis (as opposed to Claims Made basis).
Minimum limits and structure shall be:
General Aggregate: $2,000,000
Products Comp/Op Aggregate: $2,000,000
Personal & Adv. Injury: $1,000,000
Each Occurrence: $2,000,000
Fire Damage: $ 100,000
Automobile Liability:
A. Commercial Automobile Liability for Corporate/business owned vehicles including
non-owned and hired, $2,000,000 Combined Single Limit.
B. Personal Lines Automobile Liability for Individually owned vehicles, $250,000 per
person, $500,000 each accident, $100,000 property damage.
Workers' Compensation: Statutory.
Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Deductibles and Self-Insured Retention
Any deductible or self-insured retention that apply to any insurance required by this
Agreement must be declared and approved by COUNTY.
5. Other Insurance Provisions
The insurance policies required in this Agreement are to contain, or be endorsed to contain,
as applicable, the following provisions:
6. All Policies:
a. ACCEPTABILITY OF INSURERS: Insurance is to be placed with insurers with a
current A.M. Best's rating of no less than A-: VII. COUNTY Risk Manager may waive
or alter this requirement, or accept self-insurance in lieu of any required policy of
insurance if, in the opinion of the Risk Manager, the interests of COUNTY and the
general public are adequately protected.
b. MAINTENANCE OF INSURANCE COVERAGE: FRANCHISEE shall maintain all
insurance coverages and limits in place at all times and provide COUNTY with
evidence of each policy's renewal ten (10) days in advance of its anniversary date.
FRANCHISEE is required by this Agreement to immediately notify COUNTY if they
receive a communication from their insurance carrier or agent that any required
insurance is to be canceled, non-renewed, reduced in scope or limits or otherwise
materially changed. FRANCHISEE shall provide evidence that such cancelled or non-
renewed or otherwise materially changed insurance has been replaced or its
cancellation notice withdrawn without any interruption in coverage, scope or
limits. Failure to maintain required insurance in force shall be considered a material
breach of the Agreement.
County Franchise Application- Attachment 4
7. Commercial General Liability and/or Commercial Automobile Liability:
a. ADDITIONAL INSURED STATUS: COUNTY, its officers, directors, officials,
employees, and volunteers are to be endorsed as additional insureds as respects:
liability arising out of activities performed by or on behalf of FRANCHISEE; products
and completed operations of FRANCHISEE; premises owned, occupied or used by
FRANCHISEE; or automobiles owned, leased, hired or borrowed by FRANCHISEE.
The coverage shall contain no endorsed limitations on the scope of protection afforded
to COUNTY, its officers, directors, officials, employees, or volunteers.
b. PRIMARY INSURANCE: For any claims related to this agreement, FRANCHISEE'S
insurance coverage shall be endorsed to be primary insurance as respect to COUNTY,
its officers, officials, employees and volunteers. Any insurance or self-insurance
maintained by COUNTY, its officers, directors, officials, employees, or volunteers shall
be excess of FRANCHISEE'S insurance and shall not contribute with it.
c. SEVERABILITY OF INTEREST: FRANCHISEE'S insurance shall apply separately to
each insured against whom claim is made or suit is brought, except with respect to the
limits of the insurer's liability.
d. SUBCONTRACTORS: FRANCHISEE shall be responsible for the acts and omissions
of all its subcontractors and additional insured endorsements as provided by
FRANCHISEE’S subcontractor.
8. Workers’ Compensation:
WORKERS’ COMPENSATION WAIVER OF SUBROGATION: The workers' compensation
policy required hereunder shall be endorsed to state that the workers' compensation carrier
waives its right of subrogation against COUNTY, its officers, directors, officials, employees,
agents or volunteers, which might arise by reason of payment under such policy in
connection with performance under this Agreement by FRANCHISEE. Should
FRANCHISEE be self-insured for workers' compensation, FRANCHISEE hereby agrees to
waive its right of subrogation against COUNTY, its officers, directors, officials, employees,
agents or volunteers.
9. Notification of Claim
If any claim for damages is filed with FRANCHISEE or if any lawsuit is instituted against
FRANCHISEE, that arise out of or are in any way connected with FRANCHISEE’S
performance under this Agreement and that in any way, directly or indirectly, contingently
or otherwise, affect or might reasonably affect COUNTY, FRANCHISEE shall give prompt
and timely notice thereof to COUNTY. Notice shall be prompt and timely if given within
thirty (30) days following the date of receipt of a claim or ten (10) days following the date of
service of process of a lawsuit.
OIG
EXHIBIT 8
From:Neal, Jason
To:Hughes, Dylan
Subject:FW: Contract Sample
Date:Wednesday, May 10, 2023 6:38:46 PM
Attachments:WM Sample Contract Cover Page.pdf
WM STANDARD - Terms and Conditions.pdf
MB DISCLOSURE FORM.pdf
[ THIS MESSAGE COMES FROM AN EXTERNAL EMAIL - USE CAUTION WHENREPLYING AND OPENING LINKS OR ATTACHMENTS ]
Good evening, Inspector Hughes. As requested, I have attached a sample of
the current WM customer contract. In my opinion, most customers wouldprefer WM’s terms over those from other providers. Generally speaking, WM
terms identify certain “permitted” price increases that we all know will occurautomatically. The most common examples include CPI and increases in
disposal costs, along with others as listed. We believe it is reasonable toexpect price increases to apply to these items without caps. Setting “caps” will
simply increase initial pricing to customers. As we all know, these costs willincrease every year, and franchisees must be able to recover the cost
increases if they are to remain in business. Given the volatility of fuel, it is alsoreasonable to anticipate a variable energy surcharge based on the prices of the
fuel or energy source utilized, whether diesel, CNG, or other.
Note that the cost of providing service increases can and does increase forreasons other than those identified as “permitted.” In those cases, WM’s
contracts uniquely allow customers several options if WM seeks “consensual”increases. Customers may choose to accept consensual price increases,
negotiate them, or terminate service within 30-days of WM’s request of aconsensual price increase. Details are provided in the attachment.
Note that the term of the sample contract is 3 years. Contract length is one of
the terms that may be negotiated individually with each customer, and it willaffect pricing. We believe that those types of negotiations are favorable to all
parties and should be allowed between franchisees and customers. Mandatedshorter terms only serve to increase initial prices, given the need to spread
costs of capital, setup, and related costs over the negotiated term. Mandatinga termination for convenience clause allowing cancelation at any time with 30
or 60 days’ notice essentially means no real contract term, presenting evenfurther pressure to increase customers initial rates to cover upfront costs. The
instability with that type of termination clause also creates a need forconsideration of potential route changes due to the unpredictability of the
customer base, again putting more pressure on higher initial customer rates.
Like-term renewals promote stability in operations. Prohibition on any form ofauto-renewal will create chaos, as not all customers will respond, even if sent
notices of contract expiration. For stability and route efficiency, there should besome reasonable type of renewals allowed, as that will ultimately benefit all
parties.
Please note also that the WM contract also provides a service guarantee that
benefits customers.
I hope this response is helpful to your inquiry. Note: the MB Disclosure Form
(third attachment) was created by the City, and is unique to Miami Beach.
Jason Neal
Government Affairs Director
Waste Management Inc., of Florida
JNEAL2@wm.com
T: 305-986-6107
3410 NW 110 Street
Miami, FL 33167
Access WM 24/7 with MyWM
OIG
EXHIBIT 9
NEW BUSINESS 17.
COMMITTEE MEMORANDUM
TO: Finance and Economic Resiliency Committee Members
FROM:Alina T. Hudak, City Manager
DATE: September 22, 2023
SUBJECT:RFQ 2023-506-WG FRANCHISE WASTE HAULERS TO PROVIDE MULTI-FAMILY RESIDENTIAL AND
COMMERCIAL WASTE COLLECTION AND DISPOSAL
HISTORY:
The City currently has two (2) franchise agreements issued to solid waste contractors for residential and commercial solid waste
collection and disposal. The term of the franchise agreements with the City's current franchise waste contractors expired on
September 30, 2022, and have been extended on a month-to-month basis until September 30, 2023. The Administration is seeking
an extension until such time as the new franchise agreements to be awarded pursuant to the contemplated RFQ become effective.
On October 16, 2019, the Mayor and City Commission adopted Resolution No. 2019-31056, extending a renewal of the City's Non-
Exclusive Franchise Waste Contractor Agreements and new Service Agreement for a period of three (3) years, commencing as of
October 1, 2019, and expiring on September 30, 2022.
The Public Works Department engaged MidAtlantic Solid Waste Consultants (MSW) to assist staff with evaluating the current
agreement structure and to provide recommendations for an open versus closed, exclusive versus non-exclusive Franchise Waste
Contractor Agreement.
At the April 29, 2022, Finance and Economic Resiliency Committee (FERC) meeting, the City Administration presented MSW's
findings, and, among them, MSW recommended that the City transition to an exclusive franchise system. A motion was made to
expand the analysis and to come back to a future meeting with the findings. The Administration continued meeting with FERC on May
27, 2022, July 29, 2022, November 14, 2022, January 27, 2023, February 17, 2023, and lastly on March 31, 2023.
Parallel to the FERC discussions of what would be the future terms of a non-exclusive commercial franchise waste contractor
agreement and service agreements, a motion was made for Public Works to place a request to extend, on a month-to-month basis, the
contract term of the Non-exclusive Commercial Franchise Waste Contractor Agreement and Service Agreement with Waste
Management Inc. of Florida, and Waste Connections of Florida, Inc., for a period not to exceed September 30, 2023. The City
Commission approved this request via Resolution No. 2022-32228.
At the March 31, 2023, FERC meeting, Committee members made a motion to proceed with a Request for Qualifications (RFQ) and
provided additional guidance to consider when drafting the RFQ, listed below:
• Have the Administration ensure no less than three waste haulers (with additional waste haulers to serve as alternates to replace any
primary waste hauler that drops out).
• Consider an annual percentage increase cap and a hardship waiver that would allow the waste hauler to exceed the cap's limit
(depending on extenuating circumstances) with the City Commission's approval.
• Determine the term duration of the contracts between customers and haulers (whether a maximum of 2 years or 5 plus years, should
there be a major capital investment for equipment).
• Restrict the option for auto-renewal. Instead, allow a 90-day renewal notice from the waste hauler to the resident and a 60-day
window for the customer to respond to the waste hauler.
• Include a clause that would allow residents to call the City's Sanitation staff directly, should there be any service issues or concerns,
as well as allowing for residents to call the waste hauler directly.
• Effective next fiscal year, provide a quarterly LTC report that would list complaints from customers, identified issues, and turnaround
time to remedy the issue(s).
• Include language to allow for property manager credentials to be accepted by the City in the same manner as resident credentials for
the purposes of drop off of bulk waste or bulk pickups on behalf of the resident (and if possible, find ways to make it easier for
the purposes of drop off of bulk waste or bulk pickups on behalf of the resident (and if possible, find ways to make it easier
for multifamily with more than nine units to have curb bulk pickup).
As the RFQ process takes place, the Administration will require that the month-to-month non-exclusive Franchise Waste
Contractor Agreements and accompanying franchise fees, in-kind services, and other program contributions set to expire on
September 30, 2023, be extended from October 1, 2023, until such time as the solicitation process of the RFQ is completed and
the new contracts are in place.
At the May 17, 2023 City Commission meeting, Public Works brought forth a Resolution accepting the March 31, 2023
FERC recommendation to proceed with a Request For Qualifications (RFQ) for the City's waste hauler services and to extend the
current contracts for non-exclusive commercial franchise waste services (Item R7G), potentially promoting competition and
ensuring residents and business in the City receive the best service possible. A motion was made to approve the request via
Resolution No. 2023-32617. Commission directed that while the RFQ draft is being finalized by the Administration, the item
be brought to the FERC meeting for additional review and feedback.
At the July 26, 2023 City Commission meeting, Public Works brought forth a Request for Qualifications 2023-506-WG
Franchise Waste Contractors to provide residential and commercial waste collections and disposal. A motion was made to defer
the item to the September 27, 2023 City Commission meeting and to continue the discussion at FERC and PSNQL Committees.
At the July 28, 2023 FERC meeting, public comments were taken, and some of the issues raised from the public were:
contractual-required public benefit, sunset of contract, age of trucks, termination for convenience, length of contract, 8% price cap,
broker impacts, and not allowing auto renewal. A recommendation was made to have the Administration meet with vendors,
and to work with the industry to discuss public benefits and fleet vehicle requirements.
A roundtable discussion with the industry (including Waste Management, Waste Connections and Waste Pro USA) was had on
August 17, 2023. The focus of the conversation related to the RFQ and six customer contract provisions and or concerns brought
forth by the haulers to City Administration. These were:
1) Term of customer contracts:
The original RFQ had the 2-year contract limitation currently applying for 25 units and above (and not 9-24 units) this item has
been corrected.
2) No auto renewal evergreen clause and proposed termination by convenience clause:
There is a 90-day contract renewal notification notice provision from the waste hauler to the customer, and a 60-day response
time (and set to convert to a month-to-month for non-responders). It was discussed whether the RFQ should allow for a grace
period.
3) Brokers clause:
Currently not in the upcoming Committee agendas for discussion
4) 8% price cap
Related to 9-24 family, excluding 25 units and up, high rises residential and commercial.
5)Termination for convenience:
There have been discussions at Commission about having a 30-day termination notice instead, how it would affect pricing, and
whether there should be a fee for a with or without termination option (the current contract offers a termination for convenience
fee).
6) Escalation of customer complaints:
There were no concerns raised
Aside from the six customer provisions, industry members raised concerns over the commercial collection/fleet vehicle requirements.
Initially, the clause stipulated vehicles needed to be brand new, then later modified to reflect three years. This topic will likely continue
to be discussed at Committee following the printing of this memorandum. Lastly, the roundtable discussion concluded with a
proposed in-kind, public benefit requirement that will potentially come up at the September's FERC and PSNQL Committees, as well
as expected feedback to be added to the draft RFQ, which will go to City Commission for approval
ANALYSIS:
Franchisee and Alternate Franchisee Selection:
Based on the initial direction provided by the City Commission, the intent of this RFQ is to promote competition to ensure residents
and businesses in the City, receive the best service possible with reasonable pricing and contract terms. Toward this goal, the City
intends to award three (3) or more franchise waste contractor licenses and two or more (2) alternates to substitute a franchise waste
hauler that is acquired by another franchise waste hauler or whose contract is terminated.
The franchisees and alternate franchisees shall be selected from the applicant pool based upon a determination of such franchisees'
qualifications as set forth in Section 90-229(a) of the City Code. Notwithstanding the foregoing, the City Commission may award fewer
franchise waste contractor licenses if the City Commission determines, in its sole discretion (and having considered the
recommendation of the City Manager), that there are insufficient qualified applicants to award three (3) franchise waste contractor
recommendation of the City Manager), that there are insufficient qualified applicants to award three (3) franchise waste contractor
licenses and/or alternates.
Replacement Agreement:
In order to consider a replacement agreement, RFQ seeks responses from qualified firms interested in becoming franchise waste
haulers and providing multi-family residential and commercial waste collection and disposal.
The requirements of the City's Solid Waste Ordinance, as codified in Section 90, Articles I--V, of the City Code (and as same may be
amended from time to time), shall apply to any franchise agreement resulting from this RFQ. To give effect to some of the concerns
the City Commission seeks to address pursuant to this RFQ, the Administration recommends amending Section 90-227 (Handling of
Complaints) and Section 90-230 (Term of franchise agreements; initial term; renewal term) of the City Code. Specifically, Section 90-
227 will be amended to require waste contractors to maintain records documenting customer communications regarding service
issues or complaints and provide quarterly reports to the sanitation division relating to customer complaints and their handling. In
addition, Section 90-230 will be amended (1) to provide for a renewal term of franchise agreements with waste haulers of up to five
years (instead of three), (2) to require that haulers structure agreements with their customers and brokers be coterminous with their
franchise agreements and (3) to provide for a 120-day open solicitation period prior to the commencement of the new franchise
agreements awarded following this RFQ and at the expiration of each 5-year franchise agreement term or renewal term to allow
haulers to solicit and sign accounts with customers and brokers during such period.
Staff are recommending the following language as it relates to the customer contract provisions of the RFP for section D.
1) Term of contracts: A maximum of 2-year contracts for Multi-Family 9-24 Units. All other Multi-Family and Commercial accounts can
have contracts of up to 5 years or equal to the length of the city’s current nonexclusive franchise agreement.
2) No Auto-Renewal/Evergreen Clauses except as provided in item 3 below.
3) Prior Notice to Customer/Broker of Expiration Date with Option to Renew. Hauler must send 90-day notice and customer must
respond within 60 days. In the event that the Customer/Broker does not respond within the 60-day period, the contract will
automatically renew for an additional 1-year period, under the prior terms and conditions.
4) Caps on annual increases are applicable to Multi Family 9-24 units. The cap is 8% annually.
5) Termination for convenience provision to allow 30-day notice for cancellation of customer contracts. This shall include a
reasonable premium for haulers to charge for this provision.
6) Escalation of Customer Complaints provision allows customers to contact the City directly if their issue is not resolved within 24
hours by the hauler.
Staff is recommending the following language for section E of the contract.
Collection Vehicles
Waste contractors must procure collection vehicles that have been in service for not more than three (3) years and that are clean,
sanitary, neat in appearance and in good repair, prior to the commencement of the term (or any renewal term) of the franchise
agreement. This requirement is a condition precedent to the commencement of services to customers. Failure to comply with this
requirement will constitute a default and the City shall have all remedies available pursuant to the franchise agreement, including
without limitation the right to terminate the franchise. The City shall have the right to inspect all collection vehicles at any time with or
without notice and to require that a collection vehicle be repaired or replaced as necessary to ensure the highest level of service to the
City’s residents and businesses. In this regard, each franchisee shall at all times have available to it, reserve vehicles that are clean,
sanitary, neat in appearance and in good repair and which can be put into service within two (2) hours of any breakdown or
unsatisfactory inspection.
Staff is recommending the following language for section F of the contract.
OPEN SOLICITATION PERIOD
There will be an open solicitation period during the last one hundred twenty (120) days of the term of franchise agreements (including
agreements in place at the time this RFQ is issued). During such solicitation period, franchise waste contractors shall be free to solicit
and sign contracts with customers and brokers in respect of waste collection agreements with terms that will commence upon the
expiration of the expiring franchise agreements. With regard to customer contracts in effect at the time this RFQ is issued that will not
expire by or before the effective date for new franchise agreements, waste haulers shall provide written notice to such customers by
certified mail, return receipt requested, not less than one hundred eighty (180) days prior to the expiration of their franchise
agreements advising that they may terminate their agreements without payment of liquidated damages or early termination fees of any
kind if they desire to contract with a different waste hauler during the solicitation period for a term that commences when the new
franchise agreements become effective.
Additionally, staff is currently reviewing the concept of splitting the contract sunsetting periods into a phased in approach. The phases
will include contracts that expire in 2024 and contracts that expire in 2025 or later, so that the open solicitation process doesn’t occur at
will include contracts that expire in 2024 and contracts that expire in 2025 or later, so that the open solicitation process doesn’t occur at
the same time for all contracts. Staff has asked both of the current commercial haulers to provide a list of dates of all of their expiring
contracts for their multi-family and commercial accounts. If staff is unable to obtain this information, a more rudimentary
recommendation (ie by odd or even address number or split the city geographically) as to the process for phasing the new franchise
contract enrollments can be made.
A draft of the RFQ is attached.
Following the receipt of proposals, an Evaluation Committee will review proposals in accordance with the criteria established in the
RFQ. The selection of firm(s) with whom the City may enter into negotiations shall be based on the criteria established in the RFQ.
CONCLUSION:
The following update is presented to the members of the Finance and Economic Resiliency Committee for discussion and further
direction.
Applicable Area
Citywide
Is this a "Residents Right
to Know" item, pursuant to
City Code Section 2-14?
Does this item utilize G.O.
Bond Funds?
Yes No
ATTACHMENTS:
Description Type
RFQ Waste Hauler Other
OIG
APPENDIX
A
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
Alina T. Hudak, City Manager
Tel: 305-673-7010
MEMORANDUM
TO:
FROM:
DATE:
Joseph M. Centorino, Inspector General
Alina T. Hudak, City Manag~
March 12, 2024
SUBJECT: Response to OIG Draft Report: Review of Process for Considering Waste Hauler
Options for Delivery of Waste Collection Services for Commercial Accounts and
Multi-Family Accounts Exceeding Eight Units
Thank you for the opportunity to provide feedback to the DRAFT report dated January 29, 2024
regarding the review of the process for the selection of waste hauling companies for our City.
Although it was initially represented to me that I would not be interviewed by you for this review,
I was later advised that I would be interviewed and that time was of the essence. While I had no
time to review the two year record and prepare for the interview, in the interest of full
transparency, I was happy to participate.
As referenced in the draft report, there have been no allegations of fraud or other illegalities and
the focus of the review is limited to recommended administrative and legislative process
improvements, which I welcome. However, there are multiple conclusions and assumptions
made throughout that are not supported by any evidence or facts. I would welcome the
opportunity to meet and discuss.
Commencing with the introductory paragraphs and throughout, the draft report erroneously
misrepresents and confuses the recommendations included in a consultant report for those of
the City's Administration.
Consultants are hired by the Administration to inform and assist in the analysis of an issue and
the development of future recommendations. The scope of this consultant's work was primarily
focused on fact gathering, data collection, and not an actual evaluation of the merits of one
system compared with another, within the City of Miami Beach. After my initial review of the
consultant's work, I found it to be weak and viewed its presentation to the Finance Committee
as a starting point for a discussion of what other cities do. At no time did the consultant analyze
the success of any model, but rather, provided an accounting of what other cities do. Staff did
acknowledge in Committee that in the original consultant report, most of the cities analyzed
favored one particular model. However, the report was devoid of any analysis regarding how
that model would better serve Miami Beach.
The reader, from the onset of the draft report, is led to believe that the Administration made a
recommendation and subsequently changed it. I am not aware of any recommendation memo,
signed by me, in my capacity as City Manager, that made a specific recommendation regarding
the methodology of procurement, other than the recommendation regarding the process for the
advertisement of a Request for Qualifications (RFQ) for multi-hauling first presented to the
Commission on July 26, 2023. As accurately reflected in your draft report, this draft RFQ,
through a very public process went through multiple iterations of public review and considerable
input by our legislative body and our attorneys.
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic
community.
There is inuendo throughout the draft report concluding that "the full Commission might not
have understood the actual position of staff." Given that this discussion was heard and
discussed at length at a total of at least 18 public Commission and Committee meetings, I find it
hard to fathom a conclusion that would lead anyone to believe that our elected officials did not
understand and/or are not capable of understanding the complexity of issues. It is my
understanding that these conclusions were reached without the benefit of formally interviewing
any of the elected officials responsible for the decision. At a minimum, the elected officials at
the heart of this discussion should be part of this review in order to properly ascertain their
understanding of the issues. In fact, the record contains multiple instances when both the
Director of Public Works and Deputy City Manager provided responses to both the Committee
and the Commission as to why the administration recommended the continuation of the current
business model.
Most concerning is the statement: "City staff was likely influenced by circumstances outside of
an objective assessment process." This statement is made without any factual basis and
completely grounded in opinion. Accordingly, I must conclude that the report is referring to the
Committee's "influence." The fact is that our City has a legislative process that includes a
Commission Committee review process led by a quorum of our elected leadership appointed by
our Mayor. If the work of Committees is not going to have any relevance in the development of
recommendations, then I believe your draft report should recommend specific changes to the
Committee governance model. The Committee structure is an exhaustive drain on City staff
resources and if, as the draft report suggests, it is inappropriately influencing staff, then perhaps
a better recommendation would be that they not exist.
Yet another underlying theme within the draft report is that the full Commission never had the
opportunity to review the concept of an exclusive hauler model which is factually inaccurate.
Throughout the time period in question, on multiple occasions, a specific Commissioner
introduced Commission legislation to consider authorizing the issuance of an exclusive
franchise. The items were deferred and not acted upon. Clearly, the Commission knew that
was an option and chose not to discuss or act upon that option. Again, the report insinuates
that somehow there was a lack of transparency when, in fact, all of these considerations were
vetted and discussed during public meetings.
The draft report gives an outstanding review of the history of the City's legal mandate and our
staff authority regarding the use of a multi-hauling system. At no time did the full Commission
initiate any action or provide direction to change Ordinance 2012-3768 or change the City's
business model. Again, there is a presumption throughout the report that it was staffs role to
ignore the work being developed in Committee and address the options with the full
Commission. However, that is a highly unrealistic perspective of how all of the discussion items
being considered by City Commission Committees function. By way of example, as recently as
the February 23, 2024, Finance and Economic Resiliency Committee meeting, the Committee
(plus two additional Commissioners), vigorously engaged in discussions regarding the Barclay
redevelopment project Request for Proposal, including providing the potential developer with
parameters for financial terms the developer should proffer to the City without any input from
professional staff. This highlights the nature and function of these Committees, illustrating how
they routinely provide policy direction which may result in action or inaction, whether or not the
position of staff is sought or considered.
The report makes reference to the fact that minutes from two Committee meetings were not
properly presented to the Commission for ratification. Unfortunately that oversight was a
function of the transition between the resignation of the prior Chief Financial Officer and the
appointment of the Interim CFO. I was not aware that this had not taken place and it was
corrected immediately upon notification. There was no malintent as the report implies.
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic
community.
Respectfully, for the reasons detailed above, I do not agree with the tone of the report which is
riddled with opinions and assumptions about a complex issue that provides the public with a
skewed and erroneous view of what occurred. I appreciate the opportunity to comment on this
report and welcome the opportunity to meet and discuss these points more deeply.
While I am certainly not an expert in everything, my knowledge of the garbage business is
significant thanks to my experience serving as Deputy Mayor and Director of the Miami Dade
Solid Waste Department for many years. The business is complex and the three models
available have advantages and disadvantages. The success of either model is highly dependent
on the company providing the service and the City's risk tolerance. Adding to the complexity,
the competition in this market is limited and the cost of disposal continues to rise making it
nearly impossible for any RFQ/RFP to properly define every possible logistical factor that will
impact cost to residents and businesses. The shift to a completely new model has many risks
and no guarantees for success. A transition would take years to accomplish and would require
additional staff resources to achieve the desired level of control. Most importantly, however, is
that the policy decision is vested in the City's elected officials and until such time as that body
makes the decision to change the City's laws and policies regarding the same, it is not the
Administration's role to do so. To imply otherwise is not responsible.
Thank you for your consideration.
We are committed to providing excellent public service and safety to all who live, work, and play in our vibrant, tropical, historic
community.
OIG
APPENDIX
B
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, FL 33139, www.miamibeachfl.gov
MEMORANDUM
To:
From:
Date:
Joseph Centorino, Inspector General
Eric Carpenter, Deputy City Managefu,/2 ,,~
March 12, 2024 T
Subject: Response to Office of Inspector General (OIG) Waste Hauler Draft Report
This letter is meant to serve as an individual portion of the overall response to the above
referenced report and should be reviewed in conjunction with the other more comprehensive
responses.
Please let me begin by stating that in my personal opinion, the report prepared by the Office of
the Inspector General to look back at the "Process for Considering Waste Hauler Options .." is
missing a clear understanding of the contractual mechanisms that would need to be utilized to
deliver the services to the community depending upon the option chosen. In addition, the
report mentions but does not consider the relevance of the historical predicate of more than 30
years utilizing the current multi-hauler option.
The attempt of the OIG report, in my opinion, to sensationalize the information provided by the
members of the City Administration, without including the input from the members of the
elected body that were involved in this policy decision, rings as hollow as it reads based upon
the facts in this investigation. The facts are very clear that the Staff of the Public Works
Department wished to further evaluate the delivery method for Waste Hauling services to
Commercial and Multifamily Buildings exceeding eight units. In order to add context to the
conversation, which was always a policy decision, they hired a consultant to do data collection
on delivery methods in other jurisdictions. The result of their information gathering was placed
as a referral to Committee without a recommendation by the City Manager. After nearly 18
months of discussion at both Commission and Committee meetings the policy direction was
clear and staff moved forward in the direction of the existing service delivery model.
Despite the unsupported allegations and innuendo in the OIG report, there are no facts to
refute this outcome. During the entirety of the public debate, the Administration has been very
clear on the record that either of the delivery models can work, it just becomes a trade off
between limited options with guaranteed pricing or multiple options with ability to negotiate
pricing. Differing perspectives can reasonably agree to disagree regarding the best approach
but clearly the debate and outcome were fully vetted as shown in the numerous public
discussions and 7-0 vote of the policy makers to issue the RFQ as required by Chapter 90 of the
Code for the City of Miami Beach.
The multiple discussions at Commission and Committee meetings clearly presented the
information regarding the different options in an effort to reach a decision on the best outcome
for the residents and businesses of Miami Beach. Public discourse is a very important tenet of
how best to reach a decision which is why it is a cornerstone of good governance.
WVe are committed to providing excellent public service and safety to all who live, work and ploy in our vibrant, tropical, historic community.
OIG
APPENDIX
C
MIAMI BEACH
City of Miami Beach, 1700 Convention Center Drive, Miami Beach, Florida 33139, www.miamibeachfl.gov
MEMORANDUM
TO: Office of the Inspector General
FROM: Ricardo J. Dopico, Deputy City Attorney 4fl
DATE: March 11, 2024
SUBJECT: Draft Report Dated January 29, 2024 relating to the OIG's
Review of Process for Considering Waste Hauler Options for
Delivery of Waste Collection Services for Commercial
Accounts and Multi-Family Accounts Exceed Eight Units
The Office of the Inspector General ("OIG") attempted to tackle in a mere 47 days a subject as
complex as the nearly 2-year process followed by the Mayor and City Commission
("Commission"), the Finance and Economic Resiliency Committee ("FERC"), the Administration
and City Staff for considering waste hauler options. Although this Herculean effort yielded many
useful observations, the process of producing the report (the "Report") in such a short period,
coupled with the brevity of the Report itself (15 pages), resulted in an incomplete picture of the
process. In the time since the draft Report was issued, the OIG has had approximately 6 weeks
to review additional materials and conduct additional interviews, so hopefully the final Report will
include additional information as well as input from others who were directly involved in the
legislative process.
To provide these comments, I reviewed FERC and Commission Memoranda, including
presentations made by MSW Consultants ("MSW"), and viewed FERC meetings where the waste
hauler item was discussed. Below are my observations as to certain areas where corrections
are desirable and/or where the inclusion of additional information could, in my opinion, result in
a more balanced analysis. I have not had as much time to devote to this as the OIG's staff did,
but I respectfully submit these comments in the hope that they may be helpful in yielding a more
complete final Report.
1) The statement in the introduction "[t]he administration subsequently changed its
recommendation to a non-exclusive system" is inconsistent with information the
OIG itself presented subsequently in its Report. The Report notes, "While the data
presented appeared to support the previous recommendation of an exclusive
agreement, staff presented two options to the FERC-to either continue with the
non-exclusive franchise or to consider an exclusive one-without recommending
either." See Report, at 7 (emphasis supplied). The latter statement, that staff
presented two options to the FERC is correct; the former statement, that staff
changed its recommendation to a non-exclusive system, is incorrect. This oversight
should be corrected in the final Report because there is a substantial risk that a casual
reader would not catch this inconsistency and, therefore, reach conclusions that are
not based on the events that actually occurred.
2) The last paragraph in the section of the Report analyzing the April 27, 2022 FERC
meeting includes the use of scare quotes around the word "disappointment" signaling
the OIG investigators were skeptical concerning Commissioner Richardson's true
feelings regarding the consultant MSW's initial report and recommendation. It is not
the role of the City Attorney's Office to advocate for or against any particular policy.
Instead, the CAO's role is to advise as to legal issues that come up during the
development or execution of policies, and to participate in the drafting of contracts,
resolutions, ordinances and other legal documents. I did not always agree with
Commissioner Richardson's opinions on policy, and as stated above, the CAO's role
does not include providing an opinion as to policy decisions made by the Commission
or recommended by any of its committees. However, Commissioner Richardson's
determination that the MSW presentation was "disappointing" was spot on. The MSW
presentation was superficial and statistically irrelevant (e.g. MSW considered only 13
municipalities and drew conclusions from a survey that included only 15
respondents). The MSW presentation did not include the pros and cons of a non-
exclusive system, an omission that was curious because the City has had a non-
exclusive system in place for 30 years. Given the short period of time in which the
draft Report was generated, it is understandable that the OIG does not evaluate the
process followed by MSW to reach its recommendation to transition to a single hauler
system.1 However, although the scope of the OIG's investigation was necessarily
limited due to time constraints, it would be helpful to the reader to include even some
cursory observations regarding the sufficiency of the MSW report. Without adding
more information, the reader is left with the impression that the OIG believes the
FERC should have simply accepted the recommendations in the MSW presentation
without further discussion or inquiry.
3) It would be helpful to include the minutes from the June 23, 2022 Public Forum as an
exhibit.
4) In the section analyzing the July 29, 2022 FERC meeting, the OIG accurately reports
that "there appeared to be a consensus among Committee members for the non-
exclusive franchise option." It would be important to note that the four (4)
1 It is interesting to note that using an artificial intelligence platform such as Microsoft's Copilot would yield the
substantially the same pros and cons for an exclusive waste hauler system.
Commissioners present at that FERC meeting (i.e., a majority of the Commission)
agreed that a non-exclusive franchise option was the better choice. In addition, the
draft Report would be more complete if it cited some of the comments made by FERC
members during the lengthy discussion; these comments eventually shaped some of
the contractual provisions included in the RFQ. For example, Commissioner
Fernandez suggested there should be limitations on price increases from year-to-year
and that the City should have a stronger role in quality control. Commissioner Rosen
Gonzalez preferred a multi-hauler system in which the haulers would contract with
the City in order to curtail some of the concerns raised by residents at the public forum
on June 23, 2022, more specifically, price increases.
5) The third full paragraph in the section titled "Minutes of the July 29, 2022 Meeting"
states that the July 29, 2022, September 30, 2022 and October 31, 2022 FERC
minutes were placed on the January 31, 2024 agenda "indicating that the reason for
the failure to file the minutes may have been an unintentional lapse." I was unable to
find this language in anywhere in the January 31, 2024 agenda. Although surely
unintentional, the use by the OIG of the phrase "may have been an unintentional
lapse" could reasonably lead one to the conclusion that the OIG believes the failure
to file the minutes may have been intentional. Although there is a footnote on the
next page stating that the OIG has not made any findings regarding the reason for
the lapse, the implication that a failure to file minutes was intentional is a serious
allegation for which there does not appear to be a foundation. If there is a foundation,
it should be more clearly articulated; otherwise, a casual reader may reach
unsupported conclusions about the propriety of staff conduct without a factual basis.
6) In the Section title "The Changed Staff Recommendation", the OIG suggests "there
is no public record indicating that the full Commission was informed about the results
of the City staff and consultants' research supporting an exclusive agreement." First,
the research was conducted by the consultant, not City staff. Second, and more
importantly, the full Commission and the public was informed about MSW's
presentation recommending a single hauler solution by an item included in three
separate Commission meeting agendas with the following title:
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, AUTHORIZING THE CITY ADMINISTRATION TO
ISSUE A REQUEST FOR PROPOSALS FOR AN EXCLUSIVE FRANCHISE
WASTE CONTRACTOR FOR (1) RESIDENTIAL SOLID WASTE COLLECTION
AND DISPOSAL FOR MULTI-FAMILY RESIDENCES WITH NINE OR MORE
UNITS; (2) COMMERCIAL SOLID WASTE COLLECTION AND DISPOSAL; AND
(3) RECYCLING SERVICES FOR MUL Tl-FAMILY RESIDENCES WITH TWO
OR MORE UNITS, IN ORDER TO CONSOLIDATE SUCH SERVICES UNDER
A SINGLE EXCLUSIVE FRANCHISE SYSTEM AS INITIALLY
RECOMMENDED BY THE CITY'S PROFESSIONAL STAFF, AND PROVIDE
FOR A COMPETITIVE PROCESS THAT INCLUDES CONSIDERATION OF
THE PRICING THE FRANCHISEE WILL CHARGE TO THE CITY'S RESIDENTS
AND BUSINESSES.
(March 27, 2023, item C7 T (deferred); April 28, 2023 (R7 E (deferred); and May
17, 2023 (withdrawn) (emphasis added)).
A copy of the corresponding Resolution is attached. The Recitals in the Resolution
(a) reference the initial presentation by staff of MSW's recommendation to transition
to a single hauler system, (b) note that notwithstanding staff's initial
recommendations, the FERC indicated its intent to recommend a non-exclusive
franchise system and (c) restate the reasons set forth in the MSW presentation in
favor of an exclusive franchise. Below are the relevant recitals from the Resolution
proposed by Commissioner Rosen Gonzalez.
WHEREAS, at the April 27, 2022 Finance and Economic Resiliency Committee
meeting, the City Administration presented MSW's findings, and, among them, MSW
recommended for the City to transition to an exclusive franchise system; and
WHEREAS, notwithstanding the staff's initial recommendations, the Finance
Committee has indicated its intent to recommend a non-exclusive franchise system,
to be expanded to double the current number of providers and allow for up to four (4)
nonexclusive providers, with all of their trucks conflicting with each other on already
congested City streets; and
WHEREAS, there are very strong policy considerations for moving to an
exclusive franchise system, including, without limitation, the following:
• The procurement process for selection of an exclusive franchisee will allow
for competitive pricing, unlike the current framework, where the City
Commission has no role in the prices charged to residents in most multi-
family buildings and businesses;
• The professional staff's recommendation is that prices should decrease for
most users, if the City follows a competitive pricing model for an exclusive
franchise;
• In addition to pricing transparency, an exclusive framework will lead to
improved levels of service, improved operational efficiencies and economies
of scale;
• An exclusive framework will provide for streamlined contract management
and oversight, including improved hauler accountability; and
• Most importantly, an exclusive provider will mean fewer trucks on already
congested City streets, alleviating additional traffic and reducing
greenhouse gas emissions; and
The statement that there is no public record indicating the full Commission was
informed is erroneous. This misstatement should be corrected as it otherwise
undermines the credibility of the OIG's Report as a whole, when the Report otherwise
includes some. valid observations and suggestions. Although the item was not
reached at the March 27, 2023 or April 28, 2023 meetings and was withdrawn at the
May 17, 2023 meeting, there is no reason to believe Commissioners did not review
the item on their own or during their detailed briefings with the City Manager and City
Attorney prior to at least one of the three meetings. The failure to correct this factual
error would unwittingly imply that the OIG believes the Mayor and City Commissioners
do not read agenda items they are voting on.
7) Near the end of the section "The Changed Staff Recommendation" the draft Report
states: "The item with the staff recommendation for the non-exclusive system passed
unanimously at the September 27, 2023 Commission meeting, following which the
City issued the RFQ ..." This statement is inaccurate. At its May 17, 2023 meeting,
the Commission adopted Resolution No. 2023-32617 on a 5-2 vote (Opposed:
Commissioners Dominguez and Rosen Gonzalez). The resolution reads as follows:
[T]he Mayor and City Commission hereby accept the recommendation of the
Finance and Economic Resiliency Committee, at its March 31, 2023 meeting,
to proceed with a Request for Qualifications (RFQ) for the City's waste hauler
services, and to extend the current contracts for non-exclusive commercial
franchise waste services ......"
A copy of the Resolution is attached (emphasis added).
The resolution that was adopted unanimously on September 27, 2023 was a different
resolution. That resolution, Resolution No. 2023-32833, directed the Administration
to issue the RFQ, with an amendment to the RFQ document presented to
Commission to include a 15% cap for customers that opted to include a termination
for convenience clause in their contracts. A copy of Resolution 2023-32833 is
attached.
8) In the section titled "City Attorney Input on the RFQ, when asked whether the RFQ
contemplates that the incumbent waste haulers would be selected, my initial response
was: "Yes, I mean I suppose the possibility that Waste Connections or Waste
Management wasn't selected, in which case all of their contracts would be available.
But it in other words, once the new contracts went into effect, if you are an incumbent,
your old franchise is going to cease to exist, you will be existing under a new
franchise." My initial response should be included.
9) In the Section "A Flawed RFQ," the observation that there was "little input from the
professional staff in the City's Procurement Department" is correct with regard to
Section E "Customer Contract Provisions" and Section F "Open Solicitation Period",
which were drafted by me with input from the Public Works Director and the Sanitation
Director (the staff with the technical expertise in the subject matter at hand), and
ultimately, by the FERC. In addition, I was solely responsible for the preparation of
Appendix A which included draft ordinance amendments that would be desirable
based on some of the RF Q's objectives. All other sections of the RFQ were prepared
almost entirely by the Procurement Department. The comments provided by some
members of the waste hauling industry that the customer provisions contained in the
RFQ would result in increased prices should be taken with a grain of salt and put into
perspective. For example, the premium that waste haulers could charge for inclusion
of a termination for convenience clause would apply only to those customers who
opted to include such a clause. Of course, as a general matter, the inclusion of more
favorable terms in any service contract may result in a higher price than a contract
with less favorable terms. In this case, the FERC directed that customer contracts for
the new franchisees must include certain customer-friendly terms based on input
provided by residents and/or businesses.
10) In its Conclusion, the OIG observes that an important policy decision was driven by
committee recommendation rather than by the Commission being fully informed by
its professional staff. As noted above, the City Commission had the opportunity on
three occasions to go the single-hauler route, and declined to do so. In addition, the
title and Resolution for the agenda item proposed by Commissioner Rosen Gonzalez
provided, at a minimum, a synopsis of the FERC process. While it is true that the
FERC had a significant influence on the RFQ that was prepared as the culmination
of the legislative process that started early in 2022 and ended in September 2023,
isn't that exactly what Commission Committees are supposed to do? As I understand,
the Commission refers matters to its Committees for the discussion of ideas,
the elaboration of concepts and, ultimately, the development of policy
recommendations that are then sent back to the full Commission for approval,
modification or rejection. That is exactly what happened here.
In my humble opinion, although the process pursuant to which RFQ 2023-506-WG was
developed was imperfect, the use of phrases such as "the unexplained and non-transparent
change in direction by City staff' unfairly impugns the integrity of individuals who were involved
in the ebbs and flows of this legislative process. In light of the compressed timeframe (i.e., 47
days), it is understandable that the OIG was unable to review all materials and to interview all
parties with relevant knowledge in order to present a full and complete picture. Unfortunately,
as a result of this, the reader is left with the impression that entire process was flawed and
tainted. Because the Report did not include and/or unintentionally misstated some material
facts, the OIG's main objective - to objectively review the process pursuant to which the City
issued RFQ 2023-506-WG - was not well served. Although there were policy directives that
reasonable persons could disagree upon and it is debatable as to which system is best for
Miami Beach, the process followed here was substantially the same as in any other
Commission initiative: with appropriate deference to our Elected Officials in the exercise of their
policy-making functions.
I would respectfully urge the OIG to correct the errors and omissions in the draft Report prior
to its publication.
RESOLUTION NO: 2023-32617
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 MARCH 11, 2023
MEETING, TO PROCEED WITH A REQUEST FOR QUALIFICATIONS (RFQ) FOR
THE CITY'S WASTE HAULER SERVICES, AND TO EXTEND THE CURRENT
CONTRACTS FOR NON-EXCLUSIVE COMMERCIAL FRANCHISE WASTE
SERVICES WITH WASTE MANAGEMENT OF FLORIDA AND WASTE
CONNECTIONS OF FLORIDA, INC., SET TO EXPIRE ON SEPTEMBER 30, 2023,
ON A MONTH -TO -MONTH BASIS UNTIL SUCH TIME AS THE SOLICITATION
PROCESS OF THE RFQ IS COMPLETED AND A REPLACEMENT
CONTRACT(S) IS EXECUTED.
WHEREAS, On October 16, 2019, the Mayor and City Commission adopted Resolution
No. 2019-31056, extending a renewal of the City's Non -Exclusive Franchise Waste Contractor
Agreements and new Service Agreement for a period of three (3) years, commencing as of
October 1, 2019 and expiring on September 30, 2022; and
WHEREAS, the Public Works Department engaged MidAtlantic Solid Waste Consultants
MSW) to assist staff with evaluating the current agreement structure and, to provide
recommendations for an open versus closed, exclusive versus non-exclusive, Franchise Waste
Contractor Agreement; and
WHEREAS, at the April 29, 2022 Finance and Economic Resiliency Committee (FERC)
meeting, the City Administration presented MSW's findings, and, among them, MSW
recommended for the City to transition to an exclusive franchise system; and
WHEREAS, a motion was made to expand the analysis, and to come back to a4uture
meeting with its findings; and
WHEREAS, the Administration continued meeting with FERC on May 27, 2022, July 29,
2022, November 14, 2022, January 27, 2023, February 17, 2023, and lastly on March 31,12023;
and
WHEREAS, parallel to the FERC discussions of what would be the future terms of non-
exclusive commercial franchise waste contractor agreement and service agreements, a motion
was made for Public Works to place a request to extend, on a month -to -month basis, the contract
term of the Non -Exclusive Commercial Franchise Waste Contractor Agreement and Service
Agreement with Waste Management Inc. of Florida, and Waste Connections of Florida, Inc:, for a
period not to exceed September 30, 2023. The City Commission approved this request
via Resolution No. 2022-32228; and
WHEREAS, at the March 31, 2023 FERC meeting, Committee members made a motion to
proceed with a Request for Qualifications (RFQ) and provided additional guidance to consider
when drafting the RFQ, listed below:
Have the Administration work towards a goal of having no less -than 3 waste haulers (and
4th and 5th candidates to substitute any waste hauler that ceases providing services).
Consider a cap on annual fee increases, and a waiver that would allow the Administration
depending on extenuating circumstances) to come back to the City Commission for
approval.
Determine the term duration of the contracts between customers and haulers (whether a
maximum of 2 years, or 5 plus years -should there be capital equipment).
Restrict the option for auto renewal. Instead, allow a 90-day renewal notice from the waste
hauler to the resident to allow the resident to terminate the agreement if desired, and if the
customer does not respond, to allow for the renewal of the contract on a year-to-year basis
with a termination right to each party upon 60 days' notice.
include a clause, that would allow residents to call the City's Sanitation staff directly, should
there be any service issues or concerns, as well as allowing for residents to call the waste
hauler directly.] '
Effective next fiscal year provide a quarterly LTC report that would list complaints, from
customers, issues involved, and turnaround time taken to cure or remedy the issue(s).
Include language to allow for property manager credentials to be accepted by the City as
opposed to resident only credentials, and to accept drop off bulk waste or bulk pickups on
behalf of the resident (and if possible, find ways to make it easier for multi -family with more
than 9 units to have curb bulk pickup); and
WHEREAS, as the RFQ :process takes place, the Non -Exclusive Franchise, Waste
Contractor Agreements should remain effective on a month -to -month basis, and accompanying
franchise fees, in kind services, and other program contributions set to expire on September 30,
2023 to be extended effective October 1, 2023, until such time as the solicitation process of the
RFQ is completed.
NOW, THEREFORE, BE IT DULY RESOLVED BY THE MAYOR AND CITY -COMMISSION
OF THE CITY OF MIAMI BEACH, FLORIDAthat the Mayor and.City.Comm ission hereby;acceptthe recommendation
of the Finance and Economic Resilienc' Committee, at its Marche, 31, 2023 meeting,
to proceed with a Request -For Qualifications (RFQ) for the City's waste hauler services, and
to extend the current contracts for non-exclusive commercial franchise waste services with. Waste
Management of Florida and Waste Connections of Florida, Inc., set to expire: on September 30,
2023, on a month -to -month basis until such time as the solicitation process of the RFQ is corripleted
and a replacement contract(s) is executed. PASSED
and ADOPTED THIS i7 day of / , 2023. ATTEST:'
MAY
2 2 CITY.
CLERI<. MAYOR. INCQRP
0RLM 7
APPROVED
AS TO FORM &
LANGUAGE FOR
EXECUTION f
City
Attorney Dote e
Resolutions - R7 G
MIAMI BEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: May 17, 2023
SUBJECT.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
MARCH 31, 2023 MEETING, TO PROCEED WITH A REQUEST FOR
QUALIFICATIONS (RFQ) FOR THE CITY'S WASTE HAULER SERVICES,
AND TO EXTEND THE CURRENT CONTRACTS FOR NON-EXCLUSIVE
COMMERCIAL FRANCHISE WASTE SERVICES WITH WASTE
MANAGEMENT OF FLORIDA AND WASTE CONNECTIONS OF FLORIDA,
INC., SET TO EXPIRE ON SEPTEMBER 30, 2023, ON A MONTH -TO -
MONTH BASIS UNTIL SUCH TIME AS THE SOLICITATION PROCESS OF
THE RFQ IS COMPLETED AND A REPLACEMENT CONTRACT(S) IS
EXECUTED.
rzq Ppju. u 01;19•
The Administration recommends accepting the recommendation of the Finance and Economic
Resiliency Committee, at its March 31, 2023 meeting, to proceed with a Request For
Qualifications (RFQ) for the City's waste hauler services, and to extend the current contract for
Non -Exclusive Commercial Franchise Waste Services with Waste Management of Florida and
Waste Connections of Florida, Inc., set to expire on September 30, 2023, on a month -to -month
basis until such time as the solicitation process of the RFQ is completed and a replacement
contract(s) is executed.
ANALYSIS
On October 16, 2019, the Mayor and City Commission adopted Resolution No. 2019-31056,
extending a renewal of the City's Non -Exclusive Franchise Waste Contractor Agreements and
new Service Agreement for a period of three (3) years, commencing as of October 1, 2019
and expiring on September 30, 2022.
The Public Works Department engaged MidAtlantic Solid Waste Consultants (MSW) to assist
staff with evaluating the current agreement structure, and to provide recommendations for an
open versus closed, exclusive versus non-exclusive, Franchise Waste Contractor Agreement.
At the April 29, 2022 Finance and Economic Resiliency Committee (FERC) meeting, the City
Administration presented MSW's findings, and, among them, MSW recommended for the City
Page 711 of 945
to transition to an exclusive franchise system. A motion was made to expand the analysis, and
to come back to a future meeting with the findings. The Administration continued meeting with
FERC on May 27, 2022, July 29, 2022, November 14, 2022, January 27, 2023, February 17,
2023, and lastly on March 31, 2023.
Parallel to the FERC discussions of what would be the future terms of a non-exclusive
commercial franchise waste contractor agreement and service agreements, a motion was
made for Public Works to place a request to extend, on a month -to -month basis, the contract
term of the Non -Exclusive Commercial Franchise Waste Contractor Agreement and Service
Agreement with Waste Management Inc. of Florida, and Waste Connections of Florida, Inc.,
for a period not to exceed September 30, 2023. The City Commission approved this request
via Resolution No. 2022-32228.
At the March 31, 2023 FERC meeting, Committee members made a motion to proceed with a
Request for Qualifications (RFQ) and provided additional guidance to consider when drafting
the RFQ, listed below.
Have the Administration ensure no less than 3 waste haulers (with additional waste haulers
to serve as alternates to replace any primary waste hauler that drop out).
Consider an annual percentage increase cap, and a hardship waiver that would allow the
waste hauler to exceed the cap's limit (depending on extenuating circumstances,) with the
City Commission's approval.
Determine the term duration of the contracts between customers and haulers (whether a
maximum of 2 years, or 5 plus years, should there be a major capital investment for
equipment).
Restrict the option for auto -renewal. Instead, allow a 90-day renewal notice from the
waste hauler to the resident, and a 60-day window for the customer to respond to the
waste hauler.
Include a clause that would allow residents to call the City's Sanitation staff directly, should
there be any service issues or concerns, as well as allowing for residents to call the waste
hauler directly.
Effective next fiscal year, provide a quarterly LTC report that would list complaints from
customers, identified issues, and turnaround time to remedy the issue(s).
Include language to allow for property manager credentials to be accepted by the City in
the same manner as resident credentials for the purposes of drop off of bulk waste, or
bulk pickups on behalf of the resident (and if possible, find ways to make it easier for multi-
family with more than 9 units to have curb bulk pickup).
As the RFQ process takes place, the Administration will require that the month -to -month Non -
Exclusive Franchise Waste Contractor Agreements and accompanying franchise fees, in kind
services, and other program contributions set to expire on September 30, 2023, be extended
from October 1, 2023, until such time as the solicitation process of the RFQ is completed and
the new contracts are in place.
SUPPORTING SURVEY DATA
Results from the 2022 Resident Survey related to the City's perception and satisfaction show
an overall approval of 67.4% and rated the City as a good place to live.
FINANCIAL INFORMATION
Page 712 of 945
No fiscal impact.
CONCLUSION
The Administration recommends accepting the recommendation of the Finance and Economic
Resiliency Committee, at its March 31, 2023 meeting, to proceed with a Request For
Qualifications (RFQ) for the City's waste hauler services, and to extend the current contract for
Non -Exclusive Commercial Franchise Waste Services with Waste Management of Florida and
Waste Connections of Florida, Inc., set to expire on September 30, 2023, on a month-to;month
basis until such time the solicitation process of the RFQ is completed and a replacement
contract(s) is executed.
Applicable Area
Citywide
77 - u
No
Strategic Connection
Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality
entertainment destination.
Legislative Tracking
Public Works
ATTACHMENTS:
Description
Resolution
Page 713 of 945
RESOLUTION NO.2023-32833
A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF
MIAMI BEACH, FLORIDA, DIRECTING THE ADMINISTRATION TO ISSUE RFQ
2023-506-WG FOR THE SELECTION OF QUALIFIED FRANCHISE WASTE
HAULERS TO PROVIDE COMMERCIAL AND MULTIFAMILY RESIDENTIAL
WASTE COLLECTION AND DISPOSAL SERVICES ON A NON-EXCLUSIVE
BASIS WITH AN AMENDMENT TO THE RFQ DOCUMENT TO CAP
TERMINATION FOR CONVENIENCE FEES AT 15% FOR MULTI -FAMILY
RESIDENTIAL BUILDINGS WITH 9-24 UNITS; AND FURTHER, APPROVING
THE EXTENSION, ON A MONTH -TO -MONTH BASIS, THE CONTRACT TERM
FOR THE FOLLOWING AGREEMENTS UNTIL SUCH TIME AS NEW
FRANCHISE AGREEMENTS BECOME EFFECTIVE: (1) THE NON-EXCLUSIVE
FRANCHISE WASTE CONTRACTOR AGREEMENTS BETWEEN THE CITY
AND (A) WASTE MANAGEMENT INC. OF FLORIDA AND (B) WASTE
CONNECTIONS OF FLORIDA, INC. (COLLECTIVELY, THE "FRANCHISE
WASTE CONTRACTORS") AND (2) THE SERVICE AGREEMENT AMONG THE
CITY AND THE FRANCHISE WASTE CONTRACTORS FOR ADDITIONAL
SOLID WASTE COLLECTION SERVICES AND COLLECTION OF
RECYCLABLE MATERIALS AT CITY OWNED PROPERTIES, PARKS, RIGHTS
OF WAY, AND OTHER PUBLIC FACILITIES AND PROPERTIES; AND
FURTHER, AUTHORIZING THE CITY MANAGER, TO EXECUTE
AMENDMENTS TO THE FRANCHISE AGREEMENTS AND SERVICE
AGREEMENT MEMORIALIZING THE APPROVED TERM EXTENSION.
WHEREAS, on October 16, 2019, the Mayor and City Commission adopted Resolution
No. 2019-31056, extended the City's Non -Exclusive Franchise Waste Contractor Agreements
with Waste Management Inc. of Florida and Waste Connections of Florida, Inc. and new Service
Agreement for a period of three (3) years, commencing as of October 1, 2019, and expiring on
September 30, 2022; and
WHEREAS, the Public Works Department engaged MidAtlantic Solid Waste Consultants
MSW) to assist staff with evaluating the current agreement structure and to provide
recommendations for an open versus closed, exclusive versus non-exclusive waste contractor
paradigm; and
WHEREAS, at the April 29, 2022, Finance and Economic Resiliency Committee (FERC)
meeting, the City Administration presented MSW's findings, and, among them, MSW
recommended that the City transition to an exclusive franchise system; and
WHEREAS, a motion was made to expand the analysis and to come back to a future
meeting with the findings; and
WHEREAS, the Administration continued meeting with FERC on May 27, 2022, July 29,
2022, November 14, 2022, January 27, 2023, February 17, 2023, and lastly on March 31, 2023;
and
WHEREAS, parallel to the FERC discussions, the City Commission on July 20, 2022 via
Resolution No. 2022-32228, approved Public Works' request to extend, on a month -to -month
basis, the contract term of the Non-exclusive Commercial Franchise Waste Contractor Agreement
and Service Agreement with Waste Management Inc. of Florida, and Waste Connections of
Florida, Inc., for a period not to exceedAwelve months through September 30, 2023; and
WHEREAS, at the March 31, 2023, FERC meeting, Committee members made a motion
to proceed with a Request for Qualifications (RFQ) and provided additional guidance to consider
when drafting the RFQ; and
WHEREAS, at the May 17, 2023 the City Commission adopted Resolution No. 2023-
32617 accepting the March 31, 2023 FERC recommendation to proceed with a Request For
Qualifications (RFQ) for the City's waste hauler services to promote competition and ensure
residents and business in the City receive the best service possible; and
WHEREAS, at the July 26, 2023 City Commission meeting, Public Works brought forth a
request for approval to issue Request for Qualifications 2023-506-WG Franchise Waste
Contractors to provide multi -family residential and commercial waste collections and disposal, but
the item was deferred to the September 27, 2023 City Commission meeting and Public Works
was directed to continue discussions at FERC and PSNQL Committees; and
WHEREAS, at the July 28, 2023 FERC meeting, public comments were taken, and a
recommendation was made to have the Administration meet with existing and prospective
vendors to discuss public benefits, fleet vehicle requirements and other concerns raised with
regard to the draft RFQ that had been presented at the July 26, 2023 City Commission meeting;
and
WHEREAS, the Administration held a roundtable discussion with the industry
representatives (including Waste Management, Waste Connections and Waste Pro USA) on
August 17, 2023 and found common ground on issues of concern; and
WHEREAS, the Administration presented a new draft of RFQ 2023-506-WG at the
September 27, 2023 City Commission meeting that included the following key provisions:
Term of contracts: A maximum of 2-year contracts for Multi -Family 9-24 Units. All
other Multi -Family and Commercial accounts can have contracts of up to 5 years
or equal to the length of the city's current nonexclusive franchise agreement
No Auto-Renewal/Evergreen Clauses (except as provided immediately below)
Prior Notice to Customer/Broker of Expiration Date with Option to Renew. Hauler
must send 90-day notice and customer must respond within 60 days. In the event
that the Customer/Broker does not respond within the 60-day period, the contract
will automatically renew for an additional 1-year period, under the prior terms and
conditions
Cap of 8% on annual price increases for multi -family buildings with 9-24 units
Termination for convenience provision to allow 30-day notice for cancellation for
all customers. Franchise waste contractors may impose a reasonable premium
for the inclusion of such a termination right
Escalation of Customer Complaints provision allows customers to contact the City
directly if their issue is not resolved within 24 hours by the hauler.
Waste contractors must procure collection vehicles that have been in service for
not more than three (3) years and that are clean, sanitary, neat in appearance and
in good repair, prior to the commencement of the term. Average age of collection
vehicles in fleet at time of any renewal or extension may not exceed three (3) years.
The City shall have the right to inspect all collection vehicles at any time with or
without notice and to require that a collection vehicle be repaired or replaced as
necessary to ensure the highest level of service to the City's residents and
businesses. In this regard, each franchisee shall at all times have available to it,
reserve vehicles that are clean, sanitary, neat in appearance and in good repair
and which can be put into service within two (2) hours of any breakdown or
unsatisfactory inspection.
To allow all franchisees under the new franchise agreements to be awarded the
opportunity to compete for customers and ensure an orderly transition from the
existing paradigm, the existing franchisees will be required to phase out existing
customer contracts in three phases (each, a "Phase" and collectively, the
Phases"). At the time of issuance of this RFQ, the City intends the following: (1)
Phase 1 will include all existing commercial and multi -family residential contracts
entered into by franchisees on or after January 1, 2023 as well as contracts entered
into prior to January 1, 2023 that have an expiration date (original term or renewal
term) earlier than July 1, 2024; (2) Phase 2 will include all existing commercial and
multi -family residential contracts entered into during the 2022 calendar year as well
as contracts entered into prior to January 1, 2022 that have an expiration date
original term or renewal term) prior to July 1, 2025; and (3) Phase 3 will include
all other existing commercial and multi -family residential contracts. There will be
an open solicitation period in respect of each Phase as follows:
Phase 1 — March 1, 2024 through June 30, 2024
Phase 2 — March 1, 2025 through June 30, 2025
Phase 3 — March 1, 2026 through June 30, 2026
The commencement date for contracts entered into during each of the foregoing
solicitation periods will be as follows:
Phase 1 — July 1, 2024
Phase 2 — July 1, 2025
Phase 3 — July 1, 2026
During each such solicitation period, franchise waste contractors shall be free to
solicit and sign contracts with customers and brokers in respect of waste collection
agreements with terms that will commence upon the commencement dates for
contracts entered into with respect to the applicable solicitation period. The
commencement date of the solicitation period for Phase 1 as well as the
commencement date for contracts entered into during the Phase 1 solicitation
period will be re -confirmed once the RFQ is concluded and new non-exclusive
franchise agreements are executed, to ensure there is sufficient time for existing
waste haulers to provide written notice to existing customers (see below) and an
open solicitation period of not less than 120 days. The commencement date for
the Phase 2 and Phase 3 solicitation periods as well as the commencement date
for contracts entered into during such solicitation periods shall not be adjusted.
Existing franchise waste haulers at the time of issuance of this RFQ shall provide
written notice to customers and brokers included in each Phase by certified mail,
return receipt requested, not less than sixty (60) days prior to the commencement
date of the applicable open solicitation period advising that they may terminate
their agreements without payment of liquidated damages or early termination fees
of any kind if they desire to contract with a different waste hauler during the
solicitation period. If a customer or broker elects to remain with its existing waste
hauler, the waste hauler and the customer or broker will enter into a new
agreement that includes terms consistent with the requirements of this RFQ, the
City Code and the franchise agreement; and
WHEREAS, at its September 27, 2023 meeting, the City Commission discussed some of
the key terms included in the RFQ; and
WHEREAS, a motion was made by Commissioner Richardson, seconded by
Commissioner Fernandez and unanimously approved by the Mayor and City Commission to
amend the draft RFQ to include a cap of 15% on the premium that could be imposed by franchise
waste contractors for the inclusion of a termination for convenience clause in agreements for
multi -residential buildings with 9-24 units; and
WHEREAS, the Administration requested that the Commission authorize the month -to -
month extension of the non-exclusive Franchise Waste Contractor Agreements and
accompanying franchise fees, in -kind services, and other program contributions set to expire on
September 30, 2023 until such time as the solicitation process of the RFQ is completed and the
new contracts are in place.
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 directs the Administration to issue RFQ 2023-506-WG for the selection of
qualified franchise waste haulers to provide commercial and multifamily residential waste
collection and disposal services on a non-exclusive basis with an amendment to the RFQ
document to cap termination for convenience fees at 15% for multi -family residential buildings
with 9-24 units; and further, approves the extension, on a month -to -month basis, the contract term
for the following agreements until such time as new franchise agreements become effective: (1)
the Non -Exclusive Franchise Waste Contractor Agreements between the City and (a) Waste
Management Inc. of Florida and (b) Waste Connections of Florida, Inc. (collectively, the
Franchise Waste Contractors") and (2) the Service Agreement among the City and the Franchise
Waste Contractors for additional solid waste collection services and collection of recyclable
materials at City owned properties, parks, rights of way, and other public facilities and properties;
and further, authorizes the City Manager to execute amendments to the Franchise Agreements
and Service Agreement memorializing the approved term extension.
PASSED AND ADOPTED this a? 7 day of 5P Ptkr2023.
ATTE
OCT 21 2023
RAFA L E. G NADO, CITY CLERK DAN GELBER, MAYOR
APPROVED AS TO
FORM & LANGUAGE
FOR EXECUTION
o-2- 23
City Attorney Q Date
1.
Competitive Bid Reports - R2 B
MAMIBEACH
COMMISSION MEMORANDUM
TO: Honorable Mayor and Members of the City Commission
FROM: Alina T. Hudak, City Manager
DATE: September 27, 2023
SUBJECT: REQUEST APPROVAL TO ISSUE REQUEST FOR QUALIFICATIONS (RFQ) 2023-506-WG
FRANCHISE WASTE CONTRACTORS TO PROVIDE RESIDENTIAL AND COMMERCIAL WASTE
COLLECTIONS AND DISPOSAL.
RECOMMENDATION
It is recommended that the Mayor and City Commission of the City of Miami Beach, Florida, authorize the issuance of Request for
Qualifications (RFQ) 2023-506-WG for franchise waste haulers to provide multi -family residential and commercial waste collection
and disposal. The current customer contract provisions in the RFQ document are a combination of staffs recommendations and
those of the Finance and Economic Resiliency Committee (FERC) through the July Committee meetings. At time of print, this item
was pending Committee review.
The City currently has two (2) franchise agreements issued to solid waste contractors for residential and commercial solid waste
collection and disposal. The term of the franchise agreements with the City's current franchise waste contractors expired on
September 30, 2022, and have been extended on a month -to -month basis until September 30, 2023. The Administration is
seeking an extension until such time as the new franchise agreements to be awarded pursuant to the contemplated RFQ become
effective.
On October 16, 2019, the Mayor and City Commission adopted Resolution No. 2019-31056, extending a renewal of the City's Non -
Exclusive Franchise Waste Contractor Agreements and new Service Agreement for a period of three (3) years, commencing as of
October 1, 2019,. and expiring on September 30, 2022.
The Public Works Department engaged MidAtlantic Solid Waste Consultants (MSW) to assist staff with evaluating the current
agreement structure and to provide recommendations for an open versus closed, exclusive versus non-exclusive Franchise Waste
Contractor Agreement.
At the April 29, 2022, Finance and Economic Resiliency Committee (FERC) meeting, the City Administration presented MSW's
findings, and, among them, MSW recommended that the City transition to an exclusive franchise system. A motion was made to
expand the analysis and to come back to a future meeting with the findings. The Administration continued meeting with FERC on
May 27, 2022, July 29, 2022, November 14, 2022, January 27, 2023, February 17, 2023, and lastly on March 31, 2023.
Parallel to the FERC discussions of what would be the future terms of a non-exclusive commercial franchise waste contractor
agreement and service agreements, a motion was made for Public Works to place a request to extend, on a month -to -month basis,
the contract term of the Non-exclusive Commercial Franchise Waste Contractor Agreement and Service Agreement with Waste
Management Inc. of Florida, and Waste Connections of Florida, Inc., for a period not to exceed September 30, 2023. The City
Commission approved this request via Resolution No. 2022-32228.
At the March 31, 2023, FERC meeting, Committee members made a motion to proceed with a Request for Qualifications (RFQ)
and provided additional guidance to 'consider when drafting the RFQ, listed below:
Have the Administration ensure no less than three waste haulers (with additional waste haulers to serve as alternates to replace
any primary waste hauler that drops out).
Consider an annual percentage increase cap and a hardship waiver that would allow the waste hauler to exceed the cap's limit
depending on extenuating circumstances) with the City Commission's approval.
Determine the term duration of the contracts between customers and haulers (whether a maximum of 2 years or 5 plus years,
should there be a major capital investment for equipment).
Restrict the option for auto -renewal. Instead, allow a 90-day renewal notice from the waste hauler to the resident and a 60-day
window for the customer to respond to the waste hauler.
Include a clause that would allow residents to call the City's Sanitation staff directly, should there be any service issues or
concerns, as well as allowing for residents to call the waste hauler directly.
Effective next fiscal year, provide a quarterly LTC report that would list complaints from customers, identified issues, and'
turnaround time to remedy the issue(s).
Include language to allow for property manager credentials to be accepted, by the City in the same manner as resident credentials
for the purposes of drop off of bulk waste or bulk pickups on behalf of the resident (and if possible, find ways to make it easier for
multifamily with more than nine units to have curb bulk pickup).
As the RFQ process takes place, the Administration will require that the month -to -month non-exclusive Franchise Waste Contractor
Agreements and accompanying franchise fees, in -kind services, and other program contributions set to expire on September 30,
2023, be extended from October 1, 2023, until such time as the solicitation process of the RFQ is completed and the new contracts
are in place.
At the May 17, 2023 City Commission meeting, Public Works brought forth a Resolution accepting the March 31, 2023 FERC
recommendation to proceed with a Request For Qualifications (RFQ) for the City's waste hauler services and to extend the current
contracts for non-exclusive commercial franchise waste services (Item R7G), potentially promoting competition and ensuring
residents and business in the City receive the best service possible. A motion was made to approve the request via Resolution No.
2023-32617. Commission directed that while the RFQ draft is being finalized by the Administration, the item be brought to the
FERC meeting for additional review and feedback.
At the July 26, 2023 City Commission meeting, Public Works brought forth a Request for Qualifications 2023-506-WG Franchise
Waste Contractors to provide residential and commercial waste collections and disposal. A motion was made to defer the item to
the September 27, 2023 City Commission meeting and to continue the discussion. at FERC and PSNQL Committees.
At the July 28, 2023 FERC meeting, public comments were taken, and some of the issues raised from the public were: contractual -
required public benefit, sunset of contract, age of trucks, termination for convenience, length of contract, 8% price cap, broker
impacts, and not allowing auto renewal. A recommendation was made to have the Administration meet with vendors, and to work
with the industry to discuss public benefits and fleet vehicle requirements.
A roundtable discussion with the industry (including Waste Management, Waste Connections and Waste Pro USA) was had on
August 17, 2023. The focus of the conversation related to the RFQ and six customer contract provisions and or concerns brought
forth by the haulers to City Administration. These were:
1) Term of customer contracts:
The original RFQ had the 2-year contract limitation currently applying for 25 units and above (and not 9-24 units) this item
has been corrected.
2) No auto renewal evergreen clause and proposed termination by convenience clause:
There is a 90-day contract renewal notification notice provision from the waste hauler to the customer, and a 60-day response
time (and set to convert to a month -to -month for non -responders). It was discussed whether the RFQ should allow for a grace
period.
3) Brokers clause:
Currently not in the upcoming Committee agendas for discussion
4) 8% price cap
Related to 9-24 family, excluding 25 units and up, high rises residential and commercial.
5)Termination for convenience:
There have been discussions at Commission about having a 30-day termination notice instead, how it would affect pricing,
and whether there should be a fee for a with or without termination option (the current contract offers a termination for
convenience fee).
6) Escalation of customer complaints:
There were no concerns raised
Aside from the six customer provisions, industry members raised concerns over the commercial collection/fleet vehicle
requirements. Initially, the clause stipulated vehicles needed to be brand new, then later modified to reflect three years. This topic
will 'likely continue to be discussed at Committee following the printing of this memorandum. Lastly, the roundtable discussion
concluded with a proposed in -kind, public benefit requirement that will potentially come up at the September's FERC and PSNQL
Committees, as well as expectedfeedback to be added to the draft RFQ, which will go to City Commission for approval. ANALYSIS
Franchisee
and Alternate Franchisee Selection: Based
on the initial direction provided by the City Commission, the intent of this RFQ is to promote competition to ensure residents and
businesses in the City, receive the best service possible with reasonable pricing and contract terms. Toward this goal, the City
intends to award three _ (3) or more franchise waste contractor licenses and two or more (2) alternates to substitute a
franchise waste hauler that is acquired by another franchise waste hauler or whose contract is terminated.
The franchisees and alternate franchisees shall be selected from the applicant pool based upon a determination of such
franchisees' qualifications as set forth in Section 90-229(a) of the City Code. Notwithstanding the foregoing, the City Commission
may award fewer franchise waste contractor licenses if the City Commission determines, in its sole discretion (and
having considered .the recommendation of the City Manager), that there are insufficient qualified applicants to award three (3)
franchise waste contractor licenses and/or alternates.
Replacement Agreement:
In order to consider a replacement agreement, RFQ seeks responses from qualified firms interested in becoming franchise waste
haulers and providing multi -family residential and commercial waste collection and disposal.
The requirements of the City's Solid Waste Ordinance, as codified in Section 90, Articles 1-4, of the City Code (and as same may
be amended from time to time), shall apply to any franchise agreement resulting from this RFQ. To give effect to some of the
concerns the City Commission seeks to address pursuant to this RFQ, the Administration recommends amending Section 90-
227 (Handling of Complaints) and Section 90-230 (Term of franchise agreements; initial term; renewal term) of the City Code.
Specifically, Section 90-227 will be amended to require waste contractors to maintain records documenting customer
communications regarding service 'issues or complaints and provide quarterly reports to the sanitation division relating to
customer complaints and their handling. In addition, Section 90-230 will be amended (1) to provide for a renewal term of franchise
agreements with waste haulers of up to five years (instead of three), (2) to require that haulers structure agreements with their
customers and brokers be coterminous with their franchise agreements and (3) to provide for a 120-day open solicitation period
prior to the commencement of the new franchise agreements awarded following this RFQ and at the expiration of each 5-year
franchise agreement term or renewal term to allow haulers to solicit and sign accounts with customers and brokers during such
period.
Staff are recommending the following language as it relates to the customer contract provisions of the RFP for section D.
1) Term of contracts: A maximum of 2-year contracts .for Multi -Family 9-24 Units. All other Multi -Family and Commercial accounts
can have contracts of up to 5 years or equal to the length of the city's current nonexclusive franchise agreement.
2) No Auto-Renewal/Evergreen Clauses except as provided in item 3 below.
3) ' Prior Notice to Customer/Broker of Expiration Date with Option to Renew. Hauler must send 90-day notice and customer must
respond within 60 days. In the event that the. Customer/Broker does not respond within the 60-day period, the contract will
automatically renew for an additional 1-year period, under the prior terms and conditions.
4) Caps on annual increases are applicable to Multi 'Family 9-24 units. The cap is 8% annually.
5) Termination for convenience provision to allow 30-day notice for cancellation of customer contracts. This shall include a
reasonable premium for haulers to charge for this provision.
6) Escalation of Customer Complaints provision allows customers to contact the City directly if their issue is not resolved within
24 hours by the hauler.
Staff is recommending the following language for section E of the contract.
Collection Vehicles
Waste contractors must procure collection vehicles that have been in service for not more than three (3) years and that are clean,
sanitary, neat in appearance and in good repair, prior to the commencement of the term (or any renewal term) of the franchise
agreement. This requirement is a condition precedent to the commencement of services to customers. Failure to comply with this
requirement will constitute a default and the City shall have all remedies available pursuant to. the franchise agreement, including,
without limitation the right to terminate the franchise. The City shall have the right to inspect all collection vehicles at any time with
orwithout notice and to require that a collection vehicle be repaired or replaced as necessary to ensure the highest level of service
to the City's residents and businesses. In this regard, each franchisee shall at all times have available to it, reserve vehicles. that
are clean, sanitary, neat in appearance and in good repair and which can be put into service within two (2) hours of any breakdown
or unsatisfactory inspection.
Staff is recommending the following language for section F of the contract.
OPEN SOLICITATION PERIOD
There will be an open solicitation periodduring the last one hundred twenty (120) days of the term of franchise agreements including
agreements in place at the time this RFQ is issued). During such solicitation period, franchise waste contractors shall be free
to solicit and sign contracts with customers and brokers in respect of waste collection agreements with terms that will commence
upon the expiration of the expiring franchise agreements. With regard to customer contracts in effect at the time this RFQ
is issued that will not expire -by or before the effective date for new franchise agreements, waste haulers shall provide written notice
to such customers by certified mail, return receipt requested, not less than one hundred eighty (180) days prior to the expiration
of their franchise agreements advising that they may terminate their agreements without payment of liquidated damages
or early termination fees of any kind if they desire to contract with a different waste hauler during the solicitation period for a term
that commences when the new franchise agreements become effective.
Additionally, staff is currently reviewing the concept of splitting the contract sunsetting periods into a phased in approach. The
phases will include contracts that expire in 2024 and contracts that expire in 2025 or later, so that the open solicitation process
doesn't occur at the same time for all contracts. Staff has asked both of the current commercial haulers to provide a list of dates of
all of their expiring contracts for their multi -family and commercial accounts. If staff is unable to obtain this information, a more
rudimentary recommendation (le by odd or even address number or split the city geographically) as to the process for phasing the
new franchise contract enrollments can be made.
A draft of the RFQ is attached.
Following the receipt of proposals, an Evaluation Committee will review proposals in accordance with the criteria established in the
RFQ. The selection of firm(s) with whom the City may enter into negotiations shall be based on the criteria established in the RFQ.
SUPPORTING SURVEY DATA
Results from the 2022 Resident Surrey related to the City's perception and satisfaction show an overall approval of 67.4%, and
rated the City as a good place to live.
FINANCIAL INFORMATION
The impact is over $7 million dollars in revenue generated from commercial franchise fees and public benefit services.
CONCLUSION
It is recommended that the Mayor and Commission of the City of Miami Beach, Florida, authorize the issuance of RFQ 2023-506-
WG for franchise waste contractors to provide multi -family residential and commercial waste collection and disposal.
Applicable Area
Citywide
Is this a "Residents Right to Does this item utilize G.O.
Know" item,_pursuant to Bond Funds?
City Code Section 2-14?
No No
Strategic Connection
Prosperity - Market and promote Miami Beach as a world class arts, culture, and quality entertainment destination.
Legislative Tracking
Public Works
ATTACHMENTS:
Description
RFQ 2023-506-WG Franchise Waste Haulers Commercial and Residential
OIG
APPENDIX
D
Public Works Department
1700 Convention Center Drive, 4th Floor
Miami Beach, FL 33139
TO: Joseph Centorino, Inspector General
FROM: Joe Gómez, PE, TTCP, F. FES
DATE: March 11, 2024
SUBJECT: Review of Process for Considering Waste Hauler Options for Delivery of Waste Collection
Services for Commercial Accounts and Multi-Family Accounts Exceeding Eight Units
OIG No.: Pending
Thank you for the opportunity to comment on the draft report for the subject matter. In general, the
report acknowledges that staff cooperated fully, voluntarily and provided timely information as requested
by the OIG. However, I believe the OIG’s report is fundamentally flawed as no Elected Officials that were
involved in the FERC committee meetings and commission discussions were interviewed. This is an
important omission as they ultimately provided input and direction to staff during the almost 18 months
of committee and commission meetings. The following are my detailed comments:
1. Page 1, Second Paragraph: The statement that the Administration recommended that the City
move from a multi-hauler system to an exclusive waste hauler system paints a picture that is
misleading. The consultant recommended moving to a single hauler system and staff did present
this as a recommendation. However, the report fails to highlight that other options were also
presented as part of the April 29, 2022 presentation including reverting to an Open Market and
maintaining the Status Quo.
2. Page 2, Second Paragraph, 4th Sentence: The statement that “The full Commission may not have
understood the positions of the staff based on information they were presented with when it
made its decision on which service delivery method it ultimately chose” is conjecture on the part
of the OIG. After eight FERC committee meetings and four Commission meetings, to suggest that
our Elected Officials were not fully informed is not factual.
3. Page 5, Slide: The OIG does not present the next to last slide in the deck, which specifically
provides Other Options, for the committee to consider, as noted in item 1 above.
4. Page 6, 2nd to Last Paragraph: The statements by the OIG clearly support the staff’s position that
the FERC Committee instructed us to go back and do further research as they were not satisfied
with the presentation, which under the City’s legislative process is within the purview of the
Committees to request additional information.
5. Page 8, Minutes of the July 29, 2022 meeting: Clearly, the direction of the FERC Committee was
to remove the single hauler exclusive agreement from further consideration.
6. Page 9, The Changed Staff Recommendation: The OIG suggestion that there is no public record
of Commission members that were not fully informed is conjecture on their part. By the OIG’s
own documentation during the period from April 29, 2022 to September 27, 2023, the item was
heard at FERC eight times and sent to Commission seven times, with four of those times where it
was actual heard and discussed at length.
7. Page 10, Second to Last Paragraph: As correctly documented by the OIG, the agenda item to
move forward with the selection of Non-Exclusive Waste hauler franchises, was passed
unanimously by the Commission 7-0.
8. Page 12, Items 1-6, and Second Paragraph: Irrespective of the comments by the Waste Haulers
on the recommended six provisions, we do not consider these escalators of costs but rather
protections for our residents.
9. Page 15, Title: A Flawed RFQ: This title is misleading at best, based on the opinion of the OIG
without any basis in facts. Additionally, the paragraph goes on to say that the City’s Procurement
Department had little input during the development of the RFQ. The fact is that the staff always
involves Procurement during the development of any RFQ or RFP from a procedural and
contractual perspective. The technical elements of any RFQ are developed by staff, including the
City Attorney’s office with input from the Procurement office as necessary.
10. Page 17, Third Paragraph, First Sentence: “The issue cried out for an open, thorough, and fair
assessment of the City’s waste hauler franchise options.” This statement is dramatic and has no
place in a “fact finding” report that is intended to provide procedural improvements.
It should be noted that the City of Miami Beach has been operating under a Non-Exclusive Franchise
Agreement model for mutli-family of nine or more and commercial properties for 33 years. Various
revisions have been made to the agreements over the course of 3 decades whereby the City has
successfully provided a fair and competitive process.
In summary, I believe this report contains conjecture, speculation and opinions and lacks in substantive
recommendations. Additionally, it is fundamental flawed as an investigative tool since none of the Elected
Officials that were sitting members of the FERC committee or commission were interviewed for this
report.