ANALYSIS:
The Non-exclusive Franchise Agreements have been subject to a historical debate as to how many franchise haulers the City should have. The prior service agreement commenced on October 1, 2008. In 2011, an RFQ was issued after one of the existing four vendors was bought by another reducing the number to three.
In May of 2012, Resolution 2012-27904 accepted exercising the renewal of the existing contract with the remaining three haulers after contract terms increased collecting an additional $390,000 per year plus $25,000 dedicated to environmental programs.
In November of that year, another of the vendors was acquired leaving only two haulers. A new RFQ was issued in 2013. After negotiations with the top three ranking contractors, an agreement was entered into in January 2015, which defined the initial term of the contract commencing retroactively to October 1, 2014 and terminating on September 20, 2019, with an optional renewal of up to three (3) years.
The purpose of the franchise agreements is to ensure that high quality service is provided for both waste and recycling. There is a franchise fee consisting of eighteen percent (18%) of the contractor's gross revenues as stipulated in Section 5, Franchise Consideration of the Non-exclusive Franchise Agreement.
Attached is both the executed Non-exclusive Franchise Agreement executed by the contractors separately as well as the collectively executed additional services agreement wherein Exhibit A identifies public services to be provided by the contractors including monetary requirements for specific purposes.
These agreements allow the franchise contractors to enter into separate agreements with commercial and residential entities within the City of Miami Beach. Thus, all costs and services provided to the City are passed through to the end users.
The Administration believes that the current providers are performing at an acceptable level. The current contractors have expressed their desire to renew the existing Non-exclusive Franchise Agreements and have demonstrated a willingness to enhance the public services currently provided. This referral was placed to request authorization of the Commission to negotiate an extension to the existing contract.
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