| | | | | | | |  | Resolutions - R7 M
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Jimmy L. Morales, City Manager | | | DATE: | September 11, 2019 | | | | 5:05 p.m.
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE
CITY OF MIAMI BEACH, FLORIDA, APPROVING AN EXTENSION OF
THE CITY'S EXISTING NON-EXCLUSIVE FRANCHISE WASTE
CONTRACTOR AGREEMENTS AND SERVICE AGREEMENT WITH,
RESPECTIVELY: 1) WASTE MANAGEMENT INC. OF FLORIDA; AND 2)
PROGRESSIVE WASTE SOLUTIONS OF FL, INC., ON A MONTH-TO-MONTH BASIS, COMMENCING ON OCTOBER 1, 2019, FOR A PERIOD
NOT-TO-EXCEED SIX (6) MONTHS; AUTHORIZING THE MAYOR AND
CITY CLERK TO EXECUTE AN AMENDMENT TO THE FOREGOING
AGREEMENTS WITH EACH OF THE CITY'S FRANCHISE WASTE
CONTRACTORS, TO MEMORIALIZE THE FOREGOING EXTENSION
AND THE INCREASE OF THE CITY'S FRANCHISE FEE, AS APPROVED
BY THE CITY COMMISSION PURSUANT TO RESOLUTION NO. 2019-
; AND FURTHER, DIRECTING THE ADMINISTRATION TO
NEGOTIATE A NEW SERVICE AGREEMENT WITH THE
FRANCHISEES, SUBJECT TO FINAL APPROVAL THEREOF BY THE
CITY COMMISSION, AT WHICH TIME THE CITY COMMISSION SHALL
ALSO DETERMINE WHETHER TO RENEW THE EXISTING FRANCHISE
AGREEMENTS FOR THE REMAINDER OF THE RENEWAL TERM
PROVIDED IN SECTION 90-230(B) OF THE CITY CODE.
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| | | | | | | | RECOMMENDATION
| | 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. |
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| | | | | | | | ANALYSIS
| The City of Miami Beach has two franchise agreements with Progressive Waste Solutions of FL., Inc. and Waste Management Inc. of Florida for waste collection, disposal, and recycling services.
The existing agreement with the franchise haulers are set to expire on September 30, 2019. Prior to the expiration of the Initial Term of the franchise, the City Commission may choose, in its sole discretion, to renew the franchise for a renewal term of up to an additional three (3) years.
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 No. 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 agreement 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 which has been recommended to be increased to twenty percent (20%) by the Finance and Citywide Projects Committee at its meeting on July 26, 2019.
Attached is the current executed Non-exclusive Franchise Agreement executed by the contractors separately, as well as the collectively executed additional services agreement (Exhibit A, identifies the current public services being provided by the contractors, including monetary requirements for specific purposes).
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| | | | | | | | CONCLUSION
| | The Resolution approves renewal of the existing franchise agreements subject to and conditional upon the Administration's successful negotiation of a new service agreement with the contractors. In the meantime, the Administration requests that the existing franchises and service agreement be extended on a month-to-month term, pending negotiations on six (6) months, whichever comes first. |
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Public Works |
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