| | | | | | | |  | Resolutions - C7 Q
COMMISSION MEMORANDUM |
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| | | | | | | | | TO: | Honorable Mayor and Members of the City Commission | | | FROM: | Alina T. Hudak, City Manager | | | DATE: | July 20, 2022 | | | |
| | SUBJECT: | A RESOLUTION OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE CITY'S FINANCE AND ECONOMIC RESILIENCY COMMITTEE, AT ITS APRIL 29, 2022 MEETING, TO EXTEND, ON A MONTH-TO-MONTH BASIS, THE CONTRACT TERM FOR THE FOLLOWING AGREEMENTS, FOR A PERIOD NOT TO EXCEED TWELVE (12) MONTHS FROM THEIR CURRENT EXPIRATION DATE OF SEPTEMBER 30, 2022: (1) THE NON-EXCLUSIVE FRANCHISE WASTE CONTRACTOR AGREEMENTS BETWEEN THE CITY AND (I) WASTE MANAGEMENT INC. OF FLORIDA AND (II) WASTE CONNECTIONS OF FLORIDA, INC. (THE "FRANCHISE WASTE CONTRACTORS") FOR RESIDENTIAL SOLID WASTE COLLECTION AND DISPOSAL, AS WELL AS RECYCLING SERVICES FOR MULTI-FAMILY RESIDENCES AND FOR COMMERCIAL PROPERTIES IN THE CITY; 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, IN ORDER TO PROVIDE THE ADMINISTRATION WITH AN OPPORTUNITY TO CONDUCT PUBLIC OUTREACH AND PRESENT TO THE CITY COMMISSION THE RECOMMENDED SERVICE OPTIONS TO BE INCLUDED IN THE PROCUREMENT PROCESS FOR THE NEW AGREEMENTS; AND FURTHER, AUTHORIZING THE CITY MANAGER TO EXECUTE AMENDMENTS TO THE FRANCHISE AGREEMENTS AND SERVICE AGREEMENT, MEMORIALIZING THE APPROVED TERM EXTENSION, FOR A PERIOD NOT TO EXCEED ONE YEAR, THROUGH SEPTEMBER 30, 2023. |
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| | | | | | | | RECOMMENDATION
| | The Administration recommends accepting the recommendation of the City’s Finance and Economic Resiliency Committee, at its April 29, 2022 meeting, to extend, on a month to month basis, the contract term for the following agreements, for a period not to exceed twelve (12) months from their current expiration date of September 30, 2022: (1) the Non-exclusive Franchise Waste Contractor Agreements for residential solid waste collection and disposal for multifamily 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 (2) or more units, and for commercial properties in the City (collectively, “the Franchise Agreements”) with (i) Waste Management Inc. of Florida and (ii) Waste Connections of Florida, Inc; and (2) the Service Agreement among the City, Waste Connections of Florida, Inc. and Waste Management Inc. of Florida for additional solid waste collection services and collection of recyclable materials at City owned properties, parks, rights of way, and other public facilities and property(ies) (the “Service Agreement”), in order to provide the Administration with the opportunity to conduct public outreach, to determine the residents’ preference for waste collection services and, together with the recommendations of the City’s consultant, present to the City Commission the recommended service options to be included in the procurement process for the new agreements; and further, authorizing the City Manager to execute amendments to the Franchise Agreements and Service Agreement, memorializing the approved term extension, for a period not to exceed September 30, 2023. solution. |
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| | | | | | | | BACKGROUND/HISTORY
| In 2013, the City issued a Request for Qualifications (RFQ) for a franchise for waste haulers. Pursuant to Resolution No. 2014-28681, the City entered into a Non-Exclusive Franchise Waste Contractor Agreement with (1) Waste Management Inc. of Florida, and (2) Waste Connections of Florida, Inc. (f/k/a Progressive Waste Solutions of FL, Inc.) (the “Franchise Waste Contractors”) and further, the City entered into a separate Service Agreement with the Franchise Waste Contractors for municipal solid waste and recycling services.
The City’s Non-Exclusive Franchise Waste Contractor Agreements, and the related Service Agreement, had an initial term of five (5) years, effective as of October 1, 2014, and contemplated a renewal term, at the City’s option, of up to three (3) years.
On July 31, 2019, the Finance and Citywide Projects Committee (FCWPC) discussed the renewal, and recommended that the item be forwarded to the City Commission for its consideration.
On July 31, 2019, the FCWPC further recommended that the City Commission increase the franchise fee set forth in Section 90-221 of the City Code, from the current franchise fee of eighteen percent (18%) to twenty percent (20%) of the franchisee’s monthly gross revenues.
On September 11, 2019, the Mayor and City Commission adopted Resolution No. 2019-30981, pursuant to Section 90-221 of the City Code, increasing the franchise fee paid to the City by each Contractor, from eighteen percent (18%) of the Contractor’s monthly gross receipts, to twenty percent (20%) of the Contractor’s monthly gross receipts.
On September 11, 2019, the Mayor and City Commission adopted Resolution No. 2019-30982, extending the existing Franchise Agreements on a month-to-month basis for a maximum period of six (6) months, and providing that the renewal of the Franchise Agreement for the remainder of the three (3) year renewal term provided under Section 90-230(b) of the City Code, shall be subject to negotiation of mutually acceptable terms for a new Service Agreement, with additional public benefits to be provided to the City.
On October 16, 2019, the Mayor and City Commission adopted Resolution No. 2019-31056, extending the 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.
In the interim, the Sanitation Division of 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.
On April 29, 2022, the Public Works Department and its consultant presented its assessment to the Finance and Economic Resiliency Committee. Following the presentation, members of the Committee continued the discussion and made a motion to bring to Commission, a recommendation to extend the City's current agreement to a month-to-month basis for consideration; and for the next Committee meeting: provide additional content to the analysis presented and to invite the City's waste haulers to participate in the discussion. |
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| | | | | | | | SUPPORTING SURVEY DATA
| | Results from the 2019 Resident Survey regarding overall City rating show that 69% of residents rate neighborhood cleanliness as excellent/good and 58% for business and commercial areas. |
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| | | | | | | | CONCLUSION
| | The Administration recommends accepting the recommendation of the City’s Finance and Economic Resiliency Committee, at its April 29, 2022 meeting, to extend, on a month to month basis, the contract term for the following agreements, for a period not to exceed twelve (12) months from their current expiration date of September 30, 2022: (1) the Non-exclusive Franchise Waste Contractor Agreements for residential solid waste collection and disposal for multifamily 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 (2) or more units, and for commercial properties in the City (collectively, “the Franchise Agreements”) with (i) Waste Management Inc. of Florida and (ii) Waste Connections of Florida, Inc; and (2) the Service Agreement among the City, Waste Connections of Florida, Inc. and Waste Management Inc. of Florida for additional solid waste collection services and collection of recyclable materials at City owned properties, parks, rights of way, and other public facilities and property(ies) (the “Service Agreement”), in order to provide the Administration with the opportunity to conduct public outreach, to determine the residents’ preference for waste collection services and, together with the recommendations of the City’s consultant, present to the City Commission the recommended service options to be included in the procurement process for the new agreements; and further, authorizing the City Manager to execute amendments to the Franchise Agreements and Service Agreement, memorializing the approved term extension, for a period not to exceed September 30, 2023. solution. |
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| | | | | | | | | 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 | |
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| | | | | | | | Strategic Connection
| | Neighborhoods - Enhance the beautification, physical appearance and cleanliness of neighborhoods. |
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