Item Coversheet

OLD BUSINESS  2.

COMMITTEE MEMORANDUM

TO: Finance and Economic Resiliency Committee Members


FROM:
Alina T. Hudak, City Manager


DATE: November 14, 2022


SUBJECT:DISCUSS THE SOLID WASTE COMMERCIAL FRANCHISE HAULER PRESENTATION

HISTORY:

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 October 1, 2019 and expiring on September 30, 2022.

ANALYSIS:

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.

 

At the April 29, 2022, Finance and Economic Resiliency Committee (FERC) meeting, the Public Works Department and its consultant presented their analysis via a PowerPoint presentation.   At the conclusion of the presentation, a motion was made by the Chair to have the item brought back to the committee, and to invite waste hauler businesses to comment on the analysis.  Additionally, a motion was made to have the waste hauler franchise agreements brought to the City Commission to consider extending it on a month-to-month basis past the expiration date of September 30, 2022.

 

At the July 29, 2022, FERC meeting, the Public Works Department provided an updated PowerPoint presentation.  At the conclusion of the presentation comments from the public and waste haulers were heard. They expressed their opinions about the pros and cons of having an exclusive vs. non-exclusive franchise contract, particularly with regards to the fees for small condominiums.  A motion was passed by the Committee to continue to research non-exclusive franchise agreements and possible pricing controls, to consider regulating brokers, and to advertise a Request for Proposals or Qualifications (RFP/RFQ), as per Section 90-229 of the City Code.  The Committee also recommended that whoever are awarded with a franchise agreement that they do not merge with another franchisee during the duration of the contract.  A motion was made to come back in October to provide an update on discussions with the haulers and recommendations and/or modifications to the current franchise agreements that will better serve the residents of Miami Beach.

 

On August 26, 2022, the Public Works Department held a roundtable discussion with the current providers, Waste Management and Waste Connections and other haulers including, Ojito Waste, Great Waste and Recycling, Coastal Waste and Recycling and Waste Pro.  The purpose of the meeting was to discuss what a new iteration of an RFP or RFQ would entail going forward and what items they would prefer to see included or removed from the agreement; meeting minutes attached (Exhibit B).  A period of two weeks after the meeting was provided to allow for written comments. Only one written comment was received (Exhibit C).

 

STATUS UPDATE:

At the July 20, 2022, City Commission meeting, the Commission approved a month-to-month extension for up to 12 months commencing October 1, 2022, and expiring on September 30, 2023, to allow the Administration sufficient time to procure one or more new Commercial Waste Hauler Franchise Agreements, via Resolution No. 2022-32227.

CONCLUSION:

The attached presentation (Exhibit A) with recommendations is presented to the members of the Finance and Economic Resiliency Committee members for discussion and 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:
DescriptionType
Exhibit A- Updated Waste Hauler Presentation (FERC 11092022)Other
Exhibit B - Roundtable Meeting MinutesOther
Exhibit C - Letter from Waste Management Inc.Other
Exhibit D - Technical Memo From MSWOther