AN ORDINANCE OF THE MAYOR AND CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, ACCEPTING THE RECOMMENDATION OF THE FINANCE AND CITYWIDE PROJECTS COMMITTEE TO AMEND THE CITY'S SOLID WASTE FEE SCHEDULE, AND AMENDING APPENDIX "A" TO THE CITY CODE OF THE CITY OF MIAMI BEACH, ENTITLED "FEE SCHEDULE," IN ORDER TO MODIFY THE RESIDENTIAL SOLID WASTE COLLECTION AND DISPOSAL FEE CHARGED PURSUANT TO CHAPTER 90 OF THE CITY CODE, ENTITLED "SOLID WASTE"; PROVIDING FOR CODIFICATION, REPEALER, SEVERABILITY, AND AN EFFECTIVE DATE.

The Administration recommends approving the Ordinance on second reading public hearing.

The City has a contract with Progressive Waste Solutions, Inc. to provide residential waste collection and disposal. The contract was entered into in 2010 and expired August 31, 2018. The cost of this service to the City is currently $25.12 per residential account per month. The difference between the total costs to provide service for single family units, currently $41.56 per month, and the contract cost is $16.44. This difference is used to fund litter control services, illegal dumping, pre/post storm related debris removal and administrative fees related to management of the contract and billings. The cost for residential waste services to multi-family dwellings with eight units or less is currently $37.13. The difference is $12.01, which is also used to fund litter control services, illegal dumping, pre/post storm debris removal and administrative fees related to management of the contract and billings.

Analysis

On February 20, 2018, the City issued a Request For Proposals No. 2018-024-WG for Collection and Disposal of Residential Solid Waste, Yard Debris and Bulk Waste, and Operation of the City’s Green Waste Facility. On July 25, 2018, the City Commission passed Resolution 2018-30433, which authorized the Administration to enter into negotiations with Progressive Waste Solutions of FL, Inc. (d/b/a Waste Connections of Florida), for a new contract for the aforestated services. Through negotiations, the Administration was able to secure an amount of $28.89 per residential account per month, an increase of $3.77 or 15%.

The Administration is recommending that the increase in contract cost be passed on to the program users, as this is a direct cost increase associated with the collection of residential waste.

On December 14, 2018, the Finance and Citywide Projects Committee (FCWPC) agreed with the recommendation of the Administration and approved the pass through of the increase in contract cost to the program users.

There is also a provision in the new contract which allows for the Contractor to request a Consumer Price Index (CPI) increase, per unit, per month cost, as well as a pass through of any future tipping fee imposed by the Miami-Dade County on an annual basis. The Administration is recommending that any future increase in the contract cost be passed through to the program users.  The FCWPC agreed with the recommendation and approved future contract costs be passed through.

As a result, the actual Appendix A, entitled “Fee Schedule” needs to be amended as follows:

At its January 16, 2019 meeting, the City Commission read the title of the Ordinance into the record, and made a motion to approve the Ordinance on first reading and to come back on February 13, 2019 for a second reading public hearing.

The Administration recommends approving the Ordinance on second reading public hearing.