At its January 31, 2024 meeting, the City Commission approved a referral to the March 22, 2024 Finance and Economic Resiliency Committee (FERC) by Commissioner Fernandez, to discuss qualitative and quantitative criteria to be considered in the procurement of a single hauler (exclusive agreement) for multi-family residential and commercial waste collection and disposal. It should be noted that Commissioner Domínguez’s City Commission Resolution to terminate Request for Qualifications (RFQ) 2023-506-WG for non-exclusive franchise waste haulers to provide multi-family and commercial waste collection and disposal was adopted at its March 13, 2024 meeting. The item was approved via Resolution No. 2024-32967.
At its March 22, 2024 FERC meeting, Public Works presented the committee with seven recommendations to be considered, including various components to a single hauler system that must be adequately evaluated and addressed before an RFP can be issued. In addition, a menu of services should be part of an RFP so pricing can be obtained for all services needed. At a minimum the Administration recommended consideration of the following to be included as part of the RFP process:
1) The length of the agreement should be a minimum of 7 to 10 years with an allowance for multiple renewal extensions. For the single hauler to recoup their significant capital costs while providing competitive pricing to the customers, a long-term agreement is necessary.
2) In the evaluation of the proposals, price needs to be weighted at 40-60%. Financial liquidity must also be an important evaluation criterion that should be considered. Financial stability, competitive pricing are key metrics that need to be evaluated.
3) Separate pricing structures for multifamily and commercial accounts should be provided. Each group should have dumpster, compactor and cart categories for different services that are to be provided. In addition, for multi-family of nine or more units, recycling needs to be included in the RFP as part of the services provided. Additionally, the single hauler should offer recycling pricing for commercial accounts to provide customers another option to either choose their own recycling services or to have it included as part of the single hauler services.
4) An increase in Sanitation staffing levels for this single hauler system which include a budgeted contract administrator and 2 budgeted customer service representatives is required. Further analysis by the Administration may be necessary to determine if additional field staffing may be required to oversee the hauler’s day to day operations.
5) A financial analysis is required to ensure that the current franchise fee of 24%, which supplements a substantial portion of the sanitation budget as well as position and programs for Environment and Sustainability, is part of the service fee under the single hauler system.
6) A determination should be made for billing customers, whether the City should perform this service as it currently does for the residential single hauler contract or to have the single hauler provide this service.
7) An alternative option to include bulk waste for multi-family and business owners should be included in the RFP.
Discussions at Committee proceeded including the need to engage with a new consultant to assist with the development of the RFP including analysis, potential financial impacts for FY 2025 and beyond for City added responsibilities, a hybrid option, and to investigate other coastal cities such as Savanna, Charleston, Boston and New Orleans that may operate under a single hauler or hybrid model.
A motion was made by Committee members to: 1) To retain the item at FERC and come back with options 2) A favorable recommendation to the Commission to direct staff to procure and engage with a consultant to assist staff with the preparation including financial analysis and investigation and comparison of other coastal cities outside of Florida and to also consider a hybrid model.