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Home My WebLink AboutM-99-0398(-,IT'( OF N11A1%II FI.ORI[)A 31 INTER -OFFICE MEMORANDUM The Honorable Mayor and ; , rE �1AY 13 1999 FILE Members of the City Commission s�e.,Ec r City Commissioner questions reference the framework for a franchise agreement for FROM REFERENCECommercial Solid Waste Accounts Donald H. Warshaw ENCLCSURES City Manager As per Commissioner Regalado's question at the May 11, 1999 City Commission meeting reference the sliding scale annual fee for Commercial Solid Waste Accounts, the following is offered. The annual solid waste accounts committee provided to the Commission a framework with general _ issues to be addressed during the final formulation of a franchise agreement not by district concept. These are the three types of fees which we are recommending. 1. 20% franchise fee - This is the current percentage of gross currently paid by the companies. This fee makes the companies who control most of the valuable accounts pay more. 2. Annual fee — This would replace our annual renewal permit fee. It is the fee that companies would pay to us for the privilege to participate on the franchise agreement.. There are two options to this fee; a) a set amount per company, notwithstanding the volume or value of accounts handled by them. b) a sliding scale based on volume/value of accounts the companies handle. 3. Per account fee- This would be a yearly renewable application fee per account which would allow the city to establish a database on who services which account, and at the same time insure that quality of life issues are adhered to. With the exception of the 20% franchise fee, the committee has not made a final recommendation on the amount of the other two fees. We would bring back to the City Commission for final approval prior to an RFQ going out for the franchise agreement, the recommended charges for these two fees. The Commission at that time would have the opportunity to accept the committees recommendation or change the fee structure. —_ As to the issue of the companies passing down any of the fees to their customers, the following is -= offered. 99- 398 ty.. I Although it is true that this could or would happen, under this exclusive franchise not by district concept, the customer always has the right to shop around with the other approved companies and get a better rate. This option of shopping around for a better price, would not be available to the customer under a franchise by district concept. We also hope that by the value provided to the companies by getting this franchise right to do business in the City of Miami for an extended period of time, that they would be less likely to pass down some of these charges. The issue of the franchise agreement for commercial solid waste accounts will be discussed at the June 8, 1 9�City Commission meeting at 2 P.M. DHW mp c: Raul Martinez Assistant City Manager S 9 - 0-"ao8 ■ I I CI r,e OF MIAMI. FLORID INTEROFFICE MEMORANDUM - rr) The Honorable Mayor and OA rE MAY 10 1999 FILE Members of the City Commission FROM Donald H. arshaW City Manager SUBJECT Framework for a franchise Agreement for Commercial Solid Waste Accounts REFERENCES ENCLOSURES: As per your instructions from the April 27, 1999 Commission meeting, attached you will find a list of issues which we will address under an exclusive franchise not by district concept for Commercial Solid Waste Accounts. This will be the framework we will use to create a thorough and effective franchise agreement. If the Commission approves these concepts, in principle, we will begin working on a final and thorough document that we wi11 bring back to the City Commission prior to going out to an RFQ for this franchise agreement. The concepts listed stem from Commissioner's input, industry suggestions, and staff recommendations. Vile hope ive final permission to proceed at the May 11, 1999 City Commission meeting. 99 DHW p 19 c: Raul Martinez Assistant City Manager 99- 398 . Framework for Franchise Agreement Exclusive Franchise Not By District Years of agreement — We are assessing the duration of the agreement. During the formulation of the final document, we will assess what other like agreements have provided and select a time period which is good for the City of Miami and attractive to the industry. Hours of operation — We will dictate hours of operation like in the current ordinance (6 am — 11 pm). Any deviation of these hours must be made via a written request to the Department of Solid Waste, requiring written approval by the Director. Appearance of bins- Agreement will address the expectations of clean looking bins. Will hold the hauler responsible for patrolling their own bins and correcting unsightly bins (graffiti, etc.) within 72 hours. A fine schedule, up to suspension of their account permit, will be included. Cleanliness around bins- Agreement will include responsibility of hauler to pick up any loose debri/garbage within ten feet of bins. Location of bins- Agreement will hold the hauler responsible for appropriate location of the bin. The permit per account application will include an area to fist location and size of bin at facility, which the city must approve. Under no circumstances will bins be allowed in the Public Right of Way. Under servicing of account The permit per account application, will identify the level of service (size of container and how often it is serviced). City will approve each application to ensure appropriate level of service. Hauler will be responsible for notifying business owner and city in writing of any incidents of overflowing bin. Delinquent payments- No company owing monies to the city will be allowed to participate in the franchise agreement, or renew said franchise agreement at the end of the franchise terms. In -kind services- Agreement will mandate companies to service city facilities at no cost to the city. It is estimated this could yield an annual saving of $347,000. A formula would be worked out wherein, depending on the percentage of total accounts or value of accounts they handle, they would have to service that same percentage of city facilities. The recommended industry board could assist on the formula creation, and actual assignment of city locations. 99- 398 t4, t I ■ Community Cleanups- Agreement will mandate companies to participate on a finite number of free of charge community cleanups. All costs associated with the cleanup will be bome by the hauler. Their participation may be limited to the set up for one day of a "roll off" for the community to discard their trash. A formula would be worked out wherein depending on their percentage of total accounts they handle, they would have to service that same percentage of community cleanups. The suggested industry board could assist on the formula creation, and actual assignment of community cleanups. City/industry Board Agreement will reinforce resolution approved at 4/27199 City Commission meeting, creating an advisory board. Rol / Of7s- Agreement will address the use of roll offs under the same guidelines as garbage service. We will create a permit application per "roll off" use and may seek a higher fee than normal bin service. 20/ Franchise Fee- Agreement will mandate companies to pay 20% of whatever monies they collect from their customers. There will be no exceptions. It will include fees charged to governmental entities, not for profits, recycling accounts and bio-medical waste. TransftrabilitylAssignability of Franchise- Agreement will address the issue of whether franchise rights can be transferred to another company. We may require them to receive approval by the City Commission to transfer the franchise right. Fees may be assessed to approve the transfer. We may also decide not to allow any transferability of the agreement. Registration Period Agreement will give exclusive rights to those companies who wish to provide this service, and sign a franchise agreement with the city during the registration period. Once the registration period is closed, no other company will be allowed to service accounts in the city. Timeliness of payments- Agreement will mandate companies to submit their monthly payments, including supporting documentation by a specific date. Penalties will be assessed for late payments. Audit Rights — City reserves the right to audit the books and records of the company at any time, during the term of the agreement and up to four (4) years thereafter. 99- 98 h Annual foe — Agreement will stipulate a once a year, during the duration of the agreement, fee. Pee could range from 55,000 - 550,000, per company, per year, and it will be the same fee for each company, or we could create a sliding scale based on volumefvalue of accounts the companies handle. Per account lire- Agreement will mandate a completion and city approval of a yearly renewable application form for each account. This application will Include Information which will allow the city to assess level of services, location of bins, cost of services, etc. This information will be entered into a citywide database which will give us access to all of the needed information. A per year account fee would be assessed. This fee could range from $25.00 to $75.00 per account. Figa fMl& pro►rfslon — Agreement will include progressive penalties for vlolattons of any of the above listed Iasues. Penalties will Indude warnings, fines, loss of an account and up to revocation of their franchise agreement. Loos of Franchhw Agreement will stipulate what must occur prior to the city being able to annul the franchise agreement I