HomeMy WebLinkAboutR-99-0297or
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J-99-417
4/27/99
RESOLUTION NO. 9 9 a 297 r
A RESOLUTION OF THE MIAMI CITY COMMISSION
DIRECTING THE CITY ATTORNEY TO DRAFT AN
ORDINANCE WHICH ESTABLISHES A COMMERCIAL
SOLID WASTE MANAGEMENT ADVISORY COMMITTEE TO
THE CITY OF MIAMI FOR THE PURPOSE OF ADVISING
ON ISSUES RELATED TO SOLID WASTE MANAGEMENT
WITHIN THE CITY; FURTHER SETTING FORTH ITS
AUTHORITY AND DUTIES, ESTABLISHING ITS
MEMBERSHIP AND CRITERIA, AND AUTHORIZING THE
COMMERCIAL SOLID WASTE MANAGEMENT ADVISORY
COMMITTEE THROUGH THE CITY MANAGER TO
NEGOTIATE WITH COMMERCIAL SOLID WASTE
MANAGEMENT HAULER PERMITEES TO PROVIDE FOR
IN -KIND CONTRIBUTIONS IN PROPORTION TO ITS
SHARE OF THE VOLUME OF CITY-WIDE BUSINESS.
WHEREAS, the Miami City Commission (the "Commission") formed
a working group in November 1998 to explore and analyze
commercial solid waste management issues relating to the City of
Miami (the "City"); and
WHEREAS, the Commission, the working group and
representatives of the commercial solid waste management industry
(the "Industry") operating within the City have participated in
multiple workshops relating to commercial solid waste management
issues in the City; and
WHEREAS, the findings of the working group and consensus of
the workshops reveal that commercial solid waste management
practices of the Industry within the City are in need of
improvement,
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CITY CODWSSIon
DMMING OF
APR 2 7 1999
Resolution NO.
law; and
WHEREAS, notwithstanding the need for improvement in the
regulation and compliance of the commercial solid waste industry
within the City of Miami, the Commission has determined that
franchising commercial solid waste pickup by commission district
would not accomplish more efficient and effective service; and
WHEREAS, involvement of the Industry would likely achieve
the effect of more efficient and effective removal of commercial
solid waste; and
WHEREAS, involvement of the Industry could be accomplished
by the formation of a Commercial Solid Waste Advisory Committee;
and
WHEREAS, the Commission hereby expressly finds that the City
would benefit from the creation of a Commercial Solid Waste
Advisory Committee with the authority to advise and recommend on
issues related to solid waste management within the City;
NOW, THEREFORE, BE IT RESOLVED BY THE COMMISSION OF THE CITY
OF MIAMI, FLORIDA:
Section 1. The recitals and findings contained in the
Preamble to this Resolution are hereby adopted by reference
thereto and incorporated herein as if fully set forth in this
Section.
Section 2. The City Attorney is directed to draft an
ordinance amending the Code of the City of Miami, Florida, to
establish the City of Miami Commercial Solid Waste Management
Advisory Committee (the "Committee") for the purpose of advising
on issues related to solid waste management within the City, in
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conjunction and cooperation with the Department of Solid Waste.
Section 3. The Committee shall have authority related to
commercial solid waste collection issues within the City,
including but not limited to:
a. provide advice and recommendations regarding
the levy fines or warnings (as established by the
Commission or the Department of Solid Waste), and
suspension and revocation of City permits for failure
of a hauler of commercial solid waste ("Haulers") to
comply with the City ordinances and regulations related
to solid waste management;
b. offer recommendation related to the
establishment of suggested Industry guidelines
consistent with or more stringent than those currently
established by the Commission or Department of Solid
Waste relating to the business of commercial solid
waste management; and
C. perform any other duties as may be
specifically set forth or delegated by the Commission
or Department of Solid Waste; and
d. adopt bylaws and resolutions consistent with
the powers delegated to the Committee by the Commission
or the Department of Solid Waste.
Section 4. The Committee, with the assistance and input
of the City Manager, may negotiate directly with the Haulers
applying for or renewing valid permits, to provide for
voluntarily in -kind contributions of commercial solid waste
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management services, as determined by a formula established by
the Committee based upon each participating Hauler's
proportionate volume of the business within the City, for City
Special Events. City special events may include the Coconut L
Grove Arts Festival, the Calle Ocho Parade, the Orange Bowl
Parade, the Three Kings Parade, and those events where the costs
for waste removal is waived by the Commission as well as any
other special event identified by the Committee in conjunction
with the Department of Solid Waste and the Commission.
Section 5. The Committee shall have the following voting -
members: two representatives selected by the Department of Solid
Waste; one representative from the City Manager's Office
appointed by the City Manager, one member appointed by the Miami
City Commission; one representative of each Hauler handling a
volume of 25*1 or more of the total commercial solid waste
management business within the City; two representatives -
collectively selected by all Haulers handling a total volume of
less than 25% of the commercial solid waste management business
within the City. The Committee shall have, as non -voting =
ex officio members, one representative from the business
community within the City of Miami and one representative from
the residential homeowners City. The ex officio members of the
Committee shall be selected as set forth in the bylaws adopted by —
a majority vote of the voting members of the Committee.
Section 6. The Committee shall provide quarterly written
reports to the Commission and the Department of Solid Waste -
setting forth a review of the status of commercial solid waste
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management in the City; a detailed report of all recommended
actions taken by the Committee against Haulers within he City
including warnings, citations, fines and permit suspension and
revocations; and suggestions for improvement of the provision of
both residential and commercial solid waste management services
within the City, including financial projections setting forth
specific savings to the City that such improvements would be
expected to provide.
Section 7. This Resolution shall become effective
immediately upon its adoption and signature of the Mayor Y
PASSED AND ADOPTED this 27th day of _April 1999•
JOE CAROLLO, MAYOR
in accordance with Miami Code Sec. 2-36, since the Mayor did not indicate nna oval c�
this legislation by signing it in the designate/P'-"�
becomes effective with the elapse of ten (10) regarding same, without the Mayor xe ising
ATTEST: �yy
Walte oeman, City Clerk
WALTER J. FOEMAN
CITY CLERK
APPROVPD AS/TO O AND CORRECTNESS
P.�LERO V ISO
CATTORNEY
�i If the Mayor does not sign this Resolution, it shall become
effective at the end of ten calendar days from the date it was
passed and adopted. If the Mayor vetoes this Resolution, it
shall become effective immediately upon override of the veto by
the City Commission.
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CITY OF MIAMI. FLORIDA
53
INTER -OFFICE MEMORANDUM
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ro The Honorable Mayor and onrE MAR 2 91999 FILE: s
Members of the City Commission
SUBJECT. Second City Commission e
Workshop regarding
Franchising Solid Waste
FROM REFERENCNnimercial Accounts
((n4gddH.WWarshaw ENCLOSURES:
City Manager
IV -
The following is being provided to the Mayor and the City Commission as additional information
94tained after the initial City Commission workshop which was held on February 23, 1999. —
Second Industry Workshop
On March 12, 1999, a second Commercial Haulers Industry workshop was held. The written
materials which were provided by the Commercial Haulers 'at that meeting were submitted to the
City Commission on March 22, 1999. Attached you will find a summary of the comments at this =_
meeting. Overall, all but one objected to the franchising by' district, but most did provide some
suggestions reference franchising, franchising by district and other related issues. -
Monies owed to the City which have been collected since October 1998
The city has collected $209,681 since we started to overhaul the current system of billing and
collections (see attached memo dated 3/24/99). We have identified new billing and collection
procedures which can and will result in fines or revocation of their permit for companies which fail
to pay their bills in a timely basis. We currently have two companies, Waste Management
$235,542.77 (mainly on the so called exempt accounts issue) and Coastal Carting $118,523 who
owe us monies. Additionally, BE also owes us an unspecified amount from the so called exempt
accounts. We are in the final notification and mitigation steps, before removal of their current
permits.
Quality 9LLij_e Improvements
The committee discussed and agreed on many reasonable improvements which would enhance the
cleanliness of the city, location and appearance of the current bins, hours of service by private
haulers, etc. Changes may have to be made to the current ordinance, but most of the enforceable
wording currently exists, but the city just hasn't been real diligent at enforcing these issues. We
have started a higher level of enforcement to address some of these quality of life issues. During
the industry workshop, the haulers were not opposed to being held to a higher scrutiny by the City.
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Haulers to pick up at chyfacicities
We assessed the feasibility of Commercial Haulers picking up at city facilities at no charge to the
city. An attached memo (dated 3/24/99) describes the estimated actual costs to the city for
servicing all of its facilities (MRC, Parks, Police Stations, City Hall, NET Stations, etc). The
savings to the city in actual dollars is estimated to be $347,000. Additional efficiencies would
also be obtained, since it frees up positions which would be used for other general cleanup duties
in our neighborhoods. It is estimated that four employees would be available due to these
efficiencies. The assignment of which company services which city facility, would be based on
what type of franchise or ordinance process the commission approves. Under Franchising by
Distric the company obtaining the right to service an area, would be responsible for servicing,
free of charge, all city accounts located within that district. Under an Exclusive Franchise Not By
District, agreement, or the current ordinance format, the assignment of city accounts would be
based on the volume and value of businesses handled by a hauler. Should, hypothetically, a
company control 20% of the commercial accounts based on dollar value, they would be assigned
to service 20°l0 of the city facilities (see attachment depicting the first five months of fiscal year
collection history and per company, percentage of total revenue control). The actual assignment
process as to which facility each company services would have to be explicitly and fairly worked
out with the industry.
Community Cleanups
The committee recommends mandatory participation, free of any charges to the City, by haulers in
community cleanups. The process of obtaining participation would depend on the type of
franchise process approved by the commission. Under Franchising By District, the company who
services a district would have to participate on a specified number of cleanups in that district.
Under an Exclusive Franchise Not By District agreement, the same format and formula used above
in deciding who services which city facility would be followed. Under either concept, the
participation in community cleanups, free of charge, would be a mandatory caveat for any hauler
to conduct business in the City.
Permitting of Accounts
The committee has identified a deficiency in the current system. We have no database as to which
company services what account, nor level and type of service. During the committee meetings and
at the commercial haulers workshop, we were made aware of the permitting procedures currently
employed in Miami Beach under their Exclusive Franchise Not By District agreement. Their
franchise agreement mandates that prior to a commercial hauler commencing service of an
account, that a per account permit must be submitted to the city for approval (see Miami Beach
permit application attachment). The City of Miami may charge for the account permit, and insure
that prior to service commencing that:
- level of service is adequate to prevent overspilling of bins.
- location of each bin is appropriate.
- condition of each bin is acceptable.
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The permit would be renewed annually. As far as revenues expected from this account permit
fee, hypothetically should we charge a $50.00 fee for our estimated 20,000 accounts, we could
gross yearly recurring revenues of $1 million dollars. This charge would be spread throughout
all the companies, depending on the volume, not value of the accounts. This charge may be
attempted to be passed down or actually passed down to the customer. Under Franchising By
District, the customer would have no options other than paying the increase. Under Exclusive
Franchise Not By District agreement, the customer could seek more competitive pricing from
another permitted company.
Rol�-0 s
The Committee recommends that whichever fiianchise option the City Commission decides to
adopt, that the same requirement principle be applied to roll -offs. The recommendation is that if
Franchise By District is approved, only the hauler having the right to conduct business within
that district can conduct roll -off business. If the Exclusive Franchise Not By District agreement
is approved, any of the permitted haulers can provide roll -off services throughout the City during
the duration of the agreement. The only change we would recommend on roll -offs is a higher
permit fee for roll -offs than for normal bins (attached you will find a roll -off permit application
from Miami Beach).
Franchising
The committee again reassessed the issue of franchising, and discussed more indepth the two types
of franchising:
1. Franchising with exclusive districts
2. Exclusive franchising not by district
Franchising with Exclusive District
This type of agreement gives the hauler exclusive rights for a specified time period (3-5 years) to
pick up all commercial accounts within a geographical area (designated district). The committee
again unanimously recommends against this concept, based on the same issues highlighted on the
February 22, 1999 memo previously submitted to the City Commission prior to the initial
workshop. The committee feels that the difficulties with price controls, the issue of dictating to
customers who their service provider is, the passing off to the customer of any high entry fees, the
disappearance of some current commercial haulers and the possibility of litigation are sufficient
problems not to justify the Franchising by District option.
Should the commission disagree with the committee's recommendation and would like to move
forward on this approach, we recommend two options on creating districts:
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Op&n #1: Maintain the current boundaries of the 13 NET areas and allow companies to bid by
NET area, with the company with the best deal for the City of Miami obtaining the right to service
that area. We may want to limit the number of areas a company can contract to maybe three areas,
to insure that one company does not monopolize the entire workload. Some of the negatives with
this option is that the largest companies will likely only bid for high volume areas, which may
leave out the smaller volume areas (SW Coconut Grove 160 accounts/ Overtown 373 accounts/
Model City 678 accounts) with either no bidders, or small haulers attempting to obtain the right to
service a smaller area and maybe not having the capacity to service it properly. This option would
probably also do away with most small haulers who do not have the capacity to handle an entire
NET Service Az'ea, not even a small one.
lionV. Create six districts by merging together NET Service Areas. Our suggested districts
being:
1. Downtown and Overtown NET Areas (approx. 4623 accts.)
2. Upper Eastside, Little Haiti & Model City NET Areas (approx. 2813 accts.)
3. Wynwood & Allapattah NET Areas (approx. 3343 aects.)
4. Coral Way & East Little Havana NET Areas (approx. 4198 aects.)
5. West Little Havana & Flagami NET Areas (approx. 4180 accts.)
6. Northeast & Southwest Coconut Grove NET Areas (approx. 980 acets.)
Let it be noted that the number of accounts is an estimate, and the dollar value of the accounts
may vary significantly. Under this option the same bidding process as in option #1 will be
followed to obtain the best deal possible for the City of Miami. Again we may want to limit the
number of areas a company controls. This option places high value areas together with lower
value areas, therefore insuring the same level of service provider. By limiting the number of
areas to six, we will definitely be cutting out all the small haulers who may not be able to submit
as competitive a bid, or won't have the capacity to service this large an area.
Should the City Commission decide to Franchise by District, the administration would need
guidance on these two options, or on any other area division suggestion the commission may
have.
Exclusive Franchise Not By District
The committee looked at this option, which is now being used by many of the cities we queried.
Under this approach, commercial haulers would have an opportunity to enter into a long term
agreement (3-5 years) to obtain commercial accounts anywhere in the city. There will be an
entry fee assessed for companies to enter into this agreement. This fee would not be so high as
to exclude any small hauler who may want the privilege of obtaining accounts in the City of
Miami. The fee also has to be fair and even since it does not take into account volume of
business. South Miami currently assess a yearly S5,000 fee for commercial haulers to pick up in
their city. We would have to establish a reasonable amount, but if hypothetically we were to
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assume the South Miami $5,000 fee and if fifteen companies wanted to do business in the City of
Miami, theoretically $75,000 in additional annual recurring revenues could be obtained.
Even though any prices assessed to the haulers would ultimately be attempted to or passed down
to the customer, under this non -district franchise system, the customer has the right to shop
around for a better deal amongst the permitted companies.
Under this Exclusive Franchise Not By District concept, the period for companies to sign the
agreement would be determined, and once that period is over, no other haulers would have the
opportunity to pick up commercial accounts in the City of Miami for the duration of the
agreement (3-5 years). It gives the permitted haulers the business advantage of exclusivity.
Special provisions would have to be. worked out in the agreement for companies going out of
business, companies being bought out, or losing their franchise due to non-compliance.
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Committee Recommendation
The committee recommends to the city commission this Exclusive Franchise Not By District
option for the following reasons:
1. It provides an opportunity for some additional revenues for the City.
2. Allows price controls to be balanced by a competitive market.
3. Does not take the choice of service provider out of the customers hands.
4. Allows most, if not all of the companies to continue to provide services in the city.
5. Provides more enforcement power than the current city ordinance process, since companies
actually sign off on an agreement stipulating their }esponsibilities and penalties.
We look forward to hear any further suggestions from the City Commission at the March 30,
199910:�000 A.M. Commission Workshop.
DHW ' iym
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e: • Raul° Martinez
Assistant City Manager
Committee Members
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COMMERCIAL HAULERS. WORKSHOP
AT MIAMI CITY HALL
MARCH 1291999
Caveat: Please be advised the following questions were presented by the City in a letter dated March Oh that
was sent to all commerclal haulers in advance of this nutting. The responses listed below are not verbatim
responses, but Instead refled a summary of responses from notes taken at that meeting. Verbatim testinany
was not transcribed but tapes are available and can be obtained from the City Clerk's Office as the nutting
was tape-recorded
Question ## 1: Should the City decide to franchise by district, what should the parameters of the
districts be? How many districts?
R4onses:
Waste Management: Based upon the volume of the solid waste commercial accounts at the present,
three (3) districts were recommended. It was recommended that the same volume of accounts that a
firm currently possess remain the same in order to be equitable.
Garbage Roll-Olf IDemoUtion : It was recommended the City be divided between lightheavv
industrial and industrial/residential. Recommended a type of lottery system of 5-6 districts (depend
on the zoning), with 2 heavy industrial, 2 light industrial, and 2 multi -family.
Mac Pac Waste : He recommended the City not put anyone out of business and allow for the small
firms room for growth. He recommended the City keep the 13 districts (NET) and that the downtown
area be given to one of the largest haulers, the next largest area to the next largest hauler, and so on. He
advised that the City could locate 13 districts in a fair way that allows room for growth for the smaller
haulers. If there are 20+ licenses, a district could be divided in %s for 2 different haulers.
Mac Tac Waste Re�: It was recommended that if there had to be districting, the City should be
divided by a lottery system, with the big firms having as much to lose or gain as the smaller ones.
BFI : Advised that all the haulers are against districting except for one - Republic. He advised instead
what the City needed to do was solve waste collection problems to generate income to the City.
American Waste: (Mark): he advised the City should fix the current problems, such as the littering
issues, as the large haulers control 80% - 90% of the market now. If the City is franchised, only 2-3
main players would be involved.
Republic (Jack Cory - representing Lazaro, Imperial, and All Service Refuse): In favor of franchising,
he advised that 9 of the 12 cities surveyed by the City have a form of fimchising, such as Miramr
Weston, and Wilton Manor.
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Commerchd Hwlee Workawp 3/1 (oonL)
Question # 2: Should the City decide to franchise by district, what suggestions would you have
to create initial price controls and future price increases?
Responses:
Republic:He advised that when the existing permits expire, the prices established by the firms expires.
When permitting, the City can ask for pricing and look at prices charged by each firm. He suggested
survey the districts, and require such things as community cleanups and new containers.
Mac Pac: Advised that the law states that the City cannot regulate prices. (Cited the OPA - Office of
Price Administration regulations). Advised the City should avoid price controls, as competition
controls the price, and the focus should be on enforcement as competition works.
Garbage Roll -Off (Greg Davis): Distributed an Internet except from Margate where the rates
_ increased once franchising went into effect. He advised the free market system keeps rates low. If there
were to be a price increase, he suggested utilizing the CPI, but questioned how to handle increases for
disposal fees, labor costs, machinery, fuel costs, etc.
Waste Management: Advised the legal issues would have to be reviewed, such as the Charter and the
Code to see if exclusive franchises are allowable. He advised that those who lose will go to court and
that contractual relationships between firms and commercial establishments would be effected.
Advised that there are safer routes than franchising, and reported Miami Beach has non-exclusive
franchises.
MacPac: To franchise and establish price controls, an example was given of charging residents $9.50
per yard ( much higher than the current rates) which would adversely affect the residents and franchises
would monopolize the market.
Question # 3: Should the City decide to create long term exclusive franchises, what suggestion
would you have toward this option? What would be an appropriate franchise fee? (Discussed a
franchise could be exclusive, but not necessarily by districts, including a franchise fee and firm
allowed to compete for a set number of years without allowing others to enter the market until a
specified period of time)
Responses:
General Hauling: They advised the taxpayers will pay more for garbage pickups as the additional
costs will be passed on the consumer. Two firms now have in excess of 90% of the market, and that
market forces make the prices competitive. If a certain amount of money would have to be paid to
enter, the smaller firms would be forced out, the prices raised, and then higher costs passed on -to the
consumers. It was recommended the problems be fixed without passing the costs on, and enforce any
attempt to pass on the costs with "teeth."
Mac Pac: The firm advised that his suggestion was the lesser of two evils, and has a better protection
for the residents than franchising by district.
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Commercial Haulers WorkOmp 3/ (cont)
Mac Tac Waste: Advised the City cannot restrain trade, and that the City in the past has give
water, electric, and gas services.
BFI: An entry fee that would generate revenue in the S 10,000 - $12,000 rate per firm would be
reasonable, but that ability of the smaller firms to pay would have to be considered. Another option
was to increase the franchise fees by 5%, which would generate an additional $700,000 - $800,000.
Smaller haulers should be given the opportunity to compete, and a customer should be able to choose
based on the service provided and the -price.
Garbage Roll -Off: They provided the example of Miami Beach,where the system works somewhat
due to Code Enforcement. Prices there are considerably higher than in Miami, but the haulers pick-up
at restaurants 7 days per week and utilize closed containers in air conditioned facilities. Advised the
franchise fee there is 14%, and that the 20% fee by Miami is high as it is.
American Waste: Advised a reasonable entry fee be implemented if this had to occur so that the
smaller haulers can remain itrbusiness.
Mac Pac: Entry fees should be based on the market share to protect the smaller haulers. As the size of
the haulers grow, increments should be established so that they can also increase. If the 20% was to be
bumped up slightly higher, everyone would be affected across the board the same. Additional revenues
for the City could be generated as there are things "slipping out of the back door" that need to h-
addressed.
Waste Management: Advised that haulers who are well regulated, dedicated, and financially stable
best serve the City. For a 10-year franchise, the system can be regulated by the City but there needs to
be an equitable way to cost it out. He advised that the City needs to commit haulers to community
cleanups, and dedicate a certain % of revenues per hauler to clean up the City. Advised that other areas
such as roll -off construction containers that are regulated very little but roll -off containers create a
great source of debris on the roads. They recommended an annual licensing fee on a per truck basis,
and a one-time lifetime fee, with requisite insurance and other requirements in place. They
recommended the City to well -regulate the haulers, but not to franchise by district.
Question_ # 4: Should the City decide to continue the current free market system, what would the
industry be willing to do in reference to enhancing the aesthetic features of the City, e.g., in -kind
services for city facilities, community cleanup projects three or four times per year, the issue of
under -servicing accounts or the use of undersize containers, hours of service near residential
areas, improved overall appearance of dumpsters /bins, etc.
Responses:
American Waste: The City should play a bigger part working with the bmders and the customers, and
should intercede more as enforcement is needed.
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CITY OF MIAMI, FLORIDP,
INTER -OFFICE MEMORANDUM
TO Raul Martinez DATE : March 24,1999 FILE
Assistant City Manager
SUBJECT : private Hauler Audits
FROM: echiREFERENCES:
Treasurer ENCLOSURES:
The Companies that were audited and invoiced since September 1998 are as follows:
- NAME INVOICE DATE
AMOUNT STATUS
Waste Management 9/15/99
21,173.40 paid
Kimmins Recycling 1/11/99
187,368.00 paid
United F.nvironniental 2/05/99
1,140.00 paid
*Waste Management 2/24/99
235,542.77 not paid
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*Efforts art ongoing to collect the amount outstanding
from Waste Management
There is also Coastal Carting LTD, Inc. that has a delinquent balance estimated at
$ 118,523.00.
PC/GC:ii
cc: Elliott Prenner, Internal Audits
Clarence Patterson, Solid Waste
1w
Conuflercly Haden Workftp J. ) (poet)
jRepublic: 'there is a problem of service as there is no commitment to the community. The cu
system is not a free market system due to health / safety issues. Efficient utilization of public strc,;ts
having IS trucks (example) going down them is bad public business. The City should be franchised to
improve the overall cleanup efforts.
tic..
BFI: Suggested a Review Board be established that can be managed by the City. They were not aware
of exclusive district franchise in the U.S., as the cities in Broward are exclusive to a single hauler but
the cities are much different than Miami.
question # S: Creation of an industry/city/citizens review board.
Responses.
Mac Pac / Dade Waste Hauler Council: They welcome a Board to interact with and to open lines of
communication, not to speak of pricing but for fines, problems, and new ideas. Suggested the City look
at Miami Beach to enhance the current system. Suggested the City also use code enforcement through
the Cone Enforcement Board rather than this Board as this Board should only be used for policy
purposes.
Waste Management: Welcomes the idea to include the industry, residents, and officials and agrees
that this would increase the communication and address problems.
Question # 6: Any other suggestion which will improve the current system or suggestions to
encourage franchising by district.
Responses.
Mac Pac: The industry can give the City suggestions to cut prices and to make ends meet as the City
is losing money as the City is not running it (residential hauling) as a business, which needs to be done.
Equipment and the personnel used ( 2-3 toters and driver) is not cost effective and there is much better
equipment now being used as everything is now automated with only 1 driver. The one-time entry fee
will not resolve the S 7M waste deficit. He advised he is aware of pilfering by City employees where is
City is hauling entire loads of trash but the City is not making any money as an employee(s) directly
receives the money from the establishment. He offered to speak with the City about these situations.
There should be a better use of the technology in the market today, such as "tele-trak" which tracks by
computer the trucks and their respective routes all day. The small haulers would welcome the City to
become a commercial trash hauler with them.
It should be noted that of those haulers present at this workshop, only one hauler, Republic,
expressed it was in favor of franchising by district.
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Commercial Haulers Workshop 3/1"+9 (cent.)
BFI: Provided an example of the permitting process in Miami Beach where there is real
communication of minimum standards with commercial establishments. When a customer changes
haulers, Miami Beach is notified (new hauler notifies the City) and there is an appropriate service level
requirement There is a quarterly meeting and the City is notified of service decrease (service per week
or the size of a container)., There are regular meetings with the City discussing accounts that have
problems, both on streets and on full blocks, and they all look for solutions. The Chamber of
Commerce: is also involved as there is a proactive approach to find solutions to the problems.
Mac Pac: There should be code enforcement and better communication. He discussed the "stop service
situations" when haulers don't get paid, and the need to catch delinquent customers earlier. Suggested
haulers should work closely with a designated person within both the City and in the firm. Inspectors
should be sent out when they are notified a business is not paying a hauler in order to give the business
a warning. For new construction or remodeling, there should be placed in the Code that the container
should be an enclosed container as that would improve the aesthetics of the area as is done in Dade Co.
All of the haulers should also create a 1-800 hotline or a complaint line where citizens could call in to
the City when they see a location filled with overflowed containers and the City would act on that call
to enforce. Regarding community cleanup efforts, haulers should only have to give containers on a
proportionate basis for events, but only depending on the market share of that firm. For in -kind
services, they are willing to cooperate proportionately to help but the City should pick up the disposal
costs. They distributed photos and advised the City does not have enough inspectors, and that the costs
generated would increase revenues. Welfare -to -work individuals could also be put to work in the
communities. Containers. may need to be refurbished and overflow containers would be found by these
inspectors. As haulers cannot blow the whistle at clients who do not pay for a sufficient amount of
service, or have a large enough container as they would lose the account, he recommended it be the
City's responsibility to do so by Code and the hauler would work with the City to enforce it.
Waste Management: As the customer has an excuse for everything, Miami Beach solved the problem
as the hauler is responsible for everything within 10 feet of a container and must clean up the area. The
City is notified, who sends out inspector. If a problem continues, then the hauler is to cease picking up
the garbage and that this works well. For in -kind, it was recommended the City take a % of the
franchise fee to set aside at an equitable portion and the money and how to speed it will be discussed
later. For community cleanup, it was recommended the City require every truck that is licensed to be
put to work 1 or 2 days per year as it would be an equitable distributiou. Limits of hours: as this is a
continuing problems, it can be solved with real communication by the City with the industry and in a
non -adversarial way.
General Hauling: Recommended the City put in the Code a provision that requires a hauler to report a
problem, then the hauler will call the City. The hauler will first tell the customer to solve the problem
but that they would have no recourse but to notify the City as required.
Waste Management: The audit procedure as it is works but if they won't pay, the City can't collect.
Suggested a bond so that non-payment of fees would go against the bond as a recourse by the City.
Mac Pac: The storage of recyclables outside of containers is a real problem, and if a firm is going to
recycle, it was recommended the City get viable recycler as cardboard boxes are a fire and rodent
problem. Photos of this problem were displayed.
4
C - - r'' Q I-)
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO Raul Martinez DATE March 12, 1999 FILE
Assistant City Manager SUBJECT
/% R E 0 Q Collections procedures
-� 3 i A 9 on Private Hauler Audits
FROM : Pete Chircut REFERENCES:
Treasurer .
ENCLOSURES:
The Finance Department's procedures on private hauler audits are as follows:
1. Audit is received from Inter4d Audits Department
2. Collections Section personnel reviews -the audit recommendations
3. Collections carry out the recommendation Finance is responsible for (e.g, billing)
4. Letter is sent with invoice attached, payable upon receipt. (Copy to Internal Audits)
5. If payment is not received within 1S days, a collection letter is sent out (Copy to Law
Dept., Solid Waste)
6. Collections personnel will follow up with a phone call to be sure the notice was
received and discuss payment with the company's contact person.
7. If payment is not received within 30 days from the date of the original invoice, a
second letter is seat out indicating payment due plus a penalty (amount calculated).
This letter will also state that the Solid Waste Dept. will be notified to revoke permit.
(Copy to Law Dept., Solid Waste Dept.).
8. If payment is not received after the second notice, Solid Waste Department will notify
the Private Hauler that the permit will be revoked. (Copy to Finance, Law & Internal
Audits)
99- 297
] MAR-24-1999 11:54 SOLID WAM ADM 575 5138 P.01
CITY OF MIAMI. FLORIDA
INTER -OFFICE MEMORANDUM
TO: Rani Mwtinez GATT,. t i 10 FU:
Assistant City Mermeger
$U&=T : Estimated Solid Waste
Costs for Provldng Service
to City Faciifiea
RM : Ld= P—sttllrecn, Direcxor ROTMEMM :
rt nent of Solid Wade
_ sna.osuaEs:
Our estimated cost of providing mvices to city offices, parka, police and fire
stetiorm mwiW day care canters, and NET ofliaes is provided below. This
cost wotysis includes our edtirnates of axis fees end other cost provided by
the Dow mart of Midget and erl+ ww w n- Thera am flour posNorm as@VW
to this function, two Waste Collector Operator ire and Wo waste Collectors.
SoBd Waat Service Cost for City Fadittin
DOW Counter Scale Fees 1 247,010
Equip ywit Maintenance & Fuel 58,365
New CapU Peres 938
Reserve for Clapkd Replacement 40,830
TOTAL $ 3471141
2107 TOTAL P.at
CITY OF MM
PWATE F41 AM
CASH RECBM
=. N TO SEPf. 00
NAME
OQ 06
Nov. 06 om M
Jn 0o
FEE. 0o A1eAWM WPM Jer M-W
Au0. 00 SWL 00
Taft
% of C400cec
by C0ff"6
AUEFWANVWBfE
50.00
160.00
240.00
O.c
MF 6ROO.OAOE SMI.
600.00
600.00 e46.eo
eW.e0
on
3.740.00
OS
0R01WO PEitl0e m
122 UMM
14403.91 117,ea26
123,461.91
117.4" i
606.7e7.56
Xf
CAPf.TRAOKO C
CLEAN-TEC Y& SM
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e.4TM
23M 43030 50M 546.70 �
300.07 Alnpea vM WwW RlrfgwrAt of DdR oKft
z0ES m
6,79M
0.1
0.A
COI,STALCARTNO
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CA
0.00
e,07275
107.e4 M 63,1OM
67.66e.10
6z101.66
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0.4
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OENERALNAiliM
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ZOIO.36
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1.9
RroMSAWATCH
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7,e33.54 40,270.13
110.e70.ee
162,006TD
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,
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0.00
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a"Re6.e3
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PMVVA6T8
ROLLAMYXYSTB1
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W423
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UNIT9DENViWNME1T
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1,651,211.51
AudRC lacdom
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20001.40
TOTALCOLLECT1O41S
351.243.25
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431.436.67 1e6.606A0
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ti.�
0
I",
CITY OF MIAMI SEA 'om"OH
140 MC ARTHU...AUSI WAY MIAMI OQACH FLORIDA 33139
.aANITATION DEPARTMENT TELEPHONE: (305) E
OFFICE OF THE DIRECTOR FAN: (NO) E
ROLL-O!? VZRKXT APPLICATION
M.B. OCCUPATIONAL LIC.I APPLICATION DATit
SERVICE ADDR=X s
LOCATION Or I.I.—Orrs
PRiVA'1'= PROPZY= Flu XC PROPSRT : D=WST= C:APACITTs
APPLICANTS
'dawmii= putt s
Annassss
PBOQs NO t rm W6 2
O =/ COPTRA=jt: 911 M I M 310:
N&IZ4= ADDR3ss s
IT POS Gummz>ujq=IOR: BUILDT Pzm=T 0 DATE
PQALIC t+lORACs s BOAD Pip[I v /p IN=
'TERW AND FOR_ RDVA*VCDNrAVaMM
!fit C11APEM MA 0111 M CODE OP IM C T OF MAW BBAC IT
Permits for iR 34W Cooc"= VIM be issued afkw ft peo kbm of t3epoer 14A of the Code of the City of AtWW Beach. Ploeide. Ise
boee coaaptied .
ROB-oK Coetlioess dM a a pMe and bepe oe ae kadm affMmd by t!e eity..Aea l cUW oa pnbiie im"aty� tlto on oe 6I
cad rsfkcdoa � is m9WmL aomeaetim � as Map 4 peobib+ (as WO as oa saatsitsed as�as) Ilse iioft
of to Cty of MWW Beath. PArML
mw Cmtraesor dmo not d Bvw aad pica PA04Ms) fm aerpeioe to do isa me of each permit per Seed=14A-17 of the Code of
tW City of MlwW Bemb Plaids.
Wbea placed ao mstaad perfdaS specie, a daily be of S6.00 per spa= mast be peld to dw Pwts4N Depwunwt
R CrM t�aoees er Bela wb «latoer tha abaw eeeaiioaa a�Aler tLY ere feaee a emit tee aahiees oo aesalties sad aw be deed
or kW ddk bwdw
WE HEREBY AGREE to all of the above tertas wider thin applkeeioa.
Oi NZR OR BUILDING CONTRACTOR ROLL —OFF CONTRACTOR
PRINT SUM! PRINT NAM
99^
CITY OF MIAMI BEACH
--Holm=— — --
SANITATION DEPARTMENT 140 MC ARTHUR CAL
DIRE("&TOR ai0i) 673_7
PERMIT APPLICATION FOR PRIVATE GARBAGE COLLECTION
Location Date
Name of Building
Type of Building: Apts.�_ No.-,_, _/Hotel No. of Rooms/
Commerical: Sq. Feet/Restaurant No. of Chairs,
Owner/Agent/Manager: Phone
Address:
Contractor: License
Address: Phone
Service Cu./Yds. Dumpster(s)/Location
Times per Week/Days of Week _
S M T W T F S
The permit for Private Garbage Collection will be issued after the
provisions of Chapter 14A of the Code of the City of Miami Beach,
Dade County, Florida have been complied with.
Dumpster(s) shall be placed and kept on the location approved by
the office of the Sanitation Director who will forward to the
applicants, all the information regarding this application.
The permit will be issued after verification of no outstanding
debts with the Billing Division of the City of Miami Beach,
Florida. The City of Miami Beach reserves the right to continue
the Billing for Waste Service until the permit is issued. The
Contractor shall not deliver and place dumpater(s) for service
prior to the issuance of such permit per Section 14A-6 of the
Code of the City of Miami Beach, Florida.
Persons or firms who violate the above provisions shall be sub-
jected to prosecution and may be fined.
WE HEREBY AGREE to all of the above terms under this application.
Applicant —Contractor
Print Name ` c7
WR-24-1999 11'59 5CL;" p5-5 Art, 575 5138 P.®1
CQt ERCIAL HAULER PERMIT FEES - . MUNICIPALITIES
MW ._
���
MTAL P.®1
: �- 297
TO
FROM
x,-
�,-3
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Honorable Mayor and DATE : April 27, 1999 FILE
City Commissio ers
SUBJECT: Solid Waste Management
r Advisory Committee
Joe Sanche REFERENCES
Commissio er ENCLOSURES:
As you are aware, various workshops relating to the commercial solid waste
management industry have been conducted to study the feasibility of commercial
solid waste franchise fees. The findings of the working group reveal that there is
a need for improvement, regulation, and increased compliance with the law.
Therefore, I am requesting that the City Attorney draft an ordinance which
establishes a Commercial Solid Waste Management Advisory. Committee for the
purpose of advising on issues related to Solid Waste Management within the
City.
99— ;zo
f�
4�a3/yq
Mlflll
� IBC ��lUi�Uku�� JP�'lJi��
99-- 297
�f!!.r'i� !` Gia^/�nf..L� N/•`"��'CiA�tJ 'j�/z�'ea�5<d,e'[
9 9 - 297
OF
CITY OF MIAMI FLORIDA
INTEROFFICE MEMORANDUM
To The Honorable Mayor and DATE FEB Z 2 1999 FILE
Members of the City Commission
FROM:
Do w
City Manager
SUaJECT:
Franchise Commercial Accounts
by District
REFERENCES:
ENCLOSURES:
Upon City Commission request, in November 1998 I formed a working group to study and bring
= back to the City Commission a recommendation regarding the fimchising by district of
commercial solid waste accounts. The working group is comprised of:
1. Mr. George Wysong — Law Dept.
2. Ms. Pam Burns — Purchasing
3. Mr. Elliott Prenner — Internal Audits
4. Mr. Dilip Surana — Internal Audits
5. Mr. Luie Brennan -- Budget
6. Mr. Clarence Patterson — Solid Waste
7. Mr. Pete Chircut — Finance
8. Mr. Raul Martinez — Assistant City Manager
This working group has met numerous times to study and debate this issue. Listed below you will
find some of the discussed issues and recommendations:
• Number of Commercid Accounts: The committee has identified the number of commercial
accounts by NET area. There are approximately 20,137 accounts throughout the City. They
are broken down by Service Area as follows (see attachment).
1.
Upper Eastside
740
2.
Little Haiti
1395
3.
Model City
678
4.
Wynwood
1064
5.
Allapattah
2279
6.
Overtown
373
7.
Downtown
4250
8.
W. Little Havana
2431
9.
Flagami
1749
10.
Coral Way
• 1695
11.
NE Coconut Grove
820
12.
SW Coconut Grove
160
13.
East Little Havana
2503
Total
20,137
9 9 - 297
I
P
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
TO d DATE.
FEB 2 2 1999 FILE
The Honorable Mayor an
Members of the City Commission
FROM: DoA
W to
City Manager
SUBJECT:
Franchise Commercial Accounts
by District
REFERENCES:
ENCLOSURES:
Upon City Commission request, in November 1998 I formed a working group to study and bring
back to the City Commission a recommendation regarding the franchising by district of
commercial solid waste accounts. The working group is comprised of:
1. Mr. George Wysong — Law Dept.
2. Ms. Pam Burns — Purchasing
3. Mr. Elliott Prenner — Internal Audits
4. Mr. Dilip Surana — Internal Audits
5. Mr. Luie Brennan — Budget
6. Mr. Clarence Patterson — Solid Waste
7. Mr. Pete Chircut — Finance
8. Mr. Raul Martinez — Assistant City Manager
This working group has met numerous times to study and debate this issue. Listed below you will
find some of the discussed issues and recommendations:
• Number of Conunercial Accounts: The committee has identified the number of commercial
accounts by NET area. There are approximately 20,137 accounts throughout the City. They
are broken down by Service Area as follows (see attachment).
1.
Upper Eastside
740
2.
Little Haiti
1395
3.
Model City
678
4.
Wynwood
1064
5.
Allapattah
2279
6.
Overtown
373
7.
Downtown
4250
8.
W. Little Havana
2431
9.
FFjaagami
1749
10.
Coral Way
-1695
11.
NE Coconut Grove
820
12.
SW Coconut Grove
160
13.
East Little Havana
2503
Total 20,137
99- 29"7
C
C
9
Franchise CommerciA' accounts by District
Page 2 of 6
The number of accounts does not differentiate the value nor volume of the accounts. One
account may be for a small business, and another account may be to service 300 apartments at
a condominium.
• Current Private Waste Haulers: During Fiscal Year 1998, twenty companies obtained
permits to provide solid waste collection to commercial accounts in the City of Miami. A
total of $3,549,543 was received by the City for the 15-20% regulatory permit ($3,402,853
sent by the companies and an additional $146,688 discovered during our audits). Five of the
companies controlled close to 93% of the business. The other fifteen companies divide small
parts of the remaining 7%.
Issue of Companies not Paying or Pirate Accounts: The personnel from Internal Audits
state that most of the underpayments are due to mistakes in the coding of the accounts. It
represents less than 10% of the money owed to the City. Those mistakes or underpayments
are caught and corrected during the yearly audits. Regarding the issue of companies, other
than those with permits, conducting business within. the City of Miami and not submitting the
20%, it was felt that even though it does happen, it is not a common occurrence. There is a
dual policing of this issue. The City Solid Waste Inspectors and the industry monitor this.
The industry monitoring occurs from the twenty (20) permitted companies who do not want
an outside company taking business from them and not paying the 20% to the City. The
companies which are found are billed for the permit and for the 20% owed to the City.
Industry Workshop: On November 25, 1998, an industry workshop was conducted to discuss
and receive input regarding franchising by district of the commercial accounts. Most of the
input received and subsequent letters were very negative of this concept and all but one
supported the current free enterprise system. Copies of responses were forwarded to the City
Commission in mid December 1998. Most of the responding companies stated they would
be willing to work with the City of Miami to improve the current system.
• Permitting of Haulers and Existing Contracts: Currently the companies operate with a year
to year permit. These permits are due for renewal October 1, 1999. The Law Department
recommends that if the City decides to franchise by area, that the actual turnover of accounts
to whomever wins the right to service an area, not occur prior to the expiration of the current
permit (10/1/99). All other necessary steps (RFP, etc) can precede this date. Some of the
haulers claim they have long term contracts (2 years or more) with some businesses. The
Law Department's position is that our current permitting procedures allow the haulers to
operate for one year only. If a hauler went into a contract with a business for a period longer
than a year, it is not binding on the City since the hauler has no certainty that they can
operate beyond the one-year period. Another concern with existing contracts is the multiple
location account. Should districting occur and an entity (Schoolboard, McDonalds, etc) have
a singli vendor to service all of their accounts throughout the city, the districting principle
will prohibit this from occurring. The Law Department is still assessing this issue.
• Price Controls: This is one of the most difficult issues broached by the committee. Currently
competition drives down prices as well as maintaining levels of service. Should a business or
apartment building be unhappy with the price they are being charged or the quality of service
received, they can shop around with any of the other permitted companies for a better price.
Should the City be franchised by district, the hauler receiving the bid would be the only
1.
M
Franchise Commercia' accounts by District
Page 2 of 6
The number of accounts does not differentiate the value nor volume of the accounts. One
account may be for a small business, and another account may be to service 300 apartments at
a condominium.
• Current Private Waste Haulers: During Fiscal Year 1998, twenty companies obtained
permits to provide solid waste collection to commercial accounts in the City of Miami. A
total of $3,549,543 was received by the City for the 15-20% regulatory permit ($3,402,853
sent by the companies and an additional $146,688 discovered during our audits). Five of the
companies controlled close to 93% of the business. The other fifteen companies divide small
parts of the remaining 7%.
Issue of Companies not Paying or Pirate Accounts: The personnel from Internal Audits
state that most of the underpayments are due to mistakes in the coding of the accounts. It
represents less than 10% of the money owed to the City. Those mistakes or underpayments
are caught and corrected during the yearly audits. Regarding the issue of companies, other
than those with permits, conducting business within the City of Miami and not submitting the
20%, it was felt that even though it does happen, it is not a common occurrence. There is a
dual policing of this issue. The City Solid Waste Inspectors and the industry monitor this.
The industry monitoring occurs from the twenty (20) permitted companies who do not want
an outside company taking business from them and not paying the 20% to the City. The
companies which are found are billed for the permit and for the 20% owed to the City.
• Industry Workshop: On November 25, 1998, an industry workshop was conducted to discuss
and receive input regarding franchising by district of the commercial accounts. Most of the
input received and subsequent letters were very negative of this concept and all but one
supported the current free enterprise system. Copies of responses were forwarded to the City
Commission in mid December 1998. Most of the responding companies stated they •would
be willing to work with the City of Miami to improve the current system.
Perm!Wng of Haulers and gK thng Contracts: Currently the companies operate with a year
to year permit. These permits are due for renewal October 1, 1999. The Law Department
recommends that if the City decides to franchise by area, that the actual turnover of accounts
to whomever wins the right to service an area, not occur prior to the expiration of the current
permit (10/1i99). All other necessary steps (RFP, etc) can precede this date. Some of the
haulers claim they have long term contracts (2 years or more) with some businesses. The
Law Department's position is that our current permitting procedures allow the haulers to
operate for one year only. If a hauler went into a contract with a business for a period longer
than a year, it is not binding on the City since the hauler has no certainty that they can
operate beyond the one-year period. Another concern with existing contracts is the multiple
location account. Should districting occur and an entity (Schoolboard, McDonalds, etc) have
a singio vendor to service all of their accounts throughout the city, the districting principle
will prohibit this from occurring. The Law Department is still assessing this issue.
• Price Controls: This is one of the most difficult issues broached by the committee. Currently
competition drives down prices as well as maintaining levels of service. Should a business or
apartment building be unhappy with the price they are being charged or the quality of service
received, they can shop around with any of the other permitted companies for a better price.
Should the City be franchised by district, the hauler receiving the bid would be the only
99- 297
■ Franchise Commercial '-ccounts by District
Page 3 of 6
service provider for the area. This lack of competition would force the City to create some
sort of price control on a "citywide" basis, to insure price gouging does not occur under this
system. For the City to establish price controls, we must do thorough research of all costs
involved and set a price for each type of service. The Solid Waste industry provides a
multitude of different services, based on levels of service, such as: how many times a week
they pick up, and the size of containers to be picked up. All of these price items must be
costed out to establish a price control program which can stand the scrutiny of the courts.
The City must also create a system for justification of future price increases, based on
increased tipping fees, Consumer Price Index increase, etc. According to our Law
Department this price control setting should be done very thoroughly or a consultant should
be hired to establish the rates. The concern for accuracy is that the prices set may be legally
challenged after a decision is made to franchise by district, and if we are not successful in the
courts, we would be leaving our commercial accounts at the mercy of price increases by any
-- of the haulers. We are currently still gathering data on this issue under the guidance of the
Law Department.
e Increase Revenues to the City: There are two ways to increase the current revenues the City
receives under a franchise system.
a) A one time non -recurring franchise fee, which will be set by each of the districts created
based on the volume and number of accounts. Assuming that there are 20,137 accounts,
even though the accounts are all not equal in value, we could assess a cost to each
district created and companies bidding would have to submit that franchise entry fee by
district in order to be considered for an award. We are still considering other options,
but we won't be able to proceed until after a final decision is made by the City
Commission to franchise by district, and the Commission makes their recommendation
of the actual parameters of the districts. This would be a one-time fee. Without
appropriate price controls, this additional cost could ultimately be passed down to the
customer.
b) Increase of current 20% regulatory fee. Our 20% fee is already the highest we could
identify in the State of Florida The next highest is 17%. We could justify additional
recurring fees based on the efficiencies created by a district system. The concept is that
if a hauler currently has 1000 accounts throughout the City of Miami under the current
open system, and they hypothetically receive the same number of accounts all within a
small geographical area (district), there are efficiencies created. Efficiencies would
come from savings of gas, travel time, manpower and a contiguous route. Each 1 %
increase of the current 20% regulatory permit fee would bring the City approximately
$208,796 in recurring revenues. The cost increase must be justified, but without
appropriate price controls, would be ultimately passed down to the customer.
• City Solid Waste .Department Competing !or Commercial Accounts: During the committee
meetings a proposal was forwarded by the Solid Waste Department to allow them to compete
under the current free market system for some commercial accounts. Currently Miami -Dade
County does this, and it handles approximately 15% of the commercial accounts in the
County. Under this Solid Waste Departments' proposal (see attached), the City of Miami by
committing trucks and personnel to do this, could yield significant recurring revenues. The
challenge would be for the City to market this service to attract customers. It would probably
9 9 -- 297
Franchise Commercial ° ccounts by District
Page 4 of 6
take several months before a significant number of accounts could be attracted by our
services in order to make a profit. Should we proceed with the franchising by district, the
City would not be able to compete for business, since awarded companies would have
exclusive rights to an area
• Advia ntages and Disad►aant! s of Franchising 8y District:
a) Advantages
1. Possibility of a one-time entry fee for those companies willing to participate. This
fee must be reasonable and commensurate with the cost of the regulatory activity.
2. Due to the district efficiencies, the City may be able to justify the rationale for the
increase of the 20% regulatory fee.
3. Easier to monitor hauler compliance if all of the accounts in a certain district
belong to a single company.
4. Efficiency to the haulers by having contiguous routes.
5. Enhance the quality of life in a neighborhood wherein only one truck comes in and
picks up all of the accounts in the area. It avoids trucks from multiple companies
traveling through the neighborhood to pick up garbage from adjoining businesses.
6. Easier to audit the number of accounts since all of them in a specific district belong
to the same company.
7. Ability to convince companies to participate in "community cleanups", since they
are the one and only commercial hauler for the area
b) Disadvantages
1. Difficulty to extract adequate and legally defensible price controls could result in
price gouging.
2. The physical turnover from the current free market system to a franchise by area
system is a logistical nightmare. It would take 3045 days for the removal of the
old bins, the installation of the new vendor bins and other associated issues. The
new service provider must obtain contracts from all of the accounts in the District.
X By the city mandating with whom a commercial establishment must do business
with, we would be accepting partial responsibility for the level of service provided
by that designated hauler. The commercial establishment would have to stop doing
business with a waste hauler they are pleased with and be forced to now conduct
business with another company. Any problems of service delivery and prices
would be assessed to the City since we were the ones that forced the business to
contract with a specific hauler as a result of franchising by district.
9 9 - 297
v
■
f
a
i
Franchise Commercie' accounts by District
Page 5 of 6
4. Disappearance of the smaller waste haulers. The franchise by district system will
eliminate some, if not most, of the smaller companies who have developed a niche
in the industry. No matter how many areas or districts are created, there will not be
enough business for all of them. Some of the small companies have a long and
successful history providing commercial waste service in the City of Miami. Even
though some of the small haulers are being bought out by the larger companies,
there is a public sentiment for the small "Mom and Pop" hauler to continue in
business.
5. Under a franchise by district system, the City of Miami will not be able to
implement its proposal of competing for some of the current free market
commercial accounts.
6. Issues yet to be completely assessed regarding existing contracts, and across
districts (Schoolboard, McDonalds, etc) service providers, could negatively impact
in our ability to completely franchise by district.
7. Possibility of lawsuits for loss of business claims.
8. All but one of the current commercial waste haulers vehemently oppose this
process.
Recommendation:
It is the administration's recommendation that it is not in the City's best interest to proceed with
districting commercial accounts, at this time. We feel the disadvantages outweigh the
advantages and will not result in substantial additional recurring revenues to the City. We do
recommend the following steps, that will greatly improve our current system:
1. Enhance enforcement — we are in the process of re -centralizing the solid waste inspections to
the Solid Waste Department to concentrate only in the issues of garbage, trash and other
related issues. The NET Inspectors will be supplementary to the Solid Waste Departments'
enforcement efforts. This centralized effort will enhance our enforcement of permitted
haulers.
2. Become more aggressive with delinquent payments. We will, after appropriate warnings to
the commercial hauler and to the businesses receiving service from the hauler, suspend their
permit for delinquent payments. The business owner would be advised to acquire a new
service provider by a certain date. The City of Miami has never done this before.
3. As past of the yearly Certificate of Use inspection, City personnel will check for a current
and valid waste removal contract. This will ensure the existence of service with a permitted
provider.
4. Address, through focused enforcement, the issue of unsightly bins.
Franchise CommerciaJ-zounts by District
Page 6 of 6
S. Commence a pilot project to allow the City of Miami to get into the commercial accounts
business. Based on projections, the City could extract some significant additional recurring
revenues.
6. Commence a dialogue with the industry to seek ways in which we can positively impact the
quality of life of the neighborhoods, at no cost to the City or the taxpayer.
Should the City Commission disagree with the staWs recommendation, we would ask that at the
February 23'd Commission workshop on this issue, that the City Commission give instructions on
the creation of the districts, and provide input on what other issues they may want to see in an
RFP. Notwithstanding any legal issues, especially in the area of price control, we would bring
back a RFP/RFQ to this commission by the second m" in April 1999. All of the responses
to the RFP would be required to be received by June 4, 1999. The final awarding of the
districts would be done by the City Commission at the first or second Commission meeting in
July. The actual turnover of business from the current system to districts will occur when the
permits expire in October 1,1999.
.Ay7
DHW/R mp
C: Raul Martinez
Assistant City Manager
97
m
Cr`MMERCIAL COLLECTION AND DI: MAL ANALYSIS
2,3,4, AND 3 X WEEK COLLECTION
• (10% MISC. )
S YEARS EQUIPMENT AM RITIZATION:
Rear Packer Truck: 3 28,000.00
I 15 Y S EQUIPMENT AMORITIZATION: —_
I Rear Packer Truck: S 2t3.000�
2 - Yd. Dum rater- 57.80
4 - Yd. Dum ater. 83
_ 3ubtotal: 26,067.80
Subtotal: 26,OUA
Personnel UUW-FMves.
Personnel CoatL/F ea:
2 WC QS33,351.25 ■ 58,752.50
2 WC ,331.25 ■ 66.7
1 WWI 38,483.72
1 WCON 36.453.
Subtotal: 103,246.22
Subtotal: 103,246M
Operation/Maintenance Coats: 12.930.40
tlom/MaMtenance Coats: 12,933.50
Total Casts: 142.234.421
Total Coats: 142,268.52
COSTS: (1) TRUCK
(1) TRUCK
2 DAYS:
2 DAYS:
S48.18 x 12 ■ $578.18 x 20 ■ 811,56820 (2-YD.)
S130.42 x 12 ■ 81,W&04 x 20 ■ S31,MftM
SM38 x 12 ■ $115&32 x 20 ■ 323.12&40 (4-YD.)
S35l1,.84 x 12 ■ 84,297.68 x 20 ■ $55,
3 DAYS:
3 DAYS:
S 7227 x 12 ■ S 887.24 x 20 ■ $17.344.80 (2-YD.)
$192.43 x 12 ■ S2,309.16 x 20 0 $46.1
$144.54 x 12 ■ $1.734.48 x 20 ■ $34.889.80 (4-YD.)
S336M x 12 ■ $4.03&W x 20 ■ $W,
4 DAYS:
4 DAYS:
S 96.36 x 12 ■ S2,156.32 x 20 ■ 823.236.40 (2-YD.)
5257.54 x 12 ■ $3.000.48 x 20 ■ $81.
S19Z72 x 12 = S2,312.64 x 20 ■ S46.2:52.80 4•Y0.)
$425.71 x 12 ■ $5,108M x 20 ■ $102.1
5 DAYS:
5 DAYS:
S12D.43 x 12 ■ S1,445.40 X 20 ■ $14.454.00 (2-YD.)
$37128 x 12 ■ $4.455.12 x 20 ■ 844,551
$240.90 x 12 ■ S2.890.80 x 20 ■ 528,908.00 (4-YD.)
S517.53 x 12 ■ $8.210.36 x 20 s S82.103.W
Disposal Costs: i"A65.20
Toted Revenue: • S514,844.40
Operating Costa: 142,M42
LESS 20%
Total Operating Costs: S 341,699.62
FRANCH13E FEE: 102.466.88
TOTAL 411,875,52
Less Operating Costs: 341,8fi9.62
Proftt 70,175.00
Additional trucks would generate the
following reoccurring revenue annually:
(4) Trucks: $280,703.60
(8) Trucks: 561,407.20
(10) Trucks: 701,17590
Page 1
t�.
_..0 ,.- mm....
Telephone Survey
Commercial Franchising In Various Municipalities
02/17/99
t-
rl -
%,-
L
CITY OF MIAMI
NET BOUNDARIES
&mrcos Info. Toch. Dept.
■
■
CITY OF MNAMI TOTAL WSINEWEb
N O
U E
L
W
A
0
0
W
F
C
.0
30
E
T
P A
I J
Y
L
V
0
L
0
6 R
W R
0
E F
P b
T D
N
L
E
W
A
R
0
0
H
T
T F
E T
T 2
W
A
R
N
H
0
A
C V
C V
A
A
R S
L L
0
P
T
T
A
A
L
0 E
0 E
V
L
I
E
0
A
0
0
V
M
C
C
A
D
C
0
T
W
W
A
1
W
0
0
B
C
E
H 1
T
N
N
N
A
N
N
A
E
A T
A
A
Y
U
U
I Y
H
T
T
T
1
NET CODE
1
2
3
4
b
4
7
9
9
10
11
12
13
APTS
3021
404
210
335
482
2XI
1d0
701
341
310
80
57
1,465
5.161
HOTEUMOTEL
ROOMING HOUSE
20
b
11
17
3
14
27
9
19
4
7
7
43
1d9
RETAIL
150
441
270
218
653
74
1118
842
5MW
378
186
48
"91
5.210
WHOLESALE
STORAGE
11
118
13
1361
349
11
204
201
i9l
13
1
14
911
MANUFACTURNO
8
63
14
70
145
5
53
431
19
6
2
21
449
OFFICE BLDO
107
178
70
2M
3421
22
2334
dd9
613
$40
458
19
337
6.201
PARKING
GARAGES
AUTOSALES
2
6
1
4
36
4
82
22
d
17
13
3
Of
2M
AMUSEMEM
PARKS 000
TRACTS
2
21
1
5
ARENAS.
DANCEIPOOL
HALLS. BOWLING
1
1
1
8
1
5
2
1
4
2
23
THEATERS
11
3
3
1
2
1
2
.1
HOSPITALS
2
8
3
3
1
3
20
PRIVATE
SCHOOLS
31
3
2
11
2
1
7
19
11
121
4
5
7
77
ADULT
-
►�
CONGREGATE
3
1
4
ADULT
CONGREGATE
(Prod!)
1
2
2
1
1
2
9
2
20
COMMUNITY
RASED
5
1
4
d
2
2
4
1
1
28
COMAA INITY
1
1
3
21
7
SUSTANCE ABUSE
(MNon•ptdR
1
1
SUBSTANCE
ABUSE
O
DAY
CARS
(NonVollt)
22
16
Of
14
d
d
7
21
1
3
3
91
95
DAY
CAREMURSERY
(PMM)
21
11
3
1
1
11
10
d
1
9
55
ACCESSORY USE
(HOME
OCCUPATIONS
0
MLSCELLANEOLP
11
25
21
14
08
9
34
30
35
13
13
4
24
305
MARINAS
2
4
2
b
3
1
5
4
29
RESTAURANT
LOUNOEXNAR
241
30
33 1
37
108
10
188
145
$61
57
58
9
8b
d73
PAWN SHOP
1
1
31
4
d
12
11
3
1
6
50
CONVENIENCE.
STORE
5
d
3
2
81
21
15
18
10
3
21
b
82
PUBLIC SCHOOL
1
10
7
3
3
4
3
6
4
4
1
1
1
45
TOTAL
740
1
d7d
1044
373
4
1
1.749
9 d95
b20
180
2.503
20,137
9 9 - 297
C
8htstl
►AWE
OCI-97
Nov-
Deo-97
ho-91
Feb-"
Mrr91
-"
91
ho-9t
IW-91
Aug-"92
TOW
All SERVICE REFUSE
IA33.94
i19.62
1113614
603.80
050.91
35333
654.19
21130.68
3r$34.94
3,991.65
2,473.14
4 317
23,786.97
.
9W.00
450.00
MOO
I .00
600.00
600.00
4 .00
FBiRtS !4p
4!
.91
17 t35.19
173 632.5t
J3.%
tS .56
1 71332
11 IO1.43
204152.47
111990.70
I 4i024
1 47,1".W
TL NC
107.00
120.00
227.00
,.,! WASTE
f 017.71
19115
1080.91
4 45.79
4 1.02
4 J1.14
1 i13.90
4 606.97
6 9924
6 47032
633/33
5995
716.61
AL. C ARTWO
! 692.96
4 2t.64
S 765.06
14,7i6.66
AL WASTE
31710.13
31062.54
33 49730
2723.90
34.t0
33 619.50
30 401.97
133
41 7S6.34
54 012.70
74,9t9.49
456.52492
NALUNG
16.13
1 11.J1
1,11922
1,181.59
I 5t.tt
7r263.55
12,221.73
09.05
6,497.17
7,922.24
J 1f0.01
8,744.37
69,301.S4
SMMTION
4".97
379.13
547.59
54t.94
378.0
609.64
61830
453.53
MAI
388.96
1,404.76
6,t09.91
RECYCLl/G
11 .67
1 .79
9,625.35
4 .91
13 90.06
J 994.03
7120
15,359.80
7,973.64
17139.01
1 .44
WASTE
24.903.15
36.16
7Z793.04
11 093.42
2601.23
27126.12
34162.92
32,99015
3917523
3 139
PAC
IrS711.73
929.50
547-W
16730
23123
5".76
1".24
116090
ENVIRONk*WT
423
425
vskm
309.90
321.75
171.SO
SOL"
494.65
394.75.
70030
I 73.60
I t76.00
slulls
aMMY SYSSBd
131.00
291.00
11323
165.00
195.00
131.00
230.00
173.W
179300
1 00
i IU.00
6t425
1 .16
2,749.93
2,%5.92
5135
2,622.110
3 %7.51
015.95
4,725.16
2 G35AI
SMfTAT10N
425.74
498.34
2SI57
694.91
29J.63
1 224.96
31194
516.06
3451.12
SUiFOMCARTING IN
69L77
70935
817.27
9t4.97
979.52
113,16
t36.60
l 5.12
1166.77
1,16133
2,12633
12,273.11
HMYROr44Qlf
32L"
729.6S
63920
79420
396.75
718.95
11911.70
1083.10
"S.10
1024.96
7 236
1rL)WT OF DADE
76,739A3
7I 01254
53 1.52
K197.42
135 M2.10
95,663.53
RJU.69
7 012.13
l211t3.11
90657.49
Ito 04234
9J7 29
ALS
132AI4.7S
20,731.1f
21/,29L49
326-6M
241,16IAO
397,J5730
179.17215
357,464dS
Ift3U.24
WAWA!
328AO-"
327JUJS
PWS CASH RECEIVED FOR AUDrM
MAIM
3349 1
"•
BUA.ING MM AUDITS
110,420.59
'•'
Due aom CoerWggg.
8[1!r 6t Itamin6a Notiees vveee rest 1NeM rnn deo real b Sotid Mane
to eeoommeed cwAd doe of cmpmyls pma We we do in oft ofadw do
e»1 M ore it MkMW to M Lsw W p ~ br WW SCOW
,A,.
r
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
GATE FEB 2 2 1999 FILE -
ro •The Honorable Mayor and
Members of the City Commission
FROM: D( w
City Manager
SUBJECT:
Franchise Commercial Accounts
by District
REFERENCES:
ENCLOSURES:
Upon City Commission request, in November 1998 1 formed a working group to study and bring
back to the City Commission a recommendation regarding the f1ranchising by district of
commercial solid waste accounts. The working group is comprised of:
1. Mr. George Wysong — Law Dept.
2. Ms. Pam Burns — Purchasing
3. Mr. Elliott Prenner — Internal Audits
4. Mr. Dilip Surana — internal Audits
5. Mr. Luie Brennan — Budget
6. Mr. Clarence Patterson — Solid Waste
7. Mr. Pete Chircut — Finance
8. Mr. Raul Martinez — Assistant City Manager
This working group has met numerous times to study and debate this issue. Listed below you will
find some of the discussed issues and recommendations:
• Number of Conwwrcid Accouunts: The committee has identified the number of commercial
accounts by NET area There are approximately 20,137 accounts throughout the City. They
are broken down by Service Area as follows (see attachment).
1.
Upper Eastside
740
2.
Little Haiti
1395
3.
Model City
678
4.
Wynwood
1064
5.
Allapattah
2279
6.
Overtown
373
7.
Downtown
4250
8.
W. Little Havana
2431
9.
Fjagami
1749
10.
Coral Way
• 1695
11.
NE Coconut Grove
820
12.
SW Coconut Grove
160
13.
East Little Havana
2503
Total
20,137
97
4j
A
Franchise Commercie' accounts by District
Page 2 of 6
The number of accounts does not differentiate the value nor volume of the accounts. One
account may be for a small business, and another account may be to service 300 apartments at
a condominium.
Current Private Waste Haulers: During Fiscal Year 1998, twenty companies obtained
permits to provide solid waste collection to commercial accounts in the City of Miami. A
total of S3,549,543 was received by the City for the 15-20% regulatory permit ($3,402,853
sent by the companies and an additional S 146,688 discovered during our audits). Five of the
companies controlled close to 93% of the business. The other fifteen companies divide small
parts of the remaining 7%.
Issue of Companies not Paying or Pirate Accounts: The personnel from Internal Audits
state that most of the underpayments are due to mistakes in the coding of the accounts. It
represents less than 10% of the money owed to the City. Those mistakes or underpayments
are caught and corrected during the yearly audits. Regarding the issue of companies, other
than those with permits, conducting business within the City of Miami and not submitting the
20%, it was felt that even though it does happen, it is not a common occurrence. There is a
dual policing of this issue. The City Solid Waste Inspectors and the industry monitor this.
The industry monitoring occurs from the twenty (20) permitted companies who do not want
an outside company taking business from them and not paying the 20% to the City. The
companies which are found are billed for the permit and for the 20% owed to the City.
• Industry Workshop: On November 25, 1998, an industry workshop was conducted to discuss
and receive input regarding franchising by district of the commercial accounts. Most of the
input received and subsequent letters were very negative of this concept and all but one
supported the current free enterprise system. Copies of responses were forwarded to the City
Commission in mid December 1998. Most of the responding companies stated they would
be willing to work with the City of Miami to improve the current system.
• Pernutting of Haulers and Existing Contracts: Currently the companies operate with a year
to year permit. These permits are due for renewal October 1, 1999. The Law Department
recommends that if the City decides to franchise by area, that the actual turnover of accounts
to whomever wins the right to service an area, not occur prior to the expiration of the current
permit (10/l/99). All other necessary steps (RFP, etc) can precede this date. Some of the
haulers claim they have long term contracts (2 years or more) with some businesses. The
Law Department's position is that our current permitting procedures allow the haulers to
operate for one year only. If a hauler went into a contract with a business for a period longer
than a year, it is not binding on the City since the hauler has no certainty that they can
operate beyond the one-year period. Another concern with existing contracts is the multiple
location account. Should districting occur and an entity (Schoolboard, McDonalds, etc) have
a singlf, vendor to service all of their accounts throughout the city, the districting principle
will prohibit this from occurring. The Law Department is still assessing this issue.
• Price Controls: This is one of the most difficult issues broached by the committee. Currently
competition drives down prices as well as maintaining levels of service. Should a business or
apartment building be unhappy with the price they are being charged or the quality of service
received, they can shop around with any of the other permitted companies for a better price.
Should the City be franchised by district, the hauler receiving the bid would be the only
90-61
19rd
k,-
I
L
Franchise Commercir' kccounts by District L
Page 3 of ti
service provider for the area. This lack of competition would force the City to create some
sort of price control on a "citywide" basis, to insure price gouging does not occur under this
system. For the City to establish price controls, we must do thorough research of all costs
involved and set a price for each type of service. The Solid Waste industry provides a r
multitude of different services, based on levels of service, such as: how many times a week
they pick up, and the size of containers to be picked up. All of these price items must be
costed out to establish a price control program which can stand the scrutiny of the courts.
The City must also create a system for justification of future price increases, based on
increased tipping fees, Consumer Price Index increase, etc. According to our Law -
Department this price control setting should be done very thoroughly or a consultant should _
be hired to establish the rates. The concern for accuracy is that the prices set may be legally
challenged after a decision is made to franchise by district, and if we are not successful in the
courts, we would be leaving our commercial accounts at the mercy of price increases by any _
of the haulers. We are currently still gathering data on this issue under the guidance of the
Law Department.
• Increase Revenues to the City: There are two ways to increase the current revenues the City
receives under a franchise system.
a) A one time non -recurring franchise fee, which will be set by each of the districts created
based on the volume and number of accounts. Assuming that there are 20,137 accounts, -
even though the accounts are all not equal in value, we could assess a cost to each
district created and companies bidding would have to submit that franchise entry fee by
district in order to be considered for an award. We are still considering other options, -
but we won't be able to proceed until after a final decision is made by the City _
Commission to franchise by district, and the Commission makes their recommendation
of the actual parameters of the districts. This would be a one-time fee. Without
appropriate price controls, this additional cost could ultimately be passed down to the
customer.
b) Increase of current 20% regulatory fee. Our 20% fee is already the highest we could
identify in the State of Florida. The next highest is 17%. We could justify additional
recurring fees based on the efficiencies created by a district system. The concept is that
if a hauler currently has 1000 accounts throughout the City of Miami under the current
open system, and they hypothetically receive the same number of accounts all within a
small geographical area (district), there are efficiencies created. Efficiencies would
come from savings of gas, travel time, manpower and a contiguous route. Each 1%
increase of the current 20% regulatory permit fee would bring the City approximately
$208,796 in recurring revenues. The cost increase must be justified, but without
appropriate price controls, would be ultimately passed down to the customer.
• City Solid Waste Department Competing jor Commercial Accounts: During the committee
meetings a proposal was forwarded by the Solid Waste Department to allow them to compete
under the current free market system for some commercial accounts. Currently Miami -Dade
County does this, and it handles approximately 15% of the commercial accounts in the
County. Under this Solid Waste Departments' proposal (see attached), the City of Miami by
committing trucks and personnel to do this, could yield significant recurring revenues. The
challenge would be for the City to market this service to attract customers. It would probably
9 9 - 297
It
Franchise Commercir' kccounts by District
Page 4 of 6
take several months before a significant number of accounts could be attracted by our
services in order to make a profit. Should we proceed with the franchising by district, the
City would not be able to compete for business, since awarded companies would have
exclusive rights to an area
Advantages and Dlsadvan Mes of Franchising by District:
a) Advantages
1. Possibility of a one-time entry fee for those companies willing to participate. This
fee must be reasonable and commensurate with the cost of the regulatory activity.
2. Due to the district efficiencies, the City may be able to justify the rationale for the
increase of the 2(rregulatory fee.
3. Easier to monitor hauler compliance if all of the accounts in a certain district
belong to a single company.
4. Efficiency to the haulers by having contiguous routes.
5. Enhance the quality of life in a neighborhood wherein only one truck comes in and
picks up all of the accounts in the area It avoids trucks from multiple companies
traveling through the neighborhood to pick up garbage from adjoining businesses.
6. Easier to audit the number of accounts since all of them in a specific district belong
to the same company.
7. Ability to convince companies to participate in "community cleanups", since they
are the one and only commercial hauler for the area
b) Disadvantages
1. Difficulty to extract adequate and legally defensible price controls could result in
price gouging.
2. The physical turnover from the current free market system to a franchise by area
system is a logistical nightmare. It would take 30-45 days for the removal of the
old bins, the installation of the new vendor bins and other associated issues. The
new service provider must obtain contracts from all of the accounts in the District.
3; By the city mandating with whom a commercial establishment must do business
with, we would be accepting partial responsibility for the level of service provided
by that designated hauler. The commercial establishment would have to stop doing
business with a waste hauler they are pleased with and be forced to now conduct
business with another company. Any problems of service delivery and prices
would be assessed to the City since we were the ones that forced the business to
contract with a specific hauler as a result of franchising by district.
99- 29"7
Franchise Commercial s ecounts by District
Page S of 6
4. Disappearance of the smaller waste haulers. The franchise by district system will
eliminate some, if not most, of the smaller companies who have developed a niche
in the industry. No matter how many areas or districts are created, there will not be
enough business for all of them. Some of the small companies have a long and
successful history providing commercial waste service in the City of Miami. Even
though some of the small haulers are being bought out by the larger companies,
there is a public sentiment for the small "Mom and Pop" hauler to continue in
business.
S. Under a franchise by district system, the City of Miami will not be able to
implement its proposal of competing for some of the current free market
commercial accounts.
6. Issues yet to be completely assessed regarding existing contracts, and across
districts (Schoolboard, McDonalds, etc) service providers, could negatively impact
in our ability to completely fi-anchise by district
7. Possibility of lawsuits for loss of business claims.
8. All but one of the current commercial waste haulers vehemently oppose this
process.
Recommendadion:
It is the administration's recommendation that it is not in the City's best interest to proceed with
districting commercial accounts, at this time. We feel the disadvantages outweigh the
advantages and will not result in substantial additional recurring revenues to the City. We do
recommend the following steps, that will greatly improve our current system:
1. Enhance enforcement — we are in the process of re -centralizing the solid waste inspections to
the Solid Waste Department to concentrate only in the issues of garbage, trash and other
related issues. The NET Inspectors will be supplementary to the Solid Waste Departments'
enforcement efforts. This centralized effort will enhance our enforcement of permitted
haulers.
2. Become more aggressive with delinquent payments. We will, after appropriate warnings to
the commercial hauler and to the businesses receiving service from the hauler, suspend their
permit for delinquent payments. The business owner would be advised to acquire a new
service provider by a certain date. The City of Miami has never done this before.
3. As path of the yearly Certificate of Use inspection, City personnel will check for a current
and valid waste removal contract. This will ensure the existence of service with a permitted
provider.
4. Address, through focused enforcement, the issue of unsightly bins.
99-- 297
IL
C
Franchise Commercia' .counts by District
Page 6 of 6
S. Commence a pilot project to allow the City of Miami to get into the commercial accounts
business. Based on projections, the City could extract some significant additional recurring
revenues.
6. Commence a dialogue with the industry to seek ways in which we can positively impact the
quality of life of the neighborhoods, at no cost to the City or the taxpayer.
Should the City Commission disagree with the staf°s recommendation, we would ask that at the
February 23`d Commission workshop on this issue, that the City Commission give instructions on
the creation of the districts, and provide input on what other issues they may want to see in an
RFP. Notwithstanding any legal issues, especially in the area of price control, we would bring
back a RFP/RFQ to this commission by the second m" rn April 1999. All of the responses
to the RFP would be required to be received by June 4, 1999. The final awarding of the
districts would be done by the City Commission at the first or second Commission meeting in
July. The actual turnover of business from the current system to districts will occur when the
permits expire in October 1,1999.
DHW/R mp
C: Raul Martinez
Assistant City Manager
�9- 297
1!�
f)�
C^MMERCIAL COLLECTION AND DI, JSAL ANALYSIS
2,3,4, AND S X WEEK COLLECTION
-v . DUMPSTRR 1 .
r • (10% MISC. ) I -1 (10% MISC. COSTS)-
i _
S YEARS EQUIPMENT AM RITIZATION: i I 15 YEARS EQUIPMENT AMORITIZATION: _
Rear Packer Truck: 25,000001
i I Rear Packer Truck: S 26.000.
2 - Yd. bum iter 57.80
1 1 4 - Yd. Dum Ater. 8a
_
Subtotal: 26,067.50
Subtotal: 20.aM
Personnel Costs/F es:
Personnel Costa/F ea:
2 WC 0 S33,3131.25 ■ 6a,762.50
2 WC ,38125 68,7
1 WCOII 36.483.72
1 WCOII 38.483.
Subtotal: 103".22
Subtotal: 103
Operation/Maintenance Coats: 12.930.40
tlon%Wntenance Costs: 12.933.50
Total Costs: 142.234.42
Total Costs: 142.268.52
COSTS: (1) TRUCK
RIEVENUI': (1) TRUCK
2 DAYS:
2 DAYS:
S48.18 x 12 = SS78.16 x 20 = 511.56320 (2-YO.)
$130.42 x 12 = S1,5a5.04 x 20 = S31.
598.36 x 12 = $1.156.32 x 20 = S23.126.40 (4-YD.)
S358.64 x 12 = $4.297.W x 20 = S85,
3 DAYS:
3 DAYS:
S 72.27 x 12 = S 887.24 x 20 = $17,344.60 (2-YD.)
S192.43 x 12 = S2,309.16 x 20 = 548.1
5144.54 x 12 = $1,734.4a x 20 * S34.689.80 (4-YD.)
SM.55 x 12 = S4.038.80 x 20 ■ SW,
4 DAYS:
4 DAYS:
S 96.35 x 12 = S2,156.32 x 20 = S%3,238.40 (2-YD.)
$257.54 x 12 = $3.090.48 x 20 = SGIAMM
S19272 x 12 = S2.31284 x 20 = S48.2'.i2.80 (4-YD.)
$425.71 x 12 = S5.108.52 x 20 = S102.1
5 DAYS:
5 DAYS:
$120.45 x 12 = 51.445.40 x 20 = $14.454.00 (2-YD.)
S371.25 x 12 = $4.455.12 x 20 = $44.551
$240.90 x 12 = S2.890.80 x 20 = 528.908.00 (4-YD.)
$517.53 x 12 = S8.210.36 x 20 = $82.103.60
Disposal Costs: 1"A85.20
Total Revenue: ' 5514,844.40
Operating Coats: 142.Z34.42
11.F
20%
Total Operating Costs: S 341,699.62
FRANCHtBE PEE: 102.ta6Q.Q8
TOTAL: 411,875.52
Less Operating Cosh: 341,699.62
Profit: 70,17&90
Additional trucks would generate the
following reoecuning revenue annually:
(4) Trucks: $280,703.60
(8) Trucks: 561,407.20
(10) Trucks: 701,17590
-
I
e
Pepe 1
9 9 - 297
-..'r .n f"Mulls
Telephone Surrey
Commercial Franchising In Various Municipalities
Dkwe-171
0
*w
CITY OF MIAMI
NET BOUNDARIES
s
woes lea. Fsah. ®*pt.
ii
9a! 2,
CITY OF MNMiN TOTAL BUSINESSES
N O
U E
L
W
A
0
0
W
F
C
. O
so
F
T
P A
1 a
Y
L
V
0
L
0
E R
W R
0
E F
P S
T 0
N
L
E
W
A
R
0
0
H
T
F
E T
T E
W
A
R
N
H
0
A
C V
C V
A
A
R S
L L
0
P
T
T
A
A
L
0 E
0 E
V
L
1
E
0
A
0
0
V
M
C
C
A
D
C
D
T
W
W
A
I
W
0
0
B
G
E
H I
T
N
N
N
A
N
N
A
E
A T
A
A
Y
U
U
1 Y
H
T
T
T
i
NET CODE
1
2
3
4
6
9
7
a
9
10
11
12
13
APTS
302
464
210
336
482
208
100
761
341
318
W1
57
1,465
S.te1
HOTEL/MOTEL
ROOMING HOUSE
20
a
11
17
3
14
27
9
10
4
7
7
43
ISO
RETAIL
150
441
2-M
218
ea3
74
1118
642
655
378
180
48
449
5,210
WHOLESALE
STORAGE
11
118
13
138
349
11
204
20
10
13
1
it
O1/
MANUFACTURING
8
63
14
70
145
5
53
43
19
61
2
21
449
OFFICE BLDG
197
176
%
202
342
22
2334
809
013
$401
458
19
337
6.2a1
PARKIMO
GARAGES
AUTOSALES
2
6
11
4
381
41
82
22
61
17
13
s
a
202
AMUSEMENT
PARKS DOG
1
ITS
2
2
1
a
ARENAS.
DANCEJPOOL
HAULS. BOWLING
1
1
1
a
a
2
1
4
2
23
THEATERS
1
31
3
11
2
1
2
.13
HOSPITALS
2
a
3
3
1
3
20
PRIVATE
SCHOOLS
3
31
2
1
2
1
7
19
11
12
4
a
7
77
ADULT
CONGREGATE
3
1
4
ADULT
CONGREGATE
1
( MM)
1
2
21
1
1
2
0
2
20
COMMUNITY
BASED
1 a
1
4
8
2
2
4
1
1
26
COMMUNITY
PASED MONO
1
1
3
1
2
7
SUSTANVCE. ABUSE
(INor►profl
4
1
SUBSTANCE
ABUSE
0
DAY
CAREJMURSERY
(Nan-prw
22
15
8
14
a
a
7
21
1
3
3
9
9e
DAY
CAREINURSERY
(Prom)
2
11
3
1
1 1
11
10
a
1
9
55
ACCESSORY USE
(HOME
OCCUPATIONS)
0
MISCELLANEOtp
11
25
21
14
00
9
341
36
35
13
13
4
24
305
MARINA$
2
4
2
a
3
1
5
4
29
RESTAURANT
LOUNGE/W
24
30
331
37
106
10
1ae
145
ee
57
58
0
sa
a73
FAWN SHOP
1
1
3
4
a
12
11
3
1
a
50
CONVENIENCE.
STORE
5
0
3
21
81
2
15
18
101
3
2
6
92
PUBLIC SCHOOL
1
10
7
31
31
0
3
0
4
4
1
1
1
48
TOTAL
740
IPM
WO
1,0641
373
4
1
1.749
1 a96
820
160
2.5031
20,137
T
WWI
NAME
0047
Nw-97
Dee-97
3ar91
Feb-"
mar-"
.98
•91
1ut-91
IW-91
A
9<
Toed
SOME Rf IM
1 3.94
319.62
1,13624
603.80
Irsso.91
353.33
654.119
2,t30.61
3rS34.94
3 991.65
2,473.14
4,30343
23 796.97
8m.
900.00
130.00
430.00
I,2W.OD
600.00
600.00
4,2W.00
FBNf3 HD$6,W.45
ssmm
97935.19
173,65839
11651%
113=561
196,783.32
I1 NO 45
204 752.47
111990.70
1 48024
1 17 99.60
TRASK NC
107.00
120.00
227.00
TEC VOMM
4.01717
1 4,193M
409091
4,245.79
4,348.02
4,331.14
1819.90
4.606.97
CM.24
6470.32
6,33433
3993
60,716 61
AL CJVtff4t3
4 692.%
4,322.64
3,765.06
14,716.66
ALWASTE ASTE
511,710.13
31 06234
33 49730
27 3.90
31923.80
33611."
30 401.17
36AS 1.33
41 756.34
54 012.70
719t9.49
4%.32492
HAI>t.l►Ki
2.316.131
1,38131
1.11922
I1t139
t St.tt
7,263.35
12,221.75
6,209.05
6,497.17
792124
SAW.08
874437
69.30131
SMIFTAT10t1
489271
379.13
547.59
50.94
37822
609.64
611.50
453.53
731.11
311.96
1.404.76
6,t09.91
RECYCLING
11 .67
1 19,204.75
9625.35
9,120.91
IS t0.06
3,994.05
11,5711.20
15,339.50
7,973.64
17 2-59.01
120,U4.44
VWAM
21 .1S
1
46.936.16,
22,793.04
11 "3.42
26.661.211
27126.12
34ML92
32,990.25
3917523
372,221.59
PAC
1
1,372.73
1129.30
547.501
It7.30
28123
1 546.76
11924
116030
BM4ON@R
123
4b
MMSTE
309.90
321.73
171.50
502.50
494.63
594.75
70030
073.60
176.00
.5 13
P�M~Y SYSTBA
138.00
291.00
113M
165.00
195.00
139.00
230.00
1 5.00
1793.00
1 00
1141.00
23
RECYCLING
LIM.16
2,749.93
2.%3.92
5133
1622.60
3 %7.34
l6og3.95
4,723.16
63521
SArtTATKM
425.74
49t.34
211237
694.9t
293.63
224.96
512.94
516.06
31$1.12
CJVtT11G IN
692.77
70933
117.27
994.97
979.52
313.16
MAO
1 AL.12
1166.77
1,861.3)
2,126.33
1 tl
@MtO►oBdT
322.95
722.65
63920
79420
3%.75
718.95
II58.70
1083.10
913.10
1024.%
7
nONT OF DADE
7 739.43
71072.54
33 1.32
197.42
I33 962.10
25.863.32
WU.69
7 OIL O
121,183.11
90 657.49
$4 04234
9"AM19
ALS
1324"73
20.73129
211,M49
321,)f3.04
261,061AG
397.15730
IW72M
MA US
I9t t2 U
433A4334
nSA69M
327,16)35
PLUS CASH RF.0 OM FOR AUDI M
1 23
1
•••
BaLMPMAUDITS
110,120M
•••
Due from Conral Cwft. Bills A R=Wder Notias mn am Memo mu also aeol
to Solid Waft DMW-
w r000mmmd comllatim of cmpmys We are also in the of
the cummy
M Na ewe Is MbffW b M Lew D %WMWe b SCOW
Pop I
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