HomeMy WebLinkAboutAddendum No. 3-'-tij o ..I4 Mt
LARRY M. SPRING
Chief Financial Ofcer
ADDENDUM N0. 3
RFQ No. 222246 August 4, 2010
CARLOS A. MIGOYA
City Manager
Request for Qualifications (RFQ) for Commercial Solid Waste Hauling Services
TO: ALL PROSPECTIVE PROPOSERS:
The following changes, additions, clarifications, and deletions amend the RFQ documents of the above captioned
RFQ, and shall become an integral part of the Contract Documents. Words and/or figures stricken through shall be
deleted. Underscored words and/or figures shall be added. The remaining provisions are now in effect and remain
unchanged. Please note the contents herein and reflect same on the documents you have on hand.
THE CLOSING DATE AND TIME FOR THIS RFQ HAS BEEN EXTENDED. THE NEW CLOSING DATE AND TIME
IS:
oo Friday, August 13, 2010 at 2:00 p.m.
HEREIN AFTER, THE FOLLOWING MODIFICATIONS HAVE BEEN MADE TO SPECIFIC SECTIONS OF THE RFQ
SOLICITATION DOCUMENT.
Section 2:12, Insurance Requirements, of the RFQ solicitation document has been modified as follows:
(5) Performance Bond/Irrevocable Letter of Credit in the amount of $25.000 35;080
City included as obligee on the bond and sole beneficiary on the letter of credit.
Section 2.16, Performance Bond Requirements, of the RFQ solicitation document has been modified as
follows:
The Qualified Proposer (s) agrees to maintain, for the term of this Agreement, a Performance Bond,executed
by a surety company duly authorized to do business in the State of Florida, which shall be counter -signed by
an agent for the company, resident in the State of Florida. The amount of the bond shall be equal to the
Qualified Proposer's previous 12 month franchise fees paid to the City (including the annual franchise fee,
monthly 24% franchise fee, annual per account fee, and any other franchise fees paid to the City) or a
minimum of $25.000 35,998, whichever is greater, as security for the faithful performance of the Franchise
Agreement. The surety shall have a rating classification of "A-" and a financial category of Class V as
evaluated in the current Best's Key Rating Guide, Property Liability. City of Miami shall appear listed as
obligee. In lieu of a Performance Bond, the Qualified Proposer may submit an Irrevocable Letter of Credit,
cash, certified check, treasurer's or cashier's check issued by a responsible bank or trust company
payable to the City of Miami.
The Performance Bond, in a form acceptable to the City, shall be submitted together with four (4) original
signed copies of the Franchise Agreement and an approved insurance certificate(s), listing the City as
Additional Insured, to the Purchasing Department within ten (10) business days after receipt of Notice of
Award, and prior to final execution of the Agreement by the City.
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NOTE: Performance Bonus placed under the current Commercial ,Vaste Hauling Services t-rancnlse
Agreement # 03-04-107 cannot be rolled over or transferred to the new Commercial Solid Waste Franchise
Agreement solicited through RFQ 222246. This is a new solicitation process and current and new franchise
holders are required to meet the performance bond requirement. Once the new Franchise Agreement is fully
executed, the performance bonds submitted under the Commercial Waste Hauling Services Franchise
Agreement# 03-04-107 will be returned to the respective franchisees.
HEREIN AFTER THE FOLLOWING MODIFICATIONS HAVE BEEN MADE TO SPECIFIC SECTIONS OF THE
COMMERCIAL SOLID WASTE FRANCHISE AGREEMENT. A REVISED FRANCHISE AGREEMENT WITH THE
MODIFICATIONS INDICATED BELOW IS ATTACHED HERETO AS EXHIBIT A.
The title of the Commercial Solid Waste Franchise Agreement has been modified as follows:
CITY OF MIAMI
NON-EXCLUSIVE
COMMERCIAL SOLID WASTE
FRANCHISE AGREEMENT
BETWEEN THE CITY OF MIAMI
AND
Page 1 of the Commercial Solid Waste Franchise Agreement has been modified as follows:
THIS CITY OF MIAMI NON-EXCLUSIVE COMMERCIAL SOLID WASTE FRANCHISE
AGREEMENT ("AGREEMENT'), made and entered into this day of , 2010 by and between
the City of Miami, Florida, a municipal corporation organized and existing under the laws of the State of
Florida, (hereinafter referred to as "CITY') and I Inc.
a corporation, qualified and authorized to do business in the State of Florida,
(hereinafter referred to as "FRANCHISEE").
WITNESSETH:
WHEREAS, on September 28, 1999, Ordinance No. 11837 was passed by the Miami City
Commission which amended Chapter 22, entitled Garbage and Other Solid Waste, of the City Code to feplase
allow regulatory permits for providing non-exclusive Commercial Solid Waste Services with Commercial
Franchises to qualified firms; and
WHEREAS, the Git�'GOFAFAiSGiGR has deteFrniRed that it is in the best interest of the GITY to issue a
and
WHEREAS, FRANCHISEE is desirous of obtaining a non-exclusive Franchise from the CITY to
provide Commercial Solid Waste Collection Services within the CITY as set forth herein; and
Section 2.2 under Article Il, DEFINITIONS, of the Commercial Solid Waste Franchise Agreement has been
modified as follows:
Agreement shall mean this F=FaRG;ise FRANCHISE AGREEMENT, as it may hereinafter be amended or
supplemented.
Annual Franchise Fee shall mean the yearly fee charged by the City to each F=FaRGhisee FRANCHISEE who
operates within the City limits and collects garbage and trash. See Section 22-50(b) of the City Code.
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Annual Specialized Wasty Handling Fee shall mean the yearly fee ct.drged by the City to eacn 1--F-aR.se
FRANCHISEE who operates within the City limits and collects trash, excluding garbage. See Section 22-50(c)
of the City Code.
Commercial Business shall mean and include all retail, professional, wholesale, and industrial facilities and
any other commercial enterprises, for profit or not for profit, offering goods or services to the public. This
definition incorporates by reference the definition of "Commercial Establishment" set forth in § 15-1 of the
Miami-Dade County Code.
Commercial Hauler shall mean a licensed City of Miami Free FRANCHISEE that operates within the
City limits and provides certain services to Multi-Family and Commercial establishments including but not
limited to the following; garbage, trash, recycling, roll-off, and specialized waste handling service, etc.
Franchise Fee shall mean the monthly percentage of Gross Receipts remitted to the City by each FraRGhisee
FRANCHISEE. See Section 22-56(b) of the City Code, as amended. This fee may be amended or adjusted by
the City, from time to time by amending this section of the City Code, and the FRANCHISEE acknowledges
and agrees that the monthly percentage of dross receipts payable as amended or adjusted will automatically
apply to this Agreement and that the FRANCHISEE will promptly execute an addendum or amendment
recognizing the FRANCHISEE's obligation to pay such adiusted or amended fee as of the effective date of
such amendment. Failure to pay such FRANCHISEE fee , as adjusted or amended, or failure to execute the
addendum or amendment to this Agreement FRANCHISEE shall be deemed as in default of this Agreement
pursuant to Article IX. Should a default occur pursuant to Article iX, then this Agreement will be terminated
pursuant to Article X.
Gross Receipts shall mean all monies, whether paid by cash, check, debit or credit, collected from customers
resulting from all transactions and activities in the FRANCHISEE'S regular course of business and trade
including garbage, industrial, solid waste, used cooking oil waste, portable toilets and sanitation,
environmental charges and fees, containerized waste, environmental waste services (vactor), equipment
rental and leasing, fuel surcharge, construction and demolition debris, roofing materials, trash, litter,
maintenance, compactors, refuse and/or rubbish collection removal and disposal services rendered, hand bag
collection, recycling, or from any other source related directly or indirectly from waste collection services,
including, without limitations, all income derived from leasing and renting of real or tangible personal property,
the use of dump trucks, grappling trucks, roll-off trucks, trailers, roll-offs, boxed in, framed, fenced in, or
otherwise designated storage areas, etc., containers, bagsters, Greets chutes, and any other vehicles and
equipment used for collection and disposal of any debris by the FRANCHISEE, exclusive of taxes as provided
by law, whether wholly or partially collected within the CITY, less bad debts. Gross Receipts shall not include
income derived from the transportation, storage, treatment, collection, and removal of biomedical, biological, or
hazardous waste as herein defined.
Permit Per Account Fee shall mean the anal charge assessed by the City beginning each October 1, aad
f"�#e, for each flew account and roll-off that is acquired or maintained throughout the Fiscal Year, by
FRANCHISEE, f,-.F eveFy ,,f With ,.,,,,,m they, aRtFaGt for the provision of commercial solid waste
services.
Specialized Waste Handling Services shall mean the collection and disposal of solid waste that requires
special handling and management, including, but not limited to white goods, waste tires, used oil, lead-acid
batteries, construction and demolition debris, ash residue and biomedical and biological waste. It should be
noted that these are ;=PaRGhisee: FRANCHISEES that are in the roll-off collection business and do not collect
garbage.
Section 3.1 under Article III, GRANTEE, of the Commercial Solid Waste Franchise Agreement has been
modified as follows:
The CITY grants unto the FRANCHISEE the continued- non-exclusive right and privilege, with related
obligations, to provide commercial solid waste services in, under, upon, over and across the present and
future streets, alleys, bridges, easements, public rights-of-way and other public places within the CITY
boundaries, present and future, for contracted multifamily, commercial business, governmental, religious,
educational, profit and non-profit agencies and/or property owners for solid waste collection and disposal
services.
Page 3
Section 3.2 under Article III, Gr:ANTEE, of the Commercial Solid Wasic Franchise Agreement has been
modified as follows:
The CITY further grants unto the FRANCHISEE the non-exclusive right and privilege, with related obligations,
to provide solid waste collection and disposal services for construction, demolition and renovation sites located
within the CITY on a contracted basis.
Section 4.5, under Article IV, OBLIGATIONS OF FRANCHISEE, of the Commercial Solid Waste Franchise
Agreement has been modified as follows:
In cases of natural or man made disasters, the City Manager may grant the FRANCHISEE reasonable
variance from regular schedules and routes. As soon as a declaration of an emergency is issued by the
Mayor, FRANCHISEE shall make reasonable efforts to secure its containers in order to prevent hazards
and/or threats to public safety and health. As soon as practicable after such disaster, the FRANCHISEE shall
advise the CITY and its customers of the estimated time required before regular schedules and routes can be
resumed.
Section 4.11, under Article IV, OBLIGATIONS OF FRANCHISEE, of the Commercial Solid Waste Franchise
Agreement has been modified as follows:
FRANCHISEE agrees to strictly adhere to the provisions of Section 22-46 and Section 22-93, as amended, of
the City Code which states it shall be unlawful for any FRANCHISEE to provide service to any commercial
property within 100 feet of a residential district between the hours of 11:00 p.m. and 7:00 a.m., and to strictly
adhere to any other terms and provisions of this Agreement as specified in the Notice of Violation, except and
only as determined by the Director of the Department of Solid Waste.
Each Fiscal Year (October 1, through September 30), the amounts assessed for non-compliance of this
section will be as follows:
1s' Non -Compliance: $ 250.00
2nd Non -Compliance: $ 500.00
3rd Non -Compliance: $1,000.00
Each Additional Non -Compliance: $1,000.00
FRANCHISEE aarees to comaly with Section 15 of the Miami -Dade Countv Code, entitled "Solid Waste
Management", as amended. All Multi -Family and Commercial establishments are required to initiate a
recycling program. The recycling program shall be serviced by a licensed City of Miami FRANCHISEE.
Failure of FRANCHISEE to provide a recycling program shall cause a default in this agreement pursuant to
Article IX; failure to cure said default may result in termination of said agreement pursuant to Article X.
Section 4.11.2, under Article IV, OBLIGATIONS OF FRANCHISEE, of the Commercial Solid Waste Franchise
Agreement has been modified as follows:
- - - -- -
Mir
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GE)MpliaRGe with the FequiremeRtS Gf SeGtien 15 2.2. $950.90. See SeGtJoR 45 2.2, Miami Dade GOURty Gede�
PFOgFam iR GGMP'iaRGe with the FeqU;FeFReRtS Of SeGtiOR 15 2.3. ;300.00. See SeGtiOR 45 2.3, Miami Dade
Germy Sege.
FailLiFe by Q9MFAefGia1 establishmeRt hay'Rg FROFe thaR 3,009 and less thaR 10,009 squaFe feet te previde-a
FeGYGIiR9 --Fnpl;anGe with the Fequirements E)f SeGt;E)R 4 5 2.3. $650.00. See SeE;ti9R 15 2.3, Mia
i,n with the �f SeGt;GR 4 5� ""915501.1-100.
Ggmplc co ti6f} of y �9de
For any other failure to comply with the terms of this Agreement, the following amounts will be due as
liquidated damages and not as a penalty, for the violations of the Agreement as specified in the Notice of
Violation.
First Violation: $ 250.00
Second Violation: $ 500.00
Third Violation: $1,000.00
Each Additional Violation: $1,000.00
These amounts are established for the failures bV the ;=,;see FRANCHISEE to comply with this
Agreement. It is not the intention of the City to assess the entire amounts for minor failures to comply with the
Agreement unless they are of a recurring or continuing nature. The City reserves the right to assess twenty
(20%) of the amounts set forth in this section for minor failures to comply with the Agreement. The exact
damaaes suffered by the Citv cannot be known or ascertained and these amounts represent liquidated
damages due at the time of the violation
Section 4.11.3, under Article IV, OBLIGATIONS OF FRANCHISEE, of the Commercial Solid Waste Franchise
Agreement has been removed and incorporated into Section 4.11.2.
rIr 'Mr - 1M=="M- - -- 51 -
Section 4.12, under Article IV, OBLIGATIONS OF FRANCHISEE, of the Commercial Solid Waste Franchise
-Agreement.has been modified as follows:
FRANCHISEE is required, pursuant to Section 22-2 of the City Code to notify the Department of Solid Waste,
at least seven business days prior, of accounts for which it will discontinue service and advise if said accounts
are in arrears. Should any accounts be in arrears and FRANCHISEE seeks remedy (court decisions,
collection agencies, judgments, mediations and etc.) the City shall receive from proceeds collected its
applicable fees and notified of any and all hearings and/or meetings for participation. Also, upon resumed
service, FRANCHISEE agrees to immediately notify the Department of Solid Waste. FRANCHISEE shall
furnish such notification(s) as are provided in Section 22-2, of the City Code.
Page 5
Section 4.13, under Article IV, OBLIGATIONS OF FRANCHISEE, of the Commercial Solid Waste Franchise
Agreement has been modified as follows:
FRANCHISEE acknowledges that under this Agreement, price controls will be primarily extracted through
competition amongst the Franchise companies for existing and future accounts. FRANCHISEE further
acknowledges that any increase in pricing by the FRANCHISEE could result in the customer seeking better
pricing from another FRANCHISEE. TherefoFe-F=RANCHISEE agFees that neRe of the requirements URder aRy
inGFeases in epeFating Gests suah as tipping fees, labor and E)theF related epeFat'R9 GE)StS. in addition, if a
RGt FBSPGRd te the Fequest, the r-ity shall have the Fight to Femeve the GGRtaiRBF and assess Gharges fGF maR
hetes, equipmeRt a dispesal costs to the FraflGhisee. Also, i. If the City identifies an illegal container placed
and operating within the City limits by a non -licensed Commercial Hauler who is providing Commercial Solid
Waste Service without a Franchise from the City, the City will confiscate said container and assess charges for
man-hours, equipment, disposal and administrative costs and fines.
Section 4.15, under Article IV, OBLIGATIONS OF FRANCHISEE, of the Commercial Solid Waste Franchise
Agreement has been modified as follows:
At least annually (October 1) and as determined but Ret ;requeRtl„ then q ar<erlr-as-dote, AiRed by the
Director of the Department of Solid Waste, each FRANCHISEE shall supply the following information on a
diskette, compact disc, or other acceptable format and in the manner prescribed by the Director of the
Department of Solid Waste.-
(1)
aste:
(1) A listing, as of the reporting date, of the names and addresses of customers, and the
addresses of each location served.
(2) The number and capacity of each dumpster and compactor per account.
(3) The list of accounts within the City of Miami for which hand collection of bags/cans is provided.
(4) An accounts receivable aging report for each City of Miami customer.
(5) A listing of City of Miami accounts that were charged off as bad debts.
Section 5.1, under Article V, FRANCHISE FEES, of the Commercial Solid Waste Franchise Agreement has
been modified as follows:
FRANCHISEE agrees to pay all applicable fees as contained and defined in Chapter 22 of the City Code,
ARTICLE II -DEFINITIONS of the Franchise Agreement and the Franchise Agreement in its entirety, within
specified time frames, as may be amended or adiusted from time to time by the enactment of City Code
amendments as referenced in "Franchise Fees" in Article II of this Agreement.
Section 5.2, under Article V, FRANCHISE FEES, of the Commercial Solid Waste Franchise Agreement has
been modified as follows:
FRANCHISE FEE: FRANCHISEE agrees to remit monthly to the CITY, twenty four percent (24%) of its Gross
Receipts, generated from accounts within the City limits, or $500.00, whichever is greater. Accompanying
the remittance, FRANCHISEE must provide the CITY with a list of the customers' names, addresses and total
amount collected. FRANCHISEE agrees to maintain a second list which reflects an aging schedule of
individual account charges which must be retained for a period of 60 months from the end of the Agreement
and made available at all times to CITY auditors. Twenty-four percent (24%) of the total amount collected
should equal the remittance amount paid to the City. The remittance of the previous month's collection should
be received by the CITY on or before the last day of each month. Failure to remit by -the last day of the
following month will cause the FRANCHISEE a one and one half percent (1.5%) penalty per month on the
balance due. If payment is past due in excess of 60 days, the Department of Solid Waste will initiate its
procedure to revoke the FRANCHISE and attach the Payment and Performance Bond for all monies due and
owing the City, including costs. It should be noted, the twenty-four percent (24%) remitted monthly to the City,
should be calculated on all monthly gross receipts, excluding receipts derived from biomedical, biological, and
hazardous removal, as defined in the Agreement collected from the customers, exclusive of taxes and the
franchise fees. The gross percentage fee under this section does not apply to franchises engaged solely in
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biomedical, biological, and hazardous removal services. The City may , prom time to time. adiust this fee by
amending � 22-56 of the City Code. FRANCHISEE acknowledges it shall be obliged to pay such fee as
adiusted or amended as of the effective date of such legislation and will promptly execute an
addendum or amendment affirming the foregoing.
Section 5.8, under Article V, FRANCHISE FEES, of the Commercial Solid Waste Franchise Agreement has
been modified as follows:
Safety Inspection Fee: €,Fa^„G„ee FRANCHISEE agrees to pay the City an annual $500.00 per vehicle
inspection fee. This is a regulatory fee as referenced in Section 166.221, Florida Statutes. This fee is for the
municipal inspection of the vehicles being used by Franohi ee FRANCHISEE within the City. The inspection
of each vehicle will occur not less than on an annual basis. These are vehicles that are used by nom,=see
FRANCHISEE to operate within the City boundaries. The vehicles will include, but are not limited to, roll -offs,
grapple trucks, front and rear end loaders, vactor trucks, dump trucks, trailers, and any other vehicles used for
business, collection and disposal of any debris by the F=FaRGhisee FRANCHISEE. G,�ee FRANCHISEES
that are caught operating within the City limits without a vehicle inspection decal, will be subject to the violation
schedule as specified in Section 4.11.2.
Section 7.2, under Article VII, INSURANCE AND BONDS, of the Commercial Solid Waste Franchise Agreement
has been modified as follows:
FRANCHISEE agrees to maintain, for the term of this AGREEMENT, a Performance Bond, executed by a
surety company duly authorized to do business in the State of Florida, which shall be counter -signed by an
agent for the company, resident in the State of Florida. The amount of the bond shall be equal to the
FRANCHISEE'S previous 12 month franchise fees paid to the CITY (including the annual franchise fee,
monthly 24% franchise fee, annual per account fee, and any other franchise fees paid to the City) or a
minimum of $35,099 $25,000, whichever is greater, as security for the faithful performance of the Franchise
AGREEMENT. The surety shall have a rating classification of "A-" and a financial category of Class V as
evaluated in the current Best's Key Rating Guide, Property Liability. In lieu of a Performance Bond, the
FRANCHISEE may submit an irrevocable letter of credit, cash, certified check, treasurer's or cashier's check
issued by a responsible bank or trust company payable to the CITY of Miami. The Performance Bond shall be
submitted to the Purchasing Department no later than ten (10) business days after approval of the Agreement
by the City Commission and prior to the execution of the Agreement.
Section 10.2, under Article X, RIGHT TO TERMINATE AND/OR TRANSFER AGREEMENT, of the Commercial
Solid Waste Franchise Agreement has been modified as follows:
If the FFarRnGhise FRANCHISEE is in default and owes sums to the City, 14 days after notice of default has
been sent to FRANCHISEE, the City will have the option of transferring the rights under that FRANCHISEE'S
AGREEMENT to a third party. That right to transfer the rights under that FRANCHISEE'S AGREEMENT may
be exercised at any time after the termination of the FRANCHISEE and no intent to later transfer those rights
need be expressed in any notice or other communication with FRANCHISEE.
Section 11.2, under Article XI, NOTICES, of the Commercial Solid Waste Franchise Agreement has been
modified as follows:
Copy To:
City of Miami
Director, Department of Solid Waste Director's Office
1290 NW 2& Street
Miami, FI 33142
Section 14.1, under Article XIV, COMPLIANCE WITH FEDERAL STATE AND LOCAL LAWS, of the Commercial
Solid Waste Franchise Agreement has been modified as follows:
FRANCHISEE understands that agreements between private entities and local governments are subject to
certain laws and regulations, including laws pertaining to nFa,; ;see FRANCHISEE's operations and services,
public records, conflict of interest, record keeping, etc. FRANCHISEE agrees to comply with and observe all
applicable Federal, State, County and City laws, rules, regulations, Codes and Ordinances, as applicable to
FRANCHISEE and its operations and services, as they may be amended from time to time.
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Section 21.1, under Article XXI, ADDITIONAL QUALIFIED PROPOSERS, of the Commercial Solid Waste
Franchise Agreement has been modified as follows:
In addition, Qualified Proposer(s) agree that the City has the right to add additional qualified proposers, (in the
event any of the Franchises are cancelled, terminated, or the F= anGhisees FRANCHISEES otherwise cease to
do business or provide adequate service within the City), who meet all requirements of applicable laws, codes,
rules and regulations and will execute City furnished Agreements, to provide collection and disposal services,
as determined necessary by the City, through the duration of the contract in order to insure availability and
expediency of services. Each proposer who seeks to be added to the Commercial Solid Waste Hauling
Services contract shall be evaluated, consistent with the requirements of this RFQ, to determine qualifications.
HEREIN AFTER THE FOLLOWING ARE ANSWERS TO QUESTIONS SUBMITTED BY PROSPECTIVE
PROPOSERS:
Q1: On July 26, 2010 at 2 pm, Prospective Proposer has to submit Attachment A RFQ 222246 plus 5
copies. What else does a Prospective Proposer need to submit (fingerprints? What about the Request
for Qualifications submitted back in May, is that stili good?)
All: Prospective Proposer shall refer to Section 4. 1, Submission Requirements, of the RFQ solicitation document,
for a list of documents that should be submitted as part of the response to the RFQ.
On Monday, June 28, 2010, Proposers who submitted a response to RFQ 198160 for Commercial Solid Waste
Hauling Services were notified of the City Manager's decision to reject all responses received. Additionally,
Proposers were allowed to visit the City's Purchasing Department to pick up all response copies and original
fingerprint cards submitted under RFQ 198160. Original fingerprint cards submitted in response to RFQ
198160 may be resubmitted in response to RFQ 222246.
Q2: Prospective Proposer has a general hauler permit with Miami -Dade, Miami Beach and several other
municipalities within Miami -Dade County. As such Prospective Proposer is interested in being allowed
to offer Prospective Proposer's services to the City of Miami. Prospective Proposer has roll off
containers and primarily works for General Contractors hauling the construction and demolition debris
from specific job sites. Prospective Proposer does not Haul Solid Waste or household garbage.
Prospective Proposer's question to the City is: Is this the contract that Prospective Proposer needs to
be bidding on in order to be allowed to provide services within the City? If it is not, would the City be
able to direct Prospective Proposer as to how Prospective Proposer can provide services to private
General Contractors within the City.
A2: Yes. Prospective Proposer must submit a response to Request for Qualifications No. 222246 if Prospective
Proposer is interested in providing hauling of construction and demolition debris within the City of Miami
jurisdictional limits.
Should Prospective Proposer be deemed unqualified or does not respond to RFQ 222246, Prospective
Proposer will not be allowed to operate within the City of Miami jurisdictional limits. Additionally, Prospective
Proposer runs the risk of having their roll -off container confiscated from the job site by the City of Miami and
paying a large penalty to the City for the release of the roll -off container.
Q3: Page 3 [Page 4 of the revised Franchise Agreement, incorporated herein this Addendum] of the
Franchise Agreement, definition of "Gross Receipts" includes sources "related indirectly to waste
collection services". The "indirectly" portion is confusing as to its limitations. For example, in the
case of a building with a compactor and a chute (incorrectly referenced as "shoots" in the definitions)
and abuilt-in high-rise recycling/solid waste system that is an integral part of a building, which
componerrts, aside from the obvious collection and -disposal, would be subject to franchise fees? --How
will the City effectively collect franchise fees from compactor manufacturers that are NOT commercial
haulers but still lease directly to building owners? The fact that these manufacturers are NOT
commercial haulers would seem to give them a competitive advantage over the licensed haulers that
are paying franchise fees and contributing in-kind services, which seems unfair.
A3: There are no limitations on monies collected indirectly from waste collection services, by the Commercial
Hauler/Franchisee. Therefore, each Franchisee must include all revenue that is received, directly or indirectly,
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and include this revenue wnen reporting monthly gross receipts to the City. Compactor manufacturers that
lease equipment directly to building owners are not subject to the City's Franchise Fees at this time.
Q4: If recycling is not included in gross receipts, what about compactors and equipment used solely for
recycling?
A4: Recycling revenue is included in the definition of gross receipts. If the Franchisee charges a customer for
compactors and/or equipment that are used solely for recycling, said charges will be subject to the City's
Franchise Fees.
Q5: Please clarify intent of participation in "Neighborhood Cleanups", particularly in light of the fact that
commercial franchisee's work typically includes primarily collection of containerized service.
A5: As defined in Section 2.2 of the Franchise Agreement, "Neighborhood Cleanups" are to provide `periodic
intensive removal of litter, debris and other solid waste material from a designated area of the City, initiated or
approved by the City, its NET offices and/or recognized community based organizations or associations
including special event activities citywide. "
All Franchisees will be required from time to time to participate in Neighborhood Cleanups, The Cleanups
might require the Franchisee to provide trash pickups in roll -offs, or the use of garbage containers, or recycling
containers/bins etc., including the final disposal.
Q6: Section 4.2 of the Franchise Agreement prohibits one time per week collection. Please clarify if there
are any exceptions to this, and also if the intent is a minimum of twice per week or more. (Otherwise, it
may be argued from the current language that every other week service or even monthly service is not
prohibited).
A6: Multifamily residential units and restaurants/cafes (basically any establishment that serves food) cannot have
one time per week service. While the number of pickups varies based on the number of units, the minimum
weekly pickup is twice per week. All other businesses will be monitored, by the City's Department of Code
Enforcement, for adequate container size and service minimums. .
Q7: Please provide a list with service address and service levels of all CITY buildings and properties as
referenced in section 4.7. Are these assigned based on proportion of NUMBER of accounts OR on
proportion of REVENUE as determined by franchise fees paid?
A7: The City of Miami Department of Solid Waste is currently updating the list with addresses of all "CITY buildings
and properties", pursuant to Section 4.7 of the Franchise Agreement. Said list will be provided to all Proposers
deemed qualified after the Franchise Agreement is fully executed by the City. In-kind service assignments will
be made proportionate to the Franchisee's percentage of total contracted commercial accounts within the City
limits. The City facilities can include buildings, parks, police and fire stations, etc.
Q8: Section 4.11.2 of the Franchise Agreement lists county codes and potential fines to PROPERTY
OWNERS. Is it correct to assume then that the city is not attempting to fine commercial haulers for
property owners that refuse to initiate recycling programs? This should be the case, given the fact that
commercial haulers do not have any municipal authority to enforce the county's ordinances.
A8: Section 4.11.2 has been revised as indicated in this Addendum. The City is not attempting to fine Franchisees
for property owners who refuse to initiate a recycling program. As required by Section 15 of the Miami -Dade
County Code, entitled Solid Waste Management", commercial and multi -family structures are required to
initiate a recycling program; the enforcement of this requirement extends to all municipalities. However,
should a Franchisee be unwilling and/or unable to provide recycling service to commercial or multi -family
establishments, this will constitute a default in the Franchisee's agreement in accordance with Section 9.1
which may lead to termination of the agreement in accordance with Section 10.1.
Q9: If a commercial hauler pays the $8,000 annual fee, is it still obligated to pay the $4,000 specialized -fee
(sections 5.4 and 5.7)?
A9: Pursuant to Section 5.4 of the Commercial Solid Waste Franchise Agreement, the "ANNUAL FRANCHISE
FEE" of $8,000 is only applicable to a "FRANCHISEE that performs ONLY Commercial Solid Waste Services
and FRANCHISEE that performs BOTH Commercial Solid Waste Services AND Specialized Waste Handling
Services [...] This fee does NOT apply to FRANCHISEE that performs ONLY Specialized Waste Handling
Services.
Page 9
Additionally, Section 5.7 states the following requirement regarding the Annual Specialized Waste Handling
Fee" of $4,000: "This fee applies to a FRANCHISEE that ONLY performs Specialized Waste Handling
Services within the City limits."
The following table is for guidance purposes only, to further understand Section 5.4 and 5.7 of the Franchise
Agreement:
Type of Service
Annual Franchise Fee
$8,000
Annual Specialized Waste
Handling Fee: $4,000
Commercial Solid Waste
Specialized Waste Handling
Commercial Solid Waste and
Specialized Waste Handling
Q10: The definition of "Gross Receipts" on page 3 [Page 4 of the revised Franchise Agreement,
incorporated herein this Addendum] of the Franchise Agreement now explicitly includes
"environmental waste services (vactor)" under the new agreement, effective October 1, 2010. Is this a
change, or was vactor already considered to be included in the definition, and therefore already
subject to franchise fees and other licensing requirements under the current agreement?
A10: Environmental waste services (vactor) was not clearly defined in the definition of Gross Receipts in the current
Franchise Agreement, for Commercial Waste Hauling Services, RFQ No. 03-04-107.
Q11: Are there any exceptions to the "Safety Inspection Fee" for vehicles that may only be used
infrequently in the City of Miami?
A11: No, there are no exceptions. The safety inspection is for all vehicles that are to be used within the City limits,
whether full-time, part-time or infrequently.
Q12: Will the city consider including the reduction in bond amounts for franchisees that make timely
payments and are in good standing? (This provision in the current agreement helps reduce needlessly
excessive expenditures on bonding for firms presenting little to no risk of default, and as such,
ultimately can benefit the city's customers).
Al2: No, the City will not consider including the reduction in bond amounts for Franchisees that make timely
payments and are in good standing. The Performance Bond Reduction Clause was removed from the new
Commercial Solid Waste Franchise Agreement attached to RFQ 222246.
Q13: Given that franchise fees are passed -through to customers (much like sales tax), Section 4.13 of the
Franchise Agreement should be revised to include Section 5.2 (along with section 5.6 as written) in the
reference to pricing. Commercial haulers do not "charge" franchise fees, they only "collect' them, and
therefore they should not be penalized when municipalities levy increases that are beyond the haulers'
control.
A13: Section 4.13 has been revised as indicated in this Addendum.
Q14: Proposer's response submitted under RFQ 198160 did not include the Commercial Solid Waste
Franchise Agreement. Is this something that the City requires five copies of as well? Why is the City
doing this again if it's only a draft? Should Prospective Proposer wait until it's not a draft?
A14: Prospective Proposer is not required to submit an executed copy of the Commercial Solid Waste Franchise
Agreement at the time of proposal submittal. The "draft' Franchise Agreement is being provided as a sample
of the type of agreement that will be executed between the City and the Qualified Proposers. Prospective
Proposer shall refer to Section 4. 1, Submission Requirements, of the RFQ solicitation document, for a list of
documents that should be submitted as part of the response to the RFQ.
Page 10
The reason the City re -issued the Request for Qualifications for Commercial Solid Waste Hauling Services
was due to additional revisions made to the Commercial Solid Waste Franchise Agreement. Please refer to
Question 29 for a summary of the changes made.
Q15: CASH BOND
As a small hauler, running one (1) pick -up truck, the thirty five thousand dollar ($35,000) bond is
EXCESSIVE and prohibitive to small business owners. Can this be adjusted UP or DOWN to a
reasonable amount on a case by case basis?
A15: The performance bond requirements cannot be adjusted up or down to a reasonable amount on a case by
case basis. Every Franchisee (large or small) must comply with the performance bond requirements stated in
Section 2.16, Performance Bond Requirements, of the RFQ solicitation and Section 7.2 of the Franchise
Agreement as amended through this Addendum.
Q16: COMMERCIAL DRIVER'S LICENSE
As a junk removal company, that has one (1) pick-up truck operating with a Gross Vehicle Weight
(GVW) under the limits for Commercial Drivers License, can this requirement be waived?
All 6: This requirement cannot be waived.
Q17: FRANCHISE FEES
As a small hauler, the 22% of GROSS RECEIPTS or $500.00, is an unfair burden on a business that
runs one (1) pickup truck. Can it be limited to 22% of GROSS RECEIPTS?
A17: Pursuant to Section 5.2 of the Commercial Solid Waste Franchise Agreement, Prospective Proposer shall note
that the Franchise Fee is now "twenty four percent (24%) of its Gross Receipts, generated from accounts
within City limits, or $500.00, whichever is greater." Therefore, the monthly remittance of 24% of gross receipts
or a monthly remittance of $500, whichever is greater, cannot be changed.
Q18: FRANCHISE ANNUAL FEE
The Franchise Annual Fee should increase each year on the same percentage increase for Commercial
Solid Waste as Special Waste Handlers Services, not on a dollar figure each year. The Commercial
Solid Waste Services 1st year fee is $7,500 and 2nd year is $7,750 a increase of 3.33%. The Special
Waste Handlers Services 1 st year fee is $3,500 and 2nd year is $3,750 a increase of 7.14%
A18: Section 5.4 will not be modified. Pursuant to Section 5.4 of the Commercial Solid Waste Franchise Agreement,
the new Annual Franchise Fee for Franchisees who provides Commercial Solid Waste Services or both
Commercial Solid Waste Services AND Specialized Waste Handling Services is $8,000, which shall increase
annually by $500.00. Also, pursuant to Section 5.7 of the Franchise Agreement, Franchisees who provide only
Specialized Waste Handling Services, shall pay $4,000 annually, which shall increase annually by $500.00
This increase not based on a percentage basis, but on a set fee of $500.
Q19: SPECIAL WASTE HANDLERS SERVICES
Prospective Proposer uses one (1) pickup truck and multiple dump trailers to collect junk from
business on a one time basis. All of our vehicles have State of Florida license plates and are parked in
public parking spaces or private property. Since the junk is being removed by a licensed vehicle
rather than a container would the FRANCHISE apply to my business model?
A19: Every aspect of the Franchise Agreement would apply to your business model directly. Also, the use of
Prospective Proposer's pick-up truck(s) and dump trailers, would be subject to all the rules and regulations as
stated in the Franchise Agreement.
Q20: EXCLUSIONS - GENERAL HAULER PERMIT
Does a DUMP TRUCK collecting material from a demolition site require the FRANCHISE? Does the U-
_ HAUL truck getting loaded with trash from a move in or out of a new business require a FRANCHISE?
What about a small contractor loading -his -construction debris from a job -in the City limits? How is -a
business that does $500 to $1000 a month with a licensed vehicle within City of Miami limits justify the
expense of $3,500 annual fee 1st year and $6,000 in monthly fees? Can the city prepare a license
similar to Miami Dade County's General Hauler that is $500 per year plus a per vehicle fee and a
Franchise Fee on revenues from material collected with Miami Dade County limits?
A20: At this time, the City cannot prepare any other type of license other than the new Franchise Agreement. All
the examples of companies hauling debris, would be subject to the City's Franchise Fees. If a company is
Page 11
found operating in the City without being a licensed City Franchisee, the company would be subject to fines,
penalties and costs related to confiscation of container(s). A small hauler interested in operating as a City
Franchisee, must weigh the costs involved in becoming a Franchisee against the revenue income, to ensure a
sound business decision is accomplished.
Q21: Prospective Proposer is requesting that the City of Miami provide a new pre -response meeting for the
waste haulers regarding the new RFQ.
A21: The City of Miami is unable to accommodate at this time a pre -proposal conference for RFQ 222246 since the
current Franchise Agreement for Commercial Waste Hauling Services (RFQ No. 03-04-107) expires
September 30"', 2010. Pursuant to Section 2.2 of RFQ 222246, Prospective Proposers were allowed to
submit any questions or clarifications via email or fax to the attention of Yusbel Gonzalez by Tuesday, July 13,
2010 at 4:00 PM.
Q22: Section 5.8 of the Franchise Agreement adds a redundant fee for the haulers to absorb. The legally
required U.S. Department of Transportation inspections and frequent random road inspections ensure
our vehicles are mechanically fit to the current Federal standards.
A22: As stated in Section 5.8, Safety Inspection Fee, of the Commercial Solid Waste Franchise Agreement, the
"Safety Inspection Fee" is a "regulatory fee as referenced in Section 166.221, Florida Statutes. This fee is for
the municipal inspection of the vehicles being used by FRANCHISEE within the City." Therefore, the City will
be performing its' own Safety Inspection for vehicles that operate within the City limits. The City does not feel
this Safety Inspection Fee adds a redundant fee to those inspections performed by the U.S. Department of
Transportation.
Q23: Regarding Section 5.8, SafetV Inspection Fee, of the new Franchise Agreement: The proposed
$500 charge per vehicle for City inspections is not authorized by Federal Law under Section 49
CFR 396 et seq. The US Department of Transportation - Federal Motor Carrier Safety Administration is
the only agency authorized to certify the safety of the vehicles involved. The City inspectors are
limited to verifying that the vehicles have a copy of the annual vehicle inspection as required by 49
CFR 396. As such the proposed $ 500 is not customary or reasonable and not authorized by Section
166.221 Florida Statues (2010) because as it pertains to this charge it is unreasonable, and it has been
preempted by Federal Law.
A23: The City is not preempted by federal law Section 49 CFR 396, et seq, from performing their own safety
inspections. Section 49 CFR 396.234 expressly states that:
(a) A motor carrier or an intermodal equipment provider may meet the requirements of 396.17
through a State or other jurisdiction's roadside inspection program. The inspection must have been
performed during the preceding 12 months. In using the roadside inspection, the motor carrier or
intermodal equipment provider would need to retain a copy of an annual inspection report showing
that the inspection was performed in accordance with the minimum periodic inspection standards set
forth in appendix G to this subchapter. If the motor carrier operating the commercial vehicle is not the
party directly responsible for its maintenance, the motor carrier must deliver the roadside inspection
report to the responsible party in a timely manner. Before accepting such an inspection report, the
motor carrier or intermodal equipment provider must ensure that the report complies with the
requirements of § 396.21(2).
(b)(1) If a commercial motor vehicle is subject to a mandatory State inspection program which is
determined by the Administrator to be as effective as 396.17, the motor carrier or intermodal
equipment provider must meet the requirement of3§ 96.17 through that State's inspection program.
Commercial motor vehicle inspections may be conducted by State personnel, at State authorized
commercial facilities,_ or by the motor carrier or intermodal equipment provider itself under the auspices
of a State authorized self -inspection program.
(2) Should the Federal Motor Carrier Safety Administration (FMCSA) determine that a State inspection
program, in whole or in part, is not as effective as 396.17, the motor carrier or intermodal equipment provider
must ensure that the periodic inspection required by 396,17 is performed on all commercial motor vehicles
under its control in a manner specified in 396.17.
Page 12
The statute makes it clear that a motor carrier is entitled to meet the requirements of the state law when
performing their roadside inspection program; it does not need to defer to the federal law, provided that it is as
effective as the federal inspection program. It is important to note that the burden should be placed on the
recyclable material collector to be in compliance with the state and county motor carrier inspection
requirements.
Additionally, There is no a violation of the commerce class by granting an exclusive franchise agreement to
garbage or recyclable material collections. In Southern Waste Systems, LLC v. The City of Coral Springs, Fla.,
the court very recently held that: "[f]or ninety years, it has been settled law that garbage collection and disposal
is a core function of local government in the United States. At their option, cities may provide garbage pick-up
to their citizens directly .. , or they may rely on a closely regulated private market to provide those services.. .
. The Commerce Clause forbids only the promotion of local economic interests over out-of-state interests. It
does not forbid exclusive franchise agreements whereby a city selects one waste hauler to provide basic
waste collection services to its citizens, so long as the bidding process is open to all, and there is no
requirement that local interests be favored in the performance of the contract." 687 F. Supp. 2d 1342, 1353
(S.D. Fla. 2010). This case, attached hereto as Exhibit B, recognizes you can have a non-exclusive franchise
for recoverable materials which was part of a garbage collection franchise.
The City is entitled to charge reasonable fees for the handling and disposal of solid waste at their facilities. The
fees charged to municipalities at a solid waste management facility specified by the county shall not be greater
than the fees charged to other users of the facility except as provided in Section 403.7049(5). "Solid waste
management fees collected on a countywide basis shall be used to fund solid waste management services
provided countywide". Section 403.709 (1), Florida Statutes.
Q24: Section 4.13 of the Franchise Agreement would require the Franchisee to absorb the 2% Franchise Fee
increase indicated in Section 5.2 since by accepting the Franchise Agreement, the Franchisee would
only be permitted to increase the Annual per account Permit Per Account Fee indicated in paragraph
5.6 and not the Franchise Fees Increase indicated in 5.2
A24: Section 4.13 of the Franchise Agreement has been revised as indicated in this Addendum.
Q25: The same requirements for public hearings adopting Changes to Chapter 22 of the City Code of
Ordinances ( Garbage and Other Solid Waste ) are applicable to any increases by way of annual
franchise fees, per container fees, equipment leasing fees and any other fee increases to those already
in existence by virtue of the current Franchise Agreement and Chapter 22 of the City Code of
Ordinances. It should also be pointed out for the record that as it pertains to fees on
leased equipment, the State of Florida is the only taxing authority entitled to collect sales and lease
taxes and not local counties or municipalities like the City of Miami.
A25: The City Code provides a minimum guideline and does not preclude the administration from supplementing
those guidelines with additional and reasonable operational standards and/or fees in conducting City
business. Also, the City is not collecting sales and lease taxes on leased equipment. Pursuant to Section 2.2
of the Franchise Agreement, the City is requesting that "all income derived from leasing and rental of real or
tangible personal property..." be included in the Franchisee's report of its' Gross Receipts.
Q26: Regarding any RFQ provisions increasing fees and other charges on roll -off equipment and permit
fees: Any such additional charges or fees not consistent with the existing Franchise Agreement must
first by approved by the City Commission and the Mayor. Until these approvals are given, as explained
in Paragraph 2 [Question 25] above, the subject new RFQ 222246 is void as contrary to the City's Code
or Ordinances, Charter, and State and Federal Law.
A26: The City Code provides a minimum guideline and does not preclude the administration from supplementing
those guidelines with additional and reasonable operational standards and/or fees in conducting City
business.
Q27. In the absence of a new pre -response haulers conference regarding the new RFQ, then the City staff,
may not represent to the City Commission that the new RFQ changes have been the subject of
negotiations with affected or interested haulers.
Page 13
A27: Prospective Proposers shall note that "negotiations" do not take place in a Request for Qualifications process.
Additionally, pursuant to Section 18-86(C)(4) of the City's Code, a pre -proposal conference is optional and is
simply hosted to "to explain the requirements of the proposed Procurement [...]".
Q28: RFQ 222246 must be cancelled until such a time as the Staff obtains the necessary authorization from
the City Commission and the Mayor pursuant to a public hearing on a Resolution adopting or denying
the staff's RFQ recommendations. In the Interim the current Franchise Agreements having been duly
approved by the City Commission and the Mayor and codified in Chapter 22 of the City Code of
Ordinances remain in effect.
Any extension of current Franchise Agreements would likewise require approval by the City
Commission and the Mayor following a public hearing.
A28: RFQ 222246 does not need to be cancelled. Requirements in Request for Qualifications Number 222246 and
the Commercial Solid Waste Franchise Agreement are in accordance with Chapter 22, Garbage and Other
Solid Waste, and Chapter 18, Article 111, City of Miami Procurement Ordinance, of the City Code.
An extension of the current Commercial Waste Hauling Services Franchise Agreement RFQ# 03-04-107 does
not require approval by the City of Miami Commission and Mayor. In accordance with Section 1.8, Award of
Franchise Agreement(s), the following is stated:
"The City reserves the right to extend the Agreement for up to one hundred twenty (120) calendar
days beyond the stated Agreement term in order to provide the City with continual service while a new
solicitation is evaluated and/or awarded. if the right is exercised, the City shall notify the Qualified
Proposer(s) of its intent to extend the Agreement at the same price, terms and conditions for a specific
number of days. Additional extensions over the first one hundred twenty (120) day extension may
occur, if the City and the Qualified Proposer(s) are in mutual agreement of such extensions, "
Q29: Why is the Franchise Agreement, attached to RFQ 222246, so different from the Franchise Agreement
attached to the previous RFQ 198160 issued April 14, 2010?
A29: The Franchise Agreement issued under RFQ 198160 failed to contain the latest fee amounts, as authorized in
Section 22-50 and 22-56 of the City's Code of Ordinances. Additionally, an annual Safety Inspection Fee of
$500 per vehicle was incorporated into the new Franchise Agreement. For reference purposes only,
Prospective Proposers may refer to the table shown below for a summary of the changes between RFQ
198160 and RFQ 222246:
RFQ 198160
RFQ 222246
City Code of
Ordinances Section
Franchise Fee: 22 % of Gross Receipts
Franchise Fee: 24 % of Gross Receipts
Section 22-56(b)
Annual Franchise Fee: $7,500,
Annual Franchise Fee: $8,000, increased
Section 22-50(b)
increased annual) b $250
annual) b $500
Permit Per Account Fee: $50.00,
Permit Per Account Fee: $75.00, Franchisee
Section 22-50(a)
Franchisee allowed to pass on fee not to
allowed to pass on fee not to exceed $38 to
exceed $24 to customer
customer
Annual Specialized Waste Handling Fee:
Annual Specialized Waste Handling Fee:
Section 22-50(c)
$3,500, increased annually by $250
$4,000, increased annual) b $500
Q30: The definition of Gross Receipts, in page 3 of the Franchise Agreement, should not include recycling
or any recyclable materials. State law, Florida Statute 403.7046(3)(a -d), prohibit local governments
from charging fees on these items. To comply with state law, these_ provisions must be removed from
the Franchise Agreement.
A30: The City of Miami is allowed to charge franchise fees for picking up recyclable materials. Section 403.7046,
Florida Statutes, is a statute that is not specially about recyclable materials but recoverable materials. The
pertinent part of the statute is section (d) states:
Page 14
"In addition to any other authority provided by law, a local government is hereby expressly authorized
to prohibit a person or entity not certified under this section from doing business within the jurisdiction
of the local government; to enter into a nonexclusive franchise or to otherwise provide for the
collection, transportation, and processing of recovered materials at commercial establishments,
provided that a local government may not require a certified recovered materials dealer to enter into
such franchise agreement in order to enter into a contract with any commercial establishment located
within the local government's jurisdiction to purchase, collect, transport, process, or receive source -
separated recovered materials; and to enter into an exclusive franchise or to otherwise provide for the
exclusive collection, transportation, and processing of recovered materials at single-family or
multifamily residential properties. "
From the plain reading of the statute, the City of Miami is expressly authorized to 1) enter into a nonexclusive
franchise with a certified recoverable material dealer to collect recoverable (garbage or recyclable) materials
from any commercial establishment and 2) may enter in an exclusive franchise agreement to collect
recoverable (garbage or recyclable) materials at single-family or multifamily residential properties.
Q31: Section 4.5 of the Franchise Agreement: The containers are the responsibility of the customer once
they are placed on their premises, the company should only be required to make a reasonable effort to
secure the container. Depending on the size of the company and the time given to comply, as drafted,
it may be impossible.
A31: Section 4.5 of the Commercial Solid Waste Franchise Agreement has been modified to require the
FRANCHISEE to "make reasonable efforts" to secure its containers.
Q32: Section 4.13, of the Franchise Agreement: The City should not be in the position of advocating,
condoning or not respecting a contractual relationship between the company and the customer. As
drafted, there is no recognition that there may be a valid, binding, long term contract in place.
Additionally, if the City allows another hauler to service an account, the City should make it clear that
the customer must be current with the previous hauler and current on the franchise fees. Can this
section be redrafted to respect existing contractual agreements? Can this also be amended to only
allow customers to change at the end of a contract term and to only be able to do so if all fees have
been satisfied?
A32: Section 4.13 of the Franchise Agreement has been revised as indicated in this Addendum
Q33: Section 5.8, Safety Inspection Fee, of the Franchise Agreement: Florida statutes do not allow the City
to assess this fee, only the state. Please remove.
A33: That is incorrect. Florida Statute 166.221, Regulatory Fees, states: "A municipality may levy reasonable
business, professional, and occupational regulatory fees, commensurate with the cost of the regulatory
activity, including consumer protection, on such classes of businesses, professions, and occupations, the
regulation of which has not been preempted by the state or a county pursuant to a county charter. "
The above cited Florida statute is a grant of home rule power to Cities to impose and assess regulatory fees.
Additionally, the City is not preempted by federal law Section 49 CFR 396, et seq, from performing their own
safety inspections. Section 49 CFR 396.234 expressly states that:
(a) A motor carrier or an intermodal equipment provider may meet the requirements of 396.17
through a State or other jurisdiction's roadside inspection program. The inspection must have been
performed during the preceding 12 months. In using the roadside inspection, the motor carrier or
- - - --- - ---.intermodal _equipment pfov�der would need to retain a_ copy of an annual inspection report showing
that the inspection was performed in accordance with the minimum periodic inspection --standards -set- - - - -
forth in appendix G to this subchapter. If the motor carrier operating the commercial vehicle is not the
party directly responsible for its maintenance, the motor carrier must deliver the roadside inspection
report to the responsible party in a timely manner. Before accepting such an inspection report, the
motor carrier or intermodal equipment provider must ensure that the report complies with the
requirements of § 396.21(a).
Page 15
(b)(1) If a commercial motor vehicle is subject to a mandatory State inspection program which is
determined by the Administrator to be as effective as 396.17, the motor carrier or intermodal
equipment provider must meet the requirement of 396.17 through that State's inspection program.
Commercial motor vehicle inspections may be conducted by State personnel, at State authorized
commercial facilities, or by the motor carrier or intermodal equipment provider itself under the auspices
of a State authorized self -inspection program.
(2) Should the Federal Motor Carrier Safety Administration (FMCSA) determine that a State inspection
program, in whole or in part, is not as effective as 396.17, the motor carrier or intermodal equipment provider
must ensure that the periodic inspection required by 396.17 is performed on all commercial motor vehicles
under its control in a manner specified in3� 96.17.
The statute makes it clear that a motor carrier is entitled to meet the requirements of the state law when
performing their roadside inspection program,- it does not need to defer to the federal law, provided that it is as
effective as the federal inspection program. It is important to note that the burden should be placed on the
recyclable material collector to be in compliance with the state and county motor carrier inspection
requirements.
Q34: Section 7.2 of the Franchise Agreement: Prospective Proposer recommends to the City that it raise the
minimum bond to $500,000, much like other fixed fees in the contract, so that it is not floating. There
is an operational burden to the constant adjustment in the bond, not to mention the expense of
securing new bonds. Additionally, please redraft this section to make sure that the company does not
have to provide the City two bonds, one for the existing contract and one for the new contract. There
should not be overlapping bonds.
A34: Section 7.2 of the Franchise Agreement has been modified as indicated in this Addendum and copied below:
"The amount of the bond shall be equal to the FRANCHISEE'S previous 12 month franchise fees paid
to the CfTY (including the annual franchise fee, monthly 24% franchise fee, annual per account fee,
and any other franchise fees paid to the City) or a minimum of $25,000 35,09 whichever is greater,
as security for the faithful performance of the Franchise AGREEMENT. "
Additionally, Prospective Proposers shall note the clarification made in Section 2.16, Performance Bond
Requirements of the RFQ solicitation document, with respect to the submission of two performance bonds:
"Once the new Franchise Agreement is fully executed, the performance bonds submitted under the
Commercial Waste Hauling Services Franchise Agreement # 03-04-107 will be returned to the
respective franchisees. "
Q35: On page 5 of 34 of the RFQ reads:
Unit of Measure
Unit Price: $ Number Of Units : _ Total : $
Questions: 1. Are you requesting a price per yard for hauling services from the hauler?
2. If you are requesting a per yard rate how many yards should we be quoting on?
3. Would you provide more details on this rate request.
A35: Line 1, Commercial Solid Waste Hauling Services, is not applicable to this RFQ. Prospective Proposers are
not required to enter a "Unit Price" and "Total" in this line.
- - ALL OTHER -TERMS AND -CONDITIONS OF THE IFB REMAIN THE SAME.
4La
r g4 1 al Officer
GM/LR/yg
Cc: Bid File
Pa -e 16
EXHIBIT A
Revised Commercial Solid Waste Franchise Agreement
Page 17