HomeMy WebLinkAboutItem VI (A) Approval and Authorization to Extendfor an additional two years the existing Commercial Garbage Collection Franchise Agreement with IWS, effective October 16, 1993 AGENDA 8-3-93
"CENTER OF GOOD LIVING-PRIDE OF WEST ORANGE" Item VI A
Ocoee - --
'"Y ,'�° CITY OF OCOEE RCOMMISSIONERS
USTY JOHNSON
0. 150 N.LAKESHORE DRIVE PAUL W.FOSTER
0 OCOEE,FLORIDA 34761
VERN COMBS
yi}?
(407)656-2322 SAM WOODSON
t� o fsp00 CITY MANAGER
ELLIS SHAPIRO
STAFF REPORT
TO: The Honorable Mayor and Board of City Commissioners
FROM: Ray Brenner, Public Works Director
DATE: July 29 , 1993
RE: Industrial Waste Service, Inc . garbage collection
franchise agreement renewal
ISSUE:
Should The Honorable Mayor and Board of City Commissioners extend
the existing term for an additional two ( 2 ) years commencing with
the expiration of the initial three ( 3 ) year term on the commercial
garbage collection franchise agreement?
BACKGROUND AND DISCUSSION:
On July 20 , 1993 , my staff report was submitted to you for review
and direction to approve or disapprove extending the existing
contract with the Industrial Waste Service Company to collect
commercial garbage within the corporate limits of the city
(attachment #1 ) . Pursuant to Section 4 of that agreement , the city
placed the Industrial Waste Service Company on notice of its intent
to terminate the agreement upon the expiration of the term thereof
(attachment #2 ) . Additionally, the city commission decided to
place this matter on the agenda for August 3 , 1993 to further
consider; specifically, reserving the right to revoke this notice
of intent to terminate and grant a two year extension of the
agreement pursuant to the terms thereof.
There were representatives present at the July 20 city commission
meeting from the Waste Management of Orlando Co. and from the
Jennings Environmental Services, Inc . opposing the renewal . Their
contention was they can do it cheaper and they can do it better.
IWS has supplied information as to costs for Ocoee vs. Maitland
(attachment #4 ) . As you recall , handouts were given to each of you
from the respective companies with information regarding the recent
Request for Proposal with the city of Maitland (attachment #3 ) .
Page 2
Staff Report
The Honorable Mayor and Board of City Commissioners
July 29 , 1993
As further research, Montye Beamer and I received copies of
Maitland' s RFP and met with William Brian Jones , Assistant City
Manager, and Tony Leffin, Public Works Director, to discuss their
recent RFP and their award of the contract . The hand out that Mr.
Wilson, Jennings Environmental Services , Inc . distributed to each
of you doesn' t accurately reflect or compare the rates charged in
our city. For example , hauling is the only charge reflected in
Maitland' s RFP; the City of Maitland, in turn, handles the
administration of the services and bills an amount greater than
hauling charges. Under our franchise agreement with IWS we receive
a 20% franchise fee and the franchisee does the billing, bad debt
collections , and handles customer service .
At the last commission meeting I reported that I had a copy of the
last franchise check from IWS in the amount of $7 ,455 . 32 . In FY 91
the city received revenue totalling $28 , 737 ; in FY 92 the city
received $55 , 374 . ; and for the first 9 months of the current fiscal
year received $52 , 143 . 19 .
It was further reported at the commission meeting by Mr. Doug
Wilson that he could provide staff with a lengthy list of
complaints related to the collection services of IWS. As of this
writing I have not personally seen this list. I feel quite certain
that my office would have heard some of these complaints if there
were as many as Mr. Wilson referred to. I asked Ms. Jo Piercy,
customer service representative with IWS, to provide me with a list
of all customer complaints logged by their department for the past
six months. (Attachment #5 is a copy of Ms. Piercy' s report. ) In
reviewing the report it appears that these are routine complaints
due to the nature of the industry. Staff is satisfied with the
method and timeliness that the complaints were resolved.
Because of the limited size of Ocoee ' s commercial customer base in
1990 , only three complete bid packages were received. As stated in
my staff report of August 17 , 1990 , ( attachment #6 ) there were many
comparisons made among these three haulers , Industrial Waste
Service, Waste Management and Florida Garbage Service Co. To
assist in the overall evaluation of the bidders, Darrel Dees and I
visited each of the three companies. The following areas were
discussed and observed at each of the three: methods of
collection, customer service , billing, containers, inspections of
equipment/back up equipment , accounting methods, and fleet
maintenance , including support staff. Various calls were made to
each company at different times of the day, and lastly, references
were checked.
Based on the information obtained, it was staff' s recommendation to
the Honorable Mayor and Board of City Commissioners that Industrial
Waste Service be selected as the city' s franchisee. Also, it
Page 3
Staff Report
The Honorable Mayor and Board of City Commissioners
July 29 , 1993
should be noted that all of the bids submitted reduced the rates of
the customer' s the city was collecting significantly. At that time
the city was collecting 70 of its total 214 commercial accounts ,
with the remaining being serviced privately without any franchise
agreements . The discussions as to the length of any contract was
centered in terms of optimal time period for the best rates . Three
years with one two year extension allows a company to recoup
capital outlay over a longer period and, hence , lowers rates for
customers , this is still less savings than a straight 5 year
period. Should the city make a policy decision to issue contracts
for only a three year period, three year rates will be considerably
higher to the customers .
Since the commercial base continues to grow and the planning now
involved in the development of the mall and ancillary buildings is
imminent, interest will continue to grow. Performance must be the
number one criteria in any decision related to service delivery!
RECOMMENDATION:
Based on the performance of the Industrial Waste Services , Inc .
Company for the past three years , and the professional manner in
which they resolved complaints, it is staff' s recommendation that
you approve the two year extension of the existing commercial
garbage collection franchise agreement .
RB: jh
Attachments :
#1 - Second amendment to the Commercial Garbage Collection
Franchise Agreement with IWS
#2 - Paul Rosenthal ' s letter - notice of intent to terminate the
Agreement with IWS
#3 - City of Maitland' s RFP rate sheet
#4 - Comparison of costs Ocoee vs . Maitland from IWS
#5 - Letter from IWS regarding complaints (January 1993-June 1993 )
#6 - Staff Report - August 17 , 1990
ATTACHMENT #1
SECOND AMENDMENT
TO THE COMMERCIAL GARBAGE COLLECTION
FRANCHISE AGREEMENT
THIS SECOND AMENDMENT TO THE COMMERCIAL GARBAGE
COLLECTION AGREEMENT is made and entered this 3rd day of August,
1993, by and between the CITY OF OCOEE, a Florida municipal
corporation, (hereinafter referred to as the "City") and INDUSTRIAL
WASTE SERVICE, INC. , a Florida corporation, (hereinafter referred
to as the "Franchisee") .
WITNESSET H:
WHEREAS, the City and Franchisee have previously entered
into a Commercial Garbage Collection Franchise Agreement, dated
October 16, 1990, as amended March 29, 1993 ("the Agreement") ,
granting the Franchisee an exclusive franchise for the collection
of commercial garbage within the corporate limits of the City; and
WHEREAS, Section 4 of the Agreement provides that the
initial 3-year franchise term may be extended for an additional two
(2) years by mutual agreement of the City and Franchisee; and
WHEREAS, on August 3 , 1993 , the Board of City
Commissioners approved the extension of the term of the franchise
for an additional two (2) years pursuant to Section 4 of the
Agreement; and
WHEREAS, the City and Franchisee desire to amend the
Agreement to extend the term of the franchise as more particularly
set forth below;
NOW, THEREFORE, in consideration of the premises and
other valuable considerations, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound hereby,
the City and Franchisee hereby agree as follows:
1. The preambles above are true and correct and are
incorporated herein by this reference.
2 . All defined terms used in this Second Amendment
which are not otherwise defined herein shall have the meaning
ascribed to them in the Agreement.
3 . Pursuant to Section 4 of the Agreement, the City and
the Franchisee agree to extend the term of the franchise for an
additional two years commencing upon the expiration of the initial
3-year franchise term.
4 . Except as hereinabove provided, the terms and
provisions of the Agreement are hereby ratified and confirmed by
the parties hereto and shall remain in full force and effect.
ATTACHMENT #1, page 2
� S
IN WITNESS WHEREOF, the CITY OF OCOEE has caused this
First Amendment to be executed by S. Scott Vandergrift, its Mayor,
and attested by Jean Grafton, its City Clerk, and has caused its
seal to be affixed hereto; and INDUSTRIAL WASTE SERVICE, INC. has
caused this First Amendment to be executed in its name by
, its President and attested by
, its Secretary, and has caused
the seal of said corporation to be affixed hereto, as of the
day of August, 1993 .
"CITY"
Signed, sealed and delivered CITY OF OCOEE
in the presence of:
By:
Printed Name: S. Scott Vandergrift, Mayor
Attest:
Printed Name: Jean Grafton,
City Clerk
(SEAL)
"FRANCHISEE"
INDUSTRIAL WASTE SERVICE, INC.
By:
Printed Name: Printed Name:
President
Attest:
Printed Name: Printed Name:
Secretary
(SEAL)
For the use and reliance only
by the City of Ocoee, Florida.
Approved as to form and legality
this day of August, 1993 .
FOLEY & LARDNER
By:
City Attorney
l
SECOND AMENDMENT
TO THE COMMERCIAL GARBAGE COLLECTION
FRANCHISE AGREEMENT
THIS SECOND AMENDMENT TO THE COMMERCIAL GARBAGE
COLLECTION AGREEMENT is made and entered this 3rd day of August,
1993, by and between the CITY OF OCOEE, a Florida municipal
corporation, (hereinafter referred to as the "City") and INDUSTRIAL
WASTE SERVICE, INC. , a Florida corporation, (hereinafter referred
to as the "Franchisee") .
WITNESSET H:
WHEREAS, the City and Franchisee have previously entered
into a Commercial Garbage Collection Franchise Agreement, dated
October 16, 1990, as amended March 29, 1993 ("the Agreement") ,
granting the Franchisee an exclusive franchise for the collection
of commercial garbage within the corporate limits of the City; and
WHEREAS, Section 4 of the Agreement provides that the
initial 3-year franchise term may be extended for an additional two
(2) years by mutual agreement of the City and Franchisee; and
WHEREAS, on August 3 , 1993, the Board of City
Commissioners approved the extension of the term of the franchise
for an additional two (2) years pursuant to Section 4 of the
Agreement; and
WHEREAS, the City and Franchisee desire to amend the
Agreement to extend the term of the franchise as more particularly
set forth below;
NOW, THEREFORE, in consideration of the premises and
other valuable considerations, the receipt and sufficiency of which
are hereby acknowledged, and intending to be legally bound hereby,
the City and Franchisee hereby agree as follows:
1. The preambles above are true and correct and are
incorporated herein by this reference.
2. All defined terms used in this Second Amendment
which are not otherwise defined herein shall have the meaning
ascribed to them in the Agreement.
3 . Pursuant to Section 4 of the Agreement, the City and
the Franchisee agree to extend the term of the franchise for an
additional two years commencing upon the expiration of the initial
3-year franchise term.
4. Except as hereinabove provided, the terms and
provisions of the Agreement are hereby ratified and confirmed by
the parties hereto and shall remain in full force and effect.
IN WITNESS WHEREOF, the CITY OF OCOEE has caused this
First Amendment to be executed by S. Scott Vandergrift, its Mayor,
and attested by Jean Grafton, its City Clerk, and has caused its
seal to be affixed hereto; and INDUSTRIAL WASTE SERVICE, INC. has
caused this First Amendment to be executed in its name by
, its President and attested by
, its Secretary, and has caused
the seal of said corporation to be affixed hereto, as of the
day of August, 1993.
"CITY"
Signed, sealed and delivered CITY OF OCOEE
in the presence of:
By:
Printed Name: S. Scott Vandergrift, Mayor
Attest:
Printed Name: Jean Grafton,
City Clerk
(SEAL)
"FRANCHISEE"
INDUSTRIAL WASTE SERVICE, INC.
By:
Printed Name: Printed Name:
President
Attest:
Printed Name: Printed Name:
Secretary
(SEAL)
For the use and reliance only
by the City of Ocoee, Florida.
Approved as to form and legality
this day of August, 1993 .
FOLEY & LARDNER
By:
City Attorney
r
93 15:13 $407 648 1743 FOLEY & L" .DNER I�002/002
ATTACHMENT #2
FOLEY Sc LARDNER
III NORTH ORANGE AVENUE.SUITE 1800
' ORLANDO, FLORIDA 32601
TELEPHONE IA071 423-755e
FACSIMILE 14071 ¢48-1743
TAMPA. FLORIDA MAILING ADDRESS:
JACKSONVILLE. FLORIDA MILWAUKEE,WISCONSIN
TALLAHASSEE_FLORIDA POST OFFICE ®OX 21$3 MWASHIN WISCONSIN
WEST PALM REACH. FLORIDA ORLANDO, FL 3260P-219. WASHINGTON. D.0
ANNAPOLIS. MARYLAND
CHICAGO, ILLINOIS
July 21, 1993
Cum= MAIL
REQUESTED
Industrial. Waste Service, Inc.
1099 Miller Drive
Altamonte Springs, FL 32701
Re; Commercial Garbage Collection Franchise
Agreement between the City of Ocoee and
Industrial Wage Service, Inc,, dated
October 16, 1990 (the "Agreement")
Dear Sir/Madam:
Pursuant to Section 4 of the Agreement the City of Ocoee hereby gives notice of
its intent to terminate the Agreement upon the expiration of the term thereof. hi this regard, at
a regular meeting of the City Commission of the City of Ocoee held on Yu1y 20, 1993, the City
Commission decided to place this matter on the agenda for the August 3, 1993 City Commission
Meeting for further consideration, specifically reserving the right to revoke this notice of intent
to terminate and grant a two year extension of the Agreement pursuant to the terms thereof.
Sincerely yours,
62th.j /1444‘0
Paul E. Rosenthal
City Attorney, City of Ocoee
cc: Mr. Ray Brenner
CMVPM130072ELICOTIMOCotilINNDUSTIGIVILOAIWASISISRUno
CITY OF MAITLANU ATTACHMENT #3
REQUEST FOR PROPOSAL
SCUD WASTE COLLECTION,LLDISPOSAL, AND RECYCUNG SERVICES
,ALTERNATE 1
WASub RA
RATE PER MONTH JENNINGS IWS BFI KIMMINS DISPOSAL MGMNT GARB SON, I
GARBAGE&YARD WASTE $8.95 $7.98 $9.68 $12.50 $11.85 $6.90 n/a MAR
OC�� cURBSIDERECYCLING 1.95 1.44 1.65 1.75 1.90 1.75 n a 0.71
14 06 TOTAL BASIC SERVICE $10.90 lia $11.33 $14.25 $13.75 $88.65 rya
021
OPIYONAL2NDOOI.ITC770N $2.85 04 97 I1
$3.30 $21.75 2.45 a0
: ` 11 `,� .....
I : 1t Ali E
ALTERNATE 2;
RATE PER MONTH JENNINGS I1Ys BFII:1MM1tINti DISPOSAL MGMNT GA WASTE GA R
RB SON MAR
COMPACTOR AQOOUNIS $70.63 $58.50 $140.00 $125.00 $110.00 $99.00 $95.50 $73.00
MULTI-FAMILY RESIDENTIAL t\ 1
UNITCOBTPORRECYCLING $0.95 $1.20 $1.00 $1.50 $5.00 $1.25 - $1.60 $1.00
COMMERCIAL RECYCLING: ii..
2 YARD $7.00 $2.80 5.77 5.00 7.00 4.00 1.90 3.50
4 YARD 7.75 7.84 10.39 10.00 10.50 8.00 1.40 7.00
6 YARD 11.10 8.40 15.01 15.00 14.00 12.00 1.20 10.50
8 YARD 14.40 11.20 19.63 20.00 18.00 . 16.00 1.00 14.00
32 GAL CART 5.50 1.00 2.08 10.00 5.00 0.00 2.25 2.25
68 GAL CART 5.90 1.00 2.42 12.50 5.50 0.00 2.50 250
95 GAL CART 6.25 1.00 2.88 15.00 6.00 3.47 2.75 2.7
RATE PER YARD co >: .
oco�
DUMPSTER ACCOUNTS:
2 YARD - 1/WK 3.50 2.08 5.59 4.88 4.00 4.00 2.65 3.25 1.57
4 YARD - 1/WK 2.00 1.82 3.42. 3.68 3.30 4.00- 2.61 2.75 1.57
6 YARD - 1/WK 2.00 1.67 3.2Z 3.36 2.90 4.00 2.57 2.50 1.571
8 YARD - 1/WK 2.00 1.60 3,2Z 3.20 2.75 4.00 2.53 2.35 1.5r
2 YARD- 2/WK 2.50 1.97 4.28 4.00 4.00 2.59 3.25 1.57
4 YARD - 2/WK 1.80 1.71 3.42 3.30 4.00 2.55 2.75 1.57
6 YARD- 2/WK 1.50 1.60 3.09 2.90 4.00 2.51 2.50 1.57
8 YARD - 2/WK 1.50 1.54 2.92 2.75 4.00 2.47 2.35 1
.7
2 YARD- 3/WK 2.50 1.92 4.17 4.00 4.00 2.53 3.25 1.57
4 YARD - 3/WK 1.80 1.67 3.29 3.30 4.00 2.49 2.75 1.57
6 YARD - 3/WK 1.50 1.57 2.99 2.90 4.00 2.45 2.50 1.57
8 YARD - 3/WK 1.50 1.52 2.84 2.75 4.00 2.41 2.35 1.57
2 YARD - 4/WK 3.00 1.90 4.12 4.00 4.00 2.47 3.25 1.57
4 YARD - 4/WK 1.80 1.65 3.22 3.30 4.00 2.43 2.75 1.57
6 YARD - 4/WK 1.50 1.56 2.95 2.90 4.00 2.39 2.50 1.57
8 YARD - 4/WK 1.50 1.51 2.81 2.75 4.00 • 2.35 2.35 1.5k
2 YARD- 5/WK 3.00 1.89 4.03 4.00 4.00 2.41 3.25 1.57
4 YARD- 5/WK 1.80 1.64 3.21 3.30 4.00 2.37 2.75 1.57
6 YARD - 5/WK 1.50 1.55 2.92 2.90 4.00 2.33 2.50 1.57
8 YARD -r 5/WK 1.50 1.50 2.77 2.75 4.00 2.29 2.35 1.51
2 YARD - 6/WK 3.00 1.88 4.02 4.00 4.00 2.35 3.25 1.51
4 YARD - 6/WK 2.50 1.64 3.18 3.30 4.00 2.31 2.75 1.57
6 YARD - 6/WK 2.00 1.54 2.90 2.90 4.00 2.27 2.50 1.57
8 YARD - 6/WK 2.00 1.50 2.76 2.75 4.00 2.23 2.35 1.57
2 YARD - 7/WK 3.00 1.88 4.01 4.00 4.00 2.29 3.25 1.577
. 4 YARD - 7/WK 3.00 1.63 3.16 3.30 4.00 2.25 2.75 1.57
6 YARD - 7/WK 3.00 1.54 2.89 2.90 4.00 2.21 2.50 1.57
8 YARD- 7/WK 3.00 1.49 2.75 2.75 4.00 2.17 2.35 1.55
ATTACHMENT 4
INDUSTRIAL WASTE SERVICE,INC.
1099 MILLER DRIVE
ALTAMONTE SPRINGS,FL 32701
(407)831-1539 Seminole
(407)4256600 Orange
(407)892.2298 Osceola
July 30, 1993
City of Ocoee
150 North Lakeshore Drive
Ocoee, Florida 34761
Dear Honorable Mayor and Commissioners:
The purpose of this letter is to respond in detail to the recent
assertions that the rate that we receive for our services in the
City of Ocoee are exorbitant (to high froi a competitive view
point) .
The recent rate structure that has been established in the City
of Maitland appears to be the focal paint and a benchmark that
some have established for comparison o Ocoees current rate
structure.
To maintain continuity for easy understaiding, the Maitland rate
will also be used in this presentatioi as the benchmark to
display that the Ocoee rates are not exorbitant by comparison.
To properly evaluate and digest the d .fferent per cubic yard
rates in these cities, one must recognise that the cities are
different in nature. Ocoee is an oralige and Maitland is an
apple. So when you look at a surface ;ate of $3.98 per cubic
yard in Ocoee and $1.82 per cubic yard i Maitland, it is not a
real comparison. Incidentally, we use $1f82 for Maitland instead
of the $1.68 that has been previously represented by others. The
$1 . 82 is the actual average when the allowable extra charges for
opening gates and rolling out containers for dumping is accounted
for. The amount of this kind of actii/ity is far greater in
Maitland than Ocoee.
‘10
A Commercial,R sIdentlal anti Industrial Disposal Company
City of Ocoee (Page 2)
There are significant factors that separate the two cities into
different cost categories. The major ones for this analysis are:
1. An $ . 80 per cubic yard franchise fee paid to Ocoee vs
no such fee in Maitland.
2. A $ . 44 per cubic yard difference in the cost of
providing service to the two, cities. It is more
expensive to service Ocoee. This difference is
primarily related to the route density (the amount of
time between stops) , and the additional distance to
Ocoee versus Maitland which adds truck time. The
key to controlling cost in our business is to control
what we call travel time.
3. A $. 28 per cubic yard cost of billing the customers and
collections and bad debt expense.
4. A $.14 per cubic yard :additional container cost related
to a three year contract period versus a five year
period in Maitland.
Another factor to be considered in this, analysis is the recent
annual CPI increase applied to the Ocoee rate. Both contracts
have provisions for such increase and; typically our type of
company will bid a City contract with the anticipation of
acquiring an acceptable profit as the annual increases occur.
City of Ocoee (Page 3)
The following equation takes all, these factors into account with
appropriate values to factually display what would happen to the
Ocoee rate if both cities were identical in cost factors:
$ 3.98 current price per cubic yard
. 80 franchise fee deduction
. 44 route density and travel time deduction
. 17 recent annual increase deduction
. 28 billing cost deduction
. 14 container cost' amortization deduction
$ 2.15 actual comparable price per cubic yard for Ocoee
The $. 33 difference that remains is attributable to the fact that
Maitland lies in the center of our operational area. This
deletes the need for city specified trucks because the small
volume can be absorbed by numerous surrounding routes. Ocoees
outlying character creates a need for more specifically assigned
routing with less density.
Sincerely
Sti
Charles Wilson
General Manager
cc: Ellis Shapiro
Ray Brenner
Montye Beamer •
ATTACHMENT #5
INDUSTRIAL WASTE SERVICE,INC.
1099 MILLER DRIVE
ALTAMONTE SPRINGS,FL 32701
(407)831-1539 Seminole
(407)425-6600 Orange
(407)892-2298 Osceola
July 28, 1993
Mr. Ray Brenner
Director of Public Works
150 N. Lakeshore Drive
Ocoee, Florida 34761
Mr. Brenner:
In response to your request, I am submitting a report of all
customer complaints logged in by our Customer Service Department
from January 1993 thru June, 1993 . I am also sending you a sample
copy of our customer check form. This particular form is filled
out completely in triplicate every time a customer calls in. It is
then sent to the various departments - upon completion of the
assignment, the form is returned to the Customer Service Department
for filing. I do hope the following report will enable you to
better assess our service within the City of Ocoee.
In the months of January and February, we received no customer
complaints.
Month of March there were 20 complaints:
12 - missed pickups - 3 due to new accounts driver couldn't
find on first pickup day and 3 due to route day changes.
4 - requests for cleanup (illegal dumping by others) .
1 - keep gates closed
3 - 2nd request for container switch outs
Month of April there were 5:
3 - missed pickups
1 - gate not being closed
1 - 2nd request container switch out
t
ei
A Commercial, Residential and Industrial Disposal Company
ATTACHMENT #5 , page 2
Page 2
Month of May there were 5:
5 - missed pickups, 1 - was a new account, driver missed stop
Month of June there were 9 :
7 - missed pickups, 2 blocked by vehicles, 1 on temporary stop
due to non-payment
1 - call from City - can blocking alley
1 - not locking can
In summary for these 6 months, there were a total of 39 complaints
logged in. Please feel free to call me with any questions you may
have or any backup information you might need. IWS is proud and
pleased to serve the City of Ocoee in any way possible.
Sincerely,
C.)°-1
Jo Piercy
Customer Service
JP:ms
•. ATTACHMENT #5, page 3
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. ATTACHMENT #6
"CENTER OF GOOD LIVING- PRIDE OF WEST ORANGE" MAYOR•COMMISSIONER
' 4.
O` Ocoee LESTER DABBS,JR.
'"WCol ° CITY OF OCOEE COMMISSIONERS
.! a 150 N.LAKESI LORE DRIVE RUSTY JOHNSON
v0 OCOEE FLORIDA 34761 PAUL W.FOSTER
(407)656-2322 VERN COMBS
,,f SAM WOODSON
r
el,. Of G000 �`,` CITY MANAGER
ELLIS SHAPIRO
STAFF R E P 0 Ii T
TO: The Honorable Mayor and Board of City Commissioners
FROM: Ray Brenner , Public Works Director U
DATE: August 17 , 1990
RE: Selection of Exclusive Franchise .for the Collection of
Commercial , Industrial and Institutional Garbage Accounts
ISSUE: •
Should the Honorable Mayor and 'Board of City Commissioners select
one of the three companies to provide exclusive garbage pick-up
for all commercial , industrial and institutional accounts located
in the City of Ocoee?
I3ACKGRUUND/DISCUSS 1ON:
On Thursday, June 28 and July 1 , 1990 , an invitation to submit
competitive proposals for exclusive commercial , industrial and
institutional garbage collection was advertised. As part of the
advertisement , a mandatory pre-proposal conference with City
Attorney , Ronald M. Schirtzer , was scheduled and held, on July
10 , 1990 at 10: 00 at City Hall . The companies interested in com-
peting for the commercial garbage franchise rights were: Florida
Garbage Service , Industrial Waste Services , Waste Management of
Orlando , Kissirnlnee Recycling Corporation and Commercial Refuse , Inc.
Those companies interested in providing the City with garbage
collection services were to submit their proposals and were to be
received by the City no later than July 16 , 1990 , at 10: 00 a.m. and
were opened and bids read aloud at 11: 00 a .m. the same day . Present
• during the bid opening were representatives from Industrial Waste
Services , Florida Garbage Service and Waste Management of Orlando ,
who submitted sealed proposals. A fourth sealed bid" was submitted
by Commercial Refuse , Inc. with their letter stating , in part , that
they would retract any desire to bid on the City ' s commercial fran-
chise accounts at this time .
A comparison of monthly revenues and franchise fees was done by
staff and that report is attached for your review. As a summary of
this sheet , the anticipated franchise fees for the collection of all
commercial , industrial and institutional accounts within the City
indicated that IWS would generate approximately $4 ,882 monthly
($58 , 584 annually) , Waste Management of Orlando would provide $4 ,434
monthly ($53 ,208 annually) and Florida Garbage Service would generate
a monthly franchise fee of $4 ,036 ($48 ,432 annually) . Based on the
information provided by these three companies, it appears our current
rate structure to the commercial , industrial and institutional acc-
ounts will be reduced significantly .
attachment #6 , page 2
Page 2 .
Staff Report August 17, 1990
To assist in the overall evaluation of the bidders, staff visited
each of the three companies . Discussed were collections, service ,
billing , handling of complaints , containers , equipment , back-up
equipment , accounting methods and fleet maintenance . The following
is an overview, along with observations:.
Industrial. Waste Service has a service package which includes new
equipment with a complete inventory and maintenance program; bonded
and safety trained employees ; supervised routes to ensure consis-
tent good service; and modern record keeping for easy and accurate
auditing. They are currently contracted to twenty-two municipalities
and six counties throughout the state of Florida. Seventeen com-
mercial customers within the City are presently serviced by IWS .
Additionally, the recently enacted statewide solid waste act estab-
lished a goal of reducing the volume of solid waste by 30% by the
year 1994 . This includes residential , industrial , commercial and
. institutional accounts located within the City . IWS has a program
in place to meet that goal and documentation to support their efforts.
Attached to this report is a list of examples of their community in-
volvement within the communities it serves .
It appears Florida Garbage Service is competent to provide the
services and collections of our commercial , institutional and in-
dustrial accounts within the City. By comparison of their bid
competitors , they are not as large . This company currently services
one commercial customer within the City , however they do not indicate
any municipal experience . They do serve the Naval Training Station
and the Greater Orlando Aviation Authority . These facilities were
called for references and the response was favorable. They indicate
owning two recycling vehicles which are being used for their comm-
ercial recycling program. They further state future plans for their
own recycling center . No community service involvement was included
in their bid proposal . Currently their fleet maintenance is a temp-
orary facility . It was mentioned that a permanent site is under
construction which will include an office and fleet maintenance
facility on a two acre site in south Orlando .
Waste Management of Orlando is a large company which is adequate to
provide the collections for commercial , institutional and industrial
accounts. Currently they collect five commercial accounts within the
City. They , as well as the other bidders, meet the conditions and
terms of the R. F. P. It appears this company has a large fleet of
trucks adequate to serve the City ' s needs along with a fleet main-
tenance program. They , as are their competitors, are equipped to
accept and channel inquiries and complaints and act on them in a
professional and timely manner. Staff is satisfied with the efforts
this company has made toward recycling in meeting the state mandated
30% reduction . They are involved in the community by offering , at
cost , roll-off containers , port-a-lets and comfort trailers for
community events . Their accounting methods appear satisfactory and
staff would recommend them as a second choice.
RECOMMENDATION:
Based on the above information, staff respectfully recommends that
the Honorable Mayor and Board of City Commissioners select Industrial
Attachment #6 , page 3
Page 3.
Staff Report August 17 , 1990
Waste Services , Inc . as the company to begin collections of the
commercial accounts that are currently being collected in house
and begin collecting the remainder of the commercial , industrial
and institutional accounts within the City effective March 1 , 1991.
This recommendation is based on staffs ' observation that their
ability to collect , service , bill , handle inquiries and complaints,
and fleet maintenance is superior to the other two bidders.
RB: jh
attachments •