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HomeMy WebLinkAbout1993-02-22 - City Commission Special Meeting MinutesCity Council Special Meeting 2/22/93/KJ Page 1 CITY OF TAMARAC CITY COUNCIL SPECIAL MEETING MONDAY, FEBRUARY 22, 1993 CALL TO ORDER: Mayor Bender called this meeting to order on Monday, February 22, 1993 at 10:00 a.m. in the Conference Room #1 of City Hall. PRESENT: Mayor H. Larry Bender Vice Mayor Henry Schumann Councilman Norman Abramowitz Councilman Irving Katz Councilman Joseph Schreiber John P. Kelly, City Manager Mitchell S. Kraft, City Attorney Dina McDermott, Assistant City Manager Mary Blasi, Finance Director Karen Jackson, Secretary 1. PUBLIC PARTICIPATION - Any member of the public may speak to any issue which is on this meeting notice. Speakers will be limited to three minutes during this item. There will be a thirty (30) minute aggregate time limit for this item, and speakers are encouraged to sign up in advance with the City Clerk prior to their participation. Mayor Bender OPENED and CLOSED the Public Participation with NO RESPONSE. 2. DISCUSSION AND POSSI= AQTjQH regarding the single- family garbage proposal. The purpose is to finalize the bid proposal. FINAL &rjjQNw APPROVED conditions for the new Request for Proposals to include the following: 1. Prices for 20 and 30 gallon bags 2. Maximum weight for 20 gallon bags to be 30 pounds and for the 30 gallon bags to be 40 pounds 3. Terms of the contract to be 3-1/2 years with a 2 year option to renew and 5-1/2 years with a 2 year option to end on September 30 of the completion year 4. City Manager Kelly to research further regarding the cardboard collection 5. Provide that yard trash be bundled and paid for utilizing the bag system 6. Conversion rate will be a flat price of 1.5 cents for the 20 gallon bag and 2 cents for the 30 gallon bag City Manager to provide Request for Proposal to City Council at the Wednesday, February 24, 1993 Council meeting. Mr. Kelly said during the previous meeting, Council had directed him to compile information from all of the Council members as to what they would like to have in the new contract. He referred to the summary of the negotiations with Seacoast Sanitation. Mayor Bender recommended that Council review the articles in the contract that have been marked off which are concerns reflected by Council and referred to Article 1, Section 1.2. C/M Schreiber said there are indications by most of the Council members that there is an interest in utilizing two sizes of bags— City Council Special Meeting 2/22/93/KJ Page 2 20 gallon and 30 gallon. He requested that the prices for this be included in the bid. Mr. Kelly said most of the garbage haulers are present to answer any questions that may be addressed. C/M Katz said there are problems with not defining this as weight and size of bag. He said the weight may be relevant to the formula for the tipping fee. He said another item he has concerns with is how yard waste will be disposed of. He suggested that a 40 gallon bag be used exclusively for yard waste. Mayor Bender said the more clarification as to what is expected in the bid, will make it easier afterwards. Mayor Bender referred to the City of Lauderhill's garbage contract. C/M Abramowitz said the vendor ascertained through a survey the amount of garbage that Lauderhill generates and Mayor Bender said he would like to know how much Tamarac generates. C/M Abramowitz said Tamarac should be much less than Lauderhill, Sunrise or Plantation. Mr. Kelly said Tamarac has more single-family homes than those cities. Mayor Bender asked if Council is interested in utilizing one or two size bags. C/M Abramowitz said he agrees with two size bags if the vendor can do it. Dick Marant, representative for Seacoast Sanitation, said on a two bag scenario, it may cost the consumer more, depending on how they select the bags for their garbage. Mayor Bender said the people buying the bags must make their own decisions for the usage. He said Council is responsible to provide the residents of the City with options. Mr. Kelly said a marketing consideration is that the City is asking the supermarkets to provide space to accommodate these items which is an imposition to begin with because it is a pass - through to the vendor, but with each additional offering there is, that is additional space the supermarkets need to provide. C/M Schreiber said the purpose for a smaller size bag is to reduce the cost. Mr. Kelly expressed his concerns regarding the retail space needed to provide the quantity necessary. He said the City has not met with any of the stores to confirm their services. Mayor Bender said this is a test and until there is some experience, the City will not know how many bags need to be stocked in the stores. He said the stores will be able to make the adjustments in the future. Sal Coniglio, representative for County Waste, suggested that Council consider that the price per bag may increase based on the number of sizes available due to the bulk quantities purchased. C/M Katz said the weight and size of the bag should be described in the contract. C/M Katz MOVED to APPROVE that a 20 and 30 gallon size bag be utilized. VOTE: ALL VOTED AYE C/M Katz said there are people who cannot lift the bags if they City Council Special Meeting 2/22/93/KJ Page 3 are too heavy and if the vendor feels that there is too much weight in them, they will not pick it up. Harold Carter, representative for All Service Refuse, suggested that a 30-gallon bag have a maximum weight of 40 pounds and a 20- gallon bag have a maximum weight of 30 pounds. He said by establishing a maximum weight, the driver will be able to lift the bags for disposal. Discussion was held regarding the weight of the bags. C/M Katz MOVED to APPROVE placing a maximum weight of 40 pounds for a 30-gallon bag and 30 pounds for a 20-gallon bag, SECONDED by C/M Schreiber. VOTE: ALL VOTED AYE Mr. Kelly referred to Page 6, Section 4.1, regarding the term of the contract. Mayor Bender said he had suggested that there be a 3-year contract with a 2-year option. v/M Schumann suggested that the terms be 3 years with a one-year option. C/M Schreiber said he suggested that the City go with a two-year contract based on this being a new system which may not work. C/M Abramowitz said he disagrees with the 3-year, one-year option because if the service is not asked if they are going to be good, tied it will not be good at all. He into the length of the term of the contract. He said that it is in the best interest of the City to go with a 3-year contract with a 2-year extension at the option of the City. He said he would like to have the conversion rate to be included in the contract. C/M Schreiber MOVED to APPROVE a 3-year contract with a 2-year option, SECONDED by C/M Abramowitz. Mr. Coniglio said the idea is to keep the cost down to the residents. He explained the costs to operate the service. Mayor Bender said other cities are utilizing the 3-year with a 2- year option. Discussion was held regarding the contract length. C/M Katz suggested that both 5-year and 3-year contract prices be submitted in the new Request for Proposal and Council can make a decision at that time. C/M Schreiber said if this is done, it opens the door for the vendors to force the City into a 5-year agreement by bidding differently. Mr. Marant asked if Council is discussing another Request for Proposal or another bid. Mr. Kraft said this refers to a new Request for Proposal with a sealed bid. C/M Abramowitz asked what is the most legal and expeditious way to handle this. Mr. Carter asked if the City is requiring new equipment or will the vendors be permitted to utilize used equipment and Mr. Kelly said used equipment is fine. Mayor Bender said the equipment must be in good condition. C/M Katz said Section 12.6 refers to the equipment. City Council Special Meeting 2/22/93/KJ Page 4 Tony Spadaccia, representative for Industrial Waste Services, asked what the difference is between a Request for Proposal and a sealed bid. He said sealed bids are specific. Mr. Kelly said the purpose of this meeting is to eliminate negotiations. Mayor Bender said the purpose of this meeting is to make this as complete as possible and possibly eliminate negotiations. Mr. Kraft said this is an attempt to eliminate as much of the negotiations as possible for a Request for Proposal to narrow down the information. Mr. Spadaccia suggested Council consider a 4-year contract with 2, 2-year options. Mary Blasi, Finance Director, said the price depends on whether or not the vendors have to purchase new trucks. Mayor Bender said there is a Motion on the floor, which has been Seconded for a 3-year contract with a 2--year option. TAPE 2 C/M Katz said he cannot see eight or ten vendors getting together to stack their bids. C/M Abramowitz asked if the maker of the Motion would amend the Motion for options and C/M Schreiber said he would not withdraw or amend the Motion. C/M Abramowitz WITHDREW his Second to the Motion. Mayor Bender passed the gavel to V/M Schumann and SECONDED the Motion. Mr. Kelly said the tentative start date of this should be April 1, 1993 and the City needs to plan the upcoming budget effective October 1 and recommended against running the contract from April to April. He suggested this be dated according to the budget year. C/M Schreiber AMENDED the Motion to have an expiration date of September 30 of the third year. VOTE: V/M Schumann - NAY C/M Schreiber - AYE C/M Abramowitz - NAY C/M Katz - NAY Mayor Bender - AYE Motion was defeated by a 3 to 2 vote. C/M Abramowitz MOVED to APPROVE that there be an option for the City to choose from consisting of a 3-1/2 year contract with a 2 year option and a 5-1/2 year contract with a 2 year option, ending on September 30 of that year, SECONDED by C/M Katz. VOTE: C/M Katz - AYE C/M Schreiber - AYE V/M Schumann - NAY C/M Abramowitz - AYE Mayor Bender - AYE C/M Katz referred to Section 5.2 (c)(4) regarding cardboard. He asked if this would necessitate a bag tied to it or will it be done pro Bono gratis. I I 1 Mr. Kelly said the cardboard is expected to be in the recycling program, but at present it is not. Discussion was held regarding the disposal of cardboard. City Council Special Meeting 2/22/93/KJ Page 5 C/M Katz asked what the intent was for cardboard in the initial Request for Proposal. Mr. Kelly said the intent was that it would be picked up without a bag being tied to it, without a cost to the resident. C/M Abramowitz MOVED that cardboard collection, not to exceed 40 pounds, be broken down and tied, be part of the agreement without having a bag tied to it. Mr. Coniglio asked if cardboard is going to be included in recycling. He gave examples of cardboard disposal and the probabilities of it getting wet, causing it to weigh more. C/M Katz asked if there would be a problem with placing the cardboard in the bags and Mr. Coniglio said, no. C/M Abramowitz said the cardboard would need to be cut up to fit in the bags. Further discussion was held regarding cardboard disposal. Mr. Carter suggested that Council make a decision as to whether the cardboard will be a recycling commodity or a garbage commodity and that it remain there. C/M Abramowitz said in the City's recycling agreement, it is illegal for anyone to pick up any item which has been designated recyclable other than the contracted vendor. C/M Katz suggested that this be defined until such time as the recycling removes it and it becomes a part of the recycling agreement. Mr. Spadaccia said it is easy to say that there is no charge, but there has to be a charge somewhere. He said the vendor is picking up weight and the vendor has to pay by weight. He said there are weather conditions which would cause deterioration of the cardboard as well as a change in the weight. He said he understood that the City would have a drop-off center available to the residents which could possibly provide revenue to the City from the sale of the cardboard. C/M Katz referred to Section 5.5 regarding handicapped service. Mr. Kelly said the American Disabilities Act will require the services for the handicapped. Discussion was held regarding this. C/M Schreiber referred to Section 5.4 which states that all persons receiving residential service pursuant to this agreement shall place approved bags and other items curbside and shall be secured from disturbance by animals. C/M Abramowitz said he cannot see someone taking a can to the curb and then having a vendor take the top off and dig for the bags because the rates would increase for this service. Mr. Carter said All Service Refuse had made a proposal to take the tied bags out of the cans. Mayor Bender said many of the residents in his neighborhood have cans with wheels on them. Dennis Urbanski, representative of Waste Management, said there are those people who will be putting their bags in the cans and at the last minute, throw loose garbage on top, causing a mess on the ground when the bags are removed. Mr. Carter said the record indicates that on the previous Request for Proposal this service was included. City Council Special Meeting 2/22/93/KJ Page 6 Mayor Bender said the Consensus of Opinion was to leave Section 5.4 as is. He referred to Section 5.9 pertaining to Yard Trash. C/M Abramowitz said there is a difference between the yard trash and cardboard issue. He said he would not have any objection in taking 40 pounds at four foot lengths and tie a bag around them. Mr. Kelly said he was under the impression that Council was looking to have this service at no charge, but his intent was to have the vendors compensated for this service. C/M Schreiber said the residents are not paying for this at present, so why have them pay in the future. C/M Abramowitz said the residents are currently paying $14.91 for their current service. Mr. Coniglio recommended that Council take into consideration the cost of the truck and transportation. Discussion was held regarding the rates. TAPE 3 The Consensus of Opinion was to have the residents pay for yard trash pick up with a bag tied around the bundles. Mayor Bender referred to Section 8.1 regarding rates. C/M Abramowitz MOVED to APPROVE that the City Council direct the City Attorney that the conversion rate is not to exceed $.02 per every dollar on a 30 gallon bag and $.015 per every dollar on 20 gallon bags, SECONDED by C/M Katz. Mr. Urbanski asked if this is inclusive of the franchise fees or not and Ms. Blasi said it should be inclusive based on the number of bags calculated per family. Discussion was held regarding the calculations of the conversion rate. Mr. Urbanski asked if the hauler should be liable to pay out of his decreased tipping fee cost to the City a franchise fee because he is not getting that benefit from the incinerator. He said if the conversion rate is exclusive of the franchise fee, then whatever the decrease is, it would be the increase plus what the City wants on the franchise fee. C/M Abramowitz said no one knows what the tipping fee will be in the future, and he is not looking to penalize the vendor but to get the best deal for the City. He said there is less garbage generated due to the recycling effort. Further discussion was held regarding the conversion rate. Mr. Carter said this means maximum numbers and maximum pass - through. He suggested that the appropriate formula on a 30 gallon bag to be 40 pounds divided by 2,000 pounds and the result of that be divided by .85 equaling the franchise fee. He suggested the same for the 20 gallon with 30 pounds divided by 2,000 pounds divided by .85, which would be the maximum pass-throughs that the City would allow. He said if the hauler puts a lower figure there, the City would benefit. C/M Abramowitz suggested a compromise. He said the issue is whether or not the City will get more or less money. He suggested that a cap be placed on this. Mayor Bender asked Ms. Blasi for her recommendation and Ms. Blasi recommended that the conversion rate remain at $.02 for the 30 gallon bag inclusive of the franchise fee. Mr. Urbanski said the haulers will factor this into their rates. City Council Special Meeting 2/22/93/KJ Page 7 Ms. Blasi said if the haulers are going to go below what the cap is and have a higher rate per bag, the City would have to figure out what the tipping fee will be. Mr. Carter said the theory of user fee bag system promoting recycling ends up promoting the weight of the bag increasing because as a single-family homeowner, or whoever is utilizing a user fee system, becomes more educated and more aware of how to cut their cost, they increase the weight of their bags. He said he recommended 40 pounds because that has been the standard through the industry. Mr. Carter suggested that Council tell the vendors in the Request for Proposal that the 30 gallon bag is going to increase by the amount of money per dollar and the 20 gallon bag will increase by the amount of money per dollar, which would eliminate the whole process. He said if Council wants to leave a blank for the hauler to enter their figure, then a maximum number needs to be addressed by Council. C/M Abramowitz suggested that the blank be eliminated from the item and all agreed. Mayor Bender referred to Section 9.1 on Page 12. Mr. Kelly said in this section lines need to be added to include a 20 gallon bag and a 30 gallon bag rate for the 3-1/2 year term with the 2 year option and the 5-1/2 year term with the 2 year option. C/M Katz referred to Section 9.1 (b) and asked if Council wants the side door service to continue at a rate of $1.50 or for it to be increased to $2.00. C/M Abramowitz said this has to be a part of the Request for Proposal and suggested that it should not exceed what is currently in the contract. Mr. Marant asked if this is limited to the existing contracts. Ms. McDermott said when the City was negotiating with Seacoast Sanitation, they were negotiating only with existing residents. She said this is an issue that Council needs to address. She said at present the City's existing contract is if a new neighborhood wants to add the service, it is available to them, but Council needs to make this decision. C/M Abramowitz suggested that this be available to only those who currently have this service. Mr. Kelly referred to Section 8.5 on Page 12 regarding the Annual Tonnage Report. Mayor Bender said he would like during the first year to receive six month reports and then an annual report during the balance of the contract. He said this would include the number of bags and the tonnage. Discussion was held regarding the procedure for calculating the annual report. Mr. Carter said in the Lauderhill contract, only the yellow bags are counted, which equals approximately 200 per day. He said if every bag is to be counted, it would take forever to run the route. He asked if Council is requesting a count for the entire year or for a week. Ms. McDermott said it is preferable for the count to be for a month. C/M Abramowitz requested that the trucks pick up twice a year for the first year in Tamarac only to get an accurate tonnage and then once a year after that. City Council Special Meeting 2/22/93/KJ Page 8 C/M Katz referred to the maximum 4% Consumer Price Index and asked where it is addressed in the contract. Ms. McDermott said it is in Articles 3.4 and 3.5. C/M Abramowitz asked if there are any other contractual obligations that will be required that may be a benefit or a detriment to the City. He said there is a possibility that there may be some responsibility if the City goes with another vendor other than Southern Sanitation. Mr. Kelly said this refers to multi -family garbage pickup. C/M Katz requested clarification on Section 17.18, Page 22. TAPE 4 Mr. Kraft said Section 17.18 was taken from the multi -family agreement, which was left from the shell document, does not belong in this document and will be deleted. Bill Laystrom, attorney for Southern Sanitation, said one of the things Council can do is get the multi -family contract on a Wednesday and would urge them to include in the cost of a single- family what, if any, expense they would incur under the recycling penalty provision previously discussed. He said this is a single- family cost. He suggested that the bid include payment of this expense or include an indemnity. C/M Katz said the City should not have the responsibility of trying to collect it or having to pay for it. He said there is a possibility that no one will have to pay the $.95. He said Council should be looking for an indemnification that the City is not going to be the one responsible to pay the $.95. Discussion was held regarding this. C/M Abramowitz said he has no problem with the successful bidder on the multi -family agreement, but there would be no way that he would not vote to fight this $.95 issue. Mr. Laystrom said the single-family curbside recycling agreement is where the $.95 came from and if there is a burden, it is the single-family residents that should bear that risk and should show up in the form of the bids, but is not something that the City will actually pay for. C/M Schreiber asked if the $.95 penalty only applies to single- family residents and not to the zest of the City. Mr. Kraft said it grew out of the agreement regarding single- family recycling agreement. C/M Schreiber asked who would pay it if the City was stuck and the Contractor went to court and prevailed. He asked if it would come out of the General Fund where everyone contributes or only put to the single-family residents. Mr. Kraft said it would depend on the outcome of the court case, but there is a possibility for it to be paid from the General Fund. Discussion was held regarding the multi -family agreement. Mayor Bender requested that a Table of Contents be prepared for the garbage agreement to make it easier to refer to various items. He requested that Council be able to review the final draft. Mr. Coniglio asked if all companies are able to bid and Mayor Bender said, yes. Mr. Coniglio asked if the vendors are going to receive their Letters of Credit back from the previous bids and Mr. Kraft said 1 1 1 City Council Special Meeting 2/22/93/KJ Page 9 they should be returned and then reused with the new bids. Mr. Kelly said he would have this prepared for Council for the Wednesday, February 24, 1993 Regular meeting. with no further business, Mayor Bender ADJOURNED this meeting at 12:30 p.m. i CAROL A. EVANS CITY CLERK MY OF TANAAA(; APPROVE© AT MEETING OF, 3' ,004 VXOR