Your input into an important business decision that must be made next week
is requested. I'm interested in your view of how to best proceed for our
Our single family trash collection contract with Waste Pro expires on May
31st of this year. We require a decision on what to do starting June 1st.
Nothing about this decision threatens our ability to get trash service at
the current rate short-term beyond June 1st. That contingency has been
As you know we use Waste Pro as our private carter in the single family
area. You may not be aware, however the practice in our city is to allow
multifamily condo and rental to do their own trash contracts since that's a
very different service (container trash removal) than what we receive house
by house. Waste Pro won the city contract in 2012. Until then we used
Republic which was charging single family homes $18.34 per month for
service. Waste Pro submitted a bid in 2012 for $15.74. Until then, the
city manager had recommended renewals with Republic from their original
contract won numerous years before. in 2012, the manager recommended that
we go out to bid because the market study at that time suggested that the
city could get a lower rate. And indeed, he was right. Waste Pro's rate
was substantially lower and so we contracted with them.
The City Administration has over the years provided reliable advice in this
regard, helping the Commission decide when to go out to bid or renew
contracts, relative to the market risks and keeping rates as low as
possible. As a result, we sometimes renew existing contracts and sometimes
go back out to bid. When? When we feel the market conditions are most
As an example, North Miami recently went out to bid. The renewal rate they
were given was $4 more than they had been paying. They rejected a renewal
offer, and when the bids came in the lowest obtainable rate was $9 more than
they were paying. They had no choice but to enter into that contract --
meaning that rather than renew for $4 more they ended up going to bid and
paying $9 more than their then current rate. Broward cities including SW
Ranches recently signed new contracts at substantial increases in cost to
residents. The quotes for garbage removal generally have been going up
significantly, and finding drivers and personnel is becoming increasingly
Waste Pro is offering to renew with Pines at a single family rate of $18.77
(net of tax and franchise fee) which is $3.03 more than the single family
base rate we're paying now ($15.74) or 43 cents more than what we paid in
The City Manager is recommending this renewal to the City Commission fearing
greater exposure in cost to residents should we go out to bid. That is his
determination based on his market research to date. A comparable commercial
rate increase would also be charged to city businesses.
You may recall that there were service concerns some months ago with Waste
Pro. These mostly involved bulk service and those concerns were resolved
last October. That said, I have asked for and the carter has agreed to
liquidated damages in the event we had service problems in the future should
we renew this contract. I just felt that this is a protection the residents
deserved to have.
The current carter was extremely helpful during Hurricane Irma, going beyond
what their contract required. The company claims additional funds are
needed because this many years later, the cost structure is such that they
are no longer profitable without the increase.
Based on these facts, which were presented this past Wednesday at the City
Commission workshop on trash service, what would you recommend that we do?
Take the renewal or take the risk and go out to bid?
Thanks for your advice to me.
Angelo Castillo, Commissioner
City of Pembroke Pines
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