A new company's garbage trucks will soon be rolling down South Beach streets for a lower price. However, with a potential lawsuit looming, did the City really save? Photo by Michael Menchero

Best and Final?
City Approves Contract for Trash Collection — But May Face a Lawsuit

By Eleanor Mcculloch

Choosing the company that will pick up trash from residential neighborhoods in Miami Beach has become so contentious an issue that during the City Commission’s consideration of a contract on Wednesday, June 9, a court reporter was brought in to accurately record the proceedings for use in any potential lawsuits.

The award for trash services has been beset by drama since the current contract with Waste Management expired, the company expressed no desire to continue working with the city, and administrators found themselves looking for a new hauler.

“We had completed a procurement process which then extended into a ‘best and final’ on price discussion with both Choice [Environmental Services] and Waste Pro. Last month the commission rejected the contract with Waste Pro and directed [me] to negotiate and bring you back a contract with Choice that was at or better than the contract you saw last month,” City Manager Jorge Gonzalez explained.

Eventually the commission was presented with a contract with Choice at the rate of $23.99 per month per unit, which amounts to a $121,000 per year savings over the city’s current provider.

Representatives for Waste Pro cried foul, however, after the City embarked on what many officials admit was a sloppy procurement process for the 5-year contract with three year-long renewal options.

Addressing the commission on Wednesday, Waste Pro attorney Sylvester Lucas, quoted the first sentence of the city’s Request for Proposal, which reads that the purpose of the process is to secure a contract by means of “sealed proposals.”

“You didn’t do that,” he argued. “Instead, you accepted a price that matched my client’s price, sent to you by an e-mail in the middle of the night prior to your May 12 meeting. We played by the rules.”

Gonzalez would later describe the process of negotiating further after the traditional bid process had closed as “not customary” but also as not unprecedented.

In light of all the controversy over the process, Commissioner Deede Weithorn moved to throw out the contract and start the whole process over.

“I can’t in good faith do this when we had a process that’s unlike any process that I have seen since I’ve been here,” Weithorn said.

Commissioner Jerry Libbin agreed.

“My gut tells me that anything we do today other than rejecting [the contract], only puts us into litigation with somebody,” Libbin said. “In the best interest of the residents of Miami Beach we lose nothing other than time by rejecting and starting over.”

Commissioner Jonah Wolfson however, was not in support of starting the process over, citing the fact that the commission instructed staff to renegotiate, which did result in savings.

“This item will just going to keep going on and on and on,” Wolfson said, calling the type of indecision and potential staff time wasted “disappointing and embarrassing.”

Commissioner Ed Tobin added that although he agreed the process was flawed, Choice was the original lowest bidder, and “the taxpayers reap the savings,” Tobin said. “They’re both good companies.”

While some speculated that another months-long process could also end up costing taxpayers more money due to the fact that the city is operating on a month-to-month basis with current provider Waste Management, however “I don’t want anyone to think that because were saving the taxpayers a dollar or two a month that this is a good financial decision,” Weithorn countered. “Because if we do end up… having legal costs they will far outstrip what we potentially save.”

Several other issues were again raised, including elements of the contract, how ‘green’ and how local the companies are.

The Mayor of the Town of Miami Lakes Michael Pizzi spoke in his capacity as Choice’s general council.
“Choice wants you do what’s right for the taxpayers of Miami Beach … You are awarding the contract to the company that followed the RFP process and was ranked No.1,” Pizzi said.

The motion to start the process over failed. After some clarification and amendments to the green initiatives contained in the contract, the commission passed the item 4-3.

“We made a decision, let’s stick to it,” Commissioner Jorge Exposito said.

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