List of qualifications for franchises; term; nontransferability; rules and regulations; tests, inspections and audits

(a)

The city may franchise commercial solid waste haulers as defined herein to provide service to commercial establishments as set forth in this article. The franchises issued, however, shall not limit the right to renew local business tax receipts prior to the effective date of this amendment and, further, will not impair existing written contracts between a franchisee and that of a commercial establishment which are in full force and effect on the effective date hereof and said contract does not exceed the effective date of the franchise. Each applicant for the franchise shall respond to a request for qualifications issued by the procurement department. The request for qualifications shall include, as minimum qualifications to be considered in the granting of such franchise:

(1)

Certification that the applicant has satisfied all requirements of chapter 22 of the Code of the City of Miami.

(2)

Certification that the applicant has never defaulted on any governmental franchises, contracts, permits or bid awards.

(3)

Certification that no subsidiary affiliate, or parent corporation or business entity of the applicant already has, or has applied for, an existing franchise. Franchises will not be issued to a subsidiary, affiliate or parent company of an existing franchisee, or any franchisee.

(4)

Certification that the applicant (or, if renewal, the franchise) is not and will not be, throughout the term that it has a franchise, affiliated with an affiliated entity of any existing franchisee, or any applicant for a franchise under this article, as a parent, or subsidiary, or by virtue of an interlocking directorate or otherwise.

(b)

Term. Said franchise shall be valid for a period of five years from date of issuance with three one-year options to renew, and, at the expiration or earlier cancellation or revocation thereof, the city may choose to accept applications for a new franchise conditioned and limited as noticed above or, in the alternative, renew the permit issued for an additional three one-year option periods. The option to renew said franchise for the additional three-year period shall be at the sole discretion of the city. In deciding to issue a new franchise and/or accepting applications from applicants for a franchise, the city will consider the following factors:

(1)

The franchisee's full and faithful compliance with the terms of this chapter;

(2)

The franchisee's and/or applicants who best meet the qualifications established by this section for the issuance of the franchise; and

(3)

The current garbage, trash and waste disposal needs of the city, including, without limitation, population, demographic and geographic needs.

(c)

Transferability. The franchises granted pursuant to this section shall not be transferable by way of assignment, sale, pledge, or other conveyance. Upon change of ownership, including transference of a majority (51 percent or more) of stock and/or partnership shares, of any company to which a franchise has been issued, a new franchise will be granted by the city commission if the new owner satisfies the requirements of this article.

(d)

The franchise provided for by this article is to ensure and facilitate a minimum standard of municipal regulation of commercial waste collection within the city, to provide uniformity and quality of service from the franchises granted hereunder, and to assure that the citizens of Miami have safe, efficient, sanitary, permitted regulated and qualified solid waste, garbage and trash disposal contractors.

(e)

The city may, at reasonable times during the term hereof, inspect any franchisee's facilities and perform such test, as the city deems reasonably necessary, to determine whether the goods or services required to be provided by franchisee under its franchise conform to the terms thereof, if applicable. Each franchisee shall make available to the city reasonable facilities and render assistance to facilitate the performance of all tests and/or inspections by city representatives. All tests and inspections shall be subject to, and made in accordance with the provisions of this Code, as the same may be amended or supplemented from time to time. Each franchisee shall allow city auditors, during regular business hours and after reasonable notice, to audit, inspect and examine the franchisee's financial records (as they relate to city revenue) including all fiscal books and records, sales tax returns, bank statements, general ledger (vouching city revenue to the general ledger) contract(s)/agreement(s) between franchisee and customer(s) and any other financial information deemed necessary, in so far as such other financial information relates to city accounts, as well as the franchisee's entire customer base, in order to confirm the franchisee's compliance with its franchise agreement. Each franchisee shall pay a one and one-half percent penalty per month on any monies due and owing to the city, as a direct result of an audit, from whatever applicable revenue stream during the term of the franchise agreement. If a city audit reveals that a franchisee under-reported gross receipts, and the audit shows additional revenue due to the city in an amount per fiscal year of $20,000.00 or more, franchisee shall pay to the city the cost of conducting the audit. Upon audit notification, a franchisee shall deliver all financial and other books and records to the city at no cost to the city. Each franchisee shall allow city auditors to copy any financial related source documents when deemed necessary to substantiate an audit finding.

(Ord. No. 10440, § 7, 5-19-88; Code 1980, § 22-18.13; Ord. No. 12258, § 2, 7-25-02; Ord. No. 12599, § 2, 10-14-04; Ord. No. 12885, § 1, 2-8-07; Ord. No. 13194, § 2, 9-27-10; Ord. No. 13693, § 2, 7-13-17)

Editor's note— Ord. No. 12599, § 2, adopted October 14, 2004, changed the title of § 22-57 from "List of qualifications for franchises; term; nontransferability; rules and regulations" to "List of qualifications for franchises; term; nontransferability; rules and regulations; tests, inspections and audits."