WM's Franchise Fee Underpayments RevisitedCommissioners:
I reviewed WM's Power Point presentation for the 12/18/14 Meeting. On
page 29 of 51, WM bodaciously states, "WM's current an prior performance
is exceptional;". The italics is WM's emphasis-- not mine.
Below is my 1/3/2010 email culminating my 10 month ordeal uncovering WM
failing to timely and accurately remit Administrative and Franchise Fees
(FF) due the City. It happened 13 times during an 18 month period (July
2007 through December 2008) and totaled $52,989,12. It was Commissioner
Fetzer's sounding board for getting the Commission "Vote of No
Confidence" on Messrs. Harden and Safford unanimously passed at the
1/19/2010 meeting.
Note how then Finance Director Safford tried to politely blow me off
before I uncovered the final $10,841.51 unpaid for 15 months in Red
below. Look how sheepishly and unrepentantly WM's Butch Carter admits it
in his 12/31/09 email. WM omitted paying on 120 customers and the City
never caught it!
Here is the possible "FF Underpayment" issue facing the City NOW! Mr.
Redman's takeoffs for the City's Commercial service totals
$5,773,892.22. A 10% FF on that amount should total $577,389. But,
according to its Sanitation Fund 2015 Budget, FF revenue is only
$433,000 (based on $413,611 actual for 2013 and $433,000 for projected
2014). So, based on Mr. Redman's commercial takeoffs, WM could be
"shorting" the City again on FFs in excess of $100K annually!
I have cced Mr. Warner so that he can inform you what verification steps
if any the City does with WM's FF. If it is like 2009, all the City does
is deposit the check and nothing to check the accuracy/completeness of
WM's remittance like I spent countless hours doing to uncover the
$52,989.12 in 2009.
One way to get to the bottom of the "FF Mystery" is to engage a new
hauler!
I'll wait for the Committee's recommendation to you before I further
elaborate on and document "WM's exceptional prior performance".
________________________________
From: Kenneth MacNamee [mailto:kjmacnamee@yahoo.com]
Sent: Sunday, January 03, 2010 9:26 PM
To: Safford, Joseph; harden; Commissioner Fetzer
Cc: kevin Warner; shelly petrolia; chuck halberg; gordon wright; bob
Wiebelt
Subject: Re: WM Underpayments Report Card--Update
Messrs. Harden, Fetzer, and Safford:
In the 12/31/09 email below with neither an apology nor an explanation,
WM admits that they paid -$0- in C&D for Sept. 2008 and owes the City
$10,841.51 in Franchise Fees (from approximately 120 customers). So,
their "Underpayments Report Card" now stands at:
"During the 18 month service period of Jul. 2007 through Dec.
2008, WM under remitted to the City 13 times for a total of $52,989.12!"
Good thing I persisted with this investigation after Mr. Safford wanted
to prematurely close it out on his Dec. 9th email and I quote:
"We (the City) are comfortable that we have analyzed sufficient
detail to confirm that we are receiving the correct amount of franchise
fees and administrative fees from WM. We are recommending
closing this issue...I wish to thank you for your diligence in
questioning these franchise fee issues."
There is still a lot of work to do to get to the bottom of WM's
transgressions in its trash dealings with the City. There are numerous
other issues. In the meantime, the City should write WM stating its
performance has been shameful and deplorable. Furthermore, the City
should put WM on notice that it expects WM's full cooperation to
coordinate with the City in the development of timely, informative
reports, in detail and summary, to enable City personnel to ensure the
accuracy and completeness of commercial franchise fee revenues. Anything
less could result in this embarassing situation happening again.
Mr. Harden, I still await the meeting Commissioner Fetzer requested in
emails to you on 12/17 and again on 12/19.
________________________________
From: "Safford, Joseph" <Safford@mydelraybeach.com>
To: Kenneth MacNamee <kjmacnamee@yahoo.com>
Cc: "Harden, David" <Harden@mydelraybeach.com>; "Fetzer, Fred"
<fetzer@mydelraybeach.com>
Sent: Thu, December 31, 2009 12:33:09 PM
Subject: FW:
Ken,
Success. WM is going to be sending us $10,841.51 for the September,
2008 C&D accounts that they missed.
From: Carter, Harold [mailto:HCarter@wm.com]
Sent: Thursday, December 31, 2009 11:55 AM
To: Safford, Joseph
Subject: RE:
Yes, we did not pay the City the Franchise Fee for Temp Roll-off for the
month of September 2008.
The outstanding balance is $10,841.51
I have included the file for your information.
The check request will be processed and the payment should be made to
the City in January.
Thanks Joe,
Harold "Butch" Carter,
Government Affairs Manager
Waste Management Inc. of Florida
2700 N.W. 48th Street
Pompano Beach, FL 33073
561-322-5528 cell phone
hcarter@wm.com
From: Safford, Joseph [mailto:Safford@mydelraybeach.com]
Sent: Thursday, December 31, 2009 10:32 AM
To: Carter, Harold
Subject:
Butch,
Have you any kind of status report on the September, 2008 C&D containers
that were apparently missing from our franchise fees for that month?
________________________________
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