Re WM's Franchise Fee Underpayments Revisited-- It gets WORSE! (3)Dear People of Delray Beach;
Holy crap! Are you folks building the next iPhone out of recycled
festivus poles? Is that why there�s such secrecy?
Question: Does anyone understand the meaning of the phrase �public
service�? Public being the operative word. With the crap pulled over
the citizens of Delray Beach by this company, you�d think someone would
be operating without their head lodged up another�s ass.
The following is a request for public information.
1. I�d like a copy of the �confidential and propitiatory [sic]� Waste
Management attachment referenced by Commissioner Petrolia.
2. For the last year, I�d like copies of all documents provided to/from
Waste Management that are marked confidential, proprietary,
propitiatory, or any such nonsense.
Kindly acknowledge receipt of this email.
On Friday, December 26, 2014 at 4:12 PM, Petrolia, Shelly wrote:
Good Afternoon Mr. Stewart,
I was hoping this issue would not be dragged under the Big Top
of a Three Ringed Circus. It is why I asked for an explanation to
what I felt was a non-responsive reply on Dec. 18th. I have since
received a confusing email with an attached list from Waste Management
marked "confidential & propitiatory". Along with the original question,
I await an answer on how the information provided by WM can be
considered confidential.
The initial question posed by Mr. MacNamee has merit and
deserves to be answered. The additional concerns he raises below need to
be addressed as well. Are the taxpayers receiving the full franchise
fee per contract agreement or are they are being shorted? This should
not be difficult to determine and clear up. Please make this a priority
upon your return from the long weekend. And please make sure all
responses are in writing.
In the meantime, I look forward a the day when this city is 100%
openly transparent and responsive to citizen requests and concerns.
Anything less is an open invitation for the circus to come invade our
town.
Shelly Petrolia
Vice Mayor
City of Delray Beach
100 N.W. 1 <x-apple-data-detectors://0> st
<x-apple-data-detectors://0> Avenue <x-apple-data-detectors://0>
Delray Beach, FL 33444 <x-apple-data-detectors://0>
Petrolia@mydelraybeach.com <mailto:Petrolia@mydelraybeach.com>
Phone: (561) 243-7010 <tel:(561)%20243-7010>
Note to Mayor & Commissioners. This message is for your
information only. To comply with the Sunshine Law, please do not reply
to this message.
PUBLIC RECORDS NOTE: Florida has a very broad public records
law. Most written communications to or from local officials, employees,
or the general public regarding city business are public records
available to the public and media upon request. Your e-mail
communications may therefore be subject to public disclosure.
PLEASE NOTE: Pursuant to Florida�s Government in the Sunshine
Act (a.k.a. �Sunshine Law�), e-mails containing city business should be
directed to either: all City Commissioners or only 1 City Commissioner
at a time and should not include prior responses from the other
Commissioners in order to avoid the perception that a third party is
acting as a liaison between Commissioners.
On Dec 26, 2014, at 9:42 AM, "Kenneth MacNamee"
<kjmacnamee@yahoo.com> wrote:
Commissioners (and Mr. Redman):
Whenever I ask the City a thoughtful, analyzed question
and receive a defensive, whiny, non-analytical response like in Mr.
Stewart's 12/18/14 email below highlighted in Red, I'm usually on to an
important issue. So, I dig deeper and get more analytical.
I went over the emails below with Mr. Archambo at the
SWA. He confirmed that my question of why the City isn't getting $577K
in Franchise Fee (FF) instead of only $433K has merit.
In fact, the apparent $144K (577-433) FF shortfall could
be even WORSE. The $577K anticipated FF revenue is calculated based on
Mr. Redman's takeoffs on page 16 of his 12/4/14 Bid Evaluation Report.
The FF revenue extrapolation is based solely on commercial collection
and disposal charges. However, FF revenue also includes 10% of monthly
"container maintenance charges". These are $19.40, $22.21, $25.53, and
$27.09 for two, four, six, and eight cubic yard containers,
respectively.
So, if one conservatively estimates the average monthly
container maintenance charge is $22, then the additional "missing(?)" FF
would be calculated at $22 X 1,000 est. containers X 12 mos. X 10%=
$26,400. This would take expected FF revenue up to $603K (577+26) and
the unexplained annual shortfall up to $177K (603-433).
Let's go back to page 16 of Mr. Redman's Report. The
primary takeoff quantity is the top number in the 3rd column, "54,612"
cubic yards of containers serviced monthly. For an amount that specific,
one would think there have to be detailed customer by customer back up
and that Mr. Redman obtained it from WM.
Let's further analyze 54,612 to see if it is a make
sense. I heard there were 1,042 containers being serviced (please adjust
that number if it is wrong) so that means there is on average 12 C.Y.
per week serviced per commercial container customer ( 54,612 / 1,042
customers / 4.33 weeks per month). This would mean the weighted average
customer has a four yard container picked up 3 times per week. It sounds
reasonable to me since the smallest container customer is two yards,
once a week. The largest is eight yards serviced 7 days a week (56 total
yards).
Here is another analysis to demonstrate how "short"
$433K in actual and budgeted FF revenue appears to be. From $433K,
subtract the $26K for the container maintenance portion of FF revenue,
leaving $407K for collection and disposal based FF Revenue. That would
reduce the 54,612 C.Y. takeoff to approximately 44,000 C.Y.
I can't fathom that Mr. Redman (and WM) would be over
10,000 C.Ys (19.4%) off! It would be irresponsible/unprofessional.
Furthermore, it would mean the average customer only has 9.8 yards of
service weekly. That doesn't make sense either.
Mr. Redman's silence on this important FF shortfall
question is deafening. I can understand his apparent shortcomings in
drafting an RFP so that the City had to engage Atty. Dee but I would
think takeoffs would be his strength. Apparently, the acquiring and
analyzing critical commercial bid component takeoffs is not within City
staff's purview because they apparently haven't provided you with any
detailed statistical explanation justifying the $177K shortfall
question. Nor did staff catch and correct the $9.38 (should be $9.98)
recurring error in WM's bid compliation in Mr. Redman's Report.
Commissioners, there has to be a verifiable explanation.
Right now I am haunted with the WM litigation Settlement Agreement you
approved. Why was the contentious, litigious WM so cooperative to sign
off on no appeal and paying the City's $135K in legal expenses? I was
told WM wanted the City's goodwill for the current bid process. But, in
the Settlement Agreement, I recall WM getting closure for no other
retroactive claims. Maybe WM knew about this FF "shortfall" exposure and
feared a new hauler would expose how under remitted FF have been!
Remember, WM has a proven record of under remitting FF
to the City. It totaled $52,989 in 2007 and 2008 and was so egregious
that it resulted in a unanimous Commission "Vote of No Confidence" for
Messrs. Harden and Safford on 1/19/2010. The SWA also caught WM shorting
the County $715K on tipping in 2012. See the attached SS article below
"WM Caught Cheating..."
Finally, one should expect and understand staff's "lack
of urgency" to investigate the unexplained $177K FF shortfall. 4 staff
members just recommended WM to remain as the City's hauler which will
cost Delray trash customers $1,171,473 more annually ($8.7M over the 7
year life of the contract) above the lowest bid. Also, I detailed on a
10/15/14 email how Mr. Stewart's flawed and lacking 2015 Sanitation
Budget review left $934K "on the table". Considering those two matters,
I guess a $177K annual shortfall does not seem that pressing or
significant after all!
----- Forwarded Message -----
From: "Petrolia, Shelly" <petrolia@mydelraybeach.com>
To: "Stewart, Terrance" <stewart@mydelraybeach.com>
Cc: "Warner, Jack" <warner@mydelraybeach.com>;
"ddbcooper@aol.com" <ddbcooper@aol.com>; Kenneth MacNamee
<kjmacnamee@yahoo.com>
Sent: Friday, December 19, 2014 3:25 PM
Subject: Fwd: WM's Franchise Fee Underpayments Revisited
Good Afternoon Mr. Stewart,
Considering Mr. MacNamee's email was reviewed and
responded to within several hours of receipt, I am disappointed my
question has gone unanswered since late yesterday. I merely requested an
explanation of the failure in Mr. MacNamee's calculations, something
already reviewed by you and Mr. Warner. This should have received a
quick response and not required a second inquiry on my part.
Please send me an explanation as to why Mr. MacNamee's
calculations fail. I expect to hear something today since the email in
question was reviewed yesterday.
Respectfully,
Shelly Petrolia
Vice Mayor
City of Delray Beach
100 N.W. 1st Avenue
Delray Beach, FL 33444
Petrolia@mydelraybeach.com
<mailto:Petrolia@mydelraybeach.com>
Phone: (561) 243-7010
Note to Mayor & Commissioners. This message is for your
information only. To comply with the Sunshine Law, please do not reply
to this message.
PUBLIC RECORDS NOTE: Florida has a very broad public
records law. Most written communications to or from local officials,
employees, or the general public regarding city business are public
records available to the public and media upon request. Your e-mail
communications may therefore be subject to public disclosure.
PLEASE NOTE: Pursuant to Florida�s Government in the
Sunshine Act (a.k.a. �Sunshine Law�), e-mails containing city business
should be directed to either: all City Commissioners or only 1 City
Commissioner at a time and should not include prior responses from the
other Commissioners in order to avoid the perception that a third party
is acting as a liaison between Commissioners.
Begin forwarded message:
From: "Petrolia, Shelly"
<petrolia@mydelraybeach.com>
Date: December 18, 2014 at 6:04:27 PM EST
To: "Stewart, Terrance"
<stewart@mydelraybeach.com>
Cc: "Commissioners, Mayor"
<Commissioners_Mayor@ci.delray-beach.fl.us>, "Warner, Jack"
<warner@mydelraybeach.com>, "ddbcooper@aol.com" <ddbcooper@aol.com>,
Kenneth MacNamee <kjmacnamee@yahoo.com>
Subject: Re: WM's Franchise Fee Underpayments
Revisited
Thank you for your response however there were
numbers calculated in Mr. MacNamee's assertions. Can you please tell me
where Mr. MacNamee's numbers fail?
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
Shelly Petrolia
Vice Mayor
City of Delray Beach
100 N.W. 1st Avenue
Delray Beach, FL 33444
Petrolia@mydelraybeach.com
<mailto:Petrolia@mydelraybeach.com>
Phone: (561) 243-7010
Note to Mayor & Commissioners. This message is
for your information only. To comply with the Sunshine Law, please do
not reply to this message.
PUBLIC RECORDS NOTE: Florida has a very broad
public records law. Most written communications to or from local
officials, employees, or the general public regarding city business are
public records available to the public and media upon request. Your
e-mail communications may therefore be subject to public disclosure.
PLEASE NOTE: Pursuant to Florida�s Government in
the Sunshine Act (a.k.a. �Sunshine Law�), e-mails containing city
business should be directed to either: all City Commissioners or only 1
City Commissioner at a time and should not include prior responses from
the other Commissioners in order to avoid the perception that a third
party is acting as a liaison between Commissioners.
On Dec 18, 2014, at 5:29 PM, "Stewart, Terrance"
<stewart@mydelraybeach.com> wrote:
Mayor and Commissioners,
Below, you will find a response from City CFO Jack
Warner in response the latest set of assertions from Ken MacNamee. As
you will note, Mr. Warner defines those assertions as having no support.
As soon as I receive the information regarding our controls processes, I
will forward that to your attention.
Best regards,
Terry Stewart, Interim City Manager
(561) 243-7010
From: Warner, Jack
Sent: Thursday, December 18, 2014 12:06 PM
To: Stewart, Terrance
Cc: Butler, Lula; Berg, Al
Subject: RE: WM's Franchise Fee Underpayments Revisited
Manager �
Unlike previous analyses conducted by Mr. MacNamee, this
is an assertion with no support and therefore there is nothing to �look
into� other than to describe our existing controls procedures, which I
will request that CI commence.
Lula and Al � Pls see notes below and send the Manager a
response with copy to me.
Thanks
Jack Warner, Chief Financial Officer
City of Delray Beach
100 NW First Avenue
Delray Beach, FL 33444
(561) 243 � 7117
warner@mydelraybeach.com
From: Stewart, Terrance
Sent: Thursday, December 18, 2014 8:50 AM
To: Warner, Jack
Subject: FW: WM's Franchise Fee Underpayments Revisited
FYI
Best regards,
Terry Stewart, Interim City Manager
(561) 243-7010
avoid the perception that a third party is acting as a
liaison between Commissioners.
Begin forwarded message:
From: Kenneth MacNamee <kjmacnamee@yahoo.com>
Date: December 18, 2014 at 7:53:53 AM EST
To: Mayor Commissioners
<commissioners_mayor@ci.delray-beach.fl.us>
Cc: Jack Warner <warner@mydelraybeach.com>,
Redmen <bredman@rcgusaonline.com>
Subject: WM's Franchise Fee Underpayments
Revisited
Reply-To: Kenneth MacNamee
<kjmacnamee@yahoo.com>
Commissioners:
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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<ARTICLE WM CAUGHT CHEATING SWA BY DIVERTING TRASH TO
BROWARD AND MUST PAY $719,340.27 APRIL 2012.doc>
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