Islamorada council members were at odds over setting an annual rate for garbage pickup for the coming fiscal year above a contractually-obligated 3% raise. Following a conversation that got heated at times, the dais voted 3-2 on Aug. 25 to increase the rate by 7.5% to address Waste Management’s rising labor and fuel costs.
Inside the Founders Park Community Center, Village Manager Ted Yates kicked off discussion by informing Vice Mayor Henry Rosenthal, who led the meeting with Mayor Pete Bacheler recovering in the hospital from an operation, and the three council members that Waste Management initially sought a 16% increase.
Waste Management completed a $4.6 billion acquisition of Advanced Disposal in October 2020. Issues the village faced with Advanced Disposal, which had a 10-year contract beginning in 2013, fell into Waste Management’s hands as a result.
With a new fiscal year beginning Oct. 1, council members are required to impose and collect annual solid waste service assessment from 4,300-plus residential parcels in the village. Yates initially proposed that the council give the garbage company a contractually-obligated 3% raise and another 7% to bring them near the Consumer Price Index. It brought the annual garbage collection rate to around $490 for the upcoming fiscal year. Councilman David Webb said he supported Yates’ request.
“I know nobody likes to consider raising costs for anything, but the reality is the costs are going up out of our control and out of Waste Management’s control, which is providing disservice to our community,” he said. “As most of you realize, when the village put this (garbage collection services) out for bid, we got one bid and it was from the predecessor to Waste Management.”
Webb added that he believes Waste Management would likely be the only bidder if the village plans to send garbage services out to bid in the future.
“They have legitimate issues. And I realize everyone living in the community is dealing with the same legitimate issues of inflation, cost of fuel and everything else. If we nail them again with (a) 3% (raise) and shoot them between the eyes when they have legitimate presentations of the issues they are dealing with ….if we are lucky to get them to bid when we put this for contract, we’re going to have eat it at that time anyhow.”
Councilman Mark Gregg agreed with the proposed rate. Gregg said he recently attended the League of Cities conference in Hollywood. Garbage collection vendors were among the organizations there to discuss their services. Gregg said Yates and he visited several vendors to find that none would be interested in serving the Florida Keys and Islamorada.
“That reinforces what Dave said. Competition is limited to one,” he said.
Rosenthal said while he understands the hardships everyone is facing with inflation, Waste Management is a $14.5 billion company. Rosenthal proposed giving 3% as obligated in the contract and another 2%.
“I wasn’t at the table to negotiate with them. I’m sure Ted did a great job. But that’s where I am,” he said.
Yates said there was very little negotiating between him and Waste Management during talks.
“I kind of told them what I was going to present to the council that, in my mind, was an amount that would maintain a relationship and be something I thought council would act upon,” Yates said.
Admitting that he’d probably take immense criticism from his comments, Rosenthal said there was “nobody in the room that knows how to negotiate anything.”
“You don’t have the background to negotiate against this outfit. You just don’t,” he said. “Prime example, I negotiated a contract with this man over here (Yates). It came out pretty good. When I was doing that and there was an impasse, and I said to you, ‘When I hang up we’re done.’ Remember that? Well I’m just saying. There’s a language that you have to use when you’re negotiating. This is not negotiating. This is high school crap.”
Yates reiterated that there was no negotiating during talks with Greg Sullivan and other Waste Management officials.
“I’ll do whatever the council wants me to do. They’re going to take whatever I tell them they’re going to take,” he said. “There is no negotiating. I came up with what I thought was a reasonable percentage, to again, maintain the relationship, continue on and get us to next year so I could look at contract extension or different things.”
Webb quickly proceeded to issue a call to question, which ends all debate and discussion and brings a topic to immediate vote. It was ultimately turned down via a 2-2 vote. Webb then called for a five-minute recess.
When the council returned, Bacheler joined the meeting via Zoom from his hospital bed.
“I don’t like 2-2 votes, guys. I had a little discussion with (village attorney) John Quick. I can participate in the meeting and vote officially.”
Bacheler, Webb and Gregg voted in favor of the $490 assessment rate. Rosenthal and Pinder voted “no.”
In July 2021, the dais voted down a proposed 7% commercial rate increase for trash pickup by Waste Management. As a result, the village gave the company the contractually-obligated 3%.
