It’s been over 20 years since the franchise agreement was approved and signed by the City of Kissimmee Commission. Since then it has been extended 5 times with the latest extension expiring in 2022. This franchise agreement was between the city and Waste Management and gives them the ability to be the sole provider of refuse disposable within the City. This specificity applies to local businesses with large trash dumpsters. Those wishing to open or currently have a business, apartment complex or a need for a constant on sit trash dumpster are forced to do business with Waste management.
There are many economic issues with this starting with the obvious monopolization
of a market. Being that this is a country founded on the basic economic principle of free markets and capitalism, it’s disappointing to see such a monopoly be intentionally created. By giving this company this leg up it hurts other companies that are still freely allowed to operate outside of city limits. Restricting private refuse collection from providing commercial solid waste collection, has the potential of increasing the cost to costumers. This increase in price could be more efficiently used to hire employees, renovate a property, or to provide more inventory or services.
This monopoly also gives Waste Management large amounts of power, in the form of license approval authority for any recyclable collector wishing to work within City Limits. Giving a private entity this kind of power allowed that company to dictate who can and cannot do business within the city. They then have the power to unfairly allow one collector over another. These same collectors, once given approval by Waste Management must then seek a license from the city. This creates an additional cost, increasing cost for any collector that will then be passed down to customers.
With the possible increase in price, customers should be wary not to forget a payment. This agreement gives the City of Kissimmee the power to “punish” local business owners that choose not to pay. Those that do not hand their money to Waste Management could see the city use their power to charge an additional late fee, cut off power, or even place a lien on the property. In any other case waste collectors would offer incentives not punishments to incentives timely payment.
“[Punish], That refers to the City of Kissimmee’s right to add late fees, have the electric service cut off, and/or have a lien put on the property.”-JODY L. KIRKENDALL CITY OF KISSIMMEE SANITATION SUPERINTENDENT
We are taught in grade school the dangers of allowing monopolies to be formed. We are told that when a monopoly is allowed that the company is eventually allowed to charge what they’ed like. In the most recent agreement, that is exactly what the company and City agreed on. In a May 2017 letter to customers, they were told of hefty new charges for anything from delivering new containers, to a monthly charge for a lock bar. We have also been told by local business owners that savings can be anywhere from 15 to 30 percent when comparing business done within city limits and outside those limits. This kind of disparity can not exist and only hurts business within the city.
Call your City Commissioners today and let them know that this must change. 407-847-2821