HomeMy WebLinkAboutItem 2d: Professional Services Agreement with HF&H Consultants, LLC for the financial audit of commericial trash service.DATE: October 2, 2012
STAFF REPORT
Public Works Services Department
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Vanessa Hevener, Environmental Services Officer
SUBJECT: AUTHORIZE THE CITY MANAGER TO EXECUTE A PROFESSIONAL
SERVICES AGREEMENT WITH HF &H CONSULTANTS, LLC FOR THE
FINANCIAL AUDIT OF COMMERCIAL TRASH SERVICE PROVIDERS
IN THE AMOUNT OF $33,000.
Recommendation: Approve
SUMMARY
Pursuant to the Arcadia Municipal Code Section 6434.2(b), each of the City's
commercial waste haulers shall pay a refuse fee to the City equal to 9.5% of any and all
gross monthly receipts resulting from their business operations within the City. To
ensure that the City is appropriately receiving the required Refuse Fee payments from
its permitted commercial waste haulers, the Public Works Services Department solicited
bids to conduct a financial audit of the commercial haulers operating in the City of
Arcadia.
Based on the results and evaluation of the proposals submitted, it is recommended that
the City Council authorize the City Manager to execute a Professional Services
Agreement with HF &H Consultants, LLC for the financial audit of the commercial trash
service providers in the amount of $33,000. Funds for the commercial audit will be paid
by the commercial haulers.
BACKGROUND
On January 6, 2004, the City entered into a contract to conduct a financial audit of
permitted commercial haulers. The findings of the audit revealed an underpayment of
Refuse Fees to the City and necessitated a revision to the Arcadia Municipal Code. A
financial audit of the City's current commercial waste haulers is needed to identify any
discrepancies or inaccuracies of the Refuse Fee payments covering the 2009, 2010,
and 2011 calendar years. The financial audit would identify underpayment of fees that
Honorable Mayor and City Council
October 2, 2012
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the City could collect for reimbursement, which could be used for the enhancement of
the City's Solid Waste Programs.
DISCUSSION
The City of Arcadia currently has three permitted commercial waste haulers:
Consolidated Disposal Service, Valley Vista Services and Waste Management, Inc.
Cumulatively, these three commercial trash providers service approximately 1,000
accounts within the City. Local businesses are free to choose from any of the permitted
haulers for refuse and recycling collection services. Pursuant to the Arcadia Municipal
Code Section 6434.2(b), the City's permitted commercial waste haulers are required to
pay a 9.5% Commercial Refuse Fee to the City of any and all gross monthly receipts
resulting from the their operations within the City. The revenue generated from this fee
provides the needed funds for the annual administration and management of the City's
Solid Waste Programs. To ensure that the City is appropriately receiving the required
Refuse Fee payments from its permitted commercial waste haulers, a financial audit
must be conducted.
The scope of services includes the following: 1) review of the City's Municipal Code
and Refuse Fee program; 2) conduct on -site reviews of financial and operating records
at commercial trash service providers; 3) provide findings and recommendations to
identify any discrepancies or inaccuracies of records and reports made to the City; and
4) recommend any program changes regarding assessments of fees and permitting of
haulers.
Request for proposals were distributed to six qualified consulting firms. The following
four proposals were received on August 27, 2012, and the results of the proposal
evaluations are as follows:
Consultant
Location
Proposal Rating
Amount
1. HF &H Consultants, LLC
Irvine, CA
22
$33,000.00
2. MSW Consultants
Temecula, CA
18
$28,000.00
3. R3 Consulting Group, LLC
Roseville, CA
16
$34,780.00
4. SCS Engineers
Long Beach, CA
14
$20,500.00
All proposals were evaluated and scored based on a maximum 25 points. Scores were
assessed based on the firm's quality and responsiveness, its understanding of the
services identified in the request for proposals, the firm's qualification and experience
with similar projects, and the quality of the service delivery approach. Although SCS
Engineers submitted the lowest bid, their proposal did not include providing a certified
public accountant or public accountant on their work team.
HF &H Consultants ranked the most qualified based on their successful completion of
similar projects, commendable background, and thorough approach and understanding
of the project. Additionally, HF &H conducted the previous financial audit in 2004 and is,
Honorable Mayor and City Council
October 2, 2012
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therefore, most familiar with the City's refuse fee structure and issues identified in the
previous audit.
Based on the results and evaluation of the proposals submitted, it is recommended that
the City Council authorize the
is y LLIC for theofinanc financial of commercial rtrash
Agreement with HF &H Consultants,
service providers in the amount of $33,000.
FISCAL IMPACT
Arcadia Municipal Code Section 5130.3 provides that the cost to conduct any related
audits of records or reports submitted by the permitted commercial waste haulers would
be shouldered by the commercial waste haulers. Each of the three commercial haulers
will reimburse the City and will pay equal to one third of the cost of the financial audit.
Therefore, there is no fiscal impact to the City. The project is anticipated to be
completed within three months after the contract is awarded to HF &H Consultants, LLC.
RECOMMENDATION
It is recommended that the City Council approve the following:
1. Authorize the City Manager to execute a Professional Services Agreement
with HF &H Consultants, LLC for the financial audit of commercial trash
service providers in the amount of $33,000.
2. Authorize the City Manager and City Clerk to execute a contract in a form
approved by the City Attorney.
APPROVED:
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City Manager