HomeMy WebLinkAbout2009-01-27 - AGENDA REPORTS - HF&H CONTR SOLID WASTE AUDIT (2)CONSENT CALENDAR
DATE:
SUBJECT:
DEPARTMENT:
Agenda Item:
CITY OF SANTA CLARITA
AGENDA REPORT
City Manager Approval:
Item to be presented by:
January 27, 2009
Travis Lange
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AWARD CONTRACT TO HF&H CONSULTANTS, LLC TO
CONDUCT A FINANCIAL AUDIT OF THE CITY'S
COMMERCIAL AND RESIDENTIAL SOLID WASTE HAULERS
Public Works
RECOMMENDED ACTION
City Council award contract for the financial audit of the City of Santa Clarita's franchised
commercial and residential solid waste service providers to HF&H Consultants, LLC in the
amount of $84,640, plus a ten percent contingency in the amount of $8,464, for a total
contract amount not to exceed $93,104.
2. Authorize the City Manager or designee to execute all documents, subject to approval by the
City Attorney.
BACKGROUND
At the City Council meeting on May 27, 2008, the City Council directed staff to initiate an audit
of the financial records of the franchised commercial and residential solid waste service
providers. This request was made in response to an extraordinary rate increase requested by both
Burrtec Waste Industries and Blue Barrel Disposal/Waste Management.
Pursuant to the franchise agreements, the cost for the preparation of their financial statements and
the audit shall be borne completely by the respective franchisee. The estimated cost of the audit
was approximately $25,000 for each franchised hauler. Therefore, at the City Council meeting on
May 27, 2008, a total of $50,000 was appropriated in Expenditure Account 14601-5161.002 and
Revenue Account 100-4621.001 was increased by $50,000.
APPROWED
The City prepared and allowed the haulers to review the Request for Proposal (RFP). The RFP
was sent to four firms and an additional 21 firms accessed the RFP via the City's website. The
City received the following two responses to the RFP:
Company
Veracity
HF&H Consultants, LLC
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Santa Clarita, California
Newport Beach, California
Utilizing the criteria outlined in the RFP, the City conducted its evaluation and found the
proposal submitted by HF&H Consultants, LLC to be the highest ranked proposal. Veracity's
proposal was rejected for three reasons:
• The proposal submitted by Veracity was incomplete
• Veracity lacks the solid waste experience necessary to conduct the scope of work in its
entirety
• The bid submitted was $53,000 higher than the highest -ranked bidder
The proposals submitted were above the $50,000 amount originally appropriated for the audit.
An additional appropriation of $50,000 was approved by Council with the midyear budget on
December 9, 2008. Each waste hauler will be required to make an additional deposit to cover the
entire cost of the audit. Finally, both the commercial and residential haulers submitted comments
on additional considerations to be added to the audit's scope of work. A majority of their
concerns were addressed by the scope of work in the RFP. However, the length of time of the
fuel analysis was extended from an 18 -month period to a 3 -year period.
ALTERNATIVE ACTIONS
Other action as determined by the City Council.
FISCAL IMPACT
Pursuant to the franchise agreements, the cost for the preparation of their financial statements and
the audit shall be borne completely by the respective franchisee. No general fund monies will be
utilized for this contract.
ATTACHMENTS
None
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