Between 1995 and 2001, the City of Beverly Hills had non-exclusive franchise agreements with several solid waste haulers. The agreements included an AB 939 fee, franchise fee, administration fee, and a recycling fee. The haulers could earn a recycling rebate by achieving targeted diversion levels. There were five haulers at the inception of the program. In the last two years of the program, there were only two haulers remaining. The franchise agreements gave the City access to the haulers’ financial records and the authority to select an independent consultant to review the records to verify information reported to the City.
HF&H Solutions
The City retained HF&H annually to perform the hauler audits to verify:
Accurate reporting of gross receipts;
Accurate reporting of tons disposed and diverted; and,
Accurate calculation and remittance of the various City fees and recycling rebate.
Results
HF&H found that all of the haulers had difficulty documenting diversion tonnage, resulting in the overestimation of the recycling rebate due to the haulers. This resulted in substantial fees due to the City. As a result, HF&H identified in excess of $1.9 million in fees due to the City between 1995 and 2001.
City of Beverly Hills