The City of Redondo Beach has had exclusive agreements for residential and commercial solid waste collection, recycling, and disposal since 1991.
HF&H Solutions
The City retained HF&H to review the contractor’s records for 1993, 1995, 1998, and 2001. The scope of the examinations varied from review to review to meet the needs of the City and included the following:
Determining the reasonableness of the rates;
Verifying account and billing information, including the unit count for multi-family facilities;
Verifying the proper payment of City fees, including an AB 939 fee and an administrative fee;
Reviewing the contractor’s method for determining the City’s share of recyclable material sales revenue and assessing whether they were being maximized;
Evaluating customer complaints;
Verifying reported disposal quantities;
Determining if scout and pushout services were provided in accordance with the agreement, operationally necessary, and provided at reasonable rates; and,
Developing contract recommendations.
Results
During the solid waste audits, HF&H found that the rates being charged by the contractors were higher than the contract rate, a significant number of customers were not billed correctly, revenue sharing was under-paid, and there were inaccuracies in disposal reporting. As a result of HF&H’s findings, the City was able to recover $87,000 in shared revenue and increase their diversion rate.
City of Redondo Beach