The SBWMA is a joint powers authority comprised of 12 jurisdictions in southeastern San Mateo County that work cooperatively on solid waste matters. HF&H has performed the SBWMA’s annual rate review for over ten years.
HF&H Solutions
In 2006 (which was typical of prior years), HF&H assisted the SBWMA by performing a review of Allied Waste Industries of San Mateo County’s jurisdiction-based refuse collection, plant, and recyclable material collection, processing, and disposal, transfer station, and recyclery applications for 2007 rates. HF&H reviewed Allied calculations:
Collection Operations - Allied requested an average rate increase of 16.6% for the 12 member agencies.
Transfer Station/Recyclery Operations - Allied calculated its 2007 compensation is projected to be $29.8 million.
Results
Collection Operations - Based upon our analysis, HF&H concluded that an average rate increase of 7.9% was necessary to compensate Allied for its expenses and provide it with the agreed upon level of profit, reflecting a savings of approximately $5.3 million.
Transfer Station/Recyclery Operations - Based upon our analysis, HF&H concluded that Allied's 2007 compensation is projected to be $27.8 million, reflecting a savings of approximately $2.0 million.
