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Case Studies

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City of Alameda

Rate Reviews (2003, 2007, 2010-18)

Project Background

The City of Alameda contracts with a private hauler to provide collection of refuse, recyclable and organic materials.  In accordance with the franchise agreement, the hauler is required to submit a calculation for compensation using one of two methodologies: (1) an index-based adjustment, where approved compensation from the prior year is adjusted by various CPIs (i.e., Fuel Index for fuel costs, Urban Wage Earners for labor costs, etc.), or (2) a cost-based adjustment, where compensation is calculated by forecasting costs based on actual results from the most-recently completed rate period, reviewed and adjusted for non-allowable costs.  The City requires verification of the requested compensation and has contracted with HF&H exclusively since 2010 to perform the review and ensure the hauler’s compensation calculation submitted is accurate and in accordance with the franchise agreement.

Project Results

  • For the cost-based Rate Periods 3 (FY 2004-05), 6 (FY 2007-08), 9 (FY 2010-11), 12 (FY 2013-14) and 15 (FY 2016-17) the company submitted its contractor compensation applications. HF&H reviewed the applications and recommended adjustments, which reduced the contractor compensation for a total savings of approximately $1,674,867.
  • For the index-based Rate Periods 13 (FY 2014-15), 14 (FY 2015-16), 16 (FY 2017-18) and 17 (FY 2018-19) the company submitted its contractor compensation applications. HF&H reviewed the applications and recommended adjustments, which increased the contractor compensation for a total increase of approximately $294,325.