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Case Studies

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City of Sunnyvale

Contractor Compensation Reviews (1997-2019)

Project Background

The City of Sunnyvale contracts with a private hauler to provide residential and commercial solid waste, recyclable materials, and green waste collection services.  In accordance with the franchise agreement with the private hauler, the hauler is required to submit a calculation of its projected compensation for each forth-coming rate year. The City requires verification of the requested compensation and has contracted with HF&H exclusively since 1997 to perform the review and ensure the hauler’s compensation calculation submitted is accurate and in accordance with the franchise agreement.

To verify that the compensation calculation required by the hauler is consistent with the guidelines outlined in the franchise agreement, HF&H reviews that reported costs are incurred by the hauler when providing franchised services to the City’s rate payers, and that such costs are reasonable based on industry standards.  

Project Results

For the most-recently completed rate review (Fiscal Year 2018-2019), the company submitted its contractor compensation application in the amount of $22,597,137.  HF&H reviewed the application and recommended decreasing the contractor payment to $22,408,446 a savings of $188,691 to the City and City’s rate payers.