On August 19 the Monterey Park City Council reviewed the proposals the staff received on the Request For Proposal to audit Athens Services, the city exclusive franchise waste hauler.

Council had requested in June that the staff request an RFP be sent out to select a company to assess the accuracy of complaint tracking, inspection of the facilities and vehicles, survey of their field operations and a financial audit of the calendar years of 2007 to 2008.

The Athens contract and the municipal code provide for a financial audit as directed by the city manager. The contract and the code also allows for the city to inspect recordkeeping of complaints and missed pick-ups, and the operations and facilities with reasonable notice.

The Council majority executed a contract with Athens in 2002. The city has conducted one audit in 2004 on the billing, fees and waste tonnage.

Councilmember Frank Venti with support from Councilmember Betty Tom Chu had selected a private group of residents to research the Athens contract. Mr. Venti was upset that the contract did not go out to bid before Council signed the 15-year contract.

Councilmembers had established a “Blue Ribbon Committee” of selected members of the business community and residents to review the city’s options before awarding the contract to Athens.  The city’s contract with Athens required a seven-year evergreen notice be given to the trash hauler before the city could send out a Request For Proposal on the contract.  The city also faced a $10,000 a day fine from Sacramento if they did not reduce their trash in the landfill by 50%.

The Committee reviewed all the data provided by the city staff and determined that it was best to negotiate a new contract with Athens.  They made their recommendations to Council and the majority signed the 15-year contract. The city can send out a Request For Proposal near the end of this contract.

At the August 19 meeting staff recommended the contract be awarded to H F& H Consultants, LLC based in their vast experience of auditing more that 100 waste haulers on behalf of public agencies in Southern California.

Mr. Ezzet, a representative from the firm, advised Council that he would be conducting this audit. He has audited Athens before and expects this comprehensive audit to take six months to complete as it covers multi-family and business customers.

City staff has been auditing the billing records as the city bills the residents for their trash hauling with their water bills.

Jenkins & Hogin, the city attorney’s law firm will conduct an internal review of Athens Services operations as it relates to the city’s current contract with Athens.  Any violations would be discussed with Council in closed session.

The city’s Refuse Fund will serve as the source of funding the $80,000 cost of this audit.  Should the audit discover a discrepancy of 5% or greater in gross receipts in the waste hauler’s favor, the waste hauler will be required to reimburse the city for the cost of the audit. This provision may only be applied to the financial review.

Council’s discussion included questions to Mr. Ezzet and staff about this audit.  They voted to award the contract to H F & H Consultants in the amount of $80,000 as included in the 2009-2010 fiscal year budget to conduct the audit and authorized the city manager to execute a professional services agreement with the consultants.