22-097 Service Order #7 dated 9-14-23 HF&H Service Order 7 HFH Billing and Fee Audit - PO 2024-204 CITY OF CUPERTINO
MASTER AGREEMENT CONSULTANT SERVICES
SERVICE ORDER NO.
MASTER AGREEMENT #:MA Date:
Maximum Compensation:
Consultant:Firm Name:
Address:
Contact: Ph:
Project Name:
Description: (simple project description if appropriate)
Attachment A: Includes Description of Project, Scope of Service, Schedule of Performance
and Compensation
City Project Management
Managing Department: Public Works Project Manager:
Fiscal/Budget :
SO Acc't #:PO #:
Project #:Date:
Approvals:
Date:
Date:
Appropriation Certification: I hereby certify that an unexpended appropriation is available in the above
fund for the above contract as estimated and that fund are available as of this date of signature
City Finance:Date:
Encumbrance this Service Order:
MA End Date:
Consultant:
Env. Programs Manager:
Management Analyst
Master Agreement Maximum Compensation:
Master Agreement Unencumbered Balance:
Total Previously Encumbered to Date:
City of Cupertino Master Agreement Service Order - Page 1 of 1
22-097 7/26/2022
$350,000 August 31,2025
HF&H Consultant, LLC
201 N. Civic Drive, Suite 230 Walnut Creek, CA 94596
Peter Deibler (925) 977-6968
4 Solid Waste Consulting
4
Ursula Syrova
$350,000.00
$126,140.00
$14,535.00
$209,325.00
520-81-801 750-174
n/a
tbd
9/14/2023
7
Sep 14, 2023
Sep 14, 2023
Sep 14, 2023
Service Order 7 – Complete Billing and Fee Audit
September 12, 2023
HF&H Consultants, LLC 1
SERVICE ORDER 7 – COMPLETE BILLING AND FEE AUDIT
Service Order 7 includes the conducting the work necessary to completing the billing and fee audits. Dave
Hilton and Danielle Derby will be lead staff in conducting key tasks to include: 1) reviewing RFI information,
2) conducting the billing audit and city fee review, 3) coordinating with the City and Recology, and 4)
documenting final results.
Scope of Work
Task 1 Review RFI Information. HF&H will review documents collected from the City and Recology from
the initial RFI related to billing and city fee calculations. HF&H will request additional information, as
necessary, from the City or Recology. To the degree feasible based on the receipt of information, HF&H
may proceed with specific areas of the review prior to receipt of all requested information.
Task 2 Audit Components. HF&H will perform the following areas of review in order to ensure Recology
is accurately billing its customers and that it has calculated and transmitted all fees and payment to the
City appropriately:
1. Billing Audit: HF&H will select a sample of customers (residential, multi-family, commercial, and roll-
off) from a recent monthly or quarterly billing to confirm the application of appropriate rates for the
current rate period. HF&H will tie the rate in the billing file to the rate in the rate sheet, as well as
request copies of invoices to confirm the billed rate per Recology’s file agrees to the billed rate on the
customer’s invoice. Based on the initial findings, HF&H may request additional selections for testing.
City Fee Audit: HF&H will perform a high-level review of the accuracy and completeness of the City
fees paid by Recology. Our review will entail a review of a recent 24-month period to confirm
mathematical accuracy of the monthly remittances and agreement with remitted funds. Then HF&H
will focus on one month during the time frame, to confirm proper calculation of the monthly Franchise
Fee and Solid Waste Fund Operations Fee in accordance with Article 7 of Recology’s franchise
agreement. This includes ensuring the calculation of gross receipts properly excludes revenue as
detailed in the franchise agreement (e.g., sale of recyclable materials or CRV values).
Task 3 Coordination with City Staff and Recology. During the review HF&H will coordinate as needed with
both Recology and City staff, including via email, phone, and periodic meetings with City staff and/or
Recology to resolve logistical matters, discuss data, and consider preliminary findings. Should HF&H
identify areas in which Recology appears to not have performed in a manner consistent with the
requirements of the Agreement, HF&H will provide Recology an opportunity to comment on and/or refute
the draft finding.
Task 4 Document Results. HF&H will summarize the results of the performance in a high-level memo
report to the City that documents our key findings and recommendations. HF&H will discuss an outline of
the report with the City prior to preparing and submitting the draft report. HF&H anticipates that the City
will provide a single set of non-conflicting comments to the report. If applicable, HF&H will also meet with
City staff to discuss the report and their comments and questions. Based on the City’s input, HF&H will
make any necessary changes and provide a revised draft report for the City and Recology review. Recology
will be asked to provide a single set of non-conflicting comments to the revised draft report. If needed,
HF&H and the City will then meet with Recology to review Recology’s comments. HF&H and the City will
Service Order 7 – Complete Billing and Fee Audit
September 12, 2023
HF&H Consultants, LLC 2
discuss the feedback received from Recology, and HF&H and the City will agree on any changes to the
final report. The final report will be provided to both the City and Recology.
Fee Estimate
HF&H proposes to perform this work consistent with the billing arrangements and rates included in our
master services agreement with the City. We estimate that the fees required to perform this scope of
work will not exceed $14,535. Our estimate of the hours by staff role and task are presented below. Note
that we assume that HF&H presence at meetings will be virtual.
HF&H respectfully reserves the right to reallocate budget among staff and tasks within this total not-to-
exceed amount to accommodate issues that arise during the performance of work, which always varies
somewhat from the preliminary estimates.
Schedule
HF&H assumes that the above tasks will be completed by late October.
Task # Task Description Pr
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Total Estimated
$325 $305 $215 $170 $150 $125 Hours Fees
1 Review RFI Information 0 1 2 0 2 0 5 $1,035
2 Billing Audit and City Fee Audit 2 6 14 0 20 0 42 $8,490
3 Coordination with City and Recology 0 1 2 0 2 0 5 $1,035
4 Document Results 1 2 6 0 10 2 21 $3,975
Subtotal 3 10 24 0 34 2 73 $14,535
Out-of-Pocket Expenses $0
Total Budget $14,535
HF&H Service Order 7 HFH Billing and Fee
Audit
Final Audit Report 2023-09-15
Created:2023-09-14
By:Julia Kinst (juliak@cupertino.org)
Status:Signed
Transaction ID:CBJCHBCAABAAZMKBZYiUk9z8YcsXPJKlKxeN4mghQsW1
"HF&H Service Order 7 HFH Billing and Fee Audit" History
Document created by Julia Kinst (juliak@cupertino.org)
2023-09-14 - 6:20:00 PM GMT- IP address: 216.198.111.214
Document emailed to rchilton@hfh-consultants.com for signature
2023-09-14 - 6:20:54 PM GMT
Email viewed by rchilton@hfh-consultants.com
2023-09-14 - 6:25:15 PM GMT- IP address: 104.28.123.99
Signer rchilton@hfh-consultants.com entered name at signing as Rob Hilton
2023-09-14 - 6:25:50 PM GMT- IP address: 107.127.14.83
Document e-signed by Rob Hilton (rchilton@hfh-consultants.com)
Signature Date: 2023-09-14 - 6:25:52 PM GMT - Time Source: server- IP address: 107.127.14.83
Document emailed to Ursula Syrova (ursulas@cupertino.org) for signature
2023-09-14 - 6:25:53 PM GMT
Email viewed by Ursula Syrova (ursulas@cupertino.org)
2023-09-14 - 11:43:51 PM GMT- IP address: 104.47.73.126
Document e-signed by Ursula Syrova (ursulas@cupertino.org)
Signature Date: 2023-09-14 - 11:45:31 PM GMT - Time Source: server- IP address: 64.165.34.3
Document emailed to Julia Kinst (juliak@cupertino.org) for signature
2023-09-14 - 11:45:33 PM GMT
Document e-signed by Julia Kinst (juliak@cupertino.org)
Signature Date: 2023-09-15 - 0:00:37 AM GMT - Time Source: server- IP address: 216.198.111.214
Agreement completed.
2023-09-15 - 0:00:37 AM GMT