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LOCAL GOVERNMENT QUALIFICATIONS

City of Barstow—Cost of Service and Time and Motion Study
NewPoint Group assisted the City to review three years of financial and operating data for the City’s franchise hauler Desert Disposal Services, Inc. (DDS). Among the tasks for this project were to review DDS financial statements and to recommend a rate structure that covered DDS’s costs of operation and provided a reasonable financial return. We conducted detailed testing of revenues and expenses, assessed the reasonableness of franchise fees and administrative fees, evaluated the DDS vehicle and equipment inventory, performed residential and commercial time-and-motion studies and route audits, and examined DDS recycling operations. For this project, we recommended that the City relinquish the billing function to the hauler.

Cities of Campbell, Monte Sereno, Saratoga, and Los Gatos, California—Perform Refuse Collection and Disposal Performance Audit
NewPoint Group professionals performed a refuse collection and disposal performance audit of a franchised garbage company. The performance audit included the following areas: (1) Efficiency of operations, (2) Overall organizational structure, management systems, and procedures, (3) Staffing and personnel practices, and (4) Financial management practices. The study provided detailed recommendations for improved future operation efficiencies which would then be reflected in customer billing rates.

City of Concord—Development of Rate Setting Process and Methodology
NewPoint Group professionals developed the process and methodology to prepare and approve changes in residential garbage collection rates. Objectives of this study were to: (1) establish policies regarding rate setting; (2) establish a standardized rate review process and methodology; (3) assess alternative methodologies for determining reasonable profits; and (4) develop a comprehensive manual describing the entire process for establishing new collection fees. The manual establishes rate change policies, provides application forms, specifies reporting formats, identifies required supporting documentation, and describes the procedure to be followed in requesting, reviewing, and adopting residential rate changes. NewPoint Group executives then performed the first rate review based on the new methodology, and are currently conducting the second rate review.

City of Concord—Four-Year Rate Review
NewPoint Group professionals conducted the four-year base rate review of the City’s franchise solid waste hauler, Concord Disposal Service. In addition to performing a comprehensive cost-of-service review, we also assessed disposal and transportation costs, reviewed senior citizen rates, and examined the hauler’s request for a franchise extension. The objectives were to suggest rates that were fair, reasonable, and justifiable to the rate payers, and to develop a modified franchise agreement which both the City and hauler could adopt.

City of Concord—Residential Refuse Collection Rate and Service Level Restructuring

NewPoint Group assisted the City to restructure residential refuse collection rates and services. This major collection system change included a significant capital investment by Concord Disposal Service (CDS), the City’s franchised hauler, of over $7 million for eleven new automated trucks and nearly 80,000 new carts. Under the new system, customers chose either a 32-, 64-, or 96-gallon refuse cart. Customers also received upgraded and expanded recycling services, including a new 64-gallon, single stream, recycling cart and a 96-gallon yardwaste cart.

Over this year-long engagement, we assisted City staff and CDS to plan the transition to the new system. We helped the City and CDS develop a survey to identify customer preferences under various rate structure and service level scenarios. This survey was administered to 400 City customers.

CDS submitted a one-time rate restructuring application to the City in support of the system change. Our review of this application addressed: (1) revenue, cost, and profit impacts, (2) changes to disposal costs from expected waste stream shifts, (3) cost reductions from new, more efficient, trucks, (4) future inflationary cost adjustments allowed through the rate setting process, and (5) CDS plans for a new state-of-the-art Materials Recovery Facility (MRF) sort line to process the City’s new single stream recyclables.

The report described the collection system before, and after, the system change. The report identified a new expanded list of acceptable curbside recycling materials and quantified potential impacts to City diversion levels. The report documented benefits and costs of the new system. Also included are recommendations for City customer outreach and education.

At the City’s request, we included legacy rates for existing senior citizen and mini-can customers, as well as a new qualified low-income senior citizen rate. We conducted a comparative survey of neighboring jurisdiction residential rates and rate structures.

To arrive at our recommended rate structure and frequency distribution, we analyzed impacts of various rate structures, rates, price elasticities, and customer frequency distributions. We also assessed multiple-year cash flow impacts to CDS from these different assumptions.

We identified areas of the City Municipal Code that require revision. We developed new franchise agreement language codifying terms and conditions the City and CDS agreed to for the new system. As part of this project, we updated the City’s Manual to version 4.0. This new version of the Manual added newly agreed upon terms and conditions.

City of Concord—Rate Review

NewPoint Group assisted the City to conduct the fourth base year rate review of the City’s franchised refuse collection hauler, Concord Disposal Service (CDS). Our analysis followed guidelines contained in the City’s Rate Setting Process and Methodology Manual.

We evaluated: (1) increases in direct labor wages, health and welfare benefits, and pension benefits required by union agreements, (2) increases in tipping fees, (3) increases in franchise fees, (4) increases in costs for a new website and online bill pay system, and (5) increases in toter rental revenues. From our review, we recommended reductions in office salaries, general and administrative costs, trucking charges, and profits.

We conducted a comparative survey of neighboring jurisdiction rates. We included a survey of franchise fees and a survey of recent rate changes in 29 California jurisdictions. We recommended that the City and CDS work together to develop a five-year transition plan to move from manual to automated collection service. We updated the City’s Manual, including a new more simplified and streamlined interim year rate setting process (based on applying 70 percent of the most recent change in the CPI to the rate). The City Council voted 5-0 in favor of our recommendation.

City of Coronado—Conduct Solid Waste Management Review
This project was a solid waste management study for the City of Coronado. The study evaluated and recommended alternative collection, transportation, and disposal rate structures which provide for equity and fairness among all users. The study evaluated the City's fee objectives, cost considerations, user fee constraints, and new rate implementation effects. Finally, the study identified potential revenue sources or cost-saving opportunities for relieving fiscal pressures of both refuse disposal services and adding a new recycling program.

City of Farmington, New Mexico—Cost-of-Service Study
NewPoint Group conducted a cost-of-service study for the City of Farmington's waste hauler, Waste Management of New Mexico, Inc. This study focused on determining whether residential, commercial, and industrial solid waste rates were aligned with the cost of providing these services. At issue was whether the current methodology for setting rates, using a percentage of the annual change in the Consumer Price Index, was appropriate. We assessed the overall profitability and profitability by service type, reviewed costs for reasonableness, examined allocation methodologies, and created a detailed cost-of-service model. We also conducted a rate survey of neighboring jurisdictions, and a consumer satisfaction survey of residential and commercial customers. We made recommendations for realigning rates with the costs-of-service and for moving the hauler's financial return closer to industry averages, using prospective rate adjustments. Our final report and recommendations were accepted by the City Council by a 5-0 vote.

City of Fremont—Close-Out Audit
NewPoint Group professionals performed on a final close-out audit of the franchise agreement for solid waste and recycling services for the City of Fremont. The City had a franchise agreement with Waste Management of Alameda, formerly Oakland Scavenger. This engagement involved detailed testing of various revenue and expense accounts as a basis for determining the current size of a franchise close out balancing account. Results were presented and a final determination and recommendation made related to closing out an existing balancing account.

City of Fremont—Closure and Post-Closure Analysis
NewPoint Group professionals reviewed the City of Fremont’s obligation for funding closure and post-closure care costs of their local landfill, the Tri-Cities Recycling and Disposal Facility. An analysis of various closure and post-closure estimates, landfill expansion, historical funding levels, trust fund balances and rate applications was conducted to determine the City’s remaining closure and post-closure obligation.

City of Los Angeles—Solid Waste Geographic Information System
NewPoint Group professionals acted as a Technical Advisor and subcontractor to Roy F. Weston, Inc., an engineering consulting firm. Analyzed requirements and designed and developed a custom software system to track, analyze, and map the generation of solid waste in the City of Los Angeles. The system's ability to manipulate large amounts of constantly changing data and present it in both concise numerical form and intuitive geographic form enables the City of Los Angeles to understand the volumes and compositions of solid waste being generated and make fact-based decisions on how to reduce the quantity reaching landfills.

City of San Jose—Determine Economics of Curbside Recycling
The objective of this engagement was to review the City of San Jose Curbside Recycling Program. Study tasks included: (1) identifying demand and supply markets, (2) Compiling relevant demographic data, (3) Reviewing the current curbside program, including recovery and participation rates, (4) Reviewing and assessing economics of the curbside program, (5) Identifying other recovery efforts that could be used in San Jose, and (6) Preparing economic projections for future recycling programs.

City of Martinez—Rate Review
NewPoint Group performed a rate review of Allied Waste Industries, Inc. (dba Pleasant Hill Bayshore Disposal) to assess the impact of implementing new AB 939 programs (including a new yardwaste program, mixed paper recycling program, and automated refuse/yard truck fleet). To perform this engagement, we developed a new rate setting process and methodology for the City of Martinez and used this methodology to establish new rates incorporating the above new programs. This engagement involved extensive negotiations with a City Council subcommittee, City representatives, and Allied Waste management. The City reached agreement with Allied Waste on proposed rates for 2000 and well as the new programs. As part of this engagement, the City finally implemented a rate setting process and methodology, something it had been unable to do since the franchise agreement required the methodology in 1993. NewPoint Group also performed an interim year rate review in 2001 that resulted in an interim year rate increase.

City of Martinez—Rate Review and New Recycling Services
NewPoint Group completed a rate review of Allied Waste Service of Contra Costa County’s (AWSCCC) 2008 Base Year Rate Application. AWSCCC also proposed two new program changes, including: (1) provide expanded multi-family recycling services and (2) provide residential on-call bulky recyclables and yardwaste collection services. We determined AWSCCC’s base year operating ratio (OR). Based on the City’s methodology, at the projected OR, subsequent 2009 to 2011 interim year adjustments will be based on 80, 90, and 100 percent of the Consumer Price Index (CPI) applied to controlled costs. The City unanimously approved our recommendation by a 5-0 vote.

City of San Luis Obispo, California Utilities Department—Development of Rate Setting Policies and Procedures
NewPoint Group professionals developed the process and methodology for establishing integrated solid waste management rates of the franchise hauler. A step-by-step manual also was prepared which establishes the rate setting policies, provides all application forms, identifies the required supporting documents, and describes all of the procedures for submitting, reviewing, and adopting residential and commercial rate changes. We then prepared the draft franchise agreement between the City and hauler. This franchise agreement is intended to guide the collection, transport, and disposal of both solid wastes and recycle materials from residencies and businesses located in the City, and identifies the rights and responsibilities of both the City and franchise hauler. Nearly all cities in San Luis Obispo have since adopted this rate setting methodology and a manual.

City of Vacaville—Three-Year Collection and Disposal Rate Study
NewPoint Group professionals assisted the City of Vacaville on a three-year rate review of the franchised solid waste hauler that included a focused operating ratio survey, landfill closure/post-closure liability evaluation, assessment of future permitted landfill capacity impacts, analysis of new programs (e.g., household hazardous waste, battery program, and yardwaste collection), and evaluation of semi-automated refuse collection options. This review included an audit of both disposal and collection financial statements.

City of Vallejo—Rate Review – Vallejo Garbage Service and Vallejo Recycling
NewPoint Group assisted the City with rate reviews of its franchised garbage hauler, Vallejo Garbage, a Norcal company, and franchised curbside recycler, Vallejo Recycling, a Waste Management company. For both reviews, we obtained unanimous Council approval of our recommended rate changes. For Vallejo Garbage we reviewed a complex rate model, conducted an on-sight assessment of the truck shop and operations, and assessed recent Air Resources Board (ARB) regulations requiring retrofits to refuse collection truck diesel engines (for NOx compliance). For Vallejo Recycling (VR), we worked with the City and hauler to include new recycling volume accounting changes and processing facility changes so that the hauler’s costs were more accurately reflected in the new rate. We assisted the City to reconcile remaining payments owed to VR for 2004 and to develop a process for budgeting and tracking VR bills and payments in 2005.

City of Vallejo—Rate Review – Vallejo Garbage Service
NewPoint Group completed a rate review of Vallejo Garbage Service’s (VGS) 2008 Base Year Rate Application. We conducted a detailed review, with particular attention to the following cost items: (1) Materials Recovery Facility (MRF) sort line conveyer system improvements, (2) a new backup baler and conveyer system, (3) inventory of wheeled carts, (4) mechanic staffing levels, (5) new MRF facility rolled doors, and (6) debris box driver staffing levels. We incorporated the City’s desire for a new litter clean up program and to increase its franchise fee. Due to fluctuations in fuel costs, we recommended a future mechanism for truing up differences between projected and actual fuel costs. The City unanimously approved our recommendations by a 7-0 vote.

Contra Costa County—Rate Review of Pleasant Hill Bayshore Disposal/Browning-Ferris Industries, Inc. (BFI)
NewPoint Group performed a recent rate review of one of the County’s franchise waste haulers, Pleasant Hill Bayshore Disposal/Browning-Ferris Industries, Inc. (BFI). The review examined ten unincorporated County service areas, each with different current rates and rate structures, and historical rate changes. We assessed reasonableness of BFI regional and corporate overhead, related-party transfer station/disposal costs, and extensive allocations from consolidated financial information. Goals of the review were to simplify the rate structure and recommend a uniform rate change, incorporating use of a new rate setting process and methodology.

Contra Costa County—Rate Setting Process and Methodology Manual - Browning-Ferris Industries, Inc.
NewPoint Group developed of a first-generation solid waste rate setting process and methodology for the unincorporated areas of Central and East Contra Costa County serviced by one of the County’s franchise haulers, Browning-Ferris Industries, Inc. Prior to development of this process, rate setting in these County areas was not formally rate regulated. The methodology incorporated County goals and policies, reflected industry norms and practices, and was calibrated and tested concurrently with a rate review. The manual was incorporated by reference into the existing franchise agreement.

Contra Costa County—Modification of Rate Setting Methodology
NewPoint Group conducted a focused review of one of the County’s franchise haulers, Richmond Sanitary Service, Inc. The objective of this engagement was to provide recommendations for modifying an existing rate setting methodology and to assess the reasonableness of existing residential collection rates for unincorporated West Contra Costa County areas. To conduct this evaluation, we recreated a complex multiple jurisdiction cost allocation methodology, examined an extensive affiliated company structure, traced historical sources and components of residential rate changes, and benchmarked certain costs and practices with waste industry norms.

Contra Costa County—Rate Setting Process and Methodology Manual - Garaventa Enterprises
NewPoint Group developed a solid waste rate setting process and methodology for the unincorporated areas of East Contra Costa County serviced by one of the County’s franchise haulers, Garaventa Enterprises. Prior to development of this process, rate setting in these County areas was not formally rate regulated. The methodology incorporated County goals and policies, reflected industry norms and practices, and was calibrated and tested concurrently with a rate review. The manual was incorporated by reference into the existing franchise agreement.

Contra Costa County—Cost of Service and Rate Assessment
NewPoint Group conducted on a high-level review of one of the County's unincorporated areas, the Crockett service area. The review included an assessment of whether the costs of service and associated residential refuse collection rates were reasonable.

Contra Costa County—Rate Setting Process and Methodology Manual - Richmond Sanitary Service, Inc.
NewPoint Group is preparing a rate setting manual for one of the County's refuse collection haulers, Republic Services, Inc., dba Richmond Sanitary Service, Inc. (RSS). The objective of this current engagement is to develop a manual for West Contra Costa County areas that is consistent with other County areas and complete a rate review of Republic, following its relatively recent acquisition of RSS. The manual is intended to replace a dated methodology used by the entire west County area that was essentially developed for the City of Richmond.

Contra Costa County—Rate Review - Richmond Sanitary Service, Inc.
NewPoint Group is conducting a rate review of Republic Services, Inc., dba Richmond Sanitary Service, Inc. (RSS). The objective of this current engagement is to review the revenues, costs, profit levels, allocation methodologies, and operational metrics to recommend a reasonable rate change to RSS during this first base year rate review.

Contra Costa County—Rate Review – Garaventa Enterprises
NewPoint Group completed a rate review of Garaventa Enterprises’ (Garaventa) 2008 Base Year Rate Application. In the Application, Garaventa requested an 11.02 percent rate increase. We recommended a rate decrease of 6.44 percent. We made adjustments to direct labor, tipping fees, general and administrative costs, trucking and equipment, and residential bad debt. We followed the County’s Rate Setting Process and Methodology Manual. We also conducted a rate survey of neighboring communities. The County Board unanimously approved our recommendation by a 5-0 vote.

Contra Costa County—Rate Review and Automation of Refuse and Recycling Services
NewPoint Group completed a rate review of Allied Waste Service of Contra Costa County’s (AWSCCC) 2008 Base Year Rate Application. AWSCCC also proposed to automate refuse and recycling collection services, provide all residents with a new 64-gallon recycling cart in place of the current two 14-gallon bins. We determined the incremental costs to automate refuse and recycling collection services, recommended a rate increase of 0.0 percent even with the new automation/cart services, and specified an implementation timeline. The County Board unanimously approved our recommendation by a 5-0 vote.

County of Sacramento—Financial Review
NewPoint Group personnel performed a detailed review of the financial condition of the franchise refuse hauler, Independent Disposal Service (IDS). Monthly service rates, the number of accounts, revenues and expenses for all jurisdictions within the County were examined for a five-year period. Results were summarized in a report showing a cumulative profit shortfall. IDS subsequently used this information in support of raising refuse collection rates to adequately cover the previous profit shortfall.

County of Sacramento—Disposal and Transfer Station Operations Review
NewPoint Group personnel conducted an evaluation of the County’s solid waste disposal and transfer station operations. The objectives of the study were to: (1) Identify changes in operating policies, methods, and procedures that could increase efficiency and effectiveness, leading to lower costs, and (2) Evaluate rate-setting policies and procedures for transfer station and disposal fees. The rate-setting study included a review of historical costs and revenues and formulation of short- and long-term rate-setting policy alternatives.

County of Sacramento—Allowable Profit Evaluation
NewPoint Group personnel evaluated two solid waste haulers to determine if each realized the guaranteed profit allowed as exclusive permits in the South County. This work involved a detailed review of several years of operating and financial data for each solid waste hauler and a determination of what profit over expenses was earned by each. We developed the format and forms to request information from each company, identified the specified amount of revenues, operating expenses, and depreciation of each of the five years, and determined the actual profit earned by each company. A final report for the Department of Public Works was prepared for each company which compared allowable profit and actual profit and determined the net amount either owed by each company to the County, or owed by the County to each company.

Douglas County, Nevada—Evaluation of Buyback Provision
NewPoint Group professionals recommended an appropriate materials recovery facility/transfer station buyback provision for the County to incorporate into its franchise agreement. We subsequently evaluated the impacts of various buyback options and developed franchise agreement language.

Durham Road Landfill Authority—Landfill Closure and Post-Closure Care Evaluation
NewPoint Group managed an evaluation of the remaining unfunded closure and post-closure costs of the Tri-Cities Recycling and Disposal Facility (TCRDF, formerly Durham Road Landfill). This landfill is due to close in 2001. The engagement was conducted for the Durham Road Landfill Authority, comprised of representatives from the Cities of Fremont, Newark, and Union City (Tri-Cities). We provided an objective, third-party evaluation (in 1996$) of the potential exposure of the Tri-Cities to fund the TCRDF closure and post-closure costs. Currently, the landfill owner, Waste Management of Alameda County (WMAC) has filed a formal complaint to the Tri-Cities regarding this and other franchise-related issues.

El Dorado County—Analysis of Property Leases
NewPoint Group professionals performed an evaluation of the treatment of property leases by the County’s franchise solid waste hauler, El Dorado Disposal. Our analysis included property value appraisals, descriptions of lease options, and discounted cash flow analyses.

King County Solid Waste Division, Washington—Performance Audit
NewPoint Group professionals conducted an objective third-party performance audit of the King County Solid Waste Division, Washington. The audit involved an evaluation of the Division’s organizational structure, assessment of systemwide operational efficiencies, and review of the financial reserve and replacement fund policies using interviews of management and key stakeholders and a benchmark comparison analyses. Following the analysis, we reported on the status of the Division by identifying potential areas of improvement in the areas of organizational structure, fund balance policies, system costs, landfill and transfer station operations, future waste disposal and export options, and other process issues.

Orange County Integrated Waste Management Department—Management and Operations Audit
NewPoint Group professionals conducted this major multi-year project to ensure that the organizational structure and operating procedures of the department would result in the most effective and efficient agency operation possible. Part of the project was concerned with exploring new opportunities for more efficient privatization operation options and to determine sensitive management changes required to accommodate dynamic new waste management programs. The project developed a comprehensive set of organizational effectiveness recommendations for (1) department organizational structure, (2) intradepartment coordination, (3) policies and procedures, (4) landfill operations, (5) administrative support, and (6) performance measures.

San Bernardino County—Determine Solid Waste Rates
NewPoint Group professionals developed solid waste rates for the Solid Waste Management Department, County of San Bernardino. This is one of the largest counties in the United States in terms of geographical area. The county maintains and operates 17 active landfills and one transfer station, and monitors 16 inactive landfills. The complex solid waste system operated in four autonomous geographical subareas in the County. Through the use of a large-scale computer database and a complex financial model, this study developed solid waste disposal rate schedules for the County. These rates had to fund (1) annual operating and maintenance costs, (2) annual closure and post-closure maintenance reserve requirements, and (3) capital expansion reserve requirements. Three different types of fees had to be developed: tipping fees (charge per ton of solid waste), per capita fees (charge per person per month), and equivalent single family residence fees (charge based on the waste stream of an ESFR and the amount of waste generated by all types of land use parcels relative to an ESFR). The proposed rates also had to cover state and local surcharges, and environmental and infrastructure surcharges. The County's solid waste capital improvement plan covered $82 million in capital projects. The rate-setting study included a review of solid waste rates in other counties and analysis of waste generation factors by land use codes. Finally, the study presented recommendations for future rate setting development.

San Bernardino Desert and Mountain Waste Management Coalition—Perform Financial Review
This project was a financial review of the San Bernardino County Solid Waste Management Enterprise Fund. This study determined total revenues to this $50 million fund for a period of six fiscal years and verified that funds were expended for appropriate operations, capital outlays, and reserves related to Enterprise Fund activities. The study also assessed adequacy of closure and post-closure reserve funds, identified and reviewed significant fixed asset acquisitions and dispositions, and reviewed rate setting processes. The study provided findings and recommendations based upon the specified financial work and procedures performed.

San Diego Solid Waste Authority—Technical Assistance for Landfill and Transfer Station Feasibility Study
NewPoint Group personnel assisted with an initial financial feasibility study for a $100 million Municipal Bond Issuance project which included sensitivity analyses of projected fixed and variable costs, five-year forecasting of revenues under various system tipping fee scenarios, regional competitor studies, and valuation analysis of landfill assets and worth. This analysis was completed prior of the entire sale of the San Diego landfill system to Allied Waste.

County of San Diego, Department of Public Works, Solid Waste Division—Management Audit and Financial Review
NewPoint Group professionals conducted a multi-year major project whose objective was to perform an integrated management audit and financial review of the Solid Waste Division. The management audit reviewed (1) operations compliance with laws, regulations, and ordinances; (2) internal organizational and operational effectiveness, efficiency, and costs, (3) contracting practices and costs, (4) North County Recycling Center operating requirements, costs, and effectiveness, and (5) County recycling program effectiveness. The financial review determined: (1) adequacy of internal controls, (2) sufficiency of operating reserves, (3) expenditures and funding requirements, (4) future landfill tipping fees, and (5) overall fund solvency. The bottom line result of this enterprise fund turnaround management consulting project was to determine the immediate need to drastically increase mixed waste tipping fees or risk financial insolvency of the $100 million a year operating cost and capital cost enterprise fund. Several additional related engagements spun off from this primary engagement. For the multiple additional related engagements we served as a financial advisor to the Enterprise Fund and provided complex financial analyses of alternative debt and no debt funding analyses, including the use of revenue bond and tipping fee funding plans. Multiple short and long-term funding plans were developed considering impacts on rate payers, system life-cycle costs, and facility reserves.

Tahoe Basin Solid Waste Joint Powers Authority (JPA)—Rate Setting Policy and Procedures Manual
NewPoint Group professionals developed a formal comprehensive solid waste rate setting process and procedures manual for the Tahoe JPA. The manual describes treatment of allowable costs and profit and established a process for submitting and reviewing rate applications.

Town of San Anselmo—Rate Review
NewPoint Group professionals performed a rate review for the Town of San Anselmo by reviewing the rate application and compiled financial statements of the franchised refuse collection hauler. We tested reported costs and revenues for reasonableness and made recommendations for a rate adjustment in this base year. The process required a thorough detailed review of the hauler’s financial accounting records, cost allocations, allowable expenses, revenue projections, and allowed profit. Because the current hauler recently purchased the franchise, we extensively analyzed the first year revenue and expense projections to set a reasonable baseline and presented results to the City Council.

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