8I Consent 2015 0518 - Laserfiche WebLink

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Managing Tomorrow's Resources Today Ms. Jennifer Auletta April 29, 2015 Page 2 of 14 The City approved an 11`" Amendment to the Agreement which included a 4.01% annual rate adjustment, effective February 1, 2015, and an advance was made of $1,109,706.74 to ACI from General Fund Reserves with simple interest at 2.5% per annum to be repaid in quarterly installments. The advance will be repaid through the term of the contract with a 2.14% rate increase effective July 1, 2015. ACI submitted its request for annual rate adjustment for 2015 on March 20, 2015 in accordance with Section 6.2 of the Agreement. Additionally, ACI is requesting a special adjustment (Section 6.4 of the Agreement) related to a significant change in MRF labor costs. The City of San Leandro engaged HF&H to review ACI's Refuse Rate Index (RRI) request and special rate request for accuracy and reasonableness. II. SCOPE OF WORK AND LIMITATIONS Scope of Work Task 1 — Project Initiation HF&H met with the City of San Leandro to gain a full understanding of ACI's franchise collection rates to be effective July 1, 2015 to address the following items: Task 2 — Review the Annual Refuse Rate Index (RRI) Adjustment HF&H performed the following steps: • Reviewed the 2015 RRI rate adjustment request submitted by ACI for logical consistency and mathematical accuracy. • Requested and reviewed several of the prior year's RRI rate adjustments and compare the cost categories for each major expense component for reasonableness and consistency. • Additionally, we will request supporting documentation from ACI for tonnage data and commodity revenues in order to evaluate the revenue sharing and other allocations between the various ACI entities serving other agencies (Livermore and Alameda) Since ACI had not met its debt covenants there was no revenue share to consider for the 2015 rate adjustment.