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HFH CONSULTANTS LLC <br />Ms. Jennifer Auletta <br />April 29, 2015 <br />Page 8 of 14 <br />Table 5: <br />Sorter Hourly Rate and Benefits <br />Managing Tomorrow's Resources Today <br />Allocations of Costs Based on Tons Processed <br />We noted ACI allocated the additional labor costs only to the three jurisdictions that have franchise <br />agreements with either ACI or its related affiliated company Livermore Sanitation Inc. The three <br />jurisdictions are San Leandro, Alameda, and Livermore. Upon review of the total tons processed, it was <br />noted another related company (Mission Trails) brought material to the ACI MRF for processing. Table 6 <br />shows the tons processed at ACI for the 12 months ended June 30, 2014: <br />Table 6: <br />Summary of Tons Processed at the ACI MRF <br />City of San Leandro <br />7,285 <br />17.5% <br />21.2% <br />City of Alameda <br />10,683 <br />25.6% <br />31.1% <br />City of Livermore <br />16,359 <br />39.3% <br />47.7% <br />Mission Trails <br />7,329 <br />17.6% <br />0.0% <br />Total <br />41.656 <br />100.0% <br />100.0% <br />We understand ACI does not charge Mission Trails a processing fee nor does Mission Trails share in the <br />commodity revenues. ACI has indicated that commodity revenues from the Mission Trails tonnage <br />offsets the cost to process their tonnage. <br />Financial Outlook for ACI <br />HF&H reviewed the Audited Financial Statements for the years ending June 30th 2012, 2013 and 2014 <br />provided by ACI to calculate the following key financial ratios: current ratio (current assets relative to <br />current liabilities), quick ratio (cash and accounts receivable relative to current liabilities), working <br />capital (current assets less current liabilities), debt to equity, current debt to worth, return on assets and <br />profit margin. <br />