15 - CR&R Environmental Servcies Performance AuditProtecting our community's health and the environment by providing solid waste and sewer collection services. www.cmsdca.gov Costa Mesa Sanitary District ….an Independent Special District Memorandum T o: Board of Directors Via: Scott Carroll, General Manager From: Javier Ochiqui, Management Analyst Date: February 2 7 , 2013 Subject: C R&R Environmental Services Performance Audit Summary On November 15, 2012, the Board of Directors authorized the General Manager to proceed soliciting an RFP for auditing services of CR&R Environmental Services. On January 7, 2013, the three (3) bids wer e received. Below is a list of all bidders and their cost proposal : 1. Michael Balliet Consulting – $21,000 2. R3 Consulting Group, Inc. - $24,940 3. HF&H Consultants, LLC. – $28,000 Staff Recommendation 1. That the Board of Directors receive and file this r eport. 2. Approve budget adjustment in the amount of $21,000 to provide adequate funding for the audit. Analysis Two separate CMSD s taff me mbers reviewed and analyzed all three (3) bids with the following “Best Value” criteria in mind: Cost Responsiveness to RFP Qualifications and Experience References/Previous Performance Ability to Provide Service
Board of Directors February 2 7 , 201 3 Page 2 of 3 Timeline Based on the criteria mentioned above, staff determined that Michael Balliet Consulting’s proposal is considered “Best Value”. As per Section 4.04.070 (b) of the District’s Operations Code, the general manager awarded the “Best Value” proposal to Michael Balliet Consulting. The District will enter into an agreement with Michael Balliet Consulting where the general manager will sign said agreement on the District’s behalf, as per Section 4.04.140 of the Operations Code. The audit will begin in March 2013. The audit is anticipated to take twenty -five days to complete at which time, staff and the consultant will present the findings to the Board o f Directors in May 2013. In order to provide adequate funding for the completion of the Solid Waste Performance Audit, the following budget adjustment is required. Solid Waste Fund Account Account Number Increase Decrease Professional Services 10 -10000 0 -4200 $21,000 Retained Earnings 10 -000000 -29 00 $21,000 Strategic Plan Element & Goal This item complies the with objective and strategy of Strategic Element 2.0, Solid Waste, which states: “Objective: Our objective is to manage the collection and r ecycling of residential trash in the most economical and environmentally friendly way.” “Strategy : We will do this by looking for ways to improve efficiencies, achieve high customer satisfaction, and considering prudent new recycling methods.” Legal Revi ew Not at this time; however, Associate District Counsel will review and approve the agreement with Michael Balliet Consulting before it is fully executed. Financial Review Awarding a contract with Michael Balliet Consulting will cost $21,000 . This expen se is not budgeted, so funds will need to be appropriated from the Solid Waste Fund Balance. However, according to the terms of the Agreement with CR&R, this expense will be reimbursed from CR&R and therefore funds will be deposited back into the Solid Wa ste Fund Balance.
Board of Directors February 2 7 , 201 3 Page 3 of 3 Committee Recommendation On January 15, 2013 the Operations Committee received an oral report from staff about the proposals. Staff indicated to the committee that the proposals were being reviewed and the findings will be brought ba ck on February 19, 2013. However, staff did not complete its review of the proposals on time and therefore staff’s findings were not presented to the committee. Public Notice Process Copies of this report are on file and will be included with the entire agenda packet for the February 27 , 201 3 regular Board of Directors meeting at District Headquarters and on District’s website. Alternative Actions 1. Direct the general manager to award the proposal and execute an agreement with R3 Consulting Group. 2. D irect the general manager to award the proposal and execute an agreement with HF&H Consultants, LLC Reviewed by: Marc Davis District Treasurer/Interim Accounting Manager