AUDIT COMMITTEE SUMMARY
May 31, 2016
Audit of the Solid Waste Management Department’s
Recycling Contract and Program
Report Issued December 16, 2015
Background
As part of the Solid Waste Management Department’s (SWMD) mission to protect the public health and safety of the City, they strive to provide recycling services that are safe, efficient, cost effective, and environmentally responsible.
In June 2013, the City awarded a ten year contract to River Recycling LLC (doing business as ReCommunity) to provide recycling processing services. The contract states estimated net revenue of $11.5 million to the Solid Waste Operating and Maintenance Fund for the ten year contract period, commencing on August 1, 2014. The City pays a processing fee for all materials delivered by SWMD to ReCommunity’s facility while receiving a share of the revenue that ReCommunity receives from selling the recycling commodities. For fiscal year 2015, actual net revenue was approximately $585,000.
Audit Objective
Determine if key components of the City’s recycling program are accurately monitored, supported, and in compliance with the ReCommunity contract terms.
Audit Scope & Methodology
The audit scope included SWMD’s recycling and resource recovery goals and strategies for the Recycling Program from fiscal year 2013 through September 2015. The scope also included monitoring of contract requirements between the City and ReCommunity Recycling.
Our methodology consisted of conducting interviews and walkthroughs with key personnel. We also reviewed SWMD’s department goals and strategies as stated in the 10 Year Recycling and Resource Recovery Plan for Residential and Commercial Services that served as testing criteria.
We also reviewed the recycling container inspection process, SWMD waste characterization audits and education efforts provided to residents to assist in lowering contamination rates.
Audit Conclusions
The City’s recycling program is accurately monitored, supported, and in compliance with the ReCommunity contract terms. Additionally, they have monitoring controls in place to track progress toward reaching their 10 year recycling and resource recovery goals.
No recommendations were made for this audit.