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El Dorado County (the County) contracts, through franchise agreements,
with seven franchise companies ("Companies")
to serve distinct geographical areas within the boundaries of the
County. The Countys Environmental Management Department oversees
these contracts on behalf of the Countys Board of Supervisors.
The services provided through these contracts include solid waste
collection, recycling and transfer station services. The County
collects 5% of gross annual revenues from these franchise companies
as franchise fees.
Rates are set by the Countys Board of Supervisors. Each franchise
agreement includes information on rate setting mechanisms. In addition,
the County Board of Supervisors has approved two Solid Waste Rate
Setting Policies and Procedures Manuals (Rate Manual) addressing
rate setting mechanisms for certain solid waste franchises in the
two distinct regions of the County: the Tahoe Basin and the West
Slope.
While each franchise is required by Agreement to undertake an independent
audit each year, the County has not contracted for an independent
audit of these franchises, nor for an independent review of their
rate increase requests, since 1991. Rate increase requests from
several of the franchise companies are currently pending. The County
is currently making arrangements with a consultant to conduct a
rate audit of the franchise companies. The focus of this consultant
contract will be on those companies who have requested a rate increase,
their affiliates, and any other of the franchise companies as necessary
to complete the analysis of those companies requesting the increase.
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