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Procedures Performed and Findings
Landfill
1. Agree tip fees reported in the EDCO tip fee analysis from July 1, 2021 through February 28, 2023 to the underlying accounting records and supporting landfill bills by selecting three random months during that time period. We selected the months of January 2022, April 2022, and January 2023. The comparison is as follows:
TIP Fee TIP Fee per
Month per EDCO Otay Landfill Variance
January 2022 35.41 $ 35.41 $ - $
April 2022 35.41 35.41 -
January 2023 38.25 38.24 0.01
Findings:
Trivial variances noted.
2. Agree tons of refuse reported in the monthly tonnage collection schedule provided by EDCO for the period from April 1, 2021 to February 28, 2023 to the underlying accounting records and supporting disposal tickets by selecting three random months during that time period. We selected the months of January 2022, April 2022, and January 2023. The comparison is as follows:
Tonnage per Tonnage per
Monthly Monthly Detail
Month Summary Schedule Ticket Report Variance
January 2022 3,376.09 $ 3,375.88 $ 0.21 $
April 2022 3,380.25 3,380.23 0.02
January 2023 3,513.47 3,513.48 (0.01)
Findings:
Trivial variances noted.
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Procedures Performed and Findings, continued
Landfill, continued
Within the selected months, we selected 5 line items from the actual refuse tonnage schedules and agreed to the daily disposal tickets. The comparison is as follows:
Ticket No. Customer Type
Ticket
Date
Tonnage
per Ticket
Tonnage
per Report
Split Load -
% belonging to
La Mesa Variance
83263 LM COMM REFUSE 01/24/22 11.79 9.85 83.55% -
83099 LM BULKY 01/24/22 1.50 1.50 100.00% -
80360 LM RES REFUSE 01/17/22 7.64 7.63 99.86% -
75429 LM COM GREENWASTE 01/04/22 5.77 2.09 36.17% -
75011 LM RES GREENWASTE 01/03/22 7.60 0.02 0.26% -
11927 LM COMM REFUSE 04/11/22 11.75 9.56 81.39% -
14831 LM COMM REFUSE 04/18/22 7.97 5.86 73.47% -
19259 LM RES REFUSE 04/29/22 8.96 8.76 97.79% -
10616 LM RES REFUSE 04/07/22 4.10 4.10 100.00% -
70158 LM RES GREENWASTE 04/14/22 9.80 0.00 0.03% -
15040 LM COMM REFUSE 01/16/23 14.41 11.69 81.11% -
16664 LM COMM REFUSE 01/20/23 8.66 3.97 45.85% -
10303 LM RES REFUSE 01/02/23 10.96 10.95 99.90% -
20184 LM RES REFUSE 01/30/23 8.42 8.41 99.89% -
12640 LM COM GREENWASTE 01/09/23 0.48 0.48 100.00% -
Findings:
No exceptions were noted.
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Procedures Performed and Findings, continued
Landfill, continued
3. Determine the projected tons for FY 2023-2024 and FY 2024-2025 is a reasonable estimate by comparing projected tons for fiscal years 2023-2024 and 2024-2025 to actual tons from prior years. Calculate the dollar and the percent change over prior years and determine that the percent change is consistent.
Total
Fiscal Residential Mean based % change Commercial Mean based % change % change Year Tons on actual1 from Mean1 Tons on actual1 from Mean1 from PY 18-19 12,065 12,401 -2.71% 22,762 22,238 2.36% 0.86%
19-20 A 12,401 13,269 7.00%A 22,238 21,530 -3.18% -0.08% 20-21 A 12,401 14,236 14.79%A 22,238 20,594 -7.39% 0.09% 21-22 A 12,401 13,191 6.37%A 22,238 20,888 -6.07% -2.16% 22-23 A 12,401 12,775 3.01%A 22,238 20,766 -6.62% -1.58% 23-24 (estimate) A 12,401 12,800 3.22%A 22,238 20,700 -6.92% -0.12% 24-25 (estimate) A 12,401 12,800 3.22%A 22,238 20,700 -6.92% 0.00% Fiscal Residential Change from % change Commercial Change from % change Year Tons PY (tons) from PY Tons PY (tons) from PY
18-19 12,065 (39) -0.32% 22,762 337 1.50%
19-20 13,269 1,204 9.98% 21,530 (1,233) -5.42%
20-21 14,236 966 7.28% 20,594 (935) -4.34%
21-22 13,191 (1,045) -7.34% 20,888 294 1.43%
22-23 12,775 (416) -3.16% 20,766 (122) -0.58%
23-24 (estimate) 12,800 25 0.20% 20,700 (66) -0.32%
24-25 (estimate) 12,800 - 0.00% 20,700 - 0.00%
Avg. tonnage change per year since FY 08-092 : (55.48) (250.12) Avg. percentage change per year since FY 08-092 : -0.3% -1.1% 2 Only the last five years are presented.
1 Mean calculations are based on information from fiscal year 2008 though 2023. Only the last five years are presented in the schedule.
Findings:
No exceptions were noted.
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Procedures Performed and Findings, continued
Recycling
4. Agree total tons of recyclable materials sold during FY 2021-2022 and FY 2022-2023 in the schedule provided by EDCO to EDCO’s monthly summary of recyclable sales provided for that period. From the schedule provided, randomly select three daily recyclable totals and agree selected detail behind those totals to supporting work tickets.
We selected the months of January 2022, April 2022, and January 2023. The comparison is as follows:
Tons per Sales per
EDCO Schedule Tons per EDCO Schedule Sales per
of Monthly Recycling of Monthly Recycling
Recyclable Tonnage Recyclable Tonnage
Month Sales Report Variance Sales Report Variance
January 2022 332.67 332.66 0.01 32,841.14 $ 32,840.98 $ 0.16 $ April 2022 300.20 300.21 (0.01) 32,657.85 32,657.85 -
January 2023 289.75 289.75 - 19,505.14 19,505.14 -
Findings:
Trivial variances noted.
Within the selected months, we selected 3 line items from the scale ticket report and agreed to the scale ticket. The comparison is as follows:
Ticket Ticket Net Weight Net Weight
No. Date per Report per Scale Ticket Variance
1406603 01/06/22 338.00 338.40 (0.40)
1409649 01/17/22 193.00 193.20 (0.20)
1412754 01/27/22 6,980.00 6,980.00 -
1432233 04/05/22 11,700.00 11,700.00 -
1434942 04/14/22 8,428.00 8,428.00 -
1438885 04/29/22 6,960.00 6,960.00 -
1509378 01/02/23 10,370.00 10,370.00 -
1513573 01/17/23 8,030.00 8,030.01 (0.01)
1517200 01/31/23 9,200.00 9,200.00 -
Findings:
Rounding variance, scale ticket report does not report decimals.
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Procedures Performed and Findings, continued
Recycling, continued
5. Determine whether the projected recycle sales for FY 2023-2024 and FY 2024-2025 is a reasonable amount given actual revenue generated during prior years FY 2021-2022 and FY 2022-2023. The comparison is as follows:
Total Total
Fiscal % Change Mixed % Change % Change Recyclable $ Change % Change Year ONP from PY Paper from PY Other from PY Revenues from PY from PY 18-19 (2,411) $ -102.9% (2,200) $ -112.6% 208,447 $ -0.6% 203,836 $ (106,401) $ -34.3% 19-20 (7,983) 231.1% (10,002) 354.6% 208,690 0.1% 190,705 (13,131) -6.4% 20-21 13,958 -274.8% 27,202 -372.0% 320,345 53.5% 361,505 170,800 89.6% 21-22 27,377 96.1% 54,494 100.3% 389,683 21.6% 471,554 110,049 30.4% 22-23 (annualized) 2,330 -91.5% 5,655 -89.6% 269,025 -31.0% 277,010 (194,544) -41.3% 23-24 (estimate) 2,000 -14.2% 5,000 -11.6% 250,000 -7.1% 257,000 (20,010) -7.2% 24-25 (estimate) 2,000 0.0% 5,000 0.0% 250,000 0.0% 257,000 - 0.0% Average $ change per year since FY 08-091 : (25,106) $
Average % change per year since FY 08-091 : -1.7%
1 Only the last five years are presented.
Findings:
No exceptions were noted.
Organics
6. Determine whether the actual and projected tons for FY 21 - FY 25 are reasonable by randomly selecting three months during July 1, 2021 through February 28, 2023. We selected the months of January 2022, April 2022, and January 2023. The comparison is as follows:
Green Tonnage Tonnage per
Per Monthly Monthly Detail
Month Summary Schedule Ticket Report Variance
January 2022 537.35 $ 537.24 $ 0.11 $
April 2022 640.46 640.46 0.00
January 2023 499.23 499.23 0.00
Findings:
Trivial variances were noted.
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Procedures Performed and Findings, continued
Organics, continued
In addition, we assured projections are consistent with historical data. The comparison is as follows:
Total
Fiscal Residential Mean based % change % change
Year Tons on actual1 from Mean1 from PY
18-19 6,097 6,014 1.38% 12.23%
19-20 7,834 6,014 30.27% 28.50%
20-21 7,304 6,014 21.46% -6.76%
21-22 6,654 6,014 10.65% -8.90%
22-23 6,689 6,014 11.23% 0.53%
23-24 (estimate) 7,150 6,014 18.89% -2.11%
24-25 (estimate) 7,150 6,014 18.89% 0.00%
Fiscal Green Change from
Year Tons PY (tons) % Change
18-19 6,097 664 12.23%
19-20 7,834 1,738 28.50%
20-21 7,304 (530) -6.76%
21-22 6,654 (650) -8.90%
22-23 6,689 35 0.53%
23-24 (estimate) 7,150 461 6.31%
24-25 (estimate) 7,150 - 0.00%
Avg. tonnage change per year since FY 08-092
: 48.31
Avg. percentage change per year since FY 08-092
: 1.1%
2 Only the last five years are presented.
1 Mean calculations are based on information from fiscal year 2008 though 2023. Only the last five years are presented in the schedule.
Findings:
No exceptions were noted.
Miscellaneous
7. Review the percentages and the mathematical accuracy of the rate sheets used in the 2022-2023 Refuse Rate Analysis provided by EDCO.
We reviewed the mathematical accuracy of the rate sheets provided by EDCO and performed mathematical recalculations and verifications of source numbers.
Findings:
No exceptions were noted.
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Procedures Performed and Findings, continued
Miscellaneous, continued
8. Review EDCO’s application of the actual and the estimated CPI to the transportation component of the tip fee. Agree actual CPI for FY 2020/2021 and FY 2021/2022 is applied in accordance with the CPI index used historically by EDCO.
Findings:
No exceptions were noted.
9. Recalculate franchise fees EDCO paid to the City of La Mesa for the period from April 1, 2021 to February 28, 2023 and verify that the remittance amount is equal to 4 percent of all gross sums collected by EDCO within the City of La Mesa by selecting three random months within that time period. We selected the months of January 2022, April 2022, and January 2023. The comparison is as follows:
Net Receipts Recalculated Franchise Fees
Gross Less: AB 939 Subject to Franchise Fees Remitted to Month Receipts* Charges Franchise Fees (4% of net receipts) the City Variance January 2022 1,055,521.10 $ 40,183.72 $ 1,015,337.38 $ 40,613.50 $ 40,613.49 $ 0.01 $ April 2022 1,077,767.57 40,514.30 1,037,253.27 41,490.13 41,490.14 (0.01) January 2023 1,257,983.26 47,179.59 1,210,803.67 48,432.15 48,432.15 - * Gross receipts are net of exempt recycle and adjustments Per EDCO Franchise Fee Calculation
Findings:
Trivial variances noted.
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Procedures Performed and Findings, continued
Miscellaneous, continued
10. Verify transfer station revenue amounts used to calculate participation rent remitted to the City of La Mesa. Agree to supporting cash receipts on a random selection basis. We selected the months of January 2022, April 2022, and February 2023. The comparison is as follows:
Tons per Tons per Gross Revenues Gross Revenues
EDCO Station Transfer Station per EDCO Station per EDCO Station Participation Revenue and Participation Revenue and
Rent Calculation Tonnage Rent Calculation Tonnage
Month Worksheet Summary Variance Worksheet Summary Variance January 2022 34,068.50 34,068.50 - 2,571,485.85 $ 2,571,485.85 $ - $ April 2022 34,370.05 34,370.05 - 2,596,698.24 2,596,698.24 - February 2023 31,539.97 31,539.97 - 2,598,895.69 2,598,895.69 - Findings:
No exceptions were noted.
11. Obtain solid waste rate survey of San Diego County and compare franchise city rates for residential and commercial customers to other agencies in the county.
See Exhibit A.
Findings:
No exceptions were noted.
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EXHIBIT A: San Diego County Franchise City Rates Proposed July 1, 2023 Current/ Current/
Proposed Effective Proposed Effective
City Rate Date City Rate Date
National City 25.32 $ Proposed 7/1/23 La Mesa1 $ Proposed 7/1/23 122.94 El Cajon 26.90 Effective 1/1/23 Encinitas 126.47 Proposed 7/1/23 Coronado 27.48 Proposed 7/1/23 Escondido 128.29 Effective 1/1/23 La Mesa1 Proposed 7/1/23 Solana Beach 130.02 27.53 Proposed 7/1/23 Escondido 28.66 Effective 1/1/23 Lemon Grove 131.29 Proposed 7/1/23 Lemon Grove 29.80 Proposed 7/1/23 Coronado 135.43 Proposed 7/1/23 Solana Beach 29.80 Proposed 7/1/23 Poway 135.84 Proposed 7/1/23 Encinitas 29.93 Proposed 7/1/23 National City 141.63 Proposed 7/1/23 Poway 30.06 Proposed 7/1/23 San Marcos 142.69 Proposed 7/1/23 Santee 30.29 Effective 1/1/23 Del Mar 144.40 Proposed 7/1/23 San Marcos 31.36 Proposed 7/1/23 Oceanside 166.15 Effective 1/1/24 Del Mar 31.94 Proposed 7/1/23 Vista 167.62 Proposed 7/1/23 Oceanside 32.09 Effective 1/1/24 Santee 175.51 Effective 1/1/23 Vista 34.46 Proposed 7/1/23 Imperial Beach 197.51 Proposed 7/1/23 Imperial Beach 41.38 Proposed 7/1/23 El Cajon 249.85 Effective 1/1/23 Carlsbad2 Effective 7/1/22 Carlsbad 28.02 2 Effective 7/1/22 135.89 Chula Vista2 Effective 7/1/22 Chula Vista 32.27 2 Effective 7/1/22 138.44 County Average 30.43 $ County Average 151.17 $
High 41.38 $ High 249.85 $
Median 29.93 Median 138.44
Low 25.32 Low 122.94
1 2-year fixed rate
2 Unable to obtain 2023 rate
Residential Commercial