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In Oregon, most jurisdictions have exclusive franchises for garbage collection. This means that the city or county allows only one company to pick up garbage in a specific geographic area. Some large cities have multiple areas that they franchise to different collection companies. In return for the exclusive right to pick up garbage, the garbage company has the rates it charges be set by the city or county. In addition, the garbage company must also provide recycling service and often yard debris collection service to their customers, must pay a franchise fee to the city or county, and sometimes must provide extra services such as provide free collection of garbage from city buildings or parks. The city regulates the rates that the garbage company can charge to their customers, but that rate is required by law to be high enough to pay for all the services and fees required. I do not have information on the specific amounts that cities charge as franchise fees, but I think it is often on the order of 5% of gross receipts. Some cities such as Portland put virtually all of this back into their solid waste and related programs, but some cities do use this franchise fee as just general revenue that can be spent on unrelated services. Peter Spendelow Oregon Department of Environmental Quality |
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