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FROM STEUE ANDERSON PHONE NO: : 909 e24 6514 Oct. 01 1997 12:33PM P3 <br />OCREGISTER.COM: Cities to audit trash hauler Page 2 of 2 <br />fees) in the county." <br />Public Financial Management, a consultant hired by <br />Yorba Linda, recommended in 1995 that the city hire an <br />auditor to review Taormina's charges. <br />` The city may want to review Yorba Linda Disposal's <br />charges for Taormina Industries -affiliated subsidiaries <br />such as the material recovery facility to determine <br />whether Taormina Industries is making a 'double' profit <br />on these components, i.e, charging the city an operating <br />fee for these services or charging rental fees that reflect <br />a profit, then earning a profit margin under the Yorba <br />Linda Franchise Agreement for these costs," PFM said <br />in its report. <br />Neitlier Yorba Linda City Manager Art Simonian nor his <br />assistant, David A. Gruchow, responded to requests for <br />comment. <br />According to an independent auditor's report filed with <br />the Securities and Exchange Commission earlier this <br />year, Taormina grossed more than $78 million'in both <br />1995 and 1996, retained $21 million in earnings each <br />year, and declared after-tax profits of $3.8 million in <br />1996 and $8.7 million in 1995. <br />M <br />