Agenda

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Consent-Community Services # 40.

Board of Supervisors

Meeting Date:	12/17/2019
Brief Title: Waste Disposal Agreement
From:	Taro Echiburu, Director, Community Services
Staff Contact:	Ramin Yazdani, Director, Division of Integrated Waste Management, x8848
Supervisorial District Impact:

Subject

Approve agreement with Atlas Disposal Incorporated, Inc. for waste disposal at the Yolo County Central Landfill for a term from December 17, 2019 through June 30, 2022. (General fund revenue annually $31,000; Sanitation fund revenue annually $475,000) (Echiburu/Yazdani)

Recommended Action

Approve agreement with Atlas Disposal Incorporated, Inc. for waste disposal at the Yolo County Central Landfill from December 17, 2019 through June 30, 2022; and
Authorize the Chair of the Board of Supervisors to sign the agreement.

Strategic Plan Goal(s)

Operational Excellence

Reason for Recommended Action/Background

The agreement will bring additional revenue to the landfill and County’s general fund, and help stabilize garbage tipping fee rates to cities within Yolo County. The recommended action is based on the direction from the Board of Supervisors to secure additional waste as part of the Division of Integrated Waste Management’s operations plan.

On June 10, 2008, the Board of Supervisors approved the first waste agreement with Atlas Disposal for disposal of out-of-county waste at the Yolo County landfill. The agreement was approved because contracting for additional waste helps to ensure that the landfill meets the CalRecycle’s and Central Valley Regional Water Quality Control Board’s (CVRWQCB’s) targeted closure date for the landfill's unlined waste cells, reduces the cities’ and Yolo County’s exposure for unfunded liability if CalRecycle required the county to close unlined landfill cells prior to reaching capacity, and provides tipping fee rate stabilization for Yolo County residents and businesses.

With the impending closure of the last remaining unlined cells (Waste Management units 4 and 5) in 2020, out-of-county waste disposal agreements serve to provide increased revenue and rate stabilization for all landfill customers. Additionally, the revenue from the Atlas Disposal agreement is a key portion of the recently approved bond financing for current and upcoming capital projects at the landfill.

Since 2008, agreements with Atlas Disposal have brought in approximately 300,000 tons of waste, representing nearly $9 million in gross revenue. Prior agreements provided for reduced disposal rates between approximately $24 to $37 per ton. Included in this rate was a $6 per ton “host” fee with 50 percent going to the general fund and 50 percent split among the cities (Davis, Woodland, West Sacramento, and Winters). The discounted rates were appropriate to facilitate the expedited filling and closure of the unlined cells at the landfill.

With the closure of the last remaining unlined cells, such a reduced disposal rate is not warranted. The attached agreement utilizes the same disposal rate paid as part of the various cities waste disposal agreements. Currently, this rate is $51.88 per ton. Of this rate, $6 per ton will continue to be split among the general fund and cities. Based on the contract minimum disposal, staff estimates the general fund will receive a minimum of $31,000 annually and cities mentioned above will also receive host fees (total of $31,000 split among cities based on their respective disposed tonnage).

Collaborations (including Board advisory groups and external partner agencies)

County Counsel has approve the agreement as to form.

Competitive Bid Process

Not Applicable.

Fiscal Impact

Fiscal Impact (Expenditure)
Fiscal impact (see budgetary detail below)
Total cost of recommended action:		$
Amount budgeted for expenditure:		$
Additional expenditure authority needed:		$
On-going commitment (annual cost):	$

Source of Funds for this Expenditure

Explanation (Expenditure and/or Revenue)

Further explanation as needed:

The estimated annual minimum revenue value of the Atlas Disposal Industries import waste agreement is approximately $540,000. This revenue will be distributed as follows, $478,000 for the sanitation enterprise fund, $31,000 in revenue for the county’s general fund, and $31,000 to be divided between the cities that have waste stream agreements with the Yolo County Central Landfill and the Division of Integrated Waste Management.

Attachments
Att. A. Agreement

Form Review

Inbox	Reviewed By	Date
Financial Services	mqader	12/06/2019 02:03 PM
County Counsel	Hope Welton	12/09/2019 12:32 PM
Casey Liebler	Casey Liebler	12/09/2019 01:28 PM
Form Started By: Jeff Kieffer		Started On: 12/01/2019 09:18 AM
Final Approval Date: 12/09/2019