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Consent-Community Services # 37.
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| Board of Supervisors |
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| Subject |
| Adopt three resolutions and approve agreement modifying the closure and post closure financial assurances for the landfill. (No general fund impact) (Echiburu/Kieffer) |
| Recommended Action |
- Adopt three resolutions and one agreement modifying the closure and post closure financial assurances for the landfill; and
- Authorize the Chair of the Board of Supervisors to sign the resolutions and agreement.
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| Strategic Plan Goal(s) |
Operational Excellence
Sustainable Environment |
| Reason for Recommended Action/Background |
Title 27, California Code of Regulations requires all landfills to establish financial assurances for closure and post closure maintenance. The purpose of these regulations is to ensure adequate money is available to close and maintain a landfill. Numerous different mechanisms are available to landfill owners, including trust funds, bonds and revenue pledges.
The existing landfill closure and post closure maintenance trust fund was established in 1988 and was set up to cover the entire landfill. Through annual deposits and interest earned, the existing fund balance is approximately $17 million. Unfortunately, the regulations stipulate that funds can only be withdrawn from this fund once the entire landfill closes or the fund balance exceeds the cost to close the entire landfill. Currently the cost to perform closure and post closure maintenance of the entire landfill (including the undeveloped portions) is approximately $82 million.
Waste Management Units 4 and 5 (WMU 4-5) must be closed this year and Division staff discussed any available options with CalRecycle to access the money that the division has already set aside to fund this project. CalRecycle staff indicated that the only available option would be to create separate funds for the different areas of the landfill. To do this, the WMU 4-5 fund would need to be funded with the remaining funds being retained for closure of the remaining units at the landfill (WMU 6 and 7). Additionally, an alternate mechanism should be utilized for post closure maintenance to ensure adequate funds were available for each of the closure funds.
Historically, the landfill has used a trust fund for post closure maintenance, however many public agencies, including local counties such as Sacramento, El Dorado, Placer, Monterey and San Joaquin, utilize a mechanism called a "pledge of revenue". Many different forms of revenue can be pledged, from tipping fees at another owned facility that will remain open to tax revenue. In this case, the division is proposing to pledge revenue from the landfill's liquid waste program which has grown rapidly to serve the regions septic and hard to handle wastewater disposal needs. Following closure of the solid waste portion of the landfill, the infrastructure to operate the landfill's liquid waste program will still need to be maintained as the landfill will still be generating leachate (water that has drained through waste). By continuing to operate this program and generate revenue, the division will ensure adequate funds are available to maintain the closed landfill.
Division staff worked closely with CalRecycle and the Department of Financial Services on the development of the attached resolutions and agreement to ensure they meet the requirements of the regulations. Following Board approval of the resolutions, they will be transmitted to CalRecycle for final signature. Once approved by CalRecycle, the newly created WMU 4&5 Closure Fund will be available to fund construction of this project. |
| Collaborations (including Board advisory groups and external partner agencies) |
CalRecycle assisted in the development of these resolutions and County Counsel has approved them as to form.
Division staff have worked closely with the Department of Financial Services on this process. |
| Competitive Bid Process |
| NA |
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