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HomeMy WebLinkAboutMINUTES - 08071990 - 2.2 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on August 7, 1990 , by the following vote: AYES: Supervisors Powers, Schroder, McPeak, Torlakson, Fanden NOES: None ABSENT: None ABSTAIN: None ------------------------------------------------------------=----- ------------------------------------------------------------------ SUBJECT: Acme Landfill Post-Closure Costs The Board received the attached report dated August 7, 1990 from Sara Hoffman, Solid Waste Manager, recommending certain actions relative to the closure of the Acme Landfill. Kenton Alm, legal counsel for Central Contra Costa Sanitary District, expressed concern about the proposed agreement to pledge revenue from County regulated transfer stations and/or landfills for post-closure costs for the Acme Landfill. He urged that the Board not take action today but instead request staff to further review the matter to determine whether or not the agreement is in the best interests of the rate payers. Supervisor Tom Torlakson noted that the upcoming closure of the Antioch Landfill will present the same type of problems relative to closure costs. He requested that a report on the status of the Antioch Landfill closure be provided to the Board as soon as possible. Board members being in agreement, IT IS ORDERED that the following actions are APPROVED: 1. APPROVED in concept an agreement with Acme Landfill to pledge revenue for postclosure costs, and REFERRED the matter to the Internal Operations Committee (Supervisors Sunne McPeak and Tom Powers) for review and recommendation to the Board; and 2. REQUESTED Community Development Director to provide a report on the status of the Antioch Landfill closure by August 21, 1990. cc: Internal Operations Committee C. Van Marter, CAO I hereby cerdfy that this is a trw and correct copy of Community Development Director an action taken and entered on the minutes of the Solid Waste Manager Board of Supervisors on the data shown. ATTESTED: I9 90 PHIL BATC OF9,Clerk of the Board of Supervisors and County Administrator By � J Deputy . TO: BOARD OF SUPERVISORS .!r � 'j-. Contra FROM: Costa Sara Hoffman m, Solid Waste Manager '�;rrq. :_4 •. Cod / DATE: August 7, 1990 SUBJECT: Pledge of Revenue for Acme Landfill Postclosure Costs SPECIFIC REQUEST(S) OR RECOMMENDATIONS(S) & BACKGROUND AND JUSTIFICATI RECOMMENDATIONS 1. Authorize the Chair to sign an agreement with Acme Landfill in which the County agrees to pledge revenue from County regulated transfer stations and/or landfills for postclosure costs for the Acme Landfill in order to satisfy state and federal financial assurance requirements. : The agreement shall become operative upon (1) completion of all closure activities by Acme Landfill to the satisfaction of the regulatory agencies; (2) deposit by Acme with the County of a sum of money equal to all postclosure costs attributable to .the: presence of hazardous materials at the landfill; and (3) ,assignment of a deed of development rights to at least 45.7% of Acme Landfill by Acme to the County. 2 . Following authorization by Acme for release of community fair share allocations by Deloitte & Touche and consultation with the cities and other franchising agencies, direct staff to develop a rate component at County, regulated solid waste facilities that assesses historic users of Acme Landfill their fair share cost of unfunded non-hazardous related postclosure maintenance costs over 10 years and to present the rate component to the Board at the next and subsequent rate reviews of the Acme Interim Transfer Station and other facilities, as appropriate. 3 . Direct staff to work with the California Integrated Waste Management Board, State Department of Health Services and EPA to develop a mutually agreeable pledge of revenue or equivalent that would satisfy Acme's financial assurance requirements for postclosure maintenance of the Acme Landfill. CONTINUED ON ATTACBNENT: YES SIGNATUR�CY RECON94ENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOAV,, OMMITTE APPROVE OTHER SIGNATURE(S) : ION OF BOARD ON APPROVED AS RECO14MENiDED OTHER VOTE OF SUPER RS I HEREBY CERTIFY THAT THIS IS A UNANIMOUS (ABSENT TRUE AND CORRECT COPY OF AN AYES: ACTION TAKEN AND ENTERED ON THE ABSENT: ABSTAI MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. cc: Community Development ATTESTED County Administrator PHIL BATCHELOR, CLERK OF County Counsel THE BOARD OF SUPERVISORS Acme Landfill (CDD) AND COUNTY ADMINISTRATOR Deloitte & Touche (CDD) Historic community users of Acme BY , DEPUTY h12/acme.bos r � � 4 . Direct staff to establish an enterprise, trust or other fund equivalent for the purpose of holding all monies and accrued interest received by the County for postclosure of Acme Landfill. FINANCIAL 13WACT None to the County. The pledge of revenue will be dedicated to postclosure maintenance activities at the Acme Landfill. REASONS FOR RECOMMENDATION/BACKGROUND In .August 1989, the Board of Supervisors received and approved a report from Deloitte & Touche which found that Acme Landfill does not have sufficient resources to handle closure and postclosure maintenance activities for . the Acme Landfill in accordance with state regulations. Deloitte & Touche found that Acme had not made unreasonable profits over the life of the landfill, but were actually somewhat, below industry norms and that underfunding was primarily due to the short time frame between development of the regulations and closure of the landfill. Deloitte & Touche then examined records of the landfill to determine historic users of the landfill. From this data, a "fair share allocation" was developed by community. It was then adjusted for recent payments towards closure and postclosure. In November 1989, the Board received and approved the assessment methodology and further adopted the following policies: 1. Fund the unfunded municipal solid waste closure and postclosure costs over a ten year period through the interim transfer station and other County regulated landfills and transfer stations as required: 2 . Assess gate customers separately from municipal solid waste customers. 3 . Require Acme to fund the unfunded hazardous closure and postclosure costs to the extent possible. 4. Explore alternatives for the County to receive beneficial uses of the landfill land based on closure contributions. Since November, Deloitte & Touche has made adjustments to the historic use analysis based on discussions with local haulers. This analysis is ready for presentation to the Board and cities (pending release by Acme in accordance with the confidentiality agreement)-. Both state and federal law require that all financial assurances be in place prior to approval of a closure plan for the landfill. Under state law, the County can pledge revenue for postclosure maintenance activities by dedicating revenue from county regulated transfer stations or landfills. Under federal regulations (EPA has delegated responsibility to the State Department of Health Services, although federal regulations need to be satisfied. ) , the EPA Regional Administrator and the Director of the Department of Health Services have the authority to approve alternative financial assurance mechanisms. Numerous meetings have been held with representatives of the cities and sanitary districts that would be affected by the postclosure pledge of revenue agreement. A primary concern expressed has been the fair share allocation to each community. Staff will schedule another meeting with the cities as soon as Acme releases the data for distribution. Obviously, this release must occur prior to developing a postclosure rate component for the interim transfer station.