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1 ,t^p.ste Mq/vgGF^^2 Del Norte Solid Waste Mana gement Authority Z o 1700 State Street, Crescent City, CA Phone (707) Fax (707) STAFF REPORT Date: 3 September 2008 To: Del Norte County Board of upervisors From : Kevin Hendrick, Director -^ ^-. Tedd Ward, M.S. - Program Manager Del Norte Solid Waste Management Auth rity Subject: Pledge of Revenue Resolution to cover Post-Closure Maintenance Expenses for the Crescent City Landfill using a portion of gate receipts from the Del Norte County Transfer Station Summary / Recommendation : That the Board take both of the following actions: 1. Adopt the attached Resolution 2008-_, entitled "A RESOLUTION OF THE DEL NORTE COUNTY BOARD OF SUPERVISORS REGARDING A PLEDGE OF REVENUE AGREEMENT ESTABLISHING FINANCIAL ASSURANCE FOR POST-CLOSURE MAINTENANCE OF THE CRESCENT CITY LANDFILL" 2. Authorize appropriate signatures on the Resolution as well as the attached Pledge of Revenue Agreement. Background : The Crescent City Landfill as a public facility is administered by the Del Norte Solid Waste Management Authority, though the property is owned by the County of Del Norte. The facility was closed to the public in March 2005, and phased closure construction was completed in February Under Federal law, both the Authority and the County are required to demonstrate and assure that finances are available and reserved for the projected post-closure maintenance expenses for at least the duration of a 30-year post-closure maintenance eriod wfrich-witl-lastunt l-fei raery The Crescent City Landfill Closure Plan describes how the Author - 30% post- onsumer the City of Crescent City and County of Del Norte & member, North Coast Recycling Market Development Zone 100% reayo ed paper

2 and the County intended to meet the post-closure financial assurance requirement using a 'pledge of revenue' from the receipts collected at the Del Norte County Transfer Station. Analysis: Authority staff drafted the attached Resolution (and the partner Resolution already adopted by the Authority), which was then reviewed and edited by the staff of the California Integrated Waste Management Board (CIWMB). Staff requested the review by CIWMB staff to provide assurance that the provisions and requirements within each Resolution was acceptable to the CIWMB staff responsible for determining if we are meeting the post-closure financial assurances requirements. Adopting such resolutions or setting aside monies to meet these post-closure financial assurance requirements is a necessary part of the process to adopt documents which describe how the Del Norte County Landfill will be monitored and maintained throughout the 30-year postclosure maintenance period. Alternatives: If the Authority Board or the County do not adopt Resolutions at least similar to those attached to this Staff Report, the CIWMB could take enforcement action against the Authority, the County or both. The County could assume this liability directly, but such action could adversely impact the credit rating of the County. Fiscal Impact: As of 30 June 2007, the estimated $78, annual post-closure annual maintenance and testing expense is expected to total an additional (28.59 years of the 30 year post-closure period remaining x $78, x (inflation for 2007 of 2.7%) = ) $ 2,309,063 before sunsetting in February This liability is reported within the Authority's audited financial statements. Related Issues: The auditors used by the Authority and the County regularly question how the various liabilities associated with the Crescent City Landfill are described and addressed. The Authority has an interest in making sure resources remain accessible to address any erosion, vandalism, or other related maintenance expenses as well as regular vegetation control and testing expenses. A

3 A RESOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF DEL NORTE S TA TE OF CALIFORNIA RESOLUTION NO A RESOLUTION FOR FINANCIAL ASSURANCE FOR POSTCLOSURE MAINTENANCE OF THE CRESCENT CITY LANDFILL WHEREAS, California Public Resources Code (PRC) sections through and Title 27, of the California Code of Regulations ("Regulations"), Division 2, Chapter 6, Article 2, require operators of solid waste landfills to demonstrate the availability of financial resources to conduct post closure maintenance activities; and WHEREAS, the County of Del Norte owns the property of the Crescent City Landfill and as such is included as a responsible party for postclosure maintenance for such under Waste Discharge Requirements issued by the Regional Water Quality Control Board; and WHEREAS, sections and of the Regulations specify a Pledge of Revenue as an acceptable mechanism to demonstrate financial responsibility for financing postclosure maintenance costs of a solid waste landfill. NOW, THEREFORE, BE IT RESOLVED by the Del Norte County Board of Supervisors (DNCBOS) that: 1. The County of Del Norte has delegated responsibility for maintaining the closed Crescent City Landfill, a solid waste landfill, to the Del Norte Solid Waste Management Authority (DNSWMA) in conformance with the findings, conditions, prohibitions and requirements contained in Solid Waste Facilities Permit No. 08-AA-0006 issued by the Del Norte County LEA serving as Local Enforcement Agency for the California Integrated Waste Management Board (CIWMB), as revised; and 2. In 1995, the DNSWMA established a Pledge of Revenue demonstrating financial responsibility for Postclosure Maintenance of the Crescent City Landfill in accor ance wit - sections , 18233, 18283, and

4 18290 of the Regulations of Title 14 which were in force at that time. 3. The Crescent City Landfill closure construction was completed on 01 February The Regulations of Title 27 which currently apply to the establishment of a Pledge of Revenue Agreement are sections and The Postclosure Cost Estimates have been revised in compliance with PRC sections as well as the Regulations of Title 27, section 21840, Chapter 4, Subchapter The Del Norte Solid Waste Management Authority has pledged to annually budget from the projected revenues of the Del Norte County Transfer Station (SWIS # 08-AA- 0018) which DNSWMA administers, funds not less than the entirety of the amount of the Postclosure Cost Estimate included as Appendix K of the Crescent City Landfill Closure and Post-closure Maintenance Plan, as revised, in compliance with Regulations Title 27, section of Chapter 4, subchapter This pledge shall continue until released from postclosure maintenance responsibilities as defined in Title 27, section of Chapter 4, subchapter 4, which shall occur on or after 01 February Disbursement of funds for postclosure maintenance shall be in accordance with the final Crescent City Landfill Closure and Postclosure Maintenance Plan, as revised and as approved by the CIWMB. 9. In the event that the CIWMB determines that the DNSWMA has failed, or is failing, to perform postclosure maintenance as required by law, the CIWMB may direct the Auditor-Controller to pay to the Solid Waste Director from the pledged revenues such amounts as are necessary to ensure sufficient postclosure maintenance, who shall then use such funds for postclosure maintenance in accordance with the directives of the LEA, CIWMB, RWQCB, as applicable. 10. If the City of Crescent City, the County of Del Norte, or any other member agency takes action to Terminate its membership of the Del Norte Solid Waste Management Authority, such action is to comply with Section 8 of the 'Joint Powers- Agreement - Between City of Crescent City and the Count of Del NorteLTeafing the Del Norte Solid Waste

5 Management Authority," as amended. Furthermore, such Termination would not be effective until the withdrawing party paid their allocated contribution to this nonrevocable commitment to pay for or otherwise provide for the legal completion of all required postclosure maintenance activities. Ayes: Noes: Abstain: Absent: STATE OF CALIFORNIA ) ss. COUNTY OF DEL NORTE 1, John/Jane Doe, Secretary of the Board of Supervisors of the County of Del Norte, do hereby certify that the foregoing is a full, true, and correct copy of a resolution adopted by the Board of Supervisors at a regular meeting held on 20_, and duly entered in the minutes of said Coun!Y. John/Jane Doe Secretary S E A L

6 DEL NORTE SOLID WASTE MANAGEMENT AUTHORITY COUNTY OF DEL NORTE CITY OF CRESCENT CITY STATE OF CALIFORNIA PLEDGE OF REVENUE AGREEMENT ESTABLISHING FINANCIAL ASSURANCE FOR POSTCLOSURE MAINTENANCE OF THE CRESCENT CITY LANDFILL This agreement establishes a Pledge of Revenue to assure that adequate funds are available to carry out the Postclosure Maintenance of the Crescent City Landfill. This Agreement shall become effective immediately, and is made and entered into by and between the Del Norte Solid Waste Management Authority (DNSWMA) and the California Integrated Waste Management Board (CIWMB). WHEREAS, California Public Resources Code (PRC) sections through and Title 27, of the California Code of Regulations ("Regulations"), Division 2, Chapter 6, Article 2, require operators of solid waste landfills to demonstrate the availability of financial resources to conduct. postclosure maintenance activities; and WHEREAS, sections and of the Regulations specify a Pledge of Revenue as an acceptable mechanism to demonstrate financial responsibility for financing postclosure maintenance costs of a solid waste landfill; and WHEREAS, the DNSWMA maintains the closed Crescent City Landfill under assignment from the County of Del Norte, a solid waste landfill, in conformance with the findings, conditions, prohibitions and requirements contained in the permit, SWIS # 08-AA-0006, issued by the Del Norte County LEA serving as Local Enforcement Agency for CIWMB; and WHEREAS, the DNSWMA is pledging revenues from tipping fees collected at the Del Norte County Transfer Station (SWIS #08-AA-001 8), deposited into the Del Norte Solid Waste Management Authority Fund; and WHEREAS, the DNSWMA has determined that projected net revenues from tipping fees during the thirty (30) year period of postclosure maintenance, shall, during each year of this period, be greater than the yearly monitoring and postclosure maintenance -costs contained in the most recent Cost-Estimate for

7 the Crescent City Landfill, which has been submitted to the CIWMB in accordance with Regulations Title 27, section of Chapter 4, subchapter 4. NOW, THEREFORE, the DNSWMA and the CIWMB do agree as follows; 1. The DNSWMA hereby establishes a pledge of revenue to demonstrate financial responsibility for postclosure maintenance of the Crescent City Landfill in accordance with sections and of the Regulations. 2. The DNSWMA agrees to pledge net revenues from the tipping fees deposited into the Del Norte Solid Waste Management Authority Fund. 3. The amount of the pledged revenue shall be equal to the most recent monitoring and postclosure maintenance cost estimate for the Crescent City Landfill, estimated in September 2007 to be $106,650 annually for the 30 year period of postclosure maintenance, ending no sooner than February It is agreed that the amount of this pledge may increase or decrease to match any adjustment to the identified cost estimate which is mutually agreed to by the DNSWMA and the CIWMB. 4. If the DNSWMA ceases at any time to allocate the pledged revenue as identified herein to pay postclosure maintenance costs or to implement required postclosure maintenance activities, the CIWMB may seek appropriate and applicable remedies described within Title 27, Chapter 6, subchapter 4, Article 1 of the Regulations, sections If DNSWMA ceases at any time to retain control of its ability to allocate any pledged revenue to pay postclosure maintenance costs, DNSWMA or its successor shall notify the CIWMB and obtain alternate coverage within 60 days after control lapses, pursuant to section of the Regulations. 6. In the event that the CIWMB determines that the DNSWMA has failed, or is failing, to perform postclosure maintenance activities as required by law and the Crescent City Landfill Closure and Postclosure Maintenance Plan as amended, the CIWMB may direct the Auditor-Controller to pay to the Solid Waste Director or his/her successor(s) from the pledged- revenues- such amounts as- are -necessary to ensure sufficient postclosure maintenance,-who-shall-then-----

8 use such funds for postclosure maintenance in accordance with the directives of the LEA, CIWMB, RWQCB, as applicable. 7. In the event that a participating member of DNSWMA withdraws from the DNSWMA, the withdrawing member shall continue to be financially responsible for postclosure maintenance for Crescent City Landfill when such liability was incurred prior to the withdrawal date. All members of the DNSWMA further agree that postclosure maintenance activities shall not be delayed in order to determine such proportionate share of the withdrawing member's liability. 8. In the event the DNSWMA is dissolved, all members of the DNSWMA agree to make financial assurances prior to dissolution that will ensure continued payment of each members' respective share of any outstanding indebtedness for postclosure maintenance for Crescent City Landfill. All members of the DNSWMA agree that postclosure maintenance activities shall not be delayed in order to determine the members' proportionate shares of such indebtedness.

9 IN WITNESS HEREOF, the parties have executed this agreement on the date as set forth below. By DNSWMAthis th day of 20_ ByCIWMB this day of 20_ STATE OF CALIFORNIA DEL NORTE SOLID WASTE California Integrated MANAGEMENT AUTHORITY Waste Management Board B By Chair Authorized Officer of CIWMB Del Norte Solid Waste Management Authority APPROVED AS TO FORM AND PROCEDURE: ATTEST: B By ELLEN P. BROWN, Clerk of the Authorized Counsel of CIWMB Del Norte Solid Waste Management Authority APPROVED AS TO FORM: B Robert Black Del Norte Solid Waste Management Authority Counsel