To: Board of Supervisors
Department or Agency Name(s): Sonoma County Public Infrastructure
Staff Name and Phone Number: Johannes J. Hoevertsz, 707-565-2550
Vote Requirement: 4/5th
Supervisorial District(s): Countywide
Title:
Title
FY 2026-27 City Contingent Liability Fund Annual Distribution
End
Recommended Action:
Recommended action
Adopt a Resolution authorizing a budget adjustment to the FY 2026-27 Sonoma County Public Infrastructure Adopted Budget to disburse a combined total of $1,768,167 from the City Contingent Liability Fund shares held by the County on behalf of the Committed Cities, consistent with the Sonoma County Committed Cities Contingent Liability Fund Agreement. (4/5th Vote Required)
end
Executive Summary:
The Sonoma County Department of Public Infrastructure (SPI) is requesting approval of a Resolution authorizing budget adjustments for Fiscal Year 2026-27 to the City Contingent Liability Fund. Approval of the Resolution would enable the release of funds in the following amounts to the following Committed Cities: Cloverdale $340,469; Healdsburg $642,698; Rohnert Park $535,000; Sebastopol $50,000; and Sonoma $200,000. The requested disbursements total $1,768,167 and are part of an annual combined distribution request that, according to a June 10, 2026 letter from Jason Nutt, Chair of the Sonoma County City Managers, was agreed to by the City Managers of the Committed Cities. Disbursed funds will be used solely for activities benefitting solid waste ratepayers, as determined by the cities.
Discussion:
Background
In December 2009, Sonoma County's Board of Supervisors initiated a collaborative process called the County City Solid Waste Advisory Group (SWAG), which involved public stakeholders, Sonoma County cities, and the County, to create a long-term solid waste and recycling strategy. Three agreements were created to achieve the SWAG's objectives:
1. The Master Operations Agreement (MOA) to ensure the continued operation of County Facilities, such as the landfill and transfer stations.
2. Waste Commitment Agreements between Republic Services and each City to direct municipal solid waste to County Facilities.
3. The Landfill Settlement Agreement (LSA) to resolve unfunded landfill liabilities associated with the County's solid waste system.
After the Board approved the MOA in April 2013, Republic Services and the Committed Cities negotiated waste delivery agreements. The Committed Cities and the County also negotiated the LSA, which settled certain liabilities for the Committed Cities' disposal of solid waste to the Central Landfill and assigned responsibility to the County for a term of 30 years for the post-closure obligations at the Former Urban Landfills.
As a condition of entering into the LSA, the Committed Cities requested, and the County and Republic Services agreed, to collect a Committed Cities Contingent Liability Fee on Committed City waste through disposal fees collected by Republic. The County administers the funds, which are allocated to each Committed City based on solid waste tonnage delivered from its jurisdiction.
Request to Disburse Funds
At their April 16 and May 18, 2026, meetings, the City Managers of the Committed Cities discussed the use and distribution of available City Contingent Liability Funds and agreed that an annual combined distribution request would be more efficient than individual requests at various times during the fiscal year.
For FY 2026-27, the Committed Cities identified each city's current City Contingent Liability Fund balance as of April 20, 2026, the minimum reserve to be maintained, and the amount currently available for distribution. Requested distributions are based on the current amount available for distribution for each city included in this annual request.
On June 10, 2026, the Sonoma County City Managers submitted an annual combined request to initiate FY 2026-27 disbursements after July 1, 2026. The requested distributions are: Cloverdale $340,469; Healdsburg $642,698; Rohnert Park $535,000; Sebastopol $50,000; and Sonoma $200,000. The combined amount requested for appropriation is $1,768,167.
The LSA states that any disbursement of funds from the Committed Cities Contingent Liability Fund requires approval of the Committed Cities in accordance with the terms and conditions of the Committed Cities Contingent Liability Fund Agreement, to which the County is not a party. The June 10, 2026 request letter memorializes the Committed Cities' annual distribution framework and requested FY 2026-27 distribution amounts. The Committed Cities will use disbursed funds solely for activities benefitting solid waste ratepayers, as required by the governing agreements.
Staff recommends that the Board approve the Resolution authorizing budget adjustments to release the combined requested amount of $1,768,167 from the applicable City Contingent Liability Fund balances.
Strategic Plan:
N/A
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
No
Prior Board Actions:
04/07/26: Board adopted a resolution authorizing a budget adjustment to the FY 2025-26 Adopted Budget to fulfill the Town of Windsor's request and disburse $535,000 from the Windsor Contingent Liability Fund;
07/08/25: Board adopted a resolution authorizing a budget adjustment to the FY 2025-26 Adopted Budget to fulfill the City of Santa Rosa's request and disburse $1,076,000 from the Santa Rosa Contingent Liability Fund;
07/11/23: Board adopted a resolution authorizing a budget adjustment to the FY 2023-24 Adopted Budget to fulfill the City of Santa Rosa's request and disburse $1,450,000 from the Santa Rosa Contingent Liability Fund;
03/03/15: Board authorized the Chair to execute the Landfill Settlement Agreement between the County and the Cities;
04/23/13: Board authorized the Chair to execute the Master Operations Agreement.
Fiscal Summary
|
Expenditures |
FY26-27 Adopted |
FY27-28 Projected |
FY28-29 Projected |
|
Budgeted Expenses |
|
|
|
|
Additional Appropriation Requested |
$1,768,167 |
|
|
|
Total Expenditures |
$1,768,167 |
|
|
|
Funding Sources |
|
|
|
|
General Fund/WA GF |
|
|
|
|
State/Federal |
|
|
|
|
Fees/Other |
|
|
|
|
Use of Fund Balance |
$1,768,167 |
|
|
|
General Fund Contingencies |
|
|
|
|
Total Sources |
$1,768,167 |
|
|
Narrative Explanation of Fiscal Impacts:
To facilitate this recommended action, budget appropriations are requested from available City Contingent Liability Fund balances held by the County on behalf of the Committed Cities as follows: Cloverdale Contingent Liability Fund (41130) $340,469; Healdsburg Contingent Liability Fund (41132) $642,698; Rohnert Park Contingent Liability Fund, Department (41133) $535,000; Sebastopol Contingent Liability Fund (41135) $50,000; and Sonoma Contingent Liability Fund (41136) $200,000. These five appropriations total $1,768,167. The budget adjustments provide expenditure authority using fund balance in each corresponding city fund; no General Fund contribution is required. The requested amounts are consistent with the Committed Cities' annual distribution request and the amount identified as currently available for distribution for each participating city.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
Attachment A - Annual Combined Request Letter by Sonoma County City Managers
Attachment B - Budget Resolution
Related Items “On File” with the Clerk of the Board:
Central Disposal Site and Former Landfills Settlement Agreement