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: Majority
Supervisorial District(s): Countywide
Title:
Title
Regional Solid Waste Planning - Potential Expansion of the Sonoma County Central Disposal Site
End
Recommended Action:
Recommended action
A) Accept the findings and recommendations of the Solid Waste Regional Capacity Study (November 7, 2022 - Final Report) (“2022 Capacity Study”).
B) Designate the land immediately adjacent to the west of the Sonoma County Central Disposal Site (CDS) permitted boundary as the preferred site for future landfill expansion. Concurrently, direct staff to undertake further analysis in accordance with the California Environmental Quality Act (CEQA).
C) Adopt a resolution (a) finding that an amendment to the Master Operations Agreement (MOA) with Republic Services of Sonoma County, Inc. (“Republic”) for the development, implementation and operation of a potential CDS expansion project is exempt from competitive bidding obligations by operation of Public Resources Code Sections 40057-40059 and applicable case law, (b) directing staff to initiate negotiations with Republic to develop a draft non-binding term sheet for future consideration by the Board, and (c) setting goals and objectives for the negotiation.
D) Direct staff to engage with strategic partners/stakeholders in education and outreach relative to the findings of the Solid Waste Regional Capacity Study and associated recommendations to ensure Sonoma County residents have long term waste solutions.
end
Executive Summary:
The Sonoma County Central Disposal Site (CDS) has served as a key waste management facility for decades from its start of operations in 1972. It has been a valuable asset, providing day-to-day disposal of municipal solid waste and catering to local disposal needs in the aftermath of natural disasters such as wildfires, floods, and severe weather events. As we step into the future, however, the CDS faces limitations in terms of its permitted capacity.
While current state-mandated calculations indicate the Central Disposal Site (CDS) has an estimated lifespan of approximately 18 years, initiating the expansion process now is crucial for several reasons. Firstly, the planning, approval, design, and construction processes for landfill expansions can be extensive, often spanning many years. Waiting until the CDS is nearing its capacity would not provide adequate time to complete these processes without facing a lapse in service. Secondly, maintaining a buffer in capacity is essential to accommodate unforeseen spikes in waste generation, which could be due to population growth, industrial activities, or natural disasters. Without this buffer, the County risks facing the substantial economic and environmental impacts, such as the need to transport waste over long distances, a potential shortage of space to process debris from natural disasters, and increased solid waste disposal costs. Additionally, proactive expansion ensures a stable and predictable solid waste management system for the future, ensuring the community's environmental and economic well-being.
Additional in-County capacity for solid waste disposal will be required as the alternatives to landfill expansion do not align with the County's operational objectives, nor are they consistent with the County's commitment to reducing greenhouse gas emissions. Establishing a new waste disposal facility is not feasible to accomplish in a timely manner due to significant hurdles including an exhaustive site selection process, high initial investment costs, potential public opposition, and increased environmental impacts. Consequently, expanding the CDS emerges as a more viable and cost-effective option.
The Sonoma County Public Infrastructure Department (SPI) is seeking Board approval: (1) to accept the findings and recommendations of the Solid Waste Regional Capacity Study, (2) direct staff to pursue a potential expansion of the CDS, including initiation of CEQA studies, (3) direct staff to initiate negotiations with Republic in order to deliver the project cost-effectively and without compromising the significant liability protections the County maintains under the existing Master Operations Agreement with Republic for the CDS, and (4) direct staff to engage with strategic partners and stakeholders in education and outreach to ensure Sonoma County residents have long term waste solutions.
Discussion:
Background:
On April 23, 2013, the Board approved the Master Operations Agreement (MOA) for the operation of the Central Landfill and County Transfer Stations (Resolution No. 13-0154). The MOA was not effective until 2015, as it was conditioned upon the fulfillment of other commitments and permissions, including the requirement that the cities pledge to direct their waste to the facilities managed by Republic (known as “Flow Commitments”). In the end, Flow Commitments were obtained from eight of the County’s nine cities, with the City of Petaluma abstaining.
The MOA has an initial term of 25 years and caps the waste disposal rates to allow only modest increases for annual consumer price index (CPI) adjustments. A portion of the disposal rate charged to customers covers Republic’s costs for the risks it assumed in perpetuity for the closure of the CDS, post-closure maintenance costs, and all related environmental liabilities.
Summary of Regional Capacity Study
Since the MOA was signed, Sonoma County has experienced a series of devastating wildfires, notably the Tubbs, Nuns, and Pocket Fires in 2017, the Kincade Fire in 2019, and the LNU Lightning Complex fires in 2020. The destruction wrought by these wildfires resulted in environmental damage and property loss, imposing substantial strain on the CDS. A significant volume of waste and debris, resulting from the cleanup and recovery operations post-wildfires, was disposed at the CDS. This unexpected surge in waste disposal consumed nearly 3.5 years of site life. Other bay area landfills have been similarly impacted, effectively reducing disposal capacity on a regional scale. Thus, environmental disasters like wildfires are necessarily part of the County’s strategic planning for future waste management solutions.
Taking these concerns into account and recognizing the limited capacity available at the CDS, the Integrated Waste Division of Sonoma County Public Infrastructure contracted D. Edwards, Inc in March 2022 to provide a regional solid waste capacity analysis to aid in strategizing long-term disposal capacity requirements. The report “Sonoma County Preliminary Regional Disposal Capacity Analysis Technical Memorandum" (Attachment A):
1. Examined two feasible alternatives: expanding the approved capacity at the CDS or diverting waste to existing regional disposal facilities.
2. Offers a preliminary evaluation of the present and anticipated disposal capacity, volume and costs of both options, factoring in their respective environmental and economic impacts.
3. Acknowledges the crucial role of CDS for Sonoma County in routinely managing municipal solid waste (MSW) and local disaster debris from wildfires, floods, and severe weather events.
4. Highlights the limited permitted capacity of CDS, which might be reached in a span as short as 7.4 years or extended to a maximum of 18.8 years, contingent on waste density, volume, waste diversion, and disaster events.
5. Recommends the County to start renewing prior engineering, design, and environmental work to estimate the additional capacity that could be added through an expansion at the CDS and the related cost.
6. Includes an assessment of four out-of-county landfills - Redwood Landfill (Marin County), Potrero Hills Landfill (Solano County), Keller Canyon Landfill (Contra Costa County), and Hay Road Landfill (Solano County) and suggests that these landfills, have the combined daily and overall capacity to handle Sonoma County’s MSW stream. However, only Hay Road Landfill possesses the individual capacity to manage the full daily volume of MSW currently processed at the CDS. The report mentions the impending closure of Redwood Landfill by 2034, which may require a redirection of some of the waste stream currently directed to that facility.
7. Warns that dependence on out-of-county landfills could lead to significant rises in vehicle miles traveled (VMT), greenhouse gas (GHG) emissions, other air emissions, transportation costs, and environmental impact assessments.
The report also recommends exploring the option of developing extra permitted disposal capacity within or adjacent to the existing boundary of the CDS. This option has several benefits to the County, including:
1. The continued availability of an in-county facility offers the County and its jurisdictions more flexibility, reliability, and a lower overall environmental impact by eliminating the need for long-distance transportation of waste, thereby reducing GHG emissions, transportation costs, and potential risks associated with waste transportation compared to outhaul alternatives;
2. Having a robust, local facility like the CDS enhances the County's resilience to environmental disasters. As evidenced by the recent wildfires, the CDS played a critical role in disaster response by managing the surge in waste and debris. An expanded facility would further improve the ability to promptly respond to and recover from such incidents, reducing recovery times and costs;
3. Expansion of the CDS supports the continuation of existing jobs and potentially creates new employment opportunities associated with the expansion and increased operational capacity. This contributes to local economic stability and growth. Furthermore, the cost of waste management services can be more predictably managed for residents and businesses, contributing to the overall economic health of the County.
In the event the County elects not to expand the landfill, the report suggests a comprehensive due diligence exercise to determine the feasibility of an outhaul alternative and the readiness and ability of the out-of-county landfills to commit to long-term disposal agreements with Sonoma County.
Establishing a completely new landfill site, especially in light of the extensive infrastructure at the current CDS, is not only impractical but potentially unfeasible. The CDS houses not just a transfer station and containment facilities, but also a sophisticated landfill gas collection system, a power plant, and other essential utilities that represent a significant capital investment. To replicate these systems at a new location would be economically challenging and might be logistically impossible within the 18-year estimated lifespan left at the CDS.
Moreover, the logistical challenge of identifying and then getting approval for a new, centrally located site near the municipalities can't be overstated. Given the intricacies of the California Environmental Quality Act (CEQA) review and the prolonged permitting process, there might not be adequate time to design and construct the necessary infrastructure before the current CDS reaches its limit. Furthermore, siting a new facility in proximity to the municipalities, especially within the Santa Rosa plain, introduces the additional obligation and expense of securing California tiger salamander credits.
Considering these significant constraints, expanding the existing CDS becomes the most logical and economically viable solution. Doing so allows Sonoma County to leverage its already considerable investments in infrastructure, ensure continuity of essential waste management services, and avoid the myriad of complications associated with initiating a new site.
Republic as Preferred Operator
Staff recommend working directly with Republic to negotiate the terms of a potential expansion of the CDS in lieu of conducting an immediate competitive process, as Republic is positioned uniquely to deliver the Expansion Project more cost-effectively than any other provider. An amendment to the MOA with Republic Services is exempt from competitive bidding obligations by operation of Public Resources Code Sections 40057-40059 and applicable case law, as further described in the attached resolution.
There are many reasons for the recommendation to work directly with Republic Services on the Expansion Project. First, pursuant to the MOA, Republic has exclusive access to the existing CDS leachate ponds and pipelines in perpetuity. In order for another operator to deliver the Expansion Project on an adjacent site, existing infrastructure would need to be duplicated or shared with Republic. Duplicative infrastructure challenges include, but are not limited to, the following:
a. A new Landfill Gas Power Plant or Flare would need to be designed, permitted and Installed for the Expansion Project;
b. Class II Surface Impoundments would have to be designed, permitted and constructed;
c. New Stormwater Detention Basins would need to be designed, permitted and constructed; and
d. A new Transfer Station would need to be designed, permitted and built.
The cost of this new infrastructure to accommodate another operator is estimated to cost well in excess of $50 million. In addition to the cost of replicating infrastructure, the space necessary to place new infrastructure at the site would reduce the footprint of any planned expansion and thereby decrease the potential site life by 1/3 (approximately 16 years) or more.
While the above-described existing infrastructure at CDS in theory can be shared, concurrent operators might have opposing needs and would not necessarily have an incentive to cooperate. It is also likely that obtaining approval of shared infrastructure would be challenging as that complicates permitting, compliance, and enforcement activities. Staff are unaware of any regulatory agency in the state allowing dual waste discharge permits to exist for constructed units on directly adjacent property, much less those that share common infrastructure or physically overlap.
Another consideration involves the existing and future liabilities for the CDS, which Republic has assumed under the MOA. For a third party to undertake a vertical expansion over the existing landfill, that operator would likely need to assume all liabilities for the 1972 CDS footprint because siting a new facility over the existing CDS footprint would compromise Republic’s ability to manage the existing risk portfolio for the CDS. Republic’s assumption of liabilities for the existing landfill was a fundamental element of the MOA in its inception. Elimination of the vertical expansion option (utilizing additional capacity on top of the existing footprint) represents a forfeiture of 10-12 years of potential capacity and site life.
All of these factors notwithstanding, the Board can always elect to conduct a competitive process for the Expansion Project and that option remains available, particularly if Republic is unwilling to enter into a balanced transaction that addresses the County’s goals and needs for the Expansion Project. If mutually-acceptable terms with Republic cannot be achieved, the Board can direct termination of negotiations and pursuit of a competitive process at that time.
Requested Action:
Sonoma County Public Infrastructure has reviewed both the Regional Study and overall site conditions at the CDS, and recommends that the Board of Supervisors accept the findings and recommendations of the Study and adopt a resolution:
1) Designating the land immediately adjacent to the west of the CDS's permitted boundary as the preferred site for future landfill expansion and directing staff to undertake further analysis in accordance with the California Environmental Quality Act (CEQA);
2) Finding that an amendment to the MOA with Republic Services of Sonoma County, Inc. is exempt from competitive bidding obligations by operation of Public Resources Code Sections 40057-40059 and applicable case law, directing staff to initiate negotiations with Republic Services of Sonoma County, Inc. (“Republic”) to develop a draft non-binding term sheet for future consideration by the Board, and setting the following goals and objectives for the negotiation:
a. The Expansion Project, consisting of potentially both vertical and lateral expansions to the CDS, will be operational before the existing CDS capacity limit is reached;
b. Republic will be responsible for the permitting (to the extent permitted by applicable law) and development of all vertical and/or lateral expansion of the CDS in accordance with all required permits;
c. As with the existing CDS operational area, Republic will assume all liabilities associated with the Expansion Project, including, but not limited, to operational liability, and closure, post-closure, and third-party liability, and the Expansion Project shall not alter, waive, release or discharge Republic from its existing liabilities associated with the CDS;
d. The amendment will reduce gate rates, if possible, and support a sustainable funding source for the County and Cities;
e. The amendment will ensure that all waste and other materials delivered for disposition at CDS are accounted for economically;
f. The MOA term will be extended to account for the Expansion Project, while providing the County with rights to protect the public interest given the significant additional timeline associated with the Expansion Project; and
g. The amendment will recognize Republic’s investment and liability assumption while ensuring the revenue potential of the Expansion Project is equitably shared among the parties.
3.) Direct staff to engage with strategic partners/stakeholders in education and outreach relative to the findings of the Solid Waste Regional Capacity Study and associated recommendations to ensure Sonoma County residents have long term waste solutions.
Should the Board direct staff to initiate work with Republic, staff will return to the Board with a draft non-binding term sheet for its consideration. The non-binding term sheet and the potential Expansion Project shall be expressly subject to the implementation and completion of the procedures and analysis required pursuant to CEQA, which will include the possibility of selecting the no-build alternative. This step will ensure that the Expansion Project continues to advance the Board’s plans and that the articulated goals will be achieved through an amendment to the MOA with Republic.
Achieving these goals will greatly benefit the County, committed cities and its citizens by ensuring enough landfill space to accommodate future waste disposal needs, maintaining affordable rates, and providing resiliency in times of disaster and debris disposal.
Alternatives:
Should the Board decide not to proceed with the Expansion Project, the Board may direct staff to pursue outhaul accommodations of Sonoma County waste for long term disposal, as contemplated within the regional capacity study commissioned by the Department.
The most immediate impact will be the absence of a robust resilience mechanism during times of disaster. The wildfires that impacted Sonoma County in recent years, resulting in a substantial influx of waste and debris, have demonstrated the critical role the CDS plays in disaster management. Without the capacity expansion of the CDS, future disasters could pose severe challenges for waste management and disaster debris disposal. This would necessitate dependence on out-of-county landfills, causing delays in disaster recovery, increasing waste transportation costs, and potentially escalating the rates for waste disposal services for our citizens. Even were a disaster to occur outside of Sonoma County in the Bay Area, Sonoma County would likely still be impacted, as the waste delivery system is regional in nature, and as such landfills could become inundated, severely hampering an outhaul waste model.
Another significant consequence of not pursuing the Expansion Project is the heightened risk of environmental impacts. Dependence on out-of-county landfills will increase vehicle miles traveled (VMT), resulting in higher greenhouse gas (GHG) emissions and other air pollutants.
In conclusion, while the decision to pursue the Expansion Project is substantial, the potential repercussions of not doing so are significant. It is crucial that the decision is made considering the long-term implications for the County's waste management, environmental footprint, and resilience in the face of potential disasters.
Strategic Plan:
The CDS site is not incorporated in, nor does it directly support any of the objectives in Sonoma County's 5-year strategic plan. This said, the site's critical importance in confronting climate change and providing essential services during emergencies cannot be overstated. Thus, it is the recommendation by staff that the County reconsider its role within the strategic framework in future iterations of the plan.
Racial Equity:
Was this item identified as an opportunity to apply the Racial Equity Toolkit?
Yes
Please see Racial Equity Memorandum attached.
Prior Board Actions:
03/15/22: Board approved the First Amendment to the Amended and Restated MOA
08/04/20: Board approved the Amended and Restated MOA
03/01/16: Board approved the Second Amendment to the MOA
03/03/15: Board approved the First Amendment to the MOA
4/23/13: Board approved the MOA with Republic
Fiscal Summary
Narrative Explanation of Fiscal Impacts:
There are no direct fiscal impacts associated with the approval of the recommendations. However, should the Board approve this item, future Landfill Expansion Project expenses will be funded through the Former Rural Landfill and Former Urban Landfill Funds. The Integrated Waste Division’s Fiscal Year 2023-24 adopted budget includes $382,958 for expenses related to the landfill expansion project, sourced by Refuse Franchise Fees. Additional appropriations may be requested by returning to the board should expenses exceed the adopted budgeted amount.
Narrative Explanation of Staffing Impacts (If Required):
None.
Attachments:
• Resolution
• Sonoma County Preliminary Regional Disposal Capacity Analysis Technical Memorandum
• Racial Equity Memorandum for Landfill Expansion
• Power Point Presentation
Related Items “On File” with the Clerk of the Board:
Master Operations Agreement