1 STAFF REPORT
DATE: March 1, 2022
TO: Justin Hess, City Manager
FROM: Ken Berkman, Public Works
VIA: John Molinar, Asst. Public Works Director – Street and Solid Waste
SUBJECT: Adoption of a Resolution for Financial Assurance for Closure and Corrective Action for Burbank Landfill Site No. 3
RECOMMENDATION
Adopt A RESOLUTION OF THE COUNCIL OF THE CITY OF BURBANK FOR
FINANCIAL ASSURANCE FOR CLOSURE AND CORRECTIVE ACTION FOR BURBANK LANDFILL SITE NO. 3 (Attachment 1).
BACKGROUND
Since the 1980s and 1990s respectively, Federal and State regulations have required that all municipal solid waste landfill owners establish financial assurance mechanisms to ensure that once their facilities have reached final capacity to accept refuse, they are properly closed and maintained through a 30- year postclosure maintenance period.
Subsequently, another financial assurance mechanism was required for corrective action to clean up problems that may arise as a result of landfill activities. The purpose of the regulations is to make sure that adequate financial resources w ill be available for these future costs, preventing landfill owners from abandoning filled sites and leaving long-term threats to public health and the environment.
On December 5, 1995, Burbank City Council approved Resolution Nos. 24 ,647 and 24,648 (Attachment 2) that provided the Financial Assurance for Closure and Postclosure Maintenance for the City of Burbank Landfill No. 3. On July 23, 1996, Council superseded Resolution No. 24, 647 with Resolution No. 24,794 (Attachment 3); however, the funds and their requirements did not change. As a part of these resolutions, a Landfill Closure Trust Fund in the Refuse Enterprise Fund was established, and funds for closure and PUBLIC
WORKS
2 postclosure maintenance have been set aside since that time. When these Resolutions were passed, funding for corrective action was not required.
DISCUSSION
Some years after Burbank set up the trust fund for closure and postclosure maintenance, the California Department of Resources Recycling and Recovery (CalRecycle) deemed that Financial Assurance for Corrective Action was also required for landfills. CalRecycle determined the City’s 2020 corrective action obligation to be $1,598,875; this is adjusted each year for inflation. Although corrective action was not included in the resolutions in 1995 and 1996, the existing trust fund has sufficient funding to meet the City’s obligations for corrective action as well as closure and postclos ure. By agreeing to incorporate corrective action into the existing trust fund the City will be formalizing its obligation with CalRecycle that sufficient funds are available should a corrective action incident occur.
The attached resolution is necessary to demonstrate the pledge of funds each year and gives CalRecycle the authority to direct the Financial Services Director to use the funds for corrective action if the City fails to perform corrective action as required by law.
This resolution will help forward Council’s goals of “City Services” and “Quality of Life” by keeping the City in compliance with State regulations and allowing the Landfill to continue to serve our residents.
FISCAL IMPACT
Sufficient funds for corrective action are in the existing trust fund, so there is no fiscal impact at this time. The current amount of the corrective action for 2020 was $1,598,875 and is adjusted and supplemented each year for inflation. CalRecycle has not released the numbers for 2021.
CONCLUSION
City Council approval of the attached resolution is a requirement and mandated by State law in order to continue operation of the City’s landfill. Staff respectfully recommends adopting the resolution.
ATTACHMENTS
Attachment 1 - Resolution
Attachment 2 - Letters dated December 5, 1995, to the California Integrated Waste Management Board
Attachment 3 - Resolution No. 24,794 adopted July 23, 1996: Financial Assurance for Closure for Burbank Landfill Site No. 3