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CITY OF GLENDALE, CALIFORNIA
REPORT TO THE CITY COUNCIL
AGENDA ITEM
Report: Resolution Approving Pledge of Revenue for Post-closure Maintenance of Scholl Landfill.
1. Resolution Regarding Financial Assurance for Postclosure Maintenance of Scholl Canyon Landfill, Glendale, California and authorizing the City Manager or his designee to enter into and execute a Pledge of Revenue Agreement.
COUNCIL ACTION
Item Type: Action Item
Approved for July 15, 2025 calendar
EXECUTIVE SUMMARY
The Scholl Canyon Landfill (Landfill) is owned by the City of Glendale (City) and operated by the Sanitation Districts of Los Angeles County. Based upon the amount of solid waste being deposited currently, the Landfill is estimated to close sometime between December 2028 and April 2029. Subsequent to closure, the Landfill will enter a new phase of closure and post-closure requirements established by the California Public Resources Code (PRC §43501) that includes the submission of a closure and post-closure maintenance plan (Plan) and submission of evidence of the financial ability to provide for closure and post-closure maintenance in an amount that is equal to the estimated cost of the closure and 30 years of post-closure maintenance that is contained in the Plan submitted.
The City previously established a separate landfill post-closure fund, with an allocation specifically designated to the Landfill post-closure maintenance and/or corrective action, referred to as the Capital Project Fund. The City, in accordance with the applicable PRC Regulations, has negotiated a Pledge of Revenue Agreement, attached hereto as Exhibit 1, with CalRecycle whereby the City will be demonstrating financial responsibility for the post-closure maintenance of the landfill by pledging, and annually certifying, the availability of the required postclosure maintenance costs. 9e2
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Separate from the Pledge of Revenue Agreement, the City will also maintain the amount necessary for Corrective Action in the Capital Project Fund, as required by PRC Regulations. The amount for the Corrective Action is currently $1,333,799 (in 2025 dollars) which is a one-time amount subject to increases to account for inflation.
RECOMMENDATION
Adopt the Resolution Regarding Financial Assurance for Postclosure Maintenance of the Scholl Canyon Landfill, and authorize staff to execute a Pledge of Revenue Agreement with CalRecycle for postclosure maintenance of the Scholl Canyon Landfill.
ANALYSIS
Since the opening of the Landfill in 1961, the estimated closure date has always been based on the amount of trash that is being deposited. The current anticipated closure date for the Landfill is sometime between December 2028 and April 2029.
Once the landfill reaches its capacity, there are several steps that the Sanitation Districts of Los Angeles County must take in order to lawfully close the site. First, they must prepare a final closure report and get approval by CalRecycle and their designated Local Enforcement Agency (LEA). This report will include the final, engineered cover as well as the site drainage plan, gas collection system, and associated items that are required by the applicable regulations. Once the final cover is installed and the site is officially deemed “closed” by the regulators, the Sanitation Districts will surrender the land to the City.
The City will then take over responsibility for the site and the City’s Community Services and Parks Department will begin the process of the City’s plan for passive recreational facilities. Several ideas have been proposed, but nothing has been finalized to date since community input will be a primary consideration in this decision-making process. It is important to note that even after the site is converted to passive recreational uses, the City will continue operating and maintaining all of the environmental pollution control and monitoring systems (e.g., gas collection system, boundary gas probes, gas wells, groundwater wells, groundwater extraction system, etc.). This work will be part of the ongoing “post-closure” activities at the closed landfill that will continue in perpetuity.
PRC Sections 43500 through 43610.1 and Title 27, California Code of Regulations (CCR), Division 2, Subdivision 1, Chapter 6, require operators of solid waste landfills to demonstrate the availability of financial resources to conduct and complete landfill closure, post-closure maintenance, and corrective action activities.
Pursuant to Assembly Bill 2448 and the regulations established by the California Integrated Waste Management Board (Board), landfill operators are required to submit an initial cost estimate of postclosure maintenance and to establish a financial mechanism 9e3
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to demonstrate the availability of funding to conduct postclosure maintenance activities.
The City selected a trust fund as the financial mechanism and the Board approved this in 1990. The trust fund, which is one of the City’s Capital Project Funds, has a balance of $62,396,689 as of May 2025.
The City has been in discussions with CalRecycle since 2024 to implement a Pledge of Revenue Agreement to guarantee its compliance with PRC Regulations. The City’s Trust Fund currently has a deficit of $9,044,901, compared to the required minimum post closure maintenance fund balance of $71,441,590 for the 2024 reporting year. If the City proceeds with the Pledge of Revenue for the postclosure maintenance, the pledge and annual certifications as required in the Pledge of Revenue Agreement will suffice.
However, if the City chooses to not proceed with the Pledge of Revenue option for the Landfill’s postclosure maintenance, then the City will be required to promptly cure the $9,044,901 deficit by depositing the required amount into the Capital Project Fund.
Staff has negotiated a Pledge of Revenue Agreement for post-closure maintenance of the Landfill. The Pledge of Revenue Agreement will establish a pledge of revenue to assure that adequate funds are available to carry out post-closure maintenance for the Landfill. The City will submit annual certification, as required by the Pledge of Revenue Agreement, to CalRecycle affirming the pledged revenue.
Staff seeks to enter into an agreement with CalRecycle to establish a pledge of net revenue from the Capital Project Fund and the City’s General Fund. The amount of the pledged revenue will be equal to $2,896,302 (in 2025 dollars) per year for the state- mandated period of postclosure maintenance (a minimum of thirty years). It will be 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 City of Glendale and CalRecycle.
The City will also maintain the amount necessary for Corrective Action in the Capital Project Fund. The amount for the Corrective Action is currently $1,333,799 (in 2025 dollars); this is a one-time amount subject to increases to account for inflation.
STAKEHOLDERS/OUTREACH
Not applicable for the purposes of the herein subject action. However, as the Landfill prepares for closure, the City will conduct public outreach and seek community input relating to the future plans and use of the closed Landfill.
FISCAL IMPACT
The minimum fund balance required for the 2024 reporting year is $71,441,590. As of May 2025, the Capital Project Fund’s cash balance is $62,396,689, resulting in a shortfall of $9,044,901. To address this deficit, the City may either deposit the $9,044,901 into the Capital Project Fund or proceed with the negotiated Pledge of Revenue agreement.
Although the required minimum balance is $71,441,590, the Pledge of Revenue is calculated based on the total estimated post closure liability of $86,889,073 (in 2025 9e4
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dollars) as of May 2025, spread over a 30-year period. Therefore, this pledge of revenue will require a commitment in an amount equal to $2,896,302 (in 2025 dollars) per year from both the Capital Project Fund and the General Fund. In addition, the City will also maintain the amount necessary for the Corrective Action, currently estimated at $1,333,799 (in 2025 dollars), within the Capital Project Fund.
ENVIRONMENTAL REVIEW (CEQA/NEPA)
The action requested herein does not constitute a project approval for the purposes of the California Environmental Quality Act (CEQA) because it does not commit the City to a definite course of action with respect to the landfill (CEQA Guidelines §15352). It is merely a financial mechanism to secure the City’s postclosure legal obligations regarding the landfill. For the same reasons, it can be seen with certainty that there is no possibility that approving the financial assurance will result in any significant in the environment (CEQA Guidelines §15061(b)(3)
CAMPAIGN DISCLOSURE
Not Applicable.
ALTERNATIVES TO STAFF RECOMMENDATION
1: Council may choose to not approve the action requested herein which will result in the City having to deposit an additional $9,044,901 into the Capital Project Fund in order to cure the deficit in said fund.
2: Council may consider any other alternative not proposed by staff.
ADMINISTRATIVE ACTION
Submitted by:
Daniel Hernandez, Director of Public Works
Prepared by:
Dorine Martirosian, Principal Assistant City Attorney
Maria Theresa Clark, Accounting Manager
Luke Chen, Senior Civil Engineer
Approved by:
Roubik R. Golanian, P.E., City Manager
EXHIBITS/ATTACHMENTS
Exhibit 1 - Pledge of Revenue Agreement for Postclosure Maintenance