HomeMy WebLinkAbout2016-15 CC Reso - Approving Financial Assurances to Cal Recycle for Closure of Landfill1
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RESOLUTION NO. 2016- 15
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF UKIAH APPROVING FINANCIAL
ASSURANCES TO CALRECYCLE FOR CLOSURE OF THE UKIAH LANDFILL PERMIT # 23 -AA-
0019 IN THE TOTAL AMOUNT OF $10,343,287 AND AUTHORIZING THE CITY MANAGER TO
OBTAIN A CONTRACT FOR A LETTER OF CREDIT IN THE AMOUNT OF $2.5 MILLION.
WHEREAS:
1. Resolution 94 -33 provides financial assurance for closure and postclosure
maintenance of the Ukiah Solid Waste Landfill, called the "Ukiah Solid Waste Facility" in Resolution
94 -33, by pledging to CalRecycle the revenue in the City's Solid Waste Disposal Site Enterprise
Fund ( "Landfill Enterprise Fund ") pursuant to 14 California Code of Regulations (CCR) section
18285 (now 27 CCR §22241); and
2. Based upon an Engineer's estimate of projected closure costs, including a
contingency of twenty percent (20 %), CalRecycle now requires the City to provide financial
assurance of $10,343,287 for closing the Ukiah Landfill (permit #23 -AA- 0019), exclusive of post -
closure maintenance; and
3. CalRecycle requires its written approval before the City can disburse funds
pledged to provide financial assurance in accordance with 27 CCR §22241 for the costs to close
the landfill; and
4. The City will transfer $2,397,909.18 from Fund No. 704 within the Landfill Solid
Waste Enterprise Fund for postclosure maintenance to Fund No. 702 in the Solid Waste Enterprise
Fund for landfill closure, increasing the balance in that fund to $7,843,287 of the projected
$10,343,287 closure costs; and
5. The provisions of Resolution 94 -33 shall continue to apply to Fund 702 and 704
in the Solid Waste Enterprise Fund; and
6. The City will provide CalRecycle with a Letter of Credit pursuant to 27 CCR §
22243 in the amount of $2,500,000 to provide financial assurance for the remaining amount of
projected landfill closure costs; and
6. The Letter of Credit has an initiation fee not to exceed $12,500; and
7. The Letter of Credit is automatically renewed annually; and
8. The annual cost of the Letter of Credit is estimated at 2% or $50,000;
NOW, THEREFORE, BE IT RESOLVED, that:
1. The City Finance Director shall transfer $2,397,909.18 from Fund No. 704 within
the Landfill Solid Waste Enterprise Fund to Fund No. 702, thereby increasing the cash balance in
Fund No. 702 to $7,843,287, which is irrevocably pledged to CalRecycle for and committed to fund
the costs to close the landfill in accordance with a closure plan approved by CalRecycle; and
2. The City Manager is hereby authorized to execute any and all documents
necessary to obtain a Letter of Credit in the amount of $2.5 million to provide adequate financial
assurance to CalRecycle for the projected costs of closing the landfill in accordance with the
requirements set forth by CalRecycle for the Ukiah Valley Landfill Permit #23 -AA -0019.
PASSED AND ADOPTED this 2nd day of March, 2016, by the following roll call vote:
AYES: Councilmembers Crane, Mulheren, Doble, Scalmanini, and Vice Mayor Brown
NOES: None
ABSTAIN: None
ABSENT: None
Jim Q ?grown, Vice Mayor
ATTEST:
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Kristine Lawler, City Clerk
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