LAKE COUNTY — Long referred to as the “cash cow” for the Lake County Public Services Department Integrated Waste Management Division, the East Lake Landfill, which has not implemented a rate increase to the public in nearly 17 years as revenues were sufficient to fund operations and maintain and increase regulated reserves is facing a significant financial shortfall.
Simply, the landfill generates revenue when it receives payment from the public, businesses, and the contracted waste haulers to dispose of refuse. The less refuse disposed of, the less revenue the landfill receives. The landfill does not receive revenue from recyclable materials.
The continuing recession has greatly impacted the amount of refuse disposed over the last three years in a number of ways. With the decrease in new home construction, fewer home demolitions, remodels, and other waste-generating projects occurring, coupled with successful recycling programs that divert materials from the landfill, revenues are down significantly.
Revenues at the East Lake Landfill reached a high of $2.5 million in 2005/06, which was $500,000 above the average revenue and expense for the preceding 10 years. This increase in revenue enabled the Integrated Waste Management Division to continue to increase federally-mandated financial reserves to be used in closing and maintaining the landfill after closure, as well as increase “undesignated” reserves, which were intended for landfill expansion and costly equipment purchases.
Today however, annual revenues are projected to be at $1.5 million, which is $500,000 less than the annual average from 1995 to 2005. During the past three years, this has resulted in a $1.5 million dollar budgetary shortfall, requiring the Integrated Waste Management Division to utilize their “undesignated” reserves to achieve the Lake County Board of Supervisors-directed structurally balanced budget. This reserve is now largely depleted with no way to replenish it without additional revenues.
To protect human health, air quality, surface and groundwater quality, wildlife and workers, landfills are highly regulated and costly to operate to ensure safety.
Operational and regulatory compliance costs are not tied to the amount of refuse (tonnage) received but rather, tied to the age of landfills, the size, the technologies used, the equipment used, etc. Regardless of the amount of refuse received (and revenue generated), the costs to operate a landfill are considerable – even after they are closed – as all landfills are required to have funds reserved to test and monitor for 30 years after closure. The regulatory and monitoring costs continue to rise each year.
New regulations such as AB 32, the Green House Gas (GHG) reduction bill, could trigger the installation a $3 million landfill gas system in the next year or two, and other proposed storm water monitoring, sampling, and reporting requirements could add another $30,000 to $50,000 annually to the $400,000 average already being spent for sampling, monitoring, reporting, etc. The Integrated Waste Management Division of the Public Services Department does not have the reserves or additional funds to cover these costs. Additionally, legislation and regulatory requirements are moving toward a “Zero Waste” future with a goal of making landfills obsolete and unable to generate revenue to pay for the required air, water and gas monitoring, equipment, and ongoing operations.
Residents and businesses in Lake County are encouraged to attend the meeting or submit comments in write for discussion before the Lake County Board of Supervisors that will include options for raising fees at the landfill, which will be passed through to curbside residential and business customers, temporarily importing refuse from the Ukiah Valley to make up lost revenue, eliminating subsidies for disposal and recycling of appliances, HazMobile, sharps and other public programs.
Also to be discussed is how a “zero waste” future ? where nothing is disposed in a landfill – will generate income to cover costs, while at the same time keeping the present programs cost-effective.
The item will be discussed before Lake County Board of Supervisors at 9:45 a.m. on May 10.
The full agenda item can be reviewed at the Board of Supervisors office at the Lake County Courthouse, 255 North Forbest Street in Lakeport. Written comments can be submitted to your elected Board of Supervisor representative, e-mailed to recycling-makes-cents@co.lake.ca.us or mailed to Public Services Department at 333 Second Street, Lakeport, Calif. 95453.
