RESOURCE MANAGEMENT AGENCY – M. CHAMBLESS

Receive presentation from Waste Solutions Group of San Benito, LLC and approve authorization to sign and submit a Medium Volume Transfer Station Permit application with CalRecycle and direct staff to begin CEQA process (Staff will seek final authorization for the Medium Volume Transfer Station at a future Board Meeting contingent upon State review, CEQA completion, and Waste Solutions Group of San Benito, LLC s agreement to several conditions).

The County owns the John Smith Road Landfill (JSRL), which is operated by Waste Solutions Group of San Benito County LLC (a subsidiary of Waste Connections Inc.), a private solid waste company, under contract to the County. JSRL receives all refuse from San Benito County and refuse from jurisdictions outside the County, primarily Santa Clara County cities. Approximately 80% of the tons disposed at the landfill are from out of county and 20% are from San Benito County.  If at any time the quantity of remaining waste disposal capacity falls below the quantity needed to accommodate 15 years of in-County capacity, the acceptance of out-of-County waste will be suspended by WSG.

The County entered into a New Landfill Operating Agreement with Waste Solutions Group (WSG) on December 21, 2010. The First Amendment to the Operating Agreement was adopted on April 30, 2013 and the Second Amendment adopted on October 17, 2019.  The Second Amendment allows expansion of landfill capacity and WSG is proposing to expand the landfill from the current 95 acres to 483 acres and increase the daily tonnage limit from its current 1000 tons per day to 2300 tons per day. The  Second Amendment also establishes specific responsibilities of the parties to facilitate the approval and development of the landfill expansion.  WSG, as the permit applicant for the expansion, contracted a consultant to prepare an  Environmental Impact Report (EIR) for the expansion to comply with California Environmental Quality Act (CEQA) requirements. The consultant is currently preparing the Administrative Draft EIR.  

A Third Amendment was adopted on June 8, 2021 to allow a permit modification for a slope reconfiguration to increase the design capacity of John Smith Road Landfill, thereby  extending the 15 years of In-County reserve and prolonging the suspension of Out-of-County waste importation.

Suspension of Out-of-County Waste Importation Under Section 3.1 of the Third Amendment, the Contractor agrees to reserve no less than 15 years of In-County waste disposal and shall suspend the acceptance of Out-of-County waste to ensure 15 years of In-County capacity once the 15 year threshold is met.  Suspension of Out-of-County waste shall remain in effect until additional disposal capacity is acquired. If the Final Expansion Approval has not been received within 24 months following the Amendment Effective Date of October 17, 2019 (24 months following to be October 17, 2021), the Contractor may request to dispose of In-County waste at an alternative permitted solid waste disposal facility, at Contractor’s sole cost, and the County shall consider such request in good faith. Such request could ensure the continuation of revenue share to both the County and Contractor from continued importation of Out-of-County waste while a landfill expansion is being pursued.

Prior Direct Transfer Station Proposal Withdrawn & Slope Modification Permit Pursued WSG made a preliminary Direct Transfer Station Proposal to dispose of In-County waste at an alternative permitted solid waste disposal facility. On February 9, 2021, the Board of Supervisors approved authorization to sign and submit a Direct Transfer Permit application with CalRecycle contingent upon state review and WSG’s agreement to several conditions, including the Out-of-County waste importation suspension threshold. Based on comments from CalRecycle, it was determined by WSG that a Direct Transfer permit was not feasible at this time and WSG withdrew the application.

On March 15, 2021, WSG submitted a modification proposal to County staff to extend the 15 year In-County threshold for the Board’s consideration. The proposal was approved and a Third Amendment to the Landfill Operating Agreement was adopted on June 8, 2021. The proposal included a reconfiguration of the final slopes of the current landfill, where, through a reconfiguration of the  final grading contours, approximately 400,000 cubic yards of increased capacity was  created, allowing an additional 284,000 tons to be buried. The additional tonnage space was projected to push the 15 year capacity threshold to a later date in early or mid 2022.  A CalRecycle Solid Waste Facility Permit revision for John Smith Road Landfill was pursued and the Landfill Permit Modification was approved by CalRecycle on August 30, 2021. Revisions included a 4.7% increase in capacity at the landfill and increasing the maximum capacity of 9,354,000 million cubic yards to 9,797,000 million cubic yards.

Extended Suspension of Importation of Out-of-County Waste  WSG’s slope modification proposal intended to prolong the 15 year In-County capacity threshold date from July 19, 2021 to mid-2022. The latest disposal capacity report performed by County Consultant, Lewis Engineering, shows March 30, 2022 as the latest 15 year In-County threshold date. The report is based on aerial surveys performed in December 2021. 

Medium Volume Transfer Station Proposal & Application On November 11, 2021 Waste Connections submitted a new, formal request to begin the CalRecycle permit process to add transfer capability to the John Smith Road Landfill operations. The Transfer Station, if approved by CalRecycle and the County Board of Supervisors, would allow for approximately 100 tons per day of In-County waste to be transferred from John Smith Road Landfill to an alternative permitted solid waste disposal facility. The transfer operations would be located at JSRL and would allow WSG to load solid waste that has already been unloaded at the working face into transfer trailers for shipment to an alternative permitted landfill. The waste to be transferred would be primarily from Recology and RJR trucks.

The Board of Supervisors approval now being sought by WSG is to authorize the RMA Director to sign the Medium Volume Transfer Station permit application for submittal to CalRecycle and to direct staff to begin the CEQA process. Staff will seek final authorization for the Medium Volume Transfer Station at a future Board Meeting contingent upon State review, CEQUA completion, and Waste Connections agreement to several conditions.

As stated previously, under the Third Amendment Section 3.1 WSG may request to dispose of In-County waste at an alternative permitted solid waste disposal facility, at Contractor’s sole cost, which the County is required to consider in good faith. 

The County entered into a New Landfill Operating Agreement with Waste Solutions Group (a subsidiary of Waste Connections Inc.) on December 21, 2010. The First Amendment was adopted on April 30, 2013, the Second Amendment adopted on October 17, 2019 and a Third Amendment was adopted on June 8, 2021.