HomeMy Public PortalAboutRES-CC-1998-06Resolution #06-98
GRAND COUNTY, UTAH and MOAB CITY
JOINT RESOLUTION OF ADOPTION
OF THE MODIFIED
KLONDIKE LANDFILL LOCAL GOVERNMENT GUARANTEE
WHEREAS, Grand County (the "County') is a county of the State of Utah and, as such, may
provide mumcipal-type services to the residents of unincorporated Grand County,
WHEREAS, the City of Moab (the "City") is a municipal corporation of the State of Utah
aua. as such, provides municipal -type services to its residents;
WHEREAS, garbage generated by the residents of unincorporated Grand County and the
City of Moab is delivered to the Klondike Landfill, which is owned and operated by Grand County
Solid Waste Management Special Service District No. 1 (the "District"),
WHEREAS, the Klondike Landfill is operated pursuant to a Class I Landfill Solid Waste
Permit (the "Permit') issued by the Utah Solid and Hazardous Waste Control Board (the "Board"),
WHEREAS, as a condition of the Permit, the District is required to provide financial
assurances regardmg closure of and post -closure care for the Klondike Landfill,
WHEREAS, satisfying financial assurance requirements may be prohibitively expensive
to the District, and that expense may be passed on to the residents of the County and the City,
WHEREAS, the County and the City deem it to be in the best interest of their constituents
to provide a local government guarantee to the Board pursuant to the requirements of Rule 315-309-
3(8) of the Utah Administrative Code (hereinafter "Rule"), thereby facilitating the Distnct's
satisfaction of the financial assurance requirements and significantly reducing the cost that might
be passed on to the residents of the County and the City,
WHEREAS, the County and the City previously submitted a local government guarantee
which was rejected by the Executive Secretary of the Board; and
WHEREAS, the local government guarantee has been modified as requested by the
Executive Secretary and the City and the County desire to execute and deliver the modified local
government guarantee to the Board through its Executive Secretary.
NOW, THEREFORE, be it resolved by Grand County and by the City of Moab as follows
1 That the County and the City shall provide a guarantee, m accordance with the
requirements of Rule 315-309-3(8), to the Board and its Executive Secretary m satisfaction, or
75115 GRO55 001
partial satisfaction, of the District's financial assurance requirements concerning closure of and post -
closure care at the Klondike Landfill.
2. That the Chair of the Grand County Council and the Mayor of the City of Moab are
directed and empowered to sign a Guarantee in the form attached hereto and to deliver the Guarantee
to the Board through its Executive Secretary.
3. That the signatures of the Chair of the Ground County Council and of the Mayor of
the City of Moab be attested by the appropriate officials of the County and of the City, respectively,
before the Guarantee is delivered to the Board.
4. That approval of the Guarantee was placed upon the agenda of a meeting of the Grand
County Council and upon the agenda of a meeting of the Moab City Council prior to action by those
bodies and that this Resolution was adopted, and the execution and delivery of the Guarantee was
approved, in compliance with the Utah Open and Public Meetings -Act, and that the Guarantee be
and hereby is binding upon both the County and the City in accordance with its terms.
5. That this Resolution shall take effect immediately upon its passage.
APPROVED AND PASSED by the Grand County Council and by the Moab City Council
on the dates set forth below.
AttestZaJ , P *.it erNi1
75115.GR055.001 2
GRAND COUNTY
By:
Title:
Date:
CITY OF MOAB
By: p'Q4e(A��, ~o/1/c--
Title: /%2,1,40*
Date: 3--. -98'
KLONDIKE LANDFILL
LOCAL GOVERNMENT GUARANTEE
(Modified)
This Guarantee is made by Moab City, a Utah municipality of the thud class and Grand
County, a Utah County ("Guarantors") to guarantee the performance of Grand County Solid Waste
Management Special Service District No 1 ("District") to the Utah Solid and Hazardous Waste
Control Board (`Board") through its Executive Secretary, effective as of the last date set forth below
the signatures appearing below.
RECITALS
A Guarantors are, respectively, a county and a municipality organized in accordance
with and subject to the requirements of applicable state laws.
B The District is a special service district organized in accordance with the provisions
of the Special Service District Act, UTAH CODE ANN §§ 17A-2-1301 et seq.
Utah
C The Board has authonty to license and regulate landfills operating in the State of
D The Distnct owns a landfill in Grand County, Utah, which is commonly referred to
as the "Klondike Landfill'
E The Distract operates the Klondike Landfill pursuant to a Class I Landfill Solid Waste
Permit issued by the Board with an effective date of October 31, 1996 and an expiration date of
October 31, 2001 (the "Permit"). It is expected that the Permit will be extended, or a new permit
issued, effective as of the expiration date of the Permit
F Section IV Paragraph A of the Permit, entitled "Financial Assurance" requires the
District, as permittee, to submit a financial insurance mechanism for approval by the Executive
Secretary of the Board The financial assurance fund is to "be adequately funded to provide for the
cost of closure [of the Klondike Landfill] at any stage or phase or anytime dunng the life of the
landfill, and must be fully funded within five years of the date waste is first received at the landfill."
G. Rule 315-309 of the Utah Administrative Code (hereinafter "Rule") outlines the
financial assurance requirements that must be met by the owner of a landfill, and Rule 315-309-3
outlines alternative financial assurance mechanisms
H. Without significantly increasing its tipping fees, the Distnct will not be able to satisfy
the requirements of any of the financial assurance alternatives other than alternative (8) "Local
75080 GROSS 001
Government Guarantee" Alternative means of satisfying the financial assurance requirements, such
as through bonding or insurance, if available, will require a significant capital outlay which will not
go toward the closure and post -closure maintenance fund
I The Distnct shall set aside, on an annual basis, a sum as determined by the Distnct's
engineers to satisfy Klondike Landfill closure and post -closure care requirements as they arse.
However, Board regulations require that, absent this Guarantee, the fund estabhshed by the District
for closure and post -closure maintenance of the Klondike Landfill be fully financed within five years
(by March, 2002), even though it will not be necessary to expend most of those funds until much
later Fully fundmg closure and post -closure care of the Landfill will cost an estimated Three
Hundred Thousand Dollars ($300,000.00).
J Any significant increase in the tipping fee at the Klondike Landfill must be passed
on to the ultimate consumers, those persons whose garbage is delivered to the Landfill, the residents
of Grand County and the City of Moab
K Through the execution and delivery of this Guarantee by Guarantors, the deposits into
the closure and post -closure fund made by the Distract and related costs over the next five years will
be lower than with any other alternative means of satisfying financial assurance requirements
applicable to the Klondike Landfill, resulting in a lower cost to the users of the Landfill
L Guarantors deem it to be in the best interest of their constituents to execute and
deliver this Guarantee
M Guarantors previously delivered a Guarantee to the Board through its Executive
Secretary At the request of the Executive Secretary, two references to the "Board" in paragraph 4b
have been changed to "Executive Secretary" and former paragraph 9, referring to legal fees and
mediation, has been deleted Otherwise, the following Guarantee is the same as the Guarantee
previously delivered to the Executive Secretary
GUARANTEE
For the reasons set forth above, and other good and valuable considerations, the receipt and
adequacy whereof is hereby acknowledged, the undersigned Guarantors agree as follows
1. Guarantors agree that, if the Distract fails to perform closure or post -closure care
required for the Klondike Landfill, Guarantors will (i) perform, or pay a third -party to perform,
closure or post -closure care as required, or (u) establish a fully funded trust fund as specified in Rule
315-309-3(3) in the name of the District Guarantors shall, in their sole discretion, select the
guarantee option
2 The failure of any Guarantor to make any payment or to otherwise perform as
required by this Guarantee shall not relieve the other Guarantor of any obligation hereunder The
75080 GROSS 001 2
Board may proceed against one or both of the Guarantors, in its discretion, to the limits of each
Guarantor's respective guarantee. Should, however, either Guarantor pay more than its
proportionate share of closure or post -closure maintenance costs as limited by this Guarantee, that
Guarantor may recover such excess payment from the other Guarantor.
3 Each Guarantor agrees to be responsible for costs up to one-half of the anticipated
closure and post closure expenses, which are currently estimated to be no more than $295,000 00
for the initial Permit penod
4 Subject to the Guarantors' nght to cancel, in accordance with the requirements of
Rule 315-309-3 (8) (d) and (e), this Guarantee shall continue in force and the liabilities of Guarantors
shall remain at all tunes undiminished, umeleased and undischarged for the five year duration of the
District's landfill Pernut, which Permit expires on October 31, 2001, and for such reasonable pei i, d
of time thereafter as is necessary to complete closure and post -closure care for waste deli- :red to the
Klondike Landfill dung the duration of the Pernut
a. Thereafter, it is understood that the Guarantors will renegotiate In good faith
successive guarantees with the District upon the expiration of each five year permit and to the extent
necessary to permit the District to comply with Board requirements
b. Notwithstanding the above provisions, this Guarantee shall terminate
inuneulately upon certification by the Executive Secretary that the Distnct has sufficient reserves,
or is otherwise in compliance with all Executive Secretary mandated closure and post -closure
financial responsibility requirements without relying upon this Guarantee Upon such certification,
the Guarantors shall be released from any further costs, liability or damages, including costs of
defense and/oi -nes or penalties imposed by any state or federal entity, however denominated
c. In executing and delivering this Guarantee, Guarantors are specifically relying
upon the District Acknowledgment attached hereto and, in particular, the District's commitment to
place funds in a Klondike Landfill closure and post -closure care fund as provided in the
Acknowledgment
5 Guarantors recognize that the District is currently seeking a modification of the
Permit including, among other things, a modification to allow the District to satisfy its financial
assurance obligations through the use of this Guarantee Guarantors understand, acknowledge and
agree that this Guarantee shall apply to the Permit, including all amendments, modifications,
revisions and extensions, except as expressly noted in paragraph 4 above
6 Guarantors acknowledge that they will be required to meet the requirements of the
Local Government Financial Test as provided in Rule 315-309-3(7) for this Guarantee to be
effective Guarantors agree to provide, in a timely manner, such documents and information to the
Executive Seci c tary as may reasonably be required to demonstrate that each Guarantor meets the
75080 GR055 001 3
requirements of the Local Government Financial Test Guarantors acknowledge that applicable
provisions of Rule 315-309-3(7) and (8) are incorporated by reference as part of this Guarantee
7 Guarantors recognize and acknowledge that, but for this Guarantee, the Board,
through its Executive Secretary, would not approve the District's Financial Assurance Plan for
Klondike Landfill closure and post -closure care
8. Guarantors agree to execute such additional documents evidencmg this Guarantee as
may reasonably be required by the Board or the Executive Secretary
9 This Guarantee shall be construed and enforced in accordance with the laws of the
State of Utah
10 The Board, through its Executive Secretary, may reject this Guarantee, in which case
this Guarantee shall be retumed to Guarantors and Guarantors shall not thereafter be liable
hereunder
11 By signing below, the mdividuals representing Grand County represent and warrant
to the Board and the Executive Secretary that the execution and dehvery of this Guarantee has been
duly authonzed by a Motion or Resolution adopted by the Grand County Council and those
individuals signing for the City of Moab represent and warrant to the Board and the Executive
Secretary that this Guarantee has been approved by a Resolution or Motion duly adopted by the
Moab City Council.
IN WITNESS WHEREOF, and by authority duly vested, the undersigned have caused this
Guarantee to be executed as of the dates set forth below.
GRAND COUNTY, a County and
Political Subdivision of the State of Utah
By.
Chair, Grand City CouncdQ8
Date: 20 I
Attest c.-421,e,i4)
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Attest
Rachel Ellison
City Recorder
5
CITY OF MOAB, a Municipal
Corporation
By. ‘01:0464Pe?--,7(2X�F /
Karla flancock, Mayor
Date- 3-r946—Fir
Accoitm
UtaVazardous Waste Control
Board
By
Execfittve Secre
Date /0
DISTRICT ACKNOWLEDGMENT
Grand County Solid Waste Management Special Service Distract No 1 (the "Distract"), as
an inducement to the execution and delivery of the foregoing Guarantee by the Guarantors named
therein, represents and warrants to the Guarantors as follows
1 The District will instruct its engineer, on an annual basis, to calculate and determine
the amount which should, m the engineer's best Judgment, be set aside in a closure and post -closure
care fund so that sufficient funding will be available for closure and post -closure care activities at
the Klondike Landfill as those activities are undertaken
2 The Distnct shall deposit into the fund identified in paragraph 1 immediately above
such amount, on an annual basis, as may be determined by the District's engineer as set forth in
paragraph 1
1 The Distract agrees that funds placed in the closure and post -closure care fund shall
not be used for any purpose other than the closure and post -closure care of the Klondike Landfill and
portions thereof
4 The Distnct recogmzes and acknowledges that, but for the foregoing commitments
of the Distract, the Guarantors would not approve, execute and deliver the Guarantee
5 The mdividuals signing below represent and warrant that their signatures have been
duly authonzed by a Resolution or Motion duly adopted by the Administrative Control Board of the
Distnct
DATED this Ai day of
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, 1998.
GRAND COUNTY SOLID WASTE
MANAGEMENT SPECIAL SERVICE
DISTRICT NO. 1
By
Se6retary