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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) 75080 GR055 001 4 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 75080 GRO55 001 6 , 1998. GRAND COUNTY SOLID WASTE MANAGEMENT SPECIAL SERVICE DISTRICT NO. 1 By Se6retary