Sanitation Districts to Bid $300 Million for Landfills

Setting the stage for a mammoth sale of government property, the county sanitation board voted Wednesday to bid $300 million for Orange County’s landfill system.

The deal would mark by far the largest sale of county assets to date in its effort to recover from bankruptcy.

“It’s the best option for the citizens of Orange County in terms of cost and stewardship,” said Blake Anderson, assistant general manager of the Sanitation Districts of Orange County.

The Board of Supervisors is expected to decide later this month whether to accept the offer. The districts also must receive assurances from most Orange County cities that they will direct their garbage to the landfills if the agency takes control.

Under the plan, the agency would pay $15 million a year for 20 years to take control of the entire landfill system, which consists of five active and 21 closed dumps as well as a recycling program. The operating landfills are considered one of the county’s most valuable assets because of the revenue they generate.

A final decision has yet to be made on how to finance the purchase, but the districts might borrow against future landfill revenue.

The county’s Integrated Waste Management Department would be folded into the sanitation district. Officials said combining the agencies would result in cost savings that could be used to reduce landfill gate fees.

“Advocacy for [the sale] will come from residents who want their trash bill to go down,” Supervisor William G. Steiner said.

If the sale takes place, a new governing board would be established to run the system. The board would be made up of representatives from cities, the county and special districts.

Although the districts’ board of directors approved the plan Wednesday, several members argued strongly against it. Critics have questioned the financial benefits of the sale.

“This process is 100% driven by the bankruptcy,” said Victor Leipzig, a Huntington Beach councilman. “It’s not a structure to improve the environment of Orange County.”

The sewer board and county entered into exclusive negotiations over a possible sale in late November.

At the time, some supervisors and activists opposed the talks, saying they would prefer to give both the public sector and private companies a chance to bid for the landfills.

But most supervisors said they doubted a private firm would be willing to take control of both the profitable operating landfills in Brea, Irvine and San Juan Capistrano as well as the closed dumps, which require costly maintenance.

Backers of the sale also said it makes sense for one agency to handle both solid and liquid waste.

The county has moved to sell various assets since it declared bankruptcy Dec. 6, 1994. But a landfill sale would be by far the most ambitious. Up to now, the county has unloaded various surplus buildings and parcels totaling about $16 million.

The county already turned to the landfills to help deal with the financial crisis by accepting trash from haulers in Los Angeles and San Diego counties.