Supervisors Pursue Sale of Landfills to Agency

The Board of Supervisors voted Tuesday to continue talks over the possible sale of the county’s landfills to the Sanitation Districts of Orange County even though several board members expressed strong misgivings about the proposal.

The sanitation agency wants to buy the landfills for $300 million--a price that at least three supervisors said is far too low.

Still, the board gave negotiators another 30 days to come up with a better deal before it decides whether to seek private sector bids for the system, which consists of four operating landfills and more than 20 closed dumps.

“Opening this up to all qualified buyers . . . will help us establish a market price,” said Supervisor Marian Bergeson. “It’s in this competitive environment that the process can move forward in the most cost-effective way.”

But several city officials and trash haulers raised objections Tuesday to the prospect of a private-sector purchase, saying the move could result in higher landfill fees, less public control and the possible domination of the garbage business by a few large firms.

“The private sector cannot be as responsible an agency as a public agency,” said Santa Ana Councilwoman Patricia McGuigan, who serves on the sanitation districts’ board of directors.

Selling the landfills to a private company would entail a variety of obstacles including a mountain of environmental regulations that could take three to five years to satisfy.

Before offers could even be accepted, the county would have to hire a consultant specializing in mergers and acquisitions to help structure the bidding process. Officials said the consultant’s services could cost $500,000 to $1 million.

Some county supervisors have pushed for a sale to the sanitation districts because the agency is exempted from many environmental regulations and could take control of the system much more easily than the private sector.

Supporters of the districts’ proposal said that combining responsibility for solid and liquid waste under one agency would result in operating efficiencies that could be used to reduce landfill gate fees.

But other supervisors said the $300-million purchase price is unacceptable because it only amounts to the revenues the landfills would generate over 20 years if they stayed in county hands.

“They are basically asking us to give it to them for free,” said Supervisor Don Saltarelli.

Sanitation districts officials said it would be difficult to offer substantially more cash for the system because it would require increases in landfill fees. Just last week, the county reduced its landfill fees from $35 to $27 per ton in an effort to lure back customers who had defected to other jurisdictions that charge lower rates.

In other action Tuesday, the board voted to spend about $2 million to purchase 380 computers for the county’s child welfare system. The purchase is part of a state computerization program for child welfare records that officials said will dramatically improve services.

Larry Leaman, director of the county’s Social Services Agency, said the new computer network will enable social workers to more easily match children with foster homes and help to quickly identify child abusers who move around the state.

Federal and state grants will pay most of the costs for the computers. The system is expected to go on-line in June 1997.