MEMORANDUM

TO: Timothy Navarre, Assembly President

Members, Kenai Peninsula Borough Assembly

THRU: Dale Bagley, Borough Mayor

Jeff Sinz, Finance Director

FROM: Catherine Mayer, Solid Waste Director

DATE: November 26, 2001

SUBJECT: Ordinance 2001-19-25, Appropriating Funds for Central Peninsula Landfill Capital Improvements

The attached ordinance appropriates $350,000 from the solid waste special revenue fund balance to fund 290.94910.00000.47412 for transfer to the solid waste capital improvement account 412.32122.00000.49999. Funds are needed to conduct planning, design, and preliminary work for the construction of a lined landfill and leachate collection and treatment system at the Central Peninsula/Soldotna Landfill.

This project is the first part of a multi-year, multi-million dollar project to expand the landfill to meet stringent federal and state requirements.

Background

The landfill was established in 1969 by the City of Soldotna and operated by the city, or its contractor, until 1974 when the Borough assumed control.

In 1990, the Borough Assembly adopted Resolution of Recommendation 90-41, which included recommendations to utilize the Soldotna Landfill as a regional landfill. Shortly thereafter, the Borough acquired properties adjacent to the existing landfill to assure development and operational area would be available for at least 30 years.

Subsequently, the Kenai and Seward landfills closed, transfer facilities were upgraded, and waste from all areas along the road system (except the Homer area) was routed to Soldotna for disposal. A baling facility and major site improvements were completed at the Soldotna Landfill in 1992 with the second phase of improvements, including construction of a lined cell and leachate collection and treatment system, planned later.

The costly second phase of the improvements has been successfully postponed due to efficient waste management and continued vertical filling of waste over the existing landfill to utilize as much area as possible.

Planned Improvements

Although the current landfill has capacity through 2004, new landfill planning and design must commence as soon as possible. The bulk of the planning and design must be completed by summer 2002 in order to seek grant or loan funds and to allow time for issuance of bonds and/or voter approval, if necessary.

The initial $350,000 for this project includes professional design services, engineering, surveying, soil and geotechnical investigation, project management, site improvements, and other related work for a new landfill lined with an impermeable bottom liner (five-year capacity cell), collection and treatment system for the leachate (water passing through the waste), and related improvements.

Although liner and site development needs can be clearly identified and designed, a leachate treatment and disposal system will require extensive review and research of available options. Leachate management is a major component of the project and additional planning and design funds may be needed next summer.

Funding

Solid waste special revenue funds will be used for the work included in the $350,000 appropriation. As of July 1, 2001, approximately $646,000 remained in the fund due to fund interest earnings, prior operating fund balance, and revenues. Therefore, no general fund transfer is needed at this time.

As stated previously, grant funds will be solicited for the actual construction of the landfill expansion improvements. Previous major solid waste improvements have been funded, in part, by grants and it is anticipated that grants will be available for a portion of the estimated $4,000,000 construction cost.

In addition to grants, we will evaluate other construction funding mechanisms such as borrowing from the Alaska Department of Environmental Conservation Clean Water Fund (loan rate of 1% for a five-year loan); voter approved bonded indebtedness; or other funding.

Future Development

Construction of lined cell #1, leachate system, and related improvements will be the first of on going site development needs. Each landfill cell will have capacity for approximately five years. Therefore, a new lined cell will be constructed possibly every five years indefinitely. Lined cells cannot be "prototyped" (like schools), and it is anticipated that on-going construction costs will not differ substantially from the initial development.

A site plan sheet and aerial photograph are attached for your reference to provide a general idea of planned long-term development.

Attachments