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18-1114_ORANGE, COUNTY OF_Cooperative Agreement COOPERATIVE AGREEMENT BETWEEN THE CITY OF SAN JUAN CAPISTRANO AND THE COUNTY OF ORANGE REGARDING THE PRIMA DESHECHA LANDFILL THIS COOPERATIVE AGREEMENT ("Agreement") is entered into on this PI day of Avew,her , 2018 by and between the City of San Juan Capistrano ("City") and the County of Orange ("County"), through their respective legislative bodies. The City and County may be herein referred to individually as a"Party" or collectively as the"Parties." The Prima Deshecha Landfill ("Landfill")is a Class III municipal solid waste landfill own by the County and operated by OC Waste & Recycling ("OCWR"). The Landfill site spans portions of unincorporated Orange County, the City of San Juan Capistrano, and the City of San Clemente. The Landfill is separated into five "Zones". Zone l is located within San Juan Capistrano city limits and is currently receiving waste under the Landfill's Solid Waste Facility Permit ("SWFP"),Zones 2 and 3 are for open space, recreational trails and habitat restoration. Zone 4 is currently undeveloped but reserved for landfilling operations. Zone 5 is for the La Pata Avenue extension project, which was completed through the landfill property in August 2016. On November 6, 2001, the Orange County Board of Supervisors'approved Final EIR No. 575 (State Clearinghouse #199041035) for the implementation of the Prima Deshecha General Development Plan ("GDP"). Thereafter, on June 19, 2007, the Orange County Board of Supervisors approved Final Supplemental EIR No. 597 for the Second Amendment to the Prima Deshecha General Development Plan (State Clearinghouse #199041035). The GDP includes a landfill element and established a landfill design capacity and estimated that Zone 1 would reach its design capacity in 2019 based on inflow rate assumptions of up to 4,000 tons per day. However, due to success of state and countywide recycling efforts and with the advancement of additional recycling initiatives to meet the statewide goal to improve waste reduction, recovery, and greenhouse gas emissions, actual inflow rates at the Landfill have been considerably less than estimated as a result, Zone 1 has significant remaining capacity and is not expected to reach capacity until approximately 2050. In light of the remaining capacity in Zone 1, the County is seeking to revise the estimated landfill closure dates previously included in Final EIR No. 575 and Final Supplemental EIR No. 597 from 2019 to the current estimate of 2050 for the Zone 1 landfill development area and from 2067 to, the current estimate of 2102 for the future Zone 4 landfill development area and revise the Landfill's SWFP so they more accurately reflect current estimates of when the two landfill development zones will reach their design capacity. Maximizing the total volume capacity at the Landfill ensures sufficient long term disposal capacity for Orange County and provides a stable rate structure for the cities and special districts within the county for future generations. Addendum No. 6 to Final EIR 575 and Addendum No. 2 to Final Supplemental EIR 597 and the accompanying SWFP revision will not result in increases in the permitted daily tonnage disposal limit, nor expand the Physical Key Design Parameters of the Landfill which are already authorized under the Landfill's General Development Plan and SWFP for purposes of landfill disposal operations. The Parties intend that this Agreement shall be the sole document that comprises the Parties understanding regarding rights and responsibilities associated with Landfill operations. Execution of this Agreement shall ultimately result in; (1) The termination of prior agreements and understandings of the Parties regarding the Landfill as provided in documents such as the 1995 Memorandum of Understanding ("MOU") between City and County and its amendments; (2) Initiation of required actions by City to rescind the Conditional Use Permit ("CUP") as provided in City Resolution 95-12-5-1 and its subsequent amendments; (3) The restatement, in one document, the duties and procedures required to be followed by County to reasonably mitigate the impacts on City caused by operations at the Landfill; (4) The identification of City obligations regarding cooperation with County in its efforts to comply with existing and anticipated legislation and regulation related to landfill operations; and (5) addressing other financial matters of mutual concern required to fully mitigate the impacts associated with continuation of landfill operations through build-out of the Landfill. Although the potential environmental impacts identified for the Landfill have been substantially avoided or mitigated through the identification and adoption of Project Design Features and Mitigation Measures (as more specifically described in the Statement of Findings of Fact approved for the Project), this Agreement is an appropriate means to address additional interests of the Parties beyond the requirements of the California Environmental Quality Act ("CEQA"). This Agreement shall take effect on the date it is executed by both Parties and shall terminate on the Closure Date of the Landfill unless otherwise terminated as provided in Section M. NOW,THEREFORE, THE PARTIES AGREE AS FOLLOWS: A. Definitions 1. Closure Date: The date upon which the Landfill has met the approved fill design as depicted in the General Development Plan for the Prima Deshecha Landfill and has met the requirements found in 40 Code of Federal Regulation (CFR), Part 258, Subpart F. 2 Disposed Municipal Landfill Waste: Amount of non-exempt waste that is ultimately disposed of and buried at the Landfill. Tonnage in this category is tracked and calculated in connection with City's Host Fee as provided in Section G. 3. Diverted Material (also referred to as "Exempt Waste"): Material that is accepted at the Landfill and not intended for disposal at the Landfill. Examples of diverted material include but are not limited to ... soil, crushed asphalt, road base, material recovery facility fines, processed green material, food waste, source separate organics and other materials that can be beneficially used onsite or processed. 4 Host Fee: An annual amount paid to City for Disposed Municipal Landfill Waste 11114 • excluding City generated waste. 5. Landfill: The Prima Deshecha Landfill located at 32250 Avenida La Pata, San Juan Capistrano, CA 92675. 6. Physical Key Design Parameters: The approved landfill design as provided in the General Development Plan for the Prima Deshecha Landfill and its amendments, which identify the Landfill's permitted area, design capacity, max elevation, maximum disturbance limits and waste depth. 7. Project: Landfill operations through build-out as anticipated and analyzed in Final Environmental Impact Report No. 575 for the Prima Deshecha General Development Plan, certified by the Orange County Board of Supervisors on November 6, 2001, and Final Supplemental Environmental Impact Report No. 597 for the Second Amendment to the Prima Deshecha General Development Plan, certified by the Orange County Board of Supervisors on June 19, 2007, and SWFP 30-AB-0019, Addendum No. 6 to Final EIR No. 575/Addendum No.2 to Final Supplemental EIR No. 597, dated September 27, 2018, and any future environmental documentation for revised closure dates for Zone 1 and Zone 4 and the corresponding revision to SWFP 30-AB-0019 through build-out. 8. Mitigation Measures: All County actions taken to mitigate impacts caused by operations at the Landfill including but not limited to efforts taken pursuant to applicable EIRs, past agreements and payment of host fees and equity payments as provided this Agreement. B. Public Health and Safety County agrees it is responsible for the proper operation, maintenance, and monitoring of the Landfill. Landfill operations shall be enforced to ensure public health and safety are protected. County agrees to the following conditions which are provided to achieve the continued environmentally safe operation of the Landfill. 1. Adherence to State Standards The Landfill will continue to be operated in conformity with State regulations for a Class I11 landfill as contained in the applicable Chapters and Sections of the California Code of Regulations ("CCR"), Title 14, Title 23 and Title 27, and will be subject to regulatory enforcement actions, fines and/or other sanctions in the event of nonconformity. Strict adherence to applicable regulatory standards is the legal responsibility of the Landfill operating entity. 2 Surface and Groundwater Quality a. Desiltation basins, surface water quality sampling, and hazardous and toxic materials management procedures will be established and maintained to reduce nonpoint source pollution discharges to "the maximum extent practicable." All applicable "Best Management Practices" shall continue to be implemented at the Landfill. b. All Surface and Groundwater Hydrology and Water Quality Mitigation Measures per Prima Final EIR 575 and Supplemental EIR 579shall be followed. c. The County shall meet all applicable National Pollutant Discharge Elimination System standards. 3. Methane Collection. Migration and Control Systems a. Activities at the Landfill shall be conducted under and in compliance with both: (i) South Coast Air Quality Management District ("SCAQMD") Rule 1150.1; and (ii)the regulations in CCR Titles 14, 23,and 27. b. The County will monitor and maintain the peripheral monitoring probes as required by the Local Enforcement Agency ("LEA") and SCAQMD to detect lateral gas migration. c. The County will monitor and maintain a gas collection system per requirements set forward by SCAQMD and the California Department of Resources Recycling and Recovery("CalRecycle"). 4. Hazardous Waste Exclusion a. The County will continue operating a load check program as identified in CCR Titles 14, 23, and 27. b. Hazardous materials removed shall be stored 'in compliance with State requirements. c. County shall defend, indemnify and hold the City harmless regarding hazardous materials cleanup to the extent permissible by the Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"). This indemnity is intended to operate as an agreement pursuant to § 107(e) of CERCLA, 42 U.S.0 §9607(e), and California Health and Safety Code § 25364, to defend,protect, hold harmless and indemnify City from all forms of liability under CERCLA, RCRA, other statutes or common law from any and all matters addressed in this subsection, and shall be limited to the extent of City's liability. This provision shall survive the expiration of the Agreement. 5. Hazardous Material Training a. The County will ensure that operating personnel are trained in accordance with • CCR Title 8, section 5192(e)(3)or as otherwise requited by law. C. Operating Procedures County will manage Landfill operations in compliance with all applicable law and regulation and will use Best Management Practices ("BMPs") including: 1. Operational Hours: County will comply with operating hours as set in the Landfill's Solid Waste Facility Permit; 2. Waste Disposal: Disposal of waste from the general public at the Landfill will be limited to Orange County residents. Proof of residency or a Waste Disposal Agreement is required for use of the Landfill. Out-of-County waste will only be accepted from commercial haulers that have an importation agreement with the County. 3. Odor and Dust Control: The County will employ BMPs to minimize the impact of the Landfill caused by odor and dust. 4 Visibility and Landscaping: The County will employ operational practices which will minimize the visual impact of the existing Landfill. Such practices may include, use of berms and accelerated front face phasing plans, and strategically placed landscape material. 5. Closure and Post Closure: County will comply with all applicable Federal and State standards associated the closure and post closure of the Landfill upon reaching the approved fill design as depicted in the General Development Plan for the Prima Deshecha Landfill including but not limited to 40 CFR, Part 258, Subpart F. D. Access 1. The designated access route for all waste hauling vehicles traveling to the Landfill through City will be from Interstate 5, via State Highway 74 (Ortega Highway) and Avenida La Pata unless otherwise modified by mutual agreement of the Parties. 2. The County shall prepare and have ready for periodic distribution a statement indicating the designated access route. These are to be periodically handed to each incoming hauler and shall include a map clearly designating the approved access routes. E. Road Rehabilitation and Maintenance The County's responsibility for road rehabilitation and maintenance is satisfied by Section G of this Agreement. The County has no other obligation. a F. Limitation on Volume I. The Landfill operation will be limited to a maximum daily tonnage as specified in the SWFP of Disposed Municipal Landfill Waste. 2. The County will continue its existing practice of monitoring daily tonnages using real time data collected at the fee booths at the Landfill. If the daily tonnage approaches the permitted daily tonnage limit as specified in the SWFP waste will be diverted to other landfills within the County's landfill system. G. Financial Agreement To compensate City for costs or impacts incurred by City which might be associated with the Landfill, and not already substantially avoided or mitigated through the identification and adoption of Project Design Feature and Mitigation Measures (as more specifically described in the Statement of Findings of Fact found in EIR 575 and EIR 597), County agrees to the following compensation to the City: 1. Initial Equity Payment: Within 60 days of execution of this Agreement County agrees to pay City three million dollars ($3,000,000) in funds appropriate for distribution to the general fund of the City as general mitigation for Landfill impacts. 2. Final Equity Payment: County agrees to pay City three million dollars ($3,000,000) in funds appropriate for distribution to the general fund of City as general mitigation for Landfill impacts after the LEA issues the revised SWFP reflecting updated estimated closure dates for Zone 1 and Zone 4. The amount will be paid within 60 days of the SWFP becoming final. (Note: SWFP shall become final once the Statute of Limitations has run on the right to challenge or appeal the LEA's issuance of the revised SWFP.) 3. Host Fee Minimum Guarantee: County agrees to continue Host Fee payments to City, and commits to pay the greater of either an annual minimum payment of eight hundred thousand dollars ($800,000) for ten years on a quarterly basis or $1.50 per ton of Disposed Municipal Landfill Waste, paid in arrears. 4. Host Fee Minimum Guarantee Extension: As consideration for City's renewal of its Waste Disposal Agreement (WDA) with the County, which is set to expire in 2025, County agrees to extend its Host Fee payment of eight hundred thousand dollars ($800,000) for and additional five years, as described above. H. City Obligations As consideration for the mutual rights and obligations set forth in this Agreement, City agrees to the following terms: 1. City agrees to cooperate and support County's effort to revise the estimated landfill closure dates previously included in Final EIR No. 575 and Final Supplemental EIR No. 597 from 2019 to 2050 for the Zone 1 landfill development area and from 2067 to 2102 for the future Zone 4 landfill development area, as reflected in Addendum No. 6 to Final EIR 575 and Addendum No. 2 to Final Supplemental EIR 597 and all future revisions to the closure dates, and accompanying SWFP revisions so they more accurately reflect current estimates of when the two landfill development zones will reach their ultimate design capacity as reflected in the Physical Key Design Parameters. 2. City agrees to cooperate and support County's anticipated effort to initiate concurrent operations in Zone 1 and Zone 4 to further reduce landfill impacts on surrounding communities, and City agrees to cooperate with County's anticipated effort to separate the existing Material Recovery Facility ("MRF") tonnage from landfill disposal tonnage. 3. City agrees to cooperate with other County initiated changes as long as the proposed changes do not expand the Landfill's Physical Key Design Parameters or conflict with this Agreement. 4. City agrees to cooperate and facilitate County's compliance with existing and future landfill operating and permitting legal and regulatory requirements. 5. If the County is unable to perform a term of this Agreement as a result of either a successful third party legal challenge or the County's inability to certify an appropriate environmental document, then the Parties shall enter into good faith negotiations regarding appropriate substitute performance and/or modification to the provisions found in Section G of this Agreement. 6. City agrees to rescind all iterations of the 1995 Memorandum of Understanding between City and County Regarding the Landfill and initiate any required actions necessary to rescind all iterations of the Condition Use Permit (City Resolution 95- 12-5-1)for the Landfill. 7. The City acknowledges that in order for the County to assist all incorporated cities in Orange County in meeting the organic waste diversion requirements as specified in AB 1826. AB 1594 and SB 1383, and future legislation, County may develop operations such as composting/mulching, single stream organics processing, anaerobic digestion facilities, renewable energy facilities, or other alternative projects at the Landfill. if the County proposes the development of these types of facilities at the Landfill to comply with existing or new legislation, the City agrees to support the County's efforts. The County will prepare mitigated negative declarations for these types of facilities to demonstrate CEQA compliance, provided that the County is able to mitigate all potentially significant environmental impacts associated with these facilities to a less than significant level. If the development of these types of facilities at the Landfill cannot be mitigated to a less than significant level, then the County • will prepare an Environmental Impact Report that includes necessary mitigation of identified environmental impacts. Status of City and Indemnification I. The City and County desire to leave no doubt as to their respective roles, and that by entering into this Agreement, City is not thereby becoming an"Arranger" as that term is used in CERCLA § 107 (a)(3), and that it is the County, not the City, which is "Arranging For" the disposal of waste in Landfill which may contain hazardous, toxic, harmful or corrosive substances. County agrees to defend, indemnify and hold the City harmless from any claims related to the disposal of hazardous, toxic, harmful or corrosive substances at the Landfill, regardless of their source as set forth in Section B(4)(c), unless negligently or intentionally disposed of at Landfill by City. 2. Without limiting County's obligations under Section B(4)(c), County agrees to defend, indemnify and hold City, and its officers, employees and agents harmless for all claims, injury, death or damage to property resulting solely from the acts or omissions of the County, its officers, employees, agents for liability arising from any activity of the County, its officers, employees, agents taken pursuant to the provisions of this Agreement. 3. City agrees to defend, indemnify and hold County, and its officers, employees and agents harmless for all claims, injury, death or damage to property resulting solely from the acts or omissions of the City, its officers, employees, agents for liability 1 arising from any activity of the City, its officers, employees and agents taken pursuant to the provisions of this Agreement. 4. If the City's negligence combines with the County's negligence to cause injury, the Parties agree that liability will be apportioned as determined by a court of competent jurisdiction. Neither Party shall request jury apportionment. J. Pursuit of Alternative Waste Management Technologies City agrees to cooperate with County efforts to research, monitor;and consider for implementation at the Landfill the use of alternative waste management technologies to further reduce the amount of waste required for disposal at the Landfill. K. Enforcement/Reporting 1. The County will comply with all applicable Federal, State, and local laws and regulations. 2. If the Landfill's ownership or operating responsibilities are transferred or assigned to any other entity or agency, public or private, the County shall ensure that the obligations identified in this Agreement will also be reassigned so that the terms and 1111 . conditions of this Agreement shall continue in full force and effect. County agrees to provide 120 days' notice to City prior to any assignment. 3. City reserves the right to inspect the records of County and the right to audit and re- compute any amounts deemed payable under this Agreement. Any such audit must be at City expense and take place within thirty-six (36) months of the close of each of the fiscal years. Any additional amount deem due to City must be paid within thirty (30) days following written notice to County by City. This notice shall include a copy of the audit report. L. Termination of Memorandum of Understanding, ConditionallUse Permit,and Their Amendments; Complete Agreement; No Oral Modification The Parties intend that this Agreement sets forth and contains the entire understanding and agreement of the Parties related to operations of the Landfill and the Project. City will take all necessary steps to terminate or rescind all previous landfill related agreements, City Resolutions, Conditional Use Permits and understandings including but not limited to: 1. The September 12, 1995 Memorandum of Understanding (MOU) between the County and the City, and all subsequent amendments. 2. The December 5, 1995 Conditional Use Permit (City Resolution 95-12-5-1) (CUP) between the County and the City, and all subsequent amendments. No oral statement shall in any manner modify the Agreement, and all changes to the Agreement must be in writing and signed by both Parties. M. Miscellaneous Provisions 1. Severability. If any term, provision, covenant, or condition of this Agreement is ruled invalid, void, or unenforceable by a court of competent jurisdiction, this Agreement shall nonetheless remain in full force and effect as to all remaining terms, provisions, covenants, and conditions, to the extent allowable under the California law. 2. Interpretation and Governing Law. This Agreement and'any related dispute shall be governed and interpreted in accordance with the laws of the State of California. This Agreement shall be construed according to its plain language and fair and common meaning to achieve the objectives and purposes of the Parties. The rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not be employed in interpreting this Agreement because all Parties have been adequately represented by counsel. 3. Section Headings. All section headings and subheadings are inserted for convenience only and shall not affect any construction or interpretation of this Agreement. 4. Waiver. The failure of a Party to insist upon the strict performance of any of the provisions of this Agreement by the other Party, or the failure of a Party to exercise its rights upon the default of the other Party, shall not constitute a waiver of that Party's right to demand and require, at any time, the other Party's strict compliance with the terms of this Agreement. 5. Third-Party Beneficiaries. This Agreement is made and entered into for the sole protection and benefit for the Parties and their successors and assigns. No other person shall have any right of action based upon any provision of this Agreement. 6. Successors in Interest. The burdens of this Agreement shall be binding upon, and the benefits of this Agreement shall inure to, all successors in interest to the Parties to this Agreement. 7. Counterparts. This Agreement may be executed by'"the parties in counterparts, which counterparts shall be construed together and shall have the same effect as if all of the parties had executed the same instrument. 8. Jurisdiction and Venue. Any action at law or in equity arising under this Agreement or brought by any Party for the purpose of enforcing, construing, or determining the validity of any provision of this Agreement shall be filed and tried in the Superior Court of the State of California, County of Orange. The Parties waive all provisions of law providing for the filing, removal or change or venue to any other court. 9. Authority to Execute. Any person or persons executing this Agreement on behalf of the City or County warrants and represents that he/she has the authority to execute this Agreement on behalf of his/her entity and to bind that entity to the performance of its obligations pursuant to this Agreement. 10.Attorneys Fees. In the event of a dispute between City and County concerning claims arising out of this Agreement, or in any action or proceeding brought to enforce or interpret any provision of this Agreement, or where any provision hereof is validly asserted as a defense, each Party shall bear its own attorney fees, costs and expenses. Notwithstanding the mutual indemnification obligations set forth in Section I, in the event of a third party CEQA challenge against County and City, County agrees to jointly defend (with County's selected attorney) City and County CEQA findings as long as the Parties interests are aligned and do not conflict. County shall further indemnify and hold City harmless from any legal fees and costs awarded to any plaintiff in a third party CEQA challenge where County defended . I City under this subsection. City shall be responsible for City's CEQA defense costs if County and City interests conflict. 11.Notice. All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and shall be deemed served when delivered personally or on the third business day after deposit in the United States mail, postage prepaid, first class mail, addressed as follows: All notices,demands,requests or approvals to CITY shall be addressed to: City of San Juan Capistrano City Manager's Office 32400 Paseo Adelanto San Juan Capistrano, California 92675 All notices, demands, requests or approvals to COUNTY shall be addressed to: Director, OC Waste &Recycling 300 N. Flower Street, Suite 400 Santa Ana, California 92703 12.Termination for Convenience. Either Party may terminate this agreement for convenience upon 180 days' notice in writing of its intent to terminate the Agreement. However, if County terminates prior to fulfilling its obligation to pay the Guaranteed Host Fee as provided in Sections G(3) and G(4), County's obligation shall survive termination of this Agreement. SIGNATURE PAGE TO FOLLOW y i COUNTY OF ORANGE //// //;Pie By1:0 � • 4._//'►�Date �7� Thomas D. Kou rouli., irector, OC Waste & Recycling APPROVED AS TO FORM: COUNTY COUNSEL ORANGE COUNTY, CALIFORNIA Date //3/Z°�� By Paul M. Albarian, Senior Deputy CITY OF SAN JUAN C PISTRANO Date /0 '/€7' By . • Sieg , City Manager APPROVED AS TO FORM: GENERAL COUNSEL CITY OF SAN JUAN CAPISTRANO, CALIFORNIA aS tet e Date / l ( By . Jeff Ballinger. City Attorney ATTEST; Date ICA 1e 00(€) By , f' „, M Morris, ' Clerk