Approve agreement with Kleen Solution Environmental for liquid waste disposal at the Yolo County Central Landfill (Annual Sanitation Enterprise Fund revenue up to $240,000). (No general fund impact) (Lindbo/Kieffer)

Liquid wastes have been a key component of the landfill business model for the last decade.  At the January 12, 2021 meeting, the Board authorized the division to negotiate additional liquid waste agreements for the landfill.  The Kleen Solutions agreement is for a minimum of 3,000 tons and a maximum of 6,000 tons annually of liquid waste and includes rate for low strength, easy to manage liquid waste as well as liquid wastes suitable for addition to composting or digestion.  Kleen Solution historically has brought some of these wastewaters to the landfill, but their volume commitment has increased by 25% recently.  In exchange for this increased commitment, the negotiated rates represent an 11% discount over the current master fee approved rates.  If Kleen Solution fails to bring the required minimum amount, the agreement includes a provision to compensate the landfill for the shortfall.
 
The Kleen Solution Environmental agreement is for a base term of April 4, 2023 through June 30, 2024, with up to two additional 1-year extensions at the option of the County.  Anticipated revenue at the required minimum 3,000 tons annually is $120,000.  If the customer brings the maximum amount of 6,000 tons per year, the revenue will be $240,000.  The revenue collected as part of this agreement is used to cover the cost of properly handling this material and offset the general overhead costs of operating the landfill.
 
For revenue agreements, the signature authority of the Purchasing Agent is $60,000 per year. The estimated minimum annual revenue of the Kleen Solution Environmental agreement is approximately $120,000.  Since this agreement exceeds the signature authority of the Purchasing Agent, it requires Board approval.

County Counsel has approved the agreement as to form.