FISCAL IMPACT ANALYSIS For the SALTON CITY SOLID WASTE SITE. September 2011

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1 For the September 2011

2 FOR THE PREPARED FOR: County of Imperial Imperial County Planning and Development Services 801 Main Street El Centro, CA ICF International 9775 Businesspark Avenue, Suite 200 San Diego, CA Mr. Jim Wilder PREPARED BY: Howes, Weiler and Associates 2888 Loker Avenue East, Suite 217 Carlsbad, CA Mr. Stan Weiler, AICP September 2011

3 TABLE OF CONTENTS EXECUTIVE SUMMARY...1 INTRODUCTION...2 PURPOSE... 2 PROJECT DESCRIPTION GENERAL METHODOLOGY AND ASSUMPTIONS GENERAL FUND EXPENDITURES COUNTY ADMINISTRATION FIRE AND EMERGENCY SERVICES LAW ENFORCEMENT PUBLIC WORKS ROADS WATER SERVICE WASTEWATER SERVICE PARKS AND RECREATION SCHOOLS SUMMARY OF COMBINED FISCAL IMPACTS GENERAL FUND REVENUES HOST FEE PROPERTY TAX CONCLUSION...31 CONTRIBUTORS TO THE...33 APPENDICES...34 APPENDIX 1 GENERAL FUND SUMMARY APPENDIX 2 LETTER OF EXECUTED AGREEMENT FOR LANDFILL SITE APPENDIX 3 PROJECT FAIR SHARE INTERSECTION TRAFFIC CONTRIBUTIONS APPENDIX 4 - TRA APPENDIX 5 SCSD FIRE DEPARTMENT STATISTIC FOR LIST OF EXHIBITS Exhibit 1 Project Location... 6 Exhibit 2 Project Area Boundaries Map... 7 LIST OF TABLES Table 1 MSW Phasing... 8 Table 2 Proposed Manpower for Operation... 9 Table 3 - County Administration Expenditure Table 4 Project Impact on Fire Department Table 5 Fire and Emergency Service Cost per Call Table 6 Law Enforcement Table 7 Impacts to the County General Fund Table 8 Host Fee Table 9 Taxable Site Improvements Table 10 Estimated Possessory Interest Property Taxes Table 11 County Revenue Table 12 Annual Fiscal Impact iii

4 EXECUTIVE SUMMARY The fiscal impact analysis for the Salton City Solid Waste Site demonstrates that this project will not create a financial burden on facilities and services of the County of Imperial. The annual expenses for public services provided to the proposed project area are estimated to be $15,446 in the year 2012 escalating up to $17,926 by the year The yearly revenues to be provided to the County are estimated to be $2,000,000 in 2012, increasing to $6,354,559 in Therefore, the revenues generated by Salton City Solid Waste Site are expected to exceed the expenditures from the general fund to provide services to the proposed project. The amount of the yearly surplus is expected to total over $1,984,554 per year beginning in This amount will increase up to $6,336,633 at full implementation of the project in the year Additionally, Burrtec Waste Industries has already provided the County with lump sum payments totaling $2,000,000. If the proposed project is approved, an additional $3,000,000 in two lump sum payments of $1,500,000 will be provided to the County by the year 2012, after which a host fee will be charged based on the tons per day delivered to the landfill. The host fee is anticipated to generate $500,000 in 2012, up to $2,030,012 by the year 2015 and increase to approximately $6,350,012 per year by At full implementation of the landfill project in 2022, the anticipated cumulative revenue generated by the proposed project will be $63,015,123. The use of these funds is not restricted and will be included in the County s General Fund. Distribution of these funds will be determined after consultation with the various County Departments and ultimately approved by the County Board of Supervisors. 1

5 INTRODUCTION This section of the Fiscal Impact Analysis (FIA) provides the purpose of the report, an overview of the project, and the methodology for the FIA approach. PURPOSE The purpose of this report is to provide the County of Imperial with an estimate of the fiscal impacts associated with the development and operation of the Salton City Solid Waste Site expansion project. The Fiscal Impact Analysis (FIA) is required by the County of Imperial as a part of the Conditional Use Permit process to enable the County to ascertain whether additional conditions should be placed on the landfill expansion project to ensure that appropriate funding is provided for impacts upon County facilities and services. The intent of the FIA is to identify the potential revenues received by the County and the expenditures for services provided, then to identify the fiscal impacts created by the proposed project. It is not the intent of the FIA to suggest the fair distribution of any funds received. The distribution of funds received from the proposed project will be determined through the budgetary process for each County Department. PROJECT DESCRIPTION 1 The Salton City Solid Waste Site (landfill) is a Class III non-hazardous solid waste landfill located southwest of the community of Salton City in Imperial County, California see Exhibit 1 on page 6. The facility is owned by Imperial County. Currently, the landfill is approaching its permitted closure date (September 2011) and the operator, Burrtec Waste Industries, Inc. (BWI) has prepared an expansion plan for the site that would increase the existing landfill s disposal area within its 320-acre property see Exhibit 2 on page 7. 1 The project description provided in this section was obtained from the Initial Study prepared by ICF International dated July A complete detailed project description can be found at the Imperial County Planning Department 2

6 The existing landfill disposal area is 7.8 acres and additional acres have been disturbed for borrow areas and roads. The landfill is currently permitted to allow 50 tons per day (tpd) and BWI s proposed revisions to the site s Solid Waste Facility Permit (SWFP) would increase the permitted daily capacity in a phased plan that would allow up to 6,000 tpd by The entire 320-acre site is covered by the existing SWFP. The proposed project would extend the facility s life to an expected 28 years in order to meet the current and future waste disposal needs of Imperial County as well as other surrounding counties in the region. The proposed project is a major revision to the SWFP and requires a Conditional Use Permit (CUP) from the County of Imperial as well as other permits from regulatory agencies. With implementation of the proposed project, the project site would continue to serve as a California Class III non-hazardous Municipal Solid Waste (MSW) landfill and would continue operations related to the disposal of nonhazardous MSW material similar to those currently being performed. Changes that the proposed project would provide include: expansion of the disposal area footprint; increase in the height of the landfill; increase in the total site capacity; extension of the landfill s life; relocation of the existing waste currently covered within the existing 7.8-acre landfill; increase in the daily incoming waste tonnage; construction and usage of the composite-lined landfill cells for waste disposal; and increase in days and hours of operation. 3

7 The height of the proposed project would be increased to about 250 feet above natural ground surface (218 feet above MSL) from 45.5 feet above natural ground surface (15.5 feet above MSL). The new landfill configuration would accommodate approximately 65 million cubic yards of waste. The increase in permitted daily capacity would be implemented over time in a phased manner. Initially, the capacity would be increased to 1,000 tpd by the year 2012 with an interim phase of 3,000 tpd by 2017, reaching a maximum 6,000 tpd by 2022 until closure. The timing of the phased increase in maximum tpd would depend on the amount of MSW generated in the region and Burrtec Waste Industries (BWI) success in securing contracts with other counties to accept their MSW. Based on the average daily throughput of 1,000 tpd for the first 5 years, then 3,000 tpd for the next 5 years, and 6,000 tpd thereafter, the lifespan of the landfill has been estimated to be 28 years. Assuming that the new operations begin in the year 2012, the site is projected to be filled by the year Table 1 on page 8 shows the anticipated municipal solid waste that is expected to be deposited at the landfill. This table provides the MSW maximum tonnage amounts anticipated based on daily, monthly and yearly rates. The amounts were used consistently within this Fiscal Impact Analysis report as well as the reports supporting the CEQA Environmental Impact Report. These amounts also assume 30 days of operation per month. 4

8 Table 2 on page 9 provides the anticipated personnel need at the landfill to support the proposed growth. This table provides the number of employees for each job category based on tonnage threshold amounts. As specified in the Landfill Site Lease and Operations Agreement 2, Burrtec Waste Industries has agreed to provide for a hiring preference for Imperial County residents for all jobs required for the operation of the Imperial county solid waste system. 2 Landfill Site Lease and Operations Agreement approved December 23, 2008, page 1 5

9 Exhibit 1 Project Location Source: ICF International Draft EIR Salton City Landfill Expansion November

10 Exhibit 2 Project Area Boundaries Map Source: ICF International Draft EIR Salton City Landfill Expansion November

11 Table 1 MSW Phasing Salton City Solid Waste Site - MSW Phasing Year MSW Tons per Day MSW Tons per Month MSW Tons per Year ,500 18, ,500 18, ,500 18, ,500 18, ,000 30, , ,500 45, , ,000 60, , ,500 75, , ,800 84,000 1,008, ,000 90,000 1,080, , ,000 1,260, , ,000 1,440, , ,000 1,620, , ,000 1,800, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, , ,000 2,160, assumed operational days per month Source: Initial Study for the Salton City Landfill Expansion Prepared by ICF International - dated July

12 Table 2 Proposed Manpower for Operation Salton City Solid Waste Site - Proposed Employment Number of Employees 1,000 Tons Per Day Operation Job Category 1 Site Supervisor 1 Lead Operator 4 Operator 1 Scale Attendant 1 Scale Attendant/Load Checker 1 Load Checker 2 Spotter 6 Laborer 1 Mechanic/Oiler 18 Total 3,000 Tons Per Day Operation Number of Employees Job Category 1 Site Supervisor 2 Lead Operator 10 Operator 3 Scale Attendant 2 Load Checker 2 Spotter 9 Laborer 1 Mechanic/Oiler 2 Mechanic 32 Total 6,000 Tons Per Day Operation Number of Employees Job Category 1 Site Supervisor 6 Lead Operator 13 Operator 3 Scale Attendant/Load Checker 6 Spotter 13 Laborer 2 Oiler 3 Mechanic 47 Total Source: SCSWS - JTD; Prepared by Vector Engineering dated November

13 This section estimates the revenues and expenditures for the County of Imperial resulting from the proposed implementation of the SCSWS. Projected General Fund revenues and General Fund expenditures from the County s FY budget are used in the analysis unless otherwise noted. GENERAL METHODOLOGY AND ASSUMPTIONS The FIA provides an estimate of the fiscal effect of the proposed Salton City Solid Waste Site on the annual revenues and expenditures of the County s general fund. This study will focus on the revenues and expenditures as a part of the future operations for the proposed project. The proposed landfill expansion project is a unique development proposal with fiscal characteristics that are different from traditional commercial or industrial development. This uniqueness requires the preparation of a FIA using the case study methodology. The case study methodology allows for an analysis of the fiscal impacts based on the specifics of the project itself and requires consultation with both the project applicant as well as the local authorities to ensure the accuracy of the assumptions used in the report. The FIA uses many assumptions throughout the analysis. These assumptions and sources of information are provided within the text as well as in the spreadsheets contained in FIA. Changes to the assumptions will affect the individual calculated values. However, due to the large difference between the revenues expected and the expenditures for services, any minor change to the assumptions is anticipated to result in a minor percent change in individual calculations, without affecting the overall conclusions. 10

14 GENERAL FUND EXPENDITURES This section projects the impact the project will have on General Fund expenditures. Total general fund expenditures projected for FY is $214,091,715. The analyses for expenditures are based on the following categories: County Administration, Fire and Emergency Services, Law Enforcement which total $69,115,434. These are the primary public services that will be provided to the proposed project site that involve General Fund expenditures. COUNTY ADMINISTRATION Expenditures on general government services as a part of the County Administration go toward the costs of running a government. General government costs are assumed to benefit all types of land uses including landfill operations. The Countywide expenditure for general County Administration is $23,213,204. This includes the identified funding for general government services as provided in Table 3 on page 12. An average cost per acre is used to determine impacts on general County Administrative services. This cost was determined by dividing the County Administration expenditures of $23,213,204 by the total acres in the county (2,942,080 acres). This resulted in an average cost per acre of $7.89 for the year The $7.89 per acre cost was then multiplied by the 320 acres encompassing the project site. This resulted in a fiscal impact of $2,525 for fiscal year as shown in Table 7 on page 25. As a conservative estimate, this amount is escalated at a rate of 1.5% per year for the life of the project. 11

15 Table 3 - County Administration Expenditure County Adminstration - FY Expense Category Costs Notes (1) Assessor $2,515,635 Page 16 General Fund - Operating $48,183 Page 19 Auditor - Controller $1,985,852 Page 21 Board of Supervisors $719,772 Page 23 Administrative Office $1,407,099 Page 46 Public Assistance $90,000 Page 79 Clerk of the Board $311,711 Page 155 Registrar of Voters $642,099 Page 159 County Clerk and Recorder $843,182 Page 162 County Council $2,687,424 Page 168 Planning - Building Inspection $1,594,293 Page 227 Planning Commission $82,209 Page 228 Planning Department $1,775,252 Page 230 P.W. Groundwater $21,053 Page 233 Public Administrator $783,583 Page 259 P. W. Facilities Management $5,332,117 Page 266 P.W. Surveying & Engineering $801,515 Page 268 Tresuruer - Tax Collector $1,572,225 Page 324 Total Cost $23,213,204 Acres Served 2,942,080 (2) Average Cost per Acre $7.89 (1) (2) Source: Total Cost to County before other funding sources are included. Appendix C of the Imperial County Annual Budget for FY approved September 7, Source: Imperial county website - 4,597 squre miles in the County multiplied by 640 acres in a square mile. FIRE AND EMERGENCY SERVICES 3 Fire and Emergency Services are provided by the Salton Community Services District Fire Department. The Salton Community Services District (SCSD) was originally formed as the Desert Shores Community Services District. As various annexations were occurring in the area in 1957, the name was changed to replace Desert Shores with the name Salton. 3 Source: Description of Fire and Emergency Services was obtained from the Salton Community Services District website - December 2010 and the Draft EIR November

16 On October 27, 2005, the Local Agency Formation Commission (LAFCO) of Imperial County adopted a Resolution providing Salton Community Services District the following seven (7) services: 1. Collect, treat, or dispose of sewage. 2. Collect, transfer and dispose of solid waste. 3. Provide Fire protection. 4. Acquire, construct recreation facilities. 5. Organize, promote community recreation. 6. Acquire, construct, and improve lighting and landscaping. 7. Provide emergency medical services. The SCSD Fire Department service area covers the Border Patrol Check Point and Highway 78 to the south, the San Diego County Line to the west, the Riverside County Line to the north, and the Salton Sea to the east. This area also includes the Salton Sea Beach Development, Ocotillo Wells and the Torres Martinez Indian Reservation, each of which has a mutual aid pact with the district even though they maintain their own Fire Departments. In addition to responding to fire-related emergencies, the fire department responds to traffic collisions as well as medical emergencies to bridge the time gap until an ambulance/emt arrives. Salton Community Services District operates two fire stations: one in Salton City and one in Desert Shores. An agreement for Fire Protection Service exists between the Imperial County Fire Department and Salton Community Services District. Training is administered for no less than four hours each month as required by the State Fire Marshall, state and federal regulations, and mandated in the fire services agreement. 13

17 Each station has two Fire Engines. The District owns one and the other one is provided by the Imperial County Fire Department as part of the fire services contract with the county. The district has a Rescue Vehicle, which is stationed with the Firefighter that is on call for the evening to ensure that he is able to respond directly to an emergency call without having to go to the Fire Station first to pick up a vehicle. This provides for a much faster response time. In addition to responding to fires and traffic collisions, Volunteer Firefighters respond from their homes or workplace to the scene of medical emergencies to bridge the time gap until an ambulance/emt arrives. All Firefighters have been trained in First Aid, CPR for adults, children and infants as well as in the use of an automated external defibrillator for victims of sudden cardiac arrest. All Firefighters must also attend mandatory training on the 2 nd and 4 th Saturday s of the month. At the present time, the Fire Department has 15 volunteer firefighters consisting one Administrator/Fire Fighter, one Fire Chief, one Fire Marshall, 2 Captains and 10 firefighters. Fire Department personnel are available seven days a week, 24 hours a day to respond to emergencies. Even though the members of the Fire Department are volunteers, they use their own vehicles, auto insurance, gas, etc., the Board of Directors has authorized they receive a $25 callout fee as a reimbursement for their service to the Community. 14

18 Funding for the Fire Department comes from diverse sources. Annually, the district has a contract with Imperial County to respond to calls outside, but in close proximity to, the district boundaries. Government grants also come in on a fairly regular basis, usually for the purchase of new equipment. Some of the general property tax revenues that are generated from properties within the district and captured from the county are used to pay personnel costs associated with the Fire Department. Currently, all the Firefighters are volunteers, but as the population increases so may the need for full time Firefighter to better protect the community. 4 Table 4 on page 8 provides a breakdown of the emergency service calls to the Fire Department for the year The calls are separated into three areas: 1) area within the boundaries of the SCSD, 2) area outside the SCSD and within the Imperial County boundaries, and 3) areas of agreed mutual aid within south San Bernardino County. The Traffic Impact Analysis for the landfill project (Kunzman Associates, 2011) indicates that when the incoming MSW stream reaches its maximum value, the project related traffic will increase the future baseline traffic volumes along SR-86 by 7.1%. Therefore, as a conservative (i.e. increased or more than probable) estimate for this analysis, it was assumed the project would also increase the number of traffic accidents along SR-86 by 7.1%. The estimated calls per year related to the proposed project are based on full implementation of the proposed landfill project. The assumptions that were used to forecast the future increase in emergency calls are listed in the footnotes of Table 4. The assumptions were based on input from the SCSD Fire Department as 4 Source: - December

19 well as the forecast percent increase in traffic along SR-86. As shown on Table 4, there are an estimated 4.2 calls per year anticipated within the SCSD area, 2.9 calls within Imperial County outside the SCSD area, and 2.3 estimated calls for assistance in south San Bernardino County related to the proposed project. This results in a total estimated 9.5 annual calls for emergency services related to the proposed project. As shown on Table 5, according to the SCSD budget, the Fire Department will expend approximately $137,512 for the year. The Fire Department responded to 452 emergency calls in 2010 (see Table 4 and Table 5). With a total number of calls at 452 in 2010, the average cost per call is $ Assuming 9.5 annual calls for emergency services related to the proposed project and an average cost per call at $304.23, the proposed project is anticipated to impact the Fire Department at a rate of $2,879 for the year This amount was escalated at 1.5% per year through the life of the proposed project as shown in Table 7 on page 25. For the purpose of comparison, the fiscal impact analysis for the Mesquite Regional Landfill was reviewed to determine the impacts of that landfill upon the Imperial County Fire Department. According to the analysis, the rate of response is conservatively estimated at once an annual quarter 5. It should also be noted that West Shore Ambulance Services, Inc., a non-profit ambulance service, provides ambulance and supplemental EMT level service to the area. When a 911 call is made for emergency medical service assistance, the Sheriff s Department places a dispatch call to the Fire Department and also sends a 5 Source Fiscal Impact Analysis Mesquite Regional Landfill, June 2010, Page IV

20 dispatch call to West Shore Ambulance Services. This company serves the community as a back up to the emergency medical services provided by the Fire Department. However, since West Shore Ambulance Services is a non-profit entity and does not receive any funding from the County of Imperial, further discussion of the fiscal impacts related to West Shore Ambulance Services is not provided in this FIA. 17

21 Table 4 Project Impact on Fire Department Salton City Solid Waste Site - Project Impact on Salton Community Services District Fire Department Salton Community Services District Type of Call Total Calls for the Year 2010 Estimated Calls per Year Related to Project Percent Project Impact Notes Fire Calls % (1) Emergency Medical Service % (2) Wildland Fire % Traffic Accidents % (3) Traffic Accidents with Fire % (3) Hazmat Emergencies n/a (4) Public Assistance % Subtotal Imperial County Area (Outside SCSD) Type of Call Fire Calls n/a Emergency Medical Service % Wildland Fire % Traffic Accidents % (3) Traffic Accidents with Fire % (3) Hazmat Emergencies n/a (5) Public Assistance % Subtotal Mutual Aid (SSB, others) Type of Call Fire Calls n/a Emergency Medical Service % Wildland Fire % Traffic Accidents % (3) Traffic Accidents with Fire % (3) Hazmat Emergencies n/a (5) Public Assistance % Subtotal Total % Notes: 1 Assumes one fire fighting call every two years. 2 Assumes two Medical Emergency Service calls per year. 3 Based on 7.1% increased traffic to the project site at full project implementation of 6,000 tons per day in the year Assumes one Hazmat call every two years. 5 Assumes one Hazmat call every four years. 18

22 Table 5 Fire and Emergency Service Cost per Call Fire and Emergency Medical Service - FY Account General Fund Expenses Costs Wages & Benefits Expenses $51, Utilities Expense $11, Maintenance Expense $11, Miscellaneous Expenses $16, Capital Purchases $46,500 Total Cost $137,512 Calls per Year Average Cost per Call $ Source: Salton Community Services District Budget for FY approved June 15, LAW ENFORCEMENT The SCSWS is located within the law enforcement jurisdiction of the County of Imperial Sheriff s Department. The Sheriff s Department is primarily responsible for the day to day law enforcement activities responding to crimes and other emergency events. The Sheriff s Department has a substation located adjacent to the SCSD office and is used primarily for Deputies as a place to prepare reports, gather information and address the concerns of the public in a localized setting. Additionally, the Sheriff s Department is responsible for the operations of the County detention facilities, and many of the administrative efforts of the county court system requiring a specific level of law enforcement training. Prosecution is another aspect of the law enforcement requirements provided by the County. This includes the duties of the District Attorney and the Public Defender. 19

23 The effort expended by the law enforcement branch of the County government is for the benefit of residents, business and visitors to the County of Imperial. Therefore, to specifically tie the impacts of the proposed project to the costs of providing law enforcement services, it was determined that a cost per incident call would be the most appropriate method. According to the Sheriff s Department data base for emergency calls, there were 19,421 countywide calls in 2007, 18,762 calls in 2008, 18,305 in 2009 and 27,597 calls in This results in an average of 21,021 Countywide calls per year over the last four years. However, it should be noted that there were no calls responding to incidents at the existing landfill project location in the year The cost for providing law enforcement services as well as for the District Attorney and Public Defender are as follows in Table 6 on page Source: Imperial County Sheriff s Department March There was a substantial increase in calls for service from 2009 to 2010 due to Sheriff s Office changes in issuing an Incident Number on Traffic Stops. 7 Source: Imperial County Sheriff s Department February

24 Table 6 Law Enforcement Law Enforcement - FY Expense Category Costs Notes Courts Non-Rule $1,700,000 Page 55 District Attorney $2,814,887 Page 170 Juvenile Hall $2,831,976 Page 240 Probation & Corrections $6,262,946 Page 242 Public Defender $2,797,709 Page 264 Sheriff - Coroner $14,856,982 Page 280 Sheriff's Correction Division $14,271,424 Page 286 Security - Sheriff $228,794 Page 314 Total Cost $45,764,718 Average Calls per Year 21,021 Average Cost per Call $2, Source: Total Cost to County before other funding sources are included. Appendix C of the Imperial County Annual Budget for FY approved September 7, Based on the fact that there were no calls to the landfill in the past year and the Sheriff s Department does not recall if there has ever been a call to this landfill, it would appear that it is unlikely that there would be any significant future fiscal impact on the law enforcement efforts of the County. However, with the input received by the Fire Department and the assumption that the Sheriff s Department may accompany the Fire Department on certain calls, we have assumed that ½ of the calls for emergency services within the area of SCSD and Imperial County will be accompanied by a Deputy Sheriff. As shown on Table 4, there are an estimated 4.2 calls per year anticipated within the SCSD area, 2.9 calls within Imperial County outside the SCSD area for emergency services for a total of 7.1 calls. Therefore, assuming ½ of these calls will require assistance from the Sheriff s Department, 3.6 calls per year involving the Sheriff s Department assistance to the Fire Department is an appropriate estimate. Additionally, with the location of the proposed project within the boundary of the Ocotillo Wells State Vehicular Recreation Area, it 21

25 can be anticipated that the Sheriff s Department may be contacted due to impacts created by OHV enthusiasts. Therefore, this FIA has assumed an additional 1.0 call per year. For the purpose of a conservative (i.e. increase or more than probable) estimate of calls for law enforcement services, the FIA has assumed a total of 4.6 calls per year. For the purpose of comparison, the fiscal impact analysis for the Mesquite Regional Landfill was reviewed to determine the impacts of that landfill upon the Imperial County Sheriff s Department. According to the analysis, the Sheriff s Department would be called at a conservative rate of response equal to four times annually 8. As shown in Table 6, according to the Imperial County budget, countywide law enforcement along with the District Attorney and Public Defender will expend approximately $45,764,718 for the year. With a total number of calls at 21,021, the average cost per call is $2,177. Assuming 4.6 annual calls for law enforcement services related to the proposed project and an average cost per call at $2,177, the proposed project is anticipated to impact the law enforcement services at a rate of $9,966 for the year This amount is escalated at 1.5% per year through the life of the proposed project as shown in Table 7 on page 25. PUBLIC WORKS ROADS According to the Traffic Impact Analysis (Kunzman Associates, 2011), the primary travel routes for large, long-haul transfer trucks from the sources to the landfill will be along interstate freeways and state highway SR-86. The primary access road to the landfill entrance is from SR-86 and will be improved and maintained by the operators of the landfill. Therefore, proposed project will have no fiscal impacts on public roads serviced by the County of Imperial. Additionally, the 8 Source Fiscal Impact Analysis Mesquite Regional Landfill, June 2010, Page IV

26 proposed project will be required to install a new traffic signal at intersection of SR-86 and the project entrance road. This traffic signal will be funded entirely by the proposed project. The Traffic Impact Analysis indicates that the proposed landfill could contribute to cumulative traffic impacts at several intersections along SR-86 near the site. BWI will be required to reimburse Caltrans for its fair share contribution for installation of new traffic signals to serve those intersections. BWI s fair share payments ensure the project will not cause a financial impact to the County or Caltrans. Since SR-86 is a State controlled highway, any additional impacts created on this highway will be funded via gasoline taxes and other State funding sources. WATER SERVICE 9 Water at the landfill will be provided via on-site wells. This water will be primarily used for dust control and fire suppression (if necessary). Potable water is currently trucked to the site. However, upon implementation of the proposed project, potable water will be processed on site through a potable water system installed by BWI. Therefore, the proposed project will have no fiscal impact on the public water system. WASTEWATER SERVICE 10 Wastewater at the landfill is currently handled using an on-site septic system. Upon implementation of the proposed project, the existing septic system will be expanded or an additional septic system will be installed. The septic system will not be connected to a public sewerage or treatment system. Therefore, the proposed project will have no fiscal impact on the public wastewater system. 9 Source Draft EIR for the Salton City Landfill Expansion May 2011, Page Source Draft EIR for the Salton City Landfill Expansion May 2011, Page

27 PARKS AND RECREATION The project site is located within the SCSD area which oversees the Parks and Recreation services. Since this project does not generate a direct need for additional parks or recreation facilities, there is no fiscal impact on parks and recreation. However, the proposed project may generate an indirect need for park facilities to serve the new future employees who may move into the area. These additional employees will be located in either existing homes or new homes which are required to pay park fees. Any fiscal impacts created by the additional employee generated indirectly as a part of this project will be or have been mitigated by the payment of park fees. SCHOOLS The project site is located within the Coachella Valley Unified School District. The facility will require 18 to 47 new employees. These additional employees will be located in either existing homes or new homes which are required to pay school fees. Any fiscal impacts created by the additional students generated indirectly as a part of this project will be or have been mitigated by the payment of school fees. Therefore, this project does not create an additional fiscal demand that has not been mitigated. SUMMARY OF COMBINED FISCAL IMPACTS Table 7 on page 25 summarizes the combined fiscal impacts by year. For the first year of expanded operation (2012) the fiscal impact is $15,446 per year. For the final years of operation (2039) the forecast impact is $23,089 per year. 24

28 Table 7 Impacts to the County General Fund Year Salton City Solid Waste Site - Fiscal Impacts to County Services County Administration Fire/EMS Law Enforcement Total 2008 $2,450 $608 $2,177 $5, $2,487 $608 $2,177 $5, $2,525 $608 $2,177 $5, $2,563 $608 $2,177 $5, $2,601 $2,879 $9,966 $15, $2,640 $2,922 $10,115 $15, $2,680 $2,966 $10,267 $15, $2,720 $3,011 $10,421 $16, $2,761 $3,056 $10,577 $16, $2,802 $3,102 $10,736 $16, $2,844 $3,148 $10,897 $16, $2,887 $3,196 $11,060 $17, $2,930 $3,243 $11,226 $17, $2,974 $3,292 $11,394 $17, $3,019 $3,341 $11,565 $17, $3,064 $3,392 $11,739 $18, $3,110 $3,442 $11,915 $18, $3,157 $3,494 $12,094 $18, $3,204 $3,547 $12,275 $19, $3,252 $3,600 $12,459 $19, $3,301 $3,654 $12,646 $19, $3,350 $3,709 $12,836 $19, $3,401 $3,764 $13,028 $20, $3,452 $3,821 $13,224 $20, $3,503 $3,878 $13,422 $20, $3,556 $3,936 $13,623 $21, $3,609 $3,995 $13,828 $21, $3,663 $4,055 $14,035 $21, $3,718 $4,116 $14,246 $22, $3,774 $4,178 $14,459 $22, $3,831 $4,240 $14,676 $22, $3,888 $4,304 $14,896 $23,089 25

29 GENERAL FUND REVENUES This section provides the revenues anticipated to be generated by the proposed Salton City Solid Waste Site landfill expansion project. Table 11 on page 30 summarizes the annual revenue. For fiscal year (the first year of project implementation), the total General Fund revenues to the County provided by the proposed project are estimated at $2,000,000. This amount will increase over time and reach approximately $6,354,559 per year upon full implementation of the landfill in the year The primary sources for revenues are the Host Fee and Property Taxes. As shown on Table 11, in the first year of implementation the Host Fee will generate $500,000. Additionally, the landfill operators are required to pay a lump sum amount of $1,500,000 to the County as provided in the site lease agreement 11. Additional funds are collected as a part of the project permit application review and CEQA process. This would include planning, environmental and construction permits and charges. These charges are identified as functional or cost recovery revenues which are used to offset expenditures. Therefore, they are not included as a function of revenue and thus not included in this analysis. HOST FEE On December 23, 2008, the County of Imperial Board of Supervisors approved an agreement with Burrtec Waste Industries for the lease and operation on the Salton City Solid Waste Site. As a part of this agreement, a Host Fee payment schedule was provided. The fee amount will be based on the Average Tons per Day of waste delivered to the landfill as shown in Table Landfill Site Lease and Operations Agreement Approved by the Board of Supervisors December 23,

30 Table 8 Host Fee Salton City Solid Waste Site - Host Fee Average Tons Per Day Host Fee (1) 0-1,000 TPD - Annual Flat Fee $500, ,001-2,000 TPD $2.75 2,001-3,000 TPD $3.00 3,001-4,000 TPD $3.25 4,001-5,000 TPD $3.50 More than 5,000 TPD $3.75 Source: Page 9 of the Landfill Site Lease and Operations Agreement relating to the Salton City Solid Waste Site between Burrtec Waste Industries, Inc. and the County of Imperial. (1) The Host Fee is based on the number of tons per day. The Host Fee will be adjusted annually from the effective date of the Agreement. The adjustment will be based on the changes to the Consumer Price Index (CPI). For the purpose of this FIA, the Host Fee amount was not escalated annually. Therefore, the calculated Host Fee revenue is likely conservatively low. The Host Fee is paid monthly based on a total tonnage of waste accepted for the month divided by the number of operating days in the month. Additionally, lump sum payments have already been made to the County of Imperial and future lump sum payments will be provided in the future. In 2008 and in 2009 a lump sum payment was made to the County of Imperial in the amount of $1,000,000 for each year totaling $2,000,000 of lump sum payments made thus far. It is anticipated that in the year 2011 and again in 2013, Burrtec Waste Industries will again make lump sum payments in the amount of $1,500,000 for each year totaling $3,000,000. These payments will only be made if the landfill expansion project is approved. 27

31 PROPERTY TAX The project site is owned by the County of Imperial and leased to Burrtec Waste Industries for $1.00 per year. Since it is owned by the County, currently no property taxes are paid. However, Possessory Interest Property Taxes will be required. According to the Imperial County Assessor, even though the property is owned by the County it will produce what is known as possessory interest land value. This value is based on the lease amount over the term of the lease and the improvements made to the property such as the maintenance and administrative buildings, a storage building, scale house, and fencing. Table 9 identifies the improvements, cost basis and total improvement costs. Table 9 Taxable Site Improvements Salton City Solid Waste Site - Taxable Site Improvements Improvement (1) Cost Basis Unit Type Size (1) Improvement Costs Maintenance Building $80.00 per Square Foot 2,800 $224, Administrative Building $ per Square Foot 750 $75, Storage Building $50.00 per Square Foot 1,350 $67, Scale House $20, per Scale House 2 $40, Flare/Cogen Building $50.00 per Square Foot 5,000 $250, Security Fencing $30.00 per Linear Foot 14,934 $448, Internal Paving $1.50 per Square Foot 10,000 $15, Security System $10, per System 1 Total $10, $1,129, (1) Source: Initial Study for the Salton City Landfill Expansion Prepared by ICF International - dated July (2) Cost assumptions provided by Burrtec. The property tax assessed for these improvements is at a rate of 1.25% per year 12. Of this, the County General Fund will receive 27.21% of the property tax revenue while the balance will go to various other funds within the County such as the County Library, Fire Protection, Pioneers Memorial Hospital and the Salton Community Services District, just to name a few Source: Imperial County Tax Collector s Office, March See Appendix 4 for a full list of funds. 28

32 As shown in Table 10, the annual Possessory Interest Property Tax payments to the County are estimated to be $14, of which $3, will be provided to the General Fund. Note that this is an ESTIMATE of the Possessory Interest Property Tax. The appraisal department of the Assessor s Office will review the lease and terms of the Lease Agreement and assess in accordance to the Revenue and Taxation Code and Guidelines 14. Table 10 Estimated Possessory Interest Property Taxes Salton City Solid Waste Site - Estimated Possessory Interest Property Taxes Site Improvements $1,129, Lease Amount (1) $99.00 Assessed Value $1,129, Tax Rate Area % Estimated Possessory Interest Property Taxes $14, Percentage to the County General Fund 27.21% Property Taxes to the County General Fund $3, (1) The lease is $1.00 per year not to exceed 99 years. TOTAL COUNTY REVENUE Table 11 on page 30 - County Revenue, summarizes the expected revenues generated as a part of the proposed project. The primary revenue sources will be from the host fee and property taxes. The host fee generates a majority of the income revenues that will be provided to County of Imperial on a monthly basis. Note the calculated revenue listed in Table 11 is artificially low because the calculated Host Fee payments have not been escalated to account for a likely increase in the Consumer Price Index. 14 Source County Assessor s Office March

33 Year Lump Sum Paid to the County of Imperial Table 11 County Revenue Salton City Solid Waste Site - County Revenue MSW Tons per Day Host Fee per Month (See Note 5 below) Host Fee per Year Property Taxes (See Note 6 below) Revenue Generated per Year Cumulative Payments to the County of Imperial 2008 $1,000, $0 $0 $0 $1,000,000 $1,000, $1,000, $0 $0 $0 $1,000,000 $2,000, $0 50 $0 $0 $0 $0 $2,000, $1,500, $0 $0 $0 $1,500,000 $3,500, $1,500,000 1,000 $41,667 $500,000 $0 $2,000,000 $5,500, $0 1,500 $82,918 $995,012 $3,853 $998,865 $6,498, $0 2,000 $124,168 $1,490,012 $3,930 $1,493,942 $7,992, $0 2,500 $169,168 $2,030,012 $4,007 $2,034,019 $10,026, $0 2,800 $196,168 $2,354,012 $4,084 $2,358,096 $12,384, $0 3,000 $214,168 $2,570,012 $4,161 $2,574,173 $14,959, $0 3,500 $262,918 $3,155,012 $4,238 $3,159,250 $18,118, $0 4,000 $311,668 $3,740,012 $4,315 $3,744,327 $21,862, $0 4,500 $364,168 $4,370,012 $4,392 $4,374,404 $26,237, $0 5,000 $416,668 $5,000,012 $4,469 $5,004,482 $31,241, $0 6,000 $529,168 $6,350,012 $4,547 $6,354,559 $37,596, $0 6,000 $529,168 $6,350,012 $4,624 $6,354,636 $43,950, $0 6,000 $529,168 $6,350,012 $4,701 $6,354,713 $50,305, $0 6,000 $529,168 $6,350,012 $4,778 $6,354,790 $56,660, $0 6,000 $529,168 $6,350,012 $4,855 $6,354,867 $63,015, $0 6,000 $529,168 $6,350,012 $4,932 $6,354,944 $69,370, $0 6,000 $529,168 $6,350,012 $5,009 $6,355,021 $75,725, $0 6,000 $529,168 $6,350,012 $5,086 $6,355,098 $82,080, $0 6,000 $529,168 $6,350,012 $5,163 $6,355,175 $88,435, $0 6,000 $529,168 $6,350,012 $5,240 $6,355,252 $94,790, $0 6,000 $529,168 $6,350,012 $5,317 $6,355,329 $101,145, $0 6,000 $529,168 $6,350,012 $5,394 $6,355,406 $107,501, $0 6,000 $529,168 $6,350,012 $5,471 $6,355,483 $113,856, $0 6,000 $529,168 $6,350,012 $5,548 $6,355,560 $120,212, $0 6,000 $529,168 $6,350,012 $5,625 $6,355,637 $126,568, $0 6,000 $529,168 $6,350,012 $5,702 $6,355,714 $132,923, $0 6,000 $529,168 $6,350,012 $5,780 $6,355,792 $139,279, $0 6,000 $529,168 $6,350,012 $5,857 $6,355,869 $145,635,404 Notes Notes - 1 Paid December 29, 2008 upon effective date of the agreement between Burrtec and Imperial County for the operation of the landfill. Source: Letter from the County of Imperial Public Works to Mr. Cole Burr of Burrtec Waste Industries, Inc. dated December 29, 2008 with the attached Executed Agreement for Landfill Site Lease & Operations Amount paid on the first anniversary of the agreement. Source: Page 8 of the Landfill Site Lease and Operations Agreement relating to the Salton City Solid Waste Site between Burrtec Waste Industries, Inc. and the County of Imperial. Amount to be paid upon approval of the expansion of the landfill. Source: Page 8 of the Landfill Site Lease and Operations Agreement relating to the Salton City Solid Waste Site between Burrtec Waste Industries, Inc. and the County of Imperial. Amount to be paid upon the expanded site commencement date. Source: Page 8 of the Landfill Site Lease and Operations Agreement relating to the Salton City Solid Waste Site between Burrtec Waste Industries, Inc. and the County of Imperial. Host Fee based on calculations specified in the lease agreement. The calculation also assumes operation occurring at 30 days per month. Source: Beginning on page 9 of the Landfill Site Lease and Operations Agreement relating to the Salton City Solid Waste Site between Burrtec Waste Industries, Inc. and the County of Imperial. This assumes 2010 dollars with no increase to the host fee. 6 The assumed maximum percent of tax escalation per year 2% 30

34 CONCLUSION The Salton City Solid Waste Site proposes to accept up to 6,000 tons per day of Municipal Solid Waste from locations within and outside of the County of Imperial. Annual revenues from SCSWS are expected to be generated from secured property tax and a host fee ranging from $2,000,000 in 2012 up to $6,354,559 upon full implementation of the proposed project in The expenditures for county services are expected to be provided by the general governance of the County, Law Enforcement and Fire/Emergency Medical Services. The annual expenses are estimated to be $15,446 in the year 2012 and escalating at a rate of 1.5% up to $17,926 by the year Table 12 on page 32 provides the Annual Fiscal Impact of the proposed landfill project. The fiscal impact analysis for the Salton City Solid Waste Site demonstrates that this project will not create a financial burden on facilities and services of the County of Imperial. In fact, this project will provide a fiscal benefit to the County of Imperial over the life of the proposed project. Beginning in 2012 there will be a net surplus of revenue over expenditure of approximately $1,984,554. This surplus will increase up to $6,336,633 upon full implementation of the proposed project in the year Over the life of the proposed project, it is expected to generate approximately $145,081,641 in cumulative net revenue after County expenses for services. Table 12 on page 32 provides the total Annual Fiscal Impact of the proposed project. The revenue collected from the proposed project will be included in the County s General Fund. Distribution of these funds will be determined after consultation with the various County Departments and ultimately approved by the County Board of Supervisors. 31

35 Table 12 Annual Fiscal Impact Salton City Solid Waste Site - Annual Fiscal Impact Year Revenue Generated Expenses Incurred Net Surplus (Deficiency) Cummulative Net Surplus (Deficiency) 2008 $1,000,000 $5,235 $994,765 $994, $1,000,000 $5,272 $994,728 $1,989, $0 $5,310 ($5,310) $1,984, $1,500,000 $5,348 $1,494,652 $3,478, $2,000,000 $15,446 $1,984,554 $5,463, $998,865 $15,678 $983,187 $6,446, $1,493,942 $15,913 $1,478,029 $7,924, $2,034,019 $16,151 $2,017,868 $9,942, $2,358,096 $16,394 $2,341,703 $12,284, $2,574,173 $16,640 $2,557,534 $14,841, $3,159,250 $16,889 $3,142,361 $17,984, $3,744,327 $17,143 $3,727,185 $21,711, $4,374,404 $17,400 $4,357,005 $26,068, $5,004,482 $17,661 $4,986,821 $31,055, $6,354,559 $17,926 $6,336,633 $37,391, $6,354,636 $18,194 $6,336,441 $43,728, $6,354,713 $18,467 $6,336,245 $50,064, $6,354,790 $18,744 $6,336,045 $56,400, $6,354,867 $19,026 $6,335,841 $62,736, $6,354,944 $19,311 $6,335,633 $69,071, $6,355,021 $19,601 $6,335,420 $75,407, $6,355,098 $19,895 $6,335,203 $81,742, $6,355,175 $20,193 $6,334,982 $88,077, $6,355,252 $20,496 $6,334,756 $94,412, $6,355,329 $20,803 $6,334,526 $100,746, $6,355,406 $21,115 $6,334,291 $107,081, $6,355,483 $21,432 $6,334,051 $113,415, $6,355,560 $21,754 $6,333,807 $119,748, $6,355,637 $22,080 $6,333,557 $126,082, $6,355,714 $22,411 $6,333,303 $132,415, $6,355,792 $22,747 $6,333,044 $138,748, $6,355,869 $23,089 $6,332,780 $145,081,641 32

36 CONTRIBUTORS TO THE COUNT Y OF IMPERIAL County Executive Office Mr. Jerry Santillan, Assistant CEO Mr. Joe Picazo, Deputy CEO Budget-GSA Fiscal Public Works Mr. William Brunet, Director of Public Works Planning and Development Services Mr. Richard Cabanilla, Planner IV Salton Community Services District Ms. Rosa Reagles, General Manager Fire Department Mr. Ron Merton, Salton City Fire Chief Mr. Steve Farenbaugh, Salton City Assistant Fire Chief Sherriff s Department Mr. Jesse Obeso, Chief Deputy Ms. Marlene Fisher, Office Technician Tax Collector s Office Ms. Sylvia Sanchez, Imperial County Tax Collector Assessor s Office Mr. Roy Buckner, Imperial County Assessor Auditor-Controller s Office Ms. Ann McDonald, Special Accounting Manager BURRTEC INDUSTRIES INC. Mr. Ross Sandul, General Manager Mr. Gary Koontz, Facility Project Manager Mr. Dave Brischke, Director of Engineering ICF INTERNATIONAL Mr. Bob Stark, Project Director Mr. Jim Wilder, Project Manager Ms. Erin Pace, Project Coordinator HOWES, WEILER AND ASSOCIATES MR. STAN WEILER, AICP, PRINCIPAL MS. KATHY STEINDLBERGER, ASSOCIATE PLANNER 33

37 APPENDICES 34

38 APPENDIX 1 GENERAL FUND SUMMARY 35

39 APPENDIX 2 LETTER OF EXECUTED AGREEMENT FOR LANDFILL SITE 36

40 37

41 APPENDIX 3 PROJECT FAIR SHARE INTERSECTION TRAFFIC CONTRIBUTIONS 38

42 39

43 40

44 41

45 APPENDIX 4 - TRA