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Oc Waste & Recycling 2016 ANNUAL REPORT OC WASTE & RECYCLING COLLABORATION IN MOTION TABLE OF CONTENTS ON THE COVER: THOUGH IT WAS HAPPENSTANCE THAT THE WET DECK AT OLINDA LANDFILL TOOK THE SHAPE OF A HEART, THE PEOPLE OF OC WASTE & RECYCLING PUT LOVE INTO THEIR COLLABORATION IN MOTION ............................................................................. 3 WORK AS THEY ENSURE SAFE, ENVIRONMENTALLY MISSION AND VISION ........................................................................................... 5 FRIENDLY WASTE DISPOSAL FOR THE RESIDENTS AND BUSINESSES OF ORANGE ORANGE COUNTY BOARD OF SUPERVISORS ................................................. 6 COUNTY. WASTE MANAGEMENT COMMISSION ................................................................ 7 LETTER FROM THE DIRECTOR ........................................................................... 8 WASTE DISPOSAL: AN ESSENTIAL PUBLIC SERVICE ................................... 10 ENVIRONMENTAL STEWARDSHIP ..................................................................... 12 EDUCATIONAL OUTREACH TO PROMOTE RECYCLING AND MORE .............14 AWARDS ................................................................................................................. 16 YEAR IN REVIEW: HIGHLIGHTS ..........................................................................17 10-YEAR FORECAST ............................................................................................22 FINANCIAL STATEMENTS ...................................................................................35 OC Waste & Recycling | 2016 Annual Report 2 COLLABORATION IN MOTION Day in and day out, in neighborhoods all around Orange County, families separate recyclables from trash. Haulers deliver the trash and recyclables to their respective destinations—landfills and material recovery facilities. Recyclable materials get processed for their next life. Trash is compacted and buried at the landfills, only to be recycled as landfill gas that provides energy. A falcon soars above the landfill, an instinctive reminder to thousands of crows and seagulls to stay away. Landfill employees assist commercial haulers and residents dispose of their waste, and they even pick up every scrap of litter. Students implement school-wide recycling programs and gardens, and they learn about the waste stream by taking tours of the landfills. Nonprofit organizations bring recycling and environmental stewardship alive for thousands of Orange County residents. Local, regional and state regulating agencies monitor and chart the course for waste management. And by implementing a strategic plan built on collaboration, OC Waste & Recycling manages and coordinates the County’s solid waste disposal system. OC Waste & Recycling | 2016 Annual Report 3 OC Waste & Recycling | 2016 Annual Report 4 MISSION AND VISION MISSION OC Waste & Recycling provides waste management services, protects the environment, and promotes recycling in order to ensure a safe and healthy community for current and future generations. VISION Our vision is to be the best waste management system in America. OC Waste & Recycling | 2016 Annual Report 5 The Orange County Board of Supervisors oversees the management of County government and many special districts. The Board develops public policy to implement and, as necessary, refine the local application of state law. The five supervisors are elected by the voters of their district to four-year terms. Michelle Steel CHAIRWOMAN SECOND DISTRICT ORANGE COUNTY BOARD OF SUPERVISORS Andrew Do VICE CHAIR COUNTY OF ORANGE MISSION: FIRST DISTRICT MAKING ORANGE COUNTY A SAFE, HEALTHY, AND FULFILLING PLACE TO LIVE, WORK, AND PLAY, TODAY AND FOR GENERATIONS TO COME, BY PROVIDING OUTSTANDING, COST- Todd Spitzer EFFECTIVE REGIONAL PUBLIC SERVICES. THIRD DISTRICT Shawn Nelson FOURTH DISTRICT Lisa Bartlett FIFTH DISTRICT OC Waste & Recycling | 2016 Annual Report 6 The Orange County Waste Commission advises the Board of Supervisors on matters relating to the County’s solid waste disposal system and serves as the designated Local Task Force, assisting with Orange County’s waste diversion and recycling efforts. Chairman (2nd District) JOE J. CARCHIO Vice-Chair (2nd District) HON. ROB JOHNSON* WASTE 1st District MANAGEMENT DEEPAK J. KRISHAN COMMISSION 2nd District TINA NIETO 3rd District HON. MIKE ALVAREZ* DONALD R. FROELICH STEVE CHAVEZ LODGE 4th District CHARLES J. KIM HON. CHRISTINE MARICK* HON. CHAD P. WANKE 5th District HON. CYNTHIA CONNERS* JOE SOTO MARK TETTEMER Member At Large DAVID J. SHAWVER* EX OFFICIO City Managers’ Representative BRET PLUMLEE* *Appointed by the Orange County City Selection Committee. OC Waste & Recycling | 2016 Annual Report 7 LETTER FROM THE DIRECTOR In 2016, OC Waste & Recycling’s activities can be summarized with a simple theme: “Collaboration in Motion.” From the celebratory start-up of the renewable energy plant at the Bowerman Landfill to the adoption of an updated OCWR Strategic Plan and the successful renegotiation of the Countywide Waste Disposal Agreements, collaboration brought every one of this year’s major accomplishments to fruition. And, as managers of a never-ending solid waste stream in a dynamic market and regulatory environment, we are in constant motion. Throughout 2016, OCWR staff worked diligently with stakeholders to secure approval of a key amendment to the Waste Disposal Agreements—a key contracting arrangement with 45 cities and sanitary districts that allows for the continued importation of waste through 2025, secures stable disposal rates and enables revenue-sharing. Key capital improvement projects were completed at all three active landfills. At the Olinda Landfill, the first phase of the partial final closure was completed in March. The project included aesthetic improvements to the area most visible to the adjacent community. Habitat restoration at the Prima Deschecha landfill cleared the way for the future development of Zone Four of the landfills and serves to protect the environment. This 94-acre Segunda Deshecha habitat area is now home to a variety of native species, such as Coastal Sage Scrub. Completion of a landslide remediation project of the Bowerman Landfill saw seven million cubic yards of earth moved in a project that preserved long-term landfill capacity. OC Waste & Recycling | 2016 Annual Report 8 Looking ahead, OC Waste & Recycling is well-positioned to face the challenges that arise as the industry paradigm shifts from landfill capacity (alone) to waste management alternatives. We envision making strides in renewable technologies, while we continue operating at the highest levels within our greatest asset—Orange County’s landfills. We welcome the challenges ahead, and we value the opportunity to collaborate—with residents, industry, government officials, renewable energy partners, environmentalists, educators and customers—as OCWR pursues its vision of being the best waste management system in America. Shaw Lin INTERIM DIRECTOR OC Waste & Recycling | 2016 Annual Report 9 WASTE DISPOSAL: AN ESSENTIAL PUBLIC SERVICE OCWR’S THREE ACTIVE LANDFILLS ARE FEATS OF ENVIRONMENTAL ENGINEERING, BUILT TO EXACTING SPECIFICATIONS MAJOR MILESTONE USING THE LATEST In 2016 OC Waste & Recycling achieved a major strategic plan milestone in TECHNOLOGY. THEY RECEIVE renegotiating an amendment to the Waste Disposal Agreements (WDA)—the MORE THAN FOUR MILLION arrangement through which cities bring their waste to Orange County’s landfills TONS OF SOLID WASTE EACH in exchange for low, predictable disposal rates. An amendment to the WDA was YEAR. WHILE WE WORK needed to allow for continued waste importation, which would have ended in June TOWARD A ZERO-WASTE 2016 without proper consent. Additionally, the financial stability offered by the FUTURE, LOCAL LANDFILL amended WDA allows the department to manage disposal operations and maintain CAPACITY WILL REMAIN A needed landfill capacity. VALUABLE RESOURCE. This complex win-win achievement was a direct result of collaboration among all of the cities, with significant involvement by the Orange County City Managers’ Association. The amended WDA also introduced revenue-sharing with the County’s 34 cities, as well as additional revenue for landfill “host cities” to offset their costs associated with landfill impacts. OC Waste & Recycling | 2016 Annual Report 10 BEING A GOOD NEIGHBOR Orange County’s three active landfills are located in areas that were once remote. Now, some new neighborhoods find themselves in clear view of and downwind from landfill operations. OC Waste & Recycling is strategically proactive in building two- way, Good Neighbor relationships. OCWR goes beyond compliance in our approach to neighbors’ concerns; we meet them where they are and we listen. Then we respond. Responses have come in the form of operational changes at the landfill, in-person visits and meaningful Neighborhood Briefings designed to inform and clarify. We also enhanced our online complaint reporting system to ensure timely support and responses for neighbors, and we commissioned an odor study to get a better understanding of an ongoing odor issue in one neighborhood. LOTS OF DIRT AND A NEW ROAD One of the most visible efforts completed in 2016 was remediation of a landslide at Bowerman. The risk was serious: the potential loss of future fill capacity. Over many months, crews moved more than seven million cubic yards of dirt, which relieved pressure that could cause additional slides. To mitigate the scar left on the hillside by the remediation,
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