Hauler wants help paying for landfill fix

Tuesday, Nov. 20, 2007 | 7:38 a.m.

Republic Services is putting the squeeze on Clark County to increase collection rates to pay for the higher-than-expected cost of closing Sunrise Landfill, even though the garbage company's existing contract with the county says the business is responsible for the work.

In a letter to the county last week, Republic Area President Bob Coyle suggested the company might not sign off on a consent decree with the county and federal regulators unless the county raises rates to pay for the remaining work on the landfill.

"Without an agreement on a funding mechanism, it will be difficult or even impossible for either the county or Republic to enter into a consent decree that the Department of Justice will accept, and that could risk further legal action against both of us," Coyle wrote.

Some county officials think such language is intended to pressure the county into a hasty decision on whether to make ratepayers pitch in for the work.

"I hope it was an inadvertent comment," Commissioner Chris Giunchigliani said.

The commissioners are expected today to delay a discussion of the proposed 2.2 percent fee hike.

Part of the reason for the delay is that commissioners have a lot of questions, including what would happen if the county refused to increase rates. Such questions will require lengthy discussion, and today's meeting will be jammed with two days' worth of issues because of the Thanksgiving holiday.

The delay is the first indication the county might be willing to go to the mat with Republic on the issue.

Coyle, however, insists the letter wasn't intended to pressure county officials.

"I don't put pressure on customers," he said Monday. "Signing a consent decree is a commitment to do something. If we don't have any money to do it, I don't know how anybody could commit to it."

He said he is open to talking to the county about the issue.

The debate over who should pay for the work goes back to 1998, when a rainstorm washed away part of the closed dump's cover, sending trash into the Las Vegas Wash.

The U.S. Environmental Protection Agency ordered the county, which held the lease for Sunrise, and Republic, which operated it, to clean up and properly close the landfill.

Republic agreed to solely take on that responsibility in exchange for an unusually long, exclusive contract extension with the county - to 2035. Although the county's collection rates are some of the lowest in the country, many residents remain upset that the county locked out competition for a generation.

The 1999 deal estimated the cleanup and closure would cost $36 million and stipulated that if costs exceed that amount, Republic could ask for a rate increase. But the deal also specifically said the county did not have to grant the request.

Eight years later, the landfill still isn't properly closed, primarily because of haggling between the EPA and Republic. Republic has spent $28.5 million so far. With the numbers approaching the $36 million estimate, Republic wants ratepayers to pick up the rest of the tab, currently estimated at $29 million.

To many residents, that seems like a classic bait-and-switch tactic.

The question for commissioners, then, is whether to use the existing contract with Republic to force it to pay for the remaining work.

Some county officials, however, worry that if the county refuses to help pay, federal authorities might hold the county liable because it was named in the original EPA orders.

But even if federal authorities take action against the county, the 1999 deal likely would allow the county to pass on any associated costs to Republic. The agreement includes a strongly worded clause indemnifying the county and says that if Republic fails to comply with the EPA orders, the county can do the work itself and receive reimbursement from Republic.

Some commissioners also question why the county would agree to a fee increase unless other governments are willing to pitch in.

The rate increase, as now proposed, would apply only to residents in unincorporated Clark County. But when Sunrise was in use, the unincorporated county was home to only 42 percent of the urban valley. That means much of the trash in the landfill came from the city of Las Vegas and other municipalities.

Coyle said he has not asked other governments to participate in funding the closure. The county and Republic are the responsible parties, he said.

The county, however, has asked the cities whether they would be willing to help pay for the closure. No city has expressed interest in doing so.