Sewer Panel to Consider Landfill Bid

The Sanitation Districts of Orange County will consider making a formal bid for the county’s landfill system at its board of directors meeting tonight.

Since December, the sewer agency and the county have held exclusive negotiations concerning a possible sale of the landfills, which are considered among the county’s most valuable assets because of the revenue they generate.

The agency is expected to propose a sale price in the vicinity of $300 million. A League of California Cities study completed last year valued the system at about $250 million. Other reports have put the value slightly higher.

The Sanitation Districts might pay for the system by borrowing against future landfill revenue, though a final financing plan has yet to be completed.

If the Sanitation Districts board approves a proposed term sheet for the sale tonight, the County Board of Supervisors will probably consider the issue in March.

Officials said the sale would enable the Sanitation Districts to merge with the county’s landfill operation, creating cost savings that might be used to reduce landfill gate fees.