LOUDON — The Loudon County Solid Waste Disposal
Commission this week got its first look at a proposed
15-year extension to the existing contract to manage the
Matlock Bend Landfill.
For almost two years the commission has been working
with Santek Environmental Services to modify the
contract — signed in 2007 — so that enough money is
available to close and monitor the landfill.
The proposal is still a work in progress, according to
Kevin Stevens, attorney for the waste commission.
“We as a board have to get comfortable with the concepts
before we get into the details,” he said Tuesday.
The current contract with Santek ends in 2027. The
extension would run until 2042. The landfill might
continue to operate for several years after the contract
ends.
Under the terms of the latest proposal, Santek would
begin accruing $1.62 per ton for the waste commission
that would be dedicated to the landfill’s
closure/post-closure account, said Cheryl Dunson,
marketing manager for Cleveland, Tenn.-based Santek.
“In 15 years we’ll have it totally funded,” she said.
New estimates by Santek peg closure and post-closure
costs at about $9.3 million in 2015 dollars. The
commission has already accrued a little more than $2
million in the fund. Based on various factors the total
amount needed may continue to rise.
“We’ll look at it every year,” Dunson said.
An important benefit of the proposal is the cap on
landfill elevation. Officials have been concerned about
the height of the landfill and possible negative
reaction from neighbors such as the Tennessee National
golf community. At one time Santek had suggested adding
another 50 feet of elevation.
The new proposal caps the height of the landfill at
about 1,080 feet, less than 10 feet higher than the
present elevation. Santek asked for the commission
approval to submit the lower top height to the Tennessee
Department of Environment and Conservation.
The proposal also asks that Santek be able to use
commission-owned property adjacent to the landfill for
soil that will be needed to top off the landfill.
The agreement with Loudon County would be modeled on a
contract with Gordon County, Ga., landfill management,
she said.
“We recommend this language because it keeps the
Commission in complete control of its funds and it
ensures the account will be revised annually to reflect
the actual volume of airspace consumed by Santek,”
Dunson said.
Stevens said he does not anticipate any conflicts
between the contract and the competitive bidding
requirements prescribed by state law.
The commission’s attorney, who “diligently researched
Tennessee law to determine what, if any, procurement
requirements would apply to a potential extension of
Santek’s contract term,” cited a recent opinion from the
Tennessee Court of Appeals on a Memphis case that dealt
with a similar situation.
“The Court of Appeals held specifically that the
municipality’s contract extension was not subject to the
competitive bidding process because the municipality was
not required to expend any money for the operation of
the recycling center,” Stevens said.