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Authorize Payment to Inland Empire Regional Composting Authority (IERCA) in Amount of $1,675,000 for One-Half of Capital Costs of Inland Empire Regional Composting Facility Budgeted for Fiscal Year (FY) 2026-2027
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Summary
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Summary: The Board previously approved the Joint Powers Agreement (JPA) forming the IERCA to design, construct, and operate a biosolids composting facility with the Inland Empire Utilities Agency (IEUA). Since 2007, the composting facility has been operating with a capacity of 150,000 tons of biosolids per year, approximately 75,000 tons each for IEUA and the Districts. On May 4, 2026, the IERCA Board of Directors approved a budget for FY 2026-2027 that identified $3,350,000 in additional capital expenditures that cannot be accrued through normal operating revenue sources. The specific capital projects in the FY 2026-2027 budget include replacing the trommel screen used for screening compost and a front-end loader used to move materials in the facility. In addition to paying for these specific capital expenditures, the remaining capital funds would be used to replenish the capital reserve fund to meet the minimum fund balance threshold that is established in the IERCA Capital Reserve Policy. Under the terms of the JPA, the Districts is responsible for one-half of the capital costs, or $1,675,000. This item is consistent with the Districts’ Guiding Principles to protect financial and facility assets through prudent investment and maintenance programs; and commitment to operational excellence (protection of public health and the environment, regulatory compliance, and cost effectiveness).
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