REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
February 24, 2026
FROM
NOEL CASTILLO, Director of Public Works- Solid Waste Management
SUBJECT
Title
Agreement with Land Veritas Corp to Purchase Mitigation Credits for the San Timoteo Landfill Stockpile 3 Project
End
RECOMMENDATION(S)
Recommendation
Approve Agreement for Sale of Credits with Land Veritas Corp, including non-standard terms, for the one-time purchase of 1.36 acres of 1600 Ephemeral Riparian Enhancement credits to mitigate impacts from the San Timoteo Landfill Stockpile 3 Project, in the amount of $538,000.
(Presenter: Noel Castillo, Director, 387-7906)
Body
COUNTY AND CHIEF EXECUTIVE OFFICER GOALS & OBJECTIVES
Operate in a Fiscally Responsible and Business-Like Manner.
Provide for the Safety, Health and Social Service Needs of County Residents.
FINANCIAL IMPACT
Approval of this item will not result in the use of Discretionary General Funding (Net County Cost), as the Department of Public Works - Solid Waste Management Division (SWMD) is financed by fee revenue. SWMD establishes fees that are charged to the public and other agencies for utilization of the County’s Waste Disposal System. Sufficient appropriation and revenue have been included in the SWMD 2025-26 budget and will be included in future recommended budgets.
BACKGROUND INFORMATION
The San Timoteo Sanitary Landfill (STSL) is a regional Class III landfill located at 31 Refuse Road in the City of Redlands. Since operations at the site commenced in 1980, the STSL has been accepting municipal solid waste from various cities within San Bernardino County (County). The STSL occupies approximately 366 acres, of which 114 are permitted for refuse disposal and consists of waste management Units 1 and 2, which have been developed in phases.
Development of the Unit 2, Phase 5 waste prism will require excavation of approximately 2,620,000 cubic yards of native earthen material. This material must be removed to establish the design subgrades to allow for construction of the underlying liner system. Because the excavated material cannot be immediately reused, it will be temporarily stockpiled on-site in a designated area referred to as Stockpile 3. The Stockpile 3 Project (Project) area encompasses approximately 22.1 acres located within the existing landfill property boundaries but outside the current limits of disturbance. Project activities include clearing and grubbing of existing vegetation and grading in preparation for stockpiling earthen material. The stockpiled material will be used for future landfill operations, including daily cover, intermediate cover, or construction activities.
On April 9, 2024 (Item No. 40), the Board of Supervisors adopted the Initial Study/Mitigated Negative Declaration (IS/MND) for the Project in accordance with the California Environmental Quality Act. The IS/MND concluded that the Project may cause impacts to 0.91 acres of ephemeral riverine Waters of the State and will be subject to specific mitigation requirements for regulatory permitting. SWMD is required by the Santa Ana Regional Water Quality Control Board (Water Board) and pursuant to the 1600 Lake and Streambed Alteration Agreement, to purchase wetland or streambed riparian enhancement mitigation credits within nine months of Project initiation. Wetland or streambed riparian enhancement credit is a unit of trade used to offset ecological losses that occur in the water of the United States or waters of the State of California that are regulated by government agencies. The 1600 Lake and Streambed Alteration Agreement is a mitigation process authorized by the California Department of Fish and Wildlife (CDFW) to remedy water streams impacted by project activities.
Approval of the Agreement for Sale of Credits with Land Veritas Corp (Agreement) will enable SWMD to purchase 1.36 ephemeral riparian enhancement credits from the Soquel Canyon Mitigation Bank. The Soquel Canyon Mitigation Bank was formed by Land Veritas Corp, Land Veritas I, LLC, the U.S. Army Corps of Engineers, the U.S. Environmental Protection Agency, the Water Board, and the CDFW on December 15, 2014, for San Bernardino and Orange Counties to obtain environmental mitigation credits. The credits will be purchased from Land Veritas Corp as a bank sponsor for the Soquel Canyon Mitigation Bank. This purchase represents a 1.5:1 mitigation-to-impact ratio, resulting in a total of 1.36 acres of mitigation credits to offset the 0.91 acres of impacts. The rate of the mitigation credits is calculated on a per-acre basis. For 1.36 acres of mitigation, Soquel Canyon Mitigation Bank set a price of $538,000. The regulatory agencies have agreed that this is the appropriate mitigation type and acreage amount. The Project will commence in the summer of 2026.
The Agreement is the standard purchase agreement from Land Veritas Corp, which omits certain County standard contract terms as follows:
1. The Agreement does not include an attorneys’ fees provision.
• The County standard contract requires each party to bear its own costs and attorney fees, regardless of who is the prevailing party.
• Potential Impact: If either party institutes any legal proceedings related to the Agreement, the prevailing party may be entitled to recover reasonable attorneys’ fees, which could exceed the total Agreement amount.
2. Upon execution of the Agreement, Land Veritas Corp will deliver to the County an executed bill of Sale, and the County must pay the purchase price for the credits within 60 days of the Agreement being executed; otherwise, it is null and void.
• County standard payment terms are Net 60 without penalty of voiding the contract.
• Potential Impact: County standard processing time is 60 days or more. Failing to pay within the 60-day period may result in the Agreement being null and void, which would require the County to look for the purchase of new mitigation credits.
3. The Agreement is silent on governing law.
• The County standard contract requires California governing law.
• Potential Impact: Having no specified governing law in the Agreement results in uncertainty over which state’s laws will govern the interpretation of the Agreement. However, Land Veritas Corp is a California-incorporated entity, such that it is likely the agreement will be interpreted under California governing law.
4. The Agreement does not require Land Veritas Corp to indemnify the County, as required by County Policies 11-05 and 11-07.
• The County standard contract indemnity provision requires the contractor to indemnify, defend, and hold County harmless from third-party claims arising out of the acts, errors, or omissions of any person.
• Potential Impact: Land Veritas Corp is not required to defend, indemnify or hold the County harmless from any claims, including indemnification for claims arising from Land Veritas Corp’s negligent or intentional acts. If the County is sued for a claim, the County may be solely liable for the costs of defense and damages, which could exceed the total Agreement amount.
5. The Agreement does not require Land Veritas Corp to meet the County’s insurance standards as required pursuant to County Policies 11-05, 11-07, and 11-07SP.
• County policy requires contractors to carry appropriate insurance at limits and under conditions determined by the County’s Risk Management Department and as set forth in County policy and in the County standard contract.
• Potential Impact: The County has no assurance that Land Veritas Corp will be financially responsible for claims that may arise under the Agreement, which could result in expenses to the County that exceed the total Agreement amount.
6. There is no stated venue in the Agreement.
• County Policy 11-05 requires venue for disputes in the Superior Court of California, County of San Bernardino, San Bernardino District.
• Potential Impact: Land Veritas Corp is located in Sausalito, California. Having no express venue in the Agreement means that Sausalito County venue could be applied to disputes arising under this Agreement, which may result in additional expenses that exceed the amount of the Agreement.
SWMD supports this Agreement, including the non-standard terms, to ensure the Project may continue and comply with the regulatory requirements to purchase mitigation credits. This item supports the County and the Chief Executive Officer’s goals and objectives of providing for the safety, health, and social service needs of County residents by operating in a responsible manner to provide continued disposal services.
PROCUREMENT
Not applicable.
REVIEW BY OTHERS
This item has been reviewed by County Counsel (Maria Insixiengmay, Deputy County Counsel, 387-5455) on January 20, 2026; and County Finance and Administration (Kathleen Gonzalez, Administrative Analyst, 387-5412) on January 30, 2026.