REPORT/RECOMMENDATION TO THE BOARD OF SUPERVISORS
OF SAN BERNARDINO COUNTY
AND RECORD OF ACTION
September 22, 2026
FROM
NOEL CASTILLO, Director of Public Works- Solid Waste Management
SUBJECT
Title
Agreement with IZOTE HOLDINGS, LLC, to purchase Mitigation Credits for the Victorville Sanitary Landfill Phase 2 Project
End
RECOMMENDATION(S)
Recommendation
Approve Credit Sale and Transfer Agreement with IZOTE HOLDINGS, LLC, including non-standard terms, for the one-time purchase of 10.08 Stream Credits to mitigate impacts from the Victorville Sanitary Landfill Phase 2 Project, in the amount of $740,880.
(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) (6700004250) 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. As set forth in the Credit Sale and Transfer Agreement, the total one-time cost for purchase of the required amount of mitigation credits is $740,880. Sufficient appropriation and revenue have been included in the SWMD 2026-27 budget.
BACKGROUND INFORMATION
The Victorville Sanitary Landfill (VSL) is a regional Class III landfill located at 18600 Stoddard Wells Road, adjacent to the City of Victorville. Since commencing operations in 1975, VSL has accepted municipal solid waste generated throughout San Bernardino County (County). The VSL occupies approximately 491 acres of which 341 are permitted for refuse disposal. The refuse disposal area is developed in phases (Phase 1, 2 and 3) with disposal activities currently occurring within the Phase 1 area.
The Phase 2 Project (Project) will develop approximately 107 acres to provide additional disposal capacity for municipal solid waste at VSL. Project activities include site grading, vegetation removal, and clearing the area in preparation for construction of future composite landfill liner. SWMD has obtained all necessary regulatory approvals to develop the Phase 2 area.
The Project may result in environmental impacts to approximately 3.36 acres of ephemeral riverine Waters of the State. This means there could be potential impacts to natural stormwater runoff drainage and flow patterns. To mitigate these impacts, SWMD is required to purchase wetland or streambed riparian enhancement mitigation credits prior to initiating Project activities. This mitigation requirement is a condition of the permits and approvals issued by the Lahontan Regional Water Quality Control Board and the California Department of Fish and Wildlife (CDFW), including the Lake and Streambed Alteration Agreement issued pursuant to Fish and Game Code section 1600 et seq. The regulatory agencies established a 3:1 mitigation-to-impact ratio, requiring SWMD to purchase 10.08 stream mitigation credits to offset the Project's 3.36 acres of impacts. The required mitigation will be satisfied through the purchase of wetland or streambed riparian enhancement mitigation credits before construction begins.
The Lake and Streambed Alteration Agreement establishes mitigation requirements for impacts to regulated streambeds and associated riparian resources resulting from Project activities. Wetland or streambed riparian enhancement credits represent units of ecological restoration or preservation that are purchased from an approved mitigation bank to compensate for unavoidable impacts to Waters of the State and other regulated aquatic resources. The purchase of these credits ensures that the Project's environmental impacts are offset in accordance with applicable regulatory requirements.
Approval of the Credit Sale and Transfer Agreement (Agreement) with IZOTE HOLDINGS, LLC (IZOTE) will enable SWMD to purchase the required 10.08 stream mitigation credits from the West Harper Conservation Bank. The West Harper Conservation Bank was established on April 4, 2024, through an agreement among IZOTE, the U.S. Fish and Wildlife Service, and the CDFW to provide environmental mitigation credits for projects within San Bernardino county. Mitigation credits are purchased on a per-acre basis, and the total cost for the required 10.08 credits is $740,880. The regulatory agencies have reviewed and approved the use of the West Harper Conservation Bank and determined that the proposed mitigation credits satisfy the Project's mitigation requirements. Approval of this Agreement is necessary to comply with permit conditions and will allow the Project to commence in fall 2026.
The Agreement is the standard purchase agreement from IZOTE, which omits certain County standard contract terms as follows:
1. The Agreement does not include 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, IZOTE 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.
a. County standard payment terms are Net 60 without penalty of voiding the contract.
b. 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 purchase of new mitigation credits.
3. The Agreement is silent on governing law.
a. The County standard contract requires California governing law.
b. 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, IZOTE 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 IZOTE to indemnify the County, as required by County Policies 11-05 and 11-07.
a. 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.
b. Potential Impact: IZOTE is not required to defend, indemnify or hold the County harmless from any claims, including indemnification for claims arising from IZOTE’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 IZOTE to meet the County’s insurance standards as required pursuant to County Policies 11-05, 11-07, and 11-07SP.
a. 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.
b. Potential Impact: The County has no assurance that IZOTE 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.
a. County Policy 11-05 requires venue for disputes in Superior Court of California, County of San Bernardino, San Bernardino District.
b. Potential Impact: IZOTE is located in Rocklin, California. Having no express venue in the Agreement means that Placer 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 August 7, 2026; Risk Management (Stephanie Pacheco, Staff Analyst II, 386-9039) on September 9, 2026; and County Finance and Administration (Scott Bruckner, Administrative Analyst, 387-4222) on September 2, 2026.