Several members of the Eugene City Council are calling for a comprehensive review of the city’s possible financial exposure to Lane County’s CleanLane recycling project. Councilor Mike Clark announced that he has secured three of the four votes needed to schedule a work session before the council’s winter recess in December.
Background on the CleanLane agreement
Lane County is planning a $150 million recycling facility known as CleanLane. Former county counsel Rob Bovett warned that, if the project fails, the county could face liability exceeding $300 million. The concern stems from a 1999 intergovernmental agreement that gives Lane County “sole discretion” to set system‑benefit fees for private haulers that serve Eugene. Those fees fund the county’s waste‑management system and can be passed on to customers as higher trash bills.
Potential impact on Eugene residents
Under the 1999 agreement, Eugene residents—not those of other cities—would be responsible for any CleanLane liability that the county passes on. Councilors argue that Eugene already subsidizes waste‑management costs for neighboring communities that do not contribute to the fee fund.
“If Eugene residents are the ones being left with the bill, we deserve to know exactly what we are facing,” Clark wrote on his campaign’s Facebook page. Councilor Greg Evans added that the city’s garbage rates could rise on both the residential and commercial sides if the project encounters problems.
County’s position
Lane County Waste Management Division Manager Jeff Orlandini told councilors in September 2024 that the county had “eliminated the risk” if Bulk Handling Systems, the Eugene‑based company contracted to build and operate CleanLane, fails to meet performance standards. Orlandini said the county would not be on the hook to purchase equipment or continue the partnership in that scenario, but he did not detail how the county would protect itself from liability if the county itself defaults.
Internal memos indicate that, should the county default, it would be required to pay the contract’s “fair market value” or net profits to Bulk Handling Systems—potentially exposing the county to hundreds of millions of dollars in liability.
Financial estimates
Estimates presented at a September 2024 work session projected an annual $24 increase in residential waste‑disposal fees for fiscal years 2025 and 2026, and a $108 annual increase for commercial customers. Those figures assume the project proceeds as planned; the worst‑case scenario of $300 million liability is based on projected profits over the 25‑year contract.
Council response and next steps
Councilors Clark, Evans, Alan Zelenka and others have repeatedly asked the county how it intends to shield taxpayers from potential debt. Zelenka questioned whether the liability would fall solely on Bulk Handling Systems, to which Orlandini replied, “Yes, it is.”
The city’s spokesperson, Caitlin Wallace, declined to comment on the exposure at this time.
What’s at stake for Eugene families
If the county’s liability materializes, the city’s reliance on the county’s waste‑management system could mean higher trash bills for Eugene households. Councilors are urging transparency so that residents can understand the financial risk and explore options to protect their families.
The council hopes to hold a dedicated work session before the December recess to examine the city’s exposure, review the intergovernmental agreement, and consider possible safeguards.
Original reporting: Homepage – Lookout Eugene-Springfield — read the source article.
