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HomeMy WebLinkAboutItem 6g. Consider remaining a Member Agency of the SLO County Integrated Waste Management Authority (IWMA) Item 6g Department: Utilities Cost Center: 6107 For Agenda of: 10/19/2021 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Jordan Lane, Solid Waste and Recycling Coordinator SUBJECT: CONSIDER ADOPTING A RESOLUTION TO REMAIN A MEMBER AGENCY OF THE SAN LUIS OBISPO COUNTY INTEGRATED WASTE MANAGEMENT AUTHORITY (IWMA) RECOMMENDATION Adopt a Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, to remain a member agency of the San Luis Obispo County I ntegrated Waste Management Authority Joint Powers Authority (JPA) provided certain conditions are satisfied.” DISCUSSION Background The Integrated Waste Management Authority a Joint Powers Authority The Integrated Waste Management Authority (“IWMA”) is a Joint Powers Authority (“JPA”) that has been comprised of the County of San Luis Obispo (“County”), seven cities (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo) and Community Services Districts (Heritage Ranch, San Miguel, Nipomo, San Miguel Sanitary District, California Valley, Cambria, Cayucos, Oceano, Los Osos, and Templeton). The IWMA manages regional household hazardous waste programs and educates and reports on solid waste, recycling, and food/green waste on behalf of its members. The IWMA has allowed JPA members to pool resources and cost-effectively comply with various solid waste regulations, including the recently enacted Short Lived Climate Pollutants regulations – commonly referred to as Senate Bill (SB) 1383. The IWMA staff administer over 40 different solid waste programs, including monitoring and reporting to the State, household hazardous waste collection, electroni cs waste collection, sharps disposal, and public education and outreach. The City as a participant member agency fiscally supported the IWMA’s activities on its behalf through payment of solid waste management fees imposed on all solid waste ratepayers and through payment of landfill tipping fee surcharges. Page 589 of 850 Item 6g The City, as a participating member agency, fiscally supported the IWMA’s activities on its behalf through payment of solid waste management fees imposed on all solid waste ratepayers and through payment of landfill tipping fee surcharges. SB 1383 Compliance – The Most Significant Change to Solid Waste Regulations in 30 years The IWMA is presently assisting all member agencies in complying with SB 1383, the most significant change to solid waste regulations in California in 30 years. SB 1383 requires all jurisdictions to implement organic waste diversion programs to reduce emissions of methane gas and help curb climate change. These programs must include providing organic waste collection services to businesses and residences, edible food recovery, public education and outreach, contamination monitoring and sampling activities, recordkeeping and reporting, infrastructure capacity planning, procurement of recovered organic waste products, and enforcement. County of San Luis Obispo Withdrawal On May 18, 2021, the County of San Luis Obispo commissioned a third-party study of costs to assess the fiscal impacts of the County’s withdrawal from the IWMA. The study determined five new full-time positions and multiple programs would be necessary to meet the service level necessary for compliance with SB1383 and historically provided by the IWMA. The cost of implementing a new program at the County was estimated to be between $1.6 to $2.1 million per year. To cover these projected cost increases, the County would need to immediately increase solid waste rates by 10% to 12% for residents in unincorporated areas. The County’s analysis did not include consideration of how withdrawal would financially impact remaining JPA members, or the policy and agreement issues raised from such a withdrawal. In 2021, the County of San Luis Obispo commissioned this series of events contributed to the County commissioning a third-party study of costs to assess the fiscal impacts of the County’s withdrawal from the IWMA and assumption of the essential functions of the IWMA provided to the County as a member agency. The study determined five new full- time positions and multiple programs would be necessary to meet the service level provided and continued compliance with State laws. The cost of implementing a new program at the County was estimated to be between $1.6 to $2.1 million per year. To cover these projected cost increases, the County would need to immediately increase solid waste rates by 10% to 12% for residents in unincorporated areas. The County’s analysis did not include consideration of how withdrawal would financially impac t remaining JPA members, or the policy and agreement issues raised from such a withdrawal. On August 10, 2021, the County Board of Supervisors held a hearing to decide whether to withdraw from the IWMA, and on September 14, 2021, the County Board of Supervisors passed a resolution to formally notify the IWMA of its intent to withdraw on November 15, 2021. Page 590 of 850 Item 6g IWMA Board Hiring of Consultant to Conduct Analysis of Fee Increases Given County Withdrawal On September 8, 2021, the IWMA Board met and appointed HF&H, a consulting firm specializing in solid waste, to conduct an analysis of the impacts of the County’s withdrawal from the JPA and potential IWMA fee increases given the departure of the County and the implementation of SB1383. Given this change in participation in the JPA, the applicability and accuracy of the initial fee increase previously identified by IWMA (to implement SB1383) must be reevaluated and the City expects to obtain that assessment from HF&H in early October 2021. Ratepayers in the City currently contribute approximately $255,000 per year to the IWMA for its services through a combination of a solid waste management fee paid by all solid waste rate payers (approximately $168,000 per year) and a landfill tipping fee surcharge of $3 per ton (approximately $87,000 per year). This $255,000 amounts to roughly 12.75% of the IWMA’s $2 million annual budget. Prior the County’s withdrawal notification the IWMA stated the need to increase its annual budget to about $3.7 million to conduct additional SB1383 compliance work. The HF&H fee reanalysis is currently underway and will confirm or revise estimated fiscal impacts of the County leaving the IWMA and the service costs of complying with SB1383 by IWMA by member agencies. On September 8, 2021, the IWMA Board met and appointed HF&H, a consulting firm specializing in solid waste, to conduct an analysis of the IWMA fee increase necessary given the departure of the County and the implementation of SB1383. HF&H is currently contracted by the IWMA to guide member agencies in complying with SB1383 and performed an initial analysis of a necessary IWMA fee increase. Given this change in participation in the JPA the applicability and accuracy of the initial fee increase previously provided must be reevaluated, and the City expects to obtain a secondary assessment from HF&H in early October 2021. Continued Role of IWMA and Agency Participation in JPA While changes in service level and revenue are anticipated impacts of the departure of the County, further analysis is required to understand the breadth of those impacts on the remaining member agencies. Despite the circumstances of the County’s departure and amidst the reassessment of fees, representatives of several cities and special districts have expressed their intent to remain members of the IWMA. The City of San Luis Obispo is and has been a significant partner to the IWMA since its inception, and the IWMA has been a critical partner in assisting the City in meeting compliance with State mandates including SB1383. Agencies continued participation as members of the IWMA is critical for the JPA’s ongoing viability as a regional organization. Regionality in solid waste traditionally provides an economy of scale, ensures consistent education and outreach among member jurisdictions, and locally has been a successful means of meeting waste diversion and compliance since 1994. The role of the IWMA has provided its member agencies with educational outreach on landfill diversion, source reduction, and emissions reduction efforts implemented in local communities. Page 591 of 850 Item 6g While changes in service level and revenue are anticipated impacts of the departure of the County, further analysis is required to understand the breadth of those impacts on the remaining member agencies. Despite the circumstances of the County’s departure and amidst the reassessment of fees, representatives of several cities and special districts have expressed their intent to remain members of the IWMA at this time. The City of San Luis Obispo is and has been a significant partner to the IWMA since its inception, and the IWMA has been a critical partner in assisting the City in meeting compliance with multiple State mandates including SB1383 . Agencies’ continued participation as members of the IWMA is critical for the JPA’s ongoing viability as a regional organization. Regionality in solid waste provides an economy of scale, ensures consistent education and outreach among member jurisdictions, and locally has been a successful means of meeting waste diversion and compliance since 1994. The IWMA has provided its member agencies with educational outreach on landfill diversion, source reduction, and emissions reduction efforts implemented in loca l communities. Proposed Resolution in Support of Continued Participation in IWMA JPA The IWMA is a regional government entity representing its members in solid waste diversion and reduction efforts. The efficacy of the organization depends on the breadth and participation of its member base. To remain an operating JPA the remaining member agencies must agree on terms for the organization sans the County’s involvement. Staff and City Management met and conferred on what conditions would be necessary to commit to continued membership once the County fully withdraws. The proposed Resolution requires revisions to the JPA Agreement, and additional actions for the IWMA, in order for the City to continue its membership at this time. These revisions and additional actions include: JPA Revisions 1. Remove the five County Supervisors as voting board members of the IWMA effective immediately. 2. Remove the eight-member (super-majority) voting provision stated in Section 8.5 of the existing Agreement. 3. Add a provision to the Agreement which clearly and directly limits the IWMA’s ability to adopt, impose, or implement any rule, regulation, policy, or ordinance in excess of the State requirements. Additional Actions 1. Begin recruitment and diligently pursue hiring a permanent Executive Director as soon as practical. 2. Hire a third-party firm with solid waste management expertise to analyze fees and staffing structures and to make a recommendation for any programs and services that are not required by, or are in excess of, State solid waste regulations. The report shall identify potential cost saving measures and the IWMA Board shall evaluate and implement those recommendations to reduce costs and minimize expenses. The report must be completed and distributed to all JPA members. Page 592 of 850 Item 6g By adopting this Resolution, the City will achieve compliance with SB 1383 through the services the JPA provides. Additionally, the IWMA will continue as a regional organization providing cost-effective solid waste regulatory compliance services to our nei ghboring communities. The Joint Powers Agreement establishing the IWMA was written in 1994 and remains the current and active version. Section 14 of the existing Joint Powers Agreement states that amendments may only be made by a written instrument execu ted by all Members. Several other cities will be considering adoption of a similar resolution. The City of Paso Robles presented a similar resolution on October 5th which was adopted, and Grover Beach plans to present on October 12th. Policy Context The City’s Climate Action Plan Pillar 5: Circular Economy lists waste diversion as a means of achieving Greenhouse Gas Emissions Goals. Participation in the IWMA’s outreach and education, monitoring, and compliance programs has helped the City make progres s towards our Climate Action Plan goals with regional impact. CONCURRENCE The City’s Finance and Attorney Offices concur with the findings of this report. ENVIRONMENTAL REVIEW The recommended actions are not a project as defined under CEQA Guidelines Section 15738. Fiscal Analysis: The Fiscal Analysis to remaining member agencies of the IWMA will be calculated by HF&H Consultants during the reanalysis of the IWMA fee increase (currently underway). IWMA related fees have historically been assessed as pass-through costs to customers of San Luis Garbage Company. ALTERNATIVES The City Council could continue this item for consideration at a future Council meeting and provide additional direction to staff to perform an analysis on the comparative costs of staffing and performing these services in-house. ATTACHMENTS A – Draft Resolution committing to remain a member agency to the IWMA provided certain conditions are satisfied. B – Joint Powers Agreement to Establish an Integrated Waste Management Authority for the Cities and County of San Luis Obispo, California. Page 593 of 850 Page 594 of 850 R ______ RESOLUTION NO. _____ (2021 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, TO REMAIN A MEMBER AGENCY OF THE SAN LUIS OBISPO COUNTY INTEGRATED WASTE MANAGEMENT AUTHORITY JOINT POWERS AUTHORITY (JPA) PROVIDED CERTAIN CONDITIONS ARE SATISFIED WHEREAS, the Integrated Waste Management Authority (“IWMA”) is a JPA comprised of the County of San Luis Obispo, (“County”) seven local agencies (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach and San Luis Obispo) and a representative of the Community Services District. The IWMA manages, on behalf of its members, hazardous waste, universal waste, solid waste, recycling, and food/green waste; and WHEREAS, the IWMA is a way for JPA members to pool resources and cost - effectively comply with various solid waste and other regulations including, but not limited to, Senate Bill (SB) 1383, the recently enacted Short Lived Climate Pollutants regulations. The IWMA staff is responsible for administration of over 40 different solid waste programs including household hazardous waste collection, electronics waste collection, and sharps disposal, and many of which require public education and outreach , monitoring, and reporting to the State; and WHEREAS, the City supports the IWMA through payment of solid waste management fees imposed on all solid waste ratepayers; and WHEREAS, the IWMA is presently helping all member agencies comply with SB 1383, which is the most significant change to solid waste regulations in 30 years. SB 1383 requires jurisdictions to implement an organic waste diversion program that includes providing organic waste collection services to businesses and residences, edible food recovery goals, public education and outreach, contamination monitoring and sampling activities, recordkeeping and reporting, organic and edible food recovery, infrastructure capacity planning, procurement of recovered organic waste products, and enforcemen t; and WHEREAS, in October 2019, the IWMA passed a countywide ordinance banning polystyrene products. The ordinance was controversial because it exceeded State requirements. In March 2020, the IWMA board opted to delay implementation of the ordinance by 12 months. In November 2020, the IWMA board adopted a new strategic plan that committed the agency to implementing and not exceeding State regulatory requirements. In April 2021, the IWMA board considered revoking the polystyrene product ban. However, the ban was upheld after invocation of a Supermajority provision written into the JPA; and Page 595 of 850 Resolution No. _____ (2021 Series) Page 2 R ______ WHEREAS, a series of events contributed to the County commissioning a third - party study of costs for the County to withdraw from the IWMA and independently fulfill all essential functions of the IWMA. The study assessed additional costs of $1.6 to $2.1 million per year to unincorporated rate payers and staffing of five new full -time positions to fulfill the programmatic needs for compliance with State mandates. Accord ing to the study, to cover projected cost increases, the County would need to immediately increase solid waste rates by 10% to 12% for residents in unincorporated areas; and WHEREAS, on August 10, 2021, the County Board of Supervisors held a hearing to decide whether to withdraw from the IWMA. The County Board of Supervisors voted to withdraw from the IWMA and implement an independent county solid waste compliance program; and WHEREAS, the County’s analysis and subsequent August 10, 2021 decision to withdraw did not include policy analysis or consideration regarding how withdrawal would financially impact remaining JPA member rates; and WHEREAS, on September 14, 2021, the County Board of Supervisors passed a resolution to formally notify the IWMA of its intent to withdraw on November 15, 2021. NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The City hereby declares intent to remain a member agency of the San Luis Obispo County Integrated Waste Management Authority (IWMA) subject to the following conditions: a) The IWMA Joint Powers Authority Agreement shall be revised as follows: i) Remove the five County Supervisors as voting board members of the IWMA effective immediately; and ii) Remove the eight-member voting provision stated in Section 8.5; and iii) Add a provision to the Agreement which clearly and directly limits the IWMA’s ability to adopt, impose, or implement any rule, regulation, policy, or ordinance in excess of the State requirements. b) The revised JPA Agreement must be fully executed as soon as possible. c) The IWMA must also take the following actions: i) Begin recruitment and diligently pursue hiring a permanent Executive Director as soon as practical; and ii) Hire a third-party firm with solid waste management expertise to analyze fees, staffing structures and make recommendation for any programs and services that are not required by, or are in excess of, State solid waste regulations. The report shall identify potential cost saving measures and the Board shall evaluate and implement those recommendations to reduce costs and minimize expenses. The report must be completed and distributed to all JPA members. Page 596 of 850 Resolution No. _____ (2021 Series) Page 3 R ______ SECTION 2. This Resolution shall take effect on the date it is approved. The City Manager or their designee is directed to deliver this approved resolution to the IWMA’s Acting Executive Director and Executive Committee. Upon motion of Council Member ___________, seconded by Council Member ___________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this _____ day of _______________ 20 21. ___________________________ Mayor Erica A. Stewart ATTEST: ______________________ Teresa Purrington City Clerk APPROVED AS TO FORM: ______________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________ Teresa Purrington City Clerk Page 597 of 850 Page 598 of 850 Page 599 of 850 Page 600 of 850 Page 601 of 850 Page 602 of 850 Page 603 of 850 Page 604 of 850 Page 605 of 850 Page 606 of 850 Page 607 of 850 Page 608 of 850 Page 609 of 850 Page 610 of 850 Page 611 of 850 Page 612 of 850 Page 613 of 850 Page 614 of 850 Page 615 of 850 Page 616 of 850 Page 617 of 850 Page 618 of 850 Page 619 of 850 Page 620 of 850 Page 621 of 850 Page 622 of 850 Page 623 of 850 Page 624 of 850 Page 625 of 850 Page 626 of 850 Page 627 of 850 Page 628 of 850 Page 629 of 850 Page 630 of 850 Page 631 of 850 Page 632 of 850 Page 633 of 850 Page 634 of 850