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HomeMy WebLinkAboutItem 5j. Adopt the second amendment to IWMA JPA and first amendment to IWMA MOA Item 5j Department: Utilities Cost Center: 6107 For Agenda of: 11/16/2021 Placement: Consent Estimated Time: N/A FROM: Aaron Floyd, Utilities Director Prepared By: Jordan Lane, Solid Waste and Recycling Coordinator; Rebecca Bernstorff, Community Services Group Business Manager SUBJECT: ADOPTION OF SECOND AMENDMENT TO THE INTEGRATED WASTE MANAGEMENT AUTHORITY (IWMA) JOINT POWERS AGREEMENT AND FIRST AMENDMENT TO THE IWMA MEMORANDUM OF AGREEMENT RECOMMENDATIONS 1. Adopt the Second Amendment to the IWMA Joint Powers Agreement (JPA) and First Amendment to the IWMA Memorandum of Agreement (MOA) (Attachment A); and 2. Authorize the Mayor to execute future Amendments to the IWMA JPA and MOA, consistent with Council Resolution No. 11283, to formally acknowledge that the future scope of IWMA services to its member agencies will be related solely to State requirements. DISCUSSION Background Along with the Cities of Arroyo Grande, Atascadero, Paso Robles, Grover Beach, Morro Bay, Pismo Beach, and the County of San Luis Obispo, the City of San Luis Obispo entered into a Joint Powers Agreement (JPA) with the IWMA on May 10, 1994, for the purpose of facilitating waste diversion programs and providing economies of scale on a regional basis in accordance with the State’s Integrated Waste Management Act of 1989. In 2001, a Memorandum of Agreement (MOA) was established between the represented Cities, County and certain special districts within San Luis Obispo County amending the JPA agreement to include Authorized Districts for representation on the IWMA Board. JPA Amendment to Continue IWMA Operations After San Luis Obispo County’s Withdrawal from the IWMA On September 14, 2021, the County Board of Supervisors voted to withdraw from the IWMA effective November 15, 2021. To continue the operations of the IWMA Board of Directors, without the County as a member jurisdiction, the Second A mendment to the IWMA JPA (Attachment A) and First Amendment to the IWMA MOA (Attachment B) were adopted by the IWMA Board of Directors on October 13, 2021. Per the existing JPA, for the Amendments to be effective, they must be adopted by all member agencies. Page 87 of 405 Item 5j As proposed, amendments to the IWMA JPA are limited and include specifics as to Board composition, quorum requirements, and the required Government Code designated agency. The JPA Amendment eliminates participation of the County Board of Supervisors, the requirement that a County representative is needed to establish a quorum of the IWMA Board, and the eight-member voting provision in Section 8.5. If unchanged, the eight-member voting provision meant that a unanimous vote could be required on any item with the request of one board member. Instead, this revision now provides for a simple majority on all matters. The proposed First Amendment to the IWMA MOA formalizes the Special Districts’ acceptance of the amendment to the JPA. Policy Context - Previous Council or Advisory Body Action and Future Authorization to Amend On October 19, 2021, City Council adopted Resolution No. 11283 (Attachment C) which declares the City’s intent to remain a member agency of the IWMA provided the following conditions are satisfied: 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. 4. Specify the City of San Luis Obispo as the “designee” under the California Government Code which simply enables the IWMA to exercise both latent and articulated powers for solid waste management otherwise permitted by the powers of the City of San Luis Obispo. Two of the conditions are addressed within these proposed Amendments to the JPA and MOA including removal of the five County Supervisors as voting IWMA Board members and removal of the eight-member voting provision. The third and final condition, limiting IWMA’s scope of services to State mandates only, is not included in these proposed Amendments. Like San Luis Obispo, the cities of Grover Beach, Pismo Beach, and Paso Robles adopted similar resolutions, and all included the third condition. On November 10, 2021, the IWMA Board initiated the formation of an Ad Hoc Committee to develop further revisions to the JPA which is anticipated to include a provision limiting the scope of services provided by the IWMA to state mandates only in alignment with the resolutions passed by member agencies as described above. At this time, the proposed Amendments to the JPA and MOA reflect a preliminary step in a more extensive revision of the JPA which will be drafted by the Ad Hoc Committee and presented to the IWMA Board of Supervisors at a future date. Page 88 of 405 Item 5j Staff recommends authorizing the Mayor to execute a future amendment of the JPA consistent with Resolution No. 11283 and thereby limiting the scope of IWMA services to State mandated activities. If other amendments are advanced by the IWMA, the full package of amendments will return to the City Council for consideration. Public Engagement This is an administrative item, so no outside public engagement was completed. Public comment can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting. CONCURRENCE The City’s Utilities Department, Community Services Group, and City Attorney’s Office concur with the recommendations made in this report. ENVIRONMENTAL REVIEW The proposed ordinance is exempt per California Environmental Quality Act (CEQA) Guidelines Section 15061(b)(3), the “Common Sense” exemption because the proposed action consists only of the adoption of new standards and will have no physical effects on the environment and has no possibility of a significant adverse effect on the environment. FISCAL IMPACT Budgeted: No Budget Year: N/A Funding Identified: No Fiscal Analysis: Funding Sources Total Budget Available Current Funding Request Remaining Balance Annual Ongoing Cost General Fund $ $ $ $ State Federal Fees Other: Total $0.00 $0.00 $0.00 $0.00 Page 89 of 405 Item 5j ALTERNATIVES 1. Continue consideration of this item. The City Council may continue consideration of the recommendation if more information is needed to make a decision or until remaining conditions as listed in Resolution No. 11283 (2021 Series) are included in the proposed revision. 2. Adopt only the revised JPA and MOA. City Council may choose not to authorize the Mayor to execute a future Amendment to the JPA and MOA limiting the scope of the IWMA services to State mandated activities. ATTACHMENTS A – Second Amendment to the IWMA JPA B – First Amendment to the IWMA MOA C – Resolution No. 11283 (2021 Series) Page 90 of 405 Page 91 of 405 Page 92 of 405 Page 93 of 405 Page 94 of 405 Page 95 of 405 Page 96 of 405 Page 97 of 405 Page 98 of 405 Page 99 of 405 Page 100 of 405 R 11283 RESOLUTION NO. 11283 (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 enforcement; 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 DocuSign Envelope ID: C2E5642C-9E6E-4811-BC05-1DFAA74E733A Page 101 of 405 Resolution No. 11283 (2021 Series) Page 2 R 11283 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. According 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. DocuSign Envelope ID: C2E5642C-9E6E-4811-BC05-1DFAA74E733A Page 102 of 405 Resolution No. 11283 (2021 Series) Page 3 R 11283 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 Vice Mayor Christianson, seconded by Council Member Shoresman, and on the following roll call vote: AYES: Council Member Marx, Pease, and Shoresman, Vice Mayor Christianson, and Mayor Stewart NOES: None ABSENT: None The foregoing resolution was adopted this 19th day of October 2021. 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 DocuSign Envelope ID: C2E5642C-9E6E-4811-BC05-1DFAA74E733A 10/21/2021 | 7:45 AM PDT Page 103 of 405 Page 104 of 405