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Home My WebLink About04/02/1996, C-8 - INTEGRATED WASTE MANAGEMENT AUTHORITY (IWMA) V. CITY OF PASO ROBLES MEETING DATE: city of San wis oBispo 4-2-96 COUNCIL AGENDA REPORT ITEM FROM: Jeff Jorgense 'ty Attorney SUBJECT: INTEGRATED WASTE MANAGEMENT AUTHORITY (IWMA) V. CITY OF PASO ROBLES CAO RECOMMENDATION Authorize the Mayor to sign the "Assignment of Causes of Action for the Collection of Unpaid Tipping Fees" in the matter of Integrated Waste Management Authority (IWMA) v. Cily of Paso Robles. DISCUSSION Background At the December 12, 1995 regular City Council meeting, in closed session, the City Council agreed to assign to the Integrated Waste Management Authority (IWMA) all causes of action it may have arising under the Memorandum of Agreement against the City of Paso Robles for the collection of tipping fees. Since December 12, 1995, several efforts have been made to settle the dispute between IWMA and the City of Paso Robles without litigation. Unfortunately,these efforts have not been successful. All the other cities (except Paso Robles) and the County, have agreed to assign their right to sue to IWMA. IWMA will indemnify the cities and county from all.costs associated with the litigation, should it be necessary. There is still a possibility that IWMA will be able to resolve this dispute amicably and discussions with Paso Robles are ongoing. FISCAL IMPACT There will be no fiscal impact to the City. JGJ/sw Attach: 1-March 26, 1996 Letter from County Counsel 2-Agreement I OFFICE OF THE ASSISTANT > COUNTY COUNSEL JACA CRAWFORD CHIEF DEPUTY COUNTY OF SAN LUIS OBISPO R.WYATT CASH COUNTY GOVERNMENT CENTER.ROOM 388 SAN LUIS OBISPO, CA 93408 DEPUTIES TELEPHONE 781-5 .781-501 JOHN PAUL DALY FAX 7814221 JON M.JENKINS (AREA CODE 80S) JAMES B.ORTON JAMES B.LINDHOLM.JR. WARREN R.JENSEN COUNTY COUNSEL MAW A.T004M RAYMOND A.BIERING March 26, 1996 A.EDWIN CLAN PATRICIA A.STEVENS KATHY BOUCHARD TIMOTHY MONULTY ANN CATHERINE DUGGAN David R. Hunt, Esq. /Jeffrey G. Jorgensen, Esq. City Attorney of Morro Bay City Attorney of San Luis Obispo and Pismo Beach Post Office Box 8100 738 Higuera Street, Suite H San Luis Obispo, CA 93403-8100 San Luis Obispo, CA 93401 Roger C. Lyon, Jr., Esq. Arther R. Montandon, Esq. Lyon & Carmel City Attorney of Atascadero City Attorney of Arroyo Grande c/o Office of City Attorney 1104 Palm Street 110 East Cook Street Post Office Box 922 Santa Maria, CA.93454 San Luis Obispo, CA 93406 REC James F. Rupp, Esq. E I V E D City Attorney of Grover Beach NAR..2 6 1996 220 West Seventh Street Post Office Box 1426 OFFICEOF Oxnard, CA 93032-1426 Re: San Luis Obispo County Integrated Waste Management Authority v. City of EI Paso de Robles; Assignment of Causes of Action for the Collection of Unpaid Tipping Fees Dear City qey� The San Luis Obispo County Integrated Waste Management Authority (IWMA) met in closed session on March 13, 1996, with regard to the outstanding dispute between the IWMA and the City of Paso Robles regarding unpaid tipping fees. The IWMA Board considered its efforts since last June to amicably resolve the dispute with Paso Robles and considered its most recent request to Paso Robles to either settle the dispute or agree to some form of binding arbitration. In view of the lack of a positive response to any of the settlement offers made by the IWMA or any agreement to submit to binding arbitration, the IWMA Board directed its staff to retain counsel for the purpose of proceeding with litigation to collect the unpaid fees. The IWMA Board also directed me to forward to the City Attorneys a proposed assignment agreement to enable the IWMA to pursue the litigation on behalf of its member jurisdictions. �� Z David R. Hunt, Esq. Jeffrey G. Jorgensen, Esq. Roger C. Lyon, Jr., Esq. Arther R. Montandon, Esq. James F. Rupp, Esq. Re: San Luis Obispo County Integrated Waste Mgmt Authority v. City of EI Paso de Robles March 26, 1996 Enclosed for your review is an Agreement assigning all causes of action pertaining to the collection of the unpaid tipping fees to the IWMA. The Agreement provides that the IWMA will indemnify its member jurisdictions with regard to the litigation to collect the unpaid tipping fees. Please review the enclosed assignment Agreement and, if acceptable, schedule it for approval by your jurisdiction at your earliest convenience. Your ongoing assistance and cooperation with regard to this matter are appreciated. If you have any questions or if I can otherwise be of assistance to you, please let me know. Very truly yours, JAMES B. LINDHOLM, JR. Count Counsel - 1 By: Raymond. Biering Deputy County Counsel RAB:mja Enclosure cc: Bill Worrell (w/enclosure) 1005mja6.hr PWASTE -2- c- P=3 o ASSIGNMENT OF CAUSES OF ACTION FOR THE COLLECTION OF UNPAID TIPPING FEES THIS ASSIGNMENT is made and entered into by and between the SAN LUIS OBISPO COUNTY INTEGRATED WASTE MANAGEMENT AUTHORITY (hereinafter referred to as the "IWMA') and the cities of ARROYO GRANDE, ATASCADERO, GROVER BEACH, MORRO BAY, PISMO BEACH, and SAN LUIS OBISPO (hereinafter collectively referred to as the "CITIES") and the COUNTY OF SAN LUIS OBISPO (hereinafter referred to as the 'COUNTY). WHEREAS, the California Legislature enacted the California Integrated Waste Management Act of 1989, commonly referred to as Assembly Bill 939; and WHEREAS, Assembly Bill 939 mandates that certain solid waste planning and management be undertaken by the County of San Luis Obispo and the cities located within said County; and WHEREAS, the CITIES and the COUNTY entered into a memorandum of agreement dated October 3, 1990, which provided, among other things, that the CITIES and the COUNTY would collectively pursue a County-wide approach to the problems of solid waste management and implementation of the requirements mandated by Assembly Bill 939, that the necessary ordinances and resolutions would be adopted by the CITIES and the COUNTY to levy a tipping fee surcharge equivalent to $1.00 per ton at all public landfills in the County of San Luis Obispo, and that the tipping fee surcharge would be apportioned among all of the residents of the County of San Luis Obispo in an equitable manner; and C- V �� s WHEREAS, on July 16, 1991, the COUNTY and the City of Paso Robles entered into an agreement to increase the above-referenced $1.00 per ton tipping fee to $3.00 per ton commencing November 15, 1991; and WHEREAS, on July 16, 1991, the City Council of the City of Paso Robles adopted Resolution No. 91-91 approving the agreement increasing the tipping fee and authorized the Mayor of the City to execute said agreement on behalf of the City; and WHEREAS, the City of Paso Robles did collect the tipping fees as required by the above-referenced memoranda of agreement and did pay the tipping fees to the County Auditor-Controller as required by said agreements until 1992; and WHEREAS, in 1992 the City of Paso Robles discontinued paying the tipping fees collected in accordance with the above-referenced memoranda of agreement and, since that time, has failed and refused to pay any further tipping fees as required by the agreements; and WHEREAS, the CITIES and the COUNTY wish to collectively assign to the IWMA all rights to recover the unpaid tipping fees from the City of Paso Robles as set forth in this Assignment Agreement. NOW, THEREFORE, it is agreed as follows: 1. The undersigned CITIES and COUNTY hereby irrevocably assign to the IWMA all of their right, title, and interest in and to any causes of action against the City of Paso Robles in connection with the failure and refusal by Paso Robles to collect and pay tipping fees as required by the memoranda of agreement referenced above. In addition, the IWMA hereby acquires the full power to prosecute, -2- C_ 8 S e compromise, settle, reassign, and give a release in full or partial settlement of the causes of action. 2. In consideration for this assignment, the IWMA agrees to indemnify the CITIES and the COUNTY as set forth herein and agrees that any funds recovered by the IWMA will be utilized by the IWMA for the benefit of its member jurisdictions. 3. Time is of the essence of this Assignment. . 4. This Assignment and each of its provisions shall be binding on and shall inure to the benefit of the respective successors and assigns of the parties to this Assignment. 5: If any term or provision of this Assignment or any application thereof shall be held invalid or unenforceable, the remainder.of this Assignment shall not be affected thereby, but shall remain valid and enforceable. 6. This Assignment shall be governed by and construed in accordance with the laws of California. 7. In acting in accordance with this Assignment, the IWMA shall indemnify, defend, and hold the CITIES and the COUNTY harmless against any and all claims, demands, losses, costs, liability, damages and expenses of any nature, including attorneys' fees and costs, that the CITIES and COUNTY jointly or severally incur or suffer, which arise, result from, or relate to any legal challenges regarding the collection, disbursement, use, and recovery of the tipping fees referenced above. -3- e 8. This Assignment may be executed in.one or more counterparts, each of which shall be deemed an original. CITY OF ARROYO GRANDE By: Date: Mayor Resolution No. Clerk APPROVED AS TO-FORM AND LEGAL EFFECT: A By: City Attorney CITY OF ATASCADERO By: Date: Mayor Resolution No. Clerk APPROVED AS TO FORM AND LEGAL EFFECT: By: City Attorney Dated: -4- ��7 a CITY OF GROVER BEACH By: Date: Mayor Resolution No. Clerk APPROVED AS TO FORM AND LEGAL EFFECT: By: City Attorney CITY OF MORRO BAY By: Date: Mayor Resolution No. Clerk APPROVED AS TO FORM AND LEGAL EFFECT: By: City Attorney . CITY OF PISMO BEACH By: Date: Mayor Resolution No. Clerk -5- e APPROVED AS TO FORM AND LEGAL EFFECT: By: City Attorney CITY OF SAN LUIS OBISPO By: Date: Mayor Resolution No. Clerk APPROVED AS TO FORM AND LEGAL EFFECT: A mey COUNTY OF SAN LUIS OBISPO By: Date: Chairperson Resolution No. Clerk APPROVED AS TO FORM AND LEGAL EFFECT: JAMES B. LINDHOLM, JR. County Counsel By: Deputy County Counsel -6- �'-fl'f o INTEGRATED WASTE MANAGEMENT AUTHORITY By: APPROVED AS TO FORM AND LEGAL EFFECT: By: IWMA Counsel RA&0979mja8.agr/WWASTE -7-