CC 2021-11-09_11a IWMA Second AmendmentMEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY MCDONALD, CITY MANAGER
SUBJECT: APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO
THE IWMA MEMORANDUM OF AGREEMENT, AND RESOLUTION
DECLARING INTENT TO REMAIN A MEMBER OF THE IWMA SUBJECT
TO CONDITIONS
D ATE: NOVEMBER 9, 2021
SUMMARY OF ACTION:
1)Approve the Second Amendment to the San Luis Obispo County Integrated Waste
Management Authority (IWMA) Joint Powers Agreement (JPA) to remove the County of
San Luis Obispo (County) from the JPA, 2) approve the First Amendment to the
Memorandum of Agreement (MOA) between the member jurisdictions of the IWMA and
the special districts that are currently subject to the MOA to acknowledge the Third
Amendment to the JPA, and 3) adopt a Resolution declaring the City’s intent to remain a
member of the IWMA so long as certain conditions are met.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The proposed Resolution includes a condition insisting that the IWMA retain a third-party
firm with solid waste management expertise to analyze fees, staffing structures and make
recommendations for any programs and services that are not required by, or are in excess
of, State solid waste regulations. The condition states that the report shall identify
potential cost saving measures and that the IWMA Board shall evaluate and implement
those recommendations to reduce costs and minimize expenses. At this time, it is unclear
what this report will conclude. It is also currently unclear whether it will be most cost-
efficient to the City and its solid waste customers for the City to remain with the IWMA or
to seek services from another agency, such as the County. Additional time and analysis
is necessary to evaluate this issue, and the proposed Resolution would require the IWMA
to perform the analysis that is necessary to enable the City to make a determination
regarding cost effectiveness. The IWMA has engaged its current consultant, HF&H, to
conduct an analysis of the fees that will be needed to support the IWMA’s work in light of
both SB 1383 and the departure of the County of San Luis Obispo from the IWMA. That
analysis is underway; however, it is not currently scoped to satisfy the condition requiring
a study analyzing the fees, staffing structures, and cost saving measures to be
implemented by the IWMA. IWMA-related fees have historically been assessed as pass-
through costs to the customers of South County Sanitary Services. New or increased
Item 11.a. - Page 1
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 2
IWMA fees will be included as part of a future rate adjustment requested by South County
Sanitary Services consistent with the City’s franchise agreement.
RECOMMENDATION:
1) Approve the Second Amendment to the San Luis Obispo County Integrated Waste
Management Authority (“IWMA”) Joint Powers Agreement; 2) Approve the First
Amendment to the Memorandum of Agreement (MOA) between the member jurisdictions
of the IWMA and the authorized districts; and 3) Adopt a Resolution declaring the City’s
intent to remain a member of the IWMA so long as certain conditions are met.
BACKGROUND:
The Integrated Waste Management Authority (IWMA) is a Joint Powers Authority 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 numerous special districts (the Avila Beach, California Valley, Cambria, Ground
Squirrel Hollow, Heritage Ranch, Los Osos, Nipomo, Oceano, San Miguel, San Simeon,
and Templeton Community Services Districts, and the Cayucos Sanitary District). The
IWMA is governed by a First Amended Joint Powers Agreement entered into by the
County and the seven cities. A Memorandum of Agreement between the IWMA’s member
jurisdictions and the special districts in the County with activated solid waste powers
governs the identified special districts’ participation in the IWMA. The IWMA is governed
by a thirteen-member Board of Directors consisting of all five County Supervisors, one
elected representative from each of the seven cities, and one elected representative from
the participating special districts.
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, electronics waste collection, sharps
disposal, and public education and outreach.
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
Item 11.a. - Page 2
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 3
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 not served by authorized special districts. The County’s analysis
did not include consideration of how withdrawal would financially impact remaining JPA
members, or the policy and JPA
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 voted to withdraw from the IWMA and implement an
independent County solid waste compliance program. 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.
On June 9, 2021, the IWMA Board of Directors adopted a resolution increasing its fees
to address the anticipated additional costs of implementing SB 1383. Under the
previously-adopted fee resolution, waste haulers were responsible for paying the
following fees to the IWMA: 2% of gross revenue collected from commercial customers,
$0.30 per month for residential customers paying less than $50 per month, 2% for
residential customers paying more than $50 per month, and a tipping fee of $3 per ton.
The new resolution adopted in June 2021 imposes the following fees on waste haulers:
3.25% of gross revenue collected from all customers and a $4 per ton tipping fee. The
resolution was to become effective on October 1, 2021. However, significant confusion
arose regarding the proper procedure for implementing the new fees and, upon the
County’s announcement of its intent to withdraw from the IWMA, it became clear that the
adopted fees were likely to change. As a result, the IWMA Board subsequently directed
that the fee resolution will not be implemented until January 1, 2022.
On October 13, 2021, the IWMA Board of Directors approved as to form an amendment
to the JPA that removes the County and enables the Board of Directors to continue to
meet and conduct the necessary business of the IWMA (Attachment 1). In addition, the
IWMA Board of Directors approved as to form an amendment to the MOA between the
IWMA members and the special districts to ensure consistency with the amended JPA
(Attachment 3). In order to become effective, both of these documents must be approved
by all of the remaining members of the IWMA.
ANALYSIS OF ISSUES:
Ratepayers in the City currently contribute approximately $105,000 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 $50,000 per year), and a landfill tipping fee surcharge
of $3 per ton (approximately $55,000 per year). This amounts to roughly 5.25% of the
IWMA’s $2 million annual budget. Prior to the County’s withdrawal notification, the IWMA
Item 11.a. - Page 3
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 4
stated the need to increase its annual budget to about $3.7 million to conduct additional
SB 1383 compliance work. If the City’s contribution rate to the IWMA’s annual operating
costs remains the same, at 5.25%, and if the IWMA’s annual budget remains as estimated
at $3.7 million, the City’s future costs to remain part of the IWMA may be approximately
$194,250. The HF&H fee reanalysis is currently underway and is intended to confirm or
revise estimated fiscal impacts of the County leaving the IWMA and the service costs of
complying with SB1383 by IWMA member agencies. The County’s withdrawal will
increase the City’s proportional share of the IWMA’s annual budget and is expected to
require an increase in the IWMA’s fee for all remaining members.
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 have expressed their
intent to remain members of the IWMA. Toward this end, the cities of Grover Beach,
Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo have adopted resolutions
stating their intent to remain in the IWMA. With the exception of the City of Morro Bay, the
resolutions adopted by the cities include certain conditions that require the IWMA to take
steps to address the near- and long-term needs of the member agencies. These
conditions are discussed in more detail below.
The City of Arroyo Grande is, and has been, a significant partner to the IWMA, and the
IWMA has been a critical partner in assisting the City in meeting compliance with State
mandates, including SB 1383. Agencies continued participation as members of the IWMA
is critical for the IWMA’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. 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 without 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.
Proposed Second Amendment to the JPA and First Amendment to the MOA
The proposed Second Amendment to the JPA and the MOA amendment are necessary
to remove the County from the JPA and its Board of Directors to ensure that the IWMA
Board of Directors may continue to meet without the participation of the County Board of
Item 11.a. - Page 4
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 5
Supervisors. The proposed amendments also include changes to the quorum and voting
provisions contained in section 8.5 of the JPA. Currently, Section 8.5 requires at least
one County representative to constitute a quorum. In addition, Section 8.5 includes
language requiring eight affirmative votes (aka, a “supermajority”) of the Board of
Directors to approve any action when invoked by any member of the Board. This
supermajority provision is proposed to be removed as there will only be eight remaining
members of the IWMA Board of Directors following the removal of the five County
Supervisors. The MOA is also proposed to be amended to bind the participating special
districts to the terms of Second Amended JPA.
It is anticipated that additional amendments will be made to the JPA to address the needs
of the remaining members. A committee of staff from the IWMA and the remaining
member agencies is being formed to develop the additional amendments, which will
return to the member agencies for adoption at a later date.
Resolution of Intent to Remain a Member of the IWMA
In addition to the proposed amendments to the JPA and MOA, a resolution has been
prepared to enable the City to express support for the ongoing regional work of the IWMA
while also identifying specific conditions to address remaining concerns following the
County’s exit (Attachment 5). The proposed Resolution requires additional revisions to
the JPA Agreement, as well as other actions, in order for the City to continue its
membership. These revisions and additional actions include:
1.Add a provision to the JPA which clearly and directly limits the IWMA’s ability
to adopt, impose, or implement any rule, regulation, policy, or ordinance in
excess of State requirements (also requested by Grover Beach, Paso Robles,
Pismo Beach, and San Luis Obispo);
2.Amend the JPA to require at least 6 months’ notice in the event that a member
wishes to leave the IWMA (also requested by Pismo Beach);
3.Begin recruitment and diligently pursue hiring a permanent Executive Director
as soon as practical (also requested by Grover Beach, Paso Robles, Pismo
Beach, and San Luis Obispo); and
4.Hire a third-party firm with solid waste management expertise to analyze fees,
staffing structures and make recommendations 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
review and implement those recommendations to reduce costs and minimize
expenses. The report must be reviewed by the managers of the IWMA member
agencies before it is finalized and implemented (also requested by Grover
Beach, Paso Robles, Pismo Beach, and San Luis Obispo, with the exception
of the italicized language which is proposed by Arroyo Grande); and
Item 11.a. - Page 5
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 6
5.Provide all information necessary to support the adoption of fees that meet all
applicable legal requirements, including any information needed by the
member agencies to implement the IWMA’s fees as determined through
coordination with the managers of the member agencies (requested by Arroyo
Grande only); and
6.Rescind IWMA Resolution No. 21-06-02 and coordinate with the member
agencies’ managers before adopting any other increases to the IWMA’s fees
(requested by Arroyo Grande only).
These changes and actions will correct historical problems at the IWMA and help to bring
stability to the organization. At this time, the first item listed above has been requested by
the cities of Grover Beach, Paso Robles, Pismo Beach, and San Luis Obispo. As a result,
it is proposed that the City support this request as well in order to meet the needs of the
remaining member agencies. The second item listed above has been requested by the
City of Pismo Beach as a mechanism to address the challenges that the short 30-day
notice period currently contained in the JPA has created for the IWMA and its member
agencies. The third item has been included to ensure that the IWMA retains high-quality
leadership to bring greater stability to the organization. The fourth item listed above has
been included to ensure that the IWMA’s budget reflects the true needs of the
organization following the County’s exit. This analysis is crucial to the agency’s ability to
establish appropriate fees to support its ongoing operations.
The fifth and sixth items described above are included to ensure that the City, and all
other member agencies, receive all information necessary to implement future fee
increases by the IWMA. In light of the confusion surrounding the proper procedures for
implementing the IWMA’s fee adjustments, increased coordination is necessary.
Additionally, because the fee increase adopted by the IWMA Board of Directors in June
2021 does not address the effects of the County’s departure, that resolution should be
rescinded so as to not create more confusion for the member agencies, their waste
haulers, or their customers.
The proposed Resolution further states the City’s intent to continue evaluating the
financial implications of remaining with the IWMA as compared to other options for
meeting the State’s waste management requirements, as discussed further below.
Alternatives to Remaining in the IWMA
The City may also consider withdrawing from the IWMA, as the County did; however, the
City would then become responsible for all of the work required under applicable State
laws governing waste management, including SB 1383. This would require the City to
implement new programs in the following areas, at a minimum:
•Ordinances and policies meeting all applicable State laws and regulations;
Item 11.a. - Page 6
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 7
•Management of household hazardous waste recovery sites and services;
•Capacity planning for organics processing and edible food recovery;
•Ensure that all customers have organics collection services and that the organics
waste streams are properly processed;
•Monitoring and enforcement, including annual inspections of commercial and
multi-family housing solid waste accounts, as well as contamination monitoring of
all waste streams;
•Planning and implementation of an edible food recovery program;
•Education and outreach to all solid waste customers on their compliance
obligations; and
•Reporting and record keeping, including submittal of annual reports to the State.
In order to complete these tasks itself, the City would need to hire additional staff and
consultants who are experienced in managing waste programs in California. It is highly
likely that the costs to implement the City’s own waste program would exceed the total
fees paid by City customers to the IWMA. However, consultation with experienced waste
management professionals would be needed to more accurately determine the staffing
and financial resources necessary to comply with all applicable waste regulations.
The City may also consider seeking to contract with the County or another agency to
provide the services necessary to meet the State’s waste management requirements.
However, it is unknown whether the County or other city would be interested and/or able
to provide these services to the City, and it is unclear what the costs of such an approach
would be for the City. In addition, contracting with the County or other local agency would
remove the City’s ability to share in policy and governance decisions that impact the City’s
customers. A Joint Powers Authority reserves the ability of the City to take part in these
decisions through representation on the agency’s Board of Directors.
Finally, any efforts by the City to begin its own waste management program or to contract
with another agency, such as the County, for its services runs the risk that the programs
will not be implemented by the January 1, 2022 deadline under SB 1383. Under SB 619,
local agencies may seek reprieve from penalties assessed by CalRecycle for failure to
implement SB 1383. However, agencies are required to provide proof of good faith efforts
to comply.
In light of the foregoing, it is recommended that the City continue its participation in the
IWMA for the time being. Assuming the IWMA satisfies the conditions required by the
cities, more information will become available to identify the true costs to the City’s
customers to continue receiving services from the IWMA. If directed by Council, staff may
also work, in the meantime, to obtain additional information from the County or other
Item 11.a. - Page 7
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 8
agencies to determine the comparative costs of contracting with those other agencies for
waste management services. Approving the amendments to the JPA and MOA and
adopting the proposed Resolution will provide time for the City to gather this information
while also providing proof of the City’s efforts to timely implement SB 1383.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1.Adopt staff’s recommendations to (1) Approve the Second Amendment to the San
Luis Obispo County Integrated Waste Management Authority Joint Powers
Agreement; (2) approve the First Amendment to the Memorandum of Agreement
between the member jurisdictions of the IWMA and the authorized districts; and
(3) adopt a Resolution declaring the City’s intent to remain a member of the IWMA
so long as certain conditions are met;
2.Approve the Second Amendment to the San Luis Obispo County Integrated Waste
Management Authority Joint Powers Agreement, and approve the First
Amendment to the Memorandum of Agreement between the member jurisdictions
of the IWMA and the authorized districts, but do not adopt the Resolution declaring
the City’s intent to remain a member of the IWMA or provide direction to alter and
adopt the Resolution;
3.Provide direction to further evaluate withdrawing from the IWMA and entering into
an agreement with the County to conduct all waste regulatory compliance work; or
4.Provide additional direction to staff to perform an analysis on the comparative costs
of staffing and performing these services in-house; or
5. Provide other direction to staff.
ADV ANTAGES:
Approving staff’s recommendations will enable the City to continue its membership in the
IWMA, which significantly assists the City in satisfying its waste management obligations
under State law, including the pending challenges of SB 1383 implementation. The
proposed Resolution establishes expectations for the IWMA to address the needs of its
member agencies following the County’s exit and to ensure that it will continue to meet
all State mandates for local waste management. Together, the recommended actions will
also provide time for the City, the IWMA, and its member agencies to ensure that the
IWMA continues to provide the most effective and cost-efficient mechanism for meeting
the agencies’ waste requirements.
DISADVANTAGES:
It is unclear what costs will be borne by the City’s customers resulting from the County’s
decision to withdraw from the IWMA and the City’s decision to remain in the IWMA.
Additional information is necessary to fully evaluate this issue and the IWMA will need to
complete a more detailed analysis to provide accurate estimates to the City.
Item 11.a. - Page 8
CITY COUNCIL
APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE
MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA
MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING INTENT TO
REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS
NOVEMBER 9, 2021
PAGE 9
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Attachments:
1.Second Amendment to the Joint Powers Agreement
2.Joint Powers Agreement
3.First Amendment to the Memorandum of Agreement
4.Memorandum of Agreement between IWMA and Special Districts
5.Proposed Resolution
Item 11.a. - Page 9
SAN LUIS OBISPO COUNTY ·
INTEGRATED WASTE MANAGEMENT AUTHORITY
Connecting the Communi t y to Wa s te S olution s
IWMA Board of Di rector's
Charl es Bo urb ea u -Pr es ide nt,
Ci ty of At ascade r o
Jan M arx -Vi ce Pr es id ent,
City of Sa n Lui s Obispo
Rob ert Enn s -Pas t Pr esid ent,
Spec ial Di strict s
Debbi e Arn o ld - Sup erviso r,
Sa n Lui s Obi spo Co un ty Di st. S
Kare n Bri ght,
City of Grove r Beac h
Lynn Co mpton - Sup ervi so r,
San Lui s Obi spo County Di st. 4
Bru ce Gib so n - Su pervisor,
Sa n Lui s Obi spo County Di st . 2
Jo hn Ham o n,
City of Pas o Robl es
Jeff Hell er,
City o f Morro Bay
Sco t t Newto n,
Ci t y of Pi smo Beac h
Dawn Ort iz-Legg - Sup ervi sor,
San Lui s Obispo Co unty Di st. 3
John Pescho ng -Sup erv iso r,
San Lui s Obispo County Di st. 1
Keith St o rto n,
City of Arroyo Gr and e
IWMA Staff
Patti To ew s,
Interim Exec utive Director
Kelly Yo rk,
SB Pro g ram M anage r
Barb ara Aspern e lso n,
Acco untant
Sas ha Del Giorgio,
Clerk of the Bo ard
Jeff Minnery
Lega l Coun se l
October 19, 2021
City of Arroyo Grande
Attn: City Manager and Legal Counsel
300 East Branch Street
Arroyo Grande, CA. 93420
Via Electronic and U.S. Mail
Re: Agency Adoption of Amendment to the IWMA Joint Powers Agreement ("JPA'')
Adoption of Amendment to the IWMA Memorandum of Agreement t'MOA")
Dear City Manager and Legal Counsel:
On October 13, 2021, the Board of Directors of the San Luis Obispo County Integrated Waste
Management Authority ("IWMA11
) approved "as to form 11 the enclosed amendment to the JPA
("JPA Amendment11
). The changes are limited to those specific to board composition, quorum
requirements, and the required Government Code designated agency, following the County's
formal withdrawal on November 15, 2021. The "supermajority11 provision in Section 8.5 is also
deleted. Without this deletion, a unanimous vote could be required on any item with the request
of one board member. Instead, this revision provides for a simple majority on all matters. The
IWMA Executive Committee is considering the formation of an ad hoc committee to assist with
further modification of the JPA in the near future. This JPA Amendment reflects a preliminary
step.
At the same October meeting, the IWMA Board of Directors also approved "as to form 11 the
enclosed amendment to the Memorandum of Agreement ("MOA Amendment11
). The MOA was
originally executed by and between the Cities, the County, and Special Districts with solid waste
powers, to amend the JPA Agreement to include those Special Districts for representation on the
IWMA Board. This MOA Amendment formalizes the Special Districts' acceptance of the
aforementioned amendment to the JPA. For the JPA Amendment and the MOA Amendment to
be effective, they will need to be adopted by all member agencies. It is our anticipation that your
city council will consider these Amendments prior to November 15, 2021 .
Please contact me if you have any questions .
f ~,
~rn,;ve D;rector
· San Luis Obispo Integrated Wa ste Man agement Authority
Enclosures: Amendm ent to IWMA JPA re Quorum_redlin e
Amendment to IWMA JPA r e Qu orum _cl ean
Am endment to IWMA MOA re JPA Am endm ent
Attachment 1
Item 11.a. - Page 10
SECOND AMENDMENT TO THE
SAN LUIS OBISPO COUNTY INTEGRATED WASTE MANAGEMENT AUTHORITY
("IWMA") JOINT POWERS AGREEMENT
This Second Amendment to the Joint Powers Agreement ("Second Amendment")
dated October 13, 2021, is made by and between the incorporated cities of Arroyo
Grande, Atascadero, El Paso de Robles, Grover Beach, Morro Bay, Pismo Beach, and
San Luis Obispo, hereinafter called "Cities," and the County of San Luis Obispo,
hereinafter called "County.
RECITALS
WHEREAS, on May 10, 1994, an agreement was executed by and between the
Cities and the County forming a joint powers authority pursuant to the provisions of the
Joint Exercise of Powers Act (Government Code sections 6500 et seq.), for the purposes
of facilitating the development of waste diversion programs and projects and of providing
economies of scale on a regional basis (hereinafter referred to as the "JPA Agreement");
and
WHEREAS, in or around 2001, a memorandum of agreement ("MOA") was
executed by and between the Cities, the County, and certain special districts within the
County ("Authorized Districts") (collectively "parties") amending the JPA Agreement to
include the Authorized Districts for representation on the IWMA Board ("First Amendment
to the JPA Agreement"); and
WHEREAS, Section 7.2 (b) of the JPA Agreement provides that "[r]epresentatives
to the Authority shall consist of the five members of the Board of Supervisors of the
County of San Luis Obispo and of one additional member from the governing body of
each incorporated city within the boundaries of the County of San Luis Obispo which is a
party to this Agreement ... "; and
WHEREAS, Section 8.5 of the JPA Agreement provides that to establish a quorum
of the IWMA Board, there must be present a majority of representatives, "including one
COUNTY representative"; and
WHEREAS, on September 14, 2021, the County Board of Supervisors voted to
withdraw from the IWMA with an effective date of November 15, 2021; and
WHEREAS, to facilitate the continued operation of the IWMA Board of Directors
without the County as a member jurisdiction, this Second Amendment to the JPA
Agreement is necessary to ( 1) revise the representative members of the IWMA Board of
Directors to eliminate the participation of the County Board of Supervisors; and (2)
eliminate the requirement that a County representative is required to establish a quorum
of the IWMA Board.
1
Item 11.a. - Page 11
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Section 5.3 of the JPA Agreement is amended and restated as follows:
Such powers shall be exercised subject only to the limitations set forth in this
Agreement, applicable law and such restrictions upon the manner of exercising
such powers as are imposed by law upon the Members in the exercise of similar
powers. In no event shall the Authority be authorized to exercise any power not
expressly authorized. The Authority hereby designates the City of San Luis Obispo
San Luis Obispo County as the Member required to be designated by Section 6509
of the California Government Code.
2. Section 7.2 (b) of the JPA Agreement is amended and restated as follows:
Representatives of the COUNTY and CITIES shall be appointed to serve on the
Board in accordance with procedures established by each of the governing bodies
of the member agencies. Representatives to the Authority shall consist of the five
members of the Board of Supervisors of the County of San Luis Obispo and of one
additional member from the governing body of each incorporated city within the
boundaries of the County of San Luis Obispo which is a party to this Agreement,
with each incorporated area being limited to one representative. Representatives
shall serve so long as they hold office with their member agency or until they shall
resign or be removed by a majority vote of their member agency. Vacancies among
representatives shall be filled in the same manner as the first appointment.
3 . Section 8.5 of the JPA Agreement is amended and restated as follows:
8 .5 Quorum and voting. For purposes of conducting business, there shall be
present a quorum consisting of a majority of representatives.,_, including one
COUNTY representative . Each representative shall have one vote. No action
shall be effective without the affirmative votes of a majority of those present.
However, eight (8) affirmative votes shall be required for taking any action in the
event any Member demands such a vote. The representatives to the Authority
shall adopt such procedures as are consistent with this Agreement and necessary
to conduct the business of the Authority in an orderly manner.
4. All other terms and conditions of the JPA Agreement will remain in full force and
effect.
5. Effective Date. This Second Amendment shall become effective upon the adoption
and execution of all member agencies and the formal exit of the County of San
Luis Obispo from the IWMA.
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IN WITNESS WHEREOF, the parties have each caused this Second Amendment
to the JPA to be executed by their duly authorized representative effective upon the
execution by all member agencies.
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SECOND AMENDMENT TO THE
SAN LUIS OBISPO COUNTY INTEGRATED WASTE MANAGEMENT AUTHORITY
("IWMA") JOINT POWERS AGREEMENT
This Second Amendment to the Joint Powers Agreement ("Second Amendment")
dated October 13, 2021, is made by and between the incorporated cities of Arroyo
Grande, Atascadero, El Paso de Robles, Grover Beach, Morro Bay, Pismo Beach, and
San Luis Obispo, hereinafter called "Cities," and the County of San Luis Obispo,
hereinafter called "County."
RECITALS
WHEREAS, on May 10, 1994, an agreement was executed by and between the
Cities and the County forming a joint powers authority pursuant to the provisions of the
Joint Exercise of Powers Act (Government Code sections 6500 et seq.), for the purposes
of facilitating the development of waste diversion programs and projects and of providing
economies of scale on a regional basis (hereinafter referred to as the "JPA Agreement");
and
WHEREAS, in or around 2001, a memorandum of agreement ("MOA'') was
executed by and between the Cities, the County, and certain special districts within the
County ("Authorized Districts") (collectively "parties") amending the JPA Agreement to
include the Authorized Districts for representation on the IWMA Board ("First Amendment
to the JPA Agreement"); and
WHEREAS, Section 7.2 (b) of the JPA Agreement provides that "[r]epresentatives
to the Authority shall consist of the five members of the Board of Supervisors of the
County of San Luis Obispo and of one additional member from the governing body of
each incorporated city within the boundaries of the County of San Luis Obispo which is a
party to this Agreement ... "; and
WHEREAS, Section 8.5 of the JPA Agreement provides that to establish a quorum
of the IWMA Board, there must be present a majority of representatives, "including one
COUNTY representative"; and
WHEREAS, on September 14, 2021, the County Board of Supervisors voted to
withdraw from the IWMA with an effective date of November 15, 2021; and
WHEREAS, to facilitate the continued operation of the IWMA Board of Directors
without the County as a member jurisdiction, this Second Amendment to the JPA
Agreement is necessary to (1) revise the representative members of the IWMA Board of
Directors to eliminate the participation of the County Board of Supervisors; and (2)
eliminate the requirement that a County representative is required to establish a quorum
of the IWMA Board.
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NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. Section 5.3 of the JPA Agreement is amended and restated as follows:
Such powers shall be exercised subject only to the limitations set forth in this
Agreement, applicable law and such restrictions upon the manner of exercising
such powers as are imposed by law upon the Members in the exercise of similar
powers. In no event shall the Authority be authorized to exercise any power not
expressly authorized. The Authority hereby designates the City of San Luis Obispo
as the Member required to be designated by Section 6509 of the California
Government Code.
2. Section 7.2 (b) of the JPA Agreement is amended and restated as follows:
Representatives of the CITIES shall be appointed to serve on the Board in
accordance with procedures established by each of the governing bodies of the
member agencies. Representatives to the Authority shall consist of one member
from the governing body of each incorporated city, within the boundaries of the
County of San Luis Obispo, which is a party to this Agreement, with each
incorporated area being limited to one representative. Representatives shall serve
so long as they hold office with their member agency or until they shall resign or
be removed by a majority vote of their member agency. Vacancies among
representatives shall be filled in the same manner as the first appointment.
3. Section 8.5 of the JPA Agreement is amended and restated as follows:
8.5 Quorum and voting. For purposes of conducting business, there shall be
present a quorum consisting of a majority of representatives. Each representative
shall have one vote. No action shall be effective without the affirmative votes of a
majority of those present. The representatives to the Authority shall adopt such
procedures as are consistent with this Agreement and necessary to conduct the
business of the Authority in an orderly manner.
4. All other terms and conditions of the JPA Agreement will remain in full force and
effect.
5. Effective Date. This Second Amendment shall become effective upon the adoption
and execution of all member agencies and the formal exit of the County of San
Luis Obispo from the IWMA.
IN WITNESS WHEREOF, the parties have each caused this Second Amendment
to the JPA to be executed by their duly authorized representative effective upon the
execution by all member agencies.
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CITY OF ARROYO GRANDE
By: __________ _ Date: ----------Mayor
Resolution No. --------
Clerk
APPROVED AS TO FORM AND LEGAL EFFECT:
By:------------
City Attorney
3
Date: ----------
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FIRST AMENDMENT TO THE
MEMORANDUM OF AGREEMENT BETWEEN THE MEMBER JURISDICATIONS OF
THE SAN LUIS OBISPO COUNTY INTEGRATED WASTE MANAGEMENT
AUTHORITY AND THE AUTHORIZED DISTRICTS
This First Amendment to the Memorandum of Agreement ("First Amendment to
the MOA'') is executed on the date below stated, by and between the Member
Jurisdictions of the San Luis Obispo County Integrated Waste Management Authority (the
County of San Luis Obispo and the incorporated cities of Arroyo Grande, Atascadero, El
Paso de Robles, Grover Beach, Morro Bay, Pismo Beach, and San Luis Obispo) and the
special district parties to the Memorandum of Agreement ("MOA") (Avila Beach
Community Services District, California Valley Community Services District, Cambria
Community Services District, Cayucos Sanitary District, Ground Squirrel Hollow
Community Services District, Heritage Ranch Community Services District, Los Osos
Community Services District, Nipomo Community Services District, Oceana Community
Services District, San Miguel Community Services District, San Simeon Community
Services District, and Templeton Community Services District (hereinafter "Authorized
Districts")).
RECITALS
WHEREAS, on May 10, 1994, an agreement was executed by and between the
incorporated cities of San Luis Obispo County and the County of San Luis Obispo forming
a joint powers authority pursuant to the provisions of the Joint Exercise of Powers Act
(Government Code sections 6500 et seq.), for the purpose of facilitating the development
of waste diversion programs and projects that provide economies of scale without
interfering with individual agencies' exercise of power within their own jurisdiction
(hereinafter referred to as the "JPA Agreement"); and
WHEREAS, pursuant to the JPA Agreement, the power to perform the
responsibilities of the joint powers authority was vested in the San Luis Obispo County
Integrated Waste Management Authority Board of Directors ("IWMA Board"); and
WHEREAS, in or around 2001, an MOA was executed by and between the
incorporated cities, the County of San Luis Obispo, and the Authorized Districts amending
the JPA Agreement to include the Authorized Districts for representation on the IWMA
Board ("First Amendment to the JPA Agreement"); and
WHEREAS, in or around October 13, 2021, the JPA Agreement was amended
("Second Amendment to the JPA Agreement") to reflect the County of San Luis Obispo's
withdrawal from the IWMA (a true and correct copy of the Second Amendment to the JPA
Agreement is attached hereto as Exhibit A); and
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WHEREAS, by this First Amendment to the MOA, the parties hereto desire to
acknowledge, accept, and agree to be bound by the terms and conditions of the Second
Amendment to the JPA Agreement.
NOW, THEREFORE, IT IS AGREED AS FOLLOWS:
1. The parties hereto desire to acknowledge, accept, and agree to be bound
by the terms and conditions of the Second Amendment to the JPA
Agreement.
2. All other terms and conditions of the MOA will remain in full force and effect.
This First Amendment to the MOA may be executed in any number of counterparts,
each of which when executed and delivered shall constitute a duplicate original, but all
counterparts together shall constitute a single agreement.
IN WITNESS WHEREOF, the parties have each caused this First Amendment to
the MOA to be executed by their duly authorized representative effective upon the
execution by all member agencies.
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CITY OF ARROYO GRANDE
By:------------Date: ----------Mayor
Resolution No. -------
Clerk
APPROVED AS TO FORM AND LEGAL EFFECT:
By:------------Date: ----------City Attorney
3
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RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE TO REMAIN A MEMBER AGENCY OF THE
SAN LUIS OBISPO COUNTY INTEGRATED WASTE
MANAGEMENT AUTHORITY PROVIDED CERTAIN CONDITIONS
ARE SATISFIED
WHEREAS, the Integrated Waste Management Authority (“IWMA”) is a Joint Powers
Authority (“JPA”) 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 several special districts (the Avila Beach, California Valley, Cambria, Ground
Squirrel Hollow, Heritage Ranch, Los Osos, Nipomo, Oceano, San Miguel, San Simeon, and
Templeton Community Services Districts, and the Cayucos Sanitary District) that are
represented on the IWMA Board of Directors by one special district appointee;
WHEREAS, the IWMA manages, on behalf of its members, hazardous waste, universal
waste, solid waste, recycling, and food/green waste and 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;
WHEREAS, the IWMA staff is responsible for administering 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 collected from solid waste ratepayers by the City’s waste hauler; and
WHEREAS, the IWMA Board of Directors adopted Resolution N0. 21-06-02 on June 9,
2021, increasing the IWMA’s solid waste management fees to address the increased costs
associated with SB 1383 and establishing an effective date of October 1, 2021, which the Board
of Directors subsequently delayed until January 1, 2022; 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, the County commissioned a third-party study of costs for the County to
withdraw from the IWMA and independently fulfill all essential functions of the IWMA, which
concluded, as presented to the County Board of Supervisors in August 2021, that five new full-
Attachment 5
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RESOLUTION NO.
PAGE 2
time positions and multiple programs would be needed and would result in additional costs to
the County of $1.6 million 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; 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 financial and program 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 that the City Council of the City of Arroyo Grande does
hereby declare, determine, and order as follows:
SECTION 1. The foregoing Recitals are true, correct and are incorporated herein.
SECTION 2. The City hereby declares its 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 Agreement shall be revised, following consultation with the City
Manager and City Attorney, to address the following:
i) Remove the five County Supervisors as board members of the IWMA effective
immediately; and
ii) Remove the eight-member voting provision stated in Section 8.5; and
iii) Alter the notice requirement contained in Section 13.2 to require at least six
months’ notice to the IWMA in the event that a member intends to withdraw from
the IWMA; and
iv) 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
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RESOLUTION NO.
PAGE 3
ii. Hire a third-party firm with solid waste management expertise to analyze fees,
staffing structures and make recommendations 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 review and
implement those recommendations to reduce costs and minimize expenses. The
report must be reviewed by the managers of the IWMA’s member agencies before
it is finalized and implemented; and
iii. Provide all information necessary to support the adoption of fees that meet all
applicable legal requirements, including any information needed by the member
agencies to implement the IWMA’s fees as determined through coordination with
the managers of the member agencies; and
iv. Rescind IWMA Resolution No. 21-06-02 and coordinate with the member
agencies’ managers before adopting any other increases to the IWMA’s fees.
d) The City intends to continue evaluating the cost-effectiveness of remaining a member of
the IWMA as compared to its other options, such as contracting with another agency for
its waste management regulatory services or developing its own program to meet its
regulatory requirements, and reserves its right to withdraw from the IWMA in the future.
SECTION 3. This Resolution shall take effect immediately upon adoption. The City Manager or
their designee is directed to promptly deliver this adopted Resolution to the IWMA’s Interim
Executive Director and Executive Committee.
On motion of Council Member , seconded by Council Member , and by the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 9th day of November, 2021.
Item 11.a. - Page 107
RESOLUTION NO.
PAGE 4
____________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
__________________________________
WHITNEY MCDONALD, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
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