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R 5127 RESOLUTION NO. 5127 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 NO. 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 RESOLUTION NO. 5127 PAGE 2 concluded, as presented to the County Board of Supervisors in August 2021, that five new full- 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 but not before completion of item (c) below, with particular emphasis on items (ii) and (iii). c) The IWMA must also take the following actions: RESOLUTION NO. 5127 PAGE 3 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 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 Mayor Ray Russom, seconded by Council Member George, and by the following roll call vote, to wit: AYES: Mayor Ray Russom, Council Members George, Storton, Barneich, and Paulding NOES: None ABSENT: None the foregoing Resolution was passed and adopted this 9th day of November, 2021. RESOLUTION NO. 5127 PAGE 4 ip a, -As I. CAREN RA r'' SSOM, MAYOR ATTEST: ( L7tJ-L JESSICA MATSON, CITY CLERK APPROVED AS TO CONTENT: \--aligrA 0 ( if 1 WHITNEY ' DONALD, CITY MANAGER APPROVED AS TO FORM: TIMOTH J. CARMEL, CITY ATTORNEY OFFICIAL CERTIFICATION I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis Obispo, State of California, do hereby certify under penalty of perjury, that the attached Resolution No. 5127 was passed and adopted at a regular meeting of the City Council of the City of Arroyo Grande on the 9th day of November, 2021. WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 12th day of November, 2021. JESSICA MATSON, CITY CLERK