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CC 2021-11-09_11a IWMA Second Amendment_PP Presentation CONSIDERATION OF APPROVAL OF SECOND AMENDMENT TO THE INTEGRATED WASTE MANAGEMENT AUTHORITY (IWMA) JPA, FIRST AMENDMENT TO THE IWMA MEMORANDUM OF AGREEMENT, AND RESOLUTION DECLARING THE CITY’S INTENT TO REMAIN A MEMBER OF THE IWMA SUBJECT TO CONDITIONS 11/09/2021 City Council 1 Background San Luis Obispo County Integrated Waste Management Authority (IWMA) Joint Powers Authority formed in 1994 Comprised of County of San Luis Obispo Seven cities (Arroyo Grande, Atascadero, Grover Beach, Morro Bay, Paso Robles, Pismo Beach, and San Luis Obispo) 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) 11/09/2021 2 Background IWMA Background Cont. Governed by First Amended Joint Powers Agreement Memorandum of Agreement between the IWMA’s member jurisdictions and the special districts in the County with activated solid waste powers Thirteen-member Board of Directors all five County Supervisors one elected representative from each of the seven cities one elected representative from the participating special districts 11/09/2021 3 Background IWMA Role and Responsibilities Responsible for meeting the member agencies’ waste diversion and other waste management requirements imposed by the State Implement SB 1383 requirements, e.g.: Prepare model ordinance Assist in negotiations of franchise agreement amendments Conduct outreach and education for customers Monitor and report to CalRecycle 11/09/2021 4 Background County Withdrawal from IWMA May 18, 2021 - County commissioned third-party study of costs to assess the fiscal impacts of the County’s withdrawal from the IWMA on County customers August 10, 2021 - County Board of Supervisors voted to withdraw from the IWMA and implement an independent County solid waste compliance program September 14, 2021 - County Board of Supervisors passed Resolution to formally notify the IWMA of its intent to withdraw November 15, 2021 – effective date of County withdrawal 11/09/2021 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 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. 5 JPA/MOU Amendments October 13, 2021 - IWMA Board of Directors approved as to form an amendment to the JPA and to the MOU Removes the County and enables the Board of Directors to continue to meet and conduct the necessary business of the IWMA Both documents must be approved by all of the remaining members of the IWMA to become effective 11/09/2021 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 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. 6 Resolution of Intent Proposed Resolution of Intent to Remain in the IWMA Subject to Conditions Other cities adopting similar resolutions Items in City’s Resolution that differ from other cities appear in red text 11/09/2021 7 Resolution of Intent Arroyo Grande’s Proposed Conditions: Revise the JPA, following consultation with the City Manager and City Attorney, to address the following:  Remove the five County Supervisors as board members of the IWMA effective immediately; and Remove the eight-member voting provision stated in Section 8.5; and 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 *also requested by Pismo Beach 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. 11/09/2021 8 Resolution of Intent Arroyo Grande’s Proposed Conditions: Take the following additional actions: Hire permanent Executive Director as soon as practical; and 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. Identify potential cost saving measures IWMA shall implement recommendations to reduce costs Report must be reviewed by the managers of the IWMA’s member agencies before it is finalized and implemented; and 11/09/2021 9 Resolution of Intent Arroyo Grande’s Proposed Conditions: Take the following additional actions (cont.): 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 Rescind IWMA Resolution No. 21-06-02 and coordinate with the member agencies’ managers before adopting any other increases to the IWMA’s fees. 11/09/2021 10 Resolution of Intent Arroyo Grande’s Proposed Conditions: Execute Revised JPA as soon as possible City will continue evaluating the cost-effectiveness of remaining a member of the IWMA as compared to its other options City reserves its right to withdraw from the IWMA in the future 11/09/2021 11 Resolution of Intent 11/09/2021 12 Resolution of Intent 11/09/2021 13 Resolution of Intent 11/09/2021 14 11/09/2021 Recommendation Approve the Second Amendment to the San Luis Obispo County Integrated Waste Management Authority (“IWMA”) Joint Powers Agreement; Approve the First Amendment to the Memorandum of Agreement (MOA) between the member jurisdictions of the IWMA and the authorized districts; and Adopt a Resolution declaring the City’s intent to remain a member of the IWMA so long as certain conditions are met. 15