Loading...
HomeMy WebLinkAboutStaff Report 3.B 01/25/2016DATE: Qel FROM: Agenda Item #3.B January 25, 2016 Honorable Mayor and Members of the City Council through City Manager Dan St. John, RASCE, Public Works and Utilities Director SUBJECT: Resolution Authorizing the City Manager to Execute a 1 Year Extension to the Term of the Agreement Between the Cities of Sonoma County and Sonoma County for a Joint Powers Agency to Deal with Waste Management Issues, Known as the Sonoma County Waste Management Agency RECOMMENDATION It is recommended that the City Council adopt the Resolution Authorizing the City Manager to Execute a 1 Year Extension to the Term of the Agreement Between the Cities of Sonoma County and Sonoma County for a Joint Powers Agency to Deal with Waste Management Issues, Known as the Sonoma County Waste Management Agency. BACKGROUND In February 1992, the City of Petaluma entered into a 25 -year agreement with the cities and County of Sonoma to form a Joint Powers Agency (JPA) to deal with waste management issues including wood waste, yard waste, household hazardous waste (HHW), and public education. The JPA, called the Sonoma County Waste Management Agency ( SCWMA, the Agency), is comprised of a ten member board of directors with a member and alternate from each of the ten member cities and county. The Agency is managed by an executive director and staff with expertise in solid waste and outreach activities. On January 24, 1996, the JPA Agreement was amended to designate SCWMA as the Regional Agency under the terms of the California Integrated Waste Management Act of 1989 (the Act) in order to create a regional agency for the purpose of implementing, monitoring and reporting programs to meet the goals established by the Act. On January 27, 2014, the City Council approved the second amendment to the JPA agreement, which included an indemnity agreement for the Plastic Shopping Bag Ban program. The second amendment, which allowed the countywide "Bag Ban" program to take place, delegates regulatory and enforcement authority for implementation of City Council policy on regulating single -use carry out bags in the City and enables SCWMA to carry out new "non- core" programs in which member jurisdictions could elect to participate. Currently, the City elects not to participate in, the Agency's composting program due to a more favorable opportunity provided by the Redwood Landfill. Earlier in 2015, Agency staff proposed a third amendment to the JPA that would have extended the term, while leaving other governance issues to be addressed in the future. In March 2015, Agency Board deferred consideration of a third JPA amendment and requested that each member agency respond to a "Waste Management Decision Matrix" questionnaire to clarify the interests of the ten Agency members in extending the JPA, and in other potential changes in governance and staff spending authority matters. The Council addressed these questions and provided its Agency representative direction at its May 4, 2015 City Council meeting. To assist the City Council in this consideration, staff had commissioned a report to validate and expand upon previous Agency efforts to quantify the benefits of JPA membership. The result of the report confirmed the City's benefit in remaining a member of the JPA, even without participation with the Agency's composting program. The report concluded that the City would incur additional costs and likely suffer reduced service levels if it withdrew from the JPA or the Agency was allowed to sunset. Since last year, the Agency has experienced a number of significant changes, including: • Hired a new general counsel, Ethan Walsh, of Best, Best and Krieger LLP. • Executive Director resigned. • Hired an existing staff member to serve as Interim Executive Director. Search for executive director is currently underway. • Lawsuit against Agency's contract compost operation by neighborhood special interest group forced closure of existing composting facility. • Related lawsuit with Agency's Compost Contractor was settled. • Began outhauling of green waste to existing composting facilities located outside the County. • Requested proposal for composting services at a proposed new facility at the Central Landfill from Sonoma County's landfill operator, Republic Corporation, under terms of Master Operating Agreement for landfill site. • Certified EIR for New Composting Facility with Preferred Site Designated as the Central Landfill Site. Permit submittal to North Coast Regional Water Quality Control Board is expected soon. The JPA agreement will expire on February 11, 2017. At this time, no successor agency has yet to be designated to fulfill the mission of the JPA, nor has a JPA extension agreement been approved. A unanimous vote of the JPA members is required to extend the JPA. The purpose of the proposed action is to obtain the City's approval for a one -year extension to the existing JPA agreement to extend the sunset date to February 2018. The other members are considering the same resolution to extend. Needless to say, with the repercussions that have rocked the Agency since last year, considerations of governance issues have been overshadowed by more immediate challenges. However, facing sun setting of the Agency in February 2017 if no action is taken by the members, the Agency board has requested that each member agency approve the attached resolution that provides the necessary extension of the JPA. The proposed resolution provides that a 12 -month extension would be approved to February 11, 2018 if there is no new JPA 2 agreement to replace the existing agreement or no alternative successor agency is designated by July 1, 2016. DISCUSSION While some members of the Agency board feel that it is time to delve back into governance issues that could affect representation onto the Agency board, voting procedures including unanimous voting versus majority rule, and the possibility of a merger with the Regional Climate Protection Agency (RCPA), it is believed that this is not the time for these discussions because: • The Agency is engaged in a major lawsuit related to the CEQA EIR for the new compost site and therefore is not at a stage that would make a merger with another agency attractive to that agency. • The Agency is continuing to pursue a new compost facility at the Central Landfill; however, progress has not yet proceeded to the stage where the cost, the project delivery method, or the selection of a future operator is known. The uncertainty of the project at this stage causes significant confusion during any discussions of governance since at this time it cannot be said exactly who would own and operate the future facility. • It could be argued that the lack of a concerted focus on delivering the new compost facility, while the Board and Agency staff has been distracted by protracted discussions about governance structure and voting rules, has in fact contributed to the loss of composting in the County and the delay getting a new facility built. • The City's Agency board member cannot point to a clause in the existing JPA agreement or any action taken by the Agency that would merit a redrafting of the existing agreement. The agreement has served the City and Agency well for nearly 25 years and it can be argued that it does not need significant revisions to meet the needs into the future. Rather, the agreement only needs to be extended to give the Agency time to resolve the lawsuit and clarify the details of the new compost facility. The City has acknowledged the benefits of belonging to the JPA because it meets the City's needs in a cost effective way in the areas of regional reporting of diversions, and in providing HHW disposal services to City residents as required by AB 939. The JPA also provides superior education and outreach that could not be performed individually by the City for the same price, and provides a regional venue to develop solid waste reduction initiatives. Therefore, it is recommended that the Council approve the resolution and direct its board member to encourage the Agency board to focus its attentions on re- establishing composting operations back in Sonoma County. Only after a clear path to a new compost operation is achieved and the lawsuit settled, should the Agency board consider potential governance changes in the JPA agreement. If the JPA is not extended, the City stands to face added costs to revise and resubmit the regional reporting plan to the State and to provide staff to compile and report diversions in the future. As previously reported to the Council, start-up costs could be $100,000 or more, which reflects the effort involved in extracting Petaluma - specific data from the countywide waste stream planning documents developed by the Agency and previously submitted to CalRecycle, and establishing new Petaluma - specific reporting that would be consistent with requirements for waste stream diversion under CalRecycle rules. In addition, the City would have to find an alternative HHW service delivery that at best would result in a significant reduction of service at the same cost. The City would also assume Education and Outreach functions most likely by including them under the current Franchise Agreement with Petaluma Refuse and Recycle (PR &R). While the franchisee performs some of these services now, it would likely cost the City rate payer more to include additional education and outreach events that are currently performed regionally by the Agency. FINANCIAL IMPACTS The City's cost of participating in the JPA in FY 2014/15 was approximately $178,800, and is expected to decrease to approximately $140,000 in FY 2015/16 due to changes in the way in which green waste surcharges are now charged. These funds are collected in the rates charged by PR &R and provided to the City for payment to the Agency to support HHW, annual reporting, and education and outreach. The proposed action has no fiscal impact on the City as long as all Agency members approve the time extension. If not approved, the impact on the City is estimated to be over $100,000 and will result in a decrease in the level of service that is currently provided by the Agency. ATTACHMENTS 1. Resolution M Attachment 1 RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A 1 YEAR EXTENSION TOTHE TERM OF THE AGREEMENT BETWEEN THE CITIES OF SONOMA COUNTY AND SONOMA COUNTY FOR A JOINT POWERS AGENCY TO DEAL WITH WASTE MANAGEMENT ISSUES WHEREAS, the City of Petaluma (the "City ") is a party to that certain Agreement between the cities of Sonoma County and Sonoma County for a Joint Powers Agency to deal with waste management issues, as amended on January 24, 1996 by the First Amendment to the Agreement, and on March 27, 2014 by the Second Amendment to the Agreement (collectively, the "Agreement "); and WHEREAS, the Agreement created the Sonoma County Waste Management Agency (the "Agency ") as a separate public entity in accordance with the requirements of Government Code section 6500 et seq. (the "Agency "), to provide service to the Sonoma County region on four primary programs; (1) household hazardous waste; (2) wood waste; (3) yard waste that otherwise would go to a landfill; and (4) education about the Agency's programs (collectively, the "Agency Programs "); and WHEREAS, the Agency further serves as a Regional Agency designated by the California Integrated Waste Management Board in compliance with Public Resources Code section 40975 for purposes of implementing, monitoring and reporting programs to meet the goals established by the Integrated Waste Management Act of 1989 on behalf of the member cities and County (a "Regional Agency "); and WHEREAS, the Agreement has a term of twenty -five (25) years, which term expires on February 11, 2017, which term may be extended from year to year by mutual agreement of the member cities and County; and WHEREAS, the expiration of the Agreement would result in the dissolution of the Agency; and WHEREAS, the Board of the Agency is engaged in discussion regarding the future of the Agency and the Agency Programs, including whether to recommend to the member cities and County to enter into a new or amended joint exercise of powers agreement to continue the Agency Programs and its service as a Regional Agency, or to address the Agency Programs in another manner, including transitioning the Agency Programs to one or more other agencies and potentially establishing a new agency to serve as a Regional Agency for the member cities and County; and WHEREAS, the City supports a regional approach to the Agency Programs, but recognizes that the member cities and County may require additional time beyond the expiration of the term of the Agreement to negotiate the terms of a new joint exercise of powers agreement or agree upon an entity or entities to take over responsibility for the current Agency Programs; and WHEREAS, in the event such additional time is needed to determine the future of the Agency, the City is willing to extend the term of the Agreement for one (1) year from the current date of expiration; and WHEREAS, the Agency has indicated that in the event all of the member cities and County have not agreed upon and designated one or more successor agencies to assume responsibility for all of the Agency Programs and serve as a Regional Agency for the member cities and County, or elected to withdraw from the Agency, on or before July 1, 2016, the Agency will require an additional year to either develop a plan for the continuation of the Agency Programs, or efficiently transition the Agency's operations to other agencies and /or the member cities and County. NOW, THEREFORE BE IT RESOLVED, by the City Council of the City of Petaluma that in the event that the City and the other member cities and County have not all agreed upon and designated one or more successor agencies to assume responsibility for the Agency Programs and to serve as a Regional Agency for the member cities and County, or have elected to withdraw from the Agency, on or before July 1, 2016, the City agrees to extend the term of the Agreement by one (1) year from its current expiration date. Upon such extension, the new expiration date for the Agreement shall be February 11, 2018. BE IT FURTHER RESOLVED that the City Manager is hereby authorized and directed to execute and deliver any and all documents necessary to carry out such extension in accordance with this Resolution. rel