Agenda

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C.158

To:	Board of Supervisors
From:	John Kopchik, Director, Conservation & Development Department
Date:	June 11, 2019

Contra

Costa

County

Subject:

Resolution and Indemnification Agreement for Disbursement of West Contra Costa Integrated Waste Management Authority Reserve Funds to the County

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 06/11/2019

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Diane Burgis, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Justin Sullivan (925) 674-7812

I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED: June 11, 2019
David Twa,

BY:	, Deputy

RECOMMENDATION(S):

1. ADOPT Resolution No. 2019/160 concerning the disbursement of reserve funds to the County in the amount of $45,302.62 by the West Contra Costa Integrated Waste Management Authority (Authority) to be used to further the purposes of the Authority.


2. APPROVE and AUTHORIZE the Conservation and Development Director to execute an Indemnification Agreement by and between the County and the Authority regarding the County's use of reserve funding to be disbursed to the County.

RECOMMENDATION(S): (CONT'D)

3. DIRECT staff to return and present a proposed reserve funding allocation plan, identifying recommended allowable uses which shall include but not necessarily be limited to subsidizing programs/services that directly aid in the prevention or abatement of illegal dumping within the areas served by Richmond Sanitary Service (RSS) under the County/RSS Franchise, subsidizing on-call services to customers which are not already included in approved rates, and offsetting potential future rate increases for customers in said Franchise area.

FISCAL IMPACT:

There will be no impact to the General Fund. Expenditures will be subject to future authorization by the Board following consideration of a proposed funding allocation plan delineating the recommended allowable uses.

BACKGROUND:

The West Contra Costa Integrated Waste Management Authority (Authority) is a joint powers agency created on April 2, 1991 by the cities of El Cerrito, Hercules, Pinole, Richmond and San Pablo (Member Agencies). Unlike the cities, the County is not a Member Agency and instead serves as an ex-officio non-voting member to the Authority.

The Authority is responsible for regulating post-collection processing services (disposal, recyclables processing, composting and management of household hazardous waste) for the waste stream governed under the collection franchise agreements administered by the five Member Agencies as well as the waste stream governed by the County’s collection franchise agreement with Richmond Sanitary Service (RSS). The Authority also implements a variety of waste diversion programs targeting the waste stream generated within the above-mentioned West County franchise areas.

The Authority participated in the public-private partnership responsible for arranging bond financing for the development and operation of the Integrated Resource Recovery Facility (IRRF) located on
Pittsburg Avenue in North Richmond. In July 1993, the County Board of Supervisors approved a Land Use Permit allowing the development and operation of the IRRF. In May 1993, the County and Authority entered into an agreement (County/Authority Contract) to provide for, among other things, joint regulation of the IRRF. This agreement also established the County as a non-voting member of the Authority.

The Authority (also known as RecycleMore) separately contracts with Republic Services, Inc. (Republic) for post-collection services including recyclables processing, composting, operation of the household hazardous waste facility, and the transfer, transportation and disposal of solid waste. In anticipation of the bonds being paid off concurrent with the expiration of the IRRF Service Agreement at the end of 2013, a new agreement was established between the Authority and Republic to govern the full range of post-collection services to be provided until the end of the term of the existing RSS collection Franchises. During the term of the IRRF Service Agreement, the Authority accumulated reserve funds totaling $6.65 million. These funds came from three different revenue streams:

1) Authority's share of revenues from the sale of recyclables generated by communities outside of the Authority territory (Out-Of-Area Recycling Revenue and Rate Reserves - OOA),
2) Authority's share of revenues from the sale of recyclables generated by Member Agencies with collection agreements with Republic Services (In-Area Recycling Revenue and Rate Reserves - RRRR), and
3) remaining amount from the balancing account with Republic Services (Performance Evaluation Revenue Adjustment Mechanism - PERAM).

On November 8, 2018, a majority of the Authority Board approved Resolution 18-05B (Exhibit A) authorizing a disbursement of $500,000 from the OOA, RRRR, and PERAM reserve funds to Member Agencies and the County. The allocation amounts were determined using a tonnage based methodology consistent with the prior reserve disbursement allocation. The County’s share of the disbursement authorized by Resolution 18-05B is $45,302.62.

County staff recommends that the County request disbursement of its share of the reserves. Under the terms of Resolution 18-05B, the disbursement may only be used to further the purposes of the Authority (i.e. uses directly related to solid waste, recycling, wastes reduction or compliance with the Integrated Waste Management Act). If this recommendation is approved, staff plans to return to the Board to present a recommended reserve funding allocation plan, which is expected to include subsidizing programs/services that directly aid in the prevention or abatement of illegal dumping within the areas served under the County/RSS Franchise, subsidizing on-call services that are not already included in approved rates, and offsetting potential future rate increases for County/RSS Franchise area customers.

CONSEQUENCE OF NEGATIVE ACTION:

The County would not receive its ratepayers prorated share of excess West Contra Costa Integrated Waste Management Authority reserve funding totaling $45,302.62.