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TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DIRECTOR OF PUBLIC WORKS
DATE: OCTOBER 1, 2002
SUBJECT: LOS ANGELES AREA REGIONAL AGENCY JOINT POWERS AGREEMENT
Staff Coordinator: Lauren Ramezani, Sr. Administrative Analyst
Authorize the Mayor and City Clerk to execute a Joint Powers Agreement with the City of Los Angeles and other interested cities for establishing the Los Angeles Area Integrated Waste Management Authority for AB 939 diversion and disposal reporting purposes.
On May 15, 2002, the California Integrated Waste Management Board (CIWMB) approved the City's 1999/2000 biennial review, with a diversion rate of 31% for 1999 and 47% for 2000. Although the City did not meet the 50% diversion mandate, the CIWMB recognized the City's recycling and waste reduction programs and approved the City's diversion based on "Good Faith Effort". This means that the CIWMB views the City in much the same manner they would have if the City had achieved the goal of 50% and that the City therefore, is not required to prepare a SB 1066, Time Extension Request. However, like all cities we must continue implementing various recycling and waste reduction programs, prepare annual reports and receive approval during future biennial reviews. The City's 2001 annual report is not due yet. However, it is anticipated that the City's 2001 diversion rate would be approximately 47%.
The City of Los Angeles (LA) has submitted a year 2000 Base Year Study to the CIWMB. If approved, the City of LA will have a diversion rate of 60%. In January 2002, the City of LA took initial steps toward the formation of a Los Angeles Area Integrated Waste Management Authority (Regional Agency) for AB 939 diversion and disposal reporting purposes. All the cities in Los Angeles County, including Rancho Palos Verdes, were invited to attend meetings and consider joining the Regional Agency. In Northern California, cities and counties have banded together to form a total of 22 regional agencies. No regional agency currently exists in Southern California.
On June 12, 2002, the City Council authorized staff to begin the process of joining the Regional Agency. The purpose of forming a Regional Agency is to report AB 939 diversion and disposal as one entity rather than by individual jurisdictions. Therefore, instead of 40 cities with 40 different annual reports and diversion rates, there will be one Regional Agency with one annual report and one diversion rate. This simplifies the annual AB 939 reporting process by averaging the diversion among participating jurisdictions. This is helpful for cities such as RPV that have not reached 50%. Through this Regional Agency, the City of LA is inviting other cities to benefit from LA's excess diversion and reach, or exceed 50% when one combined Regional Agency annual report is prepared. At this time it is estimated that the Regional Agency's year 2000 diversion for all the participants will be approximately 53%. There are additional advantages to joining the Agency that are listed below.
The mechanism to form a Regional Agency is a Joint Powers Agreement (JPA). This gives the Regional Agency the permission to put together the information for those jurisdictions, and submit a joint annual report each year. After the JPA is approved by all participating jurisdictions, the agreement will be taken to the CIWMB for approval. A draft agreement was prepared and submitted to interested cities. The City Attorney reviewed the attached final JPA document and has provided some comments and concerns that have been noted in this report.
Currently there are approximately 30 cities considering joining as Charter members of the Regional Agency and intend to sign the JPA. The majority of these cities have a diversion rate below 50%; however, a few cities such as the Cities of Los Angeles and Santa Monica have a diversion rate above 50%. In the future, other cities may also join the Regional Agency, after giving the proper notice of intent to join.
Advantages to Joining a Regional Agency:
Disadvantages to Joining the Regional Agency:
Effect on RPV:
Structure of the Regional Agency:
If the staff recommendation is approved, the City will join the Los Angeles Area Regional Agency. However, the CIWMB will have to approve the formation of the Regional Agency. It is projected that the item will be heard by the CIWMB in early 2003. The City will continue to implement programs in its approved SRRE, however, after joining the Regional Agency, the City's reported annual diversion would be the same as the Regional Agency.
After the JPA is approved by the CIWMB, the City will then be responsible for its share of the Agency's annual administrative cost, which is estimated not to exceed $10,000 a year. At that time staff will also request budget appropriation for the City's share of FY 02-03 annual costs related to the administration of the Regional Agency. Additionally, there will be an annual saving of approximately $3,000 in City consultant costs related to the preparation of annual reports. The Solid Waste Fund is the funding source, which has projected June 30, 2002 ending fund balance of $760,500.