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Home My WebLink AboutCC_2023_04_11_E-1-IWMA Board ReportItem No. 10 April 12, 2023 TO: San Luis Obispo County Integrated Waste Management Authority FROM: Peter Cron, Executive Director RE: Discussion of the status and impacts of the County’s request to initiate discussions with the San Luis Obispo County IWMA and its member agencies in order to rejoin the IWMA. BACKGROUND: On October 15, 2021, the IWMA received a formal notice of the County’s intent to withdraw from the IWMA JPA, effective November 15, 2021. On March 23, 2023, the IWMA received a formal notice of the County’s intent to rejoin the IWMA JPA, pending further discussion between the agencies (Attachment A). When the County left the JPA, a Memorandum of Understanding was entered into between the IWMA and County for certain IWMA services. The MOU permitted ongoing IWMA service to the residents of the unincorporated county area. Those services include: •Household and business hazardous waste collection and management. •Universal waste collection. •Electronic waste collection. •Curbside used motor oil collection and filter disposal. •School education and outreach for the 2021-2022 school year. •Retail Take-Back of batteries, fluorescent lighting, paint, mercury thermostats, sharps and unwanted medication. The County would assume the roles and responsibilities of reporting to the State of California on its progress in meeting CalRecycle solid waste and recycling requirements. Those requirements include: •Capacity Planning. •Electronic Annual Reporting. •Non-Disposal Facility Element. •Siting Element. •SB 1383 requirements. •Integrated Waste Management Plan as defined in the Source Reduction and Recycling Element. Page | 165 These efforts were initially funded by the County through monies shifted from the general fund to a new solid waste division. Once the solid waste division was established, a fee study was conducted to determine the real cost of maintaining the program (Attachment B). At the conclusion of the fee study, it was determined that a rate of 8.1% was needed to fund the solid waste division at the County meaning a fee of 8.1% would be assessed on the solid waste collection rates of the unincorporated County areas. At the March 21, 2023, Board of Supervisors meeting the Board was presented two recommendations: a) adopt the 8.1% fee or b) direct staff to initiate discussion on the prospect of the County rejoining the IWMA. The Board of Supervisors chose Option B and directed County Public Works to initiate these discussions. On March 27, 2023 IWMA Executive Committee directed staff to explore the potential impacts of the County returning to the IWMA. The unincorporated county represents approximately 18.5% of the total population and is comprised of rural areas covering a large geographic area of San Luis Obispo County. The unincorporated county area of San Luis Obispo has approximately 14,000 residential solid waste customers and approximately 2,000 commercial solid waste customers. Much of the area served by the San Luis Obispo County is rural and does not require mandatory solid waste services. These areas are covered by a low population waiver issued by CalRecycle that exempts them from many of the reporting requirements of SB 1383. Page | 166 However, these areas are still subject to the rules of AB 939, AB 341 and AB 1826 and as such would require IWMA efforts for compliance. The rejoining of the County to the IWMA may yield the following benefits: •More efficient reporting and record keeping for compliance with CalRecycle requirements. •Reduced record keeping and staff time in managing MOUs with the County for the following services: o Household Hazardous Waste Services. o Retail Take-Back. o Electronic Waste Collection. o Curbside Used Motor Oil. B.Continuity in messaging through public outreach and education. C.Potential savings to the rate payers through a scale of economics in providing services. The rejoining of the County to the IWMA may yield the following challenges: •Configuration and representation of the IWMA Board. •Assurances of stability of membership. FISCAL IMPACT: If your Board were to agree to the County returning as a member of the IWMA, fiscal impacts would be realized by IWMA once staff assumes the following responsibilities from County staff: •Capacity Planning. (Edible Food, Organics Processing) •Electronic Annual Reporting for the County Areas. •Management of Non-Disposal Facility Element. •Management of the Siting Element. •Compliance with SB 1383 requirements in unincorporated areas. •Maintenance of the Integrated Waste Management Plan as defined in the Source Reduction and Recycling Element. Staff has estimated that an additional 1.5 FTE may be necessary to accomplish the task work while continuing to provide services to current member jurisdictions. While there are some savings to the IWMA and its member jurisdictions in a scale of economics, there are some fiscal impacts that the agency would need to address. Anticipated changes in expenses and revenues are listed below. Additional Expenses Page | 167 •Expenses for school education and outreach. •Expenses for public education and outreach. •Labor expenses for compliance programs (1.5 FTE). •Additional administration. Revenue •Increase in revenue from Solid Waste Management Fee (4.4% of collection bill1). •Increase in revenue from Landfill Tipping Fee Surcharge ($3 per ton from unincorporated area sources). •Increase in revenue from Block Grant Funding. •Decrease in revenue from billing to outside agencies. Based on the information provided by the MSW Consultants rate study funded by the County, the fiscal impact of the County returning would generate approximately $662,000 in additional revenue and an additional $470,000 in expenses to the IWMA. These projections take into account a proposed reduction in the IWMA Solid Waste Management Fee from the current 5.4% to the proposed 4.4% for the Fiscal Year 2023/2024. RECOMMENDATION: Staff recommends that your Board discuss the request from the County to return to the IWMA and, if accepted, appoint a committee from the Board to work with IWMA staff in conducting discussions and setting conditions for the County’s potential return to the IWMA. 1 IWMA Solid Waste Management Fee is currently 5.4% but is expected to decrease to 4.4% in FY 23/24. 0 100000 200000 300000 400000 500000 600000 700000 Projected Additional Revenue from the County Areas Projected Additional Expense form the County Areas Projected Fiscal Impact of County Return Page | 168 ATTACHMENTS: A.Letter of Intent of County Rejoining IWMA 2023-03-23 B.County MSW Report 2023-03-21 Page | 169 Page | 170 Page | 171 Page | 172 Page | 173 Page | 174 Page | 175 Page | 176 1 Lara Christensen From:Lara Christensen Sent:Monday, April 10, 2023 4:26 PM To:City Council Cc:Rachelle Rickard; City Clerk Subject:Item #E-1 - IWMA Board Report Attachments:E-1_IWMA Board Report.pdf Good afternoon Council, The April 12, 2023, IWMA Board Agenda Packet is available online through the IWMA’s website. The Board Report that corresponds with Item E-1 on tomorrow night’s agenda has been made available for your and the public’s review, at the following link: http://records.atascadero.org/WebLink/ElectronicFile.aspx?docid=116658&dbid=0 I have also attached the report here for your convenience. Warm regards, Lara Christensen She/Her Deputy City Manager | City Clerk City of Atascadero | City Manager’s Office 6500 Palma Avenue | Atascadero, CA 93422 P: 805.470.3400 | F: 805.470.3455 www.atascadero.org