2300 County Center Drive, Suite B 100, Santa Rosa, California 95403 Phone: 707.565.3579 Visit our website at www.zerowastesonoma.gov Agenda Item #: 7
Staff Contact: Walsh/Lukacs
Agenda Date: 8/15/2024
Approved By: LL
ITEM: Consideration of Proposed First Amendment to Amended and Restated Joint Exercise of Powers Agreement
I. RECOMMENDED ACTION / ALTERNATIVES TO RECOMMENDATION
Tha
t the Board direct Agency staff to request that the governing boards of the member agencies of the Sonoma County Waste Management Agency approve the First Amendment to the Amended and Restated Joint Exercise of Powers Agreement for the Sonoma County Waste Management Agency.
II. BACKGROUND
On M
arch 1, 2017, the cities located in Sonoma County and the County of Sonoma entered into an Amended and Restated Joint Exercise of Powers Agreement for the Sonoma County Waste Management Agency (the “JPA Agreement”). The JPA Agreement governs the operations of the Sonoma County Waste Management Agency, also known as Zero Waste Sonoma. The JPA Agreement was unanimously approved by the governing boards of the member agencies, and any amendments to the JPA Agreement must similarly be amended by unanimous approval of the governing boards of the member agencies.
III. DISCUSSION
Rec
ently, the Agency acquired property located at 5885 Pruitt Avenue in Windsor, and hopes to develop a household hazardous waste collection facility and potentially offices for staff and administrative functions (“HHW Facility”) at that location. The Agency would need to secure financing to develop an HHW Facility, and Agency staff has been evaluating potential financing sources for such a project. As part of this process, Agency staff has requested that the County of Sonoma (the “County”) consider providing the Agency with a line of credit to help fund the cost of development of the HHW Facility. County Public Infrastructure staff has expressed a willingness to discuss this request with the Board of Supervisors, in light of the regional benefits of development of the contemplated HHW Facility in the northern part of the County.
The State Joint Exercise of Powers Act provides that member agencies of a joint powers authority (such as the County, in this instance), are allowed to make “advances” to a JPA in furtherance of the purposes set forth in the joint powers agreement, with the advances repaid according to the terms of the joint powers agreement. (Gov’t Code section 6504.) While the JPA Agreement does allow generally that the Agency may incur debts, liabilities and obligations (See JPA Agreement, Section 3(b)(vi)), it does not expressly provide that the member agencies may make loans or advances to the Agency, as allowed by Gov’t Code section 6504. In order to make clear that the Agency is authorized to borrow money from the County for the development of the HHW Facility, and that the County is authorized to make the contemplated loan to the Agency, Agency staff has prepared a proposed First Amendment to the JPA Agreement ATTACHMENT 1
ZERO
WASTE
SONOMA
2300 County Center Drive, Suite B 100, Santa Rosa, California 95403 Phone: 707.565.3579 Visit our website at www.zerowastesonoma.gov to expressly authorize contributions, payments, or advances from the member agencies to the Agency, with any advances to be repaid pursuant to terms set forth in a written agreement between the Agency and the member agency making such an advance. If approved, this First Amendment would expressly allow for the contemplated line of credit to be made from the County to the Agency.
In order to take effect, the proposed First Amendment must be unanimously approved by the governing boards of the member agencies. Agency staff recommends that the Agency Board direct staff to reach out to appropriate staff for each member agency, and request that the proposed amendment be placed on the agenda for consideration by the governing bodies of each member agency.
IV. FUNDING IMPACT
The proposed amendment will not have any funding impact to the Agency. In the event that the amendment is approved by all member agencies the Agency and County are able to agree to terms of a potential line of credit, the proposed agreement will come to the Board at a later date for its consideration.
V. ATTACHMENTS
First Amendment to JPA Agreement