HomeMy WebLinkAboutReso - CC - 150-2020DocuSign Envelope ID: E697604C-9B2F-4FCA-82FB-9EOOD1C78A23
RESOLUTION NO. 150-2020
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BURLINGAME APPROVING THE
TOWN OF ATHERTON'S WITHDRAWAL FROM THE SOUTH BAYSIDE WASTE
MANAGEMENT AUTHORITY (SBWMA), PROVIDED ATHERTON SATISFIES ITS
OBLIGATION TO LIQUIDATE ITS PROPORTIONAL SHARE OF DEBT AS DETERMINED BY
THE SBWMA BOARD OF DIRECTORS ON AUGUST 20,2020, AND THIS LIQUIDATION
OCCURS PRIOR TO DECEMBER 31, 2020.
WHEREAS, the SBWMA is a joint powers agency established through a Joint Exercise of
Powers Agreement on December 9, 1999 by 12 San Mateo County entities to provide a regional
approach to the collection and disposition of solid waste, recyclable materials, and organic
materials; and
WHEREAS, the Agreement has been amended and restated several times over the years;
the current governing document, dated June 19, 2013, is entitled the "Second Amended and
Restated Joint Exercise of Powers Agreement" ("JPA"); and
WHEREAS, the SBWMA issued bonds in 2000 to acquire and reconstruct the Shoreway
Environmental Center Facility, to be operated by the Authority to meet the regulatory requirements
for solid waste and recyclables for its member agencies; and
WHEREAS, the original bonds were defeased and new bonds issued in 2009; and in
2019, the SBWMA refunded the 2009 bonds, saving the Authority money and, at the same time,
raising new funds for certain capital improvements (the 2019A and 2019B bonds); and
WHEREAS, the SBWMA is comprised of 12 member agencies, including the Town of
Atherton ("Atherton"), all of which are founding members of the SBWMA, and as such, "Equity
Members" under the JPA; and
WHEREAS, On June 29, 2020, Atherton sent the SBWMA a Notice of Intent to Withdraw
from the SBWMA, specifying December 31, 2020 as the date of withdrawal; and
WHEREAS, Article 15.1 of the JPA provides that a Member may not withdraw from the
SBWMA unless and until that Member achieves the following:
a. The liquidation in full of its proportion of any and all existing debts,
obligations, and liabilities incurred, earned, or expected to be
earned by the date of withdrawal, including but not limited to the
Revenue Bonds, as determined by the Board.
b. The provision to the SBWMA of a written notice of intent to
withdraw from the SBWMA at least six (6) months prior to the end
of the current Rate Year, specifying the date on which the Member
DocuSign Envelope ID: E697604C-9B2F-4FCA-82FB-9EOOD1C78A23
intends to withdraw.
c. The approval of such withdrawal by a 4/5 affirmative vote of Equity
Members; and
WHEREAS, pursuant to Article 15.1.a. of the JPA, the Board of Directors of the SBWMA
("Board") is required to determine the amount necessary for Atherton to achieve "the liquidation
in full of its proportion of any and all existing debts, obligations, and liabilities incurred, earned, or
expected to be earned by the date of withdrawal;" and
WHEREAS, pursuant to Article 15.1.c.of the JPA, four -fifths (10) of the Member Agencies
are then required to approve the withdrawal in order for it to be effective; and
WHEREAS, on August 20, 2020, the SBWMA Board held a properly noticed hearing to
determine Atherton's liquidation obligation, and considered the staff report and all evidence, oral
and documentary, presented to it at the hearing; and
WHEREAS, the SBWMA Board, having reviewed and considered the evidence
presented, and based thereon, determined that in order to satisfy its requirement under Article
15.1.a., Atherton must fully defease its proportionate share of the 2019A and 2019B bonds, which
is 3.24 percent, based on Atherton's share of the SBWMA's overall franchise tonnage in 2019;
and
WHEREAS, the cost to defease Atherton's bond share is estimated to be $2,203,016
($2,103,016 to defease + $100,000 costs), with the actual amount subject to adjustment
depending on market conditions at the time of defeasance; and
WHEREAS, having made this determination, the SBWMA Board directed its staff to work
with SBWMA's financial consultants and Atherton staff to ensure the defeasance of the bonds
occurs prior to December 31, 2020; and
WHEREAS, the SBWMA Board further recommended to its Member Agencies that they
review and approve Atherton's withdrawal from the SBWMA, effective December 31, 2020,
provided that on or before December 31, 2020, Atherton satisfies its obligation to liquidate its
proportionate share of debt, as determined by the Board; and
WHEREAS, pursuant to JPA Section 15.1.c, four -fifths of the Member Agencies, defined
as Equity Members, must, before December 31, 2020, approve Atherton's withdrawal in order for
it to be effective; and
WHEREAS, the City of Burlingame is an Equity Member of the SBWMA empowered by
the JPA to consent to Atherton's withdrawal; and
WHEREAS, approval of Atherton's withdrawal from SBWMA is a governmental
organizational activity and is therefore exempt from California Environmental Quality Act (CEQA)
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review because it is not a project within the meaning of CEQA. CEQA Guideline 15378 defines
"Project" for CEQA purposes; Section 15378 (b) states that Project does NOT include: (5)
Organizational or administrative activities of governments that will not result in direct or indirect
physical changes in the environment."
NOW, THEREFORE BE IT RESOLVED that the City Council, having considered
Atherton's request, now approves Atherton's withdrawal from SBWMA, provided Atherton
satisfies its obligation to liquidate its proportional share of debt as determined by the SBWMA
Board on August 20, 2020, and said liquidation to occur prior to December 31, 2020.
DocuSigned by:
LC�7
Emily Beach, Mayor
I, Meaghan Hassel -Shearer, City clerk of the City of Burlingame do hereby certify that the
foregoing Resolution was introduced at a regular meeting of the City Council on the 16th day of
November, 2020, and was adopted thereafter by the following vote:
AYES: Councilmembers: BEACH, BROWNRIGG, COLSON, O'BRIEN KEIGHRAN, ORTIZ
NOES: Councilmembers: NONE
ABSENT: Councilmembers: NONE DocuSigned by:
L/2&4"e�s=_ ..
Meaghan Hassel -Shearer, City Clerk