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6.C. - Page 2 of 57
<br />recommended, and the Member Agencies approved, the issuance of new bonds to refund the 2009 bonds
<br />and raise capital for various new improvements. These bonds consist of $31,860,000 in 2019A refunding
<br />bonds, and $16,915,000 in 2019B "new money' bonds.
<br />The JPA has been amended and restated several times over the years; the current governing JPA
<br />document dated June 19, 2013, is entitled the "Second Amended and Restated Joint Exercise of Powers
<br />Agreement South Bayside Waste Management Authority" ("JPA Agreement").' Pursuant to the JPA
<br />Agreement, Article 15, "Withdrawal from SBWMA", a Member may not withdraw from the SBWMA
<br />unless and until that Member achieves the following:
<br />a. The liquidation in full of its proportion of any and all existing debts,
<br />obligations, and liabilities incurred, earned, or expected to be earned by
<br />the date of withdrawal, including but not limited to the Revenue Bonds,
<br />as determined by the Board.
<br />b. The provision to the SBWMA of a written notice of intent to withdraw
<br />from the SBWMA at least six months prior to the end of the current Rate
<br />Year, specifying the date on which the Member intends to withdraw.
<br />c. The approval of such withdrawal by a 4/5 affirmative vote of Equity
<br />Members.
<br />On June 29, 2020, Atherton formally notified SBWMA of its intent to withdraw from SBWMA effective
<br />December 31, 2020. In response, the SBWMA Board held a special meeting on August 20, 2020, and
<br />determined that to liquidate in full its proportion of any existing debts, obligations, and liabilities incurred,
<br />earned, or expected to be earned by the date of withdrawal (December 31, 2020), Atherton would be
<br />required to pay an estimated amount of $2,203,016. The actual amount is subject to determination on
<br />the date of liquidation, which must occur before December 31, 2020. SBWMA Board's determination of
<br />Atherton's liquidation amount was a final administrative determination and it is not subject to appeal. A
<br />copy of the staff report and Board's resolution from the August 20, 2020 Special Board Meeting is attached
<br />hereto as Attachment B.
<br />At a meeting held on September 16, 2020, the Town Council of Atherton agreed to pay the liquidation
<br />costs determined by the Board, and voted to go forward with the withdrawal. The next step in the process,
<br />as required by the JPA Agreement, is for Atherton to obtain the approval to withdraw from 4/5s (or 10)
<br />of the Member Agencies (which means approval by at least 9 of the remaining Members, as Atherton has
<br />already consented). This action must occur before December 31, 2020. While the Board has
<br />recommended to the Member Agencies that they approve Atherton's request to withdraw, provided they
<br />pay the above referenced costs prior to December 31, 2020, the withdrawal will not be effective unless
<br />and until 9 additional (to Atherton) Member Agencies have approved it.
<br />1 A proposed Third Amended and Restated JPA is currently being circulated for consideration among member
<br />agencies, making a number of clerical and administrative updates to the JPA document; none of the proposed
<br />changes impact Article 15, Withdrawal, of the Agreement.
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<br />City of Redwood City 1017 Middlefield Road, Redwood City, CA. 94063 Tel: 650-780-7000 www.redwoodcity.org
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