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6.C. - Page 22 of 57 Q P , 9 % til.ink waste S�utH .11d was.E ban a9emeAutlwrity A Public Agency Mr. George J. Rodericks, City Manager Town of Atherton 150 Watkins Avenue Atherton, CA 94027 grodericks@ci-atherton.ca.us VIA email and U.S. Postal Service RE: TOWN OF ATHERTON'S NOTICE OF INTENT TO WITHDRAW FROM SBWMA JPA Dear Mr. Rodericks: April 27, 2020 The South Bayside Waste Management Authority (SBWMA or Authority) is in receipt of your letter dated March 18, 2020 advising SBWMA that the Town of Atherton is considering withdrawing from the Authority. The letter states that it serves as Atherton s six month Notice of Intent to Withdraw, which is required under the terms of the Joint Powers Agreement (JPA) govemIng the SBWMA. The letter notes that the end of the rate year Is December 31, 2020; it does not, however, state a speciflo date on which Alherton intends to withdraw, which is also required under the JPA. We assume if Atherton moves forward with withdrawing from the Authority, it wi11 provide the specific notice in a timely manner. Additionally, the letter requests clariflcation of Atherton's obligations for the liquidation of its proportionate share of SBVVMA's liabilities as required by the withdrawal process set forth in the JPA. The original JPA for SBWMA was adopted effective December 9, 1999. The Authority was established by a number of San Mateo County entities to provide a regional approach to the collection and disposition of solid waste, recyclable materials and organic materials. Initially, the Authority issued bonds in 2000 (the "Revenue Bonds" defined in the original JPA) to acquire and reconstruct the Shoreway Environmental Center Facility, to be operated by tate Authority to meet the regulatory requirements for solid waste and recyclables for its member agencies. In 2019, the Authority took action to refund previously issued bonds, thereby saving the Authority money and, at the same time, raising funds for certain capital improvements. The JPA has been amended and restated several times over the years; the current governing JPA document dated June 19, 2013, is entitled the "Second Amended and Restated Joint Exercise of Powers Agreement South Bayside Waste Management Authority" (the JPA) .I The Town of Atherton is one of the anginal founding members of the JPA, and as such is an "Equity Member, Article 15 of the JPA sets totth the process far withdrawing as a Memher of the JPA. It provides: 151 Withdrawal Conditions. 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 A proposed Third Amended and Restated JPA is currently wing circulaled for consideration among member agendes, making a number of clerical and administralive updates to the JPA document; none of the proposed changes impact Adide 15, Wilhdrawal, of the Agreement. 7 Under the SBW MA, JPA membership is divided 1No'equlty members' and 'non -equity members'; there are no non -equity members at this time, nor have there ever baeo. The primary difference between an Equity Member and Non Equity Member is described in Section 8.3 of the JPA: basically, non -equity members are not entitled to vote on any matter before the board, and do not have the r ghts and IiabRies of equity members, particularly under Section 15, Withdrawal or Section Iii, Termination of the JPA. &to Elm Street, Suite 2Gi P: 65o•8t12-;5oa San Carlos, CA 94070 F: e50 -90x3501 Rethinkwaae arg MEMBER AGENCIES: Town oFAtherton • City oFBeimont • City of Burlingame • CTtyof Eam Pala Alta • CIty of Faster City • Town of H111shorOugh City of Menlo Park • City of RWwocW City • City of 5an Carlos • Ctty or San Mateo • County of 5an Mateo • West Bay Sanitary Oistricr 53