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6.C. - Page 51 of 57 <br />201 !North Civic Drive, Suite 230 <br />Walnut Creek, California 94596 <br />Telephone: 925/977-6950 <br />Fax: 925/977-6955 <br />www. hf h - co n su lta nts. co m <br />MEMORANDUM <br />Managing Tomorrow's Resources Today <br />Robert D. Hilton, Emeritus <br />John W. Farnkopf, PE <br />Laith B. Ezzet, CMC <br />Richard J. Simonson, CMC <br />Marva M. Sheehan, CPA <br />Robert C. Hilton, CMC <br />Date: August 11, 2020 <br />To: Joe LaMariana — Rethink Waste <br />From: Marva Sheehan and Colleen Costine — HF&H Consultants, LLC <br />Copy to: John Mangini- Rethink Waste <br />Subject: Review of the Town of Atherton's Exit Obligation as of December 31, 2020 <br />At the request of the South Bayside Waste Management Authority (SBWMA) HF&H Consultants, LLC <br />(HF&H) has reviewed financial information related to the potential withdrawal of the Town of Atherton <br />(Town) from the Joint Powers Authority (JPA). <br />BACKGROUND <br />Request for Withdrawal from the JRA <br />The Town of Atherton has notified the SBWMA of its intent to withdraw from the JPA as of December <br />31, 2020, the end of the current agreement between Recology San Mateo County (Recology) and the <br />Town. According to the Second Amended and Restated Joint Exercise of Powers Agreement dated June <br />19, 2013 (Agreement) between the Member Agencies, including the Town, there are specific conditions <br />that must be met. Article 15 lists the following conditions: <br />15.1 Withdrawal Conditions. A Member may not withdraw from the SBWMA unless and until <br />that Member achieves the following: <br />a. The liquidation in full of its proportion of any and all existing debts obligations, and <br />liabilities incurred, earned, or expected to be earned by the date of withdrawal, <br />including but not limited to the Revenue Bonds, as determined by the Board. <br />b. The provision to the SBWMA of a written notice of intent to withdraw from the <br />SBWMA at least six (6) months prior to the end of the current Rate Year, specifying the <br />date on which the Member intends to withdraw. <br />c. The approval of such withdrawal by a 4/5 affirmative vote of Equity Members <br />SBWMA engaged KNN Public Finance, LLC (KN N) to determine the debt obligations related to the Revenue <br />Bonds attributable to the Town. Additionally, HF&H was engaged to determine if there were other <br />SBWMA BOD PACKET 08/20/2020 <br />AGENDA ITEM: 5A ATTACHMENT 5 - pl <br />82 <br />