PREPARED BY: AMANDA BOOTH DATE OF MEETING: 07/20/2026
SUBJECT:
TITLE
CONSIDER ADOPTING RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN PABLO APPROVING THE FIRST AMENDMENT TO THE FIFTH AMENDMENT AND RESTATEMENT OF THE JOINT EXERCISE OF POWERS AGREEMENT TO CHANGE THE WEST CONTRA COSTA INTEGRATED WASTE MANAGEMENT AUTHORITY FISCAL YEAR TO JANUARY THROUGH DECEMBER COMMENCING JANUARY 1, 2027
CEQA: The proposed action is exempt from environmental review under the California Environmental Quality Act (CEQA) as a funding action, as it is not a project under CEQA nor an activity that may cause a direct or reasonably foreseeable indirect physical environment change pursuant to Public Resources Code Section 21080(a) and 14 California Code of Regulations section 15002(d).
Label
CITY MANAGER RECOMMENDATION
Recommendation
Adopt Resolution
Body
Compliance statements
FY 2025-2027 Council Priority Workplan Compliance Statements:
Enhance Community Resilience Item 202: Identify and Implement Long-Term Environmental Stewardship Goals is a major policy goal contained in the FY 2025-27 City Council Priority Workplan, updated April 7, 2025.
BACKGROUND
The City of San Pablo is a member of the West Contra Costa Integrated Waste Management Authority (WCCIWMA or RecycleMore) Joint Powers Authority, providing solid waste, recycling, and composting related services for the City. The RecycleMore Board is required to adopt a Fiscal Year budget by June 30th as outlined by Section 8.8 of the Joint Exercise of Powers Agreement (JEPA). The proposed budget is typically presented at the May Board meeting to the Board of Directors, prior to consideration for approval at the June Board meeting. However, the rate setting process under the Post-Collection Agreement (PCA) is on a calendar year schedule, making it difficult to assess the rate impact for the following year. This is a result of the rate calculation and approval associated with the PCA and the City’s Collection Service Franchise Agreement with Richmond Sanitary Service becoming available during the October/November/December timeframe, after the Fiscal Year budget is adopted. The rates become effective January 1st of the following year.
RecycleMore Board’s budget is funded by ratepayer fees tied to the volume of solid waste, compost, and recycling collected by its Member Agencies' haulers and delivered to the PCA contractor for processing and disposal. Those fees cover the agency's budget, its Household Hazardous Waste (HHW) Program, the PCA contractor’s expense, and regulatory fees
The RecycleMore Board approves a budget in June, when the primary revenue source (the PCA rates) is not increased until January 1, which can inherently result in a deficit in necessary revenue for the July 1 through December 31 period. Because rates are not adjusted until January 1, the rates funding the budget are aligned for only six months of each fiscal year.
Additionally, rate revenue is variable as it depends on tons delivered to the PCA service provider (i.e., fewer tons result in less revenue). This potential disparity can increase the July to December deficit. For the fiscal year ending on June 30, 2026, the agency experienced a budget deficit of approximately $173,000 as a result of the difference between the adopted budget and projected year-end revenue.
Staff is requesting the City Council authorize the City Manager to execute the amendment to change the WCCIWMA fiscal year from July 1 through June 30, to January 1 through December 31, commencing January 1, 2027. This change will require simple revisions to the JEPA that must be approved by the governing body of each Member Agency in order for the change to become effective. If all of the Member Agencies approve the revision before October 2026, RecycleMore staff will notify its Board of Directors of the change to the fiscal year and present a restated budget for fiscal year 2027 (January 1 - December 31, 2027) that will align the budget decision making with the 2027 rate-setting cycle.
A summary of the key rationale for changing to the agency’s fiscal year includes the following:
1. Enable City staff to present information to the City Council that is necessary to understand the complete rate impact on ratepayers of establishing rates for both collection services and post-collection services during the City’s rate-setting process.
2. Provide the Authority Board the opportunity to understand the estimated rate impact of the Authority’s operating budget during the rate-setting process.
3. Provide the Authority Board the opportunity to understand all components of the Authority’s post-collection rate (PCA expense, HHW Program expense, regulatory fees, and Authority operating budget) when reviewing and considering the budget.
4. Provide Authority staff the opportunity to propose a budget that includes a revenue projection based on the best available information and is tied to the actual rates charged to ratepayers for the full subsequent calendar year.
Any amendments to the JEPA require approval of a Resolution by the Authority Board of Directors followed by a unanimous agreement from the governing body of each Member Agency. The Authority Board of Directors approved Resolution No. 26-12 on June 11, 2026, directing the Executive Director to ask the Member Agencies to consider executing the amendment to change the fiscal year.
City staff recommends the City Council adopt the attached resolution authorizing the City Manager, or his designee, to execute the amendment to the Joint Exercise of Powers Agreement (JEPA) forming the Authority to change its Fiscal Year from July 1 - June 30 to January 1 - December 31, commencing January 1, 2027.
FISCAL IMPACT
There is no fiscal impact associated with the recommendation.
ATTACHMENTS:
Att A. Resolution
Att B. West Contra Costa Integrated Waste Management Authority Resolution No. 26-14 approved on June 11, 2026
Att C. First Amendment to the Fifth Amendment and Restatement Joint Exercise of Powers Agreement