[00:00:01]
TUESDAY, SEPTEMBER 1ST, 2026, AND I'M GONNA CALL THE MEETING TO ORDER THE SOUTHEAST RESOURCE RECOVERY FACILITY CALLED ER.CAN YOU CALL THE ROLE PLEASE? UH, COUNCIL MEMBER CINDY ALLEN.
PRESENT COUNCIL MEMBER TU PRESENT.
COUNCIL MEMBER OR MAYOR? JEFF WOOD HERE.
ALRIGHT, WELL FIRST OF ALL, THANK YOU ALL FOR BEING HERE TODAY.
AND, UH, WE'RE GONNA, THIS IS NOT GONNA BE A VERY LONG MEETING, SO WE'LL GET YOU OUT PRETTY QUICKLY.
SO WE'RE GONNA GO TO THE REGULAR AGENDA ITEM, ONE OF THE RECOMMENDATION TO APPROVE THE MINUTES FOR THE SOUTHEAST RESOURCE RECOVERY FACILITY SERVED MEETING OF MARCH 19TH.
CAN I GET A MOTION AND SECOND MOVE APPROVAL? SECOND.
ANY PUBLIC COMMENT? PAUL, ARE WE GONNA SHARE WITH 'EM THE STATUS OF THE TENTATIVE AGREEMENT THAT WE HAVE BETWEEN THE TWO PARTIES OR ANYTHING? IS THAT UNDER THE MINUTES? NO, IT'S NOT UNDER THE UNDER.
THAT'S NOT UNDER THE MINUTES, BUT, OKAY.
IS THAT, IS THAT ITEM TWO? YEAH.
WELL, WHEN WE GET THERE, WE'LL, WE'LL HANDLE THAT, BUT RIGHT NOW WE'RE DOING THE MINUTES, SO I HAVE A MOTION IN A SECOND.
ALL THOSE APPROVED OR RAISE YOUR HAND.
ITEM NUMBER TWO, WHICH IS I THINK IS WHAT YOU'RE GONNA, UH, REFER TO AS A RECOMMENDATION.
AUTHORIZED GENERAL MANAGER DESIGNEE TO EXECUTE ALL DOCUMENTS NECESSARY TO ENTER INTO A CONTRACT AT SILVER OAK CONTRACTORS INC.
OF CHINO HILLS FOR THE DEMOLITION OFER AND THE AMOUNT OF $4,977,800.
AND TO AUTHORIZE A 15% CONTINGENCY IN THE AMOUNT OF $746,670 FOR A TOTAL CONTRACT AMOUNT NOT TO EXCEED $5,724,470, UM, WITH THE RESERVATION OF ALL RIGHTS BY THE CITY OF LONG BEACH SANITATION DISTRICT.
CAN I GET A MOTION AND SECOND, SO MOVE SECOND.
UM, IS THERE A STAFF PRESENTATION? WELL, I DON'T HAVE A STAFF.
I WAS JUST WONDERING, BOB, IF YOU WERE GONNA SHARE ANYTHING REGARDING THE FINANCES OR KIND OF THE INTENT OF SETTLEMENT BETWEEN THE TWO PARTIES HERE? UH, WE, WE COULD DO THAT, RIGHT, ADAM? YEAH, I, I THINK WE COULD SHARE THAT WE HAVE A TENTATIVE, UH, SETTLEMENT AGREEMENT TO, UH, COVER THE, UH, OVERAGES AND IN DISPUTE, AND THE PARTIES ARE MOVING FORWARD WITH THAT, UH, UH, TENTATIVE DEAL.
AND WE THANK THE SANITATION DISTRICT WITH, UH, WORKING WITH US TOWARDS THE AMICABLE, UH, RESOLUTION.
UM, AND YOU MAY NEED TO GIVE SOME BACKGROUND.
I'M NOT SURE THAT THE BOARD SURE.
YEAH, I, I'LL GIVE YOU SOME BACKGROUND ON THIS.
SO THE SURF FUND BALANCE, UH, STOPPED GENERATING REVENUE PROP 20 18 20 19, BUT WE HAD A A A A SURPLUS IN THERE.
WE'RE NOW AT THE POINT AFTER DECOMMISSIONING COSTS WHERE THERE'S A POSSIBILITY THAT WE WILL HAVE A SHORTAGE OF FUNDS TO PAY FOR NOT ONLY THE, THE DEMOLITION, BUT SOME OTHER COSTS ASSOCIATED WITH IT.
SO WE REACHED OUT TO THE SANITATION DISTRICT, EXPLAINED THE CURRENT FISCAL SITUATION, UH, FOR THE SURF FUND BALANCE, UH, AND WE REACHED A MUTUAL AGREEMENT ON ANY SHORTAGE OF, OF FUNDS THAT WOULD BE NECESSARY.
THEY HAD AN OFFER THAT THEY PROPOSED TO US THAT, THAT WE ACCEPTED.
UH, AND THE CITY IS IN A POSITION TO ALSO HAVE THE FUNDS AVAILABLE TO COVER THE SURF, UH, FUND HAS, OR THE CITY SURF OPERATIONS HAS MONIES AVAILABLE TO COVER THEIR, THEIR PORTION OF THAT AS WELL.
IN ALL, IN ESSENCE, WE HAVE ENOUGH MONEY TO COVER THIS CONTRACT COST OF 5.7 COMMITTED BY BOTH PARTIES.
UM, ANY, ANY QUESTIONS? OKAY, GO AHEAD.
UM, YOU WOULD, UM, THANK YOU, MADAM CHAIR.
IT'S MY, UH, I UNDERSTAND THERE'S THIS, THERE'S AN AGREEMENT AND I, IS THAT GONNA BE, UM, SPECIFICALLY STATED IN HERE? BECAUSE I WANNA MAKE SURE THAT THE DISTRICT, WHICH OF COURSE I'M REPRESENTING, I BELIEVE IT'S OF $1 MILLION THAT THE DISTRICT, BUT IT, DOES IT SAY THAT IN HERE THAT THE DISTRICT'S PAYING 1 MILLION, I GUESS THE CITY'S PAYING THE OTHER 4 MILLION.
THIS IS JUST AUTHORIZING MYSELF TO EXECUTE THE CONTRACT WITH SILVERADO.
AND THIS HAS NOTHING TO DO WITH FUNDING OR ANYTHING.
IT, I, I, WE WOULD REPRESENT THE SILVERADO.
I BELIEVE THAT WE WOULD HAVE THE MONIES TO PAY FOR THIS CONTRACT AMOUNT.
SO THERE WOULD BE NO SHORT SHORTAGE OF FUNDS TO PAY SILVERADO.
UH, IT, THE INITIAL BID IS 4.97.
THERE'S A 750 THOU, ROUGHLY SEVEN 50,000 CONTINGENCY.
BUT WE DO HAVE THE FUNDS AND THE AUTHORIZATION OF SIGNING THAT CONTRACT, WE WOULD HAVE PRETTY MUCH GUARANTEE THEM THAT WE HAVE THE FUNDS AVAILABLE TO PAY FOR THAT CONTRACT.
WELL, MEMBER WOOD, I THINK MAYBE THE ANSWER YOU'RE LOOKING FOR, THAT THE TERMS OF THE SETTLEMENT ARRANGEMENT ARE GONNA GO, THAT WON'T BE FINAL UNTIL THE CITY OF LONG BEACH CITY COUNCIL APPROVES IT AND ALSO THE LA COUNTY SANITATION BOARD APPROVES IT.
THAT'S WHERE THOSE TERMS WILL GO.
SO WHAT IF THIS GETS APPROVED AND THE CITY SAYS WE'RE NOT GONNA SET, WE'RE NOT GONNA ACCEPT PAYING OVER 1 MILLION IN THE DISTRICT SAYS THE SANITATION DISTRICT MEETS AND SAYS, WAIT AS OUR UNDERSTANDING, WE'RE ONLY GONNA PAY A MILLION.
SO WOULD THAT VOID THIS OUT OR IT WOULDN'T VOID IT? THAT'S WHERE THE RESERVATION OF RIGHTS LANGUAGE COMES IN TO PROTECT BOTH PARTIES.
[00:05:01]
SO THE, THE, THE BOARDER, THIS JOINT POWERS AUTHORITY IS GONNA BE OBLIGATED UNDER THE CONTRACT THAT EXECUTED EXECUTES, ASSUMING THAT WE GET THERE WITH SILVERADO CONTRACTORS, IF THE TWO PARTIES CAN'T COME TO SOME SORT OF AGREEMENT AND, AND WE THINK THAT THEY WILL, BUT IF FOR SOME REASON THE INC NEVER DRIES ON THAT AGREEMENT, THE PARTIES WILL HAVE TO FIGURE OUT HOW TO FUND THE CONTRACT ON THEIR OWN IN THE FUTURE.BUT THIS JOINT POWERS AUTHORITY WILL BE OBLIGATED TO PAY SILVERADO.
ASSUMING SILVERADO IS, IS COMPLIANT WITH THEIR OBLIGATIONS UNDER THE CONTRACT.
AND THERE'S ENOUGH MONEY TO DO THAT.
IF I HEARD BOB RIGHT, CURRENTLY IN THE SURF FUND, BUT WHERE THE SHORTFALL IS LIKELY TO HAPPEN IS FOR OTHER ANCILLARY TYPE EXPENSES, UH, ASSOCIATED WITH THE WIND DOWN AND THE DISSOLUTION OF THE JPA.
SO DOES THAT ANSWER YOUR QUESTION? WELL, IT KIND OF DOES.
I JUST, JUST SEEMS WE'RE EXECUTING SOMETHING AND TWO GROUPS HAVE NOT FORMALIZED THE, THE FINANCIAL, WHICH SEEMS LIKE WE'RE PUTTING THE CARBON FOR THE HORSE A LITTLE BIT.
UM, YOU'RE NOT WRONG, BUT I THINK TIMING IS KEY TO GET THIS CONTRACT EXECUTED AS SOON AS POSSIBLE.
SILVERADO HAS ALREADY VERBALLY EXTENDED THEIR BID AND THEIR PRICE.
THEY'RE IN A HOLD BEYOND THE 90 DAYS FROM WHEN WE OPENED THEIR BIDS.
I THINK IT WOULD BE BAD FOR BOTH PARTIES IF WE DON'T GET THE DEMOLITION OPERATIONS UNDERWAY AS SOON AS POSSIBLE.
AND, SORRY, PART TWO NO PROBLEM.
AND IS IT, ONCE IT'S DEMOLISHED AND THIS JJPA WILL, WILL DISSOLVE, I KNOW WE'VE BEEN TALKING ABOUT DISSOLVING THIS FOR, UM, THE YEARS I'VE BEEN ON THE BOARD
I'M ACTUALLY REPRESENTING THE DISTRICT.
WE DON'T, WE DON'T SEND, OUR CITY DOESN'T USE THIS.
SO IS THAT THE KEY IS ONCE IT'S DEMOLISHED, WE'RE DONE? THAT'S CORRECT.
AND THE, THERE'S LANGUAGE IN OUR SETTLEMENT THAT WE'RE WORKING WITH THE SAND DISTRICT ON THAT, THAT INCLUDES THAT VERY LANGUAGE TO TERMINATE THE JPA UPON COMPLETION OF THE DEMOLITION OPERATIONS.
I JUST WANNA MAKE SURE THE DISTRICT IS OKAY WITH, UH, YEAH, I MEAN WE HAVE A, A TENTATIVE SETTLEMENT AGREEMENT BETWEEN THE TWO PARTIES.
I MEAN, FOR DISCLOSURE, RIGHT? AND WE'RE TALKING ABOUT THE FINANCES OF THE, THE OPERATION.
MAYBE WE SHOULD KIND OF GIVE THAT HEADS UP TO THE DIRECTIONS IF THEY'RE INTERESTED IN THIS.
BOB, WE TALKED ABOUT WHERE I THINK THAT THE BALANCE CURRENTLY IS IN THE $4 MILLION RANGE.
AND THEN THE, THE CONTRACT AMOUNT IS WHAT I THINK 4.9, 4.98, ALMOST FIVE 5.75.
WITH THE CONTINGENCY FOR DEMOLITION.
SO WHAT WE HAD TALKED BETWEEN THE TWO PARTIES IS RECOGNIZING THAT THERE IS GOING TO BE POTENTIALLY, WELL, THERE IS GOING TO BE A, A, A DIFFERENCE BETWEEN WHAT'S CURRENTLY IN THE BALANCE AND WHAT, UH, IS GONNA BE OWED BY THE AUTHORITY.
AND SO THERE'S GONNA BE A, A TENTATIVE SETTLEMENT BETWEEN THE TWO PARTIES WHERE THE SANITATION DISTRICTS HAS ACKNOWLEDGED THAT, YOU KNOW, WE'RE GONNA GO TO A NOT TO EXCEED MILLION DOLLARS COST.
AND THEN, YOU KNOW, OBVIOUSLY THE OTHER PARTY WOULD THEN BE RESPONSIBLE FOR THE, ANY OTHER AMOUNT OF ABOVE AND BEYOND WHAT IS IN THE CURRENT BALANCE VERSUS WHAT ARE THE TOTAL EXPENSES.
HONOR BOTH ASH AND TUCK YOUR NEXT.
UM, JUST 'CAUSE I, I DON'T GET TO COME TO THE MEETINGS VERY OFTEN.
I JUST WANTED TO MAKE SURE I UNDERSTOOD.
UM, NAMES AND ROLES OF THE TWO PEOPLE WHO RE WHO MOST RECENTLY SPOKE, WOULD YOU KINDLY SHARE? YEAH, SURE.
I'M THE DEPARTMENT HEAD FOR SOLID WASTES FOR LA COUNTY SANITATION DISTRICTS.
I KNEW WE MET RICH ANTHONY AND I'M THE OUTSIDE COUNCIL FOR THE AUTHORITY.
MY QUESTION WAS GOING TO BE RELATED TO THE ORDER OF MAGNITUDE THAT WE WOULD BE LOOKING AT IN TERMS OF THE DELTA BETWEEN THE CONTRACT AND WHAT IS AVAILABLE IN THE FUND THROUGH THE COURSE OF THE CONVERSATION, I GATHER WHAT THAT MIGHT BE APPROXIMATELY MAYBE 1.7 OR SO MILLION DOLLARS THAT, UM, IT MIGHT REPRESENT THE DELTA.
UM, UH, I DON'T KNOW BOB OR JAY MAYBE COULD SPEAK BETTER TO THAT.
IF, IF WE'RE VERY GOOD, UH, WE SHOULD BE ABLE TO DO IT FOR LESS THAN WE ANTICIPATE.
THERE'S A $700,000 CONTINGENCY HERE CONTINGENCY.
WE ALSO HAVE SOME, SOME FUNDS ALLOCATED FOR, UH, TRC TO OVERSEE THE DEMOLITION, UH, OPERATIONS THEMSELVES.
WE'VE GOT A, A LARGER NUMBER IN THERE PROBABLY THAN WHAT'S GONNA, BUT IN THE END, WE WILL DO A TRUE UP OF THE COUNTY, BOTH WITH OURSELVES AND THE SAND DISTRICT.
WE COULD POTENTIALLY DO IT TO WHERE, UH, NEITHER PARTY, UH, HAS TO PAY UP ANYTHING MORE.
THEY MAY EVEN GET WELL LESS, THAT'S WHY THEY HAVE A NOT TO EXCEED NUMBER IN THERE.
IT'S GONNA COST X AMOUNT OF DOLLARS TO DO THE DEMOLITION AND GET IT TO THE POINT THE PARTIES WILL GET TOGETHER ONCE THAT'S COMPLETED AND DO THE TRUE UP OF ACCOUNTING.
SO, UH, BUT WE, WE ARE AUTHORIZED TO GO UP TO THE, THE LARGER NUMBER.
WE HAVE A $3.4 MILLION PROJECTED SHORTFALL, BUT
[00:10:01]
THAT HAS THE CONTINGENCY IN THERE AND IT HAS SOME OTHER COSTS FOR TRC IN THERE THAT COULD BOTH BE, UH, SIGNIFICANTLY LESS THAN WE HAVE IN BUILT INTO THAT NUMBER.SO IF WE ENDED UP WITH A, A, A SMALLER, UH, THE SANDO HAS COMMITTED TO PAY UP TO A MILLION, THE CITY'S SHARE, IT'S A 38%, 38.2%, AND A 68 OR 67.5% SPLIT.
UH, WE HAVE A SUFFICIENT FUNDS THAT COVER OUR, OUR PORTION OF THE SHORTFALL.
SO, AND, AND IN A ROUNDABOUT WAY, WE ARE WHOLE WITH THE COSTS THAT ARE SHOWN FOR THE DEMOLITION FOR THIS PROJECT.
THANK YOU FOR SHARING THAT NUMBER AND CLARIFYING THAT.
I APPRECIATE THAT IN THE WORST CASE SCENARIO.
AND, UM, THANK YOU AS WELL FOR THE REMINDER REGARDING THE, UM, BINDING, UM, COMMITMENT THAT EACH OF THE PARTIES HAVE TO ENSURE THAT THE WIND DOWN HAPPENS AND THAT THOSE RESOURCES ARE BROUGHT TO BEAR ACCORDINGLY.
UM, SO THANK YOU SO MUCH FOR THAT.
UM, ANY OTHER, UH, QUESTIONS OR DISCUSSION? ALL RIGHT, WELL THANK YOU SO MUCH FOR YOUR QUESTIONS.
UM, ARE THERE, IS THERE ANY PUBLIC COMMENT ON THIS? ALRIGHT, THEN I'LL ENTERTAIN A MOTION IN A SECOND.
ALRIGHT, SO NOW WE ARE GOING TO, TO THE CHAIR AND VICE CHAIR, UH, ELECTION.
SO I DECLARE THE NOMINATIONS OPEN FOR CHAIR OFER, JPA.
UM, JUST SO YOU KNOW, EACH MEMBER MAY NOMINATE ONE PERSON FOR CHAIR, INCLUDING YOURSELF.
UM, AND THESE NOMINATIONS DO NOT REQUIRE A SECOND.
SO I WILL OPEN THIS UP FOR NOMINATIONS CHAIR.
I HAVE, I HAVE A NOMINATION FOR A CHAIR.
ANY OTHER NOMINATIONS FOR CHAIR? NO.
I WAS EVEN THE VICE CHAIR OF THIS
WHAT? SEE, WHAT HAPPENS? WHAT HAPPENS WHEN DON'T THIS MEETING WHEN YOU DON'T COME.
I, I THOUGHT I WAS LIKE, ALRIGHT, MADAM CHAIR, I'D LIKE TO NOMINATE COUNCILMAN MEGAN.
OKAY, SO YOU, WHO DID YOU NOMINATE? YES, I NOMINATE COUNCIL.
SO THANK YOU SO MUCH FOR ALL THIS IS THE BEST.
HAVE YOU BEEN CHAIR BEFORE? NO, IT'S THE BEST MEETING BECAUSE WELL MEETING THE MEETING AND THEN IN THE YEAR WE MEET AND THEN YOU, THEN THERE'S ANOTHER CHAIR.
WE MAY HAVE TWO OR THREE MORE.
UM, SO, UM, SO NOW I'M GONNA, UM, SO NOW THERE'S NO FURTHER NOMINATIONS.
I DECLARE THE NOMINATION CLOSE FOR CHAIR.
DON'T SIT NEXT TO COUNCILWOMAN ALLEN MEETING.
SO NOW WE NEED A, WE HAVE TO NOMINATE A VICE CHAIR.
SO DO YOU I JUST AS A BOARD MEMBER, VICE CHAIR MEGAN.
WE HAVE A NOMINATION FOR VICE CHAIR.
IS, DOES ANYONE ELSE WANNA BE VICE CHAIR? OKAY.
ALRIGHT, WELL THIS IS A WONDERFUL MEETING.
WE HAVE A CHAIR NOW WE HAVE A VICE CHAIR.
CAN YOU VOTE ON THE SLATE? I MEAN, VOTE PEOPLE COULD THE THEORETICALLY VOTE NOW? OKAY, SO NOW WE CAN OPEN THIS UP FOR VOTING.
SO THIS SAYS CLERK CALL THE VOTE AT A BEACH NOMINEE.
YEAH, I THINK YOU CAN JUST DO ONE VOTE AND THE, UH, THE VOTE WILL BE TO CONFIRM, UH, BOARD MEMBER KERR AS CHAIR BOARD MEMBER.
UM, WOOD VICE CHAIR, RIGHT? OKAY.
SOLELY, OH, WHO'S CALLING FOR, FOR THE VOTE? I, I'LL CALL FOR THE VOTE.
ALL IN FAVOR? ALL IN FAVOR? AYE.
FOR, FOR VOTE? NO, I KNOW MEGAN, HER AS CHAIR AND JEFF WOOD AS VICE CHAIR.
ALL IN FAVOR? I THINK WE HAVE EVERYBODY ALL THAT.
THAT IS, EVERYONE HAS RAISED THEIR HAND.
THANK YOU BEING, UH, THE CHAIR HERE.
ALRIGHT, SO NOW WE'RE GONNA MOVE ON TO, UH, PUBLIC COMMENT PERIOD.
SO IT'S AN OPPORTUNITY FOR THE PUBLIC TO ADDRESS, DO WE HAVE ANY, UM, UH, OPEN PUBLIC, UH, A NON AGENDA, PUBLIC COMMENT, DO NOT SEE ANY.
SO, UM, I, UM, DECLARE THIS MEETING ADJOURNED.
THANK YOU FOR BRINGING IT HERE.
[00:15:01]
MAKE IT EASY.