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HomeMy WebLinkAboutAgenda Item - 2026-01-20 - Number 06.1 - Resolution 26-02, Clack Co IGA 6.1 V o� 0 E 0 COUNCIL REPORT � — OREGO� Subject: IGA with Clackamas County regarding Opportunity to Recycle, Plastic Pollution and Recycling Modernization Act Cooperation Meeting Date: January 20, 2026 Staff Member: Martha Bennett, City Manager Report Date: December 8, 2025 Department: City Manager's Office Action Required Advisory Board/Commission Recommendation ❑ Motion ❑ Approval ❑ Public Hearing ❑ Denial ❑ Ordinance ❑ None Forwarded ❑X Resolution ❑X Not Applicable ❑ Information Only Comments: ❑ Council Direction ❑X Consent Agenda Staff Recommendation: Adopt Resolution 26-02, an intergovernmental agreement with Clackamas County regarding Opportunity to Recycle and Plastic Pollution and Recycling Modernization. Recommended Language for Motion: Move to adopt Resolution 26-02. Project/ Issue Relates To: Solid Waste Management Issue before Council (Highlight Policy Question): ❑Council Goals/Priorities ❑Adopted Master Plan(s) ❑X Not Applicable ISSUE BEFORE COUNCIL Approval of an intergovernmental agreement with Clackamas County to carry out recycling programs and activities on behalf of the City to meet requirements of local and state recycling laws. BACKGROUND Clackamas County Recycling Partnership Lake Oswego is part of the Clackamas County Recycling Partnership, a co-operative effort among Clackamas County and cities in the county to coordinate and share resources to Respect Trust. 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 2 effectively and efficiently meet outreach and education requirements conveyed through the Opportunity to Recycle Act (ORS Ch. 459A) and regional waste plans. Through the Clackamas County Recycling Partnership, Clackamas County provides county-wide recycling and waste reduction programs and activities that meet many of the requirements of Oregon's Opportunity to Recycle Act that apply to cities in the county, and reports to DEQ on these programs and activities on behalf of cities in the partnership. Plastic Pollution and Recycling Modernization Act In 2021 (Senate Bill 582), the Oregon Legislature enacted the Plastic Pollution and Recycling Modernization Act (RMA), which will update Oregon's recycling system by expanding access to recycling services and upgrading recycling facilities across the state. The law takes an Extended Producer Responsibility approach that requires producers of packaging, food service ware, and paper products to share responsibility for the disposal of their products through paying in to the recycling system. Companies that sell products in Oregon that are covered by the law must pay fees to a statewide nonprofit Producer Responsibility Organization (PRO) that administers the statewide program. The Producer Responsibility Organization will use the fees to cover expenses for local recycling services that provide all Oregonians the same opportunities to recycle in a way that creates environmental benefits. Local governments in Oregon are responsible for overseeing recycling collection. The RMA creates new requirements for local governments to expand recycling services as needed to collect materials on a new, uniform statewide list, implement new programs to reduce contamination in recycling streams, use recycled plastic in collection containers, and report on activities to the Oregon Department of Environmental Quality (DEQ). Local governments and local governments' service providers can request reimbursement from the PRO for eligible costs to meet the requirements of the law, under ORS 459A.890. Earlier this year, DEQ requested that local governments complete a Funding Authorization Form indicating whether the local government would receive future PRO funding directly, or whether they would like to designating service provider(s) or other entities to receive the funding for eligible activities that are carried out to meet the local government's RMA obligations. In keeping with the Clackamas County Recycling Partnership, Clackamas County proposed to carry out county-wide recycling programs—including but not limited to contamination reduction programming—that meet the requirements of the Plastic Pollution and Recycling Modernization Act (OAR 340-090-0030) on behalf of cities in the partnership. In addition, the County will lead a planning effort, in collaboration with regional partners and service providers, to identify how funding will need to be distributed among the different entities across the county in order to carry out the programs and activities required by the RMA. To this end, Lake Oswego staff recommended designating Clackamas County as the authorized entity to receive eligible compensation directly from the PRO through the DEQ's Funding Authorization Process. On March 18, 2025, the City Council authorized the City Manager to execute an intergovernmental agreement with Clackamas County to provide services to meet the Respect. Excellence. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY Page 3 requirements of the Plastic Pollution and Recycling Modernization Act for local governments, and to receive the producer responsibility organization funding reimbursement on behalf of the City of Lake Oswego. DISCUSSION The City of Lake Oswego and Clackamas County's partnership on recycling programs and activities is currently outlined in a 2008 Letter of Understanding. In the process of developing an intergovernmental agreement for Recycling Modernization Act programming, City and County staff identified an opportunity to incorporate the other aspects of the Clackamas County Recycling Partnership into the IGA, to replace the older 2008 Letter of Understanding with one comprehensive agreement. The IGA in Attachment 1— Exhibit A covers the scope of work for Clackamas County and the City of Lake Oswego to collaborate on meeting state and local recycling requirements from the Opportunity to Recycle Act, Recycling Modernization Act, and Metro Regional Waste Plan. FISCAL IMPACT The result of this action would be no change to the City's budget. RECOMMENDATION Authorize the City Manager to execute an intergovernmental agreement with Clackamas County regarding Opportunity to Recycle and Plastic Pollution and Recycling Modernization. ATTACHMENTS 1. Resolution 26-02 Respect. Excellence. Trust. Service 503-635-0215 380 A AVENUE PO BOX 369 LAKE OSWEGO, OR 97034 WWW.LAKEOSWEGO.CITY ATTACHMENT 1 RESOLUTION 26-02 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LAKE OSWEGO AUTHORIZING THE CITY MANAGER TO EXECUTE AN INTERGOVERNMENTAL AGREEMENT WITH CLACKAMAS COUNTY TO PROVIDE SERVICES FOR PLASTIC POLLUTION AND RECYCLING MODERNIZATION, AND TO RECEIVE THE PRODUCER RESPONSIBILITY ORGANIZATION FUNDING REIMBURSEMENT WHEREAS, Oregon's Opportunity to Recycle Act and Plastic Pollution and Recycling Modernization Act (OAR Chapter 340, Division 90), established statewide requirements for providing the opportunity to recycle and reducing waste, including responsibilities for local governments; and WHEREAS, the City of Lake Oswego and Clackamas County have had a long-standing agreement whereby Clackamas County provides county-wide recycling and waste reduction programs and activities that meet many of the requirements of the Opportunity to Recycle Act that apply to cities in the Metro region on behalf of Clackamas County cities, including Lake Oswego; WHEREAS, on March 18, 2025, the City Council authorized the City Manager to execute an intergovernmental agreement with Clackamas County to provide services to meet the requirements of the Plastic Pollution and Recycling Modernization Act for local governments, and to receive producer responsibility organization funding reimbursement on behalf of the City of Lake Oswego; and WHEREAS, Clackamas County and the City of Lake Oswego desire to replace their 2008 Letter of Understanding for Opportunity to Recycle Act implementation with a comprehensive IGA that covers the full scope of collaboration between the two agencies to meet requirements of the Opportunity to Recycle Act and Plastic Pollution and Recycling Modernization Act. NOW,THEREFORE, BE IT RESOLVED by the City Council of the City of Lake Oswego that: Section 1. The City Manager is authorized to execute the intergovernmental agreement with Clackamas County attached as Exhibit A. Section X. Effective Date. This Resolution shall take effect upon passage. Considered and enacted at the regular meeting of the City Council of the City of Lake Oswego on the 20 day of January 2026. AYES: NOES: EXCUSED: ABSTAIN: Resolution 26-02 Page 1 of 2 Joseph M. Buck, Mayor ATTEST: Laural Hawkins, City Recorder APPROVED AS TO FORM: Erica Tatoian, Legal Counsel Resolution 26-02 Page 2 of 2 ATTACHMENT 2 Intergovernmental Agreement between Clackamas County and City of Lake Oswego Opportunity to Recycle, Plastic Pollution and Recycling Modernization [ORS 459A; OAR 340-090] 1. Purpose This Agreement is entered into between the City of Lake Oswego (the "City") and Clackamas County(the "County")for the cooperation of units of local government under the authority of ORS 190.010.This Agreement provides for the County, on behalf of the City and as a part of the Clackamas County Recycling Partnership, to meet the requirements of the Opportunity to Recycle Act, including the Recycling Modernization Act (OAR chapter 340, division 90) as applicable to the City, in carrying out certain county-wide recycling programs and activities, including but not limited to recycling, waste prevention, and contamination reduction programming. 2. Background Through the Clackamas County Recycling Partnership,the County provides county-wide recycling and waste reduction programs and activities that meet many of the requirements of Oregon's "Opportunity to Recycle Act" (ORS chapter 459A)that apply to the metropolitan service district (Metro)for Clackamas, Multnomah, and Washington counties and the cities therein, including the City,to develop integrated solid waste management plans—the Regional Waste Plan (RWP)—and implement associated activities to meet goals established by the Oregon Department of Environmental Quality(DEQ).The County also reports to DEQ via Metro, the wasteshed representative, on these programs and activities on behalf of cities in the partnership, including the City. Key components of meeting the goals established in the RWP are directly related to the activities of the solid waste collection franchisee(s). Some of the collection practices considered to be standard components of the RWP include but are not limited to: 1) Weekly collection of the uniform statewide collection list (commingled recycling); 2) Collection of glass separated from other recyclables; and 3) Providing the opportunity for all business and multifamily communities to have recyclables collected. Metro maintains regional service standards (RSS) that detail minimum solid waste and recycling collection service levels to be provided for compliance with Opportunity to Recycle Act requirements. The Plastic Pollution and Recycling Modernization Act [SB 582 (1921)] created requirements (starting in 2025)for cities to provide for recycling in their communities, including by collecting a uniform statewide list of materials and implementing new contamination reduction programs. Local governments may receive compensation for eligible costs to implement these additional requirements from the statewide Producer Responsibility Organization (PRO), Circular Action Alliance (CAA). Local governments may elect to receive PRO funding directly or may authorize service providers and/or other entities that incur eligible costs to receive compensation directly from the PRO for activities conducted (and reporting)for their community. 1 - Intergovernmental Agreement- Plastic Pollution and Recycling Modernization The RWP, Metro Code and rules, and state law related to waste reduction and recycling requires implementation throughout the entirety of the Metro wasteshed. Local governments may receive compensation annually based on the funds Metro has allocated for the Annual Waste Reduction Plan (subset of RWP) in the adopted Metro budget. Local governments may elect to receive Metro funding directly or may authorize the County to receive compensation directly from Metro for the activities conducted (and reporting)for their community. 3. Scope of Work A. In keeping with the Clackamas County Recycling Partnership,the County shall carry out the recycling programs and activities—including but not limited to waste reduction and contamination reduction planning, program implementation, and education—that meet the requirements of OAR chapter 340, division 90, on behalf of the City. B. The County shall represent the City in the planning effort, in collaboration with regional partners and service providers where appropriate, to develop one or more funding agreements with the producer responsibility organization that designate how funds will be distributed to meet those requirements for the City, pursuant to the planning efforts of the Clackamas County Recycling Partnership. With the City's prior authorization, this may include distribution of funds directly to the City's franchised hauler. C. Pursuant to the delegation of authority below,the County shall file such reports as may be necessary with DEQ to acknowledge receipt and to report eligible expenses, and to otherwise act as required or permitted by OAR chapter 340, division 90, on behalf of the City. D. The County shall have an opportunity to review any proposed deviation from the standard collection practices of the solid waste collection franchisee(s) presented to the City for the purpose of ensuring continued compliance with the RSS and with RWP and Opportunity to Recycle Act requirements.The County agrees to present the findings of the review to the City. E. The County shall provide the City with standardized forms to request annual production and financial data from the City's solid waste collection franchisee for use in the City's annual review and establishment of service rates.The City shall request that their franchisee share the City- specific data with the County for the County's annual review to support standardized data collection and compliance with Opportunity to Recycle Act and Plastic Pollution and Recycling Modernization Act requirements for fees.The County may request other City-specific operational data from the City's franchisee as needed to support compliance with state and local recycling requirements and programming. 4. Delegation of Authority by City to County.The City designates the County as its authorized agent to receive eligible compensation directly from the producer responsibility organization through DEQ's Funding Authorization Process pursuant to OAR 340-090-0810. 5. Term and Termination A. This Agreement becomes effective on January 1, 2026, and shall be automatically renewed each calendar year unless otherwise terminated as provided herein. 2 - Intergovernmental Agreement- Plastic Pollution and Recycling Modernization B. Either party may terminate this Agreement at the end of the then-current calendar year by providing notice to the other party at least ninety(90) days before the end of that calendar year. Where this Agreement is terminated at the end of a calendar year,the County shall complete all reporting requirements for that calendar year. C. Either party may terminate this Agreement in the event of a breach of the Agreement by the other party. Prior to such termination, however,the party seeking the termination shall give the other party written notice of the breach and of the party's intent to terminate. If the breaching party has not entirely cured the breach within fifteen (15) days of deemed or actual receipt of the notice,then the party giving notice may terminate the Agreement at any time thereafter by giving written notice of termination stating the effective date of the termination. If the default is of such a nature that it cannot be completely remedied within such fifteen (15) day period, this provision shall be complied with if the breaching party begins correction of the default within the fifteen (15) day period and thereafter proceeds with reasonable diligence and in good faith to effect the remedy as soon as practicable.The party giving notice shall not be required to give more than one (1) notice for a similar default in any twelve (12) month period. D. Neither party shall be deemed to have waived any breach of this Agreement by the other party except by an express waiver in writing.An express written waiver as to one breach shall not be deemed a waiver of any other breach not expressly identified, even though the other breach is of the same nature as that waived. E. Either party may terminate this Agreement in the event the terminating party fails to receive expenditure authority sufficient to allow that party, in the exercise of its reasonable administrative discretion,to continue to perform under this Agreement, or if federal or state laws, regulations, or guidelines are modified or interpreted in such a way that the terminating party is prohibited from performing under the Agreement.The terminating party shall give written notice of termination stating the effective date of the termination. F. Any termination of this Agreement shall not prejudice any rights or obligations accrued to the parties prior to termination. 6. General Provisions. A. Liability. Subject to the limits of the Oregon Constitution and the Oregon Tort Claims Act or successor statute,the County agrees to indemnify and hold harmless the City, its officers, elected officials, agents, and employees, from and against all third party claims and actions, and all expenses incidental to the investigation and defense thereof, including reasonable attorney fees, arising out of or based upon damage or injuries to persons or property caused by the negligent acts or omissions of the County, its employees or agents,while performing under this Agreement. Subject to the limits of the Oregon Constitution and the Oregon Tort Claims Act or successor statute,the City agrees to indemnify and hold harmless the County, its officers, elected officials, agents, and employees,from and against all third party claims and actions, and all expenses incidental to the investigation and defense thereof, including reasonable attorney fees, arising 3 - Intergovernmental Agreement- Plastic Pollution and Recycling Modernization out of or based upon damage or injuries to persons or property caused by the negligent acts or omissions of the City, its employees or agents, while performing under this Agreement. B. Oregon Law and Forum.This Agreement, and all rights, obligations, and disputes arising out of it, shall be governed by and construed in accordance with the laws of the State of Oregon and the ordinances of the County,without giving effect to the conflict of law provisions thereof.Any claim between the parties that arises from or relates to this Agreement shall be brought and conducted solely and exclusively within the Circuit Court of Clackamas County for the State of Oregon; provided, however, that, if a claim must be brought in a federal forum, it shall be brought and conducted solely and exclusively within the United States District Court for the District of Oregon. In no event shall this section be construed as a waiver by the County of any form of defense or immunity,whether sovereign immunity,governmental immunity, immunity based on the Eleventh Amendment to the Constitution of the United States or otherwise,from any claim or from the jurisdiction of any court.The City hereby consents to the in personam jurisdiction of the courts referenced in this section. C. Compliance with Applicable Law.The parties shall comply with all applicable local, state, and federal ordinances, statutes, laws, and regulations. All provisions of law required to be a part of this Agreement, whether listed or otherwise, are hereby integrated and adopted herein. Failure to comply with such obligations is a material breach of this Agreement. D. Non-Exclusive Rights and Remedies. Except as otherwise expressly provided herein,the rights and remedies expressly afforded under the provisions of this Agreement shall not be deemed exclusive, and shall be in addition to and cumulative with any and all rights and remedies otherwise available at law or in equity.The exercise by either party of any one or more of such remedies shall not preclude the exercise by it, at the same or different times, of any other remedies for the same default or breach, or for any other default or breach, by the other party. E. Access to Records.The City shall retain, maintain, and keep accessible all records relevant to this Agreement (the "Records")for a minimum of six (6)years following termination of or full performance under this Agreement, or for any longer period as may be required by applicable law, or until the conclusion of an audit, controversy, or litigation arising out of or related to this Agreement, whichever is later.The City shall maintain all financial Records in accordance with generally accepted accounting principles. All other Records shall be maintained to the extent necessary to clearly reflect actions taken. During this record retention period,the City shall permit the County's authorized representatives access to the Records at reasonable times and places for purposes of examining and copying. F. Work Product.All work performed under this Agreement shall be considered work made for hire and shall be the sole and exclusive property of the County.The County shall own any and all data, documents, plans, copyrights, specifications,working papers, and other materials produced in connection with this Agreement. G. Debt Limitation.This Agreement is expressly subject to the limitations of the Oregon Constitution and Oregon Tort Claims Act, and is contingent upon the appropriation of funds.Any provisions herein that conflict with the above-referenced laws are deemed inoperative to that extent. 4- Intergovernmental Agreement- Plastic Pollution and Recycling Modernization H. Severability. If any provision of this Agreement is found to be unconstitutional, illegal, or unenforceable, this Agreement nevertheless shall remain in full force and effect, and the offending provision shall be stricken.The court or other authorized body finding such provision unconstitutional, illegal, or unenforceable shall construe this Agreement without such provision to give effect to the maximum extent possible the intentions of the parties. I. Integration,Amendment, and Waiver. Except as otherwise set forth herein,this Agreement constitutes the entire agreement between the parties regarding the subject matter described herein.There are no understandings, agreements, or representations, oral or written, not specified herein regarding this Agreement. No waiver, consent, modification, or change of terms of this Agreement shall bind either party unless in writing and signed by both parties and all necessary approvals have been obtained. Such waiver, consent, modification, or change, if made, shall be effective only in the specific instance and for the specific purpose given.The failure of either party to enforce any provision of this Agreement shall not constitute a waiver by such party of that or any other provision. J. Interpretation.The titles of the sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. K. Independent Contractor. Each party shall be deemed an independent contractor for purposes of this Agreement. No representative, agent, employee, or contractor of one party shall be deemed to be a representative, agent, employee, or contractor of the other party for any purpose, except to the extent specifically provided herein. Nothing herein is intended, nor shall it be construed,to create between the parties any relationship of principal and agent, partnership,joint venture,or similar relationship, and each party hereby specifically disclaims any such relationship. L. No Third-Party Beneficiary.The City and the County are the only parties to this Agreement and are the only parties entitled to enforce its terms. Nothing in this Agreement gives, is intended to give, or shall be construed to give or provide any benefit or right,whether directly, indirectly, or otherwise,to third persons unless such third persons are individually identified by name herein and expressly described as intended beneficiaries of the terms of this Agreement. M. Subcontract and Assignment.The City shall not enter into any subcontracts for any of the work required by this Agreement, or assign or transfer any of its interest in this Agreement by operation of law or otherwise, without obtaining prior written approval from the County, which shall be granted or denied in the County's sole discretion.The County's consent to any subcontract shall not relieve the City of any of its duties or obligations under this Agreement. N. Counterparts.This Agreement may be executed in several counterparts (electronic or otherwise), each of which shall be an original, and all of which shall constitute the same instrument. O. Survival. All provisions in this Section 6 shall survive the termination of this Agreement,together with all other rights and obligations herein which by their context are intended to survive. Signatures on next page. 5 - Intergovernmental Agreement- Plastic Pollution and Recycling Modernization Signed: CLACKAMAS COUNTY CITY OF LAKE OSWEGO By: By: Title: Title: Date: Date: Approved as to Form: El n Osoinach, City Attorney 6- Intergovernmental Agreement- Plastic Pollution and Recycling Modernization