1. KATHRYN E. MEOLA, CHIEF DEPUTY SAN MATEO COUNTY COUNSEL’S OFFICE SHAWN MARSHALL, DIRECTOR LEAN ENERGY PENINSULA CLEAN ENERGY

2. WHAT IS A JPA? “Joint powers” – Government agencies who have agreed to combine their powers and resources to work on their common problems Joint Powers Agreements (JPAs) offer another way for governments to deliver services “JPA” can refer to: Joint Powers Agreement, Joint Powers Agency and Joint Powers Authority

3. AGENCIES INVOLVED Agencies that can exercise joint powers include: Federal agencies; State departments; Counties; Cities; Special districts; School districts; and Other joint powers organizations

4. JOINT POWERS AGREEMENT Formal, legal agreement between two or more public agencies that share a common power and want to jointly implement programs, build facilities or deliver services. Officials from those agencies formally approve a cooperative arrangement. Government agencies that participate in a joint powers agreements are called member agencies.

5. JOINT POWERS AGREEMENT Each joint powers agreement is unique, as there is not set formula for how governments should use their joint powers Allows for creation of a new organization, separate and distinct from the member agencies – known as a “Joint Powers Agency”

6. JOINT POWERS AGENCY Created by the member agencies, but is legally independent of them Shares powers common to the member agencies, as outlined in the joint powers agreement New agency typically has officials from the member agencies on its governing board

7. WHY FORM A JPA? For a CCA program, forming a JPA codifies the interagency agreement Mitigates liability for the member agencies Allows the program to be run independent of the policies, operations and general funds of its member jurisdictions

8. HISTORY Concept of allowing public agencies to share powers started in the 1920s When TB was serious public health threat in the Bay Area Opportunity for SF and Alameda to work together Called the “Joint Exercise of Powers Act.”

9. OPERATION OF A JPA Meetings are open to the public and subject to the Ralph M. Brown Act Must follow the Public Records Act, the Political Reform Act, and other public interest laws that ensure political transparency Create a separation of powers and liabilities between the JPA and the member agencies.

10. FORMATION Formation of a JPA begins when public officials negotiate a formal agreement: Spells out the member agencies’ intentions; Powers that they will share; and Other mutually acceptable conditions that define the intergovernmental arrangement. Each member agency’s governing body then approves the joint powers agreement. In San Mateo County… September 2015 – February 2016 (JPA agreement prep and review; municipal passage) March 2016 – First potential Board Meeting of the JPA

11. FILING REQUIREMENTS JPA must file a Notice of Joint Powers Agreement with the Secretary of State’s Office. Once filed, the JPA can: Incur debts, liabilities and obligations; Exercise its powers; Sue or be sued; Hire staff; Obtain financing; and Manage property.

12. AGENCY REQUIREMENTS As a separate agency, a JPA must appoint a treasurer and an auditor. The treasurer may be someone from a member agency, The County treasurer where the JPA operates, or A certified public accountant who performs the job. The JPA must have an annual audit conducted by a third party; and File the completed audit and make it available to the public.

13. DOCUMENT FRAMEWORK JPA Agreement CCA Ordinance Board Bylaws Policies Policies (examples) Board governance Personnel/Workforce Agency Administration and Operations Customer Related (privacy, terms and conditions, delinquent accounts) Financial Procurement/Contracting

14. ISSUES FOR DISCUSSION IssuePrecedentCounty Recommendation Agency Purpose Solely CCA or other purposes? Focused on CCA /energy related programs Municipal Membership Cities as full members or participants? MCE – Cities as full members SCP – Cities as participants Cities as full members Board Representation Elected official or city appointed representative MCE - appointed elected member + alternate ; no term limits SCP – City appointed rep permitted; current board members are electeds with one CM 1 seat/ member Elected rep +alternate Term limits TBD

15. ISSUES FOR DISCUSSION IssuePrecedentCounty Recommendation Board Voting Two tier structure; Supermajority MCE- Majority and weighted vote combined SCP- Majority vote with option to call for a weighted vote Majority vote with option to call for a weighted vote 2/3 supermajority for amends to JPA agmt. or expulsion of members Joint Powers Powers common to the parties/members and any addtl powers provided by law. Power to contract Power to employ Power to acquire and maintain public works Power to incur debt and issue bonds Power to submit documents, adopt rules and regulations Same

16. ISSUES FOR DISCUSSION IssuePrecedentCounty Recommendation New Members (post launch) MCE – No cost within first year; incremental costs thereafter SCP – No cost within first 180 days; expansion currently under consideration Possible modest fee after initial formation to cover costs of load analytics, procurement, customer enrollment. Withdrawl of Membership Municipal accounts only or all community accounts? MCE – Municipal accounts only; fee for departing load SCP – all accounts within two payout options for departing load Option to remove either municipal accounts and/or all accounts within two timing/payout options Administration Self administered or outsourced ? MCE/SCP: Self administered with option to appt. one or more admin service providers Same

17. ISSUES FOR DISCUSSION IssuePrecedentCounty Recommendation JPA Committees Permissive or required? MCE – Permissive; at discretion of the Board SCP – external/stakeholder operations and rate setting committees required Permissive/at discretion of Board Codify in By-laws Cost Recovery (for advanced program funds-- County only) Both MCE and SCP had cost recovery provisions Cities not expected to contribute to CCE start up costs Cities not liable for agency debt unless otherwise specified in writing

18. QUESTIONS?