CC 2017-02-28_09f South County Transit Agreement
MEMORANDUM
TO: CITY COUNCIL
FROM: GEOFF ENGLISH, PUBLIC WORKS DIRECTOR
BY: GEOFF STRAW, SOUTH COUNTY TRANSIT ADMINISTRATOR
SUBJECT: CONSIDERATION OF AN AGREEMENT AMENDING AND RESTATING
THE SOUTH COUNTY AREA TRANSIT JOINT POWERS AGREEMENT
DATE: FEBRUARY 28, 2017
RECOMMENDATION:
It is recommended the City Council approve and authorize the Mayor to execute an
agreement amending and restating the Joint Powers Agreement with the City of Grover
Beach, the City of Pismo Beach and the County of San Luis Obispo forming the South
County Transit (SCT) agency.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
No financial impact is projected.
BACKGROUND:
The City of Arroyo Grande is a member of the South County Area Transit Joint Powers
Authority. Other members include the cities of Grover Beach and Pismo Beach, as well
as the County of San Luis Obispo.
The current Joint Powers Agreement (JPA) has remained unaltered since it was ratified
in February 1978. However, a number of the laws referenced in the JPA have changed,
and the funding scenario changed considerably when the Decennial Census classified
the SCT service area and adjoining areas as urbanized. Finally, SCT has changed the
way it conducts business, particularly in the following ways:
1. Oversight of the system,
2. How the state-mandated treasurer function is addressed, and
3. Its moniker has changed from SCAT to SCT.
For these reasons, SCT staff worked with SCT Counsel and SCT Executive Committee
members to review the current JPA and to develop language that would address the
three issues presented above. In addition, outdated language has been updated to
reflect current conditions.
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CITY COUNCIL
CONSIDERATION OF AN AGREEMENT AMENDING AND RESTATING THE SOUTH
COUNTY AREA TRANSIT JOINT POWERS AGREEMENT
FEBRUARY 28, 2017
PAGE 2
The SCT Board adopted the new JPA at its May 5, 2016 meeting, and it directed staff to
present the new JPA for ratification at each jurisdiction’s legislative body. Upon
ratification by all parties, SCT staff will submit the amended JPA to the Secretary of
State within 30 days of the last signature.
ANALYSIS OF ISSUES:
Of the three issues listed above, the most important one from a legal standpoint is
addressing how the treasurer function is administered. The current JPA states that the
treasurer function will be rotated annually among the three cities, although current law
requires the County Treasurer perform this function.
Another important issue is the manner in which SCT is currently managed in
comparison to the way that it was administered in 1978. SCT is now administered
under contract to the San Luis Obispo Regional Transit Authority, whereas the oversight
was originally rotated annually among the three city managers.
Finally, as a result of the 2010 Decennial Census, the area served by SCT is now
designated as the Arroyo Grande – Grover Beach Urbanized Area. This new urbanized
area includes the Avila Beach area, which was not included in the original JPA planning
or service area. The urbanized designation has provided the opportunity to use Federal
Transit Administration capital and operating funds, while also imposing new State of
California and Federal requirements.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Approve and authorize the Mayor to ratify the Joint Powers Agreement on behalf
of the City of Arroyo Grande;
2. Do not approve all or some of the JPA amendments; or
3. Provide direction to staff.
ADVANTAGES:
Ratifying the amended JPA will bring SCT into compliance with current State and
Federal laws, and it will more accurately reflect how services are planned, budgeted
and implemented.
DISADVANTAGES:
Staff is not aware of any disadvantages of ratifying the amended JPA.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
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JOINT POWERS AGREEMENT
SOUTH COUNTY AREA TRANSIT
This Agreement, by and between the cities of Arroyo Grande, Grover Beach, Pismo Beach, and
the County of San Luis Obispo, representing the Oceano Area and the Avila Beach Area, is
hereby entered into pursuant to Section 6500 et seq. of the Government Code of the State of
California. This Agreement is a restatement of the South County Area Transit Joint Powers
Agreement of January 9, 1978 and supersedes and replaces that agreement in all respects.
ARTICLE I
GENERAL PROVISIONS
SECTION 1: PURPOSE.
The purpose of this Agreement is to exercise the common powers of the member
agencies by the formation of a Joint Powers Agency with full power and authority to own,
operate, plan for, and administer a public transportation system within the territory over which
the Joint Powers Agency has jurisdiction (see map attached hereto as Exhibit A). This territory is
consistent with the Arroyo Grande – Grover Beach Urbanized Area, which was designated as a
result of the 2010 Decennial Census.
SECTION 2: NAME.
The official name of the Joint Powers Agency shall be South County Area Transit, and
hereinafter referred to as “South County Transit” or alternately as “Agency.”
SECTION 3: POWERS.
The Agency shall have all the powers necessary to carry out the purpose of this
Agreement, except the power to tax. The power to expend funds shall be limited only by the
availability of funds as set forth in Section 1 of Article III, Financial Provisions of this
Agreement. The powers of the Agency specifically include, but are not limited to, the following:
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a. To operate a public transit system to serve all three incorporated cities in South
San Luis Obispo County and the Oceano and Avila Beach areas of San Luis Obispo County, as is
shown on the map attached hereto as Exhibit A.
b. To sue and be sued.
c. To employ agents, employees and to contract for professional or other services.
d. To make and enter into contracts including labor, purchase agreements and
employment contracts.
e. To acquire, convey, construct, manage, maintain and operate buildings and
improvements.
f. To acquire and convey real and personal property.
g. To incur debts, liabilities and obligations from private, state and federal agencies.
h. To apply for and execute contracts of financial assistance from state and federal
agencies and to obligate the Agency to operate the improvements, equipment, or transportation
system in accordance with the terms and conditions of said financial assistance.
i. To purchase necessary insurance.
j. To develop policies and procedures necessary to remain in compliance with
Federal Transit Administration Section 5307 Urbanized Area Formula Program and other federal
grant program funding requirements.
SECTION 4: AGENCY IS A PUBLIC LEGAL ENTITY.
The Joint Powers Agency, South County Transit, is a public entity duly formed and
existing under the laws of the State of California. It is a separate and distinct legal entity from its
member agencies. The debts, duties and obligations created pursuant to this Agreement, or those
created pursuant to the previous Agreement, shall be solely the obligation of South County
Transit and not those of its member agencies or of officers, employees, members of the Board of
Directors or the officers, employees, and board or council-members of the member agencies.
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ARTICLE II
ORGANIZATION
SECTION 1: BOARD OF DIRECTORS.
The powers of the Agency are vested in its Board of Directors. The Board of Directors
shall be composed of one representative from each member agency, of which there are four
members. Each member of the Board of Directors shall have one vote. Each member agency
shall appoint one regular member and one alternate member to the Board of Directors, and shall
notify the Agency in writing of their appointments or of any change of representative. The
representative shall serve solely at the pleasure of the appointing member agency.
Representatives shall be either elected officials or officers or employees of the member agency.
SECTION 2: MEETINGS – VOTING QUORUM.
The Board shall establish a time, place and date for a regular quarterly meeting. Regular
meetings may be adjourned from time to time. Special meetings may be called by the Chairman
or upon written request by any two members of the Board. Members shall be given at least 24
hours written notice of special meetings, provided however, the representative of any member
may waive said notice.
A majority of the members shall constitute a quorum for the transaction of business.
Unless specifically limited by this Agreement, the vote of the majority of the members
present at any regular, adjourned or special meeting shall be sufficient to act upon any matter.
SECTION 3: OFFICERS.
The Board shall elect a Chairman and Vice-Chairman, and the Vice-Chairman shall act in
the absence of the Chairman. The Board shall also elect such other officers as deemed necessary.
All officers shall serve for a term of one year from the later of the date of their election or
until their successors are elected. The Chairman or Vice-Chairman is authorized to execute all
documents in the name of the Agency.
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SECTION 4: ADMINISTRATION.
The Board may in its discretion, appoint an Administrator of the transit system, to serve
at the pleasure of the Board, and to have the power to certify Agency documents as required by
law and to assume such duties and responsibilities as the Board may direct.
SECTION 5: NEW MEMBERS.
The Board may accept new members to the Agency on such terms and conditions as the
Board may prescribe.
SECTION 6: CHANGE OF BOUNDARIES.
The boundaries of this Agency are subject to change, as set forth hereinafter. If any
portion of the unincorporated area of the County is annexed to a member city, that annexed
portion shall automatically be included within the boundaries of this Agency, and the said
member city shall assume any obligations of the County under this Agreement as to that area, if
any. If a new city should be formed in any portion of the unincorporated area of the County
presently included within the territory of this Agency, and if such a new city should become a
party to this Agreement, then the affected area shall be the responsibility of the new city and the
County shall not be responsible for any obligations on account of the area so included within the
new city as of the effective date of the incorporation of the new city. The boundaries of this
Agency shall be adjusted to reflect annexations or new incorporations as set forth hereinabove.
SECTION 7: SERVICE LEVELS.
Any additional services beyond the level recommended by the Regional Transportation
Plan or mandated in the annual Unmet Transit Needs Hearing (PUC Section 99401.5) may be
instituted, but shall require unanimous approval of affected jurisdictions, with costs for the extra
service to be distributed on the basis of a formula developed by the Board members representing
the affected jurisdictions.
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SECTION 8: COMMITTEES.
a. Committees and subcommittees may be established as the Board may deem
appropriate. Committees and subcommittees must abide by open meetings requirements of the
Brown Act (Government Code Section 54950 et seq.).
b. Membership on “ad-hoc” policy committees shall be at the discretion of the Board
Chairman. Nothing herein shall be construed to limit membership on these aforesaid committees
to officials of the member agencies. The Chairman may appoint any individual deemed qualified
to serve on a committee.
c. An Executive Committee may be formed by the Administrator to advise the
Administrator on draft agendas, personnel issues, budget, and controversial, sensitive and major
policy issues. If such a committee is formed, then each city and the County shall have the
opportunity to designate a staff person to participate on it. Items for review shall be selected by
the Administrator in consultation with the Chairman. All Committee members may include
agenda items as they desire. For purposes of conducting business, three members shall constitute
a quorum.
d. No committee shall commit the Agency on any matter or questions of policy.
Such matters or questions can only be decided by the Board.
e. All Board-established committees shall receive clerical assistance from Agency
staff for the purpose of maintaining minutes of meetings, complying with Brown Act open
meeting requirements, and other such duties as the Administrator may direct. The chair of each
Board-established committee shall sign the original copy of the minutes indicating verification of
contents upon committee adoption. Copies of minutes of all meetings shall be sent to Board
members.
ARTICLE III
FINANCIAL PROVISIONS
SECTION 1: BUDGET – LIMITATION OF FINANCIAL COMMITMENT.
The Board shall establish the fiscal year for the Agency and shall, prior to the
commencement of each fiscal year, adopt an annual budget prepared by the Administrator.
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A Consolidated Fund balance and cash balance will carry forward from one year to the
next. The budget may additionally carry funds for future fiscal years where necessary to develop
a multi-year Capital Improvement Program and to reflect obligations under state or federal
funding agreements, to the extent allowable by California law.
Accounting practices to be applied will conform with those used by San Luis Obispo
County, consistent with Transportation Development Act rules and regulations.
No member agency shall be required to expend any of its general fund monies to support
the operations of the Agency, unless said expenditure is first approved by the legislative body of
the member agency. The operation of the transit system shall be solely funded from
Transportation Development Act monies or from grant monies, and from revenues derived from
operations. Each member agency shall make an annual Transportation Development Act
contribution to the Agency based upon the percentage of total Agency-served population related
to the area served within that member agency. All population percentages utilized shall be those
annually adopted by the San Luis Obispo Council of Governments for allocating Transportation
Development Act Funds based annually on estimates prepared by the State Department of
Finance pursuant to Section 2227 of the Revenue and Taxation Code for cities and by the County
Planning Department for unincorporated communities.
SECTION 2: EXPENDITURES.
The Board will establish procedures and policies to insure competitive prices for the
purchases of goods and services that meet federal and state procurement requirements.
SECTION 3: TREASURER AND AUDITOR.
Pursuant to Government Code Section 6505.5, the Treasurer of the County of San Luis
Obispo is hereby designated as Treasurer of the Agency. The Treasurer shall have the powers
and duties set forth in Government Code Section 6505.5. The Auditor/Controller of the County
of San Luis Obispo is designated as the Auditor of the Agency pursuant to Government Code
Section 6505.5.
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SECTION 4: ANNUAL AUDIT.
The Board of Directors shall cause an annual audit to be prepared and filed in accordance
with Government Code Section 6505 and Public Utilities Code Section 99245.
SECTION 5: OFFICIAL BONDS.
The Administrator and such other employees or agents as the Board may direct shall file
an official bond in an amount to be determined by the Board. The cost of said bond(s) shall be
borne by the Agency.
SECTION 6: ANNUAL REPORT.
The Administrator shall prepare and submit an annual report of the operations to the San
Luis Obispo Council of Governments and the Office of the State Controller within 90 days of the
end of the fiscal year pursuant to Public Utilities Code, Section 99243.
SECTION 7: PERIODIC REPORTING.
The Board may require periodic reporting of ridership, finances, or other information. It
shall be the responsibility of the Administrator to provide such reports in a form acceptable to the
Board.
ARTICLE IV
MISCELLANEOUS PROVISIONS
SECTION 1: WITHDRAWAL OF MEMBERS.
Any member of this Agency may withdraw after providing written notice to the Agency
Board one year in advance of the requested withdrawal date.
A withdrawing member’s financial obligation under this Section is limited to the
withdrawing member’s pro-rata share of the currently adopted operating budget based upon
ARTICLE III, SECTION 1 within the service area of the obligated commitments affecting the
withdrawing member and any San Luis Obispo Council of Governments finding as to Unmet
Transit Needs that are Reasonable to Meet pursuant to Public Utilities Code Section 99401.5.
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However, the obligations of a withdrawing member under this section are limited to the special
transportation funds to which the withdrawing member would be entitled, such as Transportation
Development Act funds, and this section shall not impose any obligation on the general funds of
the withdrawing member.
SECTION 2: AMENDMENT OF AGREEMENT.
This Agreement may be amended at any time with the unanimous approval of the
legislative bodies of the member agencies. No amendment to this Agreement shall be effective
without such unanimous approval.
SECTION 3: RATIFICATION – EFFECTIVE DATE.
This Agreement shall become effective upon ratification by all member agencies. This
Agreement shall be dated and shall be effective upon the last date ratified by a member agency.
SECTION 4: ASSIGNABILITY.
In the event it is deemed in the best public interest to have the public transportation
system operated by another individual or entity, whether public or private, and provided that the
assignment complies with state and federal law, the Agency on affirmative vote of all of its
members, may sell, lease or assign all of its real and personal property and may cease operations
upon such terms and conditions as the Board determines to be reasonable.
SECTION 5: TERMINATION.
This Agreement shall continue in full force and effect until cancelled by a majority of the
member agencies.
SECTION 6: NOTIFICATION TO SECRETARY OF STATE.
Pursuant to Government Code Section 6503.5, the Agency shall cause a notice of the
execution of this Agreement to be prepared and filed with the Office of the Secretary of the State
of California, within thirty (30) days after the effective date of this Agreement. The Agency shall
likewise cause such a notice to be prepared and filed with the Office of the Secretary of State
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within thirty (30) days after the effective date of any amendment to this Agreement. Until such
filings are completed, the Agency shall not incur indebtedness of any kind.
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IN WITNESS WHEREOF, the parties have executed this Agreement as to be effective on
the _____ day of _____________________, 2017, which is the last date of signing by a member.
IN WITNESS THEREOF, the parties have executed this Agreement as of the day and
year first hereinabove written.
City of Arroyo Grande
By: ___________________________ Date:______________________
___________________________ Resolution No._______________
Clerk
City of Grover Beach
By: ___________________________ Date:______________________
___________________________ Resolution No._______________
Clerk
City of Pismo Beach
By: ___________________________ Date:______________________
___________________________ Resolution No._______________
Clerk
County of San Luis Obispo
By: ___________________________ Date:______________________
___________________________ Resolution No._______________
Clerk
Approved as to form and legal effect:
TIM MCNULTY
County Counsel
By: ___________________________
Deputy County Counsel
Date: __________________________
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Exhibit A – SCT Planning Area Map
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