CC 2019-08-13_08h Resolution_Monterey Bay Community Power JPAMEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
By: RORY R. MCCLISH, PUBLIC WORKS INTERN
SUBJECT: CONSIDERATION OF A RESOLUTION REQUESTING MEMBERSHIP IN
THE MONTEREY BAY COMMUNITY POWER JOINT POWER
AUTHORITY
DATE: AUGUST 13, 2019
SUMMARY OF ACTION:
Adoption of a Resolution joining Monterey Bay Community Power Joint Power Authority
(MBCPA) under a joint powers agreement (JPA) implementing the community choice
aggregation program authorized by Ordinance No. 700.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
It is estimated that the financial obligation to amend the implementation plan and JPA
would be $5,000 to $7,500. This cost may be reduced depending on the number of cities
that join MBCP next year.
RECOMMENDATION:
It is recommended that the City Council adopt a Resolution requesting membership in
MBCPA and authorizing the Mayor or City Manager to execute the JPA as amended with
MBCPA.
BACKGROUND:
On June 25, 2019, the Council voted, with Council Member George recusing herself, to
adopt an ordinance authorizing the implementation of the community choice aggregation
(CCA) program offered by Monterey Bay Community Power (MBCP). Before amending
their implementation plan, MBCP requires that the City adopt a resolution requesting
membership under a JPA. The City Council did not adopt a resolution requesting
membership under a JPA at the time it adopted Ordinance No. 700 because the City was
waiting to receive a response from the Fair Political Practices Commission (FPPC)
regarding the City Council’s ability to enter into a JPA with MBCPA due to a potential
Item 8.h. - Page 1
CITY COUNCIL
CONSIDERATION OF A RESOLUTION REQUESTING MEMBERSHIP IN THE
MONTEREY BAY COMMUNITY POWER JOINT POWER AUTHORITY
AUGUST 13, 2019
PAGE 2
Government Code Section 1090 financial conflict of interest arising out of Council
Member George’s financial interest in the contract.
ANALYSIS OF ISSUES:
The Public Utilities Code provides that cities authorized to be a community choice
aggregator may participate as a group in a community choice aggregation program
through a joint powers agency. MBCPA is a joint powers agency pursuant to a JPA and
in order for the City to become a member, the JPA must be amended. On August 1, 2019,
the City received an advice letter from the FPPC stating that the City Council may enter
into the MBCPA joint powers agreement as long as Council Member George abstains
from any decision related to the agreement. The Resolution requesting to join MBCPA is
now ready for adoption. The Resolution will become effective immediately.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt a Resolution requesting membership in the MBCP Joint Powers Authority and
authorizing the Mayor or City Manager to execute the joint powers agreement as
amended with MBCPA; or
2. Modify and adopt the Resolution; or
3. Provide alternative direction to staff.
ADVANTAGES:
Adoption of the Resolution is consistent with the Council’s adoption of the Ordinance on
June 25, 2019.
DISADVANTAGES:
There are no disadvantages.
ENVIRONMENTAL REVIEW:
The establishment of a CCA is exempt from the requirements of the California
Environmental Quality Act (“CEQA”) pursuant to the CEQA Guidelines, as it is not a
“project” as it has no potential to result in a direct or reasonably foreseeable indirect
physical change to the environment because energy will be transported through existing
infrastructure (14 Cal. Code Regs. § 15378(a)). Further, establishing a CCA is exempt
from CEQA as there is no possibility that this it would have a significant effect on the
environment (14 Cal. Code Regs. § 15061(b)(3)). Further, the establishment of a CCA is
also categorically exempt because it is an action taken by a regulatory agency to assume
the maintenance, restoration, enhancement or protection of the environment (14 Cal.
Code Regs. § 15308).
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.
Item 8.h. - Page 2
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARROYO
GRANDE, REQUESTING MEMBERSHIP IN THE MONTEREY BAY
COMMUNITY POWER JOINT POWERS AUTHORITY (MBCPA) AND
AUTHORIZING THE MAYOR OR CITY MANAGER TO EXECUTE THE
JOINT POWERS AUTHORITY AGREEMENT AS AMENDED WITH
MBCPA
WHEREAS, AB 117, adopted as California state law in 2002, permits cities, counties, or
Joint Power Authorities comprised of cities and counties to aggregate residential,
commercial, industrial, municipal and institutional electric loads through Community
Choice Aggregation (CCA); and
WHEREAS, pursuant to Section 366.2 of the Public Utilities Code, two or more entities
authorized to be a community choice aggregator may participate as a group in a
community choice aggregation program through a joint powers agency established
pursuant to Chapter 5 (commencing with Section 6500) of Division 7 of Title 1 of the
Government Code, if each entity adopts the aforementioned ordinance; and
WHEREAS, in March 2017, MBCPA was established as a joint powers agency pursuant
to a joint powers agreement; and
WHEREAS, the purpose of MBCPA is to address climate change by providing locally
controlled carbon-free electricity at affordable rates; and
WHEREAS, the City Council supports the mission of MBCPA and its intent to promote
the development and use of a wide range of carbon free and renewable energy sources
and energy efficiency programs, including solar and wind energy production at
competitive rates for customers; and
WHEREAS, in order for the City to become a member of MBCPA, the MBCPA Joint
Powers Agreement (JPA) must be amended to permit the City join as a party; and
WHEREAS, MBCPA also has requested the City adopt a resolution requesting
membership in MBCPA and authorizing its Mayor or City Manager to execute the JPA
as amended, as well as an ordinance authorizing CCA within its jurisdiction; and
WHEREAS, the City wishes to be a CCA pursuant to the JPA and has introduced the
Ordinance required by Public Utilities Code Section 366.2 in order to do so; and
WHEREAS, under Public Utilities Code section 366.2, customers have the right to opt-
out of the CCA program and continue to receive service from the incumbent utility.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Arroyo Grande:
SECTION 1. The City Council of Arroyo Grande requests the Board of Directors of
MBCPA approve the City of Arroyo Grande as a member of MBCPA.
Item 8.h. - Page 3
RESOLUTION NO.
PAGE 2
SECTION 2. The Mayor or City Manager is hereby authorized and directed to execute
the JPA on behalf of the City after the JPA is amended, which will establish the City's
membership in MBCPA.
SECTION 3. The joining of MBCPA is exempt from the requirements of the California
Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, as it is not
a "project" since this action involves organizational and administrative activities of
government that will not result in direct or indirect physical changes in the
environment. (14 Cal. Code Regs.§ 15378(b)(5).)Further, the ordinance is exempt from
CEQA as there is no possibility that the ordinance or its implementation would have
a significant negative effect on the environment. (14 Cal. Code Regs.§ 15061(b)(3)) . A
Notice of Exemption shall be filed as authorized by CEQA and the State CEQA
guidelines.
SECTION 4. This Resolution shall be effective immediately upon passage and adoption.
On motion of Council Member , seconded by Council Member ,
and on the following roll call vote to wit:
The foregoing Resolution was adopted this 13th day of August, 2019.
Item 8.h. - Page 4
RESOLUTION NO.
PAGE 3
_________________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
________________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
________________________________________
JAMES A. BERGMAN, CITY MANAGER
APPROVED AS TO FORM:
________________________________________
HEATHER K. WHITHAM, CITY ATTORNEY
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