Report to Mayor and City Council
Tuesday, October 02, 2018
Consent
SUBJECT:
Title
DISSOLUTION OF THE SOUTHERN CALIFORNIA CITIES CONSORTIUM AND TERMINATION OF THE JOINT POWERS AGREEMENT (CITY COUNCIL)
Body
I. SUMMARY
On February 20, 2018, the Mayor appointed Councilmember Lula Davis-Holmes as the primary delegate and Mayor Pro Tem Jawane Hilton as the alternate to serve on the Board of Directors of the Southern California Cities Consortium (SCCC). The primary purpose of the appointment was to dissolve the Consortium and terminate the Joint Powers Agreement (JPA).
On August 27, 2018, a special meeting of the Board of Directors of the SCCC was held in the Culver City Council Chambers. The Board voted unanimously to:
1. Select Director Sahli-Wells as Chair and Director Valentine as Vice Chair of the Consortium.
2. Designate the Chief Financial Officer of the City of Culver City as the Treasurer for the Consortium.
3. Adopt Resolution No. 2018-R001, authorizing the Consortium’s Treasurer to withdraw and evenly distribute the remaining consortium assets of $31,832.21 among the nine member cities.
4. Adopt Resolution No. 2018-R002, to dissolve the Consortium and terminate the JPA.
The Board of Directors meeting minutes from August 27, 2018 (Exhibit No. 1), Resolution No. 2018-R001 regarding the disbursement of funds (Exhibit No. 2), and Resolution No. 2018-R002 regarding dissolving the Consortium and terminating the JPA (Exhibit No. 3) are attached for reference.
II. RECOMMENDATION
Recommendation
1. RECEIVE and FILE.
Body
III. ALTERNATIVES
TAKE another action the City Council deems appropriate.
IV. BACKGROUND
The City Council of the City of Carson voted to join the SCCC JPA in 1995 when the City Council adopted Resolution No. 95-019 (Exhibit No. 4), Resolution No. 95-031 (Exhibit No. 5), and approved the Joint Powers Authority (JPA) Agreement (Exhibit No. 6).
The purpose of the JPA was to provide an additional means for the member cities to improve the quality and reduce the costs of providing municipal services, including electrical, gas, and water services. The intent was to combine the bargaining and buying power of member cities in all areas of purchasing, monitoring, and promoting legislative actions related to the purpose of the authority.
The member cities of the SCCC JPA include Carson, Culver City, El Segundo, Gardena, Hawthorne, Lawndale, Lomita, Redondo Beach, and West Hollywood. The SCCC JPA has been inactive for many years. The last meeting of the SCCC JPA was over ten years ago and there is currently no City staff with institutional knowledge of why the SCCC JPA stopped meeting. The lack of interest in the SCCC JPA could be related to the energy deregulation efforts by the State in late 1990’s. There are currently other avenues available to the cities statewide to lower electrical and gas costs, including the formation of community choice aggregation authorities. Carson joined Los Angeles Community Choice Energy (LACCE) (now referred to as “Clean Power Alliance”), which was formed by Los Angeles County as a community choice aggregation authority.
The SCCC JPA was terminated on August 27, 2018 unanimously by the Directors present representing the cities of Carson, Culver City, El Segundo, Gardena, Hawthorne, Lomita, and West Hollywood.
V. FISCAL IMPACT
The SCCC JPA bank account has a balance of $31,832.21. Per Resolution No. 2018-R001, the Consortium’s Treasurer will withdraw and evenly distribute among the nine member cities the remaining consortium assets.
The funds will be deposited into the City’s Load Shed Revenue account.
VI. EXHIBITS
1. Board of Directors Meeting Minutes from August 27, 2018. (Pg. 4)
2. Resolution No. 2018-R001- Distribution of Assets. (Pgs. 5-6)
3. Resolution No. 2018-R002- Dissolving the Consortium and Terminating the JPA. (Pgs. 7-8)
4. Resolution No. 95-019. (Pgs. 9-10)
5. Resolution No. 95-031. (Pgs. 11-12)
6. Joint Powers Authority Agreement of the Southern California Cities Consortium. (Pgs. 13-30)
1.
Prepared by: Reata Kulcsar, Civil Engineering Assistant