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Home My WebLink About12-18-2020 CCCE MOU with Morro Bay and Paso RoblesUS POSTAGE $01.209 rid'3i-�.edkS Mailed From 93442 01111 /20?1 032A 0061813812 of Morro Bay 5 Harbor Street rro Bay, CA 93442 • C/o Victoria Tonikian tot 71rz, lID 015 9 NVr f. 00 MEMORANDUM OF UNDERSTANDING BETWEEN CITY OF SAN LUIS OBISPO, CITY OF EL PASO DE ROBLES, AND CITY OF MORRO BAY REGARDING PARTICIPATION WITH CENTRAL COAST COMMUNITY ENERGY This MEMORANDUM OF UNDERSTANDING (MOU) is hereby made and entered into by and between the City of San Luis Obispo, a California municipal corporation and Charter City, hereinafter referred to as SAN LUIS OBISPO, the City of Morro Bay, a California municipal corporation, hereinafter referred to as MORRO BAY, and the City of El Paso de Robles, a California municipal corporation hereinafter referred to as PASO ROBLES (SAN LUIS OBISPO, MORRO BAY, and PASO ROBLES hereinafter individually referred to as "party" and hereinafter collectively referred to as the "parties"). A. INTRODUCTION In November 2018, SAN LUIS OBISPO and MORRO BAY jointly pursued community choice energy programs for the purpose of providing choice in the electricity market, reducing greenhouse gas emissions, proving potential rate savings, supporting energy efficiency, promoting regional collaboration, and contributing to economic development. The two cities pursued participating in a community choice energy program by joining Monterey Bay Community Power, which has since changed its name to Central Coast Community Energy (3CE). On December 5, 2018, SAN LUIS OBISPO and MORRO BAY became official members of 3CE. PASO ROBLES joined CCCE in 2019 and will begin receiving service on January 1, 2021. As outlined in the CCCE Joint Powers Agreement, the agency is governed by two decision making bodies and one advisory body: • The Policy Board is comprised of elected officials and meets quarterly to make high level policy decisions. • The Operations Board is comprised of City Managers or their designees and meets approximately eight times per year to make operational decisions. ■ The Community Advisory Council is comprised of community members and serves in an advisory role to the Policy Board and Operations Board. 3CE is a large agency and to ensure manageable meetings, smaller jurisdictions share seats on the Policy Board and Operations Board. Jurisdictions with 50,000 or more residents have permanent seats, while smaller jurisdictions share seats based on geographic proximity. Since SAN LUIS OBISPO, PASO ROBLES, and MORRO BAY are smaller than 50,000 each, the three cities will share a Policy Board and Operations Board seat. On November 13, 2018, SAN LUIS OBISPO and MORRO BAY City Councils voted unanimously to direct staff to negotiate a Memorandum of Understanding to provide a collaborative and fair strategy for CCCE representation and to return to their respective Councils for final approval. The MOU was executed by SAN LUIS OBISPO and MORRO BAY in December of 2018. That MOU is hereby replaced by this MOU to include PASO ROBLES and provide minor updates, as described below. B. PURPOSE The purpose of this Memorandum of Understanding is to identify a clear framework between SAN LUIS OBISPO, MORRO BAY, and PASO ROBLES to share governance seats on 3CE's Policy Board, Operations Board, and Community Advisory Council. This MOU rescinds and replaces the previous MOU between SAN LUIS OBISPO and MORRO BAY. It should also be noted that community collaboration and regionalism was a key value of the effort to create a local community choice energy program. This MOU seeks to encourage further regional collaboration. C. SHARED SEATS 1. Policy Board - The Policy Board representative shall serve for a term of two years and shall rotate between cities. SAN LUIS OBISPO shall provide the initial representative and will serve from December 2018 to December 2022 and thereafter shall transition every two years between MORRO BAY, PASO ROBLES, and SAN LUIS OBISPO. a. The City with the currently serving Policy Board representative shall distribute via email to all three City Councils and City Managers the meeting minutes and any additional narrative deemed necessary after each Policy Board meeting to stay informed of policy, business or other related matters. b. The Policy Board Director alternative shall be identified by the City currently holding the seat. 2. Operations Board - The Operations Board representative shall serve for a term of two years and may be one of two options: a. The City Manager for the City of the Policy Board representative; or b. A director or deputy -director level staff member as determined by the City Manager of the Policy Board representative. 3. Community Advisory Council — There shall be one Community Advisory Council member who shall serve a two-year term and be selected by the current Policy Board Member and their alternative. The pool of Community Advisory Committee applicants shall include all registered voters residing in the cities of SAN LUIS OBISPO, MORRO BAY, and PASO ROBLES. The City currently providing the Policy Board representative shall conduct the Community Advisory Council selection process. The Community Advisory Council member does not need to be from the same city as the Policy Board member and the parties agree that the seat should rotate informally among the three cities. 4. In all cases, the elected officials, staff, or public representing the joint interests of SAN LUIS OBISPO, PASO ROBLES, and MORRO BAY, for purposes of the 3CE, shall consider the program purposes outlined in the Central Coast Community Energy Joint Exercise of Powers Agreement: a. Reducing greenhouse gas emissions; b. Providing electric power to customers at a competitive cost; c. Carrying our programs to increase energy efficiency; d. Stimulating and sustaining the local economy by developing local jobs in renewable energy and energy efficiency; and e. Promoting long-term rate stability and energy security and reliability for residents through local control of electric generation resources. If a party fails to attend or otherwise comply with the 3CE JPA and bylaws, and if the seat becomes vacated because of such conduct, the next party shall serve in that seat. D.PROCESS SAN LUIS OBISPO City Council will appoint its respective Board Members for the two-year term by February 2019. Terms shall run for two -years starting in December and concluding in November of even - numbered years. Based on mutual agreement of the parties, SAN LUIS OBISPO will also appoint respective Board Members for the two-year term running from January 2021 through December 2022. Future term appointees shall be made by alternating City Councils in November of the year that the term concludes (e.g., SAN LUIS OBISPO in 2020, MORRO BAY in 2022, PASO ROBLES in 2024). Thereafter, the rotation shall continue in two-year periods until this MOU is amended. E. PRINCIPAL CONTACTS The principal contacts for this MOU are: SAN LUIS OBISPO: Name Derek Johnson, Bob Hill, MORRO BAY: Name Scott Collins, PASO ROBLES: Name �49 Thomas Frutchey, F. COST OBLIGATION Role: City Manager City Lead Role: City Manager, City Lead Role: City Manager, City Lead Each party to this Memorandum of Understanding shall be financially responsible for absorbing costs incurred for their own participation on the Policy Board, Operations Board, and Community Advisory Council. �1VIMENCEMENVEXPIRATION DATE This Memorandum of Understanding is executed as of the date of last signature and is effective until the 3CE governance model changes,, or SAN LUIS OBISPO, PASO ROBLES, or MORRO BAY withdraw from 3CE, or either party fails in good faith to resolve with the other party a conflict over a substantial issue concerning the 3CE or the parties' performance of this MOU. Prior to such termination, the party desiring to terminate this MOU shall provide the non -terminating party with written notice of its desire to terminate and the reasons therefore. Both parties agree to engage in a meet and confer process, and, in the case of termination based on a conflict over a substantial issue concerning the 3CE or the parties' performance of this MOU, the parties shall engage with one another in good faith to resolve the conflict. If a conflict still exists after such good faith negotiations, this MOU shall terminate upon thirty (30) days final written notice. H. LIABILITIES It is understood that neither party to this Memorandum of Understanding is the agent of the other and neither is liable for the wrongful acts, omissions or negligence of the other. Each party shall be responsible for its wrongful or negligent acts or omissions and those of its officials, officers, employees, and agents, howsoever caused, to the extent allowed by law, and shall be responsible for their own Commercial General Liability, Auto, Worker's Compensation and Errors and Omissions insurance and adherence to their respective City's policies. Each party to this Memorandum of Understanding agrees to indemnify, defend and hold the other, and their officials, officers, employees, and agents, against any liability, claim, personal injury, including death, or property damage caused by that party's negligence or willful misconduct in their performance under this Memorandum of Understanding. L NO ASSIGNMENT The rights and obligations of the parties to this Memorandum of Understanding may not be assigned or delegated. J. AMENDMENT This Memorandum of Understanding may not be amended or modified in any manner whatsoever except by written agreement between the parties hereto. IN WITNESS WHEREOF, the parties hereto have executed this agreement as of the last written date below. FOR Mc)fgis Bp*V Date: _ LY / F19i) Nam ity anager — City of Mt-99,0 8^y FOR GAN UA 15 OBtSPc> Date: FOR PASO ROBLES Date: (V-0 - W r _ Nay , tty tv anager - City of . SAN LkAtS oat ri-�"5w Name, City Manager - City of Paso Robles