HomeMy WebLinkAboutItem 5d. Approve An Updated MOU for Sharing Central Coast Community Energy Board Seat Item 5d
Department: Administration
Cost Center: 1005
For Agenda of: 11/15/2022
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Chris Read, Sustainability Manager
SUBJECT: APPROVE AN UPDATED MEMORANDUM OF UNDERSTANDING FOR
SHARING CENTRAL COAST COMMUNITY ENERGY BOARD SEATS
RECOMMENDATION
1. Approve an amendment to the Agreement and Memorandum of Understanding with
the City of Morro Bay for sharing Policy Board, Operations Board, and Community
Advisory Committee seats on Central Coast Community Energy; and
2. Authorize the City Manager to execute the Amendment to the Agreement and
Memorandum of Understanding in a form subject to approval of the City Attorney’s
Office.
POLICY CONTEXT
1. Ordinance 1656 (2018 Series) approved the City’s participation in Central Coast
Community Energy (CCCE; originally named Monterey Bay Community Power or
MBCP).
2. 2022 Legislative Action Platform Energy Section plank #6 identifies Council’s CCCE
Policy Board and Operations Board positions.
3. The existing Memorandum of Understanding (MOU) requires Council action to make
any amendments to it.
DISCUSSION
Background
In November of 2018, the City of Morro Bay and the City of San Luis Obispo adopted
ordinances and resolutions committing both cities to join Monterey Bay Community Power
MBCP). On December 5, the MBCP Policy Board unanimously voted to approve the two
cities’ membership. In September of 2020, MBCP officially changed its name to Central
Coast Community Energy (CCCE).
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Item 5d
CCCE is governed by two Boards: 1) a Policy Board that meets quarterly and is comprised
of elected officials, and 2) an Operations Board that meets at least eight times per year
and is comprised of City Managers and County Administrative Officers. An Executive
Committee, which is comprised of both Policy and Operations Board members, is
delegated some authority under the Joint Use Agreement to address matters that are a
combination of policy implementation and operations. CCCE also has a Community
Advisory Council comprised of residents and business owners.
In CCCE, counties and jurisdictions with 50,000 or more residents hold permanent Board
seats. Additional Board seats are shared by multiple jurisdictions based on geography.
As part of membership in 2019, the City of San Luis Obispo and the Ci ty of Morro Bay
agreed to share a seat on each of the boards and to negotiate a formal agreement for
sharing the Policy Board and Operations Board seat. In December of 2018, staff from the
two cities drafted and negotiated an initial draft MOU.
In 2019, additional cities and counties joined CCCE. Due to population and geographic
proximity, the City of Paso Robles was added to the seat currently shared by San Luis
Obispo and Morro Bay. Because of the addition of Paso Robles, the name change from
MBCP to CCCE, and a mutual desire by all three cities for the City of San Luis Obispo to
serve the 2021-22 term, the original 2019 MOU was updated and executed in December
of 2020.
2022 CCCE MOU Update (Attachment A)
In 2022, the City of Atascadero joined CCCE and a new Policy Board and Operations
seat was created for the City of Paso Robles and City of Atascadero to share. Staff from
the City of San Luis Obispo and the City of Morro Bay have drafted and negotiated a third
iteration of the CCCE MOU to formalize two changes: (1) the removal of the City of Paso
Robles from the formal agreement and (2) the extension of the City of San Luis Obispo’s
current two-year term on the Policy Board by one additional year to serve on the Board
through December 2023. City of Paso Robles staff have committed to providing a letter
expressing their intent to be removed from the current MOU. Attachment A includes a
placeholder for that letter, which is expected to be received after November 15, 2022.
Previous Council or Advisory Body Action
November 2018 – City of San Luis Obispo joins 3CE and commits to sharing a Policy
Board and Operations Board seat with the City of Morro Bay.
December 2020 – Council approves amendment to the City’s MOU with Morro Bay to
include Paso Robles.
Public Engagement
Council and staff received public and written testimony in support of joining CCCE and
sharing Board seats with the City of Morro Bay at the November 13, 2018, City Council
meeting. Throughout the 2019 and 2020 Climate Action Plan Update, community
members expressed support for CCCE participation.
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Item 5d
CONCURRENCE
The City of Morro Bay and City of Paso Robles staff concurs with this report. The City of
Paso Robles submitted a letter to the City sharing its agreement to be removed from the
current MOU and the City of Morro Bay City Council is voting to approve the updated
Memorandum of Understanding at a regularly scheduled meeting in November of 2022.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Sec. 15378.
FISCAL IMPACT
Budgeted: Yes Budget Year: 2022-23
Funding Identified: Yes
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $ $ $ $
The only fiscal impact to participating on CCCE’s Boards come from staff time and
occasional travel to Monterey County. These impacts are accounted for in City
Administration’s current appropriated operating budget.
ALTERNATIVES
The City Council could request amendments to the MOU. Should Council request
amendments, they would be provided to the City of Morro Bay for consideration and
brought back to Council at a future date.
ATTACHMENTS
A - Updated CCCE MOU with Morro Bay
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Page 1
AMENDMENT TO AGREEMENT
THIS AMENDMENT TO AGREEMENT is made and entered in the City of San Luis
Obispo on _______________________________________, by and between the CITY OF SAN
LUIS OBISPO, a municipal corporation, hereinafter referred to as San Luis Obispo, the CITY OF
MORRO BAY, a municipal corporation, hereinafter referred to as Morro Bay.
WITNESSETH:
WHEREAS, on December 18, 2020, San Luis Obispo, Morro Bay, and Paso Robles
entered into an agreement to share a Central Coast Community Energy Policy Board and
Operations Board seat, (the “Agreement”); and
WHEREAS, the City of Atascadero joined Central Coast Community Energy in 2022 and
will share a seat with the City of Paso Robles and therefore no longer shares a seat with Morro
Bay and San Luis Obispo; and
WHEREAS, the previous agreement for a shared seat is void by the approval of the Joint
Powers Agreement whereby Paso Robles and Atascadero share a seat; and
WHEREAS, San Luis Obispo, Morro Bay, and Paso Robles, desire to amend the
Agreement to remove Paso Robles from the Agreement and to extend San Luis Obispo’s term on
the Policy Board by one year, as set forth in Exhibit B attached hereto.
NOW THEREFORE, in consideration of their mutual promises, obligations and
covenants hereinafter contained, the parties hereto agree as follows:
1. Paso Robles has indicated its intent to rescind from the Agreement as reflected in the
letter attached as Exhibit A; and
2. The Agreement is hereby amended to reflect Paso Robles’ recission from the
Agreement as set forth in Exhibit B attached hereto, which reflects an amended and
restated version of the Agreement and limits the parties to Morro Bay and San Luis
Obispo.
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Central Coast Community Energy Participation Memorandum of Understanding
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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed
the day and year first written above.
CITY OF SAN LUIS OBISPO
___________________________________
Derek Johnson, City Manager, City of San Luis Obispo
CITY OF MORRO BAY
_____________________________________
Scott Collins, City Manager, City of Morro Bay
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Central Coast Community Energy Participation Memorandum of Understanding
Page 3
EXHIBIT A
PASO ROBLES’ LETTER EXPRESSING INTENT TO RESCIND FROM THE
MEMORANDUM OF UNDERSTANDING
[to be provided by the City of Paso Robles after November 15, 2022]
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Central Coast Community Energy Participation Memorandum of Understanding
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EXHIBIT B
MEMORANDUM OF UNDERSTANDING BETWEEN
CITY OF SAN LUIS OBISPO 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 and the City of Morro Bay, a California municipal
corporation, hereinafter referred to as MORRO BAY (SAN LUIS OBISPO and MORRO BAY
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 (CCCE). On December 5, 2018, SAN LUIS
OBISPO and MORRO BAY became official members of CCCE.
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.
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CCCE 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 and MORRO BAY are smaller than 50,000 each, the two 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. On December 8, 2020, SAN LUIS OBISPO and MORRO BAY City Councils
voted unanimously to rescind and replace the original MOU with a new MOU to include the City
of El Paso de Robles (“PASO ROBLES”) and other minor updates. That MOU was executed by
SAN LUIS OBISPO, MORRO BAY, and PASO ROBLES in December of 2020. That MOU is
hereby replaced by this MOU to remove PASO ROBLES from the agreement and extend SAN
LUIS OBISPO’s term on the Policy Board by one year, as described below.
B. PURPOSE
The purpose of this Memorandum of Understanding is to identify a clear framework between SAN
LUIS OBISPO and MORRO BAY to share governance seats on CCCE’s Policy Board, Operations
Board, and Community Advisory Council. This MOU rescinds and replaces the previous
December 2020 MOU between SAN LUIS OBISPO, MORRO BAY, and PASO ROBLES.
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 Memorandum of Understanding 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 (with exception of the first two, two-year terms, which shall be
held by SAN LUIS OBISPO). SAN LUIS OBISPO provided the initial representative and
served the first two, two-year terms from December 2018 to December 2022. Both parties
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have agreed to extend SAN LUIS OBISPO’s term to serve as the Policy Board
representative through December 2023, and thereafter shall transition every two years
between MORRO BAY and SAN LUIS OBISPO.
a. The city with the currently serving Policy Board representative shall distribute via
email to both 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 and Morro Bay. 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 and MORRO BAY, for purposes of the CCCE, 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;
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d. Stimulating and sustaining the local economy b y 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.
5. If a party fails to attend or otherwise comply with the CCCE 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
2022 through December 2024.
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 2022, MORRO BAY 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 Role:
Derek Johnson, City Manager
Bob Hill, City Lead
MORRO BAY:
Name Role:
Scott Collins, City Manager, City Lead
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F. COST OBLIGATION
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.
G. COMMENCEMENT/EXPIRATION DATE
This Memorandum of Understanding is executed as of the date of last signature and is effective
until the CCCE governance model changes, or SAN LUIS OBISPO or MORRO BAY withdraw
from CCCE, or either party fails in good faith to resolve with the other party a conflict over a
substantial issue concerning the CCCE or the parties’ performance of this MOU. As to SAN LUIS
OBISPO and MORRO BAY, this MOU is effective as of December, 2018, in so far as this MOU
replaces and rescinds a prior MOU similar in substance to 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 CCCE 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 none of the parties to this Memorandum of Understanding is the agent of any
of the other parties and none of the parties is liable for the wrongful acts, omissions or negligence
of any other party to this MOU. 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.
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I. 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 SAN LUIS OBISPO
Date: ________________ ______________________________________
Derek Johnson, City Manager, City of San Luis Obispo
FOR MORRO BAY
Date: ________________ ______________________________________
Scott Collins, City Manager, City of Morro Bay
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