HomeMy WebLinkAboutItem 3a - Appointing a Los Angeles Community Choice Energy Board MemberResolution 7197 – Appointing an LACCE Board Member January 19, 2018
Page 1 of 3
DATE: January 16, 2018
TO: Honorable Mayor and City Council
FROM: Tom Tait, Public Works Services Director
By: Carmen Masud, Senior Management Analyst
SUBJECT: RESOLUTION NO. 7197 APPOINTING A BOARD MEMBER AND TWO
ALTERNATES FOR THE LOS ANGELES COMMUNITY CHOICE
ENERGY (“LACCE”) JOINT POWERS AUTHORITY
Recommendation: Adopt SUMMARY
On January 16, 2018, the City Council introduced Ordinance No. 2353, approving the
Joint Powers Agreement for Los Angeles Community Choice Energy (“LACCE”)
Authority and authorizing the implementation of a community choice aggregation program. A board member and up to two alternates must be appointed by the City
Council for the LACCE Authority.
It is recommended that the City Council adopt Resolution No. 7197 appointing a board
member and up to two alternates for the LACCE Authority.
BACKGROUND
The California legislature passed AB 117 in 2002 allowing all cities, counties, or groups
of cities and counties to provide an electric power supply source to customers within their jurisdiction that are currently served by investor owned utility companies like
Southern California Edison (“SCE”).
Through a Community Choice Aggregation (“CCA”) program, a City could purchase
electricity from power producers and sell it to their residents and businesses at a lower cost than an investor owned utility company. CCA programs do not own energy
delivery infrastructure. A CCA organization provides power supply. The incumbent utility
like SCE delivers the purchased power through its transmission and distribution assets
and continues to handle billing, metering, and customer service activities.
Resolution 7197 – Appointing an LACCE Board Member January 19, 2018
Page 2 of 3
The LACCE Authority JPA allows cities interested in a CCA to join LACCE. On January 16, 2018, the City Council is expected to adopt Ordinance No. 2353, approving the Joint
Powers Agreement for the LACCE Authority and authorizing the implementation of a
community choice aggregation program. The adoption is listed under a separate
agenda item on this agenda. Presuming the Ordinance is adopted, a board member and up to two alternates must be appointed by the City Council for the LACCE Authority.
DISCUSSION
The governing body of LACCE shall be a Board of Directors (“Board”) consisting of one director from each city in LACCE. Per the Los Angeles Community Choice Energy Authority Joint Powers Agreement, the City Council shall appoint and designate in
writing one regular Director who shall be authorized to act for and on behalf of the City
on matters within the powers of the Authority. The City Council shall also appoint and
designate in writing up to two alternate Directors who may vote on matters when the regular Director is absent from a Board meeting. The person appointed and designated as the regular Director shall be an elected official. The person or persons appointed
and designated as alternate Directors may be an elected official, an appointed member
of an advisory body of the City, a staff member, or a member of the public that has
demonstrated knowledge in energy related matters through significant experience as described in Section 4.2.1 (a) of the Joint Powers Agreement (page 8 of Attachment “A” of Resolution 7197).
The general purpose of the Board is to provide structure for administrative and fiscal
oversight, retain an Executive Director to oversee day to day operations, retain legal counsel, identify and pursue funding sources, set policy, maximize the utilization of available resources, and oversee all committee activities. Several Specific
responsibilities of the Board will include identifying needs and requirements, formulating
and adopting the budget, and developing and implementing a financing or funding plan
for ongoing authority operations. Board members will ensure that the interests and concerns of each city and agency are represented and that operational, technical, and financial issues are thoroughly researched and analyzed. The Board will also be
responsible for setting of retail rates for power sold by the Authority and addressing any
concerns of consumers and customers.
All meetings of the Board shall be conducted in accordance with provisions of the Ralph M. Brown Act. On all matters requiring a vote, each Director will have one vote. Each
regular and alternate Director shall serve for as long as the City Council would like them
to serve. If at any time a vacancy occurs on the board, the affected Party shall appoint
to fill the position of the previous Director within 90 days of the date that such position becomes vacant.
Resolution 7197 – Appointing an LACCE Board Member January 19, 2018
Page 3 of 3
The next LACCE Board meeting will be held at the Metropolitan Water District headquarters on Alameda Street downtown on January 17 at 2 PM. Future Board
meetings will be on the first Thursday of each month at 1 PM. It is recommended that
the City Council choose a Director that is able to serve on the LACCE Board for multiple
years for consistency reasons. The alternate Board member should be the Public Works Services Director; if a second alternate is desired, a viable option would be the City Manager.
ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA.
FISCAL IMPACT The County of Los Angeles has provided $10 million to fund the initial costs of
establishing and implementing LACCE. There is no fiscal impact for appointing a Board
member and alternates. Board members don’t receive a stipend for attending regular
Board meetings. There is a possibility that a Board member can receive a small stipend to cover travel and other expenses for attending an outside meeting where that Board member would be speaking or representing LACCE.
RECOMMENDATION
It is recommended that the City Council adopt Resolution No. 7197 appointing a board member and two alternates for the Los Angeles Community Choice Energy (“LACCE”)
Joint Powers Authority.
Attachment: Resolution 7197