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File Number: 16-590 <br />The purpose of this report is to recommend that the City Council approve the City of San <br />Leandro’s participation in the East Bay Community Energy JPA and to conduct the first <br />reading of the CCA ordinance that authorizes implementation of the CCA program in San <br />Leandro. The JPA will become effective upon approval of at least three jurisdictions, including <br />the County. County staff has requested each of the cities that are considering joining the JPA <br />to schedule the item for consideration by their respective City Councils by the end of <br />November 2016. <br />Description of East Bay Community Energy Authority (EBCE) <br />EBCE would serve electric customers in the unincorporated areas of Alameda County, as well <br />as electric customers in each city (except the City of Alameda, which owns and operates its <br />own municipal electric utility) where the governing body elects to participate. Customers in <br />each participating city will be automatically enrolled in EBCE, unless they opt to continue to <br />receive their energy supply from PG&E. All electric customers will receive written information <br />about the EBCE program and be provided at least three opportunities to opt out of EBCE and <br />continue to receive their energy supply from PG&E. The opt-out rate for recently-established <br />CCA programs has varied from two to five percent of customers. <br />EBCE would be governed by a Board of Directors, comprised of one elected representative of <br />each city and county participating in the program. Final decisions regarding the specific level <br />of renewable energy to be procured, prioritization of local renewable energy and job <br />development, and other governance issues will be determined by the Board of Directors, as <br />specified in the EBCE Joint Powers Agreement. <br />EBCE is designed much like similar CCA programs, including Marin Clean Energy and <br />Sonoma Clean Power. However, several provisions were added that are unique to East Bay <br />Community Energy, including requirements to ease the transition for affected energy workers, <br />not to interfere with unionization of employees, and to designate the head of a proposed <br />Community Advisory Committee as a non-voting member of EBCE’s Board of Directors. <br />The EBCE Joint Powers Agreement (Agreement) was prepared by the Office of the Alameda <br />County Counsel and was extensively reviewed by the City Attorney’s Office in each city and <br />by the membership of the Steering Committee. As noted above, the Agreement is based on <br />similar agreements for CCA programs in the Bay Area, and creates a legal and financial <br />separation of the assets and liabilities of EBCE from those of its member agencies. The JPA <br />was formally created by the Alameda County Board of Supervisors (BOS) on October 4, 2016. <br />The BOS is expected to conduct its second reading and take final steps to formalize the JPA <br />following consideration by the cities in either December 2016 or January 2017. <br />The Agreement includes rules, regulations, and principles for the formation and operation of <br />the EBCE program, including the roles and responsibilities of each member agency. The <br />following is a summary of the key provisions in the JPA: <br />·Separate Legal Entity. The Agreement establishes the East Bay Community Energy <br />Authority as a separate legal entity; the member cities assume no obligations (except in <br />narrow circumstances provided for in the Agreement) for the debts and liabilities of the <br />Authority. <br />Page 3 City of San Leandro Printed on 11/16/2016