Title
Chief Administrative Office recommending the Board:
1) Approve and authorize the Chair to sign the Tahoe South Shore Transit Joint Powers Authority Agreement in order to improve the transit system on the south shore of Lake Tahoe; and
2) Conduct a site visit of points of interest within the Lake Tahoe Basin. (Only the City of South Lake Tahoe Manager and Mayor will be participating in the site visits. The other City of South Lake Tahoe Council Members will not be participating.)
FUNDING: N/A
Body
DISCUSSION / BACKGROUND
On February 13, 2024, the City of South Lake Tahoe adopted Resolution 2024-022, authorizing and directing the City Manager and City Attorney to enter negotiations with El Dorado County on a Joint Exercise of Powers Agreement to establish a Tahoe South Shore Transit Joint Powers Authority (JPA). On March 12, 2024, with Legistar file 24-0487, the El Dorado County Board of Supervisors authorized County staff to initiate negotiations with the City regarding the formation of a JPA. The general purpose of forming the JPA is to jointly implement transit services in the Lake Tahoe south shore area. On August 13, 2024, the City Council of South Lake Tahoe received an update on JPA formation discussions and terms of a potential JPA Agreement. The County Board of Supervisors received a similar update on August 27, 2024, with Legistar file 24-1514.
Since staff from both agencies were authorized to negotiate establishment of a JPA, DeeAnne Gillick with Sloan Sakai Young & Wong, LLP was mutually selected by County Counsel and the City Attorney to assist in creating the JPA formation documents in compliance with California Government Code. County and City staff, with the assistance of Ms. Gillick, have met several times to discuss JPA formation requirements and finalize the terms of the attached JPA Agreement. The agreement includes detailed terms that should be considered, however, some highlights to address questions previously received from the City Council and Board of Supervisors are discussed below.
JPA Board Membership
The agreement establishes a Board of Directors consisting of three directors. Two directors, and one alternate director that are current members of the City Council and one director that is a current member of the County Board of Supervisors representing District V and an alternate that is a current member of the County Board of Supervisors.
The agreement also establishes two non-voting ex officio members: one member appointed by the South Shore Transportation Management Association (SSTMA) and one member appointed by the Tahoe Transportation District (TTD). Both SSTMA and TTD are current transit operators within the Tahoe portion of El Dorado County. These positions would be filled at the discretion of each appointing agency.
JPA Authority to Operate Within and Outside of Jurisdictional Territory
The intent of the JPA agreement is to provide the JPA with broad powers necessary to improve the transit system on the south shore, which may include operation of transit services outside of the JPA jurisdictional territory. The agreement states that “the purpose of this Agreement is to provide for the planning, programming, financing, acquisition, ownership, and operation of public transit services and facilities to serve the Lake Tahoe south shore area” and “the intent of the Authority is to benefit the Lake Tahoe south shore area, which may include transit service within and outside the territory of the City and/or County as permissible by California law.”
As a general rule, a JPA has the authority to exercise any of the common powers of its member entities, which includes operating transportation services. Article XI of the California Constitution specifies that a city “may furnish those services outside its boundaries.”
The agreement language is included to ensure that, if the JPA Board seeks to operate transit services outside of the jurisdictional boundaries, that option is available. There are several areas throughout the agreement where the JPA authority is written broadly to cover potential actions the JPA Board may take in the future to implement its purpose.
JPA Managing Agency and Budget Contributions
The JPA will incur some initial startup costs and ongoing administrative costs associated with retaining legal counsel, securing indemnification insurance and financial officer bonding, and staffing (Executive Director, Treasurer, and Secretary). A cost sharing agreement for these startup costs would be discussed between City and County staff then proposed to the JPA Board for consideration as one of the initial JPA Board actions.
Once initial setup is underway, the JPA Board will need to consider an annual budget. The agreement allows for the JPA Board to enter into agreements with the City, as Managing Agency, for payment or reimbursement for performance of these functions. These costs may be covered by other JPA funding sources or require continued cost sharing by the City and County until an additional funding source is identified.
The JPA Board is expected to begin meeting in January 2025 when Directors will be seated and officers appointed.
ALTERNATIVES
The Board could choose not to approve the JPA formation, which would reduce the opportunity for greater transit services in the unincorporated area that may be available through participation in the JPA.
PRIOR BOARD ACTION
Legistar file 24-0487 - March 12, 2024 - Board authorized staff to initiate negotiations with the City of South Lake Tahoe regarding the formation of a Tahoe South Shore Transit JPA
Legistar file 24-1514 - August 27, 2024 - Board received update on JPA formation
OTHER DEPARTMENT / AGENCY INVOLVEMENT
City of South Lake Tahoe, County Counsel
FINANCIAL IMPACT
As noted above, the JPA Board will establish initial startup costs, an annual budget, and cost sharing needs. Any financial contributions from the County will require Board approval.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Obtain the Chair’s signature on the JPA Agreement and return to the Chief Administrative Office.
STRATEGIC PLAN COMPONENT
N/A
CONTACT
Sue Hennike, Assistant Chief Administrative Officer