BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1260


                                                                    Page  1





          Date of Hearing:   April 22, 2015


                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT


                              Brian Maienschein, Chair


          AB 1260  
          (Thurmond) - As Amended March 26, 2015


          SUBJECT:  Joint Exercise of Powers Act.


          SUMMARY:  Allows the University of California and the City of  
          Richmond, and any other public agency, to enter into a joint  
          powers agreement focusing on the development of a Berkeley  
          Global Campus.  Specifically, this bill:  


          1)Allows, notwithstanding any other law, the University of  
            California and the City of Richmond, and any other public  
            agency, to enter into a joint powers agreement (JPA) for the  
            purpose of collaboration on the development of a Berkeley  
            Global Campus at Richmond Bay, located within the City of  
            Richmond, to be a new research and action hub with a focus on  
            global issues, culture, and collaboration.



          2)Requires the agreement between the University of California  
            and the City of Richmond, and any other public agency pursuant  
            to 1), above, to state the purpose of the agreement or the  
            power to be exercised, and may include any of the following:











                                                                    AB 1260


                                                                    Page  2





             a)   A voluntary local-hire goal, to be based on the  
               University of California, San Francisco, local-hire model,  
               for all construction and infrastructure improvements,  
               taking into consideration local-hire practices within the  
               City of Richmond;



             b)   Development of strategies that assist all small  
               businesses, including, but not limited to, small businesses  
               with a high-level of participation by women, minorities,  
               and veterans, to respond more effectively to available  
               contract opportunities for the development of the proposed  
               Berkeley Global Campus at Richmond Bay;



             c)   A requirement for third-party developers to pay  
               prevailing wages for construction contracts and meet the  
               local-hire goals of the University of California, Berkeley,  
               on buildings that will be substantially occupied by the  
               University of California, Berkeley;



             d)   Development of best practices for proactive outreach and  
               marketing of procurement and employment opportunities for  
               the residents of the City of Richmond at the proposed  
               Berkeley Global Campus at Richmond Bay;



             e)   Development of strategies to work with community  
               organizations, small business development programs, and  
               workforce training programs to assist the residents of the  
               City of Richmond to respond effectively to opportunities at  
               University of California campuses and at the proposed  
               Berkeley Global Campus at Richmond Bay; and,









                                                                    AB 1260


                                                                    Page  3







             f)   Collaboration with the Department of Employment and  
               Training of the City of Richmond to access contact and  
               work-readiness information for qualified trades workers and  
               apprentices located within the City of Richmond.



          3)Provides that the Legislature finds and declares that a  
            special law is necessary and that a general law cannot be made  
            applicable within the meaning of Section 16 of Article IV of  
            the California Constitution because of the unique  
            circumstances of developing the Berkeley Global Campus at  
            Richmond Bay, located within the City of Richmond.



          EXISTING LAW allows, pursuant to the Joint Exercise of Powers  
          Act, two or more public agencies by agreement to jointly  
          exercise any power common to the contracting parties, as  
          specified, if authorized by their legislative or other governing  
          bodies.  


          FISCAL EFFECT:  This bill is keyed fiscal.


          COMMENTS:  


          1)Bill Summary.  This bill allows the University of California  
            and the City of Richmond, and any other public agency, to  
            enter into a JPA for the purpose of collaboration on the  
            development of a Berkeley Global Campus at Richmond Bay.  If a  
            JPA is formed, the bill requires the agreement to state the  
            purpose of the agreement or the power to be exercised, and  
            includes a number of issues that can be addressed in the  
            agreement.








                                                                    AB 1260


                                                                    Page  4







            This bill is author-sponsored.


          2)Author's Statement.  According to the author, "The intention  
            of this bill is to facilitate a partnership between the City  
            of Richmond and UC Berkeley in regards to Berkeley's Global  
            Campus.  The author's office is in the middle of ongoing  
            discussions with the UC, the City 


          of Richmond and AFSCME in order to flesh out the best approach.   
            The current version of the bill speaks to the unique situation  
            of the Global Campus in terms of the needs of the City and the  
            ability of the UC to partner with the City on infrastructure  
            and financing.  The bill is working toward providing an  
            efficient public financing mechanism to fund the shared,  
            critical infrastructure required for development of the  
            University of California at Berkeley Global Campus and the  
            complimentary City of Richmond South Shoreline Specific Plan  
            Area.  Common infrastructure constraints include, for example,  
            access to water and sanitary sewerage utilities.  These issues  
            can most effectively be overcome through a highly integrated  
            infrastructure financing plan and a public financing mechanism  
            that allows for the sharing of infrastructure costs.  There  
            are on-going discussions with the author's office, UC  
            Berkeley, the City of Richmond, and AFSCME on the direction of  
            the bill. The goal is to have every stakeholder at the table  
            and reach consensus where everyone can benefit from the  
            establishment of the global campus."
          3)Joint Exercise of Powers Act.  JPAs have existed in California  
            for nearly 100 years, and were originally created to allow  
            multiple local governments in a region to pool resources to  
            meet common needs.  The Act authorizes state and local  
            agencies to create and use a joint powers agreement, which is  
            a legal document that allows the contracting parties to  
            exercise powers that are common to all of the contracting  
            parties.  A joint powers agreement can be administered by one  








                                                                    AB 1260


                                                                    Page  5





            of the contracting agencies, or it can be carried out by a  
            new, separate public entity.  Joint powers agreements are an  
            attractive tool for local governments because they facilitate  
            more efficient service provision through collaboration, and  
            they allow local entities to issue bonds without voter  
            ratification.  Current law authorizes JPAs to jointly exercise  
            any power common to the contracting parties, if authorized by  
            their legislative or governing body.

          4)Policy Consideration.  State and local agencies are already  
            authorized to create and use a JPA, following the provisions  
            of the Joint Exercise of Powers Act.  In this case, UC  
            Berkeley and the City of Richmond could agree to form a JPA  
            and do so without statutory authority, calling into question  
            the need for the bill.


          5)Arguments in Support.  None on file.


          6)Arguments in Opposition.  None on file.


          7)Double-Referral.  This bill is double-referred to the Higher  
            Education Committee.


          REGISTERED SUPPORT / OPPOSITION:




          Support


          None on file











                                                                    AB 1260


                                                                    Page  6






          Opposition


          None on file




          Analysis Prepared by:Debbie Michel / L. GOV. / (916) 319-3958