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. 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