FROM:
City Manager's Office
SUBJECT:
Title
Approve Amendment No. 4 to the San Bernardino Associated Governments Joint Powers Authority Agreement and approve the incremental increase in member dues to $100,327.
End
RECOMMENDATION:
Recommendation
1. Approve Amendment No. 4 to the Agreement for the Joint Exercise of Powers relative to the San Bernardino Associated Governments, now referred to as the San Bernardino Council of Governments (SBCOG), SANBAG JPA to amend language concerning the method by which member agency dues are assessed.
2. Increase membership dues by $43,334, for a total of $63,834 for Fiscal Year 2024/2025 and an additional increase of $36,493 for a total of $100,327 for Fiscal Year 2025/2026.
End
COUNCIL GOALS:
• Concentrate on Inter-governmental relations by working cooperatively with neighboring jurisdictions.
• Concentrate on Inter-governmental relations by establishing partnerships and positive working relationships with other public agencies providing services to residents and local businesses.
DISCUSSION:
The purpose of the San Bernardino Council of Governments (SBCOG) is to address important regional issues that affect its Member Agencies. Representatives from 24 cities and towns, including the City of Fontana, and the San Bernardino County Board of Supervisors have a seat on the SBCOG Board of Directors. SBCOG provides a forum to reduce duplication of effort and to share information. This collaboration helps strengthen regional advocacy and funding opportunities in the San Bernardino County.
The SBCOG is governed by a Joint Powers Authority (JPA) Agreement which specifies the particular method by which member agencies are to be assessed for membership dues. Since 2018, the COG has relied on the funds from the Property Assessed Clean Energy / Home Energy Renovation Opportunity program to supplement COG dues. Minimal funds and staff for SBCOG limits the agency’s ability to provide a broader set of services and programs for its member agencies.
Therefore, on July 5, 2023, SBCOG staff brought forth a Council of Governments (COG) work plan update to the SBCOG Board of Directors (Board). At a General Policy Committee meeting, staff was directed to establish an Ad Hoc Committee to discuss expanding the capacity of the COG and increasing the dues paid by the member agencies to pay for additional service offerings. Since August 2023, the COG Ad Hoc has met monthly, analyzing programs, services, and budgets of other similar organizations. Based on their findings, and the desire to expand COG services, the Ad Hoc Committee recommended increasing the budget from $658,000 and 1.3 staff to $1.5 million, 3 staff, and consultant support to the board. This much needed increase will be incremental over two years and will expand the SBCOG role and provide essential changes for sustainable growth.
To assess member fees, the existing JPA Agreement uses a formula of 50% population / 50% assessed valuation. This method is outdated and would be burdensome to many agencies. Staff provided three alternative scenarios to the Ad Hoc regarding the distribution of COG baseline costs across jurisdictions:
• 100% Population
• 100% Fund Sales and Property Tax Revenues Received
• 50% Population / 50% Fund Sales and Property Tax Revenues Received
The Ad Hoc compared the shares of the $1.5 million in annual COG dues that would be assessed based on the three methods listed above and recommended option 3, a 50% Population / 50% Fund Sales and Property Tax Revenues. (Attachment 2) The Ad Hoc Committee also recommended an increase based on the lesser of the Consumer Price Index or 2% annual adjustment to cover the regular increases in cost, be incorporated into the SBCOG budget planning process for Fiscal Year 2024/2025 and every year thereafter.
The existing JPA Agreement specifies the particular method by which member agencies are to be assessed for membership dues. In order to change the method and move forward with the Ad Hoc’s preferred method of assessing member agency dues, the JPA Agreement must be amended. In an effort to provide the Board of Directors flexibility in the future, proposed Amendment No. 4 (Attachment 1) removes the specific formula and instead requires Board-approved policy to be followed in assessing member agency dues.
On January 3, 2024, Board of Directors meeting, the Board approved both recommendations by the COG Ad Hoc Committee, establishing a new assessment method and increased dues to each agency and approving Amendment No. 4. Following the approval by all member agencies, the new dues will go into effect on July 1, 2024, at the start of Fiscal Year 2024/2025.
FISCAL IMPACT:
The fiscal impact associated with the approval of this item is $79,827 over a two-year period. If approved, appropriations in the General Fund will be requested during the budget process in Fiscal Year 2024/2025 and Fiscal Year 2025/2026.
MOTION:
Approve staff recommendation.