Joint Powers Authorities

“In the Direct JPA model, each member delegates to the JPA a function that each member has the legal authority to provide. This shared approach results in cost savings and better efficiency on behalf of taxpayers.” Response: The City of San Pablo agrees with this finding.

“The Circular JPAs with a single controlling entity, such as a city council, have the potential to avoid legal debt limits and provide limited disclosures to taxpayer.” Response: The City of San Pablo disagrees with this finding. A Joint Powers Authority (JPA) is a separate legal public entity as defined by the Government Code. As such, JPAs have the ability to incur their own debt separate from the municipality. The “single controlling entity”, even if made up of the same members as a City Council, still serves in a separate legal role. All meetings of JPAs are publicly noticed and comply with the Brown Act, and disclosures and audits of JPAs are made in accordance with state law.

“In Contra Costa County, there are 12 Circular JPAs created by cities with RDAs that no longer exist. These JPAs may no longer be valid because each is a member of another Financial JPA which may take on new debt without the prohibition (Gov. Codes Sections 6505 3416/34170 et seq,) placed on Successor Agencies.” 13831 San Pablo Avenue, Building 1 ● San Pablo, CA 94806 Main: 510-215-3000 ● Fax: 510-215-3011 www.SanPabloCA.gov P age | 2 Response: The City of San Pablo disagrees with this finding. While the Dissolution Law voided most agreements between former redevelopment agencies and their host cities, the Dissolution Law preserves the existence of joint powers authorities whose members included a former redevelopment agency. See Health & Safety Code section 34178(b). The City also does not know the structure of each agreement referred to in this report and therefore cannot provide an opinion on their validity.

“Cities that have created the 12 Financial JPAs do not provide JPA-specific financial information in their budget document. As a result, the public may have difficulty evaluating JPA’s financial performance.” Response: The City of San Pablo disagrees with this finding. The City provides financial information on the San Pablo Joint Powers Financing Authority in its budget document which is presented in a public meeting and is available to the public in both written and online formats. Please see San Pablo Budget Documents at: http://www.sanpabloca.gov/407/City-Financial-Reports. The City does not have information on whether or not other cities provide similar information. With regard to RECOMMENDATIONS, the City of San Pablo responds as follows: