News

As Cities Association eyes restructuring, Palo Alto seeks more oversight

Council to weigh in on whether to support creation of Joint Powers Authority for 15 member cities

Palo Alto City Hall. Embarcadero Media file photo

For more than 30 years, the mission of the Cities Association of Santa Clara County has been as vague as its name.

A coalition of policymakers from the 15 municipalities that make up the county, the group holds monthly board meetings, hosts educational events for its members and issues position statements on state bills pertaining to hot button issues such as housing and taxes. In the past few years, it lobbied against Senate Bill 9, a 2021 bill that allowed duplexes and triplexes in single-family zones, supported additional state and regional funding for transportation and in favor of lowering the voting threshold to approve new local taxes to 55%.

As its mission has evolved and its lobbying became more assertive, its stature has grown. Margaret Abe-Koga, a Mountain View council member who chairs the Cities Association's Board of Directors, recalled a period years ago when the group even considered going out of existence.

"When I started, there was a point where we thought about disbanding because we didn't have anything to do," Abe-Koga said during the Sept. 14 meeting of the Cities Association board.

In recent years, however, issues like clean energy and city planning became more central and the organization has grown.

Help sustain the local news you depend on.

Your contribution matters. Become a member today.

Join

"We are growing in our identity as legislators look to the Cities Association more than before for input," Abe-Koga said.

Locally, however, the Cities Association is famous for another reason. Last year, council members in each of the 15 cities found themselves in closed session meetings to discuss a prospective lawsuit from Andrea Jordan, the group's former executive director who accused staff and board members of harassment. Each city, to its chagrin, found itself potentially liable for damages stemming from the litigation.

While the suit didn't advance, the conflict forced the group to reconsider its legal structure and added some urgency to an ongoing discussion about forming a Joint Powers Authority, an idea that the Cities Association has been exploring since 2017. It hopes to formally approve the transition to a JPA by the end of the year.

"What came to light is that as an unincorporated association, there's always going to be a question whether liability can go to individual cities," Jannie Quinn, general counsel for the Cities Association, said at the group's Sept. 14 discussion. "That's one of the reasons that I think the JPA was selected."

State law, she told the board, allows the group to "create a separate entity for your common interests and to have liability rest with that entity."

Stay informed

Get the latest local news and information sent straight to your inbox.

Stay informed

Get the latest local news and information sent straight to your inbox.

Whether or not the transition happens this year, as supporters of the move hope, depends in large part on the feedback that the Cities Association gets from its member cities, each of which is now considering its position on the JPA formation.

The Palo Alto City Council is preparing to discuss the proposal and make a recommendation at its Oct. 23 meeting.

Abe-Koga argued during the September discussion that recent legal issues and the organization's growth warrant the change.

"As we grow, it's just becoming more and more important for us to have our liability and have legal status that protect ourselves from any kind of challenges that we had before. That's really what we're trying to do here – protect all of our cities," Abe-Koga said.

Not everyone, however, is entirely sold. Palo Alto Mayor Lydia Kou was one of several members of the Cities Association board who said she was concerned about the creation of the JPA, which she said would give the body "a broad amount of power."

Most Viewed Stories

Most Viewed Stories

She said she was particularly concerned about the prospect of a JPA representative taking positions at regional meetings that differ from those of member cities, each of which has unique views.

"They're not taking our votes to go and vote at these regional bodies, they're voting whichever way they want," Kou said.

Abe-Koga and Quinn both framed the proposed joint powers authority structure as a compromise that incorporates dozens of revisions submitted in recent months by city managers and city attorneys from the 15 cities. Quinn noted that under state laws, joint power authorities can levy taxes and purchase real properties. Some local officials suggested that the Cities Association does not need these powers. Cities Association officials agreed.

"Not only did we remove those provisions, we included prohibitions (stating) that we can't do that," Quinn said.

A report from Palo Alto City Manager Ed Shikada stays agnostic on the topic of whether the city should support the effort, leaving that decision to the council. It notes, however, that forming a JPA isn't the only way to protect cities from lawsuits.

"There are alternative ways of avoiding liability, such as refraining from hiring employees and avoiding involvement in initiatives without sufficient management or checks and balances," the report states.

Shikada is also asking the council to consider whether the JPA agreement should be further amended to make sure its positions truly represent the consensus of member cities. For example, this may include a discussion of whether the organization needs a simple majority or a supermajority to act.

He is also recommending that the Cities Association create a committee with staff from member cities who would advise the Board of Directors on whether its proposed projects would entail significant costs.

"Overall, staff believes that proceeding with a JPA and addressing the issues above would best be undertaken with the expectation that member agencies will need to devote more time to ensuring appropriate consultation and engagement on CASCC activities and operations," Shikada's report states.

Craving a new voice in Peninsula dining?

Sign up for the Peninsula Foodist newsletter.

Sign up now
Gennady Sheyner
 
Gennady Sheyner covers the City Hall beat in Palo Alto as well as regional politics, with a special focus on housing and transportation. Before joining the Palo Alto Weekly/PaloAltoOnline.com in 2008, he covered breaking news and local politics for the Waterbury Republican-American, a daily newspaper in Connecticut. Read more >>

Follow on Twitter @paloaltoweekly, Facebook and on Instagram @paloaltoonline for breaking news, local events, photos, videos and more.

Get uninterrupted access to important local city government news. Become a member today.

As Cities Association eyes restructuring, Palo Alto seeks more oversight

Council to weigh in on whether to support creation of Joint Powers Authority for 15 member cities

For more than 30 years, the mission of the Cities Association of Santa Clara County has been as vague as its name.

A coalition of policymakers from the 15 municipalities that make up the county, the group holds monthly board meetings, hosts educational events for its members and issues position statements on state bills pertaining to hot button issues such as housing and taxes. In the past few years, it lobbied against Senate Bill 9, a 2021 bill that allowed duplexes and triplexes in single-family zones, supported additional state and regional funding for transportation and in favor of lowering the voting threshold to approve new local taxes to 55%.

As its mission has evolved and its lobbying became more assertive, its stature has grown. Margaret Abe-Koga, a Mountain View council member who chairs the Cities Association's Board of Directors, recalled a period years ago when the group even considered going out of existence.

"When I started, there was a point where we thought about disbanding because we didn't have anything to do," Abe-Koga said during the Sept. 14 meeting of the Cities Association board.

In recent years, however, issues like clean energy and city planning became more central and the organization has grown.

"We are growing in our identity as legislators look to the Cities Association more than before for input," Abe-Koga said.

Locally, however, the Cities Association is famous for another reason. Last year, council members in each of the 15 cities found themselves in closed session meetings to discuss a prospective lawsuit from Andrea Jordan, the group's former executive director who accused staff and board members of harassment. Each city, to its chagrin, found itself potentially liable for damages stemming from the litigation.

While the suit didn't advance, the conflict forced the group to reconsider its legal structure and added some urgency to an ongoing discussion about forming a Joint Powers Authority, an idea that the Cities Association has been exploring since 2017. It hopes to formally approve the transition to a JPA by the end of the year.

"What came to light is that as an unincorporated association, there's always going to be a question whether liability can go to individual cities," Jannie Quinn, general counsel for the Cities Association, said at the group's Sept. 14 discussion. "That's one of the reasons that I think the JPA was selected."

State law, she told the board, allows the group to "create a separate entity for your common interests and to have liability rest with that entity."

Whether or not the transition happens this year, as supporters of the move hope, depends in large part on the feedback that the Cities Association gets from its member cities, each of which is now considering its position on the JPA formation.

The Palo Alto City Council is preparing to discuss the proposal and make a recommendation at its Oct. 23 meeting.

Abe-Koga argued during the September discussion that recent legal issues and the organization's growth warrant the change.

"As we grow, it's just becoming more and more important for us to have our liability and have legal status that protect ourselves from any kind of challenges that we had before. That's really what we're trying to do here – protect all of our cities," Abe-Koga said.

Not everyone, however, is entirely sold. Palo Alto Mayor Lydia Kou was one of several members of the Cities Association board who said she was concerned about the creation of the JPA, which she said would give the body "a broad amount of power."

She said she was particularly concerned about the prospect of a JPA representative taking positions at regional meetings that differ from those of member cities, each of which has unique views.

"They're not taking our votes to go and vote at these regional bodies, they're voting whichever way they want," Kou said.

Abe-Koga and Quinn both framed the proposed joint powers authority structure as a compromise that incorporates dozens of revisions submitted in recent months by city managers and city attorneys from the 15 cities. Quinn noted that under state laws, joint power authorities can levy taxes and purchase real properties. Some local officials suggested that the Cities Association does not need these powers. Cities Association officials agreed.

"Not only did we remove those provisions, we included prohibitions (stating) that we can't do that," Quinn said.

A report from Palo Alto City Manager Ed Shikada stays agnostic on the topic of whether the city should support the effort, leaving that decision to the council. It notes, however, that forming a JPA isn't the only way to protect cities from lawsuits.

"There are alternative ways of avoiding liability, such as refraining from hiring employees and avoiding involvement in initiatives without sufficient management or checks and balances," the report states.

Shikada is also asking the council to consider whether the JPA agreement should be further amended to make sure its positions truly represent the consensus of member cities. For example, this may include a discussion of whether the organization needs a simple majority or a supermajority to act.

He is also recommending that the Cities Association create a committee with staff from member cities who would advise the Board of Directors on whether its proposed projects would entail significant costs.

"Overall, staff believes that proceeding with a JPA and addressing the issues above would best be undertaken with the expectation that member agencies will need to devote more time to ensuring appropriate consultation and engagement on CASCC activities and operations," Shikada's report states.

Comments

anon1234
Registered user
College Terrace
on Oct 21, 2023 at 10:06 am
anon1234, College Terrace
Registered user
on Oct 21, 2023 at 10:06 am

There is no need to have yet another layer of government in the Bay Area.

The folks that want to form the JPA
were elected in their individual cities not to regional office.
We already have county, state district and state level electeds representing us !


ALB
Registered user
College Terrace
on Oct 21, 2023 at 4:18 pm
ALB, College Terrace
Registered user
on Oct 21, 2023 at 4:18 pm

I agree one hundred percent with anon1234. What are the real motives behind this drive to create a new agency that could go against municipalities. Is this power play a paper tiger? Are the supporters of JPA trying to insulate the group from litigation. Sign arbitration agreements and drop this fatuous game.


Eric Filseth
Registered user
Downtown North
on Oct 22, 2023 at 5:43 pm
Eric Filseth, Downtown North
Registered user
on Oct 22, 2023 at 5:43 pm

I’m inclined to agree with @Anon1234 above, who’s concerned a JPA adds a new layer of government overhead and accountability-diffusion, without clarity on what the corresponding new value to Palo Altans would be.

JPA’s are typically established for complex public-works projects where multiple local governments must make an expensive joint investment that benefits them all - infrastructure on the San Francisquito Creek, for example. The group can’t have the uncertainty that one of them reverses its financial and regulatory commitments later on, so they cede some of that authority to the JPA. The participants essentially give up some control over their own voters, in exchange for mitigating those risks.

Here there is no such project and risk; in fact, the objectives seem pretty vague. In acknowledgement of that, the proponents sensibly propose to amend the fiscal entailments; yet without those, most of the point of having a JPA in the first place comes into question. It starts to feel like a Solution looking for a Problem.

As for liability, the article mentions a specific legal circumstance which came before Council a year or two ago. I defer to the City’s professional Attorney staff, but I recall thinking at the time that had a JPA been in place (the idea had already been floating around), it would have actually limited the City’s ability to do the right thing, not enhanced it.

So I think the Council should tread with considerable caution here. To justify a JPA, it must be unequivocally clear that its benefits outweigh its costs (and especially relative to whatever the next-best alternative is). That’s not the case here; it feels more like, “let’s do a JPA, and we’ll figure out what to do with it later.” If that's an accurate read, then it’s backwards from how governments should operate.


Joe Citizen
Registered user
Old Palo Alto
on Oct 23, 2023 at 11:52 am
Joe Citizen, Old Palo Alto
Registered user
on Oct 23, 2023 at 11:52 am

"The Cities Association is operating now, and has traditionally operated as, a non-governmental, unincorporated organization. However, there are restrictions to what such a body can do (for example, an unincorporated organization’s revenue cannot exceed $5,000.00 per year). Structural change will ensure compliance with state and federal regulations and
allow CASCC to continue to grow." Web Link

The real question is, what are the penalties invoived in running an organization that is not in compliance with state and federal laws? Imagine the tax bill to the feds would be nice. And why do our cities think they are above the law to run an organization for 30 years?


Don't miss out on the discussion!
Sign up to be notified of new comments on this topic.

Post a comment

On Wednesday, we'll be launching a new website. To prepare and make sure all our content is available on the new platform, commenting on stories and in TownSquare has been disabled. When the new site is online, past comments will be available to be seen and we'll reinstate the ability to comment. We appreciate your patience while we make this transition.