Memorandum
Date: October 7, 2025
To: The Honorable Lake County Board of Supervisors
From: Susan Parker, County Administrative Officer
Stephen L. Carter, Jr., Assistant County Administrative Officer
Matthew Rothstein, Chief Deputy County Administrative Officer
Benjamin Rickelman, Deputy County Administrative Officer
Lloyd Guintivano, County Counsel
Subject: (A) Consideration of Staff Review of Sonoma Clean Power Joint Powers Agreement; (B) Conceptual Introduction of Draft Enabling Resolutions and Ordinance for County to Join Sonoma Clean Power and Possible Direction to Staff (No Action on Part B, Discussion and Possible Direction to Staff, Only)
Executive Summary:
First, thank you to all of you for your attendance and engagement in the Tuesday, September 30, special 5pm Joint Workshop of the County of Lake and Cities of Clearlake and Lakeport on the option of Public Power Generation in Lake County with Sonoma Clean Power (SCP). Video of that session is now accessible here:
<https://www.youtube.com/watch?v=R4jexfZaxn4>
Earlier this year, the Lake County Board of Supervisors and the Cities of Lakeport and Clearlake sent requests to SCP to consider extending service into Lake County, and an offer of service has been extended (PDF Pages 83-95 are relevant to Lake County, and the signed/final version of the offer of service is attached here, for your reference and public inspection):
<https://sonomacleanpower.org/uploads/documents/SCPA-BOD-2025.08.07-Meeting-Agenda-Packet-with-Teleconference-Instructions.pdf>
Your Board asked that County Counsel and Administration review the Sonoma Clean Power Joint Powers Agreement in detail, and staff have drawn out the following observations:
1. The title of the attached document should delete the reference to “By and Among The County of Sonoma and The Sonoma County Water Agency”
2. Section 2.5 expressly states that “the power of the Authority is subject to the restrictions upon the manner of exercising power possessed by the Sonoma County Water Agency.”
3. Section 3.3 states that a Participant who has not agreed to assume an Authority debt liability or obligation shall not be responsible in any way for such debt, liability, or obligation even if a majority of the Parties and Participants agree to assume the debt, liability or obligation of the Authority.
4. Section 4.7 states that the if the Board of Directors approves any other municipality or county as a Participant, the Board of Directors shall determine whether such municipality or county may appoint an additional member of the Board of Directors.
5. Section 4.7.3 states that any “action by the Board shall require the affirmative vote of a majority of Directors present at the meeting.” However, Section 4.7.4 allows for any Director to make a demand that approval of any matter related to the CCA Program be determined on the basis of voting shares and by affirmative vote of a majority of Directors present at the meeting.” Furthermore, Section 4.7.5. provides that for actions consisting of an amendment to the agreement, the removal of a member from the Community Advisory Committee, or the involuntary termination of a Party or Participant, any Director present at the meeting may demand that the vote be determined on the basis of voting shares. Voting shares are based on (Annual Energy Use/Total Annual Energy) multiplied by 100, and the Authority has determined that the County of Lake, City of Clearlake, and the City of Lakeport shall have 2 voting shares.
6. Section 4.9.3 designates the Sonoma County Auditor-Controller-Treasurer-Tax Collector as the Treasurer and the Auditor for the Authority.
7. Section 5.1.2 mandates the Authority to prepare and approve an Implementation Plan (also attached for your reference), that requires our Board’s authorization to implement should the Board decide to be a member of this Authority.
8. Section 7.1.1. allows for a Participant in this JPA to withdraw upon 6 months advance written notice to the Authority that the governing board of said participant has voted to withdraw. However, Section 7.3 states:
Claims, demands, damages, or liabilities for which a withdrawing or terminated Party or Participant may remain liable include, but are not limited to, losses from the resale of power contracted for by the Authority to serve the Party or Participant’s load. With such respect to such liability, upon notice by a Participant that it wishes to withdraw from the program, the Authority shall notify the Party or Participant of the minimum waiting period under which the Participant would have no costs for withdrawal if the Participant agrees to stay in the CCA Program for such period.
9. Section 8.2 states that the Authority would indemnify and hold harmless the individual current and former Directors, officers, and employees for any acts or omissions int eh scope of their employment or duties.
10. Section 8.3 states that the Authority would indemnify and hold harmless the Parties and Participants and each of their respective Board or Council members, officers, agents and employees from an any claims or damages arising directly or indirectly from the conduct of the Authority under this Agreement.
Your Board will recall, Sonoma Clean Power staff have repeatedly spoken to the long-term nature of the commitment joining represents, and conditions for doing so are more favorable than either of the two previous times the County explored Community Choice Aggregation (2015-16, 2019-20).
Additionally, members of your Board requested that the Resolutions and Ordinance that will be considered during your Tuesday, October 21, 2025, meeting, which could effectuate the County joining Sonoma Clean Power, if that is the will of your Board in representing the public interest, be made accessible for public inspection. Those are attached to this Agenda Item. No action will be taken on any of these documents today; however, your Board and members of the public may wish to advise staff of any questions, in the interest of providing for the best possible policy direction and decision-making Tuesday, October 21, 2025.
Staff looks forward to your Board’s discussion and questions, and we sincerely hope this item augments public understanding. The decision to join Sonoma Clean Power is very long-term, and staff truly appreciates your earnest efforts to appropriately weigh this decision. As you are aware, Sonoma Clean Power has committed to robust engagement with Lake County’s Tribal Nations, for example, prior to service commencing, to ensure any that wish to opt out have the opportunity to do so prior to service ever starting.
If there are additional considerations you feel should be made, staff hopes your Board will agree Sonoma Clean Power leadership have consistently sought to accommodate those needs, including conduct of the feasibility study at no cost to the County or Cities of Clearlake and Lakeport and attendance of seven Lake County Town Halls and more than a dozen public meetings (including the Tuesday, September 30, joint workshop) with no commitment from your Board or the City Councils. As you would expect, Staff is committed to following up on any lingering questions you may have.
No decision-making action is associated with this item. You may consider direction to staff, as appropriate.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Purchasing Considerations (check all that apply): ☒ Not applicable
☐ Fully Article X. <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI>- and/or Consultant Selection Policy <http://lcnet.co.lake.ca.us/Assets/Intranet/Policy/Policies+$!26+Procedures+Manual/Ch4_2021v2.pdf>-Compliant (describe process undertaken in “Executive Summary”)
☐ Section 2-38 <https://library.municode.com/ca/lake_county/codes/code_of_ordinances?nodeId=COOR_CH2AD_ARTXPU_S2-38EXCOBI> Exemption from Competitive Bidding (rationale in “Executive Summary,” attach documentation, as needed)
☐ For Technology Purchases: Vetted and Supported by the Technology Governance Committee <http://lcnet.co.lake.ca.us/Assets/Intranet/Intranet+Forms/Information+Technology/AdvPlan.pdf> (“Yes,” if checked)
☐ Other (Please describe in Executive Summary)
Consistency with Vision 2028 <http://www.lakecountyca.gov/Government/Directory/Administration/Visioning/Vision2028.htm> (check all that apply): ☐ Not applicable
☒ Well-being of Residents ☒ Public Safety ☒ Disaster Prevention, Preparedness, Recovery
☒ Economic Development ☒ Infrastructure ☐ County Workforce
☒ Community Collaboration ☒ Business Process Efficiency ☐ Clear Lake
Recommended Action: No decision-making action. Consider direction to staff, as appropriate.