Marin Clean Energy's board quietly set a major reset in motion last Thursday, signing off on the start of an outside governance review that could reshape how the public-power agency is run. The move follows a scathing Marin County civil grand jury report that flagged serious problems with oversight and internal controls at MCE. Depending on what outside consultants recommend, the agency's board structure and bylaws could look very different by the fall.
Board moves to overhaul governance
At last Thursday's meeting, MCE put a contract with Sacramento firm Leading Resources Inc. on its agenda and signaled a vote to move forward with an independent governance assessment. The item appeared as a “Proposed First Agreement with Leading Resources, Inc for Governance Assessment Services” in the June 18 packet. MCE's online meeting materials include the agenda and packet for that session, according to Marin Clean Energy.
Grand jury found major governance lapses
A Marin County civil grand jury report released earlier this month said the MCE board “rarely asserted its responsibility” and called out failures in transparency and internal controls. The panel pointed to expensive power-contract decisions that sharply increased the agency's energy costs and recommended a thorough governance review. That summary of the grand jury's findings has helped push the board to seek outside help, according to a public summary of the report.
Consultant chosen for utility experience
Leading Resources Inc. is a Sacramento-based governance consultancy that focuses on board development and policy-governance systems. The firm has recently worked with utilities on governance overhauls, including a high-profile board-policy revamp at Imperial Irrigation District, and promotes board-development work for public agencies and utilities. Those credentials, officials say, were a factor in the selection process, and the IID announcement along with Leading Resources' governance materials describe that kind of engagement.
What's next and reaction
Under the review plan, consultants' first phase will examine the board's composition and processes, and a second phase will focus on implementation and management, with a formal proposal expected by late September. The grand jury's criticism landed on an agency that handles roughly $800 million a year and is governed by a 34-member board made up of elected officials from Marin, Napa, Solano and Contra Costa counties.
Responding at the meeting, Board President Shanelle Scales-Preston warned that stopping to pause on the governance assessment does not provide a path forward, while public commenter Alicia Minyen said MCE had not fully answered records requests about a nearly $3 billion bond sale. Leading Resources' Eric Douglas said the grand jury report helps jump-start the process, according to the Marin Independent Journal.
