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HomeMy WebLinkAbout2020-06-26; Clean Energy Alliance JPA; MinutesClean Energy Alliance - Board of Directors Meeting Minutes June 26, 2020 — 3 p.m. Carlsbad City Hall — City Council Chamber 1200 Carlsbad Village Drive, Carlsbad, CA 92008 CALL TO ORDER: 3 p.m. ROLL CALL: Schumacher, Haviland, Becker FLAG SALUTE Vice Chair Haviland led the Pledge of Allegiance. BOARD COMMENTS & ANNOUNCEMENTS: Vice Chair Haviland wished everyone well and expressed her appreciation for staff. PRESENTATIONS: None. APPROVAL OF MINUTES: None. NEW BUSINESS Item 1: Establishment of Clean Energy Alliance Ad Hoc Committee for Joint Procurement with San Diego Community Power RECOMMENDATION As an alternative to establishing a Clean Energy Alliance Ad Hoc Committee that would consider joint procurement with San Diego Community Power ("SDCP"), consider designating a Board member to work with staff in scheduling one or more meetings with SDCP representatives to discuss joint procurement. Interim Chief Executive Officer Barbara Boswell and Attorney George Stapanicich presented the staff report and reviewed the PowerPoint presentation (on file in the Office of the Board Secretary). Minute motion by Chair Schumacher, seconded by Vice Chair Haviland to designate a Board member to proactively work with staff to have conversations and interact with other JPA's in the county. Motion carried, 2/1 (Becker — No) Motion by Chair Schumacher, seconded by Vice Chair Haviland to appoint Vice Chair Haviland and Board Alternate Worden (pending agreement from Board Member Worden) to work with staff in scheduling one or more meetings with San Diego Community Power representatives to discuss joint procurement. Motion carried unanimously, 3/0. (This item was continued from the June 18, 2020 Clean Energy Alliance Board meeting.) Item 2: Clean Energy Alliance Board Policy Regarding Handling Unsolicited Proposals RECOMMENDATION 1) Review, provide input and approve Request for Proposal for Long-Term Renewable Solicitation. 2) Approve Joint Long-Term Renewable Solicitation with San Diego Community Power. Interim Chief Executive Officer Boswell and Consultant Kirby Dusel from Pacific Energy Advisors presented the report and reviewed a PowerPoint presentation (on file in the Office of the Interim Board Secretary). Interim Board Secretary Cobian read public comments received from the following individuals into the record: Gretchen Newsom and Mike McMahon on behalf of the Sierra Club, MyGen Carlsbad Team, and IBEW 569 regarding suggested edits to the draft Long-Term Renewable Energy RFP. (On file in the office of the Interim Board Secretary). In response to an inquiry from Vice Chair Haviland, Mr. Dusel explained that this Request for Proposals solicitation could be viewed as gathering information, not necessarily directing decisions, but to gain a sense of the various renewable energy projects available along with pricing, and then evaluate how the proposals may fit within the Clean Energy Alliance (CEA) budget framework. In response to an inquiry from Chair Schumacher, Mr. Dusel explained that in order to meet Long-Term California RPS-Eligible Renewable Energy requirements, the contract must be a minimum of ten years. CEA's Request for Proposals (RFP) has a requirement that provides for proposals to be considered they must have delivery terms for ten years or more. He further explained that adding years onto a minimum ten-year proposal that was selected could be negotiated. In response to an inquiry from Vice Chair Haviland, Mr. Dusel stated that financial viability of all prospective respondents to the RFP was very important and criteria to be factored into the decision making was the respondent's financing plan, past experience and credit rating. He also explained that it was important for the board to consider contract term lengths and how they overlay with one another in CEA's energy supply portfolio, adding that the preference is a range of different contract durations and start dates so contracts are beginning and ending at different points in time. Board discussion ensued by the board regarding Chair Schumacher's request that board members consider taking Item c. Project location, including benefits to the local economy and workforce, under Evaluation of Responses in the RFP, and breaking it into individual, separate sections within the RFP as recommended in the public comment email from the Sierra Club MyGen Carlsbad Team and IBEW 569. Motion by Chair Schumacher, seconded by Board Member Becker to approve the issuance of the Request for Proposals for Long-Term Renewable Energy Solicitation, changing the language to reflect that it was a single JPA RFP, and changing Item c. Project location, including benefits to the local economy and workforce, under Evaluation of Responses into individual, separate sections within the RFP. Motion carried 3/0. Motion by Vice Chair Haviland, seconded by Board Member Beck to issue the Request for Proposals for Long-Term Energy Solicitation on Wednesday, July 1, 2020. Motion carried 3/0. 2 (This item was continued from the June 18, 2020 Clean Energy Alliance Board meeting.) Item 3: Clean Energy Alliance Resource Adequacy Procurement RECOMMENDATION Authorize Interim Chief Executive Officer to execute agreements for resource adequacy procurement, for amount not to exceed $14MM over three (3) years, and which has been included within the Clean Energy Alliance Base Pro-Forma, subject to Special Energy Transactions Attorney approval. Interim Chief Executive Officer Boswell and Consultant Brian Goldstein from Pacific Energy Advisors presented the report and reviewed a PowerPoint presentation (on file in the Office of the Board Secretary). Clarifying an inquiry from Chair Schumacher, Interim CEO Boswell explained the pricing received factored into all scenarios of the Base Pro-Formas. Motion by Board Member Becker, seconded by Vice Chair Haviland, to approve staff recommendation to authorize the Interim Chief Executive Officer to execute agreements for resource adequacy procurement, for amount not to exceed $14MM over three (3) years, and which has been included within the Clean Energy Alliance Base Pro-Forma, subject to Special Energy Transactions Attorney approval. Motion carried 3/0. BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS At the request of Chair Schumacher, the board concurred to have general counsel review additional sustainable workforce language comments received by the board on June 19, 2020 and added to the Sustainable Workforce Policy agenda item for comparison when the item is brought forth to the board for consideration. Chair Schumacher requested, and the Board concurred, to place all draft Pro Forma studies that have been conducted as a stand-alone item for discussion on the July 16, 2020, CEA board meeting agenda. ADJOURNMENT: Chair Schumacher adjourned the duly noticed Meeting at 4:21 p.m. 3 Sheila R. Cobian, MMC Interim Board Secretary