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Home My WebLink About2021-04-22; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's ReportOW- CLEAN ENERGY ALLIANCE Staff Report DATE: April 22, 2021 TO: Clean Energy Alliance Board of Directors FROM: Marie Marron Berkuti, Interim Treasurer ITEM 1: Clean Energy Alliance Treasurer's Report RECOMMENDATION Receive and File Clean Energy Alliance (CEA) Interim Treasurer's Report for March 2021. BACKGROUND AND DISCUSSION This report provides the Board with the following financial information through March 31, 2021: •Statement of Financial Position — Reports assets, liabilities, and financial position of the CEA as of March 31, 2021. •Statement of Revenues, Expenses and Changes in Net Position for the nine months ended March 31, 2021. •Budget to Actuals Comparison Schedule — Reports actual revenues and expenditures compared to the amended budget as of March 31, 2021. •Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position •List of Payments Issued — Reports payments issued for March 2021. As of March 31, 2021, liabilities represent invoices received for services, but not yet paid. The noncurrent accounts payable are amounts due to the cities of Carlsbad, Del Mar, and Solana Beach for the $150,000 advance made by each member agency for start-up costs and services provided to CEA for the period December 2019 to June 2020. These invoices are scheduled to be paid three years from the time CEA is operational. April 22, 2021 Treasurer's Report Page 2 of 6 MARCH 31, 2021 REPORTS STATEMENT OF FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of March 31, 2021 ASSETS Current Assets Cash Operating Account $ 100,955.12 Lockbox Account 100,000.00 AM Miscellaneous 500.00 Total Current Assets 201,455.12 Noncurrent Assets Deposits CCA Bond 247,000.00 CAISO Collateral Deposit 500,000.00 SDG&E Collateral Deposits 585,000.00 Total Noncurrent Assets 1,332,000.00 Total Assets 1,533,455.12 LIABILITIES Current Liabilities Accounts Payable 86,942.25 Accrued Liabilities 25,941.00 Refundable Deposits 75,000.00 Total Current Liabilities 187,883.25 Noncurrent Liabilities Due to Member Agencies Due to City of Carlsbad 186,571.79 Due to City of Del Mar 151,892.97 Due to City of Solana Beach 165,552.69 Total Due to Member Agencies 504,017.45 JPMorgan Revolving Credit Agreement 3,000,000.00 Total Noncurrent Liabilities 3,504,017.45 Total Liabilities 3,691,900.70 NET POSITION Unrestricted (deficit) (2,158,445.58) Total Net Position $ (2,158,445.58) April 22, 2021 Treasurer's Report Page 3 of 6 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION CLEAN ENERGY ALLIANCE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the nine months ended March 31, 2021 Operating Revenues Operating Expenses Power Supply $ 1,083,143.69 Professional Services 751,012.90 Print/Mail Services 10,146.49 Membership Dues 15,444.00 Website Maintenance 204.00 Insurance 5,569.38 Bank Fees 985.00 Subscriptions/Publications 199.50 Miscellaneous G&A 1,500.00 Total Operating Expenses 1,868,204.96 Operating Income (Loss) (1,868,204.96) Non-Operating Expenses Interest Expense (11,556.25) Change in Net Position (1,879,761.21) Net Position at beginning of period (278,684.37) Net Position at end of period $ (2,158,445.58) April 22, 2021 Treasurer's Report Page 4 of 6 BUDGET TO ACTUALS COMPARISON SCHEDULE At its January 21, 2021, board meeting, the CEA Board approved a Credit Agreement with JPMorgan for $6MM to provide start-up funding for cash flow needs and a line of credit should the need arise. The first drawdown of funds from the Agreement was made on March 3, 2021, in the amount of $3MM. At the same time, the Calpine Promissory Notes totaling $650,000 were paid off along with $2,923 in interest expense. At its June 18, 2020, board meeting, the CEA Board adopted the Fiscal Year (FY) 2020/21 budget approving $4,006,500 in total operating expenses and uses of funds. The CEA Board approved an amendment to the budget at its November 19, 2020, board meeting, to cover the Financial Security Requirement amount of $147,000. At its December 17, 2020, board meeting, the CEA Board approved an amendment to the budget totaling $9,459,000 in expenses and uses of funds to reflect resource adequacy contracts executed and costs associated with CEA beginning to provide service in May and June 2021. These budget amendments brought the amended adopted budget total to $13,612,500. Of its approved $13,612,500.00 amended budgeted operating expenses and uses of funds, $3,111,761.21 has been expended, leaving $10,500,738.79. The Budget to Actuals Comparison Schedule shown on the next page. April 22, 2021 Treasurer's Report Page 5 of 6 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the nine months ended March 31, 2021 Operating Revenues AMENDED BUDGET ACTUALS VARIANCE Energy Sales $ 8,000,000.00 $ $ 8,000,000.00 Total Operating Revenue 8,000,000.00 8,000,000.00 Operating Expenses Power Supply 8,000,000.00 1,083,143.69 6,916,856.31 Professional Services Administrative 120,000:00 108,384.93 11,615.07 Accounting 10,000.00 15,012.00 (5,012.00) Legal 320,000.00 347,269.75 (27,269.75) Technical 198,200.00 195,102.25 3,097.75 Data Manager 130,200.00 130,200.00 Marketing 102,238.00 69,923.97 32,314.03 Audit 40,000.00 8,000.00 32,000.00 Other 9,562.00 7,320.00 2,242.00 Total Professional Services 930,200.00 751,012.90 179,187.10 Print/Mail Services 132,000.00 10,146.49 121,853.51 SDG&E Service Fees & Deposit 83,800.00 83,800.00 Membership Dues 15,000.00 15,444.00 (444.00) Advertising 10,000.00 10,000.00 Website Maintenance 2,500.00 204.00 2,296.00 Insurance 5,569.38 (5,569.38) Bank Fees 985.00 (985.00) Subscriptions/Publications 199.50 (199.50) Miscellaneous G&A 1,500.00 (1,500.00) Total Operating Expenses 9,173,500.00 1,868,204.96 7,305,295.04 Operating Income (Loss) (1,173,500.00) (1,868,204.96) 694,704.96 Non-Operating Expenses Interest Expense 10,000.00 11,556.25 (1,556.25) Other Sources and Uses Sources JPMorgan Revolving Credit Agreement 5,000,000.00 3,000,000.00 2,000,000.00 Calpine Promissory Note 650,000.00 - 650,000.00 Total Sources 5,650,000.00 3,000,000.00 2,650,000.00 Uses CCA Bond(Financial Security Reqmt-FSR) 47,000.00 147,000.00 (100,000.00) CAISO Deposit 500,000.00 500,000.00 Lock Box Reserves/Cash Flow 2,500,000.00 - 2,500,000.00 Calpine Promissory Note Repayment 650,000.00 - 650,000.00 Collateral Deposits-SDG&E 585,000.00 585,000.00 Financial Security Requirement 147,000.00 - 147,000.00 Total Uses 4,429,000.00 1,232,000.00 3,197,000.00 Total Sources and Uses 1,221,000.00 1,768,000.00 (547,000.00) Net Increase (Decrease) in Available Fund Balance 37,500.00 $ (111,761.21) $ 149,261.21 Total Operating and Non-Operating Expenses and Uses of Funds $ 13,612,500.00 $ 3,111,761.21 $ 10,500,73879 April 22, 2021 Treasurer's Report Page 6 of 6 BUDGET RECONCILIATION TO STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION CLEAN ENERGY ALLIANCE BUDGET RECONCILIATION TO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION For the nine months ended March 31, 2021 Net Increase (Decrease) in Available Fund Balance per Budgetary Comparison Schedule Adjustments needed to reconcile to the changes in Net Position in the Statement of Revenues, Expenses, and Changes in Net Position $ (111,761.21) Subtract Advances-JPMorgan Revolving Credit Agreement (3,000,000.00) Add back: Collateral Deposit-CAISD 500,000.00 Collateral Deposits-SDG&E 585,000.00 CCA Bond(Financial Security Reqmt-FSR) 147,000.00 Change in Net Position $ (1,879,761.21) LIST OF PAYMENTS ISSUED The report on the following page provides the detail of payments issued by CEA for March 2021. All payments were within approved budget. Clean Energy Alliance List of Payments Issued March 2021 Date Via Vendor Description Amount 03/10/21 WIRE JPMorgan Interest 02/03/21-03/02/21 8,633.33 03/12/21 ACH Carlsbad Chamber of Commerce Membership March 2021 to February 2022 319.00 03/12/21 ACH Pacific Energy Advisors, Inc Feb 2021 Technical Consulting Svcs 23,600.00 03/12/23 ACH Nixon Peabody JP Morgan Credit Facility-Special Counsel 27,059.50 03/12/21 ACH Tripepi, Smith & Associates, Inc. Translation Services 135.00 03/12/21 ACH Richards, Watson & Gershon Jan 2021 General Counsel Svcs 7,256.11 03/12/21 ACH Tripepi, Smith & Associates, Inc. Feb 2021 Retainer 9,223.75 03/12/21 ACH Bayshore Consulting Group, Inc Feb CEO Services 12,470.00 03/17/21 ACH USPS 03/15/21 Mailing 5,164.79 03/17/21 ACH USPS 03/16/21 Mailing 4,981.70 03/22/21 WIRE Direct Energy Feb 2021 PWR-CAP 157,000.00 03/22/21 WIRE SDG&E February 2021 RA Sales and Purchases 617,676.87 03/22/21 WIRE Direct Energy Overpayment on Invoice #1032912 500.00 03/22/21 ACH Bolt Energy Marketing, LLC February 2021 Invoice RA Confirmation Letters 74,750.00 03/22/21 ACH CDIAC Reporting fee-GC Section 8856-11DMorgan $6MM 1,500.00 03/22/21 ACH Keyes & Fox LLP Dec and Jan ERRA Trigger Services 10,904.75 03/30/21 WIRE CAISO Financial Security/Collateral Deposit 500,000.00 03/30/21 ACH Hall Energy Law PC Feb 2021 Energy Procurement Counsel Svcs 20,825.00 03/30/21 ACH The Coast News Group Home and Garden 895.00 03/30/21 ACH Keyes & Fox LLP Feb ERRA Forecast Counsel Services 3,884.25 03/30/21 ACH Chapman and Cutler, LLP Amended Fees-JP Morgan Revolving Line of Credit 15,000.00 Total February Payments $ 1,501,779.05 FISCAL IMPACT There is no fiscal impact associated with these items.