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Home My WebLink About2019-11-05; Clean Energy Alliance JPA; ; Review Draft FY 2019/2020 Initial Budget and Consider Requests for Member Agency Advances to Fund Initial Costs in the Amount of $450,000TO: CLEAN ENERGY ALLIANCE STAFF REPORT Clean Energy Alliance Board of Directors ITEM 10: REVIEW DRAFT FY 2019/2020 INITIAL BUDGET AND CONSIDER REQUESTS FOR MEMBER AGENCY ADVANCES TO FUND INITIAL COSTS IN THE AMOUNT OF $450,000 DATE: November 5, 2019 RECOMMENDATION: That the Board review the draft Fiscal Year 2019/2020 Clean Energy Alliance (CEA) initial budget, pursuant to Section 7.3.1 of the CEA Joint Powers Agreement (JPA), and consider requesting advances in the amount of $150,000 from each Member Agency to fund initial costs in the amount of $450,000, to be repaid from future CEA program revenues, pursuant to Section 7.3.2 of the CEAJPA. BACKGROUND AND DISCUSSION: Section 7 of the JPA addresses the Financial Provisions for CEA, including specifying a fiscal year that shall commence July 1 and end June 30, establishing an initial budget and funding of the initial costs. The activities of the Alliance through June 30, 2020 will be focused on meeting the requirements related to certification of the CEA Implementation Plan as well as completion of the CCA registration process. These activities and timeline were set forth in California Public Utilities Commission (CPUC) Resolution E-4907, approved by the CPUC February 8, 2018. These activities include: • Development and submission of a draft customer notice • Payment of the CCA Financial Security Requirement • Filing of an Initial Renewable Portfolio Standards Procurement • Participation in Initial Year-Ahead Resource Adequacy process Costs related to the activities necessary to ensure compliance with all CCA certification and registration requirements, as well as to ensure a successful launch in 2021, are estimated to be $450,000 for the fiscal year ending June 30, 2020. These costs are to be shared equally among the Member Agencies, pursuant to JPA Section 7.3.2, and subject to reimbursement from future CEA program revenues. The draft FY 2019/2020 initial budget (Attachment 1) addresses the need for consulting services to perform the duties necessary for a successful 2021 CCA launch; technical consultants for regulatory compliance activity; legal services for both general counsel and special regulatory counsel; professional services for tasks such as graphic design services and website development, and membership in California Community Choice Association as an affiliate member. The draft budget includes line items that, depending on the direction from the Board, could be funded through traditional bank financing, deferred fees and/or partner support, thereby reducing the amount of funds required from each Member Agency to provide for pre- launch costs. If approved by the Board, staff will prepare a Cost Reimbursement for Member Agency Support Agreement for consideration at the next Board meeting. Following funding approvals by Member Agency City Councils, staff will present a resolution for final Board approval of the FY 2019/2020 CEA budget. Such action is expected to occur at the January Board meeting. A preliminary estimate of the Fiscal Year 2020/2021 budget for non-power related costs is also provided at $1,459,500. Staff will return to the Board prior to FY 2020/2021 to secure the necessary budget approvals, and with a discussion of potential funding strategies, which again, may include the use of traditional bank financing, deferred fees and/or partner support. The preliminary budget does not include the costs for power procurement services (portfolio and rate design, scheduling coordinator, Integrated Resource Planning, etc.) or data management/call center/billing services as these would be paid for through CEA operating revenues (post-launch). Attachment: 1. Clean Energy Alliance Initial Draft FY 2019/2020 Budget INITIAL BUDGET Staffing/Consultants Legal Services Professional Services CCABond CalCCA Membership & Dues Graphic Design Services/Marketing TOTAL PROJECTED BUDGET PRELIMINARY BUDGET Staffing/Consultants Legal Services Professional Services CAISO Fee CalCCA Membership & Dues Print/Mail Services Advertising Graphic Design Services Website Maintenance Audit Services TOTAL PROJECTED BUDGET $ $ $ $ Clean Energy Alliance DRAFT FY 2019/2020 Initial Budget and Preliminary FY 2020/2021 Budget FY 19/20 NOTES 50,000.00 FY 19/20 Partial Year, Part Time CEO and Administrative Support 130,000.00 General Counsel & Special Counsel 115,000.00 Website Development; Technical SuDPOl't 147,000.00 Reauired to be paid by March 2020 1,500.00 Affliliate Membership 19/20 $6,500 Logo/Mailers 450,000.00 FY 20/21 NOTES 235,000.00 FY 20/21 Full Year, Full Time CEO and Administrative Support 200,000.00 General Counsel & Special Counsel 200,000.00 Technical Support, Load Forecastin2. Regulatory Complaince 500,000.00 Reaulred P-· · In • -· ,. Revenue Rimlts 130,000.00 Operational Membership FY 20/21 132,000.00 Reaulred mailers 10,000.00 Public Hearing Notices 10,000.00 Logo/Mailers 2,500.00 40,000.00 Annual Financial and Privacy & Power Source Disclosure 1,459,500.00 Attachment 1 Costs could be funded through traditional bank financing and/or deferred fees/partner support 11/14/2019 Item 10: Draft FY 201.9/2020 Initial Budget and Co.nsider Member Agen.cy Advances Dan King Clean Energy Alliance Board Meeting November 5, 2019 Item 10: Draft Initial Budget and Agency Advances RECOMMENDED ACTION: That the Board review the draft Fiscal Year 2019/2020 Clean Energy Alliance (CEA) initial budget, pursuant to Section 7.3.1 of the CEA Joint Powers Agreement (JPA), and consider requesting advances in the amount of $150,000 from each Member Agency to fund initial costs in the amount of $450,000, to be repaid from future CEA program revenues, pursuant to Section 7.3.2 of the CEA JPA. 23 11/14/2019 Item 10: Draft Initial Budget and Agency Advances BACKGROUND AND DISCUSSION: • Initial activities focused on completing and certifying the Implementation Plan and completion of CCA registration process • Development and submission of a draft customer notice • Payment of the CCA Financial Security Requirement • Filing of an Initial Renewable Portfolio Standards Procurement • Participation in Initial Year-Ahead Resource Adequacy process • Total costs estimated at $450,000 to be shared equally Item 10: Draft Initial Budget and Agency Advances BACKGROUND AND DISCUSSION: • Initial budget addresses the need for consultant services to perform the necessary duties for a 2021 launch: • Technical consultants for regulatory compliance activities • Legal services for both general counsel and special regulatory counsel • Professional services for tasks such as graphic design services and website development • Membership in California Community Choice Association as an affiliate member • Payment of CPUC CCA Bond 24 I Item 10: Draft Initial Budget and Agency Advances Recommended Next Steps: • If approved by the Board, staff will prepare a Cost Reimbursement for Member Agency Support Agreement for consideration at the next Board meeting • Following funding approvals by Member Agency City Councils, staff will present a resolution for final Board approval of the FY 2019/2020 CEA budget Item 10: Draft Initial Budget and Agency Advances Preliminary Estimate of FY 2020/2021 Budget: • Preliminary estimate for non-power costs is $1,459,500 • Staff will return to the Board prior to FY 2020/2021 to secure the necessary budget approvals, and with a discussion of potential funding strategies, which may include the use of traditional bank financing, deferred fees and/or partner support 11/14/2019 25 INITIAL BUDGET Sta ffi no /Consultants s Le•al Services ........ ,...,,._ CCA__, CalCCA Membershlo & Dues Graohic Oesien Services/Marketinll TOT AL PROJECTED BUDGET s PRELIMINARY BUDGET 5taffino/Consultants s LeRal Services , ........ ,r.olV\,- CalCCA Membershin & Dues --11 --....... Advertlslno Graohic Oesilzn Services Website Maintenance Audit Services TOT AL PROJECTED BUDGET s aean Energy Alliance DRAFT FY 2019/2020 Initial Budget and Preliminary FY 2020/2021 Budget FY 19/20 NOTES 50,000.00 FY 19/20 Partial Year, Part Time CEO and Administrative SUn~rt 130,000.00 General Counsel & Soecial Counsel 11&nnnnn Webllte Technical c.- 147000.00 •-•Nd 1D be .,.Id 1w Mln:h '""' 1,500.00 Affliliate Membershio 19/20 $6 500 Logo/Mailers 450000.00 FY 20/21 NOTES 235,000.00 FY 20/21 Full Year, Full Time CEO and Administrative SUooort 200,000.00 General Counsel & Soecial Counsel ---Technlcal .,_ •-----11------i■-.....,.Pl~ln'"~ 130,000.00 Ooerational Membershlo FY 20/21 ... -oo 1-rwc1mall•11 10000.00 Public Hearinlit Notices 10,000.00 L"'1o/Mailers 2 500.00 40000.00 Annual Flnancial and Privacv & Power source Disclosure 1,459,500.00 Costs could be funded through traditional bank financing and/or deferred fees/partner SU 11/14/2019 26