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HomeMy WebLinkAbout2020-06-18; Clean Energy Alliance JPA; ; Approve Clean Energy Alliance Fiscal Year 20/21 BudgetClean Energy Alliance JOINT POWERS AUTHORITY DATE: TO: FROM: ITEM 6: Staff Report June 18, 2020 Clean Energy Alliance Board of Directors Barbara Boswell, Interim Chief Executive Officer Marie Berkuti, Interim Treasurer Approve Clean Energy Alliance Fiscal Year 20/21 Budget RECOMMENDATION: Approve Clean Energy Alliance Fiscal Year 20/21 Budget. BACKGROUND AND DISCUSSION: At its May 21, 2020 meeting, the Clean Energy Alliance (CEA) Board reviewed the draft fiscal year 20/21 budget and directed staff to bring back the draft budget for consideration of adoption at its June 18, 2020 meeting. The proposed budget, shown below, summarizes expenditures into Operating and Non-Operating categories. Operating expenditures include funds for interim CEO, legal, technical consultants and marketing and communications. Non-operating expenditures include the CAISO deposit required for participate in the CAISO's congestion revenue rights program. In addition, it includes the estimated funds needed to for cash flow purposes and lockbox reserves that will be required by energy suppliers. Clean Energy Alliance FY 19/20 Estimates and FY 20/21 Proposed Budget FY 19/20 FY 19/20 FY 20/21 Bud11et Estimates Proposed NOTES Staffing/Consultants $ 50,000.00 $ 40,000.00 $ 120,000.00 Interim CEO, other staffing needs Lei,:al Services 130,000.00 75,000.00 320,000.00 General Counsel & Special Counsel Professional Services 115,000.00 79,000.00 310,000.00 Energy Consultants, Communications & Marketing & Other Support CalCCA Membership & Dues 1,500.00 1,500.00 15,000.00 Affliliate Membership 19/20, Operational Membership 20/21 Print/Mail Services 132,000.00 Required mailers (58,000 • 4 mailers • $.56) Advertising 10,000.00 Public Hearing Notices Graphic Design Services 6,500.00 10,000.00 Logo/Mailers/Letterhead etc Website Maintenance 2,500.00 Monthly Website Maintenance Audit Services 40,000.00 Annual Financial Audit CCA Bond 147,000.00 100,000.00 47,000.00 OPERATING EXPENDITURES 450,000.00 295,500.00 1,006,500.00 CAISO Deposit 500,000.00 Required Participation in Congestion Revenue Rights Cash Flow & Lockbox Reserves 2,500,000.00 Lockbox Reserve/Cash Flow NON-OPERATING EXPENDITURES --3,000,000.00 TOTAL $450,000.00 $ 295,500.00 $4,006,500.00 FISCAL IMPACT The proposed budget will be funded through a credit solution provided by a financial institution. CEA has two options, JP Morgan and River City Bank supplemented with a loan from Calpine Energy Solutions. It is anticipated that there will be $154,500 in savings from fiscal year 19/20, which will be sufficient and can be utilized to fund expenditures prior to the financing solution being finalized. ATTACHMENTS: None. June 16, 2020 Item #6 Page 1 of 1