HomeMy WebLinkAbout2020-07-16; Clean Energy Alliance JPA; ; Clean Energy Alliance Administrative and Operational PoliciesClean Energy Alliance
JOINT POWERS AUTHORITY
Staff Report
DATE: July 16, 2020
TO: Clean Energy Alliance Board of Directors
FROM: Barbara Boswell, Interim Chief Executive Officer
ITEM 8: Clean Energy Alliance Administrative and Operational Policies
RECOMMENDATION:
Review and approve Clean Energy Alliance (CEA) Unsolicited Proposals, Non-Energy Procurement and
Financial Reserve Policies.
BACKGROUND AND DISCUSSION:
A key activity of establishing a new organization is establishing administrative and operational policies.
The policies proposed to the Board for consideration include:
Unsolicited Proposals Policy
Non-Energy Procurement Policy
Reserve Policy
Unsolicited Proposals Policy
Currently CEA provides a form on its website for individuals and firms to register to receive updates on
future CEA solicitations. The CEA Board expressed a desire to provide a venue for the submission of
Unsolicited Proposals. The proposed Unsolicited Proposals Policy is in response to that request.
Unsolicited Proposals must meet all of the following requirements to be eligible for review:
• Must contain a novel, innovative, or otherwise meritorious concept, application,
approach or method;
• Is for a good, project, program or service that would not be normally procured
through CEA's typical solicitation processes;
• Be independently originated and developed by the proposer;
• Be prepared without CEA staff supervision or direct CEA staff assistance;
• Present the proposed work or project in sufficient detail to allow a determination to
be made that the proposed project could enhance, benefit, and provide valuable
input to meeting CEA goals.
The policy identifies a two-phased approach to the receipt and evaluation of Unsolicited Proposals:
Phase 1 —Conceptual Proposal
Phase 2 — Detailed Proposal
The purpose of the Conceptual Proposal phase is for CEA to receive written, concept-level
proposals and to screen those proposals to determine whether to the proposals meets
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CEA Policies
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requirements to move to Phase 2 — Detailed Proposal. CEA staff will review the Conceptual
Proposal submittal to determine whether it meets the requirements as outlined above.
The purpose of Phase 2 — Detailed Proposal is for CEA to receive more detailed technical and
financial information to fully understand and evaluate the proposal. CEA staff, and technical
consultants if deemed necessary and beneficial, will review and evaluate the Detail Proposals
on the following minimum requirements:
• Proposer's capabilities, related experience, facilities, techniques, or unique
combinations of these which are integral factors for achieving the proposal
objectives;
• Qualifications, capabilities and experience of key personnel who are critical in
achieving the proposal objectives;
• Proposer's financial capacity to deliver the goods or services defined in the proposal;
• Viability of the proposed schedule;
6 Proposal's consistency with CEA's objectives and goals;
• Any other factors appropriate for the particular proposal.
Detailed Proposals that meet the requirements outlined above will be scheduled to be
presented to the CEA Board of Directors for discussion and direction. The Board may decide to
forego moving forward with the proposal, proceed to a sole source agreement or pursue a
competitive solicitation.
The proposed Policy is designed to provide a process for Unsolicited Proposals to be screened
at a high level to ensure they meet initial requirements with a minimum amount of impact to
staff.
Non-Energy Procurement Policy
The CEA Non-Energy Procurement Policy establishes the administrative procedures for procurement of
goods and services necessary in the conduct of CEA business. The policy establishes the following
thresholds:
a. A Request for Proposals or Request for Qualifications for Goods, Services or a
Combination of Goods and Services shall be required if the aggregate anticipated
value of a contract exceeds $100,000 in any fiscal year. These contracts are
subject to Board approval before final execution.
b. An Informal Bid Process for Goods, Services or a Combination of Goods and
Services shall be required if the aggregate anticipated value of a contract is
between $50,000 and $99,999.
c. An Informal Verbal Proposal for Goods, Services or Combination of Goods and
Services shall be required if the aggregate anticipated value of a contract is
between $10,000 and $49,999. Staff shall note the three verbal bids by including
the providers' name, address, phone number and amount of the verbal proposal.
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CEA Policies
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d. For Goods, Services or Combination of Goods and Services anticipated to be
valued at less than $10,000, no formal or informal bids shall be required,
however, staff is directed to seek the best value available.
The establishes the criteria related to exceptions to competitive solicitations such as: sole source
procurement, rent or leasing equipment or offices, procurement from another governmental agency, or
in the event of an emergency.
The Policy also establishes signature authority for the Chief Executive Officer to execute contracts up to
$100,000 provided the contract is for goods or services that have been budgeted, and subject to
approval as to form by the CEA General Counsel. All new contracts in excess of $50,000 shall be reported
at the next regular Board meeting. The Policy also authorizes the CEO to approve invoices and vendor
payments, pursuant to the approved CEA budget.
Financial Reserve Policy
A best practice in building an organization that has long-term financial viability is establishing and
implementing reserve policies. Operating reserves provide a contingency to provide rate stability to
customers and a source of funds for unanticipated expenditures. The proposed Financial Reserve Policy
formalizes the CEA Board goal of contributing 5% of revenues annually to its operating reserve, with a
goal of achieving a minimum 25% of revenues operating reserve. Once the 25% operating reserve has
been met, the Board will strive to continue contributing to the operating reserve to achieve a balance of
40% of revenues.
FISCAL IMPACT
There is no fiscal impact by this action.
ATTACHMENTS:
Attachment A - Clean Energy Alliance Unsolicited Proposals Policy
Attachment B — Non-Energy Procurement Policy
Attachment C— Financial Reserve Policy
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Attachment A
Clean Energy Alliance
JOINT POWERS AUTHORITY
UNSOLICITED PROPOSALS POLICY
As a normal course of business, Clean Energy Alliance (CEA) develops its own requirements,
solicits proposals or bids, and contracts with entities whose proposals or bids are deemed to
most closely meet the requirements at the best value. The CEA Board of Directors desires to
provide a venue whereby innovative ideas may be forwarded to CEA outside of a solicitation to
for review. This policy describes the process for submission and how the unsolicited proposal
will be handled.
For purposes of this policy, an "unsolicited proposal" is defined as a proposal for goods,
projects, programs or services that are not within the scope of an open competitive
procurement such as a request for proposal or request of qualifications.
Unsolicited proposals must meet all of the following requirements to be eligible for review:
• Must contain a novel, innovative, or otherwise meritorious concept, application,
approach or method;
• Is for a good, project, program or service that would not be normally procured
through CEA's typical solicitation processes;
• Be independently originated and developed by the proposer;
• Be prepared without CEA staff supervision or direct CEA staff assistance;
• Present the proposed work or project in sufficient detail to allow a determination to
be made that the proposed project could enhance, benefit, and provide valuable
input to meeting CEA goals.
Approach
CEA receives and evaluates unsolicited proposals using a two-phased approach:
Phase 1 - Conceptual Proposal
Phase 2 — Detailed Proposal
Phase 1— Conceptual Proposal
The purpose of the Conceptual Proposal Form (Exhibit A) is for CEA to receive written, concept-
level proposals and to screen those proposals to determine whether to the proposals meets
requirements to move to Phase 2 — Detailed Proposal.
The Conceptual Proposal will be reviewed to determine if it meets the eligibility requirements
detailed above as well as the following criteria:
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Item 8 Attachment A Item #8 Page 4 of 13
• The proposal offers direct or anticipated benefits to CEA, its member agencies, and
its customers;
• The proposal is consistent with CEA's objectives and goals;
• The proposal satisfies a need for CEA that can be reasonably accommodated within
CEA's budget;
• The proposal does not rely on CEA's credit to finance the project;
• Other criteria appropriate for the particular proposal.
CEA will notify the proposer of the results of the review of the Conceptual Proposal within 30
days. Potential outcomes may be to discontinue moving forward with the Proposal, proceed to
Phase 2 — Detailed Proposal, or CEA may pursue a competitive solicitation.
The receipt of a Conceptual Proposal does not commit CEA to award, nor does it commit CEA to
pay any cost incurred in the submission of the Conceptual Proposal, or in making necessary
studies or designs for the preparation thereof.
Phase 2— Detailed Proposal
The purpose of Phase 2 — Detailed Proposal is for CEA to receive more detailed technical and
financial information to fully understand and evaluate the proposal. Through the review of the
Detailed Proposal CEA will decide whether to forego moving forward with the proposal, to
proceed to a sole source agreement or to pursue a competitive solicitation.
CEA may engage outside consultants to assist with the evaluation of the Detailed Proposal if
deemed necessary and beneficial.
The Detail Proposal must include, at a minimum, the following information:
• Description of the proposer's organization and previous experience in the field;
• Names and relevant background of key personnel who would be committed to the
project;
• Type of support needed from CEA; e.g. facilities, equipment, materials, or personnel
resources;
• Type of support being provided by the proposer;
• A sufficiently detailed description of the scope of work being proposed to all CEA to
evaluate the value received for the price proposed;
• Proposed price or estimated cost in sufficient detail for meaningful evaluation and
cost analysis;
• Schedule for implementation;
• Required statements and disclosures about organizational conflicts of interest and
environmental impacts.
Clean Energy Alliance
Unsolicited Proposals Policy
Draft July 16, 2020
July 16, 2020 Item 8 Attachment A Item #8 Page 5 of 13
Detailed Proposals will be evaluated in accordance with the criteria set out in this section, as
well as any other criteria identified in the response to Phase 1— Conceptual Proposal. The
Detailed Proposal will be evaluated using the same criteria set forth in Phase 1 in addition to
the following minimum factors:
• Proposer's capabilities, related experience, facilities, techniques, or unique
combinations of these which are integral factors for achieving the proposal
objectives;
• Qualifications, capabilities and experience of key personnel who are critical in
achieving the proposal objectives;
• Proposer's financial capacity to deliver the goods or services defined in the proposal;
• Viability of the proposed schedule;
• Proposal's consistency with CEA's objectives and goals;
• Any other factors appropriate for the particular proposal.
Detailed Proposals that meet the requirements outlined above will be scheduled to be
presented to the CEA Board of Directors for discussion and direction. The Board may decide to
forego moving forward with the proposal, proceed to a sole source agreement or pursue a
competitive solicitation.
Nothing in this policy or otherwise requires CEA to act or enter into a contract based on an
Unsolicited Proposal. CEA, at its sole discretion, may return and/or reject an Unsolicited
Proposal at any time during the process.
Fair and Open Competition
CEA's receipt of an Unsolicited Proposal does not, by itself, justify a contract award without fair
and open competition. If the Unsolicited Proposal offers a proprietary concept that is essential
to contract performance, it may be deemed a Sole Source. If not, CEA may pursue a
competitive procurement.
Sole Source Award
If it is impossible to describe the project, program or services offered without revealing
proprietary information or disclosing the originality of thought or innovativeness of the project,
program or services, CEA may make a sole source award. A sole source award may not be
based solely on the unique capability of the proposer to provide the project, program or service
proposed.
Claims against CEA
Neither your organization nor any of your representatives shall have any claims whatsoever against CEA,
or any of its respective officials, agents, or employees arising out of or relating to the Unsolicited Proposal,
except as set forth in the terms of a definitive agreement between CEA and your organization.
Form of Proposals
Clean Energy Alliance
Unsolicited Proposals Policy
Draft July 16, 2020
July 16, 2020 Item 8 Attachment A
3
Item #8 Page 6 of 13
Electronic proposals only will be accepted.
Withdrawal of Proposal
Proposers may withdraw their proposals at any. The proposer must submit a written withdrawal request
signed by the proposer's duly authorized representative addressed to and submitted to the contact.
Public Records Act (CPRA)
Please note that any information provided as part of an Unsolicited Proposal may be subject to the Public
Records Act (PRA). If the Proposer feels that any part of its submission is proprietary information, please
identify by section, paragraph, and page the information the Proposer believes is proprietary. In the event
of a PRA, this information may be reviewed by CEA's attorneys for applicability. No guarantee can be
provided that any part of the Proposer's information will be kept confidential.
Confidentiality
All data and information obtained from or on behalf of CEA by the Proposer and its agents in this
Unsolicited Proposal process, including reports, recommendations, specifications, and data, shall be
treated by the Proposer and its agents as confidential. The Proposer and its agents shall not disclose or
communicate this information to a third party or use it in advertising, publicity, propaganda, or in
another job or jobs, unless written consent is obtained from CEA. Generally, each proposal and all
documentation, including financial information, submitted by a Proposer to CEA is confidential until a
contract is awarded, when such documents become public record under State and local law, unless
exempted under PRA.
Clean Energy Alliance 4
Unsolicited Proposals Policy
Draft July 16, 2020
July 16, 2020
Item 8 Attachment A
Item #8 Page 7 of 13
Exhibit A
Clean Energy Alliance Unsolicited Proposal
Concept Proposal Form
Phase 1 of CEA's Unsolicited Proposal process involves submission of this form to the Clean
Energy Alliance Chief Executive Officer via email at ceo@TheCleanEnergyAlliance.org. Submit
only the information requested on this form. If CEA determines that the Unsolicited Proposal
should proceed to Phase 2, CEA will notify the proposer.
Proposer Information
Name:
Address:
Primary contact information:
Type of organization:
CEA will submit technical and/or business questions concerning the proposal and results of
review to the primary contact.
Technical Information
Title of the proposal:
CEA Goal or Objective the proposal addresses:
An executive summary of the proposal, up to a maximum 2 pages, must be attached. The
summary must include a brief discussion of the following:
1. Description of the project, program or service
2. Objectives project, program or services will achieve
3. Method of approach which makes the proposal novel, innovative, or otherwise
meritorious
4. Manner in which the work will help support the goals and objectives of CEA
5. Clearly identify the benefit to CEA, its member agencies or its customers
Technical expertise the proposer needs from CEA:
Financial Information
Proposed price or total estimated cost (by year if appropriate):
Financing plan for the proposal:
Procedural Information
Clean Energy Alliance
Unsolicited Proposals Policy
Draft July 16, 2020
July 16, 2020 Item 8 Attachment A Item #8 Page 8 of 13
Period of time for which the proposal is valid:
Proprietary data has been submitted with this proposal and is deemed confidential
by the proposer in the event of a request submitted to CEA under the California Public Records
Act. Any proprietary data must be clearly designated.
El Other government entities, CCAs or private parties have received this proposal.
Please explain:
E] Other government entities, CCAs or private parties may provide funding for this
proposal.
Please explain:
El There are patents, copyrights and/or trademarks applicable to the Unsolicited
Proposal.
Please explain:
II There is additional information not requested in this form that would assist CEA in
evaluating this proposal at a conceptual phase.
Please describe:
Signature
Signature
Name:
Date:
Title:
The individual who signs this form must be authorized to represent and contractually obligate
the Proposer.
Clean Energy Alliance
Unsolicited Proposals Policy
Draft July 16, 2020
July 16, 2020
Item 8 Attachment A
Item #8 Page 9 of 13
Attachment B
Clean Energy Alliance
JOINT POWERS AUTHORITY
NON-ENERGY PROCUREMENT POLICY
It is in the interest of Clean Energy Alliance (CEA) to establish non-energy competitive
solicitation and procurement practices that facilitate efficient business operations and offer fair
and open competition. This policy shall not apply to any energy procurements or transactions.
DEFINITIONS
"Best Value" is award based on factors in addition to price that provide the best overall value
to CEA.
"Informal Bid Process" is a process wherein the Chief Executive Officer requests written quotes
from at least three (3) vendors. A written proposal may be in an electronic mail format.
"Competitive Solicitation" is a competitive process in which CEA procures Goods, Services, or a
combination thereof from Proposers in order to secure the Best Value for CEA and its
customers.
RULES REGARDING COMPETITIVE SOLICITATION OF GOODS AND SERVICES
1. Goods, Services or a Combination of Goods and Services.
a. A Request for Proposals or Request for Qualifications for Goods, Services or a
Combination of Goods and Services shall be required if the aggregate anticipated
value of a contract exceeds $100,000 in any fiscal year. These contracts are
subject to Board approval before final execution.
b. An Informal Bid Process for Goods, Services or a Combination of Goods and
Services shall be required if the aggregate anticipated value of a contract is
between $50,000 and $99,999.
c. An Informal Verbal Proposal for Goods, Services or Combination of Goods and
Services shall be required if the aggregate anticipated value of a contract is
between $10,000 and $49,999. Staff shall note the three verbal bids by including
the providers' name, address, phone number and amount of the verbal proposal.
d. For Goods, Services or Combination of Goods and Services anticipated to be
valued at less than $10,000, no formal or informal bids shall be required,
however, staff is directed to seek the best value available.
2. CEA shall be permitted to award a contract on Best Value, unless a lowest cost award is
required by California law.
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3. No CEA employee, official or director shall split purchases into more than one purchase
in order to avoid the competitive solicitation requirements in this policy.
4. Exceptions to competitive solicitation requirements:
a. Sole source purchasing is authorized when the goods or services contemplated
are capable of being performed by a sole provider, such as the holder of an
exclusive patent or franchise, for purchase of unique or innovative goods or
services including but not limited to computer software and technology, or for
purchases of goods or services when there is a demonstrated need for
compatibility with an existing item or service. A sole source may be designated
when it is apparent that a needed product or service may be designated when it
is apparent that a needed product or service is uniquely available from the
source, or for all practical purposes, it is justifiable in the best interest of CEA.
Under some circumstances, CEA competitive solicitation requirements may be
dispensed with when the goods or services are only available from one source
either because the brand or trade name article, goods, product or proprietary
service is the only one which properly meets the needs of the CEA or the item or
service is unique and available only from a sole source.
The following factors shall not apply to sole source requests: personal
preference for product or vendor; cost, vendor performance, and local service;
features that exceed the minimum requirements for the goods or services;
explanation for the actual need and basic use for the equipment, unless the
information relates to a request for unique factors.
b. No competitive solicitation shall be required to rent or lease equipment or
offices.
c. No competitive solicitation shall be required when the contract, the goods or the
services will be provided by another governmental agency. CEA can rely on the
competitive solicitation process provided by another governmental agency
providing that that agency's procurement is in compliance with California law.
In the event of an emergency, the CEO may suspend the normal purchasing and
procurement requirements for goods and services related to abatement of the
impacts or effects of the emergency.
5. CEA is encouraged to jointly procure supplies with other governmental agencies to
obtain lowest cost when possible.
6. No CEA employee, officer or Director shall accept, directly or indirectly, any gift, rebate,
money or anything else of value from any person or entity if such gift, rebate, money or
anything of value is intended to reward or be an inducement for conducting business,
placing orders with, or otherwise using the employee's position to secure an agreement
with CEA.
Non-Energy Procurement Policy
Draft July 16, 2020
July 16, 2020
Item 8 Attachment B Item #8 Page 11 of 13
PROCUREMENT OF PROFESSIONAL SERVICES
CEA may contract for professional services, including but not limited to consultant, legal or
technical services in its sole discretion. CEA shall endeavor to secure the highest quality
professional services available. While CEA shall secure such services in compliance with the
Competitive Solicitation Requirements above, awarding a contract for services need not be
awarded to the lowest responsible bidder.
SIGNING AUTHORITY
1. The Chief Executive Officer (CEO) is authorized to enter into contracts of $100,000 for
less without prior Board approval with the stipulation that the contract be for goods or
services budgeted for in the current CEA budget, that the contract has been approved as
to form and content by the CEA General Counsel. All new contracts in excess of $50,000
shall be reported at the next regular Board meeting.
2. Invoices and vendor payments shall be approved by the CEO prior to payment, pursuant
to the approved CEA budget.
Non-Energy Procurement Policy
Draft July 16, 2020
July 16, 2020
Item 8 Attachment B
Item #8 Page 12 of 13
Attachment C
Clean Energy Alliance
JOINT POWERS AUTHORITY
FINANCIAL RESERVE POLICY
It is in the interest of Clean Energy Alliance (CEA) to establish financial reserves that support
long-term financial viability, provide a contingency to provide rate stability to customers,
provide a source of funds for unanticipated expenditures.
Policy Guidelines
CEA shall strive to contribute 5% of revenues into an operating reserve annually with a goal of
achieving a minimum 25% of revenues operating reserve.
Once the 25% operating reserve is achieved, CEA will strive to continue contributing to the
operating reserve to achieve a balance of 40% of revenues.
Exceptions to this policy and spending from the operating reserves must be approved by the
CEA Board.
July 16, 2020
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