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Home My WebLink About2020-07-16; Clean Energy Alliance JPA; ; Exhibits and PresentationsClean Energy Alliance JOINT POWERS AUTHORITY Regular Board Meeting July 16, 2020, 2 p.m. Hosted by the City of Del Mar 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 1 Item 4: Clean Energy Alliance Financial Pro Formas Barbara Boswell, Interim Chief Executive Officer John Dalessi, Pacific Energy Advisors 7/16/2o CLEAN ENERGY ALLIANCE - DRAFT 2 Item 4: Clean Energy Alliance Financial Pro Formas • Recommendation o Receive Informational Item on Clean Energy Alliance Financial Pro Formas 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 3 Item 4: Clean Energy Alliance Financial Pro Formas • Pro Formas reflect three energy mix scenarios: O Base o 50% Renewable Default Energy product increasing to 100% by 2035 o 82% PCC1/18% PCC 2 — allowable by state O Option 1 — 100% PCC1 at launch O Option 2 — 100% PCC1 by 2023 O All three modeled at rate parity, 1% generation discount, 2% generation discount 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 4 Base Rate Parity Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program - Base RCB/Cal pi ne Credit Solution Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I. Revenue 9,913,235 69,767,349 71127,161 72 508,987 73,913,166 II. Operating Expenses Power Supply 8,988,017 60,976,876 59,978,716 61,512,028 62,261,087 Staff 50,000 120,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,223,938 2,459,148 2,497,813 2 558 347 2,616,275 Subtotal Operating Expenses 303,000 10,331 956 64,036,023 63 094,529 64,706,915 65,532 998 Operating Margin (303,000) (418,721) 5,73 326 8,032,632 7,802,071 8,380,167 III. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (992,054) 5,085,076 6,629,579 6,399,458 6,977,693 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500,000 Collateral Deposits 0 2,500,000 Reserve Additions 495,662 3,488 367 3,556 358 3,625,449 3,695,658 Subtotal Other Uses 147,000 3,495,662 3,488 367 3,556,358 3,625,449 3,695,658 VI. Net Surplus/(Deficit) 12,284 1,595,708 3,073,221 2,774,009 3,282,035 VII. Cumulative Reserve 495,662 3,984,029 7,540,387 11,165,837 14,861,495 VIII. Cumulative Net Surplus 12,284 1,608,993 4,682,213 7,456,222 10,738,257 VI. Combined Cumulative Reserve & Cumulative I 507,946 5,593,022 12,222,601 18,622,059 25,599,752 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles • 50% Renewable • 82% PCC1/18% PCC2 • Positive Net Surplus all years; • 20% reserve by 2025 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 5 Base 1% Discount Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program - Base® 1.% Rate Discount Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I. Revenue 9,773,664 68 750,2 6 70,094 7 9 71 461,007 72,849,414 II. Operating Expenses Power Supply 8,988,017 60,976,876 59,978,716 61,512,028 62,261,087 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,108,938 2,459,148 2,497,813 2,558,347 2,616,275 Subtotal Operating Expenses 303,000 10,331,956 64,036,023 63,094,529 64,706,915 65,532,998 Operating Margin (303,000) (558,292) 4714,192 7,000,190 6,754,091 7,316,415 Ill. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (1,131,625) 4,067,942 5,597,137 5,351,478 5,913,941 IV. Cash From Financing 450,000 4,500,000 - V. Other Uses CPUC and CAISO Deposits 147,000 500,000 Collateral Deposits 0 2,500,000 Reserve Additions 368,375 3,437,511 3,504,736 3,573,050 3,642,471 Subtotal Other Uses 147,000 3,368,375 3,437,511 3,504,736 3,573,050 3,642,471 VI. Net Surplus/(Deficit) 630,432 2,092,401 1,778,428 2,271,471 VII. Cumulative Reserve 368,375 3,805,886 7,310,622 10,883,672 14,526,143 VIII Cumulative Net Surplus 630,432 2,722,833 4,501,261 6,772,732 VI. Combined Cumulative Reserve & Cumulative Net Surplus 368,375 4,436,318 10,033,455 15,384,933 21,298,875 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles • 50% Renewable • 82% PCC1/18% PCC2 • 3.8% reserve contribution in 2021 • 20% reserve by 2025 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 6 Base 2% Discount Annual DRAFT Pm Forma Projections for a Community Choice Aggregation Program • Base Scenario with 29,5 Discount Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I. Revenue 9634,053 67,733,082 69,062,278 70,413,027 71,785,662 II. Operating Expenses Power Supply 8,988,017 60976,876 59,978,716 61,512,028 62,261,087 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1 108 938 2,459,148 2,497,813 2,558,347 2,616,275 Subtotal Operating Expenses 303,000 10,331,956 64,036,023 63,094,529 64,706,915 65,532,998 Operating Margin 1303,0001 (697,862) 3,697,059 5,967,749 5,706 12 6,252 664 M. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (1,271,195) 3,050,809 4,564,696 4,303,499 4,850,190 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500000 Collateral Deposits 0 2,500,000 Reserve Additions 228,805 3,050809 3,453,114 3,520,651 3,589,283 Subtotal Other Uses 147,000 3,228,805 3,050,809 3,453,114 3,520,651 3,589,283 VI. Net Surplus/(Deficit) (0) (0) 1,111,582 782,847 1,260,907 VII. Cumulative Reserve 228,805 3,279,614 6,732,728 10,253,379 13,842,662 VIII. Cumulative Net Surplus (0) (11 1,111,581 1,894,429 3,155,335 VI. Combined Cumulative Reserve & Cumulative Net Surplus 228,805 3,279,613 7,844,309 12,147,800 16,997,998 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles • 50% Renewable • 82% PCC1/18% PCC2 • 2.4% reserve contribution in 2021 • 4.5% reserve contribution in 2022 • 19.2% reserve by 2025 • Net Surplus available beginning FY 2023 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 7 Option 1 Rate Parity Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program - Rate Parity and i00% PCC4 at Launch Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I. Revenue 9,913 235 69,767 349 71,127,161 72,508,987 73,913,166 II. Operating Expenses Power Supply 9,008,910 61,168,848 60,232,062 61,785,316 62,526,043 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,109,006 2,460,107 2,499,080 2,559,714 2,617,600 Subtotal Operating Expenses 303,000 10,352,916 64,228,956 63,349,142 64,981,570 65,799,279 Operating Margin (303,000) (439,681) 5,538 393 7,778,019 7,527,417 8,113,886 Ill. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (1,013,014) 4,892,143 6,374,966 6,124 804 6,711,412 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500,000 .. Collateral Deposits 0 2,500,000 Reserve Additions 486,986 3,437,511 3,504,736 3,573,050 3,642,471 Subtotal Other Uses 147,000 3,486,986 3,437,511 3,504,736 3,573,050 3,642,471 VI. Net Surplus/(Deficit) (0) 1,454,633 2,870,230 2,551,754 3,068,942 VII. Cumulative Reserve 486,986 3,924,497 7,429,233 11,002,283 14,644,754 VIII, Cumulative Net Surplus (0) 1,454 632 4,324 862 6,876,616 9,945,558 VI. Combined Cumulative Reserve & Cumulative Net Surplus - 486,986 5,379,129 11,754,095 17,878,899 24,590,311 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT • 50% Renewable • 100% PCC1 at Launch • 4.9% Reserve contribution 2021 • 19.8% reserve by 2025 • Net Surplus Available Beginning FY 2022 8 Option 1 1% Discount Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program - a% Discount and a00% PCCa at Launch Clean Energy Alliance Fiscal Year Ending. 2020 2021 2022 2023 2024 2025 I. Revenue 9773,664 68,750,216 70,094 719 71,461,007 72,849,414 II. Operating Expenses Power Supply 9,008,910 61,168,848 60,232,062 61,785,316 62,526,043 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,109006 2,460,107 2,499,080 2,559,714 2,617,600 Subtotal Operating Expenses 303,000 10,352,916 64 228,956 63,349 42 64 981,570 65,799,279 Operating Margin (303,000) (579,252) 4,521,260 6,745,577 6,479,437 7,050,134 III. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1402,613 1,402,474 Operating Margin Less Financing (303,000) (1,152,585) 3,875,010 5,342,524 5,076,824 5,647,660 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500,000 Collateral Deposits 0 2,500,000 Reserve Additions 347,415 3,437,511 3,504 736 3,573,050 3,642,471 Subtotal Other Uses 147,000 3,347,415 3,437,511 3,504,736 3,573,050 3,642,471 VI. Net Surplus/(Deficit) 437,499 1,837 789 1,503,774 2,005,190 VII. Cumulative Reserve 347,415 3,784,926 7,289 662 10,862 712 14,505,183 VIII. Cumulative Net Surplus 437,499 2,275 288 3,779 062 5,784,251 VI. Combined Cumulative Reserve & Cumulative Net Surplus 347,415 4,222,425 9,564 949 14,641,774 20,289,434 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles • 50% Renewable • 100% PCC1 at Launch • 3.6% reserve contribution FY 2021 • 20% reserve by FY 2025 • Net Surplus Available FY 2022 7/16/20 CLEAN ENERGY ALLIANCE-DRAFT 9 Option 1-2% Discount Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program. 2% Discount and 3.00% PCC3. at Launch Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I. Revenue 9,834,093 67,733 082 69,062,278 70413,027 71,785,662 II. Operating Expenses Power Supply 9,008,910 61,168,848 60,232,062 61,785,316 62,526,043 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,109,006 2,460,107 2,499,080 2,559,714 2,617,600 Subtotal Operating Expenses 303,000 10,352,916 64,228,956 63,349,142 64,981,570 . 65,799,279 Operating Margin (303,000) (718,823) 3,504 126 5,713,136 5,431,458 5,986 383 III. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (1,292,156) 2,857,876 4,3 0,083 4,028,845 4,583,909 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500,000 Collateral Deposits 0 2,500,000 Reserve Additions 207,844 2,857,876 3,453,114 3,520,651 3,589,283 Subtotal Other Uses 147,000 3,207,844 2,857,876 3,453,114 3,520,651 3,589,283 VI. Net Surplus/(Deficit) 856,969 508,193 994,626 VII. Cumulative Reserve 207,844 3,065,720 6,518,834 10,039,485 13,628,768 VIII. Cumulative Net Surplus 856,970 1,365,163 2,359,789 VI. Combined Cumulative Reserve & Cumulative Net Surplus 207,844 3,065,721 7,375,804 11,404,648 15,988,557 *Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 10 • 50% Renewable • 100% PCC1 at Launch • 2.1% reserve contribution FY 2021 • 4.2% reserve contribution FY 2022 • 19% reserve by FY 2025 • Net Surplus Available FY 2023 0 tion 2 Rate Pant Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program - Rate Parity and m00% PCCI. by mom3 Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I. Revenue 9,913 2 5 69 767,349 71,127,161 72,508,987 73,913 66 II. Operating Expenses Power Supply 8,988,017 61,018,825 60,161,460 61,785,316 62,526,043 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,109,006 2,460,107 2,499,080 2,559,714 2,617,600 Subtotal Operating Expenses 303,000 10,332,024 64,078,933 63,278,540 64,981,570 65,799,279 Operating Margin (303,000) (418,789) 5,688,416 7,848,620 7,527,417 8,113,886 III. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (992,122) 5,042 66 6,445,567 6,124,804 6,711,412 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500,000 - Collateral Deposits 0 2,500,000 Reserve Additions 486,986 3,437,511 3,504,736 3,573,050 3,642,471 Subtotal Other Uses 147,000 3,486,986 3,437,511 3,504,736 3,573,050 3,642,471 VI. Net Surplus/(Deficit) 20,892 1,604,656 2,940,832 2,551,754 3,068,942 VII. Cumulative Reserve 486,986 3,924,497 7,429,233 11,002,283 14,644 754 VIII. Cumulative Net Surplus 20,892 1,625,547 4,566,379 7,118,133 10,187,074 VI. Combined Cumulative Reserve & Cumulative Net Surplus 507,878 5,550,044 11,995,612 18,120,416 24,831,828 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles • 50% Renewable • 100% PCC1 by 2023 • 19.8% reserve by FY 2025 • Net Surplus Available All Years 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 11. Option 2 1% Discount Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program - Rate Parity and m00% PCCI. by 2023 Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I Revenue 9,913,235 69 767,349 71,127,161 72,508,987 73,913,166 II. Operating Expenses Power Supply 8,988,017 61,018,825 60,161,460 61,785,316 62,526,043 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,109,006 2,460,107 2,499,080 2,559,714 2,617,600 Subtotal Operating Expenses 303,000 10,332,024 64,078,933 63,278,540 64,981,570 65,799,279 Operating Margin (303,000) (418,789) 5,688,416 7,848,620 7,527,417 8,113,886 III. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (992,122) 5,042,166 6,445,567 6,124,804 6,711,412 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500,000 Collateral Deposits 0 2,500,000 Reserve Additions 486,986 3,437,511 3,504,736 3,573,050 3,642,471 Subtotal Other Uses 147,000 3,486,986 3,437,511 3,504,736 3,573,050 3,642,471 VI. Net Surplus/(Deficit) 20,892 1,604,656 2,940,832 2,551,754 3,068,942 VII. Cumulative Reserve 486,986 3,924,497 7,425,233 11,002,283 14,644,754 VIII. Cumulative Net Surplus 20,892 1,625,547 4,566,379 7,118,133 10,187,074 VI. Combined Cumulative Reserve & Cumulative Net Surplus 507,878 5,550,044 11,995,612 18,120,416 24,831,828 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 12 • 50% Renewable • 100% PCC1 by 2023 • 3.8% reserve contribution FY 2021 • 20% reserve by FY 2025 • Net Surplus Available beginning FY 2022 • 50% Renewable • 100% PCC1 by 2023 • 3.8% reserve contribution FY 2021 • 4.4% reserve contribution FY 2022 • 19.2% reserve by FY 2025 • Net Surplus Available beginning FY 2023 Option 2-2% Discount Annual DRAFT Pro Forma Projections for a Community Choice Aggregation Program - 2% Discount and l00% PCC2 by 2023 Clean Energy Alliance Fiscal Year Ending: 2020 2021 2022 2023 2024 2025 I. Revenue 9,634,093 67,733,082 69,062,278 70,413,027 71,785,662 II. Operating Expenses Power Supply 8,988,017 61,018,825 60,161,460 61,785,316 62,526,043 Staff 50,000 235,000 600,000 618,000 636,540 655,636 Administrative Costs* 253,000 1,108,938 2,459,357 2,498,727 2,559,714 2,617,600 Subtotal Operating Expenses 303,000 10,331,956 64,078,183 63,278,187 64,981,570 65,799,279 Operating Margin (303,000) (697,882) 3,654,899 5,784,091 5,431,458 5,986,383 III. Financing Interest 123,333 146,250 116,038 69,822 22,280 Principal 450,000 500,000 1,287,015 1,332,791 1,380,194 Subtotal Financing 573,333 646,250 1,403,053 1,402,613 1,402,474 Operating Margin Less Financing (303,000) (1,271,195) 3,008,649 4,381,038 4,028,845 4,583,909 IV. Cash From Financing 450,000 4,500,000 V. Other Uses CPUC and CAISO Deposits 147,000 500,000 Collateral Deposits 0 2,500,000 Reserve Additions 228,805 3,008,649 3,453,114 3,520,651 3,589,283 Subtotal Other Uses 147,000 3,228,805 3,008,649 3,453,114 3,520,651 3,589,283 VI. Net Surplus/(Deficit) (0) 0 927,924 508,193 994,626 VII. Cumulative Reserve 228,805 3,237,454 6,690,568 10,211,219 13,800,502 VIII. Cumulative Net Surplus (0) 0 927,924 1,436,117 2,430,743 VI. Combined Cumulative Reserve & Cumulative Net Surplus 228,805 3,237,454 7,618,492 11 647,336 16,231,245 * Comprised of Technical and Legal Services, Customer Outreach and Communications, Utility Services Fees, Data Management Services, Uncollectibles 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 13 Item 4: Clean Energy Alliance Pro Formas Board Questions/Discussion 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 14 Item 5: Clean Energy Alliance Advisory Committee Barbara Boswell, Interim Chief Executive Officer 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 15 Item 5: Cornmunity Advisory Cornmittee • Recommendation 0 Approve Community Advisory Committee Policy, Review & Approve Timeline 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 16 Item 5: Cornmunity Advisory Cornmittee • Background O June 18, 2020 CEA Board reviewed the draft Citizen Advisory Committee o Requested edits included in Proposed Policy: o Change name from Citizen Advisory Committee to Community Advisory Committee o Add two (2) year term limit o Revise background/expertise criteria o Clarify attendance requirements o Revise CAC Purpose & Objectives O Propose Timeline for CAC 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 17 Item 5: Community Advisory Committee PROPOSED TIMELINE: TASK DATE Open Application Process CEA Board Approve Initial CAC Workplan & Meeting Schedule Applications due to CEA Board Secretary Applications distributed to CEA Board Member CEA Board Member Application Review & Evaluation CEA Board Meeting Review Recommendations & Approve Appointees First Meeting of CAC August 3, 2020 August 20, 2020 August 28, 2020 September 4, 2020 September 7 — October 2 October 15, 2020 November/December 2020 Timeline accommodates for CAC to Work on Customer Outreach & Marketing 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 18 Item 5: Cornmunity Advisory Committee Board Discussion 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 19 Item 6: Clean Energy Alliance Inclusive & Sustainable Workforce Policy Barbara Boswell, Interim Chief Executive Officer 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 20 Item 6: Clean Energy Alliance Inclusive git Sustainable Workforce Policy • Recommendation o Review, Provide Input & Approve CEA Inclusive & Sustainable Workforce Policy 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 21 Item 6: Clean Energy Alliance Inclusive & Sustainable Workforce Policy • Background o May 7, 2020 CEA Board provided input & direction to staff to bring an Inclusive & Sustainable Workforce Policy to Board for consideration o Board referenced policy from Peninsula Clean Energy as a starting point o Additional information for consideration provided to Board from Sierra Club & IBEW 569 which Board requested to be reviewed O CEA JPA Agreement includes language in Recital 6f to be considered. 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 22 Item 6: Clean Energy Alliance Inclusive & Sustainable Workforce Policy • Changes reflected in proposed policy include: o Added language from JPA Agreement related to the policy not limiting fair and open competition; o Edited language such as "shall" and "will" to strive; o Edited language such as "require" to "encourage"; o Removed language that refers to project labor agreements. • Proposed policy reflects meeting requests/concerns of Board, conformity with JPA Agreement and suggestions from Sierra Club/IBEW 569. 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 23 Item 6: Clean Energy Alliance Inclusive & Sustainable Workforce Policy Board Discussion 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 24 Item 7: Clean Energy Alliance Bid Evaluation Criteria & Scoring System Barbara Boswell, Interim Chief Executive Officer 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 25 Item 7: CEA Bid Evaluation Criteria & Scoring System • Recommendation: o Review two alternative Bid Evaluation Criteria & Scoring Systems, provide input and select a preferred alternative. 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 26 Item 7: CEA Bid Evaluation Criteria & Scoring System • Background: O May 7, 2020 CEA Board requested Bid Evaluation Criteria & Scoring System to be brought for consideration O Two alternatives to be considered O East Bay Community Energy — provides bonus percentages/points for certain priority categories o Clean Power Alliance — Uses High-Medium-Low ranking for certain priority categories 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 27 Item 7: CEA Bid Evaluation Criteria & Scoring System • [BCE Bid Evaluation: o 5% or 5 points out of a 100-point scoring system for responses with offices located within Alameda County (East Bay's local county) and minimum 25% employees from Alameda County; o 2.5% or 2.5 points out of a 100-point scoring system for responses who use union labor and/or unionized contractors; o 2.5% or 2.5 points out of a 100-point scoring system for responses from businesses owned and operated by a person representing one or more women, minority, disabled veteran, and lesbian, gay, bisexual, and transgender categories. 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 28 Item 7: CEA Bid Evaluation Criteria & Scoring System • CPA High-Medium-Low ranking for: o $ Value o Environmental Stewardship — project demonstrates multiple benefits beyond climate and GHG reduction o Workforce Development — evaluates target-hire, union labor, or multi-trade project labor agreements o Development Risk — composite rank based on factors impacting project risk including site control; interconnection status; environmental screens; land use and permits; project financing; and developer experience . Project Location — ranked based on location with CPA service counties, other counties within California or out of state . Benefits to Disadvantaged Communities (DAC) — ranked based on location with a DAC and demonstrates DAC workforce and community development benefits 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 29 Item 7: CEA Bid Evaluation Criteria & Scoring System • Consideration for JPA Agreement Recital 6f: 0 "Pursue the procurement of local generation of renewable power developed by or within member jurisdictions with an emphasis on local jobs, where appropriate, without limiting fair and open competition for projects or programs implemented by the Authority." 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 30 Item 7: CEA Bid Evaluation Criteria & Scoring System Board Discussion 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 31 Item 8: Clean Energy Alliance Administrative & Operational Policies Barbara Boswell, Interim Chief Executive Officer 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 32 Item 8: Clean Energy Alliance Administrative & Operational Policies • Recommendation o Review and approve Clean Energy Alliance (CEA) Unsolicited Proposals, Non-Energy Procurement and Financial Reserve Policies 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 33 Item 8: Clean Energy Alliance Administrative & Operational Policies • Unsolicited Proposals Policy o CEA has form on website to register for updates on future CEA solicitations. (2' Unsolicited Proposals Policy provides venue for submission of proposals not currently under solicitation, and would not normally be subject of normal CEA solicitation process 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 34 Item 8: Clean Energy Alliance Administrative & Operational Policies • Unsolicited Proposals must meet following: O Must contain a novel, innovative, or otherwise meritorious concept, application, approach or method; o Is for a good, project, program or service that would not be normally procured through CEA's typical solicitation processes; o Be independently originated and developed by the proposer; o 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. 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 35 Item 8: Clean Energy Alliance Administrative & Operational Policies Approach: o Phase 1— Conceptual Proposal 0 Written, concept-level proposal to determine if meets requirements o Phase 2 — Detailed Proposal 0 Detailed technical & financial information to evaluate proposal 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 36 Item 8: Clean Energy Alliance Administrative & Operational Policies • Detailed Proposals Evaluated on: o Proposer's capabilities, related experience, facilities, techniques, or unique combinations of these which are integral factors for achieving the proposal objectives; O Qualifications, capabilities and experience of key personnel who are critical in achieving the proposal objectives; o Proposer's financial capacity to deliver the goods or services defined in the proposal; O Viability of the proposed schedule; o Proposal's consistency with CEA's objectives and goals; O Any other factors appropriate for the particular proposal. 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 37 Item 8: Clean Energy Alliance Administrative & Operational Policies • Non-Energy Procurement Policy: o Administrative Procedures for procurement of goods & services; 13 Solicitation Thresholds: o RFP or RFQ value of a contract exceeds $100,000 in any fiscal year. These contracts are subject to Board approval before final execution. o Informal Bid Process value of a contract is between $50,000 and $99,999. o An Informal Verbal Proposal value of a contract is between $10,000 and $49,999. o Less than $10,000, no formal or informal bids shall be required, however, staff is directed to seek the best value available 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 38 Item 8: Clean Energy Alliance Administrative & Operational Policies • Non-Energy Procurement Policy: 0 Signature Authority: o Chief Executive Officer authority up to $100,000 for items budgeted • Subject to General Counsel Approval as to Form • New contracts in excess of $50,000 reported to Board o CEO approval for invoices and vendor payments pursuant to CEA Approved Budget. 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 39 Item 8: Clean Energy Alliance Administrative & Operational Policies • Financial Reserve Policy o Based on Board Direction o Establishes goals for Operating reserve o 5% of Revenue contributed annually o Goal of cumulative 25% of Revenue • Strive to achieve cumulative of 40% of Revenue 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 40 Item 8: Clean Energy Alliance Administrative & Operational Policies Board Discussion 7/16/20 CLEAN ENERGY ALLIANCE - DRAFT 41