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Home My WebLink About2020-12-17; Clean Energy Alliance JPA; ; Clean Energy Alliance Treasurer's ReportClean Energy Alliance JOINT POWERS AUTHORITY Staff Report DATE: December 17, 2020 TO: Clean Energy Alliance Board of Directors FROM: Marie Marron Berkuti, Interim Treasurer ITEM 2: Clean Energy Alliance Treasurer's Report RECOMMENDATION Receive and File Clean Energy Alliance (CEA) Interim Treasurer's Report for November 2020 BACKGROUND AND DISCUSSION Generally Accepted Accounting Principles (GAAP) requires local governments, like the CEA, to use the enterprise fund type to account for "business-type activities" — activities similar to those found in the private sector. Financial statements in the Treasurer's Report for November have been updated, or new ones added, to incorporate the enterprise fund, or full accrual basis, type of accounting in reporting financial activity for the CEA through November 30, 2020: •Statement of Financial Position — Reports assets, liabilities, and financial position of the CEA as of November 30, 2020 (updated report format) •Statement of Revenues, Expenses and Changes in Net Position for the five months ended November 30, 2020 (new report) •Budget to Actuals Comparison Schedule — Reports actual revenues and expenditures compared to the adopted budget as of November 30, 2020 (updated report format to move non-revenue and non-expense category transactions to sources and uses of funds e.g., financing activities) •Budget Reconciliation to Statement of Revenues, Expenses and Changes in Net Position (new report that reconciles the net increase (decrease) per the Budget to Actuals Comparison Schedule to Net Position) •List of Payments Issued — Reports payments issued for November 30, 2020 (no change) As of November 30, 2020, 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 the CEA for the period November 2019 to June 2020. These invoices are scheduled to be paid once the CEA is operational. December 17, 2020 Treasurer's Report Page 2 of 5 NOVEMBER 30, 2020 REPORTS STATEMENT OF FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF NET POSITION As of November 30, 2020 ASSETS Current Assets Cash Operating Account 47,519.39 Total Current Assets 47,519.39 Noncurrent Assets Deposits CCA Bond 100,000.00 Cash Collateral Deposits-SDG&E 240,000.00 Total Noncurrent Assets 340,000.00 Total Assets 387,519.39 LIABILITIES Current Liabilities Accounts Payable 81,939.49 Total Current Liabilities 81,939.49 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 Calpine Promissory Note 373,968.75 Total Noncurrent Liabilities 877,986.20 Total Liabilities 959,925.69 NET POSITION Unrestricted (deficit) (572,406.30) Total Net Position $ (572,406.30) December 17, 2020 Treasurer's Report Page 3 of 5 STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FINANCIAL POSITION CLEAN ENERGY ALLIANCE STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION For the five months ended November 30, 2020 Operating Revenues Operating Expenses Professional Services 266,026.36 Marketing 27,695.57 Total Operating Expenses 293,721.93 Operating Income (Loss) (293,721.93) Change in Net Position (293,721.93) Net Position at beginning of period (278,684.37) Net Position at end of period $ (572,406.30) BUDGET TO ACTUALS COMPARISON SCHEDULE At its August 20, 2020 board meeting, the CEA Board approved a Promissory Note with Calpine Energy Solutions for $400,000 to provide funding for the FY 2020/21 budget through February 2021. A second Promissory Note with Calpine for $250,000 was approved by the CEA Board at the November 19, 2020 board meeting to provide funding for the Financial Security Requirement and the cash collateral deposits required as part of the resource adequacy procurements. Total drawdowns against the Promissory Notes as of November 2020 equal $373,968.75. CEA is still working towards obtaining the remaining CEA start- up funding from the proposed credit solution. 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 bringing the amended adopted budget total to $4,153,500. Of its approved $4,153,500 amended budgeted operating expenditures and uses of funds, $533,721.93 has been expended, leaving $3,619,778.07 December 17, 2020 Treasurer's Report Page 4 of 5 CLEAN ENERGY ALLIANCE BUDGET TO ACTUALS COMPARISON SCHEDULE For the five months ended November 30, 2020 Operating Expenses Professional Services AMENDED BUDGET ACTUALS VARIANCE Administrative $ 120,000.00 $ 49,142.43 $ 70,857.57 Legal 320,000.00 114,581.68 205,418.32 Technical 198,200.00 100,702.25 97,497.75 Ma rketing 92,238.00 27,695.57 64,542.43 Audit 40,000.00 40,000.00 Other 19,562.00 1,600.00 17,962.00 Total Professional Services 790,000.00 293,721.93 496,278.07 Print/Mail Services 132,000.00 - 132,000.00 Membership Dues 15,000.00 15,000.00 Graphic Design Services 10,000.00 - 10,000.00 Advertising 10,000.00 10,000.00 Website Maintenance 2,500.00 2,500.00 Total Operating Expenses 959,500.00 293,721.93 665,778.07 Other Sources and Uses Sources Credit Solution 3,606,500.00 3,606,500.00 Calpine Promissory Note 650,000.00 373,968.75 276,031.25 Total Sources 4,256,500.00 373,968.75 3,882,531.25 Uses CCA Bond 47,000.00 47,000.00 CAISO Deposit 500,000.00 500,000.00 Lock Box Reserves/Cash Flow 2,500,000.00 2,500,000.00 Collateral Depos its-SDG&E 240,000.00 (240,000.00) Financial Security Requirement 147,000.00 147,000.00 Total Uses 3,194,000.00 240,000.00 2,954,000.00 Total Sources and Uses 1,062,500.00 133,968.75 928,531.25 Net Increase (Decrease) in Available Fund Balance $ 103,000.00 $ (159,753.18) $ 262,753.18 Total Operating Expenses and Uses of Funds 4,153,500.00 533,721.93 3,619,778.07 December 17, 2020 Treasurer's Report Page 5 of 5 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 five months ended November 30, 2020 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 Subtract Advances from Calpine Promissory Note Add back Collateral Deposits-SDG&E $ (159,753.18) (373,968.75) 240,000.00 Change in Net Position $ (293,721.93) LIST OF PAYMENTS ISSUED The report below provides the detail of payments issued by CEA for November 2020. All payments were within approved budget. Clean Energy Alliance List of Payments Issued November 2020 Date Via Vendor Description Amount 11/05/2020 Wire SDG&E Cash Collateral Deposits $ 100,000.00 11/05/2020 Wire SDG&E Cash Collateral Deposits 140,000.00 11/30/2020 ACH Richards, Watson & Gershon Sep 2020 General Counsel Svcs 5,996.50 11/30/2020 ACH Tosdal APC Oct 2020 Regulatory Counsel Svcs 6,022.96 11/30/2020 ACH Hall Energy Law PC Oct 2020 Energy Procurement Counsel Svc 4,641.00 11/30/2020 ACH Pacific Energy Advisors, Inc Oct 2020 Technical Consulting Svcs 23,600.00 11/30/2020 ACH Keyes & Fox LLP Oct ERRA Forecast Counsel Services 4,061.50 11/30/2020 ACH Tripepi, Smith & Associates, Inc. Oct 2020 Retainer 9,223.75 11/30/2020 ACH Bayshore Consulting Group, Inc Oct CEO Services 1,91150 Total November Payments $ 295,458.21 FISCAL IMPACT There is no fiscal impact associated with this item.