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HomeMy WebLinkAbout2021-01-21; Clean Energy Alliance JPA; ; Fiscal Year 2021/22 Budget Planning - Review Existing Consulting Services Agreements and Provide Direction Regarding Staffing and Consulting Services41111w- CLEAN ENERGY ALLIANCE Staff Report DATE: January 21, 2021 TO: Clean Energy Alliance Board of Directors FROM: Barbara Boswell, Interim Chief Executive Officer ITEM 9: Fiscal Year 2021/22 Budget Planning - Review Existing Consulting Services Agreements and Provide Direction Regarding Staffing and Consulting Services RECOMMENDATION Provide direction regarding fiscal year 2021/22 staff and consulting services for purposes of budget development. BACKGROUND AND DISCUSSION Clean Energy Alliance's (CEA) operational, administrative and technical support is currently provided through a combination of limited member agency support and contracted consulting services. This approach has worked well while CEA has been in its initial formation phase. CEA has not yet established a physical location, and the use of consulting services has provided the Board flexibility in adjusting service levels to meet needs and funding available. As the budget development for fiscal year 2021/22 begins, staff is seeking Board direction regarding whether the Board is interested in moving to hiring of permanent staff or continuing with the current consulting services-based structure. Current Services Provided by Member Agencies CEA has entered into agreements with the cities of Carlsbad, Del Mar and Solana Beach to assist with certain administrative activities. During the past year the level of service provided has diminished as tasks have transitioned to CEA's consulting services team. Services currently being provided by Member Agencies include: January 21, 2021 Fiscal Year 2021/22 Budget Planning Page 2 of 4 SERVICE CITY FY 2020/21 Services FY 21/22 Interim Board Secretary Carlsbad Interim Board Secretary Board Clerk for meetings and records management Interim Board Secretary only; CEA to establish its own records management system Accounting Services Solana Beach Solana Beach staff provides accounting assistance with processing payments Accounting Services — provides internal controls for issuing payments Hosting of Board Meetings Carlsbad Del Mar Solana Beach - Cities have assisted with broadcasting and recording of virtual meetings — activities are transitioning to CEA Communications team; In person meetings would require assistance from host city for broadcasting. Posting of agenda; Assistance with setting up council chambers and broadcasting when in- person meetings resume CEA staff has reached out to Carlsbad to gauge the capacity for the City to continue to fill the Board Secretary role. CEA has contracted for Interim Board Clerk services which has resulted in minimizing the impact of Carlsbad providing the Interim Board Secretary services as well as reducing the impact to cities of hosting CEA Board meetings. CEA staff plans to include funding in the fiscal year 2021/22 budget for CEA to establish its records management system, which will further reduce Carlsbad staff time in supporting CEA. Under the current stay-at-home orders, CEA Board meetings are being held virtually with broadcasting and recording being handled remotely. Once CEA returns to in-person Board meetings CEA staff will coordinate with the host cities to determine the process for broadcasting with the goal of minimizing the impact on the host city staff. Current Consulting Agreements and Term The following chart lists details on existing consulting services agreements: January 21, 2021 Fiscal Year 2021/22 Budget Planning Page 3 of 4 CONSULTANT SERVICE FY 20/21 NOT TO EXCEED $ TERM Administrative Support Services Bayshore Consulting Group, Inc. Interim Chief Executive Officer $100,000 Through June 30, 2021; may be extended through mutual agreement Bayshore Consulting Group Interim Board Clerk $18,000 January—June 2021; may be extend through mutual agreement; Marie Marron Berkuti Interim Chief Financial Officer/Treasurer $10,000 September 2020 — June 30, 2021; may be extend through mutual agreement Total Administrative Support Services $128,000 Technical Support Services Pacific Energy Advisors Technical Consultant #1 $163,200 Through June 30, 2021; may be extended through mutual agreement Pacific Energy Advisors Portfolio Management Services $120,000 Through June 30, 2023 Total Technical Support Services $283,200 Communications & Marketing Services Tripepi Smith Communications & Marketing Services $92,238 September 2020 — June 30, 2021; may be extended through mutual agreement Legal Services Richards, Watson & Gershon General Counsel $120,000 Through June 30, 2021; may be extended through mutual agreement Tosdal, APC Special Counsel — Regulatory Affairs $100,000 Through June 30, 2021; may be extended through mutual agreement Total Legal Services $220,000 January 21, 2021 Fiscal Year 2021/22 Budget Planning Page 4 of 4 Service Needs Anticipated for Fiscal Year 2021/22 With the pending launch of CEA in May 2021, CEA will continue to require the services listed above, as well as have additional needs related to moving into its operational phase. It is anticipated that CEA will have need for procurement and contract administration and customer account services. Procurement and contract administration includes working with Pacific Energy Advisors (PEA) in solicitation of energy supply products (long-term and short-term renewable, resource adequacy, and conventional), and CEA handling CEA non-energy procurement activities. Customer account services includes working with CEA's data manager on customer concerns and issues, responding to customer questions, coordinating with the communications and marketing team for on-going customer outreach and any other marketing needs on an as needed basis. These tasks could be filled through additional contractual agreements or hiring of permanent staff. If the CEA Board desires to hire permanent staff the following staffing plan is recommended: •Initial recruitments and hiring: o Chief Executive Officer o Chief Financial Officer/Treasurer •Subsequent recruitments after CEO and CFO are hired o Procurement & Contract Administrator o Customer Account Services Coordinator The services of a professional recruiter would be needed to lead the hiring processes for CEA. Recent versions of the CEA financial pro-forma, which is currently scheduled to be updated and presented to the Board at its February 18, 2021 meeting, anticipates increasing costs related to the additional services needed to support CEA's operations in fiscal year 2021/22. Should the CEA Board provide direction to pursue extension of existing consulting services, staff will work with the firms to bring updated terms to the Board for approval at the April 15, 2021 meeting. FISCAL IMPACT Direction provided by the CEA Board will be used in developing the proposed FY 2021/22 budget and for preparation of the updated pro-forma to be presented to the Board at its February 2021 meeting. ATTACHMENTS None