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Home My WebLink About2022-06-30; Clean Energy Alliance JPA; ; Consider Resolution 2022-003 Approving Clean Energy Alliance Proposed Fiscal Year 2022/23 Budget~ CLEAN ENERGY ALLIANCE Staff Report DATE: June 30, 2022 TO: FROM: Clean Energy Alliance Board of Directors Barbara Boswell, Interim Chief Executive Officer ITEMS: Consider Resolution 2022-003 Approving Clean Energy Alliance Proposed Fisca l Year 2022/23 Budget RECOMMENDATION Adopt Resol ution 2022-003 approving Clean Energy Alliance Proposed Fiscal Year 2022/23 Budget. BACKGROUND AND DISCUSSION At its May 26, 2022, regular meeting, the Clean Energy Alliance (CEA) Board reviewed the proposed Fiscal Year (FY) 2022/23 Budget and provided input. Based on the input from the CEA Board, staff has revised the proposed budget as reflected below. The proposed FY 22/23 budget (detail below) reflects service expansion into the cities of Escondido and San Marcos, addition of new positions, projected power supply costs based on current forward price curves and existing contracts, on-going regulatory compliance requirements and professional and legal services required to support operations. The following assumptions were used to develop the proposed budget: • Revenue based on current adopted rates; • Power supply costs based on actual executed contracts and May forward price curves; • Consulting services based on approved contracts. The FY 22/23 proposed budget was based on the following priorities and goals: ► Financial Stability ► Meeting Regulatory Compliance ► Successful Expansion to Escondido and San Marcos The chart below compares the initial Proposed FY 22/23 Budget to the updated Proposed FY 22/23 Budget: June 30, 2022 Proposed FY 22/23 Budget Page 2 of3 Initial Proposed FY Updated Proposed Variance 22/23 Budget FY 22/23 Budget Proj ected Revenue $80,791,405 $80,791,405 $0 Proj ected Expenditures $78,383,015 $76,745,240 ($1,637,775) Net Results $2,408,390 $4,046,165 $1,637,775 The updated Proposed FY 22/23 red uces expenditures by $1,637,775 resulting in an increase to net results to $4,046,165, meeting CEA's reserve policy of an annual 5% contribution. Changes to the proposed expenditures include: Initial Updated Proposed FY Proposed FY Notes 22/23 Budget 22/23 Budget Reduction based on FY 21/22 actuals compared to forward Power Supply $74,134,855 $73,000,000 price curves Re duction based on maintaining Interim CFO and Interim Secretary and partial year funding of remaining new Staffing/Consultants $985,280 $529,360 positions Reduction based on year-to-date Legal Services $390,000 $335,000 FY 21/22 Actuals Professional Increase for funding of contract Services $963,600 $981,600 Interim CFO Reduction based on year-to-date Audit Services $15,000 $10,000 FY 21/22 Actuals Reduction based on year-to-date Insurance $35,000 $30,000 FY 21/22 Actuals New posit ions included in Proposed FY 22/23 Budget: • Account Services/Programs Manager • Procurement Manager • Regu latory Analyst A further description of the proposed positions and responsibilities follows: Account Services/Program Manager June 30, 2022 Proposed FY 22/23 Budget Page 3 of3 The Account Services/Program Manager position will be responsible for establishing and maintaining relationships with key accounts, managing the service expansion efforts, and coordinating marketing and outreach, researching, and pursuing funding opportunities and developing CEA programs. Procurement Manager The Procurement Manager position will be responsible for energy and non-energy procurements, establishing and monitoring CEA's Supplier Diversity program to ensure compliance with requirements and contracts administration. Regulatory Analyst The Regulatory Analyst position will be responsible for legislative and regulatory advocacy, monitoring legislation and developing positions related to proposed legislation and intergovernmental relations. FISCAL IMPACT Revenue from energy sales to customers provides sufficient funds for the proposed expenditures with excess going into reserves. ATTACHMENTS Resolution 2022-003 approving Clean Energy Alliance Fiscal Year 2022/23 Budget OocuSign Envelope 10: 457685F7-82CF-4529-9FOF-O0F1585E3A87 CLEAN ENERGY ALLIANCE RESOLUTION NO. 2022-003 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CLEAN ENERGY ALLIANCE ESTABLISHING FISCAL YEAR 2022/23 BUDGET WHEREAS, the Clean Energy Alliance (CEA) is a joint powers agency, formed in November 2019; and WHEREAS, Section 4.6.1 of the Joint Powers Authority (JPA) Agreement establishes the specific responsibility of the CEA Board of Directors to adopt an annual budget prior to commencement of the fiscal year; and WHEREAS, the CEA Board desires to establish the Fiscal Year 2022/23 Budget. NOW, THEREFORE, BE IT RESOLVED, by the Board of Directors of the Clean Energy Alliance, as follows: Section 1. The Board of Directors of the Clean Energy Alliance hereby sets the Fiscal Year 2022/23 Budget detailed in Exhibit A. The foregoing Resolution was passed and adopted this 30th day of June 2022, by the following vote: AYES: Musgrove, Inscoe, Acosta, Druker, Becker NOES: None ABSENT: None APPROVED: r~;'oMu-L 7E04F23CDM04F8 .. Kristi Becker, Chair ATTEST: ~DocuSlgned by: ~:::B~B::A~ Sheila Cobian, Board Secretary 1 Resolution Exhibit A Clean Energy Alliance REVENUE Energy Sales Revenue Interest Income Funds provided by Financing REVENUE TOTAL EXPENDITURES Power Supply Data Management/Call Center Staffing/ Cons u I ta nts Legal Services Professional Services Audit Services Software & Licenses Memberships & Dues Printing Postage Advertising Insurance Bank Fees Debt Service TOTAL PROJECTED BUDGET Net Results of Operations Beginning Fund Balance Ending Fund Balance FY 22/23 Proposed Budget -Summary $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 80,786,405 5,000 80,791,405 73,000,000 1,151,180 529,360 335,000 981,600 10,000 15,100 121,000 55,000 50,000 15,000 30,000 2,000 450,000 76,745,240 4,046,165 3,210,940 7,257,105 Item 8: Proposed FY 2022/23 Budget • Recommendation: • Adopt Resolution 2022-003 approving FY 2022/23 Budget. 6/30/22 CLEAN ENERGY ALLIANCE 14 Item 8: Proposed FY 2022/23 Budget • FY 22/23 Proposed Budget Assumptions • Reve·nues based on current adopted rates • Power supply costs based on actual executed contracts and May forward price curve • Consulting Services based on approved contracts • Priorities & Goals • Financial Stability • Regulatory Compliance • Successful Expansion in Escondido and San Marcos CLEAN ENERGY A L LIANCE 6/30/22 15 Item 8: Proposed FY 2022/23 Budget • May 26, 2022 • Board reviewed Proposed FY 2022/23 & provided direction • Staff revised Proposed Budget based on Board direction Projected Revenue Projected Expenditures Net Results 6/30/22 Initial Proposed FY 22/23 Budget $80,791,405 $78,383,015 $2,408,390 Updated Proposed FY 22/23 Budget Variance $80,791,405 ~--. $0 $76,745,240 ($1,637,775) $4,046,165 $1,637,775 CLEAN ENERGY ALLIANCE 16 Item 8: Proposed FY 2022/23 Budget Power Supply Legal Services Professional Services Audit Services Insurance 6/30/22 Initial Proposed FY 22/23 Bud et $74,134,855 $985,280 $390,000 $963,600 $15,000 $35,000 Updated Proposed FY 22 23 Bud et Notes Reduction based on FY 21/22 actuals compared to forward price $73,000,000 curves Reduction based on maintaining Interim CFO and Interim Secretary and partial year funding of $529,360 remaining new positions Reduction based on year-to-date $335,000 FY 21/22 Actuals Increase for funding of contract $981,600 Interim CFO Reduction based on year-to-date $10,000 FY 21/22 Actuals Reduction based on year-to-date $30,000 FY 21/22 Actuals CLEAN ENERGY ALLIANCE 17 Item 8: Proposed FY 2022/23 Budget • Proposed New Positions • Accounts Services/Program Manager • Procurement Manager • Regulatory Analyst 6/30/22 CLEAN ENERGY ALLIANCE 18 Item 8: Proposed FY 2022/23 Budget 6/30/22 REVENUE --- Energy Sales Revenue Interest Income Funds provided by Financing REVENUE TOTAL EXPENDITURES Power Supply Data Management/Call Center Staffing/Consultants Legal Services Professional Services Audit Services Software & Licenses Memberships & Dues Printing Postage Advertising Insurance Bank Fees Debt Service TOTAL PROJECTED BUDGET Net Results of Operations Beginning Fund Balance Ending Fund Balance FY 22/23 Proposed Budget -Summary $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ 80,786,405 5,000 80,791,405 73,000,000 1,151,180 529,360 335,000 981,600 10,000 15,100 121,000 55,000 50,000 15,000 30,000 2,000 450,000 76,745,240 4,046,165 3,210,940 7,257,105 • Balance Budget • Proposed Budget results in 5% Reserve Contribution • Meets Reserve Policy CLEAN ENERGY ALLIANCE 19