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Finance, Administration, Procurement Subcommittee
Meeting
Friday, February 18, 2022
10:00 am
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ATTENTION: Consistent with the provisions of Government Code Section 54953 (as amended by AB361), the EBCE Board of Directors and standing committee meetings will be held via teleconference/videoconference only during the current State of Emergency. There will not be a public location for participating in this meeting, but any interested member of the public can participate via Zoom by utilizing the link listed above or telephonically by utilizing the dial-in information listed on this agenda.
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 736-4981 or [email protected]
1. Welcome & Roll Call
2. Public Comment
This item is reserved for persons wishing to address the Board on any EBCE-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. As with all public comment, members of the public who wish to address the Board are customarily limited to three minutes per speaker. The Board Chair may increase or decrease the time allotted to each speaker.
INFORMATIONAL ITEMS:
3. Review EBCE Permitting Process and Intersect Oberon Permitting Status (informational) East Bay Community Energy
Finance, Administrative, Procurement Subcommittee
Page | 2
4. Review of FAP Schedule, Budget Development Schedule, and Upcoming Items (Informational)
5. Review of October – December 2021 Unaudited Financials (Informational)
6. Review and Receive Feedback in Consideration of an Increase in Board and CAC Stipends (informational)
7. Committee Member and Staff Announcements including requests to place items on future Board Agendas
8. Adjournment – to Date: Friday April, 15, 2022
CERTIFICATION OF POSTING
I, Lori Frontella, Acting Board Clerk, do hereby declare under penalty of perjury that the foregoing agenda was posted on website at www.ebce.org and made available for public review to or at 10:00 am on February, 15, 2022.
___________________________________________
Lori Frontella, MMC, Board Clerk
Project
Permitting
Review
FEBRUARY 2022
FAP Agenda Item: 3
Overview of RFO Project Review
• EBCE's RPS and Storage RFOs for long-term PPAs include diligence and review of development status that includes environmental review
• EBCE weights development status at 20% of the total score, this includes the below with equal weighting:
o Environmental Studies
o Permit status
o Interconnection status
o Site Control
o Construction Status
FAP Agenda Item: 3
Permitting/Environmental Impacts Criteria
• Evaluation criteria for permitting and environmental impacts for project scoring
FAP Agenda Item: 3
Project Requirements
• Project Review
o EBCE received bids from projects with a range of development status o Projects that completed all applicable permitting or were advanced in the permitting process were scored more favorably than those in earlier stages of development
• All projects in CA must comply with CEQA guidelines
• Additionally, the Seller must obtain all necessary discretionary and ministerial permits and satisfy requirements from the respective Authority Having Jurisdiction (AHJ) to begin project development and construction. This is a requirement of the AHJ as well as a contractual obligation of all EBCE PPAs. • The pertinent AHJ may be the county, city, or BLM, which all maintain the appropriate depth of knowledge and expertise related to land use and permitting to make the appropriate environmental/permitting determinations FAP Agenda Item: 3
Oberon
Renewable
Energy Project
FAP Agenda Item: 3
Confidential and Proprietary – Intersect Power 2
● Oberon is a 500 MWac solar photovoltaic project combined with 250 MWac of 4-hour battery storage located on BLM land in eastern Riverside County, interconnecting to the SCE Red Bluff Substation ● The project is sited in a Development Focus Area identified through the DRECP, a collaborative effort between the CEC, BLM and NGOs to identify land ideal for solar development
● The project underwent exhaustive CEQA and NEPA reviews over a 15 month period, culminating in the approval of an Environmental Impact Report (CEQA) in Dec 2021 and Environmental Assessment (NEPA) in Jan 2022 by CA agencies and BLM, respectively
● The project will begin construction in summer of 2022 and be online by the end of 2023. Once operational, it will serve 130,000 residential customers annually and displace over 1 million metric tons of CO2, equivalent to taking 235,000 cars off the road each year
Oberon Renewable Energy Project - Introduction
FAP Agenda Item: 3
Confidential and Proprietary – Intersect Power 3
The DRECP
A multi-stakeholder landscape-level planning effort led by the California Energy Commission and the Bureau of Land Management to identify and protect sensitive lands for conservation values and to identify and streamline development for renewable energy development.
In a process that
spanned 15 years, the
unprecedented plan
covers 22.5 million acres
in seven California
counties—Imperial, Inyo,
Kern, Los Angeles,
Riverside, San
Bernardino, and San
Diego.
FAP Agenda Item: 3
Confidential and Proprietary – Intersect Power 4
Oberon Project Summary
The Oberon project represents a long-earned payoff of the DRECP process, as it is one of the first projects to be approved under the DRECP, along with two other projects also just recently approved.
• Sited in a “Development Focus Area” which was designated in the DRECP for solar energy development
• Application area is 4,700 acres, but through an efficient layout, the final design is only 2,600 acres to protect sensitive environmental resources and Native American values • Modular design avoids sensitive resources that occur on site, including prehistoric cultural artifacts, wildlife movement corridors, and sensitive habitats for rare and threatened wildlife species
• A comprehensive CEQA process was conducted by the Colorado River Basin Water Quality Control Board, resulting in project approval in December 2021 • A comprehensive NEPA process was conducted by BLM, resulting in project approval in January 2022
• As part of project approval, the project will permanently protect nearly 6,000 acres of high-quality desert habitat, under a conservation easement and endowed management plan
FAP Agenda Item: 3
Confidential and Proprietary – Intersect Power 5
Project Design Minimally Impacts Sensitive Resources
Cultural
Resources
Avoided
Mycrophyll
Woodlands
and Habitat
Corridors
Avoided
● Project design intentionally avoids 1,100 acres of microphyll woodlands, with direct impact to only 80 acres ● IP Oberon is mitigating this impact at 5:1 ratio by permanently preserving 400 acres of offsite microsphyll woodlands FAP Agenda Item: 3
Confidential and Proprietary – Intersect Power 6
Environmental Design Process
• Over the course of two years, engaged directly with a coalition of NGOs including Audubon Society, NRDC, Sierra Club, Center for Biological Diversity, California Native Plant Society, The Wilderness Society, National Parks Conservation Association, Defenders of Wildlife, and others to address some project design concerns
• Used feedback from NGO coalition to inform project footprint and design to avoid impacts to biological resources, including a habitat type called “microphyll woodlands”
• Final project design avoids highest quality habitat for desert tortoise, nesting birds, rare plants, and avoids all but ~80 acres of microphyll woodlands
• No remaining controversy or opposition to project design remains FAP Agenda Item: 3
Confidential and Proprietary – Intersect Power 7
Road Design Prior to Consultation with NGOs
FAP Agenda Item: 3
Confidential and Proprietary – Intersect Power 8
Road Design After Consultation with NGOs
FAP Agenda Item: 3
Finance and
Budget
Development
Schedule
FEBRUARY 2022
FAP Agenda Item: 4
February 18, 2022
Items included in this meeting are:
1. Current calendar year items (tentative) and schedule All meetings are on Friday at 10am to Noon
• February 18
• April 15
• June 10
• September 16
• October 14
2. Presentation of Budget Development schedule
FAP Agenda Item: 4
Additional Meetings & Expected Items
April Meeting:
1. Lease-leaseback on new building
2. Preliminary Budget details
June Meeting:
1. Credit Facility RFO
2. Budget Review
3. Arrearage Management/Write offs as related to CAPP
September Meeting:
1. Audit progress update
October Meeting:
1. Audit preview prior to Board
FAP Agenda Item: 4
3. Budget Development Schedule
EBCE Fiscal Years are from July 1st through June 30th
Budget cycle includes Budget Approval, Quarterly Reports, Mid-Year Check In, and next year’s Budget Development
FAP Agenda Item: 4
Thank You!
@PoweredbyEBCE
[email protected]
Questions? Give us a call:
1-833-699-EBCE (3223)
Español
ebce.org/es
中文
ebce.org/cn
FAP Agenda Item: 4
1 ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
East Bay Community Energy Authority
Management is responsible for the accompanying special purpose statement of East Bay Community Energy Authority (a California Joint Powers Authority) which comprise the budgetary comparison schedule for the period ended December 31, 2021, and for determining that the budgetary basis of accounting is an acceptable financial reporting framework. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA. We did not audit or review the accompanying statement nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any assurance on this special purpose budgetary comparison statement.
The special purpose statement is prepared in accordance with the budgetary basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. This report is intended for the information of the Board of Directors of the Authority.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
East Bay Community Energy Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
February 8, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com FAP Agenda Item: 5
2021/22 YTD
Budget
2021/22 YTD
Actual
2021/22 YTD
Budget
Variance
Over (Under)
2021/22 YTD
Actual/ Budget
%
2021/22 Annual
Budget
2021/22 Budget
Remaining
REVENUE AND OTHER SOURCES Electricity Sales 261,802,679 $ 243,106,862 $ (18,695,817) $ 93% 508,636,000 $ 265,529,138 $ Uncollectables (5,236,054) (4,862,137) 373,917 0% (8,939,000) (4,076,863) Investment Income 86,321 399,090 (312,769) 22% 798,000 711,679 Other Income - 325,324 325,324 0% 894,000 568,676
Total Revenue and Other Sources 256,965,715 238,656,370 (18,309,345) 93% 501,389,000 262,732,630 EXPENDITURES AND OTHER USESCURRENT EXPENDITURES Cost of energy 235,928,658 247,406,034 (11,477,376) 95% 442,338,000 206,409,342 Data Management/Billing/Customer Service 4,072,814 4,703,315 (630,501) 87% 8,645,000 4,572,186 PG&E Service Fees 1,371,800 1,359,554 (12,246) 99% 2,752,000 1,392,446 Scheduling 332,928 339,588 6,660 102% 843,000 503,412
Personnel 4,710,500 3,614,198 (1,096,302) 77% 9,421,000 5,806,802 Marketing, Outreach, Communications 570,891 807,000 (236,109) 71% 1,614,000 1,043,109 Legal, Policy, & Regulatory Affairs 550,592 796,000 (245,408) 69% 1,592,000 1,041,408 Other Professional Services 425,000 483,163 58,163 114% 850,000 366,837 General & Administrative 1,516,500 1,115,057 (401,443) 74% 3,033,000 1,917,943 Local Development (Transfer to LD Fund Budget) 6,340,000 6,340,000 - 100% 8,475,000 2,135,000 Depreciation 30,000 27,149 (2,851) 90% 60,000 32,851
Total Current Expenditures 268,439,077 254,401,664 (14,037,413) 95% 479,623,000 225,221,336 DEBT SERVICE Interest and Financing Costs 452,669 466,814 14,145 103% 898,000 431,186 Capital expeditures 5,500,000 8,523,207 3,023,207 155% 5,500,000 (3,023,207) Total Debt Service 5,952,669 8,990,021 3,037,352 151% 6,398,000 (2,592,021) Total Expenditures, Other Uses and Debt Service 274,391,746 263,391,685 (11,000,061) 96% 486,021,000 222,629,315 Net Increase (Decrease) in Available Fund Balance (17,426,031) $ $ (24,735,315) $ (7,309,284) 0% 15,368,000 $
EAST BAY COMMUNITY ENERGY AUTHORITY
OPERATING FUND
BUDGETARY COMPARISON SCHEDULE
Six Months Ended December 31, 2021
See accountants' compilation report.
FAP Agenda Item: 5
ACCOUNTANTS’ COMPILATION REPORT
Board of Directors
East Bay Community Energy Authority
Management is responsible for the accompanying financial statements of East Bay Community Energy Authority (a California Joint Powers Authority) which comprise the statement of net position as of December 31, 2021, and the related statements of revenues, expenses, and changes in net position, and the statement of cash flows for the three months and year-to-date then ended in accordance with accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Services Committee of the AICPA.
We did not audit or review the accompanying statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management.
Accordingly, we do not express an opinion, conclusion, nor provide any assurance on these financial statements.
Management has elected to omit substantially all of the note disclosures required by accounting principles generally accepted in the United States of America in these interim financial statements.
East Bay Community Energy Authority’s annual audited financial statements include the note disclosures omitted from these interim statements. If the omitted disclosures were included in these financial statements, they might influence the user’s conclusions about the Authority’s financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters.
We are not independent with respect to the Authority because we performed certain accounting services that impaired our independence.
Maher Accountancy
San Rafael, CA
February 8, 2022
1101 Fifth Avenue, Suite 200 San Rafael, CA 94901 415 459 1249 mahercpa.com FAP Agenda Item: 5
Current assets
Cash and cash equivalents 133,849,036 $
Accounts receivable, net of allowance 50,065,559
Accrued revenue 22,913,797
Other receivables 371,480
Prepaid expenses 2,352,909
Deposits 327,360
Restricted cash 2,000,000
Total current assets 211,880,141
Noncurrent assets
Unrestricted cash and cash equivalents in Rate Stabilization Fund 15,814,000 Restricted cash 7,000,000
Land and construction-in-progress 8,501,268
Capital assets, net of depreciation 117,016
Deposits 6,042,858
Total noncurrent assets 37,475,142
Total assets 249,355,283
Current liabilities
Accrued cost of electricity 52,637,186
Accounts payable 2,823,993
Other accrued liabilities 1,748,350
User taxes and energy surcharges due to other governments 4,309,267 Security deposits - energy suppliers 11,020,000
Total current liabilities 72,538,796
Rate Stabilization Fund 15,814,000
Investment in capital assets 8,618,284
Restricted for collateral 9,000,000
Unrestricted 143,384,203
Total net position $ 161,002,487
NET POSITION
EAST BAY COMMUNITY ENERGY AUTHORITY
STATEMENT OF NET POSITION
As of December 31, 2021
ASSETS
LIABILITIES
DEFERRED INFLOWS OF RESOURCES
See accountants' compilation report. 2
FAP Agenda Item: 5
Quarter Year-to-Date
OPERATING REVENUES
Electricity sales, net 99,515,062 $ 238,244,725 $
Other revenue 162,924 325,324
Total operating revenues 99,677,986 238,570,049
OPERATING EXPENSES
Cost of electricity 104,877,920 235,928,658
Contract services 4,157,423 8,188,250
Staff compensation 1,740,980 3,614,198
General and administration 655,815 1,340,338
Depreciation 14,640 27,149
Total operating expenses 111,446,778 249,098,593
Operating income (loss) (11,768,792) (10,528,544)
NONOPERATING REVENUES (EXPENSES)
Interest income 32,918 86,321
Financing expense (235,917) (466,814)
Nonoperating revenues (expenses), net (202,999) (380,493) CHANGE IN NET POSITION (11,971,791) (10,909,037)
Net position at beginning of period 172,974,278 171,911,524 Net position at end of period $ 161,002,487 $ 161,002,487
EAST BAY COMMUNITY ENERGY AUTHORITY
STATEMENT OF REVENUES, EXPENSES
AND CHANGE IN NET POSITION
Six Months Ended December 31, 2021
See accountants' compilation report.
FAP Agenda Item: 5
Quarter Year-to-Date
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers 116,623,552 $ 246,576,134 $
Other operating receipts 4,662,924 6,612,001
Payments to suppliers for electricity (103,979,797) (217,702,836) Payments for other goods and services (5,406,204) (11,253,528) Payments for staff compensation (1,939,214) (3,561,135) Tax and surcharge payments to other governments (4,417,431) (8,995,113) Net cash provided (used) by operating activities 5,543,830 11,675,523
CASH FLOWS FROM NON-CAPITAL
FINANCING ACTIVITIES
Financing expense payments - (230,897)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Payments to acquire capital assets (39,973) (8,529,617)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income received 32,918 86,321
Net change in cash and cash equivalents 5,536,775 3,001,330 Cash and cash equivalents at beginning of period 153,126,261 155,661,706 Cash and cash equivalents at end of period $ 158,663,036 $ 158,663,036 Reconciliation to the Statement of Net Position
Unrestricted cash and cash equivalents (current) $ 133,849,036 $ 133,849,036 Restricted cash and cash equivalents (current) 2,000,000 2,000,000 Unrestricted cash and cash equivalents (noncurrent) 15,814,000 15,814,000 Restricted cash and cash equivalents (noncurrent) 7,000,000 7,000,000 Cash and cash equivalents $ 158,663,036 $ 158,663,036
Six Months Ended December 31, 2021
STATEMENT OF CASH FLOWS
EAST BAY COMMUNITY ENERGY AUTHORITY
See accountants' compilation report.
FAP Agenda Item: 5
Quarter Year-to-Date
Operating income (loss) (11,768,792) $ (10,528,544) $
Adjustments to reconcile operating income to net
cash provided (used) by operating activities
Depreciation expense 14,640 27,149
Revenue adjusted for allowance for
uncollectible accounts 2,030,917 4,862,135
(Increase) decrease in:
Accounts receivable 4,687,673 (11,016,371)
Market settlements receivable 1,841,016 5,025,941
Other receivables 703,696 336,708
Accrued revenue 6,094,669 5,038,410
Prepaid expenses 637,106 3,894,416
Deposits - (4,741,650)
Increase (decrease) in:
Accrued cost of electricity (2,144,451) 13,821,942
Accounts payable 79,353 (676,777)
Other accrued liabilities (198,234) 52,988
Deferred revenue 1,500 945,177
User taxes due to other governments (122,202) 452,121
Security deposits from energy suppliers 3,686,939 4,181,878 Net cash provided (used) by operating activities 5,543,830 $ $ 11,675,523
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Six Months Ended December 31, 2021
(continued)S
EAST BAY COMMUNITY ENERGY AUTHORITY
See accountants' compilation report.
FAP Agenda Item: 5
Board and CAC
Stipend Review
FEBRUARY 2022
FAP Agenda Item: 6
Introduction
• EBCE provides a stipend to participating Board members and Committee members
• The stipend for Board members was established in section 4.7 of the JPA at $100 per meeting attended, and may be adjusted for inflation but has been unchanged.
“Directors shall receive a stipend of $100 per meeting, as adjusted to account for inflation, as provided for in the Authority's Operating Rules and Regulations.” • A stipend for the Community Advisory Committee is permitted by the JPA and was established at $50 per meeting through Board resolution R-2018-17 in April of 2018, and been in place and unchanged since.
FAP Agenda Item: 6
Surveyed CCA’s and Other Public Agencies
CCA's Surveyed Stipend Provided Amount Other Notes
Central Coast Community Energy N - - Disbanded in 2019
Clean Power Alliance N - -
Clean Power San Francisco N - - Governed by SFPUC Board Marin Clean Energy N - -
Orange County Power Authority Y - 212.50 Up to 6 per month Peninsula Clean Energy N - -
San Diego Clean Power N - - To be determined
San Jose Clean Energy N - - Governed by City of San Jose Board Silicon Valley Clean Energy N - -
Sonoma Clean Power N - -
Other Agencies Surveyed
AC Transit Y 1,000.00 - Monthly
BART Y 18,037.00 15.00 Annual plus transportation per meeting SMUD Y - 275.00 Meeting
Stop Waste Y - 150.00 Meeting
FAP Agenda Item: 6
Proposed Options – Board
Board Director Stipend Options
• Increase stipend to $200 per meeting. An increase of this nature would likely require JPA amendment
• Increase stipend to inflation adjusted amount. Would require Board guidance on adjustments and resolution. Depending upon guidance, an example of retroactive adjustments from 2018 at 2.5% would increase the stipend to $110.38.
• Leave stipend unchanged at $100. No additional action required.
FAP Agenda Item: 6
Proposed Options - CAC
CAC Member Stipend Options
• Increase stipend to $100 per meeting. An increase of this nature would require the adoption of a new resolution at a board meeting. • Increase stipend to inflation adjusted amount. Would require Board guidance on adjustments and resolution.
• Leave stipend unchanged at $50. No additional action required.
FAP Agenda Item: 6
Thank You!
@PoweredbyEBCE
[email protected]
Questions? Give us a call:
1-833-699-EBCE (3223)
Español
ebce.org/es
中文
ebce.org/cn
FAP Agenda Item: 6