California Choice Energy Authority
Board of Directors Regular Meeting Agenda
October 7, 2026, 1:00 p. m.
City of Pico Rivera, City Council Chamber
6615 S. Passons Blvd, Pico Rivera, CA. 90660
Members of the public can observe the livestream of the meeting via Zoom by clicking:
https://cityoflancasterca-gov.zoom.us/j/89080929282
or telephonically by dialing:
(253) 215-8782
Meeting ID: 890 8092 9282
This meeting will be held in person. As a convenience for the public, the meeting may also be accessed by Zoom and will be available by computer or telephone audio as indicated above. Because this is an in-person meeting and the virtual component is not required, but rather is offered as a convenience, if there are any technical issues during the meeting, this meeting will continue and will not be suspended.
Members of the public may also participate in this meeting at the following locations:
Members of the public can provide public comments in writing or orally in person as follows:
Written Comments: If you are unable to participate in person and you wish to make a comment, you may submit written comments up to 4 hours prior to the meeting via email to:
[email protected]. All written comments will be posted online and become part of the meeting record. Public comments received in writing will not be read aloud at the meeting.
Oral Comments: Members of the public can address the Board on items on the agenda at the time the item is being addressed or during Public Comments for topics that are not listed on the agenda. Speakers are limited to three (3) minutes each. In conformance with the Brown Act, no Board action can occur on items presented during Public Comment.
If you desire to speak during Public Comment and are in person, please fill out a speaker card and submit it to CalChoice staff. If you are participating in a remote location, please identify yourself with a CalChoice representative. When you are called to speak, please come forward to the podium and state your name. To address the Board regarding an item on the agenda, please fill out a speaker card and submit it to the Board Secretary before the Board Chair announces the item.
City of Rancho Mirage
Conference Room 3
69825 Highway 111
Rancho Mirage, CA 92270
BOARD OF DIRECTORS
Santa Barbara Clean Energy
Alelia Parenteau, Chair
Rancho Mirage Energy Authority
Jessica Pulliam, Vice Chair
Apple Valley Choice Energy
Guy Eisenbrey
Energy for Palmdale’s
Independent Choice
Janelle Samson
Lancaster Energy
George Harris
Pico Rivera Innovative
Municipal Energy
Steve Carmona
Pomona Choice Energy
Chris Diggs
San Jacinto Power
Tom Prill
CALL TO ORDER
ROLL CALL
FLAG SALUTE
BOARD COMMENTS & ANNOUNCEMENTS
PUBLIC COMMENT
PRESENTATIONS
Community Benefits Presentation – Matt Messina, Calpine Local Energy Project Development Assessment Study Update – John Dalessi, Pacific Energy Advisors Legislative Update – Charles Wright, Deveau Burr Group
Consent Calendar
Item 1: Approve Minutes from August 5, 2026 Regular Board Meeting
RECOMMENDATION
Approve Minutes of August 5, 2026 Regular Board Meeting.
Item 2: Receive and File Treasurer’s Report for Preliminary, Unaudited Period Ending August 31, 2026
RECOMMENDATION
Receive Treasurer’s Report for period ending August 31, 2026.
New Business
Item 3: Consider Approval of Travel and Expense Reimbursement Policy
RECOMMENDATION
Approve Travel and Expense Reimbursement Policy.
Item 4: Discuss and Provide Direction Regarding a New Member Policy
RECOMMENDATION
Discuss and provide direction regarding a New Member Policy.
Item 5: Consider Authorization of Professional Consulting Services Agreement with Frontier Energy for the Implementation and Administrative Support Services for the Joint CCA Energy Efficiency Elect to Administer Program
RECOMMENDATION
Authorize Professional Consulting Services Agreement with Frontier Energy (Frontier) for Implementation and Administrative Support Services for the Joint CCA Energy Efficiency Elect to Administer (EE ETA), for an amount not to exceed $229,730, and authorize the Interim Chief Executive Officer to execute the related documents. 2 Item 6: Consider Approval of Recommendation from Communications Ad-Hoc Subcommittee Related to the Provision of Communications Services Effective in Fiscal Year 2027/2028
RECOMMENDATION
Approve recommendation from the Communications Ad-Hoc Subcommittee related to the provision of communications services as follows:
1. Reduce the FY 2027/28 Marketing and Communications budget to $20,000.
2. Direct staff to evaluate options for website management and return to the Board with a recommendation to include:
• The cost of independently procuring domain registration, hosting, SSL certificates, and website platform/software services and transferring these items to CalChoice independent of Lancaster.
3. Direct staff to schedule a future agenda item to discuss consideration of using CalChoice Member in-house graphic design services for regulatory required communications.
Item 7: Consider Providing Authorization to Evaluate an Energy Prepayment Financing Program and Solicitation of Specialized Financial and Legal Advisory Services
RECOMMENDATION
Staff recommends that the Board of Directors:
1. Authorize staff to proceed with a feasibility and structuring analysis for a potential energy prepayment financing program;
2. Authorize staff to issue solicitations and/or requests for proposals or qualifications, consistent with CalChoice procurement requirements, for the specialized professional services necessary to evaluate and develop a potential transaction, including:
• an independent Municipal Advisor experienced in tax-exempt energy prepayment transactions; and
• specialized Energy Prepayment/Tax Counsel experienced in municipal energy prepayment transactions;
3. Authorize staff, with assistance from the selected Municipal Advisor and legal counsel, to evaluate CalChoice’s existing energy portfolio and potential transaction structures, including participation through the California Community Choice Financing Authority (“CCCFA”); and
4. Direct staff to return to the Board with the results of the feasibility analysis, estimated costs and savings, identified risks, recommended transaction structure, proposed participating Members, and any additional approvals necessary before CalChoice commits to or closes an energy prepayment financing transaction
3 Item 8: Receive Programs Update
RECOMMENDATION
Receive Programs Update
Item 9: Receive General Manager Update
RECOMMENDATION
Receive General Manager update.
Item 10: Receive Interim Chief Executive Officer Update
RECOMMENDATION
Receive Interim Chief Executive Officer update.
Item 11: General Counsel Update
RECOMMENDATION
Receive update from General Counsel.
RECESS TO CLOSED SESSION
Item 12: Pursuant to Government Code Section 54957(b)(1):
PUBLIC EMPLOYMENT
Title: Chief Executive Officer
RECONVENE TO OPEN SESSION
GENERAL COUNSEL ANNOUNCEMENT
Item 13: Consider Approval of Appointment or Direction Related to Chief Executive Officer Position
RECOMMENDATION
Approve appointment or provide direction related to the Chief Executive Officer position.
BOARD MEMBER QUESTIONS
BOARD MEMBER REPORTS ON CALCHOICE RELATED TRAVEL
BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS
4 NEXT MEETING: Regular Board Meeting Wednesday December 2, 2026, 1:00 p.m., City of Rancho Mirage
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”), please contact [email protected] prior to the meeting for assistance.
5 STAFF REPORT
California Choice Energy Authority
10/7/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Kevin Tonoian, Interim Board Secretary
Item 1: Consider Approval of Minutes – Regular Board Meeting of August 5, 2026 Recommendation:
Approve minutes of Regular Board Meeting of August 5, 2026
Fiscal Impact:
There is no fiscal impact to California Choice Energy Authority.
Attachment:
Attachment – Regular Board Meeting Minutes of August 5, 2026 6 California Choice Energy Authority
Board of Directors Regular Meeting Minutes
August 5, 2026, 1:00 p.m.
City of Santa Barbara, Conference Room #15
735 Anacapa St, Santa Barbara, CA 93101
Alternate Locations:
CALL TO ORDER: The regular meeting of the California Choice Energy Authority was called to order by Chair Harris at 1:10 p.m.
ROLL CALL: All cities were represented as follows: Town of Apple Valley, Guy Eisenbrey; City of Lancaster, George Harris; City of Palmdale, Janelle Samson; City of Pico Rivera, Steve Carmona; City of Pomona, Chris Diggs; City of Rancho Mirage, Jessica Pulliam; City of San Jacinto, Tom Prill; City of Santa Barbara, Alelia Parenteau.
FLAG SALUTE: Board Member Parenteau led the flag salute Board Reorganization
Chair (2026–2028 Term): Outgoing Chair Harris opened nominations for Chair. Motion by Board Member Eisenbrey, second by Board Member Samson, to appoint Board Member Parenteau as Chair. Motion approved unanimously on roll call vote; Parenteau elected Chair for the 2026–2028 term.
Vice Chair (2026–2028 Term): Newly elected Chair Parenteau opened nominations for Vice Chair. Motion by Board Member Harris, second by Board Member Pulliam, to appoint Board Member Prill as Vice Chair; Prill declined the nomination.
Motion by Board Member Harris, second by Board Member Eisenbrey, to appoint Board Member Pulliam as Vice Chair. Motion approved unanimously on roll call vote; Pulliam elected Vice Chair for the 2026– 2028 term.
BOARD COMMENTS & ANNOUNCEMENTS: None.
PUBLIC COMMENT: No members of the public requested to speak, in person or by teleconference.
City of Pico Rivera City Hall
Main Conference Room
6615 Passons Blvd.,
Pico Rivera, CA 90660
City of Pomona Water
Resources Dept
Conference Room
752 W Commercial Street
Pomona CA 91768
City of San Jacinto City
Hall
595 S. San Jacinto Ave
San Jacinto, CA. 92583
7 Item 1 - Attachment
PRESENTATIONS: GFOA Certificate of Achievement — Treasurer Barbara Boswell reported CalChoice received the GFOA Certificate of Achievement for Excellence in Financial Reporting for its June 30, 2025 Annual Comprehensive Financial Report.
Consent Calendar
No items were pulled from the Consent Calendar for separate discussion.
Item 1: Approve Minutes from May 19, 2026 Regular Board Meeting
RECOMMENDATION
Approve Minutes of May 19, 2026 Regular Board Meeting.
Item 2: Receive Treasurer’s Report for period ending June 30, 2026
RECOMMENDATION
Receive Treasurer’s Report for period ending June 30, 2026.
Item 3: Consider Approval of First Amendment to Agreement with City of San Jacinto for Interim Chief Executive Officer
RECOMMENDATION
Approve the First Amendment to the Agreement with the City of San Jacinto for Interim Chief Executive Officer services, extending the term through December 31, 2026, retroactively effective July 1, 2026, for an additional amount not to exceed $72,000, for an aggregate agreement amount not to exceed $216,000 ($144,000 in FY 2025/26 and $72,000 in FY 2026/27); and authorize the Treasurer to execute all documents, subject to General Counsel approval.
No requests to speak on the Consent Calendar were received.
Motion by Board Member Harris, second by Board Member Eisenbrey, to approve Items 1, 2, and 3 of the Consent Calendar.
Motion approved unanimously on roll call vote.
New Business
Item 4: Consider Approval of Customer in Good Standing Policy for Power Choice Program
RECOMMENDATION
Approve the Customer in Good Standing Policy for Power Choice Program. 8 Programs Manager Kathy Wells presented the item.
Board discussion followed regarding treatment of past due balances under the blended PPA rate, voting eligibility for members without an active Power Choice program, and the basis for the $2,500 delinquency threshold. Staff confirmed validation would be handled within Calpine’s existing contract at no additional cost.
No requests to speak were received.
Motion by Board Member Harris, second by Vice Chair Pulliam, to approve the recommendation.
Motion approved unanimously on roll call vote.
Item 5: Consider Approval of Professional Services Agreement with Pacific Energy Advisors, Inc. for the Local Energy Project Development Assessment: Preliminary Study
RECOMMENDATION
Approve a Professional Services Agreement with Pacific Energy Advisors, Inc. (PEA) for the Local Energy Project Development Assessment: Preliminary Study, in an amount not to exceed $40,000, effective upon execution by both Parties, with a term through June 30, 2027; and authorize the Interim Chief Executive Officer, or his designee, to execute the Agreement and any related documents in substantially the form presented, subject to final approval as to form by Authority Counsel.
Regulatory and Procurement Analyst Kevin Tonoian presented the item.
Board discussion followed regarding whether individual member cities could benefit from phase one deliverables independent of a future phase two; staff confirmed member cities would retain the work product.
No requests to speak were received.
Motion by Board Member Eisenbrey, second by Board Member Harris, to approve the recommendation.
Motion approved unanimously on roll call vote.
Item 6: Receive Update Regarding Distributed Energy Resource Management System (DERMS) and Consider Providing Direction to Staff
RECOMMENDATION
Receive update regarding Distributed Energy Resource Management System (DERMS) and consider providing direction to staff that may include: directing staff to continue working with the Programs Advisory Committee to evaluate the Serious Controls DERMS platform and return with a recommendation; approving a Master Services Agreement with Lunar Energy, Inc. for DERMS and design of a future demand response program; directing staff to pursue an alternative course of action; or taking any other action within the Board’s authority.
9 Treasurer Barbara Boswell presented the item and indicated that staff had reviewed the Serious Controls platform per the Board’s May direction and a specifications questionnaire with responses from Serious Controls was being reviewed by the Programs Advisory Committee Board discussion followed regarding platform implementation risk and staffing requirements, with Chair Parenteau opposing further delay and Board Member Carmona concurring.
No requests to speak were received.
Motion by Chair Parenteau, second by Board Member Carmona, to approve the Master Services Agreement with Lunar Energy, Inc. for the Distributed Energy Resource Management System.
Motion approved unanimously on roll call vote.
Item 7: Consider Approval of Professional Services Agreement with Halsten AI, LLC, Authorization of Funds and Budget Adjustment for FY 2026/27 Operating Budget of $90,000
RECOMMENDATION
Approve a Professional Services Agreement with Halsten AI, LLC (“Halsten”) for an Operating and Automated Workflow Software as a Service (SaaS) in an amount not to exceed $90,000, beginning October 1, 2026 through June 30, 2027; allocate the funding and amend the Fiscal Year 2026-2027 Budget accordingly; and authorize the Interim Chief Executive Officer, or his designee, to work with Authority Counsel to finalize and execute the Agreement and any related documents.
Interim Chief Executive Officer Rob Johnson presented the item.
Board discussion followed regarding multi-year pricing options, the Authority’s competitive-sourcing threshold, cloud data backup and storage, and formation of a working group to guide platform functionality.
No requests to speak were received.
Motion by Vice Chair Pulliam, second by Board Member Prill, to approve the Professional Services Agreement with Halsten AI, LLC for a nine-month term not to exceed $90,000 and authorize the corresponding FY 2026-27 budget adjustment, with direction to staff to concurrently explore multi-year pricing options and report back.
Motion approved unanimously on roll call vote.
Item 8: Discuss and Provide Direction Regarding the Establishment of an All-Member Summit Scholarship Policy
RECOMMENDATION
Discuss and provide direction regarding the establishment of an All-Member Summit Scholarship Policy.
Treasurer Barbara Boswell presented the item regarding scholarship support for Summit travel costs.
Board discussion followed regarding whether CalChoice should subsidize Member staff travel, with Board Members Prill and Diggs expressing opposition to subsidize Member attendee travel. Consensus 10 emerged to discontinue purchasing co-branded promotional items utilizing sponsorship dollars; allow sponsors bring their own promotional items; and focus sponsorship revenues on covering event costs.
No requests to speak were received.
Motion by Board Member Carmona, second by Board Member Prill, directing staff to not establish an All-Member Summit Scholarship Policy.
Motion approved unanimously on roll call vote.
Item 9: Receive California Choice Energy Authority Programs Update on Elect to Administer Energy Efficiency Funding Request
RECOMMENDATION
Receive an update regarding CalChoice’s successful award of $2,703,000 funding from the California Public Utility Commission (CPUC) for implementation of an energy efficiency elect-to-administer program.
Programs Manager Kathy Wells presented updates on the DAC Green Tariff expansion and the California Public Utility Commission’s approval of CalChoice’s $2.7 million Energy Efficiency Program.
No requests to speak were received.
Board received the update.
Item 10: Receive General Manager Update
RECOMMENDATION
Receive General Manager update.
General Manager Cathy DeFalco reported on the CalCCA Annual Conference, clean energy bond prepayment financing opportunities, the All-Member Meeting, and the pending PCIA Track Two proceedings concerning treatment of pre-2019 banked Renewable Energy Credits.
No requests to speak were received.
Board received the update.
Item 11: Receive Interim Chief Executive Officer Update
RECOMMENDATION
Receive Interim Chief Executive Officer update.
Interim Chief Executive Officer Rob Johnson reported on the Pacific Coast Builders Conference and a potential solar-and-battery program for new ground-up developments in San Jacinto modeled on Power Choice, and on progress with the Halsten upgrade to the City of San Jacinto’s website.
No requests to speak were received.
Board received the update.
11 Item 12: Receive Update from Communications Ad-Hoc Subcommittee and Consider Giving Direction to Staff
RECOMMENDATION
Receive update from Communications Ad-Hoc Subcommittee and consider giving direction to staff.
Vice Chair Pulliam presented the item, reporting that the Communications Ad Hoc Subcommittee has met several times with staff and gathered information regarding communications costs. The Subcommittee had been considering a proposed budget reduction; however, it was noted that costs under the existing Tripepi Smith contract have exceeded that proposed amount. The Board directed staff to gather current costs through the end of September, so that an informed decision and formal budget reduction proposal can be brought to the Board at the October 7, 2026 meeting.
No motion or vote was taken.
Item 13: Authority Counsel Update
RECOMMENDATION
Receive update from Authority Counsel.
Authority Counsel had nothing to report.
Board received the update.
Item 14: CLOSED SESSION
Pursuant to Government Code Section 54957(b)(1):
PUBLIC EMPLOYMENT
Title: Chief Executive Officer
RECESS TO CLOSED SESSION AND RECONVENE TO OPEN SESSION
The Board recessed to Closed Session at 3:10 p.m. and reconvened to open session at 3:54 p.m.
AUTHORITY COUNSEL ANNOUNCEMENT
Authority Counsel reported that no reportable action was taken in Closed Session.
PUBLIC COMMENT: None.
BOARD MEMBER QUESTIONS: None.
BOARD MEMBER REPORTS ON CALCHOICE RELATED TRAVEL: None. 12 BOARD MEMBER REQUESTS FOR FUTURE AGENDA ITEMS: Staff to evaluate clean energy bond prepayment options and include as a standing item to report back to the Board at future meetings; and to evaluate an artificial intelligence use policy for the Authority.
NEXT MEETING: Regular Board Meeting, Wednesday, October 7, 2026, 1:00 p.m., City of Pico Rivera.
ADJOURNMENT: Chair Parenteau adjourned the meeting at 3:58 p.m. _______________________________
Kevin Tonoian
Interim Board Secretary
13 STAFF REPORT
California Choice Energy Authority
10/07/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Barbara Boswell, Treasurer
Item 2: Receive and File Treasurer’s Report for Preliminary, Unaudited Period Ending August 31, 2026
Recommendation:
Receive and file Treasurer’s Report for Preliminary, Unaudited period Ending August 31, 2026.
Fiscal Impact:
There is no fiscal impact to California Choice Energy Authority (CalChoice).
Background:
Included in the report to the CalChoice Board are the following preliminary, unaudited Financial Statements as of August 31, 2026:
• Statement of Net Position – Reports Assets, Liabilities and Net Position • Statement of Revenues, Expenses and Changes in Net Position- Reports Income and Expenses for the Period
• Preliminary and Unaudited Budget to Actuals for the fiscal year • Check Detail Report for the Period July – August 2026 Attachment:
California Choice Energy Authority Preliminary, Unaudited Financial Statements and Check Detail as of August 31, 2026
14 Item 2
Treasurer’s Report
CALIFORNIA CHOICE ENERGY AUTHORITY
PRELIMINARY & UNAUDITED
STATEMENT OF NET POSITION
As of August 31, 2026
ASSETS
Cash $ 3,137,130
Member Cash Deposits for Energy Payments 6,328,994
Receivables:
Accounts 0
Due from Members 2,571,614
Prepaid Items 0
TOTAL ASSETS $12,037,738
LIABILITIES
Current Liabilities
Accounts Payable $ 1,200,000
Due to Other Govts 1,035,790
RCB Bank Credit Card Payable 5,732
Total Current Liabilities $ 2,241,522
Noncurrent Liabilities
Unearned Revenue 0
Member Advance Deposits for Energy 6,328,994
Supplier Collateral Deposits 2,347,044
Total Noncurrent Liabilities $ 8,676,038
TOTAL LIABILITIES $10,917,560
NET POSITION
Reserve for Operations $ 678,880
Emergency Reserve 678,880
Reserve for Energy Purchases 372,270
Fund Balance (608,022)
Change in Net Position (1,830)
TOTAL NET POSITION $ 1,120,178
15 Item 2
Treasurer’s Report
CALIFORNIA CHOICE ENERGY AUTHORITY
PRELIMINARY & UNAUDITED
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION Period Ended August 31, 2026
OPERATING REVENUES
Associate Member Fees – Apple Valley $ 33,577
Associate Member Fees – Lancaster 85,974
Associate Member Fees – Palmdale 73,411
Associate Member Fees – Pico Rivera 29,961
Associate Member Fees – Pomona 60,568
Associate Member Fees – Rancho Mirage 40,691
Associate Member Fees – San Jacinto 25,921
Associate Member Fees – Santa Barbara 48,557
TOTAL OPERATING REVENUES $ 398,660
NONOPERATING REVENUE
Sponsorship Revenue $ 0
Interest Income 14,821
Misc. Revenue 0
TOTAL REVENUE $ 413,481
OPERATING EXPENSES
Professional Services $324,458
Legal Services 34,978
Membership Dues 0
Workshop/Seminars/Travel 1,163
Communications/All Member Meeting 19,453
Insurance Expense 24,422
Other Expenses 0
Software & Support 558
Administrative Overhead 0
TOTAL OPERATING EXPENSES $ 405,032
DAC-GT Program Revenue $ 0
DAC-GT Program Expenses (9,125)
Equitable Building Decarb. Grant Expenses (1,154)
Equitable Building Decarb. Grant Revenue 0
NET PROGRAM ACTIVITIES $ (10,279)
OPERATING INCOME (LOSS) $ (1,830)
16 Item 2
Treasurer’s Report
CALIFORNIA CHOICE ENERGY AUTHORITY
PRELIMINARY & UNAUDITED
BUDGET TO ACTUALS COMPARISON
OPERATING REVENUE & EXPENSES ONLY
Period Ended August 31, 2026
BUDGET ACTUALS VARIANCE $ VAR %
REVENUE $368,065 $413,481 $ 45,416 12.3%
OPERATING EXPENSES
Professional Services $205,467 $324,458 (118,991) (58.0%) Legal Services 79,167 34,978 44,189 55.8%
Membership Dues 72,450 0 72,450 100.0%
Workshop/Seminars/Travel 5,000 1,163 3,837 76.7%
Communications/All
Member
20,833 19,453 1,380 6.6%
Insurance Expense 21,000 24,422 (3,422) (16.3%)
Software & Support 1,629 558 1,071 65.7%
Other Expenses 83 0 0 0
CalChoice Board Admin 8,333 0 8,333 100%
Program Development 4,167 0 4,167 100%
Administrative Overhead 50,000 0 50,000 100%
TOTAL OPERATING EXPENSES $468,129 $405,032 $63,097 13.5%
CHANGE IN OPERATING NET
POSITION
($100,064) $8,449 $108,513 108.4%%
Programmatic Net Results ($10,279)
TOTAL CHANGE IN NET
POSITION
($1,830)
17 Item 2
Treasurer’s Report
18 STAFF REPORT
California Choice Energy Authority
10/07/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Barbara Boswell, Treasurer
Item 3: Consider Approval of Travel and Expense Reimbursement Policy Recommendation:
Approve Travel and Expense Reimbursement Policy
Fiscal Impact:
Adoption of the Policy does not itself authorize additional travel expenditures. Travel and reimbursement remain subject to the adopted budget, contractual authority, and applicable approval requirements. The Policy is expected to improve consistency, documentation, and cost control.
Background:
California Choice Energy Authority (CalChoice) incurs travel and related business expenses in connection with Board meetings, conferences and other Authority business. A written policy provides consistent standards for Board members, officers, employees and consultants whose agreements permit reimbursement, while strengthening internal controls over the expenditure of public funds.
California Government Code section 53232.2 requires a local agency that reimburses members of a legislative body for actual and necessary expenses to adopt a written policy specifying the types of occurrences that qualify for reimbursement and addressing reasonable reimbursement rates. Government Code section 53232.3 also establishes reporting requirements for members of legislative bodies receiving reimbursement.
Discussion:
The proposed Policy establishes a single framework for advance authorization, allowable transportation, lodging, meals, mileage, registration fees, documentation, approval, and reimbursement. It applies to Board members, officers, employees, and consultants when CalChoice has agreed to reimburse expenses.
• Requires expenses to be reasonable, necessary, directly related to CalChoice business, and adequately substantiated.
• Uses coach/economy airfare and reasonably economical lodging as the default standards.
19 Item 3
Travel and Exp Policy
2 • Reimburses personal-vehicle business mileage at the then-current IRS business standard mileage rate (for reference, $0.76 per mile as of the effective date of this Policy); CalChoice will automatically apply the then-current IRS-published business rate as it changes, without further Board action, unless the Board establishes a different lawful rate. • Uses applicable federal per diem rates as a ceiling for meals and incidentals unless a documented exception is approved, and encourages use of federal, conference, negotiated, or otherwise reasonable lodging rates. • Requires itemized receipts and a documented business purpose, with procedures for missing receipts and exceptions.
• Generally, requires expense reports within 30 days after travel and requires prompt return of excess advances, supporting administration under federal accountable-plan principles.
• Prohibits reimbursement of personal, lavish, duplicative, or otherwise non-business expenses, including alcoholic beverages and companion costs. • Includes statutory provisions applicable to Board member reimbursement and reporting.
Attachment B to this report provides a standardized reimbursement form to document trip purpose, expense categories, mileage, Authority-paid costs, traveler-paid costs, receipts, certifications, approvals, and Finance review.
Attachments:
Attachment A - Proposed CalChoice Travel and Expense Reimbursement Policy Attachment B - Travel Expense Reimbursement Form
20 CALIFORNIA CHOICE ENERGY AUTHORITY
SUBJECT:
Travel and Expense Reimbursement Policy
PROPOSED DATE:
10/07/2026
POLICY #:
CalChoice-0#
SUPERSEDES
N/A
STAFF CONTACT
Chief Executive
Officer
# OF PAGES:
4 1. PURPOSE
This Travel and Expense Reimbursement Policy establishes uniform standards for authorization, payment, documentation, and reimbursement of reasonable and necessary business travel and related expenses incurred on behalf of California Choice Energy Authority (“CalChoice”). The Policy is intended to safeguard public funds, support efficient Authority operations, satisfy applicable California public-agency requirements, and administer reimbursements in a manner consistent with federal accountable-plan principles.
2. SCOPE
This Policy applies to CalChoice Board members, officers, employees, and consultants or contractors when CalChoice has agreed by contract or written authorization to reimburse travel or business expenses. If an applicable contract, agreement, or written authorization is more restrictive than this Policy, the more restrictive terms control. Nothing in this Policy creates a right to reimbursement beyond an approved contract, budget, or travel authorization.
3. REFERENCES
• California Government Code §§ 53232.2–53232.3 (expense reimbursement policies and reporting for members of legislative bodies).
• The Joint Powers Agreement and other governing documents of California Choice Energy Authority, including applicable bylaws, resolutions, and Board-adopted policies. • California Government Code section 1090 et seq. and the Political Reform Act (Government Code section 81000 et seq.) and applicable Fair Political Practices Commission regulations governing conflicts of interest and ethics.
• Internal Revenue Code and Treasury Regulations governing accountable plans and substantiation of business expenses.
• IRS Publication 463, Travel, Gift, and Car Expenses; IRS Publication 15, Employer’s Tax Guide. • IRS Announcement 2026-11 (revised 2026 business standard mileage rate effective July 1, 2026).
Applicable U.S. General Services Administration federal per diem rates.
4. GOVERNING PRINCIPLES
Reimbursable expenses must be actual, reasonable, necessary, directly related to CalChoice business, and properly substantiated. Travelers are expected to exercise the same care in incurring expenses that a prudent person would exercise when spending personal funds. CalChoice will not reimburse personal, lavish, extravagant, duplicative, or inadequately documented expenses. 21 Item 3 - Attachment A
Draft Travel and Expense Reimbursement Policy 2
Proposed: October 7, 2026
5. AUTHORIZATION AND BUSINESS PURPOSE
Travel and other reimbursable business expenses must be authorized in advance whenever practicable. The traveler must identify the CalChoice business purpose, destination, dates, and expected material costs.
Employee travel is approved by the Chief Executive Officer or designee. Travel by the Chief Executive Officer is approved by the Board Chair or designee. Board member travel is subject to applicable Board authorization, budget authority, and California law. Consultant travel must be authorized under the applicable agreement or in writing by the CalChoice Chief Executive Officer or designee.
6. TRANSPORTATION
Travelers should select the most economical reasonable mode of transportation considering total cost, travel time, safety, and business needs. Coach/economy airfare is the standard. Upgrades, premium seating, airline club access, and similar conveniences are not reimbursable unless required as a reasonable accommodation or specifically approved for a documented business reason. Reasonable baggage fees, ground transportation, parking, tolls, and rental-car charges are reimbursable when business-related. Rental vehicles should be appropriately sized for the business need; luxury or specialty vehicles are not reimbursable absent documented necessity.
7. PERSONAL VEHICLE MILEAGE
Use of a personal vehicle for authorized CalChoice business may be reimbursed at the then-current IRS business standard mileage rate. The applicable rate is the IRS business standard mileage rate in effect at the time the travel is incurred (for reference, $0.76 per mile as of the effective date of this Policy); CalChoice will automatically apply the then-current IRS-published business rate as it changes, without further Board action, unless the Board establishes a different lawful rate. Mileage reimbursement is intended to cover vehicle operating costs; fuel for a personal vehicle is therefore not separately reimbursable. Business-related parking and tolls may be reimbursed in addition to mileage. Normal commuting between home and a regular work location is not reimbursable, subject to applicable tax rules for temporary work locations and a qualifying principal place of business.
8. LODGING
Lodging is reimbursable when overnight travel is reasonably necessary. Travelers should use conference, government, negotiated, or other reasonably economical rates when available. Lodging should ordinarily not exceed the applicable federal (GSA) lodging rate for the destination unless a conference hotel, availability, safety, location, or other documented business circumstance makes a higher rate reasonable. Taxes and mandatory lodging fees are reimbursable. Personal room upgrades, movies, minibar charges, spa charges, and other personal incidentals are not reimbursable.
9. MEALS AND INCIDENTAL EXPENSES
Reasonable meals and incidental expenses incurred during authorized overnight travel may be reimbursed using actual expenses, not to exceed the applicable federal (GSA) per diem meal and incidental expense (“M&IE”) rate for the locality unless a higher amount is specifically approved based on documented circumstances. Meals provided by a conference, host, hotel, or other source must be deducted from the reimbursement claim. Alcoholic beverages are not reimbursable. For partial travel days, CalChoice may apply the federal first/last-day methodology or reimburse documented actual meals up to the applicable prorated limit. Local meals that do not involve overnight travel are reimbursable only when there is a documented 22 Draft Travel and Expense Reimbursement Policy 3
Proposed: October 7, 2026
CalChoice business purpose and reimbursement is otherwise lawful and authorized. Consultant meals must be authorized under the applicable agreement or in writing by the CalChoice Chief Executive Officer or designee.
10. CONFERENCES, TRAINING, AND REGISTRATION
Registration fees for conferences, meetings, training, and professional events are reimbursable when attendance serves a CalChoice business purpose and is authorized. Optional social events, recreational activities, guest fees, and political or charitable contributions are not reimbursable unless separately authorized and legally permissible.
11. NON-REIMBURSABLE EXPENSES
Examples include personal entertainment; childcare or pet care; traffic or parking citations; personal travel insurance unless specifically approved; personal grooming or clothing; lost or stolen personal property; costs for spouses, family members, or other companions; personal portions of combined business/personal travel; and any expense prohibited by law, contract, or CalChoice policy. In addition, travelers may not accept or retain for personal benefit any gift, rebate, credit, discount, frequent-flyer mile, loyalty reward, or similar benefit arising from Authority-paid travel where doing so would be inconsistent with applicable law or CalChoice's conflict-of-interest, ethics, or gift policies.
12. COMBINED BUSINESS AND PERSONAL TRAVEL
Personal travel may be combined with CalChoice business only if it does not increase CalChoice’s cost or interfere with Authority business. Any incremental airfare, lodging, transportation, meals, or other cost attributable to personal travel or a companion is the traveler’s responsibility. The traveler must provide documentation sufficient to establish the business-only cost when the itinerary is modified for personal reasons.
13. TRAVEL ADVANCES AND AUTHORITY-PAID EXPENSES
CalChoice may pay approved travel expenses directly or issue an advance when administratively appropriate.
An advance does not eliminate the traveler’s duty to substantiate expenses. Any excess advance or other unsubstantiated amount must be returned promptly and no later than two weeks after the travel occurred.
Authority-paid expenses must also be reported on the reimbursement form when needed to provide a complete accounting of trip costs.
14. DOCUMENTATION AND REIMBURSEMENT CLAIMS
The traveler must submit Attachment A — Travel Expense Reimbursement Form with the business purpose, dates, destination, expense category, amount, and required supporting documentation. Itemized receipts are required for lodging, airfare, rental cars, registration, and other material expenses, and should be provided for all expenses when reasonably available. Credit-card slips showing only a total are not sufficient when an itemized receipt is reasonably obtainable. Missing receipts require a written explanation and approval.
Mileage claims must state the date, business purpose, origin/destination or equivalent route information, and business miles.
23 Draft Travel and Expense Reimbursement Policy 4
Proposed: October 7, 2026
15. SUBMISSION DEADLINE AND ACCOUNTABLE-PLAN ADMINISTRATION Expense reports should be submitted within 30 days after completion of travel and, in all cases, within a reasonable period consistent with federal accountable-plan requirements. Travelers must return excess advances within 30 days after the trip or other reasonable period established by Finance. Amounts that are not adequately substantiated or timely returned may be denied, recovered, or treated as taxable compensation when required by federal tax law.
16. APPROVAL AND REVIEW
Reimbursement claims must be reviewed for business purpose, mathematical accuracy, documentation, policy compliance, and available budget. In no case may the claimant approve, authorize, or serve as the final approver of the claimant’s own reimbursement; each claim is subject to independent review and approval by Finance. Finance may request additional documentation or clarification and may reduce or deny expenses that do not comply with this Policy.
17. BOARD MEMBERS AND PUBLIC REPORTING
Board member reimbursements are subject to Government Code sections 53232.2 and 53232.3 and other applicable law. When required, a Board member receiving reimbursement shall provide, at the next regular meeting of the Board, the brief report required by Government Code section 53232.3 regarding meetings attended at CalChoice expense. This Policy is intended to constitute the written expense reimbursement policy required by Government Code section 53232.2 for expenses governed by that statute.
18. EXCEPTIONS
Exceptions must be documented, reasonable, legally permissible, and approved by the Chief Executive Officer or designee; an exception involving the Chief Executive Officer must be approved by the Board Chair or designee. No exception may authorize an expense prohibited by law. Material or recurring exceptions should be reported to the Board as appropriate.
19. ADMINISTRATION
The Chief Executive Officer or designee may issue administrative procedures, forms, and guidance consistent with this Policy; update references to IRS or federal travel rates without further Board action when this Policy expressly adopts the then-current rate; and resolve routine questions of interpretation. Finance shall retain reimbursement records in accordance with CalChoice’s records retention requirements.
20. ATTACHMENT
Attachment — Travel Expense Reimbursement Form
24 1
CALIFORNIA CHOICE ENERGY AUTHORITY
ATTACHMENT — TRAVEL EXPENSE REIMBURSEMENT FORM
Use this form to request reimbursement and to account for Authority-paid travel expenses.
Attach itemized receipts and supporting documentation.
Traveler Name
Title / Organization
Travel Destination
Travel Dates
Business Purpose
Date Expense
Type
Vendor /
Route
Total
Business
Miles
Amount Authority
Paid
Traveler
Paid
Receipt
Y/N
TOTALS
Mileage Certification
Business mileage rate used: $________ per mile. For travel on or after July 1, 2026, the IRS business standard mileage rate is $0.76 per mile, unless superseded by a later IRS rate.
Missing Receipt / Exception Explanation (if applicable) ________________________________________________________________________________ ________________________________________________________________________________ Traveler Certification
I certify that the expenses claimed are actual, reasonable, necessary for CalChoice business, have not been reimbursed from another source, and are supported by the documentation provided. I will repay any amount determined to be unallowable or in excess of substantiated expenses.
Traveler Signature Date
Approver Signature Date
Finance Review Date
25 Item 3 - Attachment B
STAFF REPORT
California Choice Energy Authority
10/07/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Barbara Boswell, Treasurer
Item 4: Discuss and Provide Direction on a New Member Policy Recommendation:
Discuss and provide direction on a new member policy.
Fiscal Impact:
There is no fiscal impact by this action.
Background:
This report is being brought forward based on a request by a CalChoice Board member as a future agenda item.
Section 12 of the California Choice Energy Authority (CalChoice) Joint Exercise of Powers Agreement (JPA) establishes the authority and requirements for new members to be added.
Specifically, it states:
“Qualifying public agencies may be added as parties to this Agreement and become Members upon: (1) the filing by such public agency with the Authority of an executed counterpart of this Agreement, together with a copy of the resolution of the governing body of such public agency approving this Agreement and the execution and delivery hereof; and (2) adoption of a resolution of the Board approving the addition of such public agency as a Member. Upon satisfaction of such conditions, the Board shall file such executed counterpart of this Agreement as an amendment hereto, effective upon such filing.”
To date there has been no formal policy that establishes a process or criteria for consideration of approval of new members. Rather, there has been a procedure that has been followed that was used for the addition of all current members of CalChoice. That process has been:
• Interested city reaches out to CalChoice and expresses interest o Meeting with CalChoice and city
o Execution of Phase 1 Agreement between CalChoice and city ▪ Scope - Technical Study preparation and Implementation Plan preparation
• $35k fee for Technical Study
• $30k fee for Implementation Plan Preparation
26 Item 4
Discuss New Member Policy
2 ▪ Implementation Plan preparation if technical study warrants and city desires to move forward with implementation of a CCA.
o City requests consideration of joining CalChoice
▪ Phase 2 agreement is executed
• CalChoice board considers approval of Phase 2 Agreement o Staff recommendation based on results of Phase 1
technical study & analysis of impact to CalChoice costs & fees
• Phase 2 scope includes implementation support over a 12 + month period
o $160,000 fee charged by CalChoice to recover costs
• CalChoice Board and City Council consider approval of Resolutions to join CalChoice
o Execution of Administrative Services Agreement and related documents ▪ CalChoice Board and New Member city council considers approval of Administrative Services Agreement and related documents Based on the current process there are three touchpoints with the CalChoice Board when new members are considered:
• Approval of Phase 2 Agreement
• Approval of Resolution of new member joining
• Approval of Administrative Services Agreement and related documents There have been four instances when a Phase 1 agreement was executed with an interested party and there was no touchpoint with the CalChoice Board due to the city deciding not to move forward after the technical study was completed.
The current procedure allows flexibility for a city to contact CalChoice and engage CalChoice to prepare a CCA technical study without the commitment to join CalChoice as a member, and for CalChoice staff to have a basis upon which to advise the CalChoice Board of impacts should the city wish consideration to join CalChoice.
Should the Board determine a New Member Policy should be established, the Board should provide direction on criteria for membership the new policy should include. Staff would bring the draft policy back at a future meeting.
Attachment:
None
27 STAFF REPORT
California Choice Energy Authority
10/07/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Kathy Wells, Energy Programs Manager
Item 5: Consider Approval of Professional Consulting Services Agreement with Frontier Energy for the Joint CCA Energy Efficiency Elect to Administer Program
Recommendation:
Approve Professional Consulting Services Agreement with Frontier Energy (Frontier) for Implementation and Administrative Support Services for the Joint CCA Energy Efficiency Elect to Administer (EE ETA), for an amount not to exceed $229,730, and authorize the Interim Chief Executive Officer to execute the related documents.
Fiscal Impact:
Funding is not to exceed $229,730 for the three-year program term. Sufficient funds are available in the California Choice Energy Authority (CalChoice) Joint CCA EE ETA program budget. The program is funded through California Public Utilities Commission (CPUC)- authorized energy efficiency funds distributed to CalChoice by Southern California Edison (SCE). No CalChoice funds are required for the proposed agreement.
Background:
Frontier Energy provides professional services supporting the development and implementation of energy efficiency programs on behalf of CalChoice and its member cities.
CalChoice’s relationship with Frontier Energy dates back to a competitive procurement conducted in 2016, when Frontier’s predecessor, BKi, was selected through a formal solicitation process to provide energy-efficiency consulting services. Over the following several years, Frontier worked with CalChoice staff and regulatory legal counsel to evaluate limitations in the existing CPUC funding methodology for CCA-administered energy-efficiency programs and to develop the regulatory strategy that led to CalChoice’s May 2023 Petition for Modification. That effort ultimately resulted in CPUC approval of a 4% minimum funding floor for CCA-administered programs in April 2024, providing significantly more available funding for local CCA programs.
Frontier subsequently supported development of CalChoice’s Joint CCA EE ETA Program, including preparation of the program plan and associated CPUC filings, culminating in CPUC approval in July 2026 of approximately $2.703 million in funding for a three-year implementation period.
28 Item 5
Authorize PSA with Frontier Energy
2 The proposed three-year agreement extends Frontier’s support through the program implementation period. Services will include program administration, regulatory reporting and compliance, budget and California Energy Data and Reporting System (CEDARS) support, implementer oversight, evaluation, measurement and verification support, and program closeout with the CPUC.
An exception to CalChoice’s competitive procurement requirements is appropriate based on the specialized nature of the services, the need for continuity of work, and the determination that conducting a new competitive solicitation at this stage would not provide a practical or economic advantage to CalChoice. As a procurement best practice, exceptions to competition should be supported by documented, objective findings demonstrating why competition would not further the purposes of competitive procurement.
In this instance, Frontier’s work on the Joint CCA EE ETA Program is a continuation of services that originated through a competitive procurement and have progressed through regulatory strategy, CPUC funding approval, program development, and now implementation. Frontier has developed substantial program-specific and regulatory knowledge through this work, including direct involvement in the regulatory proceedings and filings that established the funding framework and secured approval of the Joint CCA EE ETA Program. Transitioning these responsibilities to a new consultant at this stage would require duplication of prior work and transfer of substantial program-specific and regulatory knowledge, while introducing additional cost, schedule risk, and potential disruption during the program’s implementation period.
Accordingly, staff have determined that continued use of Frontier Energy is in CalChoice’s best interest and that conducting a competitive procurement for these services would be futile and unavailing under the circumstances. This determination is consistent with California court decisions, including Los Angeles Dredging Co. v. City of Long Beach (1930) 210 Cal. 348, as further interpreted in Graydon v. Pasadena Redevelopment Agency (1980) 104 Cal.App.3d 631.
Frontier Energy will also assist CalChoice with the competitive solicitation and evaluation of program implementation contractor(s). Staff will return to the Board in February 2027 with a recommended implementer for consideration and approval.
For these reasons, staff recommends approval of the proposed agreement with Frontier Energy for an amount not to exceed $229,730 to support the Joint CCA EE ETA Program’s three-year implementation period.
Attachment:
Professional Consulting Services Agreement with Frontier Energy 29 2369322v1 / 20018.0002
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Professional Consulting Services Agreement; 10/2017
AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES
THIS AGREEMENT FOR PROFESSIONAL CONSULTING SERVICES (this "AGREEMENT") is made and entered into this day of , 2026, by and between California Choice Energy Authority, a Joint Powers Authority, (“OWNER”), and Frontier Energy, Inc. (“CONSULTANT”) (collectively, sometimes referred to hereinafter as the “Parties”).
RECITALS
WHEREAS, the OWNER desires to engage CONSULTANT to perform certain technical and professional services, as provided herein, identified as:
CALCHOICE JOINT CCA ENERGY EFFICIENCY PROGRAM IMPLEMENTATION AND ADMINISTRATIVE SUPPORT SERVICES (THE “SERVICES”)
WHEREAS, the principal members of CONSULTANT are qualified and duly registered/licensed under the laws of the State of California, and CONSULTANT desires to accept such engagement;
NOW, THEREFORE, the Parties agree as follows:
1. Parties to the AGREEMENT.
The Parties to this AGREEMENT are:
A. OWNER: California Choice Energy Authority
B. CONSULTANT: Frontier Energy, Inc.
2. Notices. All written notices required by or related to this AGREEMENT shall be sent by Certified Mail, Return Receipt Requested, postage prepaid and addressed as listed below. Neither Party to this AGREEMENT shall refuse to accept such mail. Notices shall also be sent to the respective business officers via email at the email addresses listed below; Parties to this AGREEMENT shall promptly inform the other Party of any changes of address. All notices required by this AGREEMENT are effective on the day of receipt, unless otherwise indicated herein.
OWNER Rob Johnson, Interim Chief Executive Officer
California Choice Energy Authority
44933 North Fern Avenue
Lancaster, California 93534
[email protected]
CONSULTANT Jean Krausse, Vice President
PO Box 530293
Atlanta, GA 30353-0293
[email protected]
30 Item 5 - Attachment
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Professional Consulting Services Agreement; 10/2017
3. Successors and Assigns. The terms hereof shall be binding upon and inure to the benefit of the successors and assigns of the Parties hereto; provided, however, that no Party hereto shall assign any of the benefits and burdens hereunder, whether voluntarily or by operation of law, without prior written consent of the other Party, and any such assignments without said consent shall be void.
4. Description of Work. The OWNER hereby engages CONSULTANT, and CONSULTANT accepts such engagement, to perform the technical and professional services set forth in the “Scope of Service” attached hereto as Exhibit “A”. CONSULTANT shall perform and complete, in a manner satisfactory to OWNER, all work and services set forth in the Scope of Services. The California Choice Energy Authority Chief Executive or his or her designee shall have the right to review and inspect the work during the course of its performance at such times as may be specified by the California Choice Energy Authority Chief Executive, or his or her designee.
5. Obligations of the OWNER.
A. The total compensation to be paid by the OWNER to CONSULTANT for all work and services described in the Scope of Services is not to exceed $229,730. CONSULTANT’S fees and charges for the work and services performed shall in no event exceed those set forth in Exhibit “B” attached hereto and made a part hereof.
B. No payment made hereunder by the OWNER to CONSULTANT, other than the final payment, shall be construed as an acceptance by OWNER of any work or materials, nor as evidence of satisfactory performance by CONSULTANT of its obligations under this AGREEMENT.
6. Obligations of the CONSULTANT.
A. CONSULTANT shall perform the Services as required by this AGREEMENT as set forth in Exhibit A.
B. CONSULTANT shall be responsible for payment of all employees’ wages and benefits and shall comply with all requirements pertaining to employer’s liability, workers’ compensation, unemployment insurance, and Social Security.
C. CONSULTANT shall not subcontract any of the work required to perform the Services without the express prior written approval of the OWNER.
7. Hold Harmless and Indemnification. CONSULTANT agrees to indemnify and hold harmless the OWNER, its officers and employees, from and against any and all third-party claims, losses, obligations, or liabilities whatsoever, including reasonable attorney’s fees, incurred to the extent arising out of or related to CONSULTANT’S negligent or willful wrongful acts, errors or omissions, or those of its employees or agents. CONSULTANT agrees to defend the OWNER, its officers and employees, using counsel of the OWNER’S choosing, from and against any and all claims covered by the indemnity in the preceding sentence.
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Professional Consulting Services Agreement; 10/2017
8. Audit. OWNER shall have the option of inspecting and/or auditing all records and other written materials used by CONSULTANT in preparing its statements to OWNER as a condition precedent to any payment to CONSULTANT.
9. Amendments. Any amendment, modification, or variation from the terms of this AGREEMENT shall be in writing and shall be effective only upon mutual written approval by the OWNER and CONSULTANT.
10. Non-Discrimination and Equal Employment Opportunity.
A. In the performance of this AGREEMENT, CONSULTANT shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, religion, ancestry, sex, national origin, physical or mental disability or age. CONSULTANT will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, physical or mental disability or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training including apprenticeship.
B. The provisions of subsection A above shall be included in all solicitations or advertisements placed by or on behalf of CONSULTANT for personnel to perform any services under this AGREEMENT. The OWNER shall have accessto all documents, data and records of CONSULTANT and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section.
11. Term; Effective Date. This AGREEMENT shall become effective and shall be in full force and effect upon the execution of the AGREEMENT by the OWNER and the CONSULTANT. This AGREEMENT shall continue in full force and effect through December 31, 2029, unless the AGREEMENT is sooner terminated in accordance with this AGREEMENT; provided, however, that the OWNER and the CONSULTANT may mutually agree in writing to extend the Term of this AGREEMENT.
12. Termination.
A. For Convenience. The OWNER may terminate this AGREEMENT at any time without cause by giving thirty (30) days written notice to the other Party of such termination and specifying the effective date thereof. In the event of termination of this AGREEMENT, CONSULTANT will be paid on a for work completed through the date of termination within thirty (30) days following submittal of a final invoice.
B. For Cause. If either Party fails to perform the Services called for by this AGREEMENT, fails to make progress as to endanger performance of this AGREEMENT in accordance with its terms, or fails to pay any outstanding invoice within forty-five (45) days, the breaching Party shall correct such failure within ten (10) days (or such longer period that the non-breaching Party may authorize in writing) after receipt of notice from the non-breaching Party specifying such failure. Should the failure not be corrected within this time period, the non-breaching Party may immediately terminate the AGREEMENT by written notice to CONSULTANT.
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Professional Consulting Services Agreement; 10/2017
C. In the event of termination, whether for convenience or cause, reports, plans, studies and other documents related to the Services that have been delivered to the OWNER shall become the OWNER’s property.
13. Independent Contractor. CONSULTANT is an independent contractor and shall have no power or authority to incur any debt, obligation or liability on behalf of the OWNER. It is expressly understood between the Parties to this AGREEMENT that no employee/employer relationship is intended.
14. Insurance.
A. The CONSULTANT, at its expense, shall maintain in effect at all times during the term of this AGREEMENT the following coverage and limits of insurance, which shall be maintained with insurers listed “A-, VIII” or better in the Best’s Key Rating Guide:
Commercial General Liability
Each Occurrence $1,000,000
Per Project General Aggregate $2,000,000
Including Products/Completed Operations; Contractual Liability/Independent Contractors; Property Damage
(Coverage shall be at least as broad as ISO form CG2010 11/85 or CG2010 07/04 and CG2037 07/04 combined, or an equivalent providing ongoing and completed operations) Commercial Automobile Liability
Combined Single Limit per Accident for
Bodily Injury and Property Damage $1,000,000
(Coverage shall be at least as broad as ISO form CA00 01) Workers Compensation
As Required by the State of California Statutory Limits Employers’ Liability
Each Accident $1,000,000
Bodily Injury by Disease $1,000,000
Each Employee $1,000,000
(A Waiver of Subrogation must be provided on behalf of the Certificate Holder for the Workers Compensation & Employers’ Liability policies)
Professional Liability
Each Occurrence $1,000,000
General Aggregate $1,000,000
Cyber Liability
Each Occurrence $1,000,000
General Aggregate $1,000,000
33 2369322v1 / 20018.0002
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Professional Consulting Services Agreement; 10/2017
B. The CONSULTANT’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insured’s liability.
C. A Waiver of Subrogation must be provided on behalf of the Certificate Holder for the Workers Compensation/Employers Liability policies and a copy of the endorsement must accompany the certificate.
D. Any deductibles or self-insurance retentions must be declared and approved by the OWNER. At the OWNER’s option, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the OWNER insured entities or the insurer shall procure a bond guaranteeing payment of losses and related investigations, claim administration and defense expenses.
E. All insurance shall be primary and non-contributory as respects the OWNER insured entities. Any insurance or self-insurance maintained by the OWNER insured entities shall be in excess of the CONSULTANT’s insurance and shall not contribute with it.
F. The coverage provided under this contract shall not contain any special limitations on the scope of protection afforded to the OWNER insured entities.
G. Insurance provided and maintained by CONSULTANT must be placed with insurers with a rate of A-, VIII or better by Best’s Key Rating Guide, latest edition, and that are admitted insurers in the State of California.
H. Professional liability and/or cyber insurance written on a “claims made” basis must be renewed for a period of five (5) years after this contract expires or is terminated. Such insurance must have the same coverage and limits as the policy that was in effect during the term of this contract and will cover CONSULTANT for all claims made by the OWNER insured entities arising out of any acts or omissions of CONSULTANT or its officers, employees, or agents during the time this AGREEMENT was in effect.
I. CONSULTANT shall furnish the OWNER with Certificates of Insurance and with original endorsements effecting coverage required by this AGREEMENT. The certificates and endorsements for each insurance policy are to be signed by a person authorized by the insurer to bind coverage on its behalf. All certificates and endorsements are to be received and approved by the OWNER before work commences. The OWNER reserves the right to require complete, certified copies of all required insurance policies at any time.
J. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the OWNER insured entities.
K. Certificates of Insurance must be deposited with the OWNER for all coverage required by the AGREEMENT. Certificates shall meet the following requirements:
(1) Show that the insurance policy has been endorsed to state that coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits except after 34 2369322v1 / 20018.0002
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Professional Consulting Services Agreement; 10/2017
30 days prior written notice (10 days written notice for non-payment) by Certified Mail, return receipt requested to the OWNER.
(2) List in the “Descriptions of Operations/Locations/Vehicles” section:
“CalChoice Joint CCA Energy Efficiency JCM and Installer Solicitation Services Support”
”
The OWNER, its elected officials, officers, employees and volunteers are included as additional covered parties, but only insofar as the operations under this contract are concerned.”
(3) List in the “Certificate Holder” section:
California Choice Energy Authority, 44933 Fern Avenue, Lancaster, California 93534.
(4) List in the “Cancellation” section:
Should any of the above described policies be cancelled before the expiration date thereof, the issuing company will mail 30 days written notice (10 days written notice for non-payment) to the Certificate Holders named to the left.
L. CONSULTANT shall include all subcontractors as an insured under its policies or shall furnish separate certificates and endorsements for each subcontractor.
Subcontractors are subject to the same insurance requirements as the CONSULTANT.
M. The coverage shall contain no special limitations on the scope of protection afforded the insured entities. The CONSULTANT’S insurance coverage shall be primary insurance as respect to the OWNER’S insured entities.
15. Commencement and Completion of Work. The execution of this AGREEMENT by the Parties does not constitute an authorization to proceed. The services of the CONSULTANT shall commence on and will terminate, unless amended by mutual agreement of the PARTIES on December 31, 2029.
16.Ownership of Documents. All reports and other documents prepared by CONSULTANT pursuant to this AGREEMENT shall become the property of the OWNER. OWNER is entitled to full and unrestricted use of such contracts, drafts, correspondence, pleadings, reports and other documents.
17. Data Provided to CONSULTANT. OWNER shall provide to CONSULTANT, without charge, all data, including reports, records, maps and other information, now in the OWNER’S possession which may facilitate the timely performance of the work described in the Scope of Work.
18. CONSULTANT’s Warranties and Representations.
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Professional Consulting Services Agreement; 10/2017
CONSULTANT warrants and represents to OWNER as follows:
A. CONSULTANT has not employed or retained any person or entity, other than a bona fide employee working exclusively for CONSULTANT, to solicit or obtain this AGREEMENT.
B. CONSULTANT has not paid or agreed to pay any person or entity, other than a bona fide employee working exclusively for CONSULTANT, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the execution of this AGREEMENT. Upon any breach or violation of this warranty, OWNER shall have the right, in its sole discretion, to terminate this AGREEMENT without further liability, or, in the alternative, to deduct from any sums payable hereunder the full amount or value of any such fee, commission, percentage or gift.
C. CONSULTANT has no knowledge that any officer or employee of the OWNER has any interest, whether contractual, noncontractual, financial, proprietary, or otherwise, in this transaction or in the business of the CONSULTANT, and that if any such interest comes to the knowledge of CONSULTANT at any time, a complete written disclosure of such interest will be made to OWNER, even if such interest would not be deemed a prohibited “conflict of interest” under applicable laws.
D. Upon the execution of this AGREEMENT, CONSULTANT has no interest, direct or indirect, in any transaction or business entity which would conflict with or in any manner hinder the performance of services and work required by this AGREEMENT, nor shall any such interest be acquired during the term of this AGREEMENT.
19. Resolution of Disputes.
A. Disputes regarding the interpretation or application of any provisions of this AGREEMENT shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties.
B. If the parties cannot resolve the dispute through good faith negotiations, either Party may give Notice of Dispute to the other Party. The Notice of Dispute shall state the nature of the dispute and the corrective action necessary to remedy the dispute.
After Notice of Dispute, the Parties shall first attempt to resolve any disputes by mediation. The Parties shall agree on a single mediator. Mediation shall be conducted in a mutually acceptable location in Los Angeles County California. Each Party shall pay its own attorneys’ fees and the costs of mediation shall be split equally between the Parties.
If the dispute has not been resolved by mediation within 45 days after Notice of Dispute, or the parties are unable to agree to a mediator, within 15 days after Notice of Dispute, then, the dispute may, upon agreement of the Parties be resolved by binding arbitration.
C. If any action at law or in equity is brought to enforce or interpret any provisions of this AGREEMENT, the prevailing party in such action shall be entitled to reasonable attorney’s fees, cost and necessary disbursements, in addition to such other relief as may be sought and awarded. 36 2369322v1 / 20018.0002
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Professional Consulting Services Agreement; 10/2017
20. Exhibits.
The following exhibits to which reference is made in this AGREEMENT are deemed incorporated herein in their entirety:
Exhibit “A” Scope of Services and Rates Schedule
Exhibit “B” Term and Payment Clause
21. Governing Law.
This AGREEMENT shall be governed by the laws of the State of California.
22. Effective Date.
This AGREEMENT shall become effective as of the date set forth below on which the last of the parties, whether City or CONSULTANT, executes said AGREEMENT. [Signatures begin on next page.]
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Professional Consulting Services Agreement; 10/2017
IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed and attested by their respective officers thereunto duly authorized.
FRONTIER ENERGY, INC.
By:
Jean Krausse, Vice President
Dated:
CALIFORNIA CHOICE ENERGY AUTHORITY
LANCASTER, CALIFORNIA
By:
Robert Johnson, Interim Chief Executive Officer
Dated:
38 2369322v1 / 20018.0002
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Professional Consulting Services Agreement; 10/2017
EXHIBIT A
SCOPE OF SERVICES
AND RATES SCHEDULE
The work to be performed under this contract shall include the services as outlined in the attached proposal.
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Professional Consulting Services Agreement; 10/2017
EXHIBIT B
TERM AND PAYMENT CLAUSE
Term
This AGREEMENT shall commence on . This AGREEMENT shall continue in full force and effect until December 31, 2029 (“TERM”), unless the AGREEMENT is sooner terminated in accordance with the Terms and conditions in the AGREEMENT; provided, however, that the OWNER and the CONSULTANT may mutually agree in writing to extend the TERM of this AGREEMENT.
Payment
The OWNER shall compensate the CONSULTANT based upon the hourly rate schedule included in the attached proposal, not to exceed $229,730.
40 SCOPE OF WORK
Frontier Energy’s qualified personnel will provide the following services. Services will be performed in coordination with CalChoice staff and designated committee members and contractors. Frontier will use commercially reasonable project-management, document-control, and quality-control practices appropriate to each assignment. Unless otherwise directed, Frontier Energy will maintain supporting documents, action logs, decision records, and version-controlled work products, and will submit external-facing materials to CalChoice for review and approval before release.
1.0. Setup and Procurement Support:
1.1 Regulatory and financial reporting procedures
Support CalChoice with development of reporting procedures, templates, and recommendations for tracking systems that support accurate reporting, including financial reporting procedures. Support coordination activities related to regulatory proceedings for CalChoice.
Activities may include developing a master regulatory and financial reporting calendar; defining roles, review steps, and escalation paths; documenting source-data requirements and calculation methods; establishing version control, and retention practices; and creating quality-control checklists for completeness, consistency, and timely submission. Frontier Energy will periodically review the procedures against then-current CPUC and Energy Division guidance, identify gaps or process risks, and recommend updates.
Deliverables may include a reporting procedures manual, reporting calendar, responsibility matrix, standard templates, and an open-items log.
1.2. CEDARS support
Support CalChoice prepare monthly, quarterly, and annual reports to the CPUC, according to CPUC guidelines, and ensure that reports contain the necessary technical data, narrative, and formatting as required by the CPUC.
Support ongoing data readiness for CEDARS, including sharing the data dictionary, supporting the mapping of program and measure fields to required CEDARS elements, establishing unique identifier and naming conventions, and documenting data lineage from implementer source files through final submission.
1.3. Budget setup
Support CalChoice on budget management, including budget shifts in accordance with CPUC Program Administrator requirements. Support creation of a budget tracking system that rolls up contractor expenses and manages disbursement from SCE. Support collecting, integrating, and reporting vital fiscal management metrics.
Develop and maintain budget categories aligned with CPUC-approved structures and contractor work breakdowns. Support monthly budget-to-actual and forecast reporting. Establish procedures for variance explanations, change logs, reconciliations, and escalations of potential over- or underspending.
Deliverables may include a budget workbook and supporting documentation for budget changes.
1.4. Procurement support (continued)
Continue supporting CalChoice with any remaining tasks during the RFP process. Remaining tasks may include:
41 RFP creation and distribution support
Support drafting scope and support CalChoice’s existing process for issuing request for proposals for implementation contractors. Support RFP distribution to eligible firms.
Assist with development of instructions, minimum qualifications, mandatory requirements, proposal forms, pricing schedules, implementation milestones, performance expectations, data and reporting requirements, quality-assurance standards, and contract exhibits. Review the draft RFP for internal consistency and alignment among scope, budget, schedule, evaluation criteria, and anticipated contract terms. Support bidder with creation of distribution lists, addenda, and documentation of release and response deadlines.
Q&A support
Review submitted questions by proposers. Draft responses to scope of work related questions.
Submit to CalChoice for distribution through existing procurement channels.
Maintain a question-and-answer log, group duplicative questions, identify items requiring legal, regulatory, technical, or procurement review, and draft clear, non-preferential responses. Support preparation of formal addenda when responses modify or clarify solicitation requirements. Track deadlines and ensure all proposers receive materially equivalent information through CalChoice's approved channels.
Proposalreview framework
Support drafting a proposal grading rubric and necessary evaluation forms related to the scope of work component of the RFP. Advise on response priorities for weighting determination.
Develop scoring guidance that defines evaluation rubric, required evaluator narratives, treatment of pass/fail requirements, and procedures for handling clarifications, exceptions, and non-responsive proposals. Support evaluator orientation, conflict-of-interest disclosures, independent scoring, consensus meetings, reference checks, and documentation of final recommendations.
Maintain an auditable evaluation file containing score sheets, notes, clarifications, and approval records, subject to CalChoice's procurement and records-retention requirements.
Contracts and negotiations support
Support CalChoice in drafting scope portion of contracts for the selected installation contractor.
Support negotiation of scope, budget, and timeline. Ensure CalChoice and its customers’ best interests are accounted for and contracts include necessary detail to support reporting, data collection, data security and management.
1.6. Program webinar
Support CalChoice with hosting a public webinar allowing stakeholder input on the design, launch data, targets, and budget for the Program. Support CalChoice through the required CAEECC webinar process including relevant documents and presentations.
Integrating stakeholder feedback
Evaluate and integrate stakeholder feedback for program implementation.
Create a stakeholder comment matrix that records each comment, source, topic, disposition, rationale, owner, and resulting response or program-design change. Identify commentsrequiring policy or legal review, facilitate internal resolution, and maintain version control between the 42 proposed and revised program design. Prepare a concise response-to-commentssummary.
1.7. Program governance and launch readiness
Coordinate with implementer in the development of program implementation plan and supporting documents. Coordinate with implementer to identify milestones, dependencies, responsible parties, dates, and required approvals. Facilitate launch-readiness reviews covering contracts, budget, reporting, data systems, customer materials, implementer staffing, training, quality control, escalation pathways, and regulatory prerequisites. Maintain a readiness checklist, risk register, and decision log, and support resolution of critical launch items.
2.0. Program Administration Support
2.1. Reporting PCG meetings
Attend Reporting PCG meetings as necessary to advance priorities and to ensure client adheres to the most current reporting guidelines from Energy Division. Support client in the regulatory reporting environment by participating in critical meetings, advocating for the needs of client programs, and ensuring client representation. In order that all internal stakeholders are kept up-to-date, we will develop and circulate meeting summaries. Ensure CalChoice is added to relevant PCG meeting occurrences and receive corresponding notes.
2.2. Invoice support
Support the creation of an invoicing procedure from contractors and support review and coordination of budget transfer from SCE. Collect contractor budget, performance, progress, and results-oriented data to support invoicing.
2.3. Regulatory compliance and change management
Monitor relevant CPUC, Energy Division, and working-group guidance communicated through program administration channels; summarize changes that may affect CalChoice; and support development of impact assessments and implementation plans. Track applicable open regulatory proceedings, and coordinate updates to procedures, reporting configurations, and program materials. Elevate items requiring legal interpretation or formal policy decisions to CalChoice.
2.4. Program governance and status reporting
Facilitate recurring program administration meetings as requested and maintain agendas, action items, decisions, and dependencies. Share concise status reports covering upcoming milestones, reporting, contractor issues, regulatory matters, and decisions needed from CalChoice. Support escalation and resolution of cross-functional issues.
3.0. Program Implementation
3.1. Implementer management support
Provide ongoing management support of implementation contractor. Management will focus on efficiently and effectively managing schedule, budget, performance, progress, results management, and reporting.
Support implementer kickoff, review and feedback of work plans, deployment schedules, outreach plans, forecasts, and reporting calendars. Establish meeting cadences; monitor indicators; review pipeline, savings, expenditures, customer feedback, quality findings, and data completeness; and document actions 43 and decisions.
3.2. Reporting support
Support CalChoice with submitting CPUC required reporting. Support CalChoice’s CEDARS reporting system.
Perform pre-submission validation and reasonableness checks, maintain a data-issue and correction log, coordinate test files or trial submissions as appropriate, and support resolution of validation errors, rejected records, and resubmission requests. Provide user guidance and knowledge transfer to CalChoice staff and implementation contractors regarding data formats, submission schedules, and quality expectations.
3.3. Performance management and continuous improvement
Develop and maintain a program performance monitoring framework with approved targets, data sources, and reporting frequency. Analyze results against goals and forecasts; recommend corrective actions or design refinements. Facilitate periodic performance reviews and document approved actions, and follow-up dates.
3.4. Quality assurance and delivery oversight
Support development and monitoring of quality-assurance and quality-control requirements for customer eligibility, installation documentation, verification, contractor requirements, and data accuracy. Review quality findings and complaint trends, coordinate corrective actions, and track closure. If field inspections are performed, coordinate sampling, data exchange, findings, and remediation.
4.0. Evaluation Measurement & Verification (EM&V) Support
4.1. Recommend study areas based on existing program studies Consider CalChoice’s information needs alongside existing EM&V studies to determine which types and topics ofstudies provide the most value. Advice on related considerations like study type costs, schedules, and ED coordination.
Identify key research questions, methods, data needs, dependencies, and anticipated uses of findings.
Assess opportunities to leverage or coordinate with existing or planned studies to reduce duplication.
4.2. EM&V PCG group support
Attend quarterly EM&V PCG meetings and support CalChoice’s interests. Ensure CalChoice is added to relevant EM&V PCG meeting occurrences and receive corresponding notes.
Post potentialstudy areasto necessary channels
Coordinate the submission and approval of CalChoice EM&V study proposals with ED through existing EM&V infrastructure.
4.3. Study management and use of findings
At CalChoice's direction, support development of study scopes and schedules, coordination, review of work plans and draft findings, management of comments, and tracking of deliverables. Translate approved findings into actionable recommendations for program design, implementation, reporting, and data collection.
44 5.0. Ad hoc
5.1. Ad hoc support
Frontier Energy will provide on-call and as-needed services related to program implementation.
5.2. Training and knowledge transfer
Provide targeted training, working sessions, job aids, and handoff materials for CalChoice staff and designated contractors on procedures, systems, templates, and recurring responsibilities developed under this scope.
5.3. Transition and closeout support
At the completion of the implementation phase, contract period, or program transition, compile final work products, source files, status summaries, outstanding actions, and key contacts. Support orderly transfer of responsibilities, and identify recommended next steps and ongoing compliance or operational obligations.
45 FRONTIER ENERGY CATEGORY RATES
Frontier Energy uses category rates for labor cost. Categories below match titles of key team members listed.
Category 2026 2027 2028 2029
President 364 386 398 410
Vice President 358 379 391 395
Sr. Director 358 379 391 395
Director / Principal Consultant 335 355 366 377
Sr. Manager / Engineering Manager 298 316 326 336
Manager 264 280 289 298
Sr. Engineer / Sr. Program Manager 241 255 263 271
Engineer / Program Manager 200 212 218 225
Sr. Program Consultant / Sr. Analyst 182 193 199 205
Program Consultant / Analyst 158 167 172 177
Sr. Program Coordinator / Sr. Technician 134 142 146 151 Program Coordinator / Technician 116 123 127 131
Program Associate / Direct Install Technician 96 102 105 109 Administrative 80 80 80 85
COST PROPOSAL
For the purpose of estimating cost, Frontier Energy can only make assumptions with respect to what will be necessary for CalChoice program implementation. There are the essential five tasks.
Task # and Title Cost Category Estimated Budget Per Task
1.0. Setup and Procurement Support Administration $50,000
2.0 Program Administration Administration $60,000
3.0 Program Implementation Direct Implementation
Non-Incentive (DINI)
$70,000
4.0 EM&V Support EM&V $29,730
5.0 Ad hoc Administration $20,000
Total Not to Exceed $229,730
46 PROPOSED SCHEDULE
The proposed schedule below is subject to change depending on necessary CalChoice board approvals and the RFP process.
Milestone Schedule
Week of August 10, 2026 Meet with Program Subcommittee
Week of August 17, 2026 – September 2026 Set up regulatory and financial reporting procedures.
Set up CEDARS and Budget
August 2026 – October 5, 2026 Joint Cooperation Memo
August 1-31, 2026 RFP creation
October 7, 2026 CalChoice Board Meeting
Q4 2026 RFP Distribution
Q1 2027 Implementer selection
Q1 2027 Program Webinar
Q1 2027 Program Launch
Q2 2027 Program Implementation
Q3 2029 Program Ramp Down
47 STAFF REPORT
California Choice Energy Authority
10/7/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Communications Ad-Hoc Subcommittee
Item 6: Consider Approval of Recommendation from Communications Ad-Hoc Subcommittee Related to the Provision of Communications Services Effective in Fiscal Year 2027/2028
______________________________________________________________________ Recommendation:
Approve recommendation from the Communications Ad-Hoc Subcommittee related to the provision of communications services as follows:
1. Reduce the FY 2027/28 Marketing and Communications budget to $20,000.
2. Direct staff to evaluate options for website management and return to the Board with a recommendation to include:
• The cost of independently procuring domain registration, hosting, SSL certificates, and website platform/software services and transferring these items to CalChoice independent of Lancaster
3. Direct staff to schedule a future agenda item to discuss consideration of using CalChoice Member in-house graphic design services for regulatory required communications.
Fiscal Impact:
The Board approved communications budget for FY 2026/27 is $125,000. The recommended reduction to $20,000 in FY 2027/28 results in an overall reduction in the communications budget of $105,000 annually.
Background:
The Board Chair appointed a Communications Ad-Hoc Subcommittee (Subcommittee) to review CalChoice Communications needs and the related support services needed to meet those needs.
The Subcommittee has met several times to review the needs and evaluation options to meet those needs. The report from the Subcommittee follows.
48 Item 6
Communications
2 Marketing and Communications Subcommittee
Recommendation
Recommendation: Reduce the FY 2027-28 Marketing and Communications budget to $20,000.
The Subcommittee believes the reduced budget is sufficient to support routine communications, website management, required regulatory notices, and limited consultant support while maintaining flexibility for specialized services as needed.
1. Website Services ($200-$1,300 Estimated Annual Cost) The reduced budget is intended to cover website-related expenses, including:
• Domain registration
• Website hosting and SSL certificate services
• Website platform/software costs
• Routine website maintenance and updates
Staff are requested to evaluate options for website management and return to the Board with a recommendation. This evaluation should include:
• The cost of independently procuring domain registration, hosting, SSL certificates, and website platform/software services and transferring these items to CalChoice independent of Lancaster; and
The Subcommittee's understanding is that annual website-related costs are likely to be minimal relative to the proposed budget, leaving the majority of funds available for other communications needs.
2. Graphic Design Services
The City of Santa Barbara has offered to provide in-house graphic design services to participating CalChoice CCAs during FY 2027-28 for required regulatory communications, including the Power Content Label (PCL) and Joint Rate Comparison (JRC). • This will be brought to the Board as its own item with any associated cost if the Board is agreeable to the concept of services needed being fulfilled by a member agency For additional graphic design needs, including annual meeting materials, presentations, and special projects, consultant support may be utilized as needed. Rancho Mirage has successfully utilized freelance graphic design services on an as-needed basis and can provide staff with resources if desired.
3. Communications and Content Development
Routine website content management, social media updates, and communications are expected to be primarily staff managed.
49 Item 6
Communications
3 The Subcommittee recognizes that there is a cost associated with routing even minor website updates through a consultant. In many cases, the time required to email instructions, explain the requested change, review the update, and finalize the work may exceed the time it would take for staff to make the update directly.
The Subcommittee does not expect staff to perform website design, development, or major website redesign efforts. However, staff should be able to upload required documents, update links, post meeting materials, and make routine content updates to existing webpages.
The current CalChoice e-newsletter is not viewed as a particularly high-value communication tool. Should staff elect to continue the newsletter, the Subcommittee recommends that it be developed and managed primarily by staff, provide meaningful value for participating CCAs and stakeholders, and remain within the approved Marketing and Communications budget.
With website-related costs estimated at approximately $200-$1,300 annually, roughly $18,700- $19,800 of the proposed budget would remain available for consultant support, graphic design, content creation, design of meeting materials, website enhancements, and other communications needs as they arise.
4. Other Programs and Grant-Funded Initiatives
It is the Subcommittee's understanding that participating CCAs are responsible for marketing and outreach costs associated with individual programs and initiatives and are billed directly for those services.
Marketing and outreach costs associated with grant-funded programs are expected to be reimbursed through the applicable funding source. Accordingly, these costs are not included within the proposed $20,000 Marketing and Communications budget, as they are anticipated to be self-funded or reimbursed.
50 STAFF REPORT
California Choice Energy Authority
10/7/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Barbara Boswell, Treasurer
Item 7: Consider Providing Authorization to Evaluate an Energy Prepayment Financing Program and Solicitation of Specialized Financial and Legal Advisory Services
______________________________________________________________________ Recommendation:
Staff recommends that the Board of Directors:
1. Authorize staff to proceed with a feasibility and structuring analysis for a potential energy prepayment financing program;
2. Authorize staff to issue solicitations and/or requests for proposals or qualifications, consistent with CalChoice procurement requirements, for the specialized professional services necessary to evaluate and develop a potential transaction, including:
o an independent Municipal Advisor experienced in tax-exempt energy prepayment transactions; and
o specialized Energy Prepayment/Tax Counsel experienced in municipal energy prepayment transactions;
3. Authorize staff, with assistance from the selected Municipal Advisor and legal counsel, to evaluate CalChoice’s existing energy portfolio and potential transaction structures, including participation through the California Community Choice Financing Authority (“CCCFA”); and
4. Direct staff to return to the Board with the results of the feasibility analysis, estimated costs and savings, identified risks, recommended transaction structure, proposed participating Members, and any additional approvals necessary before CalChoice commits to or closes an energy prepayment financing transaction.
Fiscal Impact:
Approval of the recommended action does not authorize the issuance of bonds or commit CalChoice or any Member to an energy prepayment transaction. 51 Item 7
Prepay Financing
2 The initial fiscal impact would consist of costs associated with retaining the Municipal Advisor and specialized legal counsel to perform the feasibility and structuring analysis.
Staff would obtain competitive proposals and return to the Board as required under CalChoice’s applicable procurement and contracting authority.
If the analysis demonstrates that a prepayment financing is financially advantageous, subsequent staff reports would identify estimated transaction costs and projected gross and net savings before requesting authorization to proceed.
Background:
Energy purchases represent one of the largest costs of operating a Community Choice Aggregation (“CCA”) program. California CCAs have increasingly used tax-exempt energy prepayment financing to reduce the cost of electricity purchased under long-term power purchase agreements (“PPAs”).
The concept is relatively straightforward: instead of paying the full contract price for electricity as it is delivered over many years, a financing authority issues tax-exempt bonds that provide funds to prepay for a long-term supply of electricity. The lower cost associated with tax-exempt financing creates an economic benefit that can be passed through to the CCA as a discount on the price it otherwise would pay for the energy.
The California Community Choice Financing Authority (“CCCFA”) was established specifically to act as a conduit issuer of revenue bonds for California CCAs undertaking these transactions.
CCCFA’s current policies provide a formal process for membership, professional-team selection, transaction review and issuance of energy prepayment bonds.
The structure has now been used extensively by California CCAs. According to the California Community Choice Association (“CalCCA”) FAQs on CCA Green Bonds Prepayment Transaction on the CalCCA website, CCCFA has issued approximately $23 billion of prepayment bonds, producing approximately $150 million of annual savings for participating CCA customers.
HOW ENERGY PREPAYMENT FINANCING WORKS
In simplified terms, a traditional PPA works like this:
CCA receives electricity → CCA pays the contract price as electricity is delivered.
A prepayment transaction adds a tax-exempt financing structure:
Investors purchase tax-exempt bonds → bond proceeds fund an upfront energy prepayment → the energy supplier provides electricity over time → the CCA purchases that electricity at a discounted price.
The economic benefit is largely created by the difference between taxable and tax-exempt financing costs. The value of that financing advantage is shared through the transaction structure, allowing the CCA to receive a discount from the price it otherwise would pay for the applicable electricity.
52 Item 7
Prepay Financing
3 Importantly, this is not simply CalChoice borrowing money and using the proceeds to pay its electric bills. The transaction involves a specialized financing structure with a conduit bond issuer, prepaid energy supplier, trustee, bondholders, contractual energy arrangements and various financial and legal protections.
WHY THIS MAY BE PARTICULARLY BENEFICIAL TO CALCHOICE
CalChoice was created to allow its member CCAs to obtain economies of scale while preserving local control. Each member operates its own CCA program and establishes its own rates, while CalChoice pools resources and performs important functions collectively, including resource procurement.
A prepayment program could potentially extend this existing economies-of-scale model to the financing of CalChoice Members energy portfolios.
Potential benefits include:
Reduced Energy Costs.
A successful transaction could provide a contractual discount on eligible energy purchases. Since purchased power is a significant CCA operating expense, even a modest percentage reduction can produce meaningful savings over several years.
Rate Stability and Flexibility.
Reducing the cost of contracted energy can provide additional flexibility to participating Members when establishing retail electric rates and managing reserves.
No Need to Renegotiate the Basic Economics of Every PPA.
The financing is generally structured around existing long-term energy contracts. Certain PPAs may require amendments, assignments, novations or counterparty consent, but the objective is to obtain a financing discount on energy CalChoice already intends to purchase rather than changing the underlying renewable-energy procurement strategy.
Economies of Scale.
CalChoice already aggregates procurement activities for its members. Combining eligible energy volumes from multiple participating members could potentially create sufficient scale for an efficient prepayment transaction.
Preservation of Local Control.
The feasibility study can be structured so that only Members that elect to participate are included. Participation by one member therefore need not automatically require participation by every CalChoice member.
Potential Customer Benefit.
Ultimately, lower wholesale power costs can provide participating CCAs with additional resources to support competitive rates, reserves, customer programs or other locally determined priorities.
53 Item 7
Prepay Financing
4 IMPORTANT LIMITATIONS
The savings achieved by other CCAs should not be assumed to be available to CalChoice.
Actual economics depend upon several factors, including:
• size and characteristics of eligible PPAs;
• amount and timing of eligible energy deliveries;
• federal tax requirements;
• taxable versus tax-exempt interest-rate spreads;
• credit quality of transaction counterparties;
• PPA assignment and novation provisions;
• costs of issuing the bonds;
• legal and professional fees;
• market conditions when the transaction is priced; and • contractual provisions governing repricing, termination and replacement of energy supplies.
For these reasons, staff recommends completing an independent feasibility analysis before seeking authorization for a transaction.
PROPOSED TECHNICAL TEAM
Energy prepayment transactions are highly specialized. Staff recommends initially retaining two independent advisors to represent CalChoice’s interests.
1. Independent Municipal Advisor
The Municipal Advisor would serve as CalChoice’s independent financial advisor and should have demonstrated experience with California CCA energy prepayment transactions.
The scope would include:
• evaluating the financial feasibility of a CalChoice member transaction; • screening potential PPA and other eligible energy volumes; • developing alternative transaction sizes and structures; • estimating gross and net savings;
• evaluating participation by individual Members;
• advising regarding CCCFA requirements;
• developing a subsequent solicitation for an investment bank/prepaid energy supplier; • independently evaluating bank proposals;
• evaluating transaction risks and financial protections; • establishing recommended minimum savings requirements; • reviewing transaction economics; and
• independently verifying pricing before any transaction closes.
CCCFA’s current procedures identify engagement of an MSRB-registered municipal financial advisor experienced in CCA prepayment transactions as a typical initial step in the process. 54 Item 7
Prepay Financing
5 2. Specialized Energy Prepayment/Tax Counsel
Prepayment counsel would advise CalChoice regarding the specialized legal and federal tax aspects of the transaction.
The scope would include:
• determining the appropriate legal structure for CalChoice and its Members; • reviewing applicable CalChoice governing agreements and authorities; • evaluating federal tax requirements for energy prepayment financing; • determining CCCFA membership and transaction requirements; • identifying PPA assignment, novation and consent requirements; • advising regarding allocation of obligations and savings among participating Associate Members;
• negotiating prepaid energy and related transaction agreements; • reviewing counterparty credit and termination protections; and • coordinating with CalChoice’s existing general and energy counsel.
Other transaction professionals—including bond counsel, disclosure counsel, an underwriter/prepaid energy supplier, trustee, rating agency and potentially a green-bond verifier—would generally be added later if the feasibility analysis supports proceeding.
PROPOSED PROCESS
Staff proposes the following phased approach.
Phase 1 — Assemble Technical Team | Months 1–2
Issue solicitations, evaluate proposals and retain an independent Municipal Advisor and specialized Energy Prepayment/Tax Counsel.
Phase 2 — Feasibility and Portfolio Analysis | Months 2–3 The technical team would review CalChoice Member energy portfolios and identify PPAs and other energy volumes potentially suitable for prepayment.
The analysis would determine:
• potentially eligible annual MWh;
• participating Members;
• estimated transaction size;
• preliminary gross and net savings;
• contracts requiring amendment or counterparty consent; • proposed allocation of savings;
• legal and tax structure; and
• major transaction risks.
BOARD CHECKPOINT — FEASIBILITY RESULTS
Staff would return to the Board with the results before CalChoice commits to a financing transaction.
55 Item 7
Prepay Financing
6 The Board would then determine whether to authorize staff to proceed to transaction development.
Phase 3 — Transaction Team and Competitive Solicitation | Months 3–4 If authorized, CalChoice and its Municipal Advisor would competitively solicit proposals from qualified investment banks/prepaid energy suppliers.
Proposals would be evaluated based on factors such as:
• projected net savings;
• transaction structure;
• counterparty credit;
• experience completing CCA prepayment transactions;
• financing terms;
• repricing provisions;
• termination protections;
• flexibility; and
• transaction costs.
Phase 4 — Transaction Structuring and PPA Amendments | Months 4–6 CalChoice, its advisors and the selected financing counterparty would negotiate the prepayment structure and associated agreements.
Existing PPAs selected for the financing would be reviewed and, where required, amended or novated with the applicable energy suppliers.
The transaction team would also coordinate with CCCFA regarding membership, financing documentation and required approvals.
Phase 5 — Final Approval | Months 6–7
Once the transaction is substantially structured, staff would return to the CalChoice Board with final proposed transaction parameters.
These would include:
• total financing amount;
• participating Members;
• PPAs included;
• expected energy discount;
• projected annual and total savings;
• transaction costs;
• counterparty structure;
• material risks;
• termination provisions; and
• recommended minimum savings threshold.
No bonds would be issued based solely upon the authorization requested in this staff report. 56 Item 7
Prepay Financing
7 CCCFA requires energy prepayment transactions to be approved by the Board of the member CCA proposing the transaction before the CCCFA Board considers final bond issuance.
Phase 6 — Pricing and Closing | Months 7–8
Following all required approvals, the bonds would be marketed and priced.
CalChoice’s Municipal Advisor would independently evaluate the final pricing and confirm that the transaction satisfies the minimum financial parameters authorized by the Board before closing.
ESTIMATED TIMELINE
The preliminary schedule is:
Activity Estimated Timing
Board authorization to investigate October 2026
Municipal Advisor/Prepay Counsel solicitations October – November 2026 Portfolio and feasibility analysis December – January 2027 Board review of feasibility results February 2027
Prepaid supplier/investment bank solicitation February – March 2027 Transaction structuring March – May 2027
PPA amendments/novations March – May 2027
CCCFA coordination and approvals April – June 2027
Final CalChoice/participating-member approvals May – June 2027 Rating, bond pricing and closing July – August 2027
Staff recommends planning for approximately six to ten months from project initiation through potential closing, recognizing that the schedule will depend heavily upon PPA amendments, counterparty approvals, market conditions and required governing-board actions.
CALCHOICE-SPECIFIC STRUCTURAL ANALYSIS
An important component of the feasibility study will be determining how a prepayment transaction should operate within CalChoice’s unique structure.
CalChoice performs resource procurement and other functions collectively, while each Member maintains its own CCA program and local rate-setting authority.
The technical team should therefore evaluate whether the most efficient structure is:
All-Member Participation — eligible contracts and energy volumes from all participating CalChoice Members are included;
Participating-Member Structure — only Members with appropriate eligible energy volumes participate; or
Initial/Pilot Transaction — CalChoice begins with a smaller group of eligible contracts and members and evaluates additional transactions after successfully completing the first financing. 57 Item 7
Prepay Financing
8 The analysis should also establish a transparent methodology for allocating transaction costs and savings among participating Associate Members.
QUESTIONS THE FEASIBILITY STUDY SHOULD ANSWER
Before recommending that CalChoice proceed with a financing, staff expects the technical team to answer at least the following:
1. Which CalChoice PPAs and energy volumes are eligible?
2. How much annual energy could reasonably be included?
3. Which Members should participate?
4. What is the appropriate transaction size?
5. What gross percentage discount is reasonably achievable?
6. What are the expected net savings after all transaction costs?
7. Which existing PPAs require amendments, assignments, novations or supplier consent?
8. What financial and contractual risks remain with CalChoice and the participating members?
9. What happens if a participating member withdraws, a PPA terminates or an energy supplier defaults?
10. What minimum savings threshold should the Board establish before a transaction may close?
11. What CalChoice, Member and CCCFA approvals are required?
CONCLUSION
Energy prepayment financing has developed into an established cost-management tool for California CCAs. Recent transactions demonstrate that the structure can generate material reductions in long-term purchased-power costs, although the savings available to CalChoice cannot be determined until its specific portfolio and organizational structure are evaluated.
CalChoice’s existing model of collectively procuring energy and sharing specialized services among independently operated member CCAs makes evaluation of a prepayment program appropriate. The proposed approach allows CalChoice to determine whether the opportunity is financially and operationally beneficial without committing CalChoice or its Associate Members to a financing transaction.
Staff therefore recommends authorizing the initial feasibility phase and the competitive solicitation of the specialized Municipal Advisor and Energy Prepayment/Tax Counsel necessary to evaluate and structure the opportunity.
ATTACHMENTS
None
58 STAFF REPORT
California Choice Energy Authority
10/07/26
RJ
Date: October 7, 2026
To: Chair Parenteau and Authority Members
From: Allison Burns, General Counsel
Item 13: Consider Approval of Appointment and/or Direction Related to Chief Executive Officer Position
Recommendation:
Approve appointment and/or provide direction related to the Chief Executive Officer position.
Fiscal Impact:
The adopted Fiscal Year 2026/27 includes $300,000 for the Chief Executive Officer position, $144,000 for a part time interim Chief Executive Officer and an additional $156,000 for a regular Chief Executive Officer.
Background:
Section 3.C.3 of the California Choice Energy Authority (CalChoice) Joint Powers Agreement (JPA) and Bylaws Section 2.2 authorize the Board to appoint a Chief Executive Officer (CEO). At its Special Meeting June 10, 2025, the Board approved an agreement with the City of San Jacinto for Rob Johnson to serve as Interim Chief Executive Officer through June 30, 2026, which was approved for extension through December 31, 2026 by the Board at its August 5, 2026 Regular Meeting.
Attachments:
None
59