Regular Meeting of the Board of Directors of the
Peninsula Clean Energy Authority (PCEA)
Minutes
Thursday, December 21, 2023
6:30 p.m.
Zoom Video Conference and Teleconference
CALL TO ORDER
Meeting was called to order at 6:34 p.m. in virtual teleconference, in the Peninsula Clean Energy Authority lobby, and in the Los Banos City Hall conference room A.
ROLL CALL
Participating:
Rick DeGolia, Atherton, Chair
Julia Mates, Belmont
Coleen Mackin, Brisbane
Donna Colson, Burlingame, Vice Chair
Carlos Romero, East Palo Alto
Sam Hindi, Foster City, arrived at 6:38 p.m.
Harvey Rarback, Half Moon Bay
Leslie Ragsdale, Hillsborough
Betsy Nash, Menlo Park
Anders Fung, Millbrae
Tygarjas Bigstyck, Pacifica
Jeff Aalfs, Portola Valley
Elmer Martinez Saballos, Redwood City
Marty Medina, San Bruno
John Dugan, San Carlos
Amourence Lee, San Mateo
Jennifer Wall, Woodside
Absent:
Dave Pine, San Mateo County
Ray Mueller, San Mateo County
Ken Gonzalez, Colma
Roderick Daus-Magbual, Daly City
Paul Llanez, Los Banos
James Coleman, South San Francisco
A quorum was established.
PUBLIC COMMENT
Brian Schmidt
David Mauro
ACTION TO SET THE AGENDA AND APPROVE REMAINING CONSENT AGENDA ITEMS
Director Dugan shared support of Agenda Item Number 3, “Approval of a $250,000 Contract Amendment with Green Light Auto, to Provide Used EV Rebates in the Used Electric Vehicle Incentive Program.”
MOTION: Director Romero moved, seconded by Director Rarback to set the Agenda, and approve Agenda Item Numbers 1-4.
1. Approval of Two EV Ready Program Fund Reservation Agreements, Providing Approximately $860,000 in Customer Incentives
2. Appointment of Nicholas Bijur as Peninsula Clean Energy Treasurer
3. Approval of a $250,000 Contract Amendment with Green Light Auto, to Provide Used EV Rebates in the Used Electric Vehicle Incentive Program
4. Approval of Two New Agreements with the Law Firm of Keyes & Fox LLP in an Amount Not-to-Exceed $95,000 and $90,000 Respectively, for a Total Not-to-Exceed Amount of $185,000, Replacing our Prior Agreement
MOTION PASSED: 17-0 (Absent: San Mateo County, San Mateo County, Colma, Daly City, Los Banos, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez
Saballos
X
San Bruno Director Medina X
San Carlos Director Dugan X
San Mateo Director Loraine X
South San
Francisco
Director Coleman X
Woodside Director Bryant X
Total 17 6
REGULAR AGENDA
5. Chair Report
Chair DeGolia shared that a nominating committee for the positions of Chair and Vice Chair will be formed at the January 2024 Board Meeting.
6. CEO Report
Shawn Marshall, Chief Executive Office, gave a report including follow up on the November Board Retreat and an update on the 2024 workplan, information on an energy programs subcommittee formation, an update on the launch of PG&E’s Solar Billing Plan, changes to the Used EV Rebate, and a staffing update.
Marc Hershman, Director of Government Affairs, gave an update on legislative activity.
Chair DeGolia announced that Agenda Item Number 7, CAC Report, will be heard later in the meeting.
8. Approval of the Fiscal Year End (FYE) 2024 Surplus Funds Committee Recommendations Including an Update to Policy 18, "Financial Reserves Policy"(Action) Shawn Marshall, Chief Executive Officer, gave a presentation covering the recommendations from the Fiscal year 2024 Surplus Funds Committee.
Director Rarback asked how member agencies will be alerted about these incentives. Shawn explained that Staff is working on a webinar and mailer for relevant city staff.
Vice Chair Colson asked for clarification on the amounts for member agency grants. Shawn explained that the chart is a bit outdated but would be updated and sent out.
Shawn noted that a change from the recommendation and the December 11, 2023 Executive Committee Meeting was an update of the language to “Peninsula Clean Energy will” versus “Peninsula Clean Energy will consider” as the Executive Committee thought this was clearer language and helpful should Peninsula Clean Energy try to get a new credit agency rating.
Director Romero noted that combining parts b and d of the staff recommendation brings to total adjusted days cash on hand to almost 280 days and asked how the 10% cost of energy contingency is affected annually. Shawn shared that this answer feeds into a bigger question on a potential need for a rate stabilization fund.
MOTION: Director Aalfs moved, seconded by Director Mates to approve the Fiscal Year End 2024 Surplus Funds Committee allocations and related recommendations:
1. Approve slate of 8 funding allocations totaling $68,000,000;
2. Establish an annual reserve target of 250 adjusted days cash on hand, above which the Board would consider a surplus fund allocation(s);
3. Modify Peninsula Clean Energy's (PCE) Policy 18, "Financial Reserves Policy" to state that if the Operating Reserve is projected to be below 180 days over the next 12 months, PCE will implement plans, such as increasing rates/reducing PCE’s discount, to return Operating Reserves to the level of 180 days within two fiscal years; and,
4. Include a standard 10% cost of energy contingency in PCE's annual power supply budget.
MOTION PASSED: 17-0 (Absent: San Mateo County, San Mateo County, Colma, Daly City, Los Banos, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez
Saballos
X
San Bruno Director Medina X
San Carlos Director Dugan X
San Mateo Director Loraine X
South San
Francisco
Director Coleman X
Woodside Director Bryant X
Total 17 6
9. Approval of Updates to Policy 13, "Delinquent Accounts and Bad Debt Collections" (Action)
Leslie Brown, Director of Account Services, gave a presentation on updates to Policy 13, “Delinquent Accounts and Bad Debt Collections".
Director Ragsdale asked for communications to customers to be separated from a mention of collections. Leslie explained that the communications haven’t been drafted yet, but do plan to have separate communications.
Director Hindi asked how large the bad debt balances could get. Leslie explained that some of these accounts are for commercial customers and can be quite large.
Director Hindi asked if Peninsula Clean Energy would offer payment plans. Leslie explained that ideally the accounts would be paid in one transaction, but that if a couple payments were needed that could be considered on a case-by-case basis.
MOTION: Director Mates moved, seconded by Director Hindi to approve the proposed updates to Policy 13, “Delinquent Accounts and Bad Debt Collections”.
MOTION PASSED: 17-0 (Absent: San Mateo County, San Mateo County, Colma, Daly City, Los Banos, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez
Saballos
X
San Bruno Director Medina X
San Carlos Director Dugan X
San Mateo Director Loraine X
South San
Francisco
Director Coleman X
Woodside Director Bryant X
Total 17 6
10.Approval of the Creation of the Climate Champion Award (Action) Marc Hershman, Director of Government Affairs, gave a presentation for the creation of a Peninsula Clean Energy Climate Champion Award including how the award would work.
Vice Chair Colson suggested that diversity is brought to the forefront when selecting recipients for these awards.
Director Mates asked for criteria that the Board would be looking at so the award wouldn’t be subjective. Chair DeGolia suggested that Staff return with criteria.
Vice Chair Colson suggested a separate award for organizations and one for persons.
MOTION: Vice Chair Colson moved, seconded by Director Rarback to authorize the establishment of a Climate Champion Award to be selected annually beginning in 2024.
MOTION PASSED: 17-0 (Absent: San Mateo County, San Mateo County, Colma, Daly City, Los Banos, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez
Saballos
X
San Bruno Director Medina X
San Carlos Director Dugan X
San Mateo Director Loraine X
South San
Francisco
Director Coleman X
Woodside Director Bryant X
Total 17 6
11.Approval of a Contract with IDLab Global for Brand and Marketing Services in an Amount Not-to-Exceed $300,000 for a term ending December 31, 2024 (Action) Gwen Rose, Director of Marketing and Account Services, gave a presentation on a contract with ID Lab for brand and marketing services including the background on Peninsula Clean Energy’s brand evolution, the marketing Request for Proposals process, brand and marketing deliverables, and projected timeline.
Director Dugan shared that staff did a robust search.
Director Mackin noted that, “transitioning from a primary transactional approach to a more customer-centric approach” is a huge shift and well-timed.
MOTION: Director Dugan moved, seconded by Director Mackin to delegate authority to the CEO to sign a brand and marketing services contract with IDLab Global for a total of $300,000 through December 31, 2024.
MOTION PASSED: 17-0 (Absent: San Mateo County, San Mateo County, Colma, Daly City, Los Banos, South San Francisco)
JURISDICTION BOARD MEMBER YES NO ABSTAIN ABSENT
San Mateo County Director Pine X
San Mateo County Director Mueller X
Atherton Director DeGolia X
Belmont Director Mates X
Brisbane Director Mackin X
Burlingame Director Colson X
Colma Director Gonzalez X
Daly City Director Daus-Magbual X
East Palo Alto Director Romero X
Foster City Director Hindi X
Half Moon Bay Director Rarback X
Hillsborough Director Ragsdale X
Los Banos Director Llanez X
Menlo Park Director Nash X
Millbrae Director Fung X
Pacifica Director Bigstyck X
Portola Valley Director Aalfs X
Redwood City Director Martinez
Saballos
X
San Bruno Director Medina X
San Carlos Director Dugan X
San Mateo Director Loraine X
South San
Francisco
Director Coleman X
Woodside Director Bryant X
Total 17 6
12.2024 Peninsula Clean Energy Customer Energy Rate Update (Discussion) Leslie Brown, Director of Account Services, gave an update on the 2024 Peninsula Clean Energy Customer Energy Rates including background, the 2024 Peninsula Clean Energy rate update plan, and the impact of holding off on immediate rate change.
Director Medina asked for public explanation on where Peninsula Clean Energy rates come from.
Chair DeGolia agreed with holding on rate changes until Staff completes their analysis.
Director Mackin shared that many customers do not understand they are Peninsula Clean Energy customers and noting that current rate increases are from PG&E and not from Peninsula Clean Energy.
7. Community Advisory Committee Report
Kirsten Andrews-Schwind, Senior Manager, Community Relations, gave a presentation with a recap of the December 7, 2023 Community Advisory Committee, noting that Brandon Chein resigned from the Committee.
Director Ragsdale asked about filling the vacant position on the Committee. Kirsten explained that there were great candidates who applied last year, and explained that traditionally applications open early, but that returning to prior applicants is being considered this year.
Vice Chair Colson suggested opening up this opening to the public as another source of outreach to the community and suggested only returning to prior applicants to fill the remainder of the term.
Director Mackin asked if a full term can begin on a different cycle. Vice Chair Colson explained that terms are staggered and that skill sets are varied.
Chair DeGolia requested a future report on openings on the Community Advisory Committee and when those positions will open.
13.Board Members’ Reports
Director Mackin shared that Agenda Item Number 14 has a note about “Key Accounts Engagement” and Caltrain’s energy and requested a discussion on expectations from Caltrain and future capacity as well as a presentation on Direct Access.
Director Nash appreciated the Board Member Training Binder.
Vice Chair Colson noted that Julia Mates will be leaving the Board in January.
Director Loraine from San Mateo and discussed assuming as primary Board Member.
Shawn Marshall noted that a Board Orientation will be put together for new board members next year.
ADJOURNMENT
Meeting was adjourned at 7:50 p.m.