Redwood Coast Energy Authority Board of Directors
May 25, 2023

Redwood Coast Energy Authority
633 3rd Street, Eureka, CA 95501
Phone: (707) 269-1700 Toll-Free (800) 931-7232 Fax: (707) 269-1777 E-mail: [email protected] Web: www.redwoodenergy.org

BOARD OF DIRECTORS MEETING AGENDA
Jefferson Community Center Auditorium May 25, 2023
1000 B Street, Eureka, CA 95501 Thursday, 3:30 p.m.

Any member of the public needing special accommodation to participate in this meeting or access the meeting materials should email [email protected] or call (707) 269- 1700 at least 3 business days before the meeting. Assistive listening devices are available.

Pursuant to Government Code section 54957.5, all writings or documents relating to any item on this agenda which have been provided to a majority of the Board, including those received less than 72 hours prior to the Committee’s meeting, will be made available to the public at www.RedwoodEnergy.org.

NOTE: Speakers wishing to distribute materials to the Board at the meeting, please provide 13 copies to the Board Clerk.

THIS IS A HYBRID IN-PERSON AND VIRTUAL MEETING.

The Board of Directors has returned to in-person hybrid meetings. When attending Board meetings, please socially distance as much as possible and be courteous to those who choose to wear a mask.

To participate in the meeting online, go to https://us02web.zoom.us/j/81972368051. To participate by phone, call (669) 900-6833 or (253) 215-8782. Enter webinar ID: 819 7236 8051.

To make a comment during the public comment periods, raise your hand in the online Zoom webinar, or press star (*) 9 on your phone to raise your hand. You will continue to hear the meeting while you wait. When it is your turn to speak, a staff member will unmute your phone or computer. You will have 3 minutes to speak.

You may submit written public comment by email to [email protected].

Please identify the agenda item number in the subject line. Comments will be included in the meeting record but not read aloud during the meeting.

While downloading the Zoom application may provide a better meeting experience, Zoom does not need to be installed on your computer to participate. After clicking the webinar link above, click “start from your browser.”
1 RCEA May 25, 2023, Board of Directors Meeting Agenda

OPEN SESSION Call to Order

1. ROLL CALL - REMOTE DIRECTOR PARTICIPATION

1.1. Approve teleconference participation request for this meeting by Director pursuant to Brown Act revisions of AB 2449 due to an emergency circumstance to be briefly described.

2. REPORTS FROM MEMBER ENTITIES

3. ORAL COMMUNICATIONS
This time is provided for people to address the Board or submit written communications on matters not on the agenda.

At the conclusion of all oral communications, the Board may respond to statements. Any request that requires Board action will be set by the Board for a future agenda or referred to staff.

4. CONSENT CALENDAR
All matters on the Consent Calendar are considered to be routine by the Board and are enacted in one motion. There is no separate discussion of any of these items. If discussion is required, that item is removed from the Consent Calendar and considered separately. At the end of the reading of the Consent Calendar, Board members or members of the public can request that an item be removed for separate discussion.

4.1 Approve Minutes of April 27, 2023, Board Meeting.

4.2 Approve Disbursements Report.

4.3 Accept Financial Reports.

4.4 Accept Fiscal Year 22-23 Budget Update and Quarterly Budget Report through Q3.

5. REMOVED FROM CONSENT CALENDAR ITEMS
Items removed from the Consent Calendar will be heard under this section.

6. NEW BUSINESS

6.1. Hear a Presentation by Sharon Kramer, H.T. Harvey & Associates, on CStories:

A Department of Energy-Funded Offshore Wind Community Engagement Project (Information only)
COMMUNITY CHOICE ENERGY (CCE) BUSINESS (Confirm CCE Quorum) Items under this section of the agenda relate to CCE-specific business matters that fall under RCEA’s CCE voting provisions, with only CCE-participating jurisdictions voting on these matters with weighted voting as established in the RCEA joint powers agreement.

7. OLD CCE BUSINESS – None.

8. NEW CCE BUSINESS

8.1. 2023-2025 Power Portfolio Procurement Options
Approve a reduced renewable procurement target of 41% for 2023 with the option to backfill the 8% reduction with carbon-free energy at staff’s discretion depending on market availability.
2 RCEA May 25, 2023, Board of Directors Meeting Agenda

END OF COMMUNITY CHOICE ENERGY (CCE) BUSINESS

9. OLD BUSINESS – None.

10. NEW BUSINESS (continued)

10.1 Salary and Benefit Schedule Update
Approve the following:

1. Update to the RCEA salary schedule including a 14% salary adjustment effective July 1, 2023,

2. Addition of a 401(a) retirement plan and authorize the Executive Director to execute all applicable documents,

3. Increase of RCEA’s contribution to eligible employee’s retirement by $4,000/year effective July 1, 2023.

4. Adoption a longevity incentive payable once per calendar year of $1,000 per year for employees with 5-9 years of service, $2,500 per year for employees with 10-14 years of service, and $3,500 per year for employees with 15 or more years of service effective July 1, 2023.

5. Addition of Juneteenth to the paid holidays provided to RCEA staff, effective June 19, 2023.

10.2 Fiscal Year 2023-24 Preliminary Draft Budget and Addition of Staff Positions Provide guidance and input to staff on draft FY23-24 budget.

Approve:

1. Addition of a Finance Specialist,

2. Addition of a Customer Service Associate,

3. Addition of a Rural REN Manager (starting October 2023),

4. Addition of a Rural REN Specialist (starting January 2024), and

5. Addition of an Infrastructure Program Manager (starting January 2024).

11. STAFF REPORTS

11.1 Executive Director’s Report (Information only)

12. FUTURE AGENDA ITEMS
Any request that requires Board action will be set by the Board for a future agenda or referred to staff.

13. ADJOURNMENT

NEXT REGULAR MEETING
Thursday, June 22, 2023, 3:30 p.m.

Jefferson Community Center Auditorium, 1000 B Street, Eureka, CA 95501.

Online and phone participation will also be possible via Zoom. 3 This page
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STAFF REPORT
Agenda Item # 1.1
AGENDA DATE: May 25, 2023
TO: RCEA Board of Directors
FROM: Eileen Verbeck, Deputy Executive Director
SUBJECT: Member Teleconference Participation

BACKGROUND
Since emergency Brown Act meeting law changes went into effect in 2020 due to the COVID-19 public health emergency, the RCEA Board of Directors, Community Advisory Committee and the subcommittees of those bodies met online with no physical, public meeting location.

Governor Newsom signed AB 361 into law in September 2021, which allowed these bodies to continue meeting completely virtually without publishing each member’s participation location while the COVID state of emergency continued and state or local officials recommended social distancing measures or the RCEA Board determined that meeting in person posed health and safety risks.

The COVID-19 State of Emergency ended on February 28, 2023, and RCEA Board and CAC meetings returned to meeting in-person at a physical location, with allowances under existing Brown Act rules or new AB 2449 Brown Act rules should a Board or CAC member need to participate from a remote location for certain reasons. If another state of emergency is declared, these bodies may be able to return to completely remote meetings.

SUMMARY
RCEA Board Directors may attend up to two meetings per year from a remote location without making the location accessible to the public for the following reasons:

1. “Just cause”
a. To provide childcare or caregiving need to a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner;
b. Due to a contagious illness that prevents the member from attending in-person; c. Due to a need related to a physical or mental disability as defined in Government Code sections 12926 and 12926.1 not otherwise accommodated; and d. Due to travel while on official business of the legislative body or another state or local agency.

2. “Emergency circumstance” due to a physical or family medical emergency that prevents the member from attending in person.

If a Board Director would like to attend the meeting remotely due to an emergency circumstance, the Board will take action by majority vote to approve the Director’s remote participation. A vote is not necessary for a request to attend remotely for just cause. A brief 5

description, protecting the Director’s (or Director’s family member’s) medical privacy, needs to be provided in both cases.

The remotely participating Board Director needs to publicly disclose at the meeting before any action (vote) is taken, whether anyone 18 years of age or older is present in the room at the remote location with the Director, and the general nature of the individual’s relationship with the Director.

If the Board Director anticipates needing to participate remotely for more than 2 meetings per year, staff recommends arranging for a publicly and ADA accessible space with visual and audio meeting capabilities from which to participate.

Staff asks to be notified one-week in advance, if possible, of remote meeting attendance so the Director’s publicly and ADA accessible remote meeting address can be published in the agenda, if required per Brown Act open meeting laws.

Current Remote Participation Requests
As of the writing of this staff report, Director Frankie Myers has requested remote participation for “just cause” due to official Yurok Tribal Council business. There were no requests for “emergency circumstances” remote director participation.

RECOMMENDED ACTION (if needed)
Approve teleconference participation request for this meeting by Director pursuant to Brown Act revisions of AB 2449 due to an emergency circumstance to be briefly described. 6 Redwood Coast Energy Authority
633 3rd Street, Eureka, CA 95501
Phone: (707) 269-1700 Toll-Free (800) 931-7232 Fax: (707) 269-1777 E-mail: [email protected] Web: www.redwoodenergy.org

BOARD OF DIRECTORS DRAFT MEETING MINUTES
Jefferson Community Center Auditorium April 27, 2023
1000 B Street, Eureka, CA 95501 Thursday, 3:30 p.m.

Chair Sheri Woo called a regular meeting of the Board of Directors of the Redwood Coast Energy Authority to order on the above date at 3:34 p.m. Notice of this meeting was posted on April 22, 2023. PRESENT: Natalie Arroyo, Scott Bauer, Skip Jorgensen, Kris Mobley, Frankie Myers (by teleconference due to official Yurok Tribe business, a just cause, with no one 18 years of age or older present at this remote location), Elise Scafani, Vice Chair Sarah Schaefer, Jack Tuttle, Frank Wilson, Chair Sheri Woo. ABSENT: None. STAFF AND OTHERS PRESENT: General Counsel Nancy Diamond; Power Resources Director Richard Engel; The Energy Authority Client Services Manager Jaclyn Harr; Executive Director Matthew Marshall; Board Clerk Lori Taketa; Deputy Executive Director Eileen Verbeck.

REPORTS FROM MEMBER ENTITIES / ORAL COMMUNICATIONS
There were no Board director reports nor public comments on non-agenda items.

CONSENT CALENDAR

4.1 Approve Minutes of March 23, 2023, Board Meeting.

4.2 Approve Disbursements Report.

4.3 Accept Financial Reports.

4.4 Accept Quarterly Legislative Report.

4.5 Authorize the ad hoc Office Relocation Subcommittee to review new property listings with the Executive Director and staff and approve the Executive Director entering into negotiations and/or making an offer on any suitable property contingent on full Board approval.

4.6 Approve the Updated Terms and Conditions for the Community Choice Energy Program.

M/S: Arroyo, Bauer: Approve Consent Calendar items.

The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Jorgensen, Mobley, Myers, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: None. Abstain:

None.

NEW BUSINESS

7.1 Biennial Salary Survey Report
Deputy Executive Director Verbeck reported on the procedure staff used to compare RCEA salaries with Board-set industry benchmark agencies.
• RCEA midpoint salaries lag behind comparable agency midpoint salaries by 12%, aligning with Social Security Administration’s Cost of Living Adjustments. 7 RCEA April 27, 2023, Board of Directors Meeting DRAFT Minutes

• Directors suggested querying staff on their priorities (salary, specific benefits, etc.). • Local agency competition for finite local talent pool and the challenges of competing with other CCA’s remote-worker hiring were discussed.
• Staff retention and possible longevity pay, addition of Juneteenth holiday discussed.

Board directors expressed support for moving salaries closer to comparable agency salary midpoints to maintain competitiveness. (Director Myers briefly lost audio and video connection to the meeting from 3:40-3:43 and 3:49-3:54 p.m., prior to the vote.) M/S: Schaefer, Wilson: Accept 2023 Biennial Salary Survey Report.

The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Jorgensen, Mobley, Myers, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: None. Abstain:

None.

7.2 Blue Lake Rancheria Tribe’s Interest in Joining RCEA Executive Director Marshall reported on reaching out to area Tribes on their interest in joining RCEA and the Blue Lake Rancheria Tribal Council’s decision to request joint powers authority membership. Blue Lake Rancheria Tribal Councilmember and Tribal Administrator Jason Ramos introduced himself and described RCEA-Blue Lake Rancheria collaborative energy projects. The directors expressed support for the Blue Lake Rancheria’s membership and highlighted the ability to contribute to agency business without CCE business voting status.

M/S: Arroyo, Myers: Adopt Resolution 2023-6 Approving the Blue Lake Rancheria Tribe as a Member Agency of the Redwood Coast Energy Authority.

The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Jorgensen, Mobley, Myers, Scafani, Schaefer, Tuttle, Wilson, Woo. Noes: None. Absent: None. Abstain:

None.

Chair Woo confirmed a quorum was present to conduct CCE business.

NEW CCE BUSINESS

9.1 Quarterly Energy Risk Management Report
The Energy Authority Client Services Manager Jaclyn Harr presented the current financial update, described shifting energy market conditions and current impacts of Board-mandated environmental resource procurement.
• Sandrini Solar project completion is potentially delayed another 6 months to April 2024.
• Sandrini delay impacts RCEA’s energy procurement, necessitating short-term purchases.
• Extremely high electricity costs; intense competition for renewable energy power purchase agreements and other required renewable energy products; and increase in renewable energy project developer power in price negotiations were described. • Inflation Reduction Act changes make non-private developer renewable energy power projects, including CA Community Power (the CCA joint-procurement entity of which RCEA is a member) project development, more competitive. 8 RCEA April 27, 2023, Board of Directors Meeting DRAFT Minutes

• Proposed Central Procurement Entity’s impact on long-term renewable energy project development, with potential vulnerability to private developer exploitation, were described.

M/S: Jorgensen, Bauer: Accept Energy Risk Management Quarterly Report.

The motion passed with a unanimous vote. Ayes: Arroyo, Bauer, Jorgensen, Mobley, Scafani, Schaefer, Tuttle, Wilson. Noes: None. Absent: None. Non-Voting: Myers, Woo.

9.2 Humboldt’s Electric Future Planning Process Preview (Information only) Power Resources Director Engel reported on the Integrated Resource Plan biennial technical plan filing process and an initiative to gather community input on energy procurement priorities during non-filing years.
• Public engagement schedule: June 5 in-person workshop, online workshop date TBD. • Project helps educate community on energy procurement requirements and process. • Community Advisory Committee engagement was described. • Different Board member levels of engagement were discussed. • “Humboldt’s Electric Future” document was introduced. Directors expressed appreciation for the document’s accessibility.

9.3 Biomass Technical Advisory Group Update (Information only) Power Resources Director Engel reported on the process of forming the Biomass Technical Advisory Group, a goal identified in the RePower Humboldt Strategic Plan 2019 update. • Current membership list was presented. Staff still seeks vulnerable community representation, including from local Tribes and Hispanic community. • BTAG’s advisory role was clarified. Initially, the group will review and provide feedback on the Humboldt Sawmill Company’s annual biomass sources, emissions, and energy production report, and possibly revise this year’s data inquiry. • Directors suggested and offered support for additional members from the County Administrative Office and the Yurok Tribe.
• Directors agreed that discussion of controversial topics such as biomass should be done at times specified on the agenda to support public participation.

Community Advisory Committee Chair Dennis Leonardi commented that the CAC and its Alternative Biomass Uses Subcommittee suggested the stakeholder groups represented on the BTAG to enable broad-reaching discussion.

STAFF REPORTS

10.1 Executive Director’s Report (Information only)
• Timing for Fiscal Year 2023-24 Budget drafting and approval • Headwaters Fund and RCEA-supported grant for local contractors to receive electric vehicle charging equipment installation training
• RCEA’s 20th anniversary celebration at Mad River Brewery on April 28 at 3 p.m.

Chair Woo adjourned the meeting at 5:40 p.m.

Lori Taketa, Clerk of the Board
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10 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of March 31, 2023
Type Date Num Name Memo Amount
Liability Check 03/03/2023 ACH EDD Taxes -6,091.51
Liability Check 03/03/2023 ACH Internal Revenue Service Taxes -29,602.24 Liability Check 03/03/2023 ACH Newport Group Deferred compensation contributions -18,384.42 Liability Check 03/03/2023 14788 Umpqua Bank Health Savings Account contribution -72.07 Check 03/03/2023 14789 Customer PA Equipment Rebate - Res #DS-R-221118-0725 -260.00 Check 03/03/2023 14790 Customer PA Equipment Rebate - Res #DS-R-230202-0963 -940.00 Check 03/03/2023 14791 Customer PA Equipment Rebate - Res #DS-R-230214-0991 -190.00 Check 03/03/2023 14792 Customer PA Equipment Rebate - Res #DS-R-230215-0993 -80.00 Check 03/03/2023 14793 SacTown Contractor's Corp. PA install: Changing Tides Family Services -665.45 Check 03/03/2023 14794 Customer PA Equipment Rebate - Res #DS-R-230227-1044 -940.00 Check 03/03/2023 14795 Customer PA Equipment Rebate - Res #DS-R-230201-0961 -940.00 Check 03/03/2023 14796 Customer PA Equipment Rebate - Res #DS-R-230102-0839 -940.00 Check 03/03/2023 14797 Customer PA Equipment Rebate - Res #DS-R-230120-0908 -940.00 Check 03/03/2023 14798 Customer PA Equipment Rebate - Res #DS-R-230202-0964 -680.00 Check 03/03/2023 14799 Customer PA Equipment Rebate - Res #DS-R-230227-1045 -500.00 Check 03/03/2023 14800 Customer PA Equipment Rebate - Res #DS-R-230227-1030 -500.00 Check 03/03/2023 14801 Customer PA Equipment Rebate - Res #DS-R-230202-0967 -500.00 Check 03/03/2023 14802 Customer PA Equipment Rebate - Res #DS-R-230130-0945 -470.00 Check 03/03/2023 14803 Customer PA Equipment Rebate - Res #DS-R-230130-0948 -140.00 Check 03/03/2023 14804 Customer PA Equipment Rebate - Res #DS-R-230202-0966 -940.00 Check 03/03/2023 14805 Customer PA Equipment Rebate - Res #DS-R-230202-0965 -940.00 Check 03/03/2023 14806 Customer PA Equipment Rebate - Res #DS-R-230228-1046 -140.00 Check 03/03/2023 14807 Customer Heat Pump Non-Res Rebate #DS-R-230301-1049 -8,000.00 Check 03/03/2023 14808 Customer PA Equipment Rebate - Res #DS-R-230202-0968 -500.00 Check 03/03/2023 14809 VISA February 2023 Statement 01/21/2023 - 02/21/2023 -6,078.52 Check 03/03/2023 14810 Customer PA Equipment Rebate - Res #DS-R-230301-1048 -290.00 Check 03/03/2023 14811 Customer PA Equipment Rebate - Res #DS-R-230301-1050 -290.00 Check 03/03/2023 14812 Customer PA Equipment Rebate - Res #DS-R-230130-0954 -190.00 Bill Pmt -Check 03/03/2023 14813 Arcata Chamber of Commerce Membership dues 2023 -440.00 Bill Pmt -Check 03/03/2023 14814 Bithell, M. February 2023 Mileage Reimbursement -115.28 Bill Pmt -Check 03/03/2023 14815 Braun Blaising & Wynne Legal Services - Regulatory -January 2023 -4,439.97 Bill Pmt -Check 03/03/2023 14816 Colonial Life Colonial Life Premiums Feb 2023 -2,206.26 Bill Pmt -Check 03/03/2023 14817 Developed Employment Services, LLC. Facilities maintenance work-Yard Work -164.90 Bill Pmt -Check 03/03/2023 14818 Eureka Rubber Stamp Qty 6 Board meeting nameplates -84.86 Bill Pmt -Check 03/03/2023 14819 FedEx Res Kit - service 553 -58.13 Bill Pmt -Check 03/03/2023 14820 Hilson, D. Mileage reimbursement - February 2023 -57.64 Bill Pmt -Check 03/03/2023 14821 HSU - Sponsored Programs Foundation MD/HD ZEV subcontracting - Q4 2022 -17,305.64 Bill Pmt -Check 03/03/2023 14822 HSU - Sponsored Programs Foundation MD/HD ZEV subcontracting - Jan 2023 -13,854.61 Bill Pmt -Check 03/03/2023 14823 Humboldt Bay Coffee Co. February Office Coffee -43.25 Bill Pmt -Check 03/03/2023 14824 Kerekes, C. Mileage reimbursement - February 2023 -17.69 Bill Pmt -Check 03/03/2023 14825 Law Office of David Peffer January 2023 Legal Services - RuralREN reg support -6,417.00 Bill Pmt -Check 03/03/2023 14826 Local Worm Guy Compost pickup - January 2023 -30.00 Bill Pmt -Check 03/03/2023 14827 Mission Uniform & Linen Feb 2023 Mat Service -9.15 Bill Pmt -Check 03/03/2023 14828 NYLEX.net, Inc. Licensing, IT parts and March services -7,156.23 Bill Pmt -Check 03/03/2023 14829 Petty Cash Replenish petty cash for 02.01.23-02.28.23 reimbursement -93.52 Bill Pmt -Check 03/03/2023 14830 PG&E CCA January 2023 CCE Charges -22,116.57 Bill Pmt -Check 03/03/2023 14831 Ramone's Heat Pump and DEI workshop catering -1,142.73 Bill Pmt -Check 03/03/2023 14832 Recology February 2023 garbage service -95.55 Bill Pmt -Check 03/03/2023 14833 Rennie, J Mileage Reimbursement- February 2023 -114.63 Bill Pmt -Check 03/03/2023 14834 Times Printing Company Late Notice letter, 4 versions -283.31 Bill Pmt -Check 03/03/2023 14835 Whitchurch Engineering, Inc 701 5th Street visual inspection services escrow -1,500.00 Bill Pmt -Check 03/03/2023 14836 Winzler, John Office Lease - March 2023 -8,372.70 Check 03/03/2023 14837 SacTown Contractor's Corp. PA install: Bayside Garden Supply -12,216.97 Paycheck 03/03/2023 ACH Employees Payroll -73,392.12
Bill Pmt -Check 03/10/2023 ACH Keenan Anthem Medical Insurance March 2023 -37,833.24 Bill Pmt -Check 03/10/2023 ACH Sterling Administration FSA Healthcare and Dependent Care Funding - 50% 2023 -4,950.00 Bill Pmt -Check 03/10/2023 ACH Viridity Energy Solutions, Inc. Tierra Buena RA-February 2023 -16,900.00 Liability Check 03/17/2023 ACH EDD Taxes -5,874.41

11 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of March 31, 2023
Type Date Num Name Memo Amount
Liability Check 03/17/2023 ACH Internal Revenue Service Taxes -29,191.44 Liability Check 03/17/2023 ACH Newport Group Deferred compensation contributions -18,599.98 Bill Pmt -Check 03/17/2023 ACH CalPine Corporation Calpine February 2023 Costs -60,966.72 Bill Pmt -Check 03/17/2023 ACH Humboldt Sawmill Co. February 2023 Electricity Charge -307,562.96 Bill Pmt -Check 03/17/2023 ACH Leapfrog Energy February 2023 RA -9,218.40 Bill Pmt -Check 03/17/2023 ACH CalCCA Quarterly Invoice for Rate Case Management Special Assessment -3,502.62 Bill Pmt -Check 03/17/2023 ACH Snow Mountain Hydro, LLC 2/1/2023-2/26/23 Electricity -30,471.81 Liability Check 03/17/2023 14838 Umpqua Bank Health Savings Account contribution -72.07 Check 03/17/2023 14839 Customer Heat Pump Rebate #5700, 2nd payment -500.00 Check 03/17/2023 14840 Customer PA Equipment Rebate - Res #DS-R-230303-1056 -500.00 Check 03/17/2023 14841 SacTown Contractor's Corp. PA install: Humboldt Petroleum #1 -1,810.18 Check 03/17/2023 14842 Customer PA Equipment Rebate - Res #DS-R-230303-1059 -290.00 Check 03/17/2023 14843 Customer Heat Pump Rebate #DS-R-230119-0907 -1,100.00 Check 03/17/2023 14844 Customer Heat Pump Rebate #DS-R-230124-0925 -725.00 Check 03/17/2023 14845 Customer Heat Pump Rebate #DS-R-230124-0927 -800.00 Check 03/17/2023 14846 Customer PA Equipment Rebate - Res #DS-R-230308-1096 -290.00 Check 03/17/2023 14847 Customer PA Equipment Rebate - Res #DS-R-230303-1063 -480.00 Check 03/17/2023 14848 Customer PA Equipment Rebate - Res #DS-R-230303-1067 -190.00 Check 03/17/2023 14849 Customer PA Equipment Rebate - Res #DS-R-230303-1069 -500.00 Check 03/17/2023 14850 Customer PA Equipment Rebate - Res #DS-R-230303-1061 -480.00 Check 03/17/2023 14851 Customer PA Equipment Rebate - Res #DS-R-230303-1066 -940.00 Check 03/17/2023 14852 Customer PA Equipment Rebate - Res #DS-R-230303-1064 -140.00 Check 03/17/2023 14853 Customer PA Equipment Rebate - Res #DS-R-230303-1062 -290.00 Check 03/17/2023 14854 New Generation Illumination PA install - Design Air Heating & Sheet Metal -2,523.74 Check 03/17/2023 14855 Customer PA Equipment Rebate - Res #DS-R-230303-1080 -290.00 Check 03/17/2023 14856 Customer PA Equipment Rebate - Res #DS-R-230303-1068 -940.00 Check 03/17/2023 14857 NEM Cusomter NEM Close Out Acct #0440112749 -1.28 Check 03/17/2023 14858 NEM Cusomter NEM Close Out Acct #3717941062 -0.48 Check 03/17/2023 14859 NEM Cusomter NEM Close Out Acct #2689384489 -376.30 Check 03/17/2023 14860 NEM Cusomter NEM Close Out Accts #0047184436 & #3158505254 -210.40 Check 03/17/2023 14861 NEM Cusomter NEM Close Out Acct #3481789318 -490.59 Check 03/17/2023 14862 NEM Cusomter NEM Close Out Acct #9108119220 -337.69 Check 03/17/2023 14863 NEM Cusomter NEM Close Out Acct #8347760253 -96.16 Check 03/17/2023 14864 NEM Cusomter NEM Close Out Acct #9623016817 -288.21 Check 03/17/2023 14865 NEM Cusomter NEM Close Out Acct #8609301834 -62.07 Check 03/17/2023 14866 NEM Cusomter NEM Close Out Acct #4307449550 -0.56 Check 03/17/2023 14867 NEM Cusomter NEM Close Out Acct #8359356952 -1.34 Bill Pmt -Check 03/17/2023 14868 Access Humboldt NorCAN Media 101 Training for Nancy S. -20.00 Bill Pmt -Check 03/17/2023 14869 Aiqueous, LLC Stage 6 Next 90 & Stage 7 Jan-Dec 2023 -5,250.00 Bill Pmt -Check 03/17/2023 14870 Amazon.com Monthly billing - February 2023 -3,174.89 Bill Pmt -Check 03/17/2023 14871 Ameritas - Dental #010-055098-00001 Dental - April 2023 -2,232.04 Bill Pmt -Check 03/17/2023 14872 Ameritas - Vision 010-055098-00002 Vision - April 2023 -462.92 Bill Pmt -Check 03/17/2023 14873 AT&T RCAM Router charges - ACV: 01/19 - 02/18 -163.00 Bill Pmt -Check 03/17/2023 14874 AT&T RCAM charges: 03/01 - 03/31/2023 for Account 8003-251-9276 -942.10 Bill Pmt -Check 03/17/2023 14875 AT&T Long Distance Phone charges 02/25/2023 - 03/24/2023 -165.30 Bill Pmt -Check 03/17/2023 14876 Carter Properties, LLC 917 3rd Street Office Lease - Security Deposit & April prorated rent -3,650.00 Bill Pmt -Check 03/17/2023 14877 Central Office Printing services- 35 qty Heat Pump flyers for nonprofit mailing -25.12 Bill Pmt -Check 03/17/2023 14878 Cissna, A. CalCCA Semi-Annual Joint Conference-Lodging & Other -192.20 Bill Pmt -Check 03/17/2023 14879 City of Arcata February 2023 Excessive Energy Use Tax #6315 -5,059.36 Bill Pmt -Check 03/17/2023 14880 City of Arcata February 2023 Utility User Tax #6310 -13,904.78 Bill Pmt -Check 03/17/2023 14881 City of Eureka-Water Water service, 01/23/23- 02/24/23 -224.40 Bill Pmt -Check 03/17/2023 14882 Civicwell 2023 CivicWell Policymakers Conference sponsorship -2,500.00 Bill Pmt -Check 03/17/2023 14883 Diamond, Nancy Legal Services -7,250.00 Bill Pmt -Check 03/17/2023 14884 Donald Dame Professional Services February 2023 -262.50 Bill Pmt -Check 03/17/2023 14885 Engel, R. CalCCA Semi-Annual Joint Conference-Other -41.48 Bill Pmt -Check 03/17/2023 14886 Eureka Rubber Stamp Board meeting nameplate & 6 holders -54.72 Bill Pmt -Check 03/17/2023 14887 Frontier Energy, Inc. PA Program Consulting - February 2023 -1,050.00 Bill Pmt -Check 03/17/2023 14888 Humboldt Bay Coffee Co. Office Coffee -25.95

12 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of March 31, 2023
Type Date Num Name Memo Amount
Bill Pmt -Check 03/17/2023 14889 Law Office of David Peffer February 2023 Legal Services - RuralREN reg support -5,146.00 Bill Pmt -Check 03/17/2023 14890 Mission Uniform & Linen March 2023 Mat Service & Janitorial Supplies -57.22 Bill Pmt -Check 03/17/2023 14891 North Coast Cleaning February 2023 monthly cleaning service -480.00 Bill Pmt -Check 03/17/2023 14892 Northwest Energy Efficiency Council 2023 BOS Tuition and exam fee for Roku Fukui -1,280.00 Bill Pmt -Check 03/17/2023 14893 Optimum Business-633 Phone & Internet access - 02/28 - 03/30/2023 -1,103.46 Bill Pmt -Check 03/17/2023 14894 PG&E EV Account EV stations 01/13/2023-02/13/2023 -1,075.52 Bill Pmt -Check 03/17/2023 14895 PG&E Utility Account 01/13-02/13/23 utilities for 633 3rd Street -1,549.35 Bill Pmt -Check 03/17/2023 14896 Ray Morgan Company Printer Charges: 02/06-03/05/23 -119.21 Bill Pmt -Check 03/17/2023 14897 Ruby Canyon Environmental, Inc RCEA TCR Ver 2017-2019: Virtual site visit, payment 2/2 -4,700.00 Bill Pmt -Check 03/17/2023 14898 Stitch Witch Logo gear order - 50% Deposit -577.94 Bill Pmt -Check 03/17/2023 14899 Times Printing Company Printing and mailing services -1,254.04 Bill Pmt -Check 03/17/2023 14900 Verizon Wireless Tablet/cell service - 01/29 - 02/28/2023 -1,386.31 Paycheck 03/17/2023 ACH Employees Payroll -71,887.71
Check 03/21/2023 Debit Umpqua Bank Service Charge -144.22 Check 03/21/2023 14950 VISA March 2023 Statement 02/22/2023 - 03/21/2023 -11,291.64 Liability Check 03/30/2023 ACH Newport Group Deferred compensation contributions -18,800.23 Liability Check 03/30/2023 ACH EDD Taxes -5,843.89
Liability Check 03/30/2023 ACH Internal Revenue Service Taxes -29,082.62 Liability Check 03/30/2023 ACH CICCS Coalition for Controlling Insurance 74-3104616 March 2023 invoice -63.24 Bill Pmt -Check 03/30/2023 ACH USDA Loan Payment Q1-2023 -28,815.14 Paycheck 03/30/2023 14901 Employee Paycheck -707.53
Liability Check 03/30/2023 14902 Umpqua Bank Health Savings Account contribution -72.07 Bill Pmt -Check 03/30/2023 14903 Advanced Security Security monitoring: Onsite Service Visit -180.09 Bill Pmt -Check 03/30/2023 14904 Boone, J. Mileage reimbursement -March 2023 -19.65 Bill Pmt -Check 03/30/2023 14905 Braun Blaising & Wynne Legal Services - Regulatory -February 2023 -5,841.62 Bill Pmt -Check 03/30/2023 14906 Colonial Life Colonial Life Premiums March 2023 -3,309.39 Bill Pmt -Check 03/30/2023 14907 Humboldt Bay Coffee Co. March Office Coffee -51.90 Bill Pmt -Check 03/30/2023 14908 Kerekes, C. Mileage reimbursement - March 2023 -93.02 Bill Pmt -Check 03/30/2023 14909 Nicklas, Alida M Mileage reimbursement - March 2023 -12.05 Bill Pmt -Check 03/30/2023 14910 NYLEX.net, Inc. IT equipment and April services -5,498.85 Bill Pmt -Check 03/30/2023 14911 Petty Cash Replenish petty cash for 03.01.23-03.30.23 reimbursement -17.95 Bill Pmt -Check 03/30/2023 14912 PG&E CCA February 2023 CCE Charges -22,021.93 Bill Pmt -Check 03/30/2023 14913 PG&E EV Account EV stations 02/14/2023-03/15/2023 -773.91 Bill Pmt -Check 03/30/2023 14914 PG&E Utility Account 02/14-03/15/23 utilities for 633 3rd Street -1,594.85 Bill Pmt -Check 03/30/2023 14915 Rennie, J Mileage Reimbursement- March 2023 -86.59 Bill Pmt -Check 03/30/2023 14916 SEL Engineering Services, Inc. Professional Services - Microgrid -26,112.00 Bill Pmt -Check 03/30/2023 14917 Times Printing Company Printing and mailing -1,636.31 Bill Pmt -Check 03/30/2023 14918 Winzler, John Office Lease - April 2023 -8,372.70 Check 03/30/2023 14919 Customer PA Equipment Rebate - Res #DS-R-230313-1112 -500.00 Check 03/30/2023 14920 Customer PA Equipment Rebate - Res #DS-R-230303-1078 -500.00 Check 03/30/2023 14921 Customer PA Equipment Rebate - Res #DS-R-230303-1076 -500.00 Check 03/30/2023 14922 Customer PA Equipment Rebate - Res #DS-R-230303-1075 -500.00 Check 03/30/2023 14923 Customer PA Equipment Rebate - Res #DS-R-230303-1070 -500.00 Check 03/30/2023 14924 Customer PA Equipment Rebate - Res #DS-R-230303-1074 -150.00 Check 03/30/2023 14925 Customer PA Equipment Rebate - Res #DS-R-230303-1072 -190.00 Check 03/30/2023 14926 Customer Heat Pump Rebate #DS-R-230203-0971 -800.00 Check 03/30/2023 14927 Customer Heat Pump Rebate #DS-R-230130-0947 -800.00 Check 03/30/2023 14928 Customer Heat Pump Rebate #DS-R-230307-1087 -875.00 Check 03/30/2023 14929 Customer Heat Pump Rebate #DS-R-221223-0815 -2,700.00 Check 03/30/2023 14930 Customer Heat Pump Rebate #DS-R-230324-1151 -1,600.00 Check 03/30/2023 14931 Customer Heat Pump Rebate #DS-R-231004-0858 -1,750.00 Check 03/30/2023 14932 Customer Heat Pump Rebate #DS-R-230124-0926 -800.00 Check 03/30/2023 14933 Customer Heat Pump Rebate #DS-R-230201-9059 -800.00 Check 03/30/2023 14934 Customer Heat Pump Rebate #DS-R-230307-1086 -1,250.00 Check 03/30/2023 14935 Customer Res EVSE rebate #EVSE21 -228.97 Check 03/30/2023 14936 Joseph O'Gorman Transportation EVITP Scholarship: EVITP01 -275.00 Check 03/30/2023 14937 NEM Cusomter 2022 NEM Yearly Payout Reissued -296.63 Check 03/30/2023 14938 NEM Cusomter 2022 NEM Annual Payout Reissued -220.49

13 Accrual Basis Redwood Coast Energy Authority
Disbursements Report
As of March 31, 2023
Type Date Num Name Memo Amount
Check 03/30/2023 14939 NEM Cusomter 2022 NEM Annual Payout Reissued -390.89 Check 03/30/2023 14940 NEM Cusomter 2022 NEM Annual Payout Reissued -135.72 Check 03/30/2023 14941 NEM Cusomter 2022 NEM Annual Payout Reissued -379.58 Check 03/30/2023 14942 NEM Cusomter 2022 NEM Annual Payout Reissued -134.69 Check 03/30/2023 14943 NEM Cusomter 2022 NEM Annual Payout Reissued -174.36 Check 03/30/2023 14944 NEM Cusomter 2022 NEM Annual Payout Reissued -227.59 Check 03/30/2023 14945 NEM Cusomter 2022 NEM Annual Payout Reissued -101.52 Check 03/30/2023 14946 NEM Cusomter 2022 NEM Close Out Reissued -231.58 Check 03/30/2023 14947 NEM Cusomter 2021 NEM Annual Payout Reissued -215.25 Check 03/30/2023 14948 NEM Cusomter NEM Close Out Ck 13786 Reissued -61.31 Check 03/30/2023 14949 NEM Cusomter 2022 NEM Yearly Payout Reissued -118.92 Paycheck 03/30/2023 ACH Employees Payroll -72,330.80
TOTAL -1,189,179.78

14 Redwood Coast Energy Authority
Profit & Loss Budget vs. Actual
July 2022 through March 2023
Jul '22 - Mar 23 Budget % of Budget
Ordinary Income/Expense
Income
Total 4 GRANTS AND DONATIONS 7,500.00
5 REVENUE EARNED
Total 5000 · Revenue - government agencies 618,761.04 1,101,031.00 56.2% Total 5100 · Revenue - program related 65,247.69 30,400.00 214.63% Total 5300 · Revenue - interest on deposits 878.45
Total 5400 · Revenue-nongovernment agencies 230,776.08 489,124.00 47.18% Total 5500 · Revenue - Electricity Sales 55,310,075.46 78,613,344.00 70.36% Total 5 REVENUE EARNED 56,225,738.72 80,233,899.00 70.08% Total Income 56,233,238.72 80,233,899.00 70.09%
Gross Profit 56,233,238.72 80,233,899.00 70.09%
Expense
Total 6 WHOLESALE POWER SUPPLY 38,210,889.51 54,381,799.00 70.26% Total 7 PERSONNEL EXPENSES 2,690,332.95 4,071,684.00 66.07% Total 8.1 FACILITIES AND OPERATIONS 431,125.87 976,816.00 44.14% Total 8.2 COMMUNICATIONS AND OUTREACH 77,627.80 177,004.00 43.86%

8.4 PROFESSIONAL & PROGRAM SRVS
8400 · Regulatory 110,145.57 180,000.00 61.19%
8410 · Contracts - Program Related Ser 108,107.73 290,000.00 37.28% 8420 · Accounting 18,158.00 87,455.00 20.76%
8430 · Legal 128,240.42 180,000.00 71.25%
8450 · Wholesale Services - TEA 612,369.69 654,984.00 93.49% 8460 · Procurement Credit - TEA 401,072.37 690,545.00 58.08% 8470 · Data Management - Calpine 490,728.00 737,532.00 66.54% Total 8.4 PROFESSIONAL & PROGRAM SRVS 1,868,821.78 2,820,516.00 66.26% Total 8.5 PROGRAM EXPENSES 462,332.48 638,100.00 72.46% Total 8.6 INCENTIVES & REBATES 394,426.77 577,823.00 68.26% Total 9 NON OPERATING COSTS 225,685.77 246,020.00 91.74% Total Expense 44,361,242.93 63,889,762.00 69.43%
Net Ordinary Income 11,871,995.79 16,344,137.00 72.64%
Net Income 11,871,995.79 16,344,137.00 72.64%

15 Redwood Coast Energy Authority
Balance Sheet
As of March 31, 2023
Mar 31, 23
ASSETS
Current Assets
Checking/Savings
1010 · Petty Cash 300.00
1050 · GRANTS & DONATIONS 3840 15,995.51
1060 · Umpqua Checking Acct 0560 26,414.46
1071 · Umpqua Deposit Cntrol Acct 8215 8,762,387.20
1075 · Umpqua Reserve Account 2300 1,319,298.52
1076 · First Republic Bank - 4999 62,263.94
8413 · COUNTY TREASURY 3839 5,329.01
Total Checking/Savings 10,191,988.64
Total Accounts Receivable 77,209.66
Other Current Assets
1101 · Allowance for Doubtful Accounts -3,503,105.02
1103 · Accounts Receivable-Other 14,465,815.46
1120 · Inventory Asset 21,715.00
1202 · Prepaid Expenses -27,935.00
1205 · Prepaid Insurance 34,941.40
1499 · Undeposited Funds 1,403.00
Total Other Current Assets 10,992,834.84
Total Current Assets 21,262,033.14
Total Fixed Assets 8,998,747.23
Other Assets
1700 · Security Deposits 4,051,123.26
Total Other Assets 4,051,123.26
TOTAL ASSETS 34,311,903.63

LIABILITIES & EQUITY
Liabilities
Current Liabilities
Total Accounts Payable 4,932,042.06
Total Credit Cards 3,193.38
Other Current Liabilities
2002 · Deposits Refundable 1,498,545.01
2013 · Unearned Revenue - PA 2020-2023 369,586.96
Total 2100 · Payroll Liabilities 157,140.74
Total Other Current Liabilities 2,025,272.71
Total Current Liabilities 6,960,508.15
Total Long Term Liabilities 6,287,592.00
Total Liabilities 13,248,100.15
Equity
2320 · Investment in Capital Assets 215,489.00
3900 · Fund Balance 8,976,318.69
Net Income 11,871,995.79
Total Equity 21,063,803.48
TOTAL LIABILITIES & EQUITY 34,311,903.63

16

STAFF REPORT
Agenda Item # 4.4
AGENDA DATE: May 25, 2023
TO: Board of Directors
PREPARED BY: Lori Biondini, Business Planning and Finance Director SUBJECT: FY22-23 Budget Update

SUMMARY
The Board approved a mid-year budget adjustment in February to reflect customer rate changes that were implemented in January, as well as significant changes in forecasted energy costs since the original fiscal year 2022-23 budget had been prepared in May of 2022. The net result made actual revenue and expenses closer to 50% of their respective budget line items through Q2 of the fiscal year. The revised budget also included increased facilities and operations costs associated with leasing and setting up a second office location and extending the duration of customer rebate programs as the State Program Administrator funding was exhausted.

Please find attached the Profit and Loss Budget versus Actual report through March 31, 2023, presenting revenue and expenses through Q3, or 75%, of the fiscal year. Staff is not recommending any adjustments and is presenting this information as an update and to inform the 2023-2024 fiscal year budget setting process.

REVENUE
Direct Donations
These funds are unexpected donations received from Calpine Corporation and Sonoma Clean Power who were concerned about the earthquake damage to our community and asked if we would distribute them to an organization involved in disaster recovery. They funded cash and goods given to the Rio Dell Fire Department. The donation was expensed under Outreach Related Donations.

State Contracts and Grants
Revenue from state contracts continues to be realized more slowly than anticipated. This revenue includes Energy Efficiency Program Administrator (PA) funds, CALeVIP electric vehicle charging station matching grant funding, and grant funding from the California Energy Commission for planning for and promoting medium and heavy-duty electric vehicles. Of about $370K remaining of PA funding, staff anticipates spending $240K in Q4 and then rolling over $130K of unused funds into next year’s budget. The PA program will run until the end of calendar year 2023. CALeVIP funding is granted on a reimbursement basis for new electric vehicle chargers. RCEA anticipated receiving $26K of funding for chargers at the airport as part of the Airport Microgrid project, but County of Humboldt plans for parking lot improvements have delayed those plans. The $26K contribution via the State’s CALeVIP program will be included in next year’s budget. About $45K of CEC grant funds will be received in Q4 of this fiscal year. The total for fiscal year 2023 is anticipated to be $904K, or 82% of the budgeted line item.
17

Programs
RCEA’s program-related sales category includes revenue from the EV Network (REVNet) and forfeited deposits from feed-in-tariff applicants. This category has also come to include unexpected feed-in-tariff project delay damages that RCEA collects. The nature of these delays has been covered in recent Board meetings by the Power Resources team and in Risk Management presentations. The revenue is meant to cover RCEA’s cost to procure replacement energy products.

Interest
This is also an unexpected, new income category this year that was not included in the budget. Upon finishing the Airport Microgrid project, RCEA received back a large interconnection studies deposit that had accrued interest while being held in an escrow account. This may be common in the future as RCEA is able to receive back other security deposits it has posted in the past couple of years.

Non-Government Contracts
Revenue from non-government agencies, including contracts with Pacific Gas and Electric Company for our service as a Local Government Partnership and the Schatz Energy Research Center for the Airport Microgrid, is tracking more slowly than anticipated. A budget adjustment by Sponsored Programs Foundation/Schatz has delayed RCEA’s ability to invoice for the remaining $181K of Airport Microgrid CEC sub-award funds. CEC approval of the adjustment may occur in time for RCEA to submit a final invoice by the end of the year. If not, the income will be moved to next year’s budget.

RCEA has already paid the associated expense which included PG&E and contractor costs.

Electricity Sales
RCEA’s largest revenue source is at just over 70% of its budget line item. The large expense of Net Energy Metering customer annual true-up payouts happens in May and June, which deducts from the electricity sales total. This may cause the net revenue to end up slightly less than what was anticipated and adopted mid-year.

EXPENSE
Wholesale Power Supply
RCEA’s largest expense is also at just over 70% of its budget line item. However, there are some expenses that occur in Q4 that may skew the year-end numbers. There will be one additional expense in May for environmental attributes purchased over the past year, as well as payments to Snow Mountain Hydro for generation at their Cove facility, which produces electricity when water is flowing in the spring.

Personnel
Personnel expenses are at 66% of its budget line item. This is 9% less than expected at Q3, with the difference occurring in total wages and benefits. This may be due to long vacancies of a couple of roles and delayed start dates to accommodate new hires who were finishing previous employment.

Successful recruitment into the newly approved Power Resource Specialist position this spring may make up the difference by the end of the year.
18

Facilities and Operations
The regular facilities and operations expenses are tracking at only 44% of the budgeted amount, but there were several new costs associated with the leasing and setting up of a new office space in April and May. The year-end total will include the new monthly rent and utilities, IT networking and electrician costs, moving costs, and some new workspace partitions and other furnishings.

Communications and Outreach
Communications and outreach expenses are at 44% of the amount budgeted for this year. The second of two required customer mass mailings per year will occur in June, but the year-end total will still likely be under budget.

Professional and Program Services
Professional and program services are at 66% of the amount budgeted. Program-related services contracts, accounting services, and the cost of procurement credit through The Energy Authority (TEA) are less than anticipated. Wholesale services costs through TEA are more than anticipated. All line items except accounting services are anticipated to keep the same pace. RCEA’s new financial auditor began work in May. Year-end totals for this category overall will likely be at or slightly less than budgeted.

Programs Expenses
The Program Expenses category is at 73% of the budget and includes customer billings services, energy-related use tax, and electric vehicle charging station site host payments which are meant to reimburse electricity charges associated with use of the RCEA-owned charging network.

Incentives and Rebates
The Incentives and Rebates category is meant to capture expenses associated with funding from grants and contracts, as well as CCE program revenues that are earmarked as a customer rebate. An increase in uptake of rebates this calendar year has the total spent at 68% of the amount budgeted.

Rebates paid out this year were for electric vehicle and electric vehicle supply equipment purchases, heat pump installations, residential efficiency kits, and non-residential energy efficient lighting installations.

Non-Operating
Non-operating costs this year include loan fees, loan interest, escrow account fees, and bank charges. The current budget did not account for the full amount of loan fees for the short-term loans RCEA received from the Blue Lake Rancheria and MCE last fiscal year. The Blue Lake Rancheria loan interest was paid monthly for the duration of the loan through September however the MCE transaction was a flat fee that was not invoiced until Q1 of this fiscal year. Overall, the category expenses total 92% of the budgeted amount, and Staff anticipates expending 104% of the budget for the year.

NET
Net ordinary income is currently at 73% of the budgeted amount, or $11.9M of the estimated $16.4M.

As detailed above, the overall trend points towards less Q4 revenue than expense, making it likely that net income will not reach the full budgeted amount for fiscal year 2022-23, but still provide a healthy contribution to reserves.
19

RECOMMENDED ACTIONS
Accept Fiscal Year 22-23 Budget Update and Quarterly Budget Report through Q3.

ATTACHMENTS
See agenda item 4.3 – 1 Profit and Loss Budget Versus Actual Report Through March 2023/Q3. 20

STAFF REPORT
Agenda Item # 6.1
AGENDA DATE: May 25, 2023
TO: Board of Directors
PREPARED BY: Sharon Kramer, H.T. Harvey & Associates
SUBJECT: Presentation on CStories: A Federally-Funded Community Offshore Wind Engagement App

SUMMARY
H.T. Harvey & Associates Principal Sharon Kramer will provide a presentation on this digital tool to assist communities in engaging in the marine renewable energy planning and development process.

RECOMMENDED ACTION
None. Information only.

ATTACHMENTS
CStories slides will be presented at the meeting.
21 This page
intentionally
left blank.
22 Engaging a Diverse Community and
Increasing Equity in Offshore Wind
Processes: CStories
Presenter: Sharon Hendrix Kramer, PhD
Grace Chang, PhD, Integral Consulting
Ben Best, PhD, EcoQuants
May 25, 2023
23 – Community Partners:

Goal and Objectives
• To develop a user-friendly data dashboard in support
of ocean multi-use management with marine
renewable energy
• Empower communities with information and
interactive data analysis and visualization tools
• Promote meaningful stakeholder engagement
and communications, and informed decision-making.
24 CStories: Empower communities to participate in marine renewable energy planning and development
Disseminate relevant
information to
communities
Facilitate
communication
of community
concerns and
priorities
25 Engaging a Diverse Community and
Increasing Equity in Offshore Wind
Processes: CStories
Presenter: Sharon Hendrix Kramer, PhD
Grace Chang, Integral Consulting, and Ben Best, Ecoquants March 1, 2023
26 Engaging a Diverse Community and
Increasing Equity in Offshore Wind
Processes: CStories
Presenter: Sharon Hendrix Kramer, PhD
Grace Chang, Integral Consulting, and Ben Best, Ecoquants March 1, 2023
27 Engaging a Diverse Community and
Increasing Equity in Offshore Wind
Processes: CStories
Presenter: Sharon Hendrix Kramer, PhD
Grace Chang, Integral Consulting, and Ben Best, Ecoquants March 1, 2023
28 Engaging a Diverse Community and
Increasing Equity in Offshore Wind
Processes: CStories
Presenter: Sharon Hendrix Kramer, PhD
Grace Chang, Integral Consulting, and Ben Best, Ecoquants March 1, 2023
29 Engaging a Diverse Community and
Increasing Equity in Offshore Wind
Processes: CStories
Presenter: Sharon Hendrix Kramer, PhD
Grace Chang, Integral Consulting, and Ben Best, Ecoquants March 1, 2023
30 Key Takeaways
 Stakeholder feedback should be solicited early in the planning stages
• Community benefits must be clearly articulated
 Community eagerness to learn about offshore wind
• Technology (device and array characteristics)
• Effects on wildlife, environment, and viewshed
 Too much information available over disparate sources  Need digestible data and easy-to-use tools
31 www.harveyecology.com
Sharon Kramer, PhD
Principal
[email protected]
Identified Community Needs To Be Addressed:
• Expert training of the Chat Bot to avoid ‘hallucinations’ • Interactive, filterable calendar of local OSW events
• Quantitative and transparent trade-off analysis tool
• Environmental Justice – Communities local to OSW development want to benefit from this new clean energy resource. Is the Humboldt WEA going to power the local community? Or routed to the Bay Area?
32

STAFF REPORT
Agenda Item # 8.1
AGENDA DATE: May 25, 2023
TO: Board of Directors
PREPARED BY: Jocelyn Gwynn, Senior Power Resources Manager Richard Engel, Director of Power Resources
SUBJECT: Procurement Options 2023-2025

BACKGROUND
At the April 2023 meeting, staff from The Energy Authority (TEA) presented the Quarterly Energy Risk Management Report to the Board. Part of that report focused on market conditions for short-term renewable energy procurement and expected project delays. In the last year, Portfolio Content Category (PCC) 11 renewables have risen about 2.5 times in price.

Simultaneously, the commercial operation date of RCEA’s contracted Sandrini Sol 1 project was delayed from June 2023 to early 2024. Sandrini is a 100 MW solar plant being built in Kern County that will meet roughly 45% of RCEA’s annual energy needs once operational. The delay in generation from Sandrini leaves a large gap in RCEA’s 2023 procurement that would need to be filled with short-term PCC1 renewables to achieve our current renewable procurement target for the year.

As a separate but related matter, at the March 2023 meeting, the Board directed staff to estimate the cost to opt up all CCE customers to a 100% renewable portfolio, similar to RCEA’s existing REpower+ product. Staff are bringing back the results of that analysis for informational purposes, in addition to several procurement options for the current calendar year, given the costs we are exposed to resulting from the Sandrini delay and increased renewable energy prices.

SUMMARY
2023 Procurement Options
Based on the financial model that TEA maintains and updates daily for RCEA, staff analyzed five procurement scenarios, the results of which are presented in the charts below on an annual and cumulative net revenue basis. The first three scenarios are what the Board saw in last month’s risk presentation under which we 1) procure no additional renewable energy this year beyond existing contracts, 2) procure to the annual linear target under the State’s Renewable 1 PCC1 is the most valuable renewable product. It indicates the bundled energy and renewable certificates came from a plant directly connected to a CA balancing authority such as the California Independent System Operator. 33

Portfolio Standard (RPS)2
, and 3) procure to current Board-adopted targets3. The other two scenarios show the cost of procuring 4) 100% renewable and carbon-free (i.e., large hydropower) energy and 5) 100% renewable energy (no large hydropower), equivalent to RCEA’s REpower+ opt up product.

Staff are recommending the second scenario in which we dial back renewable procurement from the Board target but stay on track to procuring the annual linear RPS target, with the option to procure additional carbon-free energy at staff’s discretion subject to availability and cost, to 2 Compliance with the CA RPS Program is measured across multi-year compliance periods, not annually. The annual linear RPS target is set to have RPS content increase steadily year over year while meeting the minimum total RPS requirement for each multi-year compliance period. 3 A chart of Board-adopted targets is viewable on RCEA’s website: https://redwoodenergy.org/power-resources/ 0%
20%
40%
60%
80%
100%
-$7,000,000
-$2,000,000
$3,000,000
$8,000,000
$13,000,000
$18,000,000
No Add'l RPS Linear RPS Target Board Targets 100% RPS + CF 100% RPS 2023 Procurement Options Relative to Annual Net Revenue Renewable % Carbon-Free % Backfill Carbon-Free % Annual Net Revenue ($) 0%
20%
40%
60%
80%
100%
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
No Add'l RPS Linear RPS Target Board Targets 100% RPS + CF 100% RPS 2023 Procurement Options Relative to Cumulative Net Revenue Renewable % Carbon-Free % Backfill Carbon-Free % Cumulative Net Revenue 34

meet the same total amount of renewable plus carbon-free energy as the Board’s current 2023 targets. The net revenues associated with this option in the chart assume that backfill carbon-free energy is procured. This option is recommended because staff see reputational value in maintaining a linear trajectory of increased renewable procurement during the current period, despite that the RPS program allows for making up for annual shortfalls in a later year within the same compliance period. For the four-year RPS Compliance Period 4, 2023 is the third year. 2024-2025 Procurement
The following chart compares financial outcomes for the third, fourth and fifth scenarios above, the more aggressive clean and renewable targets, extended to 2024 and 2025 for informational purposes. The net revenue is significantly more in those years than in 2023 because much of the renewable procurement is expected to come from the Sandrini solar project under a fixed-price long-term contract. Note that the 100% renewable and carbon free scenario in 2025 is the same as the current Board adopted target, which is why there is no difference in financial outcomes between those two scenarios.

The following table shows the percent increase in retail rates relative to forecasted rates that would be needed to recover the same annual net revenue as the current Board-adopted target case. Staff are not recommending the Board take action on the procurement targets or retail rates for 2024 and 2025 at this time. Again, the expectation of the Sandrini project being online by 2024 accounts for the great reduction in needed cost recovery after 2023. 2023 2024 2025
100% Renewable 34% 10% 7%
100% Renewable & Carbon-Free 1.7% 0.4% n/a
$(10,000,000)
$(5,000,000)
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2023 2024 2025
Annual Net Revenue
2023-2025 Procurement Options
Current Targets 100% Renewable 100% Renewable & Carbon-Free 35

ALIGNMENT WITH RCEA’S STRATEGIC PLAN
The staff recommendation to reduce short-term renewable procurement in 2023 aligns with the following goal, while enabling RCEA to contribute more toward financial reserves or local programs and initiatives:
• 4.3.3 Retain and/or Redirect Rate-Payer Dollars Back into Humboldt County.

EQUITY IMPACTS
Not applicable, as the staff recommendation relates to short-term procurement from existing power facilities.

FINANCIAL IMPACT
The staff recommendation of a decreased 2023 renewable target from 48% to 41% would result in increased net revenue of an estimated $1.9M-2.5M, depending on whether backfill carbon-free energy is procured. This is relative to the current Board-adopted procurement targets accounted for in the FY 2023-24 budget being presented to the Board at this month’s meeting.

The financial impacts of the other scenarios on net revenue can be seen in the charts and tables above.

STAFF RECOMMENDATION
Approve a reduced renewable procurement target of 41% for 2023 with the option to backfill the 8% reduction with carbon-free energy at staff’s discretion depending on market availability.
36 2023-2025 Power
Procurement Options
Presentation to RCEA Board of Directors
May 25, 2023
Past Procurement and Projected Board Targets
Need for 2023 Procurement Guidance
•Further delay of Sandrini Solar commercial operation
•2.5x increase in short-term renewables price
(portfolio content category 1)
•Potential unavailability of carbon-free hydropower
32 2023 Procurement Options
1) No additional renewable energy purchases this year beyond existing contracts
2) Procure enough to meet annual linear target under the State’s Renewable Portfolio Standard (RPS)
3) Procure to current Board-adopted targets
4) Procure 100% renewable and carbon-free energy
5) Procure 100% renewable energy (similar to REpower+)
33 To address
unforeseen
cost increases
in meeting
2023
renewables
target
In response to
Board inquiry
about
accelerating
renewables
target
34 0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
No Add'l RPS Linear RPS
Target
Current Targets 100% RPS + CF 100% RPS
2023 Procurement Options Relative to Annual Net Revenue Renewable % Carbon-Free % Replacement Carbon-Free %
35 $17,100,000
$10,090,000
$8,140,000 $7,430,000
-$6,270,000
0%
20%
40%
60%
80%
100%
-$7,000,000
-$2,000,000
$3,000,000
$8,000,000
$13,000,000
$18,000,000
No Add'l RPS Linear RPS
Target
Current
Targets
100% RPS + CF 100% RPS
2023 Procurement Options Relative to Annual Net Revenue Renewable % Carbon-Free % Replacement Carbon-Free % Annual Net Revenue ($) 36 $35,410,000
$28,400,000 $26,450,000 $25,740,000
$12,050,000
0%
20%
40%
60%
80%
100%
$0
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
$40,000,000
No Add'l RPS Linear RPS
Target
Current Targets 100% RPS + CF 100% RPS
2023 Procurement Options Relative to Cumulative Net Revenue Renewable % Carbon-Free % Replacement Carbon-Free % Cumulative Net Revenue ($) 37 $(10,000,000)
$(5,000,000)
$-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
2023 2024 2025
Annual Net Revenue
2023-2025 Procurement Options
Current Targets 100% Renewable 100% Renewable & Carbon-Free Cost Recovery of 2023-2025 Options
Percent increase needed in average retail rates (relative to currently forecasted rates) to recover the same annual net revenue as the current Board target case:
38 2023 2024 2025
100% Renewable 34% 10% 7%
100% Renewable & Carbon-Free 1.7% 0.4% n/a

STAFF REPORT
Agenda Item # 10.1
AGENDA DATE: May 25, 2023
TO: Board of Directors
PREPARED BY: Eileen Verbeck, Deputy Executive Director
SUBJECT: Salary and Benefit Schedule Update

SUMMARY
In December 2016, the RCEA Board adopted an employee compensation policy. The policy notes that, in order to attract and retain qualified employees at all levels of the organization, it is the policy of the Authority to maintain fair and competitive salary ranges consistent, within the economic constraints of the Authority, with the labor market in which we compete for talented employees. The labor market agencies identified in the policy were updated by the RCEA Board in February 2021.

The policy states that RCEA will conduct a biennial salary survey to identify the “averaged” level of salary for each benchmark position. In addition, staff are to recommend adjustments to RCEA’s salary ranges when warranted by changing economic and competitive factors. The last biennial salary survey and resulting salary schedule update was completed in 2021.

Staff completed an update to the salary survey and provided it to the RCEA Board at the April 2023 meeting, and those results are summarized in the table below:

RCEA job classification Current RCEA
pay scale
midpoint
2023 Salary survey
benchmark positions
average midpoint
RCEA
percent below
benchmarks
Assistant/Associate/Coordinator $43,442 $48,025 11%
Specialist/Senior Specialist $68,266 $73,100 7%
Technician/Senior Technician $80,678 $87,735 9%
Manager/Senior Manager $93,090 $101,379 9%
Director $124,120 $155,686 25%
Executive Director $161,356 $223,313 38%
Average % below benchmarks
(excluding Executive Director position)
12%
Survey findings show that RCEA salary ranges are lower than comparable agencies’ averaged comparative pay, with RCEA averaging 12% below benchmark positions (excluding the Executive Director position). For additional points of reference, over the last two years the Social Security COLA increase totaled 14.6%, and the Western US consumer price index increased by 13.5%.
37

Staff also conducted an employee survey, asking employees to rank the following items: higher salary, more paid time off, increased benefits (i.e. life insurance), increased retirement benefits, new compensation category (i.e. longevity), or other. Employees ranked salary, paid time off and increased retirement benefits as their top choices respectively.

While gathering salary data for the biennial survey, staff also collected information on employee benefits, which was provided at the April Board meeting. Currently, RCEA provides a 4% contribution to a 457(b) plan with up to 3% match for a potential total employer contribution of 7%. During the survey it was determined that the non-PERS labor market agencies all offered up to 10% contribution. Additionally, all these agencies contribute into a 401(a) plan or 403(b) plan and the 457(b) plan is solely for employee contributions. Expanding RCEA’s plan to include a 401(a) plan will allow employees to contribute up to the maximum annual contribution if they so choose.

Staff met with the Board Finance Subcommittee on May 15, 2023, and presented options for salary adjustments and increased benefits (Attachment C) along with a draft FY23-24 budget.

Per RCEA policy, to maintain fair and competitive salary ranges necessary to retain and recruit talented employees the Board Finance Subcommittee recommends the Board approve a 14% adjustment to the RCEA salary ranges to narrow the gap between RCEA and its comparative labor market agencies.

The Board Finance Subcommittee recommends the Board approve the following adjustments to RCEA benefits:

1. Authorize the addition of a 401(a) retirement plan.

2. Increase RCEA’s contribution to the 401(a) retirement by $4,000 and maintain the 4% contribution and up to 3% match.

3. Adopt a longevity incentive payable once per calendar year of $1,000 per year for employees with 5-9 years of service, $2,500 per year for employees with 10-14 years of service, and $3,500 per year for employees with 15 or more years of service.

4. Addition of Juneteenth as an RCEA paid holiday.

FINANCIAL IMPACT
Compared to leaving the current 2021 salary schedule in place, adjusting RCEA’s pay ranges up by 14% will increase RCEA’s personnel budget by about $432,540. Personnel costs represent only about 5% of RCEA’s total budget, so a 14% increase to personnel costs will result in an impact to RCEA’s FY23-24 budget of only 0.4%.

The preliminary draft FY23-24 budget being presented at this meeting includes the following:
• 14% salary adjustment
• Addition of a 401(a) retirement plan
• Increased RCEA retirement contributions by $4,000/employee • Longevity - Flat Rate - 5 years $1,000, 10 years $2,500, 15 years $3,500.

The draft FY23-24 budget estimates a net revenue of $9.59 million. 38

STAFF RECOMMENDATION
Approve the following:

1. Update to the RCEA salary schedule including a 14% salary adjustment effective July 1, 2023,

2. Addition of a 401(a) retirement plan and authorize the Executive Director to execute all applicable documents,

3. Increase of RCEA’s contribution to eligible employee’s retirement by $4,000/year effective July 1, 2023.

4. Adoption a longevity incentive payable once per calendar year of $1,000 per year for employees with 5-9 years of service, $2,500 per year for employees with 10-14 years of service, and $3,500 per year for employees with 15 or more years of service effective July 1, 2023.

5. Addition of Juneteenth to the paid holidays provided to RCEA staff, effective June 19, 2023.

ATTACHMENTS:

A. 2023 Salary Survey Midpoints (presented in April)
B. 2023 Comparable Agency Benefit Summary (presented in April) C. Draft Salary and Benefit Proposals
D. Existing and Proposed 2023 update to RCEA salary schedule (14%) 39 Attachment A
Biennial Salary Survey of Benchmark Classifications at RCEA's Labor Market Agencies, 2023 Title Organization Midpoint of range RCEA Salary
Assistant/Associate/Coordinator
Administrative Support North Coast Air Quality Mang District 31,567.00Administrative Assistant City of Eureka 38,386.00Student/Grad Student Assistant CalPoly Schatz Energy Research Center 40,300.00 Accounting Tech I Humboldt Bay Municipal Water District 46,021.71 Administrative Secretary County of Humboldt 50,876.80Customer Services Representative I/II City of Ukiah Electric Utility 50,953.80 Customer Service Representative Sonoma Clean Power 55,650.00 Administrative Assistant CalPoly Schatz Energy Research Center 55,920.80 Administrative Assistant Pioneer Community Energy 62,547.50AVERAGE $ 43,442.00 48,024.85 $ Current RCEA Midpoint (Asst/Assoc/Coord step 5), effective 7/1/2021 11%Specialist/Senior Specialist Electric Utility Program Coordinator City of Ukiah Electric Utility 62,082.36Executive Assistant & Board Secretary Humboldt Bay Municipal Water District 63,399.24 Clerk Of The Board/Burn Permit Coordinator North Coast Air Quality Mang District 63,473.00 IT Technician I/II County of Humboldt 65,124.80
Research Assistant/Engineering Technician CalPoly Schatz Energy Research Center 69,087.20 Accounting & HR Specialist/Customer Service Humboldt Bay Municipal Water District 69,917.59 Clerk III Trinity County PUD 71,292.00Program Analyst/Board Clerk Valley Clean Energy 79,931.50 Executive Assistant/Board Clerk Pioneer Community Energy 91,294.50 Executive Assistant/Board Clerk Sonoma Clean Power 95,400.00 AVERAGE $ 68,266.00 73,100.22 $
Current RCEA Midpoint (Specialist step 8), effective 7/1/2021 7% Apr-23
40 Attachment A
Title Organization Midpoint of range RCEA Salary
Apr-23
Technician/Senior Technician
Inspector I-III North Coast Air Quality Mang District 63,473.06 Project Manager City of Eureka 77,164.00
Program & Regulatory Analyst/Senior Analyst Humboldt Bay Municipal Water District 79,566.49IT Systems Supervisor County of Humboldt 82,534.40Research Engineer CalPoly Schatz Energy Research Center 86,286.00 Senior Estimator Trinity County PUD 92,913.50Information Technology Manager City of Eureka 93,729.00 Electrical Engineering Technician I-III City of Ukiah Electric Utility 101,077.47 Program Specialist I Pioneer Community Energy 112,873.50AVERAGE $ 80,678.00 87,735.27 $ Current RCEA Midpoint (Technician step 8), effective 7/1/21 9%Manager/Senior Manager AdminCompliance and Enforcement Manager North Coast Air Quality Mang District 84,058.50Billing & Customer Service Manager City of Ukiah Electric Utility 86,390.04Construction Projects Manager County of Humboldt 88,067.20Deputy Assistant Finance Director/Special Proj Mang/PrinipalCity of Eureka 89,176.00 Senior Research Engineer CalPoly Schatz Energy Research Center 104,946.00 Program Manager Sonoma Clean Power 116,600.00Power Resource Manager/Leg Reg Mang Pioneer Community Energy 140,415.50AVERAGE $ 93,090.00 101,379.03 $ Current RCEA Midpoint (Manager step 8), effective 7/1/21 9% 41 Attachment A
Title Organization Midpoint of range RCEA Salary
Apr-23
Director
Superintendent Humboldt Bay Municipal Water District 117,203.63Administrative Services Manager Trinity County PUD 117,949.50Finance Director City of Eureka 119,675.00 Principal Engineer/Operations Director CalPoly Schatz Energy Research Center 130,542.00 Assistant Utility Director City of Ukiah Electric Utility 157,091.52Director of Customer Care and Marketing Valley Clean Energy 165,375.50 Electric Superintendant Trinity County PUD 172,456.50
Director (Finance and Public Affairs & Mktg Prgrms) Pioneer Community Energy 188,271.00 Director of Finance & Internal Operations Valley Clean Energy 192,937.50Director of Regulatory Affairs/Director of Prog. Sonoma Clean Power 195,358.00 AVERAGE $ 124,120.00 155,686.02 $
Current RCEA Midpoint (Director step 5), effective 7/1/21 25%Executive Director Air Pollution Control Officer North Coast Air Quality Mang District 125,000.00 General Manager Humboldt Bay Municipal Water District 167,142.00 Electric Utility Director City of Ukiah Electric Utility 188,550.00 Interim General Manager Valley Clean Energy 220,500.50
General Manager Trinity County Public Utility District 241,144.00 Executive Director Pioneer Community Energy 276,659.00Chief Executive Officer Sonoma Clean Power 344,196.84AVERAGE $ 161,356.00 223,313.19 $ Current RCEA Midpoint (Executive Director step 5), effective 7/1/21 38%Average Midpoint excluding Executive Director 12.14%Social Security Cola 2022 and 2023 14.6%CPI - US West Region Jan 2021 - Dec 2022 13.50% 42 ATTACHMENT B
Agency
PERS
agency?
Deferred comp
plan offered? Vacation
Holidays
(including
floating) Sick leave
Management/
Admin Longevity pay?
Employer paid
life Insurance? Juneteenth
RCEA No
457(b) with up to 7%
employer match 10 to 25 14 12 no no no no
City of Eureka Yes 457(b), $10 per month 12 to 22 15 12 6 to 9 days/yr 1% of salary @5 yrs;
2%@10; 3%@15
yes, $5K for
employee ad $1K
for each dependent Yes
Sonoma Clean Power No
457/401, with 10%
employer match
Combined
PTO, 20 to 35 12 see PTO see PTO no
yes, $300K policy
paid by SCP Yes
City of Ukiah Electric Dept Yes
457, without employer
match 13 to 26 14 12 10 days/yr
$1000@7 yrs;
$2500@12; $3500@20
(mgmt only)
yes, $10K policy
paid by City no
NCUAQMD Yes
457, without employer
match 12 to 30 14 12 no no
yes, $50K paid by
agency Yes
Trinity County PUD Yes ? 14 to 29 14 13 5 to 15 days/yr no yes, policy equal to
twice the
employee's salary ?
HBMWD Yes
yes, with $50 to
$100/mo. employer
match 10 to 25 15 12 2 to 4 days/yr

2.5%@5 years; 5% @10,

7.5% @ 20
$50K policy paid by
HBMWD Yes
CalPoly Schatz Energy Research Center No
403(b) with 10%
employer contribution 10 to 24 15 12 no no no No
County of Humboldt Yes
457(b), no employer
match 10 to 30 15 12 10 days/yr
5%@10 years; 10% @
20 years
$10K policy paid by
County Yes
Pioneer Community Energy No
401(a) with $22,500
employer contribution
optional 457(b) 10 to 25
11(plus 1 week
off 12/24 to 1/1) 12 10 days/yr no ? No
Valley Clean Energy No
457(b) & 401(a), with
employer contribution
between 7% and 10% of
salary
20 days PTO,
with 1 add'l
day/yr thru year
10 10 see PTO see PTO no
yes, $25K policy
paid by agency No
Selected Employee Benefits at Labor Market Agencies:

Retirement Paid Time Off Days/Year
43 Agency
PERS
agency?
Deferred comp
plan offered? Vacation
Holidays
(including
floating) Sick leave
Management/
Admin Longevity pay?
Employer paid
life Insurance? Juneteenth
Retirement Paid Time Off Days/Year
Non ‐Labor MarketAgencies
City of Arcata Yes
457 with $90 ‐
$130/month employer
contribution depending on
years of service 12 to 30 16 12 10 to 14 days/yr
3%@10 years; 6%@15;
9%@20 (OE3)
yes, $50K policy paid
by City Yes
City of Fortuna Yes 10 to 20
12 (Mgmt); 14
(FEA) 12 20 to 80 hrs/yr 5% @ 10 yrs
yes, $10K policy paid
by City Yes
City of Ferndale No 11 NoCity of Trinidad No
6% contribution plus up to
6% match (total of 12%) ? 11 12 3 days No
Yes, $1K ‐ $5K per
employee No
City of Rio Dell No
10% contributes 457(b)
plus 4% match (for a
potential total of 14%) ? 14 ? ? ? ? Yes
* for Salaried ‐exempt employees only ‐  who qualifes varies by agency Note: this information was gathered from agency websites and through personal communications. Benefits may vary between bargaining units, and the accuracy of this information is not guaranteed ‐ please contact agencies directly to verify. 44 ATTACHMENT C

RCEA SALARY AND BENEFIT PROPOSALS PRESENTED TO THE BOARD

FINANCE SUBCOMMITTEE

Retirement
10% RCEA Contribution
$4,000 contribution plus up to 7%
match
Increase RCEA's total
contribution from 7% to 10%.

This would put us equal to all
non-PERS labor market
agencies. Currently RCEA
provides 4% contribution with an
up to 3% match. This proposal
would increase the contribution
to 6% with up to 4% match.

RCEA recognizes that using a % of
salary for retirement contributions
benefits higher paid employees more.

Additionally lower paid employees have
less funds to contribute to their
retirement plan. A flat rate will provide an
equal benefit to all employees. The 7%
will continue to be 4% contribution with
an up to 3% match.

Annual
Increase in
Budget $100,120 $132,000
Total amount assumes all employees eligible contribute the full matching amount.

The 12% COLA increase was used in calculating estimated annual cost.

This assumes the Board approves the addition of a 401(a) policy.

Salary
Percent Increase 14% 12% 10%
Explanation
This would move RCEA
to more of a front runner
position in the market.

RCEA is on average
12% behind our labor
market agencies
average salary.

Increasing salaries of all
positions will have us at
the mid-point of the
benchmark positions.

Annual Increased
Budget Based on
Existing Staff $432,540 $370,748 $308,957
45 ATTACHMENT C

RCEA SALARY AND BENEFIT PROPOSALS PRESENTED TO THE BOARD

FINANCE SUBCOMMITTEE

Longevity
5 years 2.5%, 10
years 5%, 15 years

7.5%
5 years 2%,
10 years 4%,
15 years 7%
5 years

2.5%, 10
years 5%, 20
years 7.5%
Flat Rate - 5
years $2,000, 10
years, $4,000,
15 years $6,000
Flat Rate - 5
years $1,000, 10
years $2,500, 15
years $3,500
Explanation
This uses the
HBMWD longevity
model but gives a
15-year incentive
versus a 20 year.

We have 3
employees that
would qualify for
15-year longevity
and none for 20
years.

This is the
average of the
longevity
offered by
labor market
agencies and
member
agencies
HBMWD's
longevity
model
RCEA recognizes
that using a % of
salary benefits
higher paid
employees
more. We
recommend a
flat rate to
provide the
same benefit to
all employees.

RCEA recognizes
that using a % of
salary benefits
higher paid
employees more.

We recommend
a flat rate to
provide the same
benefit to all
employees.

Estimated
Annual
Cost $80,350 $69,141 $68,196 $50,000 $28,000
The 12% COLA increase was used in calculating estimated annual cost of each longevity scenario.

For reference we have 10 employees that qualify for 5-year longevity, 3 employees for 10-year longevity and 3 employees for 15- year longevity.
46 Redwood Coast Energy Authority - Job Classifications and Pay Scales, effective 7-1-21 Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Assistant/Coordinator/Associate
Hourly 18.87 19.36 19.85 20.36 20.89 21.41 21.94 22.49 23.05 23.63 Monthly 3,271.50 3,355.39 3,441.42 3,529.66 3,620.17 3,710.67 3,803.44 3,898.52 3,995.99 4,095.89 Annual 39,258.01 40,264.62 41,297.05 42,355.95 43,442.00 44,528.05 45,641.25 46,782.28 47,951.84 49,150.64 Specialist
Hourly 27.49 28.19 28.92 29.66 30.42 31.20 32.00 32.82 33.64 34.48 Monthly 4,764.92 4,887.10 5,012.41 5,140.93 5,272.75 5,407.95 5,546.61 5,688.83 5,831.05 5,976.83 Annual 57,179.03 58,645.16 60,148.88 61,691.16 63,272.98 64,895.37 66,559.35 68,266.00 69,972.65 71,721.97 Senior Specialist
Hourly 31.61 32.42 33.26 34.11 34.98 35.88 36.78 37.70 38.64 39.60 Monthly 5,479.66 5,620.16 5,764.27 5,912.07 6,063.66 6,219.14 6,374.62 6,533.98 6,697.33 6,864.77 Annual 65,755.88 67,441.93 69,171.21 70,944.83 72,763.93 74,629.67 76,495.41 78,407.80 80,367.99 82,377.19 Technician
Hourly 32.49 33.32 34.18 35.05 35.95 36.87 37.82 38.79 39.76 40.75 Monthly 5,631.27 5,775.66 5,923.75 6,075.64 6,231.43 6,391.21 6,555.09 6,723.17 6,891.25 7,063.53 Annual 67,575.21 69,307.91 71,085.04 72,907.73 74,777.16 76,694.52 78,661.05 80,678.00 82,694.95 84,762.32 Senior Technician
Hourly 37.36 38.32 39.30 40.31 41.34 42.40 43.46 44.55 45.66 46.81 Monthly 6,475.96 6,642.01 6,812.32 6,986.99 7,166.14 7,349.89 7,533.64 7,721.98 7,915.03 8,112.91 Annual 77,711.50 79,704.10 81,747.79 83,843.89 85,993.73 88,198.70 90,403.67 92,663.76 94,980.36 97,354.86 Manager
Hourly 37.49 38.45 39.43 40.44 41.48 42.55 43.64 44.75 45.87 47.02 Monthly 6,497.62 6,664.22 6,835.10 7,010.36 7,190.11 7,374.47 7,563.56 7,757.50 7,951.44 8,150.22 Annual 77,971.40 79,970.67 82,021.20 84,124.31 86,281.34 88,493.68 90,762.75 93,090.00 95,417.25 97,802.68 Senior Manager
Hourly 43.11 44.21 45.35 46.51 47.70 48.93 50.15 51.40 52.69 54.01 Monthly 7,472.26 7,663.86 7,860.36 8,061.91 8,268.63 8,480.64 8,692.66 8,909.98 9,132.73 9,361.04 Annual 89,667.11 91,966.27 94,324.38 96,742.95 99,223.54 104,311.93 101,767.73 106,919.72 109,592.72 112,332.54 Director
Hourly 53.93 55.31 56.73 58.18 59.67 61.16 62.69 64.26 65.87 67.51 Monthly 9,347.15 9,586.82 9,832.63 10,084.75 10,343.33 10,601.92 10,866.96 11,138.64 11,417.10 11,702.53 Annual 112,165.74 115,041.79 117,991.58 121,017.00 124,120.00 127,223.00 130,403.58 133,663.66 137,005.26 140,430.39 Executive Director
Hourly 70.10 71.90 73.74 75.64 77.58 79.51 81.50 83.54 85.63 87.77 Monthly 12,151.29 12,462.86 12,782.42 13,110.18 13,446.33 13,782.49 14,127.05 14,480.23 14,842.24 15,213.29 Annual 145,815.46 149,554.32 153,389.05 157,322.10 161,356.00 165,389.90 169,524.65 173,762.76 178,106.83 182,559.50 47 Draft Redwood Coast Energy Authority - Job Classifications and Pay Scales, 14% Increase Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8 Step 9 Step 10 Assistant/Coordinator/Associate
Hourly 21.52 22.07 22.63 23.21 23.81 24.40 25.01 25.64 26.28 26.94 Monthly 3,729.51 3,758.03 3,854.39 3,953.22 4,054.59 4,155.95 4,259.85 4,366.35 4,475.51 4,587.39 Annual 44,754.13 45,901.67 47,078.64 48,285.78 49,523.88 50,761.98 52,031.03 53,331.80 54,665.10 56,031.72 Specialist
Hourly 31.34 32.14 32.97 33.81 34.68 35.57 36.48 37.42 38.35 39.31 Monthly 5,432.01 5,571.29 5,714.14 5,860.66 6,010.93 6,165.06 6,323.14 6,485.27 6,647.40 6,813.59 Annual 65,184.09 66,855.48 68,569.72 70,327.92 72,131.20 73,980.72 75,877.66 77,823.24 79,768.82 81,763.04 Senior Specialist
Hourly 36.04 36.96 37.91 38.88 39.88 40.90 41.93 42.97 44.05 45.15 Monthly 6,246.81 6,406.98 6,571.26 6,739.76 6,912.57 7,089.82 7,267.06 7,448.74 7,634.96 7,825.83 Annual 74,961.71 76,883.80 78,855.18 80,877.11 82,950.88 85,077.83 87,204.77 89,384.89 91,619.51 93,910.00 Technician
Hourly 37.04 37.99 38.96 39.96 40.98 42.03 43.11 44.22 45.32 46.46 Monthly 6,419.65 6,584.25 6,753.08 6,926.23 7,103.83 7,285.98 7,472.80 7,664.41 7,856.02 8,052.42 Annual 77,035.74 79,011.02 81,036.94 83,114.81 85,245.96 87,431.76 89,673.60 91,972.92 94,272.24 96,629.05 Senior Technician
Hourly 42.59 43.68 44.80 45.95 47.13 48.34 49.55 50.79 52.06 53.36 Monthly 7,382.59 7,571.89 7,766.04 7,965.17 8,169.40 8,378.88 8,588.35 8,803.06 9,023.13 9,248.71 Annual 88,591.11 90,862.67 93,192.49 95,582.04 98,032.86 103,060.18 100,546.52 105,636.69 108,277.61 110,984.55 Manager
Hourly 42.73 43.83 44.95 46.11 47.29 48.50 49.74 51.02 52.30 53.60 Monthly 7,407.28 7,597.21 7,792.01 7,991.81 8,196.73 8,406.90 8,622.46 8,843.55 9,064.64 9,291.25 Annual 88,887.40 91,166.56 93,504.17 95,901.71 98,360.73 103,469.54 100,882.80 106,122.60 108,775.67 111,495.06 Senior Manager
Hourly 49.14 50.40 51.70 53.02 54.38 55.78 57.17 58.60 60.07 61.57 Monthly 8,518.38 8,736.80 8,960.82 9,190.58 9,426.24 9,667.93 9,909.63 10,157.37 10,411.31 10,671.59Annual 102,220.51 104,841.55 107,529.79 110,286.96 113,114.84 116,015.22 118,915.60 121,888.49 124,935.70 128,059.09 Director
Hourly 61.48 63.05 64.67 66.33 68.03 69.73 71.47 73.26 75.09 76.97 Monthly 10,655.75 10,928.97 11,209.20 11,496.62 11,791.40 12,086.19 12,388.34 12,698.05 13,015.50 13,340.89 Annual 127,868.94 131,147.64 134,510.40 137,959.38 141,496.80 145,034.22 148,660.08 152,376.58 156,185.99 160,090.64 Executive Director
Hourly 79.92 81.97 84.07 86.22 88.44 90.65 92.91 95.24 97.62 100.06 Monthly 13,852.47 14,207.66 14,571.96 14,945.60 15,328.82 15,712.04 16,104.84 16,507.46 16,920.15 17,343.15 Annual 166,229.63 170,491.93 174,863.51 179,347.19 183,945.84 188,544.49 193,258.10 198,089.55 203,041.79 208,117.83 48 RCEA Salary and
Benefit Schedule
Update
RCEA Board of Directors
Finance Subcommittee Meeting - May 15, 2023
RCEA job classification Current RCEA
pay scale
midpoint
2023 Salary survey
benchmark positions
average midpoint
RCEA
percent below
benchmarks
Assistant/Associate/Coordinator $43,442 $48,025 11%
Specialist/Senior Specialist $68,266 $73,100 7%
Technician/Senior Technician $80,678 $87,735 9%
Manager/Senior Manager $93,090 $101,379 9%
Director $124,120 $155,686 25%
Executive Director $161,356 $223,313 38%
Average % below benchmarks
(excluding Executive Director position)
12%
During this same period, the federal Bureau of Labor Statistics’ Consumer Price Index – All Urban Consumers, West Region (CPI-W) has increased by 13.5%. Additionally, the Social Security Administration total cost-of-living adjustment (COLA) for 2022 and 2023 is 14.6%.

Employee Survey
Higher Salary
Paid Time Off Retirement
Longevity
Salary Adjustment Proposals Presented to the Board Finance Subcommittee Salary
Percent Increase 14% 12%
Explanation
This would move RCEA to
more of a front runner
position in the market.

RCEA is on average 12%
behind our labor market
agencies average salary.

Increasing salaries of all
positions will have us at the
mid-point of the benchmark
positions.

Annual Increased
Budget Based on
Existing Staff
$432,540 $370,748
Retirement
10% RCEA Contribution
$4,000 contribution plus up to 7%
match
Increase RCEA's total contribution
from 7% to 10%. This would put us
equal to all non-PERS labor market
agencies. Currently RCEA provides
4% contribution with an up to 3%
match. This proposal would
increase the contribution to 6% with
up to 4% match.

RCEA recognizes that using a % of salary
for retirement contributions benefits higher
paid employees more. Additionally lower
paid employees have less funds to
contribute to their retirement plan. A flat
rate will provide an equal benefit to all
employees. The 7% will continue to be 4%
contribution with an up to 3% match.

Annual Increase
in Budget $100,120 $132,000
Total amount assumes all employees eligible contribute the full matching amount.

The 12% Cola increase was used in calculating estimated annual cost This assumes the Board approves the addition of a 401(a) policy.

Retirement Proposals Presented to the Board Finance Subcommittee RCEA Board of Directors
Finance Subcommittee Meeting - May 15, 2023 Longevity
5 years 2.5%, 10 years 5%,
20 years 7.5%
Flat Rate - 5 years $1,000, 10
years $2,500, 15 years $3,500
HBMWD's longevity model
RCEA recognizes that using a % of
salary benefits higher paid
employees more. We recommend
a flat rate to provide the same
benefit to all employees.

Estimated
Annual Cost $68,196 $28,000
The 12% Cola increase was used in calculating estimated annual cost of each longevity scenario.

For reference we have 10 employees that qualify for 5-year longevity, 3 employees 10-year longevity and 3 employees for 15- year longevity.

Longevity Proposals Presented to the Board Finance Subcommittee Board Finance Subcommittee
Recommendations:
• Adopt a 14% salary adjustment effective July 1, 2023. • Add a 401(a) retirement plan
• Increase RCEA’s contribution to retirement by $4,000/year • Addition of Juneteenth to RCEA paid holidays
• Adopt a longevity incentive payable once per calendar year of:
• $1,000 per year for employees with 5-9 years of service, • $2,500 per year for employees with 10-14 years of service, and • $3,500 per year for employees with 15 or more years of service.

Salary and Benefit Schedule Update
•The Board Finance Subcommittee
recommendations are included in the draft
FY 23-24 budget.
•The draft FY 23-24 budget estimates a net
revenue of $9.59 million.

STAFF REPORT
Agenda Item # 10.2
AGENDA DATE: May 25, 2023
TO: Board of Directors
PREPARED BY: Eileen Verbeck, Deputy Executive Director
Lori Biondini, Director of Business Planning and Finance SUBJECT: Fiscal Year 2023-24 Preliminary Draft Budget and Addition of Staff Positions

SUMMARY
Attached is a preliminary draft of the fiscal year 2023-2024 (FY23-24) annual budget for review.

This current fiscal year was marked by an overall reduction in customer loads, which resulted in a mid-year reduction in revenue and expenses. The net result made actual revenue and expenses closer to 50% of their respective budget line items. This fiscal year also included increased facilities and operations costs associated with leasing and setting up a second office location and extending the duration of customer rebate programs as the State Program Administrator funding was exhausted.

BUDGET ASSUMPTIONS
Staff calculated power sales cost and revenue based on models provided by The Energy Authority dated May 5, 2023. Staff used a conservative scenario of power sales cost and revenue, which assumes a delay in the Sandrini Solar project until April 2024. The model also includes meeting the current 2023 renewable energy targets through short-term procurement pathways.

REVENUES
• Government Agencies $10,676,170: Revenue in this category is this year’s share of the 3-year funding from the California Public Utilities Commission (CPUC) for energy efficiency programs anticipated to be about $130,000 (booked as it is expensed), this year’s share of a 2-year grant from the California Energy Commission for medium and heavy duty zero-emission vehicle planning anticipated to be about $154,470 (reimbursed as it is expensed), and this year’s share of a grant from the California Energy Commission for electric vehicle resilience hubs anticipated to be about $350,000 (reimbursed as it is expensed). Revenue in this category also includes funds from California’s Electric Vehicle Infrastructure Project (CALeVIP) which provides reimbursements for new electric vehicle charging equipment.

Additionally, RCEA is anticipating the award of the Rural Regional Energy Network (REN) funding from the CPUC in January 2024. If awarded RCEA will be tasked with administering the funds along with implementation. RCEA has budgeted $851,465 in Rural REN administration revenue which will cover the cost of staff time and consultants along with $9,129,235 in implementation revenue (most of which is pass-through funds).

RCEA anticipates that the Rural REN program will be a multi-year, ongoing source of funding; currently the CPUC reviews the funding awards for all RENs in four-year cycles, and RCEA would resubmit for future funding cycles.
49

• Non-Government Agencies $400,000: Revenue in this category includes this year’s share of funding from Pacific Gas & Electric Company’s Local Government Partnership Program for energy efficiency programs.
• Electricity Sales $98,822.720: This line item includes electricity sales revenue, excess power generated through RCEA’s power purchase agreements that is sold in the energy market, and the value of the energy produced by the Redwood Airport Microgrid. This estimate assumes $3,545,832 (4% of projected electricity sales) to be uncollectable due to customer non-payment. This line item has a degree of uncertainty and hopefully represents a conservative forecast.

EXPENSES
• Wholesale Power Supply $80,348,642: Energy costs continue to be RCEA’s largest expense. Power costs for the fiscal year represent what has already been procured through RCEA’s previously approved hedging strategy and existing power purchase agreements.
• Professional and Program Services $10,961,761: This budget line item includes contracted services for energy scheduling coordination, energy procurement credit fees, data management, legal services, accounting services, regulatory services, as well as program-specific professional services, including database development and engineering calculations. Funds have been budgeted for an external study and analysis of local electric grid infrastructure conditions and issues to better understand the grid constraints that are increasingly impacting Humboldt County and to help identify and pursue opportunities to address these challenges. About $7.5 million of these expenses are related to the implementation of the Rural REN including pass-through funds to partner agencies.
• Personnel $5,426,213: The proposed budget includes the addition of five full-time positions (Infrastructure Programs Manager, Customer Service Associate, Finance Specialist, Rural REN Manager and Rural REN Specialist). The budget includes an increase in health insurance benefits estimated at 7% from the current fiscal year. The budget includes a 14% salary adjustment, the increase of RCEA contribution to eligible retirement plan of $4,000 per year, and a longevity incentive.

All positions listed in the Board-adopted organization chart are full-time, fully benefited positions. Non-benefited, part-time, limited-term and intern positions can be created and dissolved at the discretion of the Executive Director if they fit within the Board-adopted total personnel budget. The proposed personnel budget includes $414,720 in funds for part-time, limited term and intern positions.

Staff are anticipating an expansion of projects and programs in the upcoming year including: the proposed Rural REN (potentially around $18 million per year), CEC Transportation Grant ($700,000), and the release of additional state and federal transportation grant funds. The next fiscal year will require a fully staffed organization to implement upcoming projects and programs. The proposed staffing additions, and the associated FY23-24 budget figures, are as follows:

1. Addition of a full-time Finance Specialist ($106,737). RCEA has realized an increase in contracts, administration of customer programs, administration of grants, fulfilling requests from auditors, and administering the funding of the Rural RENs state-wide programs. Currently the Finance Department which oversees much of these duties consists of a director, two managers and a coordinator. Staff is recommending the addition of a finance specialist to assist with the processing of accounts payable, grant administration and general administrative tasks. This position will not only help with additional work loads, 50

but they will also assist in freeing the finance manager’s time to be spent on more complex tasks.

2. Addition of a full-time Customer Service Associate ($86,259). Currently our Community Strategies Department consists of a Community Strategies Manager and Outreach Coordinator. Previously much of the phone coverage was handled by an administrative specialist. RCEA has seen a significant increase in the number of calls regarding customer bills, changes to the solar net metering rules, rebates, and questions regarding collections. Staff has determined the need to hire a dedicated staff person to answer phones. The addition of a customer service associate will allow Community Strategies Department to have a unified customer service message and maintain the availability to do proactive outreach and engagement.

3. Addition of a second full-time Infrastructure Program Manager ($75,249 starting in January 2024). Currently, RCEA’s Department of Infrastructure Planning and Operations is responsible for transportation-related activities, microgrid development, and resiliency topics related to microgrids and energy storage. This department currently consists of a director, manager and a specialist. Historically, this staffing could adequately support transportation initiatives with occasional support from part-time or limited-term employees. However, recent growth encourages a reevaluation and expansion of our existing staffing. Recent legislation has allocated millions of state and federal dollars to transform our transportation system away from fossil fuels. We need the staff to apply for and manage these grant funds. Additionally, with the adoption of the Inflation Reduction Act public agencies are now eligible to receive additional funding, loans, and tax incentives for large scale solar projects. RCEA will be evaluating the feasibility of completing more projects like the Airport Microgrid now that these incentives are in place.

4. Addition of a Rural REN Manager ($124,195 starting October 2023). RCEA has applied with the CPUC for funding to develop and implement a Rural Regional Energy Network (REN) that will serve rural communities across California. This Rural REN will give RCEA an opportunity to offer energy efficiency programs, workshops and trainings that would otherwise not be offered in rural areas such as ours, with less cost-effectiveness constraints than standard CPUC-funded energy efficiency programs. RCEA will also act as Administrator for the program and may receive up to an additional 10% of the total budget for administrative functions and 6% for program marketing. RCEA is proposing an additional Manager and Specialist position be allocated to manage the administration of this program. The program is anticipated to provide over $90 million in revenue over the next five years. Additionally, we are proposing the movement of one of our existing Technician positions on the organization chart to be solely working on Rural REN administration. During the first six months of the program, we anticipate these new positions will administer the pass-through of over $9 million to RCEA and our Rural REN partners.

5. Addition of a Rural REN Specialist ($67,245 starting January 2024). See above. • Facilities and Operations $1,762,790: This budget line item is for operations costs such as information technology, office supplies and utilities, as well as costs associated with RCEA-owned or managed assets. The largest item in this budget are costs associated with electric vehicle charging station installation and maintenance ($421,000), most of which is covered through CEC grant funding and other state contracts. The draft budget includes $500,000 towards real estate costs toward the purchase and/or renovation of a new office facility. The draft budget includes an estimated $170,000 of IT resources that will be funded by the Rural REN funds. 51

• Incentives and Rebates $591,500: This line item is for direct incentives and rebates paid out to customers. This currently includes customer incentives funded through the RCEA-administered California Public Utilities Commission efficiency program, Rural REN and incentives approved as part of CCE-funded customer benefit programs. The following CCE-funded programs are included in the proposed budget: heat pump rebates, electric panel upgrades, efficiency measures, electric vehicle rebates, electric vehicle charging station rebates and e-bike rebates.

SUMMARY OF RESERVES
During the fiscal year 2021-22 RCEA experienced significant cashflow challenges that exhausted all cash reserves. Key causes of the cashflow constraints included:
• Extremely high energy prices in 2021;
• Maintaining customer rates below PG&E’s, which did not provide for full cost-recovery; • An inflated 2021 power charge indifference adjustment (PCIA) exit fee that did not reflect rising market prices;
• Over $3.2 million in pandemic-era delinquent RCEA customer bill payments; • $4 million of RCEA’s cash reserves tied up in the security deposit for the 100MW Sandrini Solar project; and
• Around $3-4 million of RCEA’s reserves tied up at any given time in ongoing cashflow management due to the structural delay between payments for wholesale energy procurement versus when the associated retail revenue from energy sales is realized.

The Board adopted guidelines for the RCEA Community Energy Program in September 2016 and revised them in May 2018. In those guidelines the Board reserve target was set at $35 million by the end of year five under projected market conditions and a minimum of at least $10 million under adverse market conditions. The FY21-22 market conditions greatly effected RCEA’s ability to meet these goals. However, based on current projections RCEA is on track to meet the $35 million target by 2025.

The current year budget anticipates building our reserves by an estimated $16 million. The projected net revenue for FY23-24 is $9.59 million. Staff recommends all projected net revenue be designated as cash reserves to meet the Board’s goal.

The preliminary draft budget presented at the meeting has already been shared with the Board’s Finance Subcommittee. A tentative second meeting with the Finance Subcommittee will facilitate any further input in advance of the final draft presentation to the Board at the June meeting.

STAFF RECOMMENDATION
Provide guidance and input to staff on draft FY23-24 budget.

Approve:

1. Addition of a Finance Specialist,

2. Addition of a Customer Service Associate,

3. Addition of a Rural REN Manager (starting October 2023),

4. Addition of a Rural REN Specialist (starting January 2024), and

5. Addition of an Infrastructure Program Manager (starting January 2024).

ATTACHMENTS

1. Preliminary Draft Fiscal Year 2023-24 RCEA Budget

2. Revised RCEA Organization Chart
52 Redwood Coast Energy Authority Fiscal Year 2023-2024 Budget

POWER RESOURCES
Account Community Choice Energy
REVNET and
CAL eVIP
CEC Grant - MH
Duty and EV
Resilience Hubs
Airport
Micrgrid
Operations
CCE Customer
Programs and
Services
Income
State Contracts 26,000 504,470
EVSE Network Sales 35,000
Non-government Contracts
PPA Revenues 13,722,756
Electricity Sales 88,645,796
Uncollectable Accounts (3,545,832)
Total 98,822,720 61,000 504,470 - -
Expense

WHOLESALE POWER SUPPLY
Sub-total 80,348,642 - - - -

PERSONNEL EXPENSES
Recruitment Expenses -
Screening/Testing Services -
Safety -
Staff Training, Development & Meetings 20,100 1,000 2,350 5,600 Full-time Salaries and Benefits 1,185,140 5,000 166,737 17,780 395,319 Part-Time Term Salaries and Benefits 33,841 14,000 12,000 69,950 Sub-total 1,239,081 20,000 178,737 20,130 470,869

FACILITIES AND OPERATIONS
Office Supplies and Expenses -
Furniture & Equipment
Information Technology 18,296 1,500 21,625
Office Lease
Utilities
Alarm Service
Janitorial
Facility Repairs & Maintenance 6,750
EV Station Repairs & Maintenance 13,505
Insurance P&L
Dues & Memberships 80,884
Mileage reimb for empl & volunt 655 2,450 500
Capital Improvements: EV Station Equipment & Services 37,000 382,110 32,500 New Building Development
Professional Services-Admin
Sub-total 99,835 50,505 384,560 8,250 54,625

COMMUNICATIONS AND OUTREACH
Sub-total 70,835 - 2,184 400 7,500

PROFESSIONAL & PROGRAM SRVS
Regulatory 180,000
Contracts - Program Related Ser 192,701 28,199 60,000
Accounting -
Legal 80,000
Wholesale Services - TEA 766,853
Procurement Credit - TEA 635,821
Data Management - Calpine 887,187
Sub-total 2,742,562 - 28,199 60,000 -

PROGRAM EXPENSES
PG&E CCA Billing Franchise Fees 270,014
EV Site Host Pmts - 20,000
Sub-total 270,014 20,000 - - -

INCENTIVES & REBATES
Efficiency Measures
EV & EVSE 90,000
E-Bike 61,500
Sub-total - - - - 151,500

NON OPERATING COSTS
Sub-total 6,000 - - 120,000 -
Total Expense 84,776,969 90,505 593,680 208,780 684,494 Net Income - Reserve Fund Contribution 14,045,751 (29,505) (89,210) (208,780) (684,494) INFRASTRUCTURE and TRANSPORTATION

53 Redwood Coast Energy Authority Fiscal Year 2023-2024 Budget Account
Income
State Contracts
EVSE Network Sales
Non-government Contracts
PPA Revenues
Electricity Sales
Uncollectable Accounts
Total
Expense

WHOLESALE POWER SUPPLY
Sub-total

PERSONNEL EXPENSES
Recruitment Expenses
Screening/Testing Services
Safety
Staff Training, Development & Meetings
Full-time Salaries and Benefits
Part-Time Term Salaries and Benefits
Sub-total

FACILITIES AND OPERATIONS
Office Supplies and Expenses
Furniture & Equipment
Information Technology
Office Lease
Utilities
Alarm Service
Janitorial
Facility Repairs & Maintenance
EV Station Repairs & Maintenance
Insurance P&L
Dues & Memberships
Mileage reimb for empl & volunt
Capital Improvements: EV Station Equipment & Services
New Building Development
Professional Services-Admin
Sub-total

COMMUNICATIONS AND OUTREACH
Sub-total

PROFESSIONAL & PROGRAM SRVS
Regulatory
Contracts - Program Related Ser
Accounting
Legal
Wholesale Services - TEA
Procurement Credit - TEA
Data Management - Calpine
Sub-total

PROGRAM EXPENSES
PG&E CCA Billing Franchise Fees
EV Site Host Pmts
Sub-total

INCENTIVES & REBATES
Efficiency Measures

EV & EVSE
E-Bike
Sub-total

NON OPERATING COSTS
Sub-total
Total Expense
Net Income - Reserve Fund Contribution
RuralREN -
Admin
Rural REN -
Implementation
PG&E Local
Government
Partnership
Program
RCEA-Administered
CPUC Efficiency
Program
CCE Customer
Programs and
Services
851,465 9,129,235 130,000
400,000
851,465 9,129,235 400,000 130,000 -
- - - - -
15,000 5,000 10,000
482,465 389,314 400,000 486,169
223,049
497,465 394,314 400,000 - 719,218
500
152,000 25,000
2,000 2,500
154,000 - - - 28,000
- 459,921 - - 20,000
25,000
100,000 7,490,000 10,000
75,000
200,000 7,490,000 - - 10,000
- - - - -
150,000 130,000 160,000
- 150,000 - 130,000 160,000
- 175,000 - - -
851,465 8,669,235 400,000 130,000 937,218
- 460,000 - - (937,218)

DEMAND-SIDE MANAGEMENT (DSM)

54 Redwood Coast Energy Authority Fiscal Year 2023-2024 Budget Account
Income
State Contracts
EVSE Network Sales
Non-government Contracts
PPA Revenues
Electricity Sales
Uncollectable Accounts
Total
Expense

WHOLESALE POWER SUPPLY
Sub-total

PERSONNEL EXPENSES
Recruitment Expenses
Screening/Testing Services
Safety
Staff Training, Development & Meetings
Full-time Salaries and Benefits
Part-Time Term Salaries and Benefits
Sub-total

FACILITIES AND OPERATIONS
Office Supplies and Expenses
Furniture & Equipment
Information Technology
Office Lease
Utilities
Alarm Service
Janitorial
Facility Repairs & Maintenance
EV Station Repairs & Maintenance
Insurance P&L
Dues & Memberships
Mileage reimb for empl & volunt
Capital Improvements: EV Station Equipment & Services
New Building Development
Professional Services-Admin
Sub-total

COMMUNICATIONS AND OUTREACH
Sub-total

PROFESSIONAL & PROGRAM SRVS
Regulatory
Contracts - Program Related Ser
Accounting
Legal
Wholesale Services - TEA
Procurement Credit - TEA
Data Management - Calpine
Sub-total

PROGRAM EXPENSES
PG&E CCA Billing Franchise Fees
EV Site Host Pmts
Sub-total

INCENTIVES & REBATES
Efficiency Measures

EV & EVSE
E-Bike
Sub-total

NON OPERATING COSTS
Sub-total
Total Expense
Net Income - Reserve Fund Contribution
10,641,170
35,000
400,000
13,722,756
88,645,796
(3,545,832)
- - 109,898,890
- - 80,348,642
3,500 3,500
2,000 2,000
3,000 3,000
30,500 89,550
176,056 1,209,463 4,913,443
61,880 414,720
237,936 1,248,463 5,426,213
15,000 15,500
6,000 6,000
153,419 371,840
128,064 128,064
32,403 32,403
2,740 2,740
14,000 14,000
12,000 18,750
13,505
84,188 84,188
3,000 12,000 95,884
100 100 8,305
451,610
500,000 500,000
20,000 20,000
3,100 979,915 1,762,790
20,000 41,750 622,590
205,000
200,000 8,080,900
191,000 191,000
40,000 195,000
766,853
635,821
887,187
200,000 231,000 10,961,761
270,014
20,000
- - 290,014
-
440,000
90,000
61,500
- - 591,500
- 3,500 304,500
461,036 2,504,628 100,308,010
(461,036) (2,504,628) 9,590,880

PROPOSED

FISCAL YEAR
2023-2024
BUDGET

GENERAL &

ADMINISTRATIVE

STRATEGIC

PLANNING

55 *Executive Director may approve the hiring of part-time, intern and limited-term positions if they fit within the Board adopted total personnel budget.

Community of
Humboldt County
RCEA Board
Independent Auditors
Executive
Director*
Manager
Community
Strategies
Coordinator
Customer
Service
Associate
Customer
Service
Director
Infrastructure Planning
& Operations
Manager
Infrastructure
Programs
Manager
Infrastructure
Programs
Specialist
Infrastructure
Director
Business Planning
& Finance
Manager
Finance
Coordinator
Admin
Manager
Contracts and
Grants
Specialist
Finance
Director
Power Resources
Manager
Power
Resources
Manager
Account
Services
Specialist
Power
Resources
Specialist
Power
Resources
Specialist
Power
Resources
Contractor
Wholesale Power
Procurement
&
Scheduling
Director
Demand-Side
Management
Manager
Direct Install,
Energy Efficiency,
& Conservation
Technician
Energy Efficiency
Technician
Energy
Efficiency
Technician
Energy
Efficiency
Coordinator
Intake
Manager
Demand
Side
Projects
Manager
Demand
Side
Projects
Technician
Energy
Efficiency
Specialist
Programs
Manager
Rural REN
Technician
Rural REN
Specialist
Rural REN
Manager
Regulatory and
Legislative Policy
General Counsel
Deputy
Executive
Director
Community
Advisory
Committee
Manager
Human Resources
& Workforce
Development
Specialist
Administration
Technician
Information
Technology
Specialist
Executive
Support
Clerk of the
Board
RCEA Organization Chart
Proposed changes highlighted.
56 Fiscal Year 2023-24 Preliminary
Draft Budget Overview
Assumptions: Energy Sales & Supply
• Calculated energy revenue and expense based on financial model from May 5, 2023.
• Model includes meeting the current renewable energy
targets through short-term procurement pathways.
• Model includes energy from the Sandrini Solar project coming on-line in April 2024.
• Electricity sales revenue projected to be up $20M
• Wholesale power costs projected to be up $26M
Revenue
Expenses
Rural REN Implications FY 2023-2024
• CPUC decision on Rural REN anticipated in June – August 2023. Rural REN funding potentially $90+ million over the next five years.
• A portion of the revenue will offset current personnel and programmatic costs being funded by CCE-DSM
General budget.
• Approximately $7.5 million of revenue and expenses
are pass-through funds.
• Rural REN revenue and expenses included in budget
starting January 1, 2024.

Changes/Highlights: Personnel
• Includes addition of Finance Specialist, Customer Service Associate, Rural REN Manager and Specialist, Infrastructure Projects Manager
• Includes biannual 14% Salary COLA/Market Adjustment
• Increase in Retirement Benefits by $4,000/person
• Includes annual longevity pay adder (Flat rate – 5 years: $1,000, 10 years: $2,500, 15 years: $3,500)
• Personnel is 5.4% of total budget, above changes result in ~1.3% increase to total budget.

Changes/Highlights: Other
• $500,000 budgeted for building development.
• $200,000 budgeted for local electric grid
assessment and analysis.
• Maintains 0.5% retail rate discount. As of
January 2023, RCEA has provided $6.2M in
cumulative rate payer savings.

Revenue
Current Budget FY23-24 Preliminary
Draft
Electricity Sales $78.6M $98.8M
Grants and
Contracts
$1.6M $11M
Program Related
Service Fees
(e.g. EV charging)
$30,400 $35,000
Expenses
Current
Budget
FY23-24
Draft
Wholesale Power Supply $54.4M $80.3M Market price increases, Sandrini delay Personnel $4.1M $5.4M Proposed compensation updates & new positions, standard merit increases
Facilities and Operations $977K $1.8M EV charging station network expansion, $500K for RCEA office relocation
Communication & Outreach $177K $623K Rural REN state-wide outreach funding Professional & Program Serv. $2.8M $10.96M Rural REN pass-through funding to other regions, local grid analysis
Program Expenses $638K $290K Moved pass-through utility taxes out of expenses
Incentives and Rebates $578K $592K Maintaining current customer rebate funding level
Non-Operating Costs $246K $305K This is microgrid USDA loan interest + Rural REN Loan Program seed funding
Preliminary Bottom-line
• End result: Addition of $9.59M to reserves to keep on target towards a total Board’s reserve goal of $35M.

Current Budget FY23-23 Draft
Revenue $80.2M $109M
Expenses $63.9M $100M
Net Revenue $16.3M $9.59M
Progress on
Building
Reserves
Next Steps
• Finance Committee reviews, provides recommendation (done) • Board provides input/direction on draft at May meeting (today) •Staff will refine and finalize proposed budget
•Optional second Finance Subcommittee meeting
for additional review/input if needed
•Final proposed budget presented to Board June 22

STAFF REPORT
Agenda Item # 11.1
AGENDA DATE: May 25, 2023
TO: Board of Directors
FROM: Matthew Marshall, Executive Director
SUBJECT: Executive Director’s Report

SUMMARY
Executive Director Matthew Marshall will provide updates on:
• CORE Hub offshore wind development community engagement, and • Other topics as needed.

RECOMMENDED ACTION
None. (Information only.)
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intentionally
left blank.
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