1 Regular Meeting
February 24, 2022
Board of
Directors
2 Regular
Meeting
Agenda
Welcome
Call to Order
Pledge of Allegiance
Roll Call
Items to be Added, Withdrawn, or Reordered on the Agenda Public Comment for Items Not on the Agenda
Consent Agenda
Regular Agenda Items:
10. Approval of Fiscal Year (FY) 2021-22 Budget Amendment and Review Fiscal Year 2022-23 Budget Schedule
11. Approval of Financial Reserves Policy Revision
12. Approval of Community Advisory Committee (CAC) Appointments for National City and Unincorporated San Diego County
13. Approval of New Rate for Electric Vehicle (EV) Fleet
14. Approval of Proposed 2022 Padres Sponsorship Agreement
15. Update on CEO Search Ad Hoc Committee Efforts
Reports by Management and General Counsel
Director Comments
Adjournment
3 Welcome to SDCP!
Tim Manglicmot, Finance Manager
and
Colin Santulli, Director of Programs
5 Regular
Meeting
Agenda
Roll Call
1. Approval of Findings to Continue Holding
Remote-Teleconference Meetings Pursuant to
Assembly Bill 361
Recommendation: Find and determine that the Board
has reconsidered the circumstances of the COVID-19
State of Emergency; the State of Emergency remains in
effect; state or local officials continue to impose or
recommend social distancing measures; and meetings of
SDCP legislative bodies may be held remotely in
compliance with Government Code section 54953(e) for
the next 30 days.
Items to be Added, Withdrawn or
Reordered on the Agenda
Non-Agenda Public Comments
7 Consent
Agenda
2. Approval of October 28, 2021 and November 18, 2021
Meeting Minutes
3. Receive and file Treasurer’s Report or Period Ending 12/31/21
4. Approval of Resolution Adopting a Board Compensation and Board/Committee Reimbursement Policy
5. Update on Back Office Metrics/Dashboard
6. Update om Regulatory and Legislative Affairs and Approval of Support Position for AB 1814
7. Approval of Engagement Letter Between Keys & Fox, LLP and San Diego Community Power
8. Update on Residential Enrollment Public Relations
9. Approval of Annual Updates on Exhibit C (Annual Energy Use by Jurisdiction) and Exhibit D (Voting Shares of SDCP Members) of the SDCP Joint Powers Agreement
8 Item 10
Approval of Fiscal Year (FY) 2021-22 Budget
Amendment and Review Fiscal Year 2022-23
Budget Schedule
Recommendation:
Approve the fiscal year (FY) 2021-22 budget amendment for total operating revenues of $378,053,506 and operating
expenses of $341,199,063.
Presenter:
Dr. Eric Washington, Chief Financial Officer
9 Proposed FY 2021-22 Amended Budget
Operating Revenue
FY 2022
$315.1 m
Operating Expense
$296.4 m
Operating Income
+$18.7 m
Operating Revenue
$378.1 m
FY 2022 Amended
Operating Expense
$341.2 m
Operating Income
+$36.9 m
10 Proposed FY 2021-22 Budget - Changes
Operating Revenue
FY 2022
$315.1 m
Operating Expense
$296.4 m
Operating Income
+$18.7 m
Operating Revenue
$378.1 m
FY 2022 Amended
Operating Expense
$341.2 m
Operating Income
+$36.9 m
+$62.9 million
Approved rate change,
effective February 1, 2022
+$44.8 million
Higher market power
costs, increase in cost of
market power supply
+$18.1 million
Increase in operating
income over budget
11 Proposed FY 2021-22 Budget - Changes
Budget Changes by Category
Revenue
Cost of Energy
Board approved a rate change, effective February 1, 2022, which increased projected
revenue.
Increased market power costs affecting all participants and in cost of market power supply.
Adopted
$315.1m
Adopted
$284.3m
Professional
Services
Personnel
Marketing and
Outreach
General and
Administrative
Amended
$378.1m
Amended
$329.5m
Small increase to account for
known costs contract costs.
Adopted
$5.0m
Amended
$5.1m
Longer than expected lead
times to hire new positions.
Adopted
$4.9m
Amended
$4.0m
Right-sizing of the Civilian contract to the not-to-exceed amount approved in May 2021.
Adopted
$1.4m
Amended
$1.7m
Slight decrease from lower
travel and reimburse requests
and to lower rent expenses.
Adopted
$0.8m
Amended
$0.8m
Operating Income
+$36.9 m
Budget Development for FY 2022-23
The proposed schedule for budget development is the
following.
Develop Operating
Revenue Estimate
Develop Operating
Expense Estimate
Develop financial
plan for credit rating
in 3-years
February March-April
Strategic planning
sessions with SDCP
Board
Staff develop
operating budgets
Baseline budget is
developed
May
Financial and Risk
Management
Committee Review
SDCP Board Preview
(Information Item)
June
SDCP Board Approval July 1st Budget
Implemented
Mid-year budget
review (February)
Budget amendments
as necessary
13 Item 11
Approval of Financial Reserves Policy Revision
Recommendation:
Approve financial reserves policy revision
Presenter:
Dr. Eric Washington, Chief Financial Officer
14 Reserve Policy
SDCP maintains reserves to:
• Meet SDCP’s strategic objectives
• Secure favorable terms with vendors, including
power producers
• Secure a standalone investment grade credit rating
• Provide funds to cover unanticipated expenditures
Policy
SDCP will allocate up to 15% of gross revenue
annually toward building an Operating/Working
Capital Reserve equivalent to 90 days of total
operating expenses held as unrestricted cash.
15% Annually 90-Days Operating
Expense
Guidelines
Budget
Spending must align with the Board
approved budget
Staff Use
Use that brings balance below target
must include replenishment plan/timeline
Board Approval
Spending must be approved by the
Board
Current Conditions for Use of Reserve
Delegated to CEO:
The use of up to lesser of 10% of annual budget amount or $40 million for:
1. Increases in power expenses
2. Covering unanticipated declines in revenues
3. Posting collateral required under energy contracts
4. Funding other emergency expenditures
Delegated Conditions for Use of Reserve
Use of Reserves
Definition: a projected or estimated reduction in the amount of the Operating/Working Capital Reserves by the end of a fiscal year below the sum of the balance of the Operating/Working Capital Reserves at the beginning of the fiscal year plus the projected addition to the Operating/Working Capital Reserves in the budget for the current fiscal year
Delegated to CFO
Temporary use for working capital for expected peaks/dips in revenues/expenditures Additional Use
CEO must present recommendations to Board and Board must authorize use 15 Item 12:
Approval of Community Advisory Committee (CAC)
Appointments for National City and Unincorporated San Diego County
Recommendation:
Approve CAC appointments for National City and Unincorporated San Diego County.
Presenters:
Rita de la Fuente, Director of External Affairs
Sebastian Sarria, Program and Policy Manager
16 Background
Section 5.10.3 of the SDCP Joint Powers
Authority (JPA) Agreement:
“Each Party may nominate a committee
member(s) and the Board shall determine the
final section of committee members, who should
represent a diverse cross-section of interests,
skills sets and geographic regions.”
At the December 2021 Board Meeting, the
makeup of the CAC was updated to fourteen (14)
primary members, with two from each member
agency.
17 Analysis & Discussion • Applications open period: • Released on December 20, 2021 • Closed on February 2, 2022, at 5 pm PDT • Qualifications were based on residence and work impact • A total of 31 applications were received • 19 applicants qualified for unincorporated San Diego County
• 6 applicants qualified for National City
• The CAC received an update on the committee expansion at their February 11, 2022, meeting.
• Members will serve a limit of two, three-year staggered terms. • Breakdown of seat terms found in Attachment B: CAC Roster and Seat Assignments
18 Recommendation
Approve CAC appointments for the following representatives:
Member Agency Odd Seat (Term Ends 6/2025) Even Seat (Term Ends 6/2023) County of San Diego Peter Andersen (seat 11) Victoria Abrenica (seat 12) National City Aida Castañeda (seat 13) Lawrence Emerson (seat 14) 19 Item 13
Approval of New Rate for Electric Vehicle (EV)
Fleet
Recommendation:
Approve the new rate for the Electric Vehicle (EV)
fleet
Presenter:
Lucas Utouh, Director of Data Analytics and Account Services 20 Background • In January 2022, SDG&E developed a
new optional rate for Non-residential
customers called EV-HP
• This rate plan supports the charging of
Electric Vehicles (EVs) whose monthly
demand is equal or greater than 20
kilowatts (kW)
• Allows EV fleet customers to choose the
amount of power they need to charge
their vehicles and pay with a flat monthly
subscription fee
21 SDCP EV-HP Rate
• SDCP is proposing an equivalent EV-HP rate for both Secondary and Primary voltage customers
SDCP customers on the EV-HP rate would realize approximately 2% savings at the PowerOn level
• Customers taking service on EV-HP will need to select their preferred kW subscription level.
If the maximum demand exceeds the subscription level, the subscription level will be increased accordingly
• EV-HP customers pay a monthly subscription charge on the delivery portion of their bill
• The SDCP website will be updated with the EV-HP rate key 22 Item 14
Approval of Proposed 2022 Padres Sponsorship
Agreement
Recommendation:
Approve the proposed 2022 Padres sponsorship
agreement for the 2022 season.
Presenter:
Lee Friedman, Key Accounts Manager
23 Background
• To build brand recognition and trust,
SDCP’s marketing strategy includes
sponsorships/partnerships with local
institutions
• SDCP entered into sponsorship
agreement with Padres in August
2021: • Developed “Tonight’s Lights”
– SDCP a “Proud
Power Provider” to the SD Padres
• Included in-stadium advertising, banner ads,
email blasts and social media posts
• Suite night & Ticket Bank (donated to
Monarch School)
• ½ season cost, $60,000
24 Padres 2021 Season Metrics Recap
25 Padres 2021 Season Metrics Recap
26 Padres 2021 Season Metrics Recap
27 Padres 2021 Season Metrics Recap
28 Padres 2021 Season Metric Recap
29 Padres 2022 Sponsorship Terms
Full Season + Gameday Giveaway = $170,000
• Based on the performance of the 2021 ½ season sponsorship agreement, SDCP is recommending to enter into a full season sponsorship agreement maintaining the majority of terms from the prior season with the Padres with the following additions:
• 40 combined games of LED / Grandstand advertising (up from 12 games for ½ season) • June 8th Gameday Giveaway (Padres Player Hat – 35,000 hats) • On-site kiosk activation during the Gameday Giveaway
• Ability to host a press conference on the Gameday Giveaway • Additional social media posts including Padres’ promotion of those posts Not Included in 2022 Sponsorship Agreement: Ticket Bank ($2,500) 30 Gameday Giveaway
Padres Player Hat
• San Diego Community Power
will be the proud sponsor of the
Padres Player Hat (Player TBD)
• 35,000 units to be ordered (extra
units to be used at the discretion
of SDCP)
• Once “Player” is announced,
SDCP will promote, through its
own channels, the game-day
giveaway prior to June 8th
through its social media
channels and/or paid advertising
31 Item 15
Update on CEO Search Ad Hoc Committee Efforts
Recommendation:
Provide update on CEO Search Ad Hoc Committee
efforts
Presenter:
Director/Mayor Sotelo-Solis
32 Regular
Meeting
Agenda
Reports by Management and
General Counsel
Director Comments
Adjournment
33 Board of
Directors
Next Regular Meeting
March 24, 2022