Board of
Directors
Regular Meeting
November 17, 2022
Welcome
&
Call to
Order
Roll
Call
4 Karlee Mink
Portfolio Manager
Power Services
Sheena Tran
Senior Program
Manager
SDCP
Welcomes
You!
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
8 Consent
Agenda
1. Approval of Findings to Continue Holding
Remote/Teleconference Meetings Pursuant to
Assembly Bill 361
2. Approve Updated Legislative Policy
3. Approve Resolution 2022-22 Adopting the 2023
Board Meeting Schedule
4. Receive and File Treasurer’s Report for Fiscal Year-end Period Ending September 30, 2022
5. Receive and File Update on Back Office Operations
6. Receive and File Update on Regulatory and
Legislative Affairs
7. Receive and File Update on Marketing and Public
Relations
8. Receive and File Update on Community Advisory
Committee
9. Receive and File Update on the New Board Member
Orientation and New Board Member Handbook
9 Regular
Meeting
Agenda
Regular Agenda Items:
10. Approval of Amendment to the Chief Executive
Officer (CEO) Employment Agreement
11. Receive and File June 30, 2022 Fiscal Year-end
Audited Financial Statement
12. Approval of the Rate Development Policy
13. Appointment of Presiding Officer for December
2022 and January 2023 Board of Directors
14. Consider SDCP Actions Necessary to
Accelerate Achievement of 100% Renewable
Energy Portfolio (Continued to December 15th
Board Meeting)
15. Approval of Resolutions Recognizing Outgoing
and Former Directors
10 Item 10
Approval of Amendment to the Chief Executive Officer
(CEO) Employment Agreement
Recommendation:
Approve Amendment to the Chief Executive Officer (CEO)
Employment Agreement
Presenter: Ryan Baron, General Counsel
11 Item 11
Receive and File 6/30/22 Fiscal Year-End Audited
Financial Statement
Recommendation:
Receive and File June 30, 2022 Fiscal Year-End Audited
Financial Statement
Presenter: Dr. Eric Washington,
Chief Financial Officer
San Diego Community Power
Report to the Board of Directors
November 17, 2022
Introduction
• Brett Bradford, CPA
• Audit Partner
• 19 years in public accounting and performing audits of government entities
• Currently working with several CCA’s throughout California • Aliandra Schaffer
• Senior Associate
• 3 years in public accounting and performing audits of governments (CCA’s)
Results of current year audit:
• The 2022 audit is near completion. We expect to report the following:
• Unmodified opinion – Based on our audit, the financial statements are materially accurate.
• No significant deficiencies or material weakness in
internal control noted.
Audit of the year ended June 30, 2022
Financial Statements
Relative Roles & Responsibilities
• Management is responsible for preparing the Financial Statements and establishing a system of internal control.
• Auditor is responsible for auditing the Financial Statements • Considering risks of material misstatement in the Financial Statements
• Considering internal controls relevant to the Financial Statements • Performing tests of year-end balances based on risk assessment • Evaluating adequacy of disclosures
Risk Assessment for the year ended
June 30, 2022
Significant areas of focus
• Revenue recognition
• Accounts receivable and accrued revenue
• Test a sample of customer billings
• Relate total cash received during the year to revenue • Look at cash received subsequent to year-end and relate to A/R • Review revenue recognition through year-end and method for determining (accrued revenue)
• Cash and securities
• Confirmations sent to financial institutions
Risk Assessment for the year ended
June 30, 2022
Significant areas of focus
• Accrued Cost of Electricity
• Review subsequent bills from electricity providers and cash payments • Supplier Security Deposits
• Reviewed contracts and determined completeness of amounts recorded • Debt
• Confirmations sent to lender
• Financial Statement Note Disclosures – Complete and without bias Required Board Communications
• The significant accounting policies
adopted by SDCP throughout the
periods audited appear appropriate
and consistently applied.
• No alternative treatments of
accounting principles for material
items in the financial statements
have been discussed with
management.
Required Board Communications
(continued)
• We have not identified any
significant or unusual
transactions or applications of
accounting principles where a
lack of authoritative guidance
exists.
• We are not expecting to propose any
adjustments to the financial
statements.
• There have been no disagreements with management concerning the scope of our audit, the application of accounting principles, or the basis for management’s judgments on any significant matters.
• We have not encountered any difficulties in dealing with management during the performance of our audit.
Required Board Communications
(continued)
Brett Bradford: 707-577-1582
Aliandra Schaffer: 707-577-1535
Questions?
22 Item 11
Recommendation:
Receive and File June 30, 2022 Fiscal Year-End Audited
Financial Statement
23 Item 12
Approval of Rate Development Policy
Recommendation:
Approve the Rate Development Policy
Presenter: Lucas Utouh, Director of Data Analytics
and Account Services
24 To provide the framework for San Diego Community Power (SDCP) staff and its Board of Directors that ensures SDCP’s rate design and development process remains transparent, fiscally responsible and centered on the customer.
As a public not-for-profit agency, SDCP must set rates to recover costs associated with debt service, the purchase of power and operational costs at a minimum.
Purpose of the Rate Development Policy
25 SDCP’s rate setting objectives and priorities are as follows:
• Cost Recovery
• Reserves
• Rate competitiveness and Customer value
• Rate stability
• Equity among customers
• Rate structure simplicity and comparability
• Transparency
• Avoidance of cost shifting
• Cost of service
Rate Development Policy Objectives
26 Jan
2022
Feb
2022
May.
2022
June.
2022
Nov.
2022
Dec.
2022
Jan.
2023
Feb.
2023
SDG&E 2022
rates and PCIA
effective Jan. 1
SDCP Board
adopted 2022
rates
SDCP’s 2022
rates effective
Feb. 1. Phase 3
commenced
SDG&E
submitted
application for
its 2023 ERRA &
Electric Sales
Forecast
SDCP’s Phase 3
conclusion for
Non-NEM
customers
SDG&E rate
change
CPUC’s Final
Decision on
2023 ERRA &
Electric Sales
Forecast
Application
SDG&E’s
November ERRA
update
SDCP’s Rate
Development
Policy Review By
CAC and Board
and its adoption
.
Board/Committee
review of 2023
rate expectations
Board reviews &
adopts 2023
rates
SDCP’s 2023 rates
effective no later
than Feb. 15
SDG&E 2023
rates and PCIA
effective Jan. 1
SDCP’s 2022/2023 Rate Development Timeline
27 Item 12
Recommendation:
Approve the Rate Development Policy
28 Item 13
Appointment of Presiding Officer for December 2022
and January 2023 Board of Director’s Meetings
Recommendation:
Appoint Presiding Officer for December 2022 and January 2023 Board of Directors Meetings
Presenter: Ryan Baron, General Counsel
Report by
Chief
Executive
Officer
30 Business for Good Summit, 11/4
Caught up with our community partners at Mujures Brew House 31 Justice, Equity,
Diversity, Inclusion
SDCP Staff Training
32 United Lowrider Coalition
Show 11/5: Lowrider Event with
CAC Vice Chair Aida Castañeda
33 Key Team
Accomplishments
May – July 2022
1. Developed Mission, Vision, Values and 3-5 year
Strategic Goals
2. Focus & Alignment across Board, Staff & CAC
3. Dozens of Meet & Greets across the region
4. Team Building: Staffing Plan, Develop Full
Onboarding & Hiring Processes
5. Human Resource: HR Policies, Compliance,
Procedures & Benefits Improvement
6. Community Power Plan launch & outreach initiated
7. Ohm Connect Partnership
8. Completion of Founding Five Municipalities’
Residential Enrollment
34 Key Team
Accomplishments
Aug – Oct 2022
1. Mercer Salary Survey & Related Adjustments
2. Internal staff development with 10 new hires, SMART
Goals
3. Successful switch to PayChex & enhanced benefits
4. Clean Audit with greater than expected Reserve balance
5. Clean Power Plan Outreach intensified
6. Multiple Panel Presentations & Speeches
7. Leveraging & building partnerships
8. Managed Historic Heat Wave
9. CalCCA and Sacramento Leg/ Reg engagement
35 Key Team
Priorities
Nov 22 – Jan 23
1. Exploring New Funding Ops: IIJA, REN, IRA, and Grants
2. 4 New Hires, office space growth, performance plan
3. National City & Unincorporated SD Member Agency Enrollment
4. RFOs for new utility scale clean power
5. Annual Rate Setting
6. New Board Member Materials Development & Orientation
7. Deeper involvement on the CalCCA Board
8. Strategic, targeted approach to MarCom, Sponsorships, and Public Affairs
9. Exploration of ways to reduce overall power costs
10.Initiating Local DER development hire and strategic plan 36 FY 2023 Latest Hiring Plan
Position Calendar Year
Hire Quarter
In Budget – Y/N
Director, Public Affairs Q3 2022 Hired
Sr. Program Manager Q3 2022 Hired
Risk Manager Q3 2022 Y
Sr. Portfolio Manager - Power Q4 2022 Hired x2
Director, Human Resources Q4 2022 Hired
Portfolio Manager - Power Q4 2022 Hired x 3
Manager, Info Tech & Clean Incentives Q4 2022 In process, Y Database Engineer Q4 2022 Hired
Financial Analyst Q4 2022 Hired
Marketing Associate Q4 2022 Y
Sr. Director/COO - Operations Q1 2023 Y
Local Area Resource Developer Q1 2023 In process
Programs Manager - DAC-GT / CSGT Q1 2023 Hired
Load Forecaster / Data Analyst Q1 2023 Y
37 We Are (still)
Hiring!
We ARE or ARE SOON HIRING
for the following positions:
• Local Area Resource Developer
• IT Coordinator
• Sr. Marketing Manager
We recently HIRED the following
positions:
• Director of People (Jan start date)
• Portfolio Manager, Power Team
Recognition
of Outgoing
Board
Members
39 Item 15
Approval of Resolutions Recognizing Outgoing and
Former Directors
Recommendation:
Approve Resolutions 2022-14; 2022-15; 2022-16; 2022-17; 2022-18; 2022-19 recognizing Chair Mosca, Vice Chair
Padilla, Director Baber, Director Dedina and former
Director Montgomery-Steppe for their service.
Presenter: Lee Friedman, Senior Manager
Strategic Partnerships
40 Councilmember
Monica Montgomery
Steppe
41 Mayor Serge
Dedina
42 Mayor
Alejandra
Sotelo-Solis
43 Councilmember
Bill Baber
44 Councilmember
Steve Padilla
45 Deputy Mayor
Joe Mosca
Report by
General
Counsel
Director
Comments
Adjournment
December 15, 2022
Next Regular
Board Meeting