Board of
Directors
Regular Meeting
September 28, 2023
Welcome
&
Call to
Order
Roll
Call
4 Land
Acknowledgement
Warm
Welcome
to our
New
Hires!
Emily Fisher
Senior Program Manager
Adana Martinez
Public Outreach Coordinator
Jushaun Jamieson
Public Outreach Coordinator
Items to
be Added,
Withdrawn
or
Reordered
on the
Agenda
Public
Comment
for Items
NOT
on the
Agenda
9 Consent
Agenda
1. Approval of August 24, 2023 Meeting Minutes
2. Receive and File Treasurer’s Report for Period Ending June 30, 2023
3. Receive and File Treasurer’s Report for Period Ending July 31, 2023
4. Receive and File Update on Programs
5. Receive and File Update on Power Services
6. Receive and File Update on Human Resources
7. Receive and File Update on Customer Operations
8. Receive and File Update on Marketing and Public Relations
9. Receive and File Update on Community Advisory Committee
10. Receive and File Update on Legislative and Regulatory Affairs
11. Approve Resolution 2023-XX Adopting the 2024 Board Meeting Schedule
12. Approval of Updated Letter of Intent with SDEEC LLC (dba San Diego Energy Equity Campus at Valencia Park) for Potential Lease Agreement
13. Approval of Sublease Agreement with Corelation, Inc.
14. Approval of Third Amendment to Professional Services Agreement with Brentech Inc. for up to $112,360 for Computer and Information Technology Services through June 30, 2024.
15. Approval of the Professional Services Agreement with San Diego Foundation for up to $450,000 for Program Administration Services for the Community Grant Program through July 30, 2027.
Public
Comment
for
Consent
Agenda
11 Regular
Meeting
Agenda
16.Approval of Recommendation of
In-House General Counsel
17.Approval of Resource Adequacy
Agreements with EnerSmart
12 Item 16
Approval of Recommendation of in-house General
Counsel
Recommendation:
1. Approve General Counsel job description
2. Amend salary schedule to include General Counsel and approve salary range
3. Discuss Recruitment Process and Consider Appointing Ad-Hoc Recruitment Committee
Presenter:
Karin Burns, Chief Executive Officer
13 General Counsel Recommendation
Board Approval Recruitment SDCP Interviews Ad-Hoc Committee Approve General Counsel
job description
Amend salary schedule to
include General Counsel
Approve salary range at pay
grade 18
Consider Appointing Ad-Hoc Recruitment Committee
Engage Futura Energy
Group, LLC
Extensive experience in
recruiting in energy sector
Several successful
recruitments for SDCP
First-round screening
Second-round in person
group interview
Second-round in person
executive team interview
Final-round interview
Panel recommendation:
• Board members (3)
• Chief Executive Officer
• Chief Operating or Chief
Financial Officer
14 General Counsel Recommendation
1.03M
Annualized
Legal Spending
8/1/22 –7/30/23
Legal Spend
General Counsel
Regulatory
Compliance
Financial/Power
None
SDCP In-House
Legal Team
Peer CCAs
As of September 2023
$278K
$340K
$217K
$188K
SDCP (FY 2024 Budget)
EBCE
PCE
Total amount of
annualized spending
across legal practices.
SDCP expects to offset $278K in
annualized General Counsel
spending, budgeted at $450K in FY24.
MCE
CPA
$2.2M
$3.5M
$1.6M
$1.5M
$1.1M
0 staff
1 staff
3 staff
4 staff
3 staff
Budgeted: Most CCAs have at least
1 dedicated in-house legal staff and
have less budgeted legal spending.
Marin Clean
Energy -General Counsel
-Assoc Gen Counsel
-Legal Counsel
-Sr Policy Counsel
Peninsula
Clean
Energy -General Counsel
-Assoc Gen Counsel
-Managing Counsel,
Policy
Clean Power
Alliance -General Counsel
-Assistant Gen
Counsel
-Paralegal
15 General Counsel Recommendation
Full-time dedication to organization
Additional organizational leadership
Best practice from peer CCAs
Likely cost neutral to the agency
Aligned objective to support and protect agency
Part of executive team leadership
Increased staff productivity and efficiency
Recommendation to
In-House
General
Counsel
Strategic support to executive team
Public
Comment
for Item 16
17 Item 16
Recommendation:
1. Approve General Counsel job description
2. Amend salary schedule to include General Counsel and approve salary range
3. Discuss Recruitment Process and Consider Appointing Ad-Hoc Recruitment Committee
18 Item 17
Approval of Resource Adequacy Agreements with
EnerSmart
Recommendation:
Approve the five proposed 10-year Resource Adequacy Agreements with EnerSmart’s subsidiaries, set up as LLCs for each project, for a total purchase of 13.5 MW of Resource Adequacy and authorize the CEO to execute the agreements (EnerSmart Alpine BESS LLC 3 MW, EnerSmart El Cajon BESS LLC 4.5 MW, EnerSmart Imperial Beach BESS LLC 3 MW, EnerSmart Los Coches BESS LLC 1.5 MW, EnerSmart Mesa Heights BESS LLC 1.5 MW) Presenter:
Kenny Key – Senior Contract Manager, Power Services
19 SDCP Local Procurement Targets
• SDCP has a goal of 600 MW of local
capacity by 2035
• EnerSmart has a portfolio of projects in
San Diego County that in total could
represent over 160MW of local stand- alone storage
• SDCP has contracted for resource
adequacy for one project to date, and
recommends contracting for resource
adequacy from an additional five projects
20 EnerSmart Resource Adequacy Agreements: Overview
• Submitted under SDCP’s local RFI solicitation
• Total of 27 MW/54 MWh 2-hour lithium-ion battery energy systems providing SDCP with 13.5 MW of local RA
• Project locations: El Cajon, Mesa Heights, Imperial Beach, Los Coches, & Alpine 9 / 18
MW / MWh
3 / 6
MW / MWh
6 / 12
MW / MWh
3 / 6
MW / MWh
6 / 12
MW / MWh
21 EnerSmart Resource Adequacy Agreements: Key Terms
• Product: Local Resource Adequacy
• Fixed pricing for 10-year term
• Guaranteed Initial Resource Adequacy Delivery Dates:
• Projects range from 9/15/24 to 2/15/25
• Resource Adequacy would help with SDCP’s internal local procurement targets as well as external resource adequacy and mid-term reliability compliance requirements
• SDCP receives financial compensation for failure to meet certain performance requirements
22 EnerSmart Resource Adequacy Agreements: Staff Analysis The EnerSmart projects will contribute to SDCP’s 2035 local capacity target With commercial operations commencing in 2024-2025, and FCDS expected in early 2024, the projects could contribute to SDCP’s compliance requirements for mid-term reliability in 2025.
Pricing is competitive with comparable product offerings received from SDCP’s recent RFOs
As a local facility developed by a local developer, this project is aligned with SDCP's goals to increase local reliability from clean energy resources and investment in our community
SDCP can help support new build resources in our local communities 23 EnerSmart Resource Adequacy Agreements: Workforce
Development and Community Benefits
• EnerSmart employs local labor
• 100% of labor from California
• Local San Diego labor used when possible
• All projects utilize prevailing wage
• EnerSmart will use union labor for the electrical portion of the projects, representing ~50% of the labor for each project
• EnerSmart projects benefit the community by providing clean energy to the grid when it's needed the most, helping to reduce the local risk of brownouts and blackouts.
• EnerSmart provides local storage reducing the need for additional transmission to import energy
Public
Comment
for Item 17
25 Item 17
Recommendation:
Approve the five proposed 10-year Resource Adequacy Agreements with EnerSmart’s subsidiaries, set up as LLCs for each project, for a total purchase of 13.5 MW of Resource Adequacy and authorize the CEO to execute the agreements (EnerSmart Alpine BESS LLC 3 MW, EnerSmart El Cajon BESS LLC 4.5 MW, EnerSmart Imperial Beach BESS LLC 3 MW, EnerSmart Los Coches BESS LLC 1.5 MW,
EnerSmart Mesa Heights BESS LLC 1.5 MW)
Report by
Chief
Executive
Officer
We Are (Still) Hiring!
Open Positions
• Director of Data Analytics and IT
• Account Services Analyst
• Risk Manager
• Contract Management Analyst
• Compliance Analyst
New Employee
Onboarding
Christopher Stephens,
Procurement Manager, and
Ashley Rodriquez, Local
Government Affairs
Manager, start Oct. 4!
28 29
Report by
General
Counsel
Director
Comments
Adjournment
Next Regular
Board of Directors Meeting
October 26, 2023