Silicon Valley Clean Energy Authority
Board of Directors Meeting
Wednesday, December 13, 2023
7:00 pm
Cupertino Community Hall
10350 Torre Avenue
Cupertino, CA
MEETING MINUTES
Call to Order:
Chair Tyson called the meeting to order at 7:03 p.m.
Roll Call
Present:
George Tyson (Chair), Los Altos Hills
Tina Walia (Vice Chair), Saratoga
Elliot Scozzola, Campbell
Sheila Mohan, Cupertino
Zach Hilton, Gilroy
Sally Meadows, Los Altos
Rob Rennie, Los Gatos
Evelyn Chua, Milpitas
Bryan Mekechuk, Monte Sereno
Yvonne Martinez Beltran, Morgan Hill
Margaret Abe-Koga, Mountain View (arrived at 7:44 p.m.) Larry Klein, Sunnyvale
Otto Lee, Santa Clara County
Absent:
None
Public Comment on Matters Not Listed on the Agenda
No speakers.
Consent Calendar
There were no questions or comments from the Board; there were no requests from the public to speak on any matter on the Consent Calendar.
MOTION: Director Martinez Beltran moved and Director Mekechuk seconded the motion to approve the Consent Calendar, Items 1a through 1m.
The motion carried with Director Abe-Koga absent.
DocuSign Envelope ID: 44CF89E5-1037-43B3-ABD5-81A8FF447071
1a) Approve Minutes of the November 8, 2023, Board of Directors Meeting 1b) Receive October 2023 Treasurer Report
1c) Approve Cancellation of July 10, 2024 Board of Directors Meeting and Receive 2024 Board of Directors Regular Meeting Schedule
1d) Authorize the Chief Executive Officer to Execute a Five-Year Agreement with the Sacramento Municipal Utility District for Program Administration Support for Decarbonization Programs 1e) Authorize the Chief Executive Officer to Execute a Five-Year Agreement with AIQUEOUS/Energy Orbit for Programs Portfolio Management Tool Software and Support 1f) Authorize the Chief Executive Officer to Execute Service Agreements with 1) Arup; 2) Evergreen Economics; and 3) Opinion Dynamics for Data Analytics Support Services 1g) Authorize the Chief Executive Officer to Execute an Agreement with Energy and Environmental Economics (E3) for Long-term Clean Energy Pathways Portfolio Analysis 1h) Approve Amendments to SVCE Financial Policy 7 – Purchasing Card Policy 1i) Approve Plan to Delay Implementation of Net Billing Tariff (Solar Billing Plan, NEM3) in Alignment with PG&E Implementation Delays
1j) Executive Committee Report
1k) Finance and Administration Committee Report
1l) California Community Power Report
1m) Audit Committee Report
Regular Calendar
2) CEO Report (Discussion)
CEO Balachandran provided the CEO Report, which included the following:
1) Introductions to the following new employees:
a. Mia Yancich, Electrification Fellow
b. Sunny Zhang, Marketing Specialist
c. Kathy Chai, Senior Financial Analyst
d. Shawn Orgel-Olson, Program Marketing Manager
All provided brief welcome comments.
2) A thank you to board members for approving the Consent Calendar, which included several contracts that will build capacity for decarbonization efforts. 3) Two highlights:
a. Announcement that the City of Mountain View received an “A” score for its sustainability efforts and commitment to environmental transparency from the Carbon Disclosure Project;
b. City of Morgan Hill voted 5-0 to keep their gas ban in place, with a thank you to Director Martinez Beltran for her leadership and support.
4) An update on the new CEO transition, noting incoming CEO Monica Padilla was in the process of meeting with all staff members for one-on-one meetings, with city manager and board member meetings to follow in January and February.
DocuSign Envelope ID: 44CF89E5-1037-43B3-ABD5-81A8FF447071
Chair Tyson opened Public Comment.
No speakers.
Chair Tyson closed Public Comment.
3) Budget Update, 2024 Customer Rate Setting, and Additional Budget Funding Items (Action) Amrit Singh, CFO and Director of Finance and Administration, presented proposed new customer generation rate discounts, an adjusted fiscal year 2023-2024 operating budget, and a request for the Board of Directors to approve a rollover of $10.125 million to the Program Funds from reserves.
The presentation included the following:
• A recap of assumptions used in setting the adopted budget and an update on the budget forecast using the recent PG&E Rate forecast,
• Comparison of the adopted and updated Budget,
• An updated reserve projection,
• Information on additional funding items, and
• Information on accounting true-up of programs fund balance.
Vice Chair Walia shared comments on staff’s recommendation on behalf of the Executive Committee as the Committee Chair; Director Meadows summarized comments from the Finance and Administration Committee as the Committee Vice Chair.
Staff responded to board member questions and comments on rate options and past rate decisions, days of cash on hand targets, clarification on the true-up of program dollars, and the proposed amended budget.
Chair Tyson opened Public Comment.
Bruce Karney spoke to the following:
• Expressed disappointment that there had not been information in the presentation or conversation of the past discussion at the November Board of Directors meeting on the difficulty in procuring clean energy and the cost associated with remaining 100% carbon-free. • Commented CCAs typically have “Community”, “Choice”, or “Clean” in their names; being that SVCE has chosen the word “Clean”, it is critical to do everything possible to continue to be clean. • A reminder on the subsidy approved last month for GreenPrime that when you have a subsidy it is very hard to unwind it.
• His belief that the board is over emphasizing its understanding of how decisions made by the Board of Directors affect the customer given the complexity of rates and bill charges; and • A suggestion to have the board meeting after the CPUC meeting next year and not the day before.
Chair Tyson closed Public Comment.
MOTION: Director Mekechuk moved and Director Chua seconded the motion to adopt Resolution 2023-20:
1) Authorizing the CEO to implement SVCE generation rate changes to establish a 4 % discount to PG&E’s applicable generation rates when PG&E’s updated rates are implemented, expected to be January 1, 2024, or after allocation of the sufficient time window for implementing new generation rates in SVCE’s billing system, expected to be within three weeks of PG&E’s release of the new 2024 rates 2) Adopting the adjusted fiscal year 2023-2024 operating budget that projects depositing $73.8 million into the reserves, considering the above increase in customer discount; updated revenue, power supply, and interest-earning forecasts; and the following additional allocations”
a) $1.16 million towards bill credits for CARE/FERA customers, b) $20 million towards the purchase of an SVCE office building, and DocuSign Envelope ID: 44CF89E5-1037-43B3-ABD5-81A8FF447071
c) An additional $20 million to the Programs Fund, which includes grants to cities’ decarbonization programs.
3) Authorize previously budget-allocated but not explicitly approved rollover of $10.125 million to the Program Funds from reserves
The motion carried unanimously with all board members present. 4) Approve Formation of Transition Ad Hoc Committee (Action) CEO Balachandran presented the recommendation to create an Ad Hoc Transition Committee to help with the new CEO transition, noting the Executive Committee was in support with the clarification that this committee would not discuss policy issues that would be typically covered by the Executive, Finance and Administration, or Audit Committees. The proposed committee would be made up of Chair Tyson, Vice Chair Walia, and Director Rennie.
Chair Tyson opened Public Comment.
No speakers.
Chair Tyson closed Public Comment.
MOTION: Director Klein moved and Director Martinez Beltran seconded the motion to approve the creation of the Transition Ad Hoc Committee.
The motion carried unanimously with all board members present. 5) Authorize the Chief Executive Officer to Execute a Five-year Agreement with the Association for Energy Affordability Inc. for Multifamily Electrification Program Design and Implementation Support Services (Action)
Nupur Hiremath, Manager of Community Programs, and Leanna Huynh, Senior Community Programs Specialist, provided a presentation recommending the Board of Directors authorize the CEO to execute an agreement for implementation support services for SVCE’s multifamily residential electrification program.
Staff responded to board member questions and comments regarding the target market, scalability, efficiency of the program, tenant protections, electric vehicle infrastructure and parking ports, additional funding, electrification of units and energy efficiency upgrades, diversity of buildings, building retrofits and connecting with architects, and reaching a diverse demographic area.
Chair Tyson opened Public Comment.
No speakers.
Chair Tyson closed Public Comment.
MOTION: Director Klein moved and Director Lee seconded the motion to authorize the CEO to execute an agreement with the Association for Energy Affordability Inc. (“AEA”) for program design and implementation support services for SVCE’s multifamily residential electrification program for a period of five years for an amount not to exceed $11 million.
The motion carried unanimously with all board members present. 6) 2024 SVCE Board Elections Information (Discussion)
Andrea Pizano, Sr. Executive Assistant and Board Clerk, presented information on the upcoming board elections for the appointment of Chair, Vice Chair, Executive Committee and other SVCE committees.
Chair Tyson opened Public Comment.
DocuSign Envelope ID: 44CF89E5-1037-43B3-ABD5-81A8FF447071
No speakers.
Chair Tyson closed Public Comment.
Board Member Announcements and Future Agenda Items
Director Martinez Beltran thanked SVCE for sponsoring the City of Morgan Hill’s Annual Holiday Posada.
Director Chua requested the PowerPoint presentations from SVCE’s Reflect & Recharge event be distributed.
Director Hilton thanked SVCE for sponsoring the City of Gilroy’s La Ofrenda festival, and contributing to the Marigold Youth Scholarship fund for first generation college students.
Director Abe-Koga announced the Cities Association of Santa Clara County Holiday dinner would occur 12/14/23 at 6:00p.m. in Mountain View, where CEO Balachandran would be honored.
Director Mekechuk complimented SVCE staff for driving the SVCE all-electric truck in the Los Gatos children’s holiday parade towing the City of Monte Sereno’s float.
Director Lee announced his attendance to COP28, noting we are thinking globally and acting locally.
Adjourn
Chair Tyson adjourned the meeting at 9:03 p.m.
ATTEST:
_____________________________
Andrea Pizano, Board Secretary
DocuSign Envelope ID: 44CF89E5-1037-43B3-ABD5-81A8FF447071