VCE 4/14/22 Board Meeting Agenda Page 1 of 3
Regular Meeting of the Valley Clean Energy Alliance
Board of Directors
Thursday, April 14, 2022 at 5 p.m.
Via Video/Teleconference
Pursuant to Assembly Bill 361 (AB 361), legislative bodies may meet remotely without listing the location of each remote attendee, posting agendas at each remote location, or allowing the public to access each location, with the adoption of certain findings. The Board of Directors found that the local health official recommended measures to promote social distancing and authorized the continuation of remote meetings for the foreseeable future. Any interested member of the public who wishes to listen in should join this meeting via teleconferencing as set forth below.
Please note that the numerical order of items is for convenience of reference. Items may be taken out of order on the request of any Board member with the concurrence of the Board. Staff recommendations are advisory to the Board. The Board may take any action it deems appropriate on any item on the agenda even if it varies from the staff recommendation.
Members of the public who wish to listen to the Board of Director’s meeting may do so with the video/teleconferencing call-in number and meeting ID code. Video/teleconference information below to join meeting:
Join meeting via Zoom:
a. From a PC, Mac, iPad, iPhone, or Android device with high-speed internet. (If your device does not have audio, please also join by phone.) https://us02web.zoom.us/j/85110768299
Meeting ID: 851 1076 8299
b. By phone
One tap mobile:
+1-669-900-9128,, 85110768299# US
+1-346-248-7799,, 85110768299# US
Dial:
+1-669-900-9128 US
+1-346-248-7799 US
Meeting ID: 851 1076 8299
Public comments may be submitted electronically or during the meeting. Instructions on how to submit your public comments can be found in the PUBLIC PARTICIPATION note at the end of this agenda.
Board Members: Jesse Loren, (Chair/City of Winters), Tom Stallard (Vice Chair/City Woodland), Don Saylor (Yolo County), Dan Carson (City of Davis), Wade Cowan (City of Winters), Mayra Vega (City of Woodland), Gary Sandy (Yolo County), and Lucas Frerichs (City of Davis) 1 VCE 4/14/22 Board Meeting Agenda Page 2 of 3
5:00 p.m. Call to Order
1. Welcome
2. Public Comment: This item is reserved for persons wishing to address the Board on any VCE-related matters that are not otherwise on this meeting agenda or are listed on the Consent portion of the agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called. As with all public comment, members of the public who wish to address the Board are customarily limited to two minutes per speaker, electronically submitted comments should be limited to approximately 300 words. Comments that are longer than 300 words will only be read for two minutes. All electronically submitted comments, whether read in their entirety or not, will be posted to the VCE website within 24 hours of the conclusion of the meeting. See below under PUBLIC PARTICIPATION on how to provide your public comment.
CONSENT AGENDA
3. Renew authorization of remote public meetings as authorized by Assembly Bill 361.
4. Approve March 10, 2022 Board meeting Minutes.
5. Receive 2022 Long Range Calendar.
6. Receive Financial Updates – February 28, 2022 (unaudited) financial statements.
7. Receive Legislative update.
8. Receive April 6, 2022 Regulatory update provided by Keyes & Fox.
9. Receive quarterly Customer Enrollment update.
10. Receive Community Advisory Committee March 24, 2022 meeting summary.
11. Approve agreement with TeMix, Inc. to provide implementation support services for the AgFIT (Flexible Irrigation Technology) dynamic pricing pilot program.
12. Receive SACOG Grant – Electrify Yolo Project update.
13. Approve Employee Handbook updates.
14. Approve process for selection of Community Advisory Committee At-Large seats.
REGULAR AGENDA
15. Presentation on OhmConnect program.
16. Approve participation in and authorize VCE Executive Officer to execute documents associated with VCE participating in the CC Power long duration storage project: Goal Line.
17. Receive and accept audited financial statements for the period of July 1, 2021 to December 31, 2021 presented by James Marta & Company.
18. Board Member and Staff Announcements: Action items and reports from members of the Board, including announcements, AB1234 reporting of meetings attended by Board Members of VCEA expense, questions to be referred to staff, future agenda items, and reports on meetings and information which would be of interest to the Board or the public.
19. Adjournment: The next regular meeting is scheduled for May 12, 2022 at 5 p.m. via video/teleconference.
PUBLIC PARTICIPATION INSTRUCTIONS FOR VALLEY CLEAN ENERGY BOARD OF DIRECTORS SPECIAL MEETING ON THURSDAY, APRIL 14, 2022 AT 5:00 P.M.:
PUBLIC PARTICIPATION. Public participation for this meeting will be done electronically via e-mail and during the meeting as described below.
Public participation via e-mail: If you have anything that you wish to be distributed to the Board and included in the official record, please e-mail it to VCE staff at 2 VCE 4/14/22 Board Meeting Agenda Page 3 of 3
[email protected]. If information is received by 3:00 p.m. on the day of the Board meeting it will be e-mailed to the Board members and other staff prior to the meeting. If it is received after 3:00 p.m. the information will be distributed after the meeting, but within 24 hours of the conclusion of the meeting.
Verbal public participation during the meeting: If participating during the meeting, there are two (2) ways for the public to provide verbal comments:
1) If you are attending by computer, activate the “participants” icon at the bottom of your screen, then raise your hand (hand clap icon) under “reactions”. 2) If you are attending by phone only, you will need to press *9 to raise your hand. When called upon, please press *6 to unmute your microphone.
VCE staff will acknowledge that you have a public comment to make during the item and will call upon you to make your verbal comment.
Public Comments: If you wish to make a public comment at this meeting, please e-mail your public comment to [email protected] or notifying the host as described above. Written public comments that do not exceed 300 words will be read by the VCE Board Clerk, or other assigned VCE staff, to the Committee and the public during the meeting subject to the usual time limit for public comments [two (2) minutes]. General written public comments will be read during Item 3, Public Comment. Written public comment on individual agenda items should include the item number in the “Subject” line for the e-mail and the Clerk will read the comment during the item. Items read cannot exceed 300 words or approximately two (2) minutes in length. All written comments received will be posted to the VCE website. E-mail comments received after the item is called will be distributed to the Board and posted on the VCE website so long as they are received by the end of the meeting.
Public records that relate to any item on the open session agenda for a regular or special Board meeting are available for public review on the VCE website. Records that are distributed to the Board by VCE staff less than 72 hours prior to the meeting will be posted to the VCE website at the same time they are distributed to all members, or a majority of the members of the Board. Questions regarding VCE public records related to the meeting should be directed to Board Clerk Alisa Lembke at (530) 446-2750 or [email protected]. The Valley Clean Energy website is located at: https://valleycleanenergy.org/board-meetings/.
Accommodations for Persons with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact Alisa Lembke, VCE Board Clerk/Administrative Analyst, as soon as possible and preferably at least two (2) working days before the meeting at (530) 446-2754 or [email protected]. 3 Item 3
VALLEY CLEAN ENERGY ALLIANCE
Staff Report - Item 3
____________________________________________________________________________________ TO: Board of Directors
FROM: Mitch Sears, Interim General Manager
Alisa Lembke, Board Clerk/Administrative Analyst
SUBJECT: Renew Authorization to continue Remote Public Meetings as authorized by Assembly Bill 361
DATE: April 14, 2022
Recommendation
VCE Board renew authorization for remote (video/teleconference) meetings, including any standing or future committee(s) meetings and Community Advisory Committee meetings, by finding:
1. Pursuant to Assembly Bill 361 (AB 361), that, (a) the COVID-19 pandemic state of emergency is ongoing, and (b) local officials continue to recommend measures to promote social distancing.
Background/Summary of AB 361
Pursuant to Government Code Section 54953(b)(3) legislative bodies may meet by “teleconference” only if the agenda lists each location a member remotely accesses a meeting from, the agenda is posted at all remote locations, and the public may access any of the remote locations. Additionally, a quorum of the legislative body must be within the legislative body’s jurisdiction.
Due to the COVID-19 pandemic, the Governor issued Executive Order N-29-20, suspending certain sections of the Brown Act. Pursuant to the Executive Order, legislative bodies no longer needed to list the location of each remote attendee, post agendas at each remote locations, or allow the public to access each location. Further, a quorum of the legislative body does not need to be within the legislative body’s jurisdiction. After several extensions, Executive Order N-29-20 expired on September 30, 2021.
On September 16, 2021, the Governor signed AB 361, which kept some of the provisions of Executive Order N-29-20. Pursuant to Government Code Section 54953(e), legislative bodies may meet remotely and do not need to list the location of each remote attendee, post agendas at each remote locations, or allow the public to access each location.
4 However, legislative bodies must first find: (1) the legislative body is meeting during a state of emergency and determine by majority vote that meeting in person would present an imminent risk to the health or safety of attendees; or (2) state or local health officials impose or recommend social distancing measures.
Government Code Section 54953(e)(1). The legislative body must make the required findings every 30 days, until the end of the state of emergency or recommended or required social distancing. Government Code Section 54953(e)(3). On January 1, 2024, Government Code Section 54953(e) is repealed.
The recommended action is required by AB 361 to continue meeting remotely during a declared state of emergency. It includes a finding that social distancing measures continue to be recommended, consistent with the most recent memorandum from the Yolo County Health Officer dated March 1, 2022 (attached). This finding (or a finding that meeting in person would present imminent health and safety risks) is required on a monthly basis. As the Yolo County Health Officer’s memorandum notes, COVID-19 rates continue to decline and her remote meeting recommendation may not be renewed in April. The VCE Board retains discretion under AB 361 to independently determine that remote meetings should continue because meeting in person would present imminent risks to the health and safety of attendees.
Staff continues to monitor the situation as part of our emergency operations efforts and will return to the Board every thirty (30) days or as needed with additional recommendations related to the conduct of public meetings.
Attachments:
1. Yolo County Health Officer memorandum dated 3/1/2022 to Board of Supervisors 5 COUNTY OF YOLO
Health and Human Services Agency Karen Larsen, LM F T
Directo r
Aimee Sisson, MD, MPH MAILING ADDRESS
137 N. Cottonwood Street Woodland, CA 95695
www.yolocounty.org Health Officer
D a v i s W e s t S a c r a m e n to W i n t e r s W o o d la n d 600 A Street
Davis, CA 95616
Mental Health (530) 757-5530
500 Jefferson Boulevard
West Sacramento, CA95605
Service Center (916) 375-6200
Mental Health (916) 375-6350
Public Health (916) 375-6380
111 East Grant Avenue
Winters, CA 95694
Service Center (530) 406-4444
25 & 137 N. Cottonwood Street
Woodland, CA 95695
Service Center (530) 661-2750
Mental Health (530) 666-8630
Public Health (530) 666-8645
Date: March 1, 2022
To: All Yolo County Boards and Commissions
From: Dr. Aimee Sisson, Health Officer
Subject: Remote Public Meetings
Since September 2021, I have issued monthly memoranda recommending remote meetings. The case rate in Yolo County has declined to 19 cases per 100,000 per day from a peak of 244 in January, but it continues to represent high community transmission. In the context of high community transmission, I recommend meetings continue to be held remotely whenever possible. I am re-issuing the earlier memorandum with updated COVID-19 case rate data.
In light of the ongoing public health emergency related to COVID-19 and the high level of community transmission of the virus that causes COVID-19, the Yolo County Public Health Officer recommends that public bodies continue to meet remotely to the extent possible. Board and Commissions can utilize the provisions of newly enacted AB 361 to maintain remote meetings under the Ralph M. Brown Act and similar laws.
Among other reasons, the grounds for the remote meeting recommendation include:
• The continued threat of COVID-19 to the community. As of March 1, 2022, the case rate is 19 cases per 100,000 residents per day. This case rate is considered “High” under the Centers for Disease Control and Prevention’s (CDC) framework for assessing community COVID-19 transmission; and
• The unique characteristics of public governmental meetings, including the increased mixing associated with bringing together people from across the community, the need to enable those who are immunocompromised or unvaccinated to be able to safely continue to fully participate in public governmental meetings, and the challenges of ensuring compliance with safety requirements and recommendations at such meetings.
Meetings that cannot feasibly be held virtually should be held outdoors when possible, or indoors only in small groups with face coverings, maximal physical distance between participants, use of a portable HEPA filter (unless comparable filtration is provided through facility HVAC systems), and shortened meeting times. 6
This recommendation is based upon current conditions. Given the ongoing decrease in case rates, with community transmission soon expected to drop below the threshold for high community transmission into substantial community transmission (<14 cases per 100,000 per day), this will likely be the final monthly memorandum recommending remote public meetings unless the COVID-19 situation unexpectedly worsens. Boards and Commissions should consider preparations for in-person or hybrid meetings beginning in April, except to the extent they may independently determine—as AB 361 allows—that meeting in person would present “imminent risks to the health or safety of attendees.”
7 Item 4
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 4
TO: Board of Directors
FROM: Alisa Lembke, Board Clerk / Administrative Analyst SUBJECT: Approval of Minutes from March 10, 2022 meeting DATE: April 14, 2022
RECOMMENDATION
Receive, review and approve the attached March 10, 2022 meeting Minutes.
8 VCEA Minutes March 10, 2022 Board Meeting via Webinar Page 1 of 4
MINUTES OF THE VALLEY CLEAN ENERGY ALLIANCE
BOARD OF DIRECTORS REGULAR MEETING
THURSDAY, MARCH 10, 2022
The Board of Directors of the Valley Clean Energy Alliance duly noticed their regular meeting scheduled for Thursday, March 10, 2022 at 5:00 p.m., to be held via Zoom webinar. Chair Jesse Loren established that there was a quorum present and began the meeting at 5:02 p.m.
Board Members Present: Jesse Loren, Tom Stallard, Gary Sandy (arrived at 5:13 p.m.), Dan Carson, Wade Cowan, Mayra Vega, Lucas Frerichs
Members Absent: Don Saylor
Welcome Chair Loren welcomed everyone.
Public Comment –
General and
Consent
The Board Clerk informed those present that there were no verbal or written public comments.
Approval of
Consent Agenda /
Resolution 2022-
007 through
Resolution 2022-
009
Chair Loren announced that on the Consent agenda is item 15, the approval of an employment agreement with Mitch Sears and appointment as Executive Officer, and, General Legal Counsel is required to make an announcement under the Brown Act. VCE’s General Counsel Inder Khalsa of Richards, Watson & Gershon verbally announced the salary of the Executive Officer will be $240,000 with benefits similar to those offered to other employees, with the addition of 120 hours of time paid off at the commencement of employment; reimbursement of out of pocket expenses; and, in the event that the Board terminates the Executive Officer “without cause” there would be a 3 month salary severance payment.
Chair Loren asked if the Board would like to remove any items from the Consent agenda or discuss any items. No items were pulled. Director Dan Carson had a correction to item 4 – February 10, 2022 meeting Minutes, on page 4 which should read “ parity” with PG&E rates not “parody”. Also, Director Carson would like to note that item 15, the approval of the Executive Officer agreement, is a very significant step forward for VCE as an organization.
Motion made by Director Lucas Frerichs to approve the consent agenda with the correction to item 4 – February 10, 2022 meeting Minutes, seconded by Director Wade Cowan. Motion passed by the following vote:
AYES: Loren, Stallard, Carson, Cowan, Vega, Frerichs
9 VCEA Minutes March 10, 2022 Board Meeting via Webinar Page 2 of 4 NOES: None
ABSENT: Sandy, Saylor
ABSTAIN: None
The following items were:
3. Authorized to continue remote public meetings as authorized by Assembly Bill 361;
4. Approved February 10, 2022 Board special meeting Minutes with a correction on page 4 from “parody” to “parity”;
5. 2022 Long Range Calendar;
6. Received January 31, 2022 (unaudited) financial statement;
7. Received Legislative update provided by Pacific Policy Group;
8. Received March 2, 2022 Regulatory update provided by Keyes & Fox;
9. Received March 2, 2022 Customer Enrollment update;
10. Received Community Advisory Committee February 24, 2022 meeting summary and copies of 2022 Task Group Charges;
11. Received Bi-annual Enterprise Risk Management Report;
12. Approved agreement with Polaris Inc. to provided implementation support services for the AgFIT (Flexible Irrigation Technology) dynamic pri9cing pilot program as Resolution 2022-007;
13. Approved legislative positions: 1) support AB 1814 (Grayson) Transportation Electrification Funds, 2) support AB 1944 (Lee) Local Government, open and public meetings; and, oppose SB 1287 (Bradford) Electric service providers and CCAs, financial security requirements;
14. Approved Valley Clean Energy Collections Policy as Resolution 2022-008; and,
15. Approved Employment Agreement between VCE and Mitch Sears and appointment of Executive Officer as Resolution 2022-009.
As mentioned above, there were no verbal or written public comments on the Consent agenda items.
Gary Sandy arrived at 5:13 p.m.
Item 16: Approve
amendment and
restated credit
agreement with
River City Bank /
Resolution 2022-
010
VCE Staff Edward Burnham summarized the staff report by reviewing slides.
There were no verbal or written public comments. A few questions were asked by the Board.
Director Carson made a motion to:
1. Adopt a resolution approving terms for an Amended and Restated Credit Agreement with River City Bank, including a revolving line of credit not to exceed $11,000,000 and term loan for approximately $1.1M.
2. Authorize the Interim General Manager to conduct any final negotiations 10 VCEA Minutes March 10, 2022 Board Meeting via Webinar Page 3 of 4 and implement the approval, sign all necessary documents, and ratify past actions related to the two-year Amended and Restated Credit Agreement with River City Bank.
This motion was seconded by Chair Loren. Motion passed as Resolution 2022-010 by the following vote:
AYES: Loren, Stallard, Carson, Cowan, Vega, Frerichs, Sandy NOES: None
ABSENT: Saylor
ABSTAIN: None
Item 17: Approve
Time of Use (TOU)
Bill Protection
customer
program.
VCE Staff Rebecca Boyles summarized the staff report by reviewing slides.
A few clarifying questions were asked by the Board on the difference between Option 1 and 4 and requirements to participate in the Bill Protection program. There were no verbal or written public comments.
Director Cowan made a motion to approve and adopt Bill Protection Option 3, in which customers can call and request bill protection if they choose to remain on the Time of Use rate for a full 12 months, seconded by Director Mayra Vega. Motion passed by the following vote:
AYES: Loren, Stallard, Carson, Cowan, Vega, Frerichs, Sandy NOES: None
ABSENT: Saylor
ABSTAIN: None
Item 18: Approve
Customer Heat
Pump Pilot
program.
Ms. Boyles introduced this item then turned it over to VCE Staff Sierra Huffman. Ms. Huffman summarized the Heat Pump Pilot program by reviewing slides. Staff are asking the Board to approve Phase 1 of VCE’s Heat Pump Pilot Program.
The Board asked questions and discussed: how heat pumps work and their efficiency; lack of statewide power supply for the demand; and, potential future programs, such as lighting or geothermal for the residential customer.
The Board asked that Staff bring back information after initiating Phase 1, such as, a list of participating contractors, how best to promote the technology, successful outreach methods, and helpful tips for the consumer to get through the process.
Verbal Public Comment: Christine Shewmaker supports electrification long term and the way to get to this goal is to reduce greenhouse gas emissions and to reduce dependence on fossil fuels. One of the reasons the Community Advisory Committee’s (CAC) Program Task Group focused on heat pumps was due to the very large rebates that are offered. Her 11 VCEA Minutes March 10, 2022 Board Meeting via Webinar Page 4 of 4 impression is that the heat pump technology has gotten a lot better and heat pump water heaters use less energy than with gas.
There were no written public comments.
Director Lucas Frerichs made a motion to approve Phase 1 of Valley Clean Energy’s Heat Pump Pilot Program, seconded by Director Dan Carson.
Motion passed by the following vote:
AYES: Loren, Stallard, Carson, Vega, Frerichs, Sandy
NOES: Cowan
ABSENT: Saylor
ABSTAIN: None
Item 19: Update
on AgFIT
(Agricultural
Flexible Irrigation
Technology)
program.
(Informational)
Ms. Boyles provided an update on the AgFIT Pilot program, including informing the Board that VCE filed a petition to modify the administrative budget for this program. Executive Officer Mitch Sears informed those present that VCE Staff continue to meet with legislative staff as there is a great interest in this program. He will continue to set up meetings.
There were no verbal or written public comments.
Item 20: Board
Member and Staff
Announcements
Mr. Sears informed those present that the CAC appointed David Springer and Marsha Baird as Chair and Vice Chair at their February 2022 meeting. He thanked Christine Shewmaker and Cynthia Rodriguez for serving as chair and vice chair in 2021. Mr. Sears informed those present that VCE had a booth at the Capay Valley Almond Festival in Esparto, which was well attended. There are several events coming up, California Honey Festival in Woodland and Celebrate Davis in Davis, and Staff welcomes volunteers. The Tierra Buena battery storage project is ahead of schedule and the CC Power Board approved the second long duration storage project, which is now moving forward to the individual CCA Boards for their consideration. Also, the CC Power Board is looking at the responses, mostly geothermal, to the “firm resource” request for offer, and CC Power is moving forward. Lastly, VCE has been working with Yolo County GIS to allow VCE to do some geospatial analysis using their GIS system to plug in our energy use data.
Chair Loren thanked everyone for attending and announced that the Board’s next regular meeting is scheduled for Thursday, April 14, 2022 at 5 p.m.
Adjournment Chair Loren adjourned the regular Board meeting at 6:15 p.m. 12 Item 5
VALLEY CLEAN ENERGY ALLIANCE
Staff Report - Item 5
____________________________________________________________________________________ TO: Board of Directors
FROM: Alisa Lembke, Board Clerk/Administrative Analyst
SUBJECT: Board and Community Advisory Committee 2022 Long-Range Calendar DATE: April 14, 2022
Recommendation
Receive and file the 2022 Board and Community Advisory Committee long-range calendar listing proposed meeting topics.
13 4/7/22
VALLEY CLEAN ENERGY
2022 Meeting Dates and Proposed Topics
Board and Community Advisory Committee (CAC)
(CAC: Topics and Discussion Dates may change as needed)
MEETING DATE TOPICS ACTION
January 13, 2022
Special Meeting
scheduled for
January 27, 2022
Board • Election of Officers for 2022 (Annual)
• Near-term Procurement Directives and Delegations for 2022 Power Procurement Activities
• Calendar Year Budget and 2022 VCE customer rates
• GHG Free Attributes
• 2022 Legislative Platform
• Receive CAC 2021 Calendar Year End Report (Annual)
• 2021 Year End Review: Customer Care and Marketing
• Action
• Action
• Action
• Action
• Action
• Information
• Information
January 27, 2022
January 20, 2022
Advisory
Committee
• 2022 Task Groups Tasks/Charge (Annual)
• Update on 2022 Power Charge Indifference Adjustment (PCIA) and Rates
• Carbon Neutral by 2030 Study
• CC Power long duration storage
• Draft Collections Policy
• Update on customer programs development (draft Heat Pump Pilot Program)
• Action
• Discussion/Action
• Discussion/Action
• Information
• Information/Discussion
• Information
February 10, 2022 Board • CC Power long duration storage • Update on customer programs development
• Update on 2022 PCIA and Rates
• Update on Time of Use (TOU)
• Update on SACOG Grant – Electrify Yolo
• Strategic Plan Update (Annual)
• Carbon Neutral Report
• Action
• Information
• Information
• Information
• Information
• Information
• Information/Discussion
February 24, 2022 Advisory
Committee
• Power Procurement / Renewable Portfolio Standard Update • Time of Use (TOU) and Bill Protection
• Final Draft Collections Policy
• Customer program concept (Heat Pump Pilot Program)
• 2022 Task Group – energy resiliency
• Information
• Discussion/Action
• Action
• Discussion/Action
• Discussion/Action
14 March 10, 2022 Board • Receive Enterprise Risk Management Report (Bi-Annual) • Collections Policy
• Presentment of customer program concept (Heat Pump Pilot Program)
• Time of Use (TOU) Bill Protection
• Ag FIT (Flexible Irrigation Technology) pilot program • Information
• Discussion/Action
• Action
• Discussion/Action
• Discussion/Action
March 24, 2022 Advisory
Committee
WOODLAND
• Customer program concept (draft EV Rebates Program)
• CC Power long duration storage project
• Overview of VCE Forecasting
• Information
• Information
• Information/Discussion
April 14, 2022 Board • Update on SACOG Grant – Electrify Yolo • 7/1/21 thru 12/31/21 Audited Financial Statements (James Marta & Co.)
• CC Power long duration storage project
• Information
• Action
• Discussion/Action
April 28, 2022 Advisory
Committee
• Program Concepts Development (EV Rebates Program)
• Update on SACOG Grant – Electrify Yolo (placeholder)
• Update on Customer Dividend and Programs Allocation
• Forecasting - load
• Discussion/Action
• Information
• Information
• Information
May 12, 2022 Board • Update on Customer Dividend and Programs Allocation • Presentment of customer program concept (EV Rebates Program) • Information
• Action
May 26, 2022 Advisory
Committee
• Update 3-Year Programs Plan
• Forecasting – financial modeling
• Information/Discussion
• Information
June 9, 2022 Board • Re/Appointment of Members to Community Advisory Committee (Annual)
• Extension of Waiver of Opt-Out Fees for one year (Annual) • Update 3-Year Programs Plan
• Action
• Action
• Information
June 23, 2022 Advisory
Committee
• Mid-year rate update • Information
July 14, 2022 Board • Update on SACOG Grant – Electrify Yolo • Net Energy Metering (NEM) 3.0 Update (placeholder)
• Information
• Information
July 28, 2022 Advisory
Committee
• Power Procurement / Renewable Portfolio Standard update • Update on SACOG Grant – Electrify Yolo
• Information
• Information
15 August 11, 2022 Board • Mid-year rates review • Information/Discussion August 25, 2022 Advisory
Committee
• 2022 Operating Budget / Renewable Portfolio Standard update • Information September 8, 2022 Board • 2022 Operating Budget / Renewable Portfolio Standard update • Certification of Standard and UltraGreen Products (Annual) • Enterprise Risk Management Report (Bi-Annual)
• Information
• Action
• Information
September 22, 2022 Advisory
Committee
• Legislative End of Session Update
• 2023 Draft Operating Budget
• Information
• Information
October 13, 2022 Board • Update on SACOG Grant – Electrify Yolo • Update on 2023 draft Operating Budget
• Information
• Information
October 27, 2022 Advisory
Committee
• Update on SACOG Grant – Electrify Yolo
• Update on Power Content Label Customer Mailer
• Review Draft CAC Evaluation of Calendar Year End (Annual) • Information
• Information
• Information/Discussion
November 10, 2022 Board • Certification of Power Content Label (Annual) • Preliminary 2023 Operating Budget (Annual)
• Action
• Information
November 17, 2022
(rescheduled
November 24th
meeting due to the
Thanksgiving holiday)
Advisory
Committee
• Finalize CAC Evaluation of Calendar Year End (Annual) • Review Procurement Directives and Delegations (Annual) • GHG Free attributes
• Power Procurement / Renewable Portfolio Standard Update • Review CAC Charge (Annual)
• ERRA Filings Update (PCIA and bundled rates) (Annual) • Discussion/Action
• Information
• Information
• Information
• Discussion
• Information
December 8, 2022 Board • Approve 2023 Operating Budget (Annual) • Receive Enterprise Risk Management Report (Annual)
• Approve Procurement Directives and Delegations (Annual) • GHG Free attributes
• Update on SACOG Grant – Electrify Yolo
• Receive CAC 2022 Calendar Year End Report (Annual)
• Election of Officers for 2023 (Annual)
• Action
• Information
• Action
• Action
• Information
• Information
• Nominations
16 December 15, 2022
(rescheduled
December 22nd
meeting due to the
Christmas holiday)
Advisory
Committee
• 2023 CAC Task Group(s) formation (Annual)
• Review draft 2023 Legislative Platform
• Strategic Plan update (Annual)
• Election of Officers for 2023 (Annual)
• Discussion/Action
• Discussion/Action
• Information
• Nominations
January 12, 2023 Board • Oaths of Office for Board Members (Annual if new Members) • Update on SACOG Grant – Electrify Yolo
• Strategic Plan Update (Annual)
• 2023 Legislative Platform
• Approve Updated CAC Charge (tentative) (Annual)
• Action
• Information
• Action
• Action
• Action
January 26, 2023 Advisory
Committee
• Update on SACOG Grant – Electrify Yolo • Information
Notes: 1. CalCCA Annual Meeting typically scheduled in November.
2. Currently all meetings are held remotely via Zoom video/teleconference, “location” is subject to change.
CAC PROPOSED FUTURE TOPICS
Topics and Discussion dates may change as needed
ESTIMATED MEETING DATE
Net Energy Metering (NEM) 3.0 (Information/Discussion/Action) TBD Carbon Neutral by 2030 (types of energy, where procured, BTM, FOM, policy) (Discussion/Action) 2022 Quarter 3 Integrated Resource Plan (IRP – update due 11/1/2022) (Discussion/Action) August/September 2022 Draft Rate Structure (Discussion/Action) April or May 2022 CAC Charge revision (as needed)
Legislative Items (as needed)
Strategic Plan additional updates (as needed)
Time of Use (TOU) (as needed)
SACOG Update (as needed)
17 Item 6
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 6
______________________________________________________________________________ TO: Board of Directors
FROM: Mitch Sears, Executive Director
Edward Burnham, Finance and Operations Director
SUBJECT: Financial Update – February 28, 2022 (unaudited) financial statements (with comparative year to date information) and Actual vs. Budget year to date ending February 28, 2022
DATE: April 14, 2022
RECOMMENDATION:
Accept the following Financial Statements (unaudited) for the period of February 1, 2022 to February 28, 2022 (with comparative year to date information) and Actual vs. Budget year to date ending February 28, 2022.
BACKGROUND & DISCUSSION:
The attached financial statements are prepared in a form to satisfy the debt covenants with River City Bank pursuant to the Line of Credit and are required to be prepared monthly.
The Financial Statements include the following reports:
• Statement of Net Position
• Statement of Revenues, Expenditures and Changes in Net Position • Statement of Cash Flows
In addition, Staff is reporting the Actual vs. Budget variances year to date ending Febaruary 28, 2022.
Financial Statements for the period February 1, 2022 – February 28, 2022 In the Statement of Net Position, VCEA, as of February 28, 2021, has a total of $918,812 in its checking, money market and lockbox accounts, $1,100,000 restricted assets for the Debt Service Reserve account, $1,998,276 restricted assets related to supplier deposits, and $2,462,533 restricted assets for the Power Purchases Reserve account. VCE has incurred obligations from Member agencies and owes as of February 28, 2021, $159,872. VCE member obligations are incurred monthly due to staffing, accounting, and legal services.
18 Item 6
The term loan with River City Bank includes a current portion of $1,120,082. On February 28, 2022, VCE’s net position is $6,908,534.
In the Statement of Revenues, Expenditures, and Changes in Net Position, VCEA recorded $2,644,501 of revenue (net of allowance for doubtful accounts), of which $3,417,595 was billed in February and $1,496,861 represent estimated unbilled revenue. The cost of the electricity for the February revenue totaled $4,195,943. For February, VCEA’s gross margin was approximate -53% and net loss totaled ($1,767,604). The year-to-date change in net position was ($3,103,087).
In the Statement of Cash Flows, VCEA cash flows from operations were ($1,571,782) due to February cash receipts of revenues being less than the monthly cash operating expenses.
Actual vs. Budget Variances for the year to date ending February 28, 2022 Below are the financial statement line items with variances >$50,000 and 5% • Electric Revenue - $399,134 and 7% – favorable variance is due to load being more favorable than planned and the weather has been warmer than forecast.
• Purchased Power – ($1,076,916) and -17% – favorable variance is due to load being more favorable than planned, weather has been warmer than forecast, and lower power market prices for January and February.
Attachments:
1) Financial Statements (Unaudited) February 1, 2022 to February 28, 2022 (with comparative year to date information.)
2) Actual vs. Budget for the year to date ending February 28, 2022 19 VALLEY CLEAN ENERGY ALLIANCE
FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE PERIOD OF FEBRUARY 1 TO FEBRUARY 28, 2022
PREPARED ON APRIL6, 2022
20 2
ASSETS
Current assets:
Cash and cash equivalents $ 918,812
Accounts receivable, net of allowance 5,826,084
Accrued revenue 1,698,209
Prepaid expenses 21,243
Other current assets and deposits 1,998,276
Total current assets 10,462,624
Restricted assets:
Debt service reserve fund 1,100,000
Power purchase reserve fund 2,462,533
Total restricted assets 3,562,533
Noncurrent assets:
Other noncurrent assets and deposits
Total noncurrent assets -
TOTAL ASSETS $ 14,025,157
LIABILITIES
Current liabilities:
Accounts payable $ 412,776
Accrued payroll 64,455
Interest payable 2,260
Due to member agencies 159,872
Accrued cost of electricity 3,363,964
Other accrued liabilities (80,848)
Security deposits - energy supplies 1,980,000
User taxes and energy surcharges 94,062
Limited Term Loan 1,120,082
Total current liabilities 7,116,623
Noncurrent liabilities
Term Loan- RCB
Total noncurrent liabilities -
TOTAL LIABILITIES $ 7,116,623
NET POSITION
Restricted
Local Programs Reserve 224,500
Restricted 3,562,533
Unrestricted 3,121,501
TOTAL NET POSITION $ 6,908,534
(UNAUDITED)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF NET POSITION
FEBRUARY 28, 2022
21 3
FOR THE
PERIOD ENDING
FEBRUARY 31,
2022 YEAR TO DATE
OPERATING REVENUE
Electricity sales, net $ 2,751,191 $ 6,353,834
TOTAL OPERATING REVENUES 2,751,191 6,353,834
OPERATING EXPENSES
Cost of electricity 4,195,943 8,734,484
Contract services 140,515 368,494
Staff compensation 95,801 191,481
General, administration, and other 84,378 158,214
TOTAL OPERATING EXPENSES 4,516,637 9,452,673
TOTAL OPERATING INCOME (LOSS) (1,765,446) (3,098,839)
NONOPERATING REVENUES (EXPENSES)
Other Revenue
Interest income 637 2,315
Interest and related expenses (2,795) (6,563)
TOTAL NONOPERATING REVENUES
(EXPENSES) (2,158) (4,248)
CHANGE IN NET POSITION (1,767,604) (3,103,087)
Net position at beginning of period 8,676,138 9,749,097 Net position at end of period $ 6,908,534 $ 6,646,010
(WITH COMPARATIVE YEAR TO DATE INFORMATION)
VALLEY CLEAN ENERGY ALLIANCE
STATEMENT OF REVENUES, EXPENDITURES AND
(UNAUDITED)
CHANGES IN NET POSITION
FOR THE PERIOD OF FEBRUARY 1, 2022 TO FEBRUARY 28, 2022 22 4
FOR THE
PERIOD ENDING
FEBRUARY28, 2022 YEAR TO DATE
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from electricity sales $ 3,917,591 $ 7,881,178 Payments to purchase electricity (5,606,047) (10,618,494) Payments for contract services, general, and adminstration 204,255 (103,853) Payments for staff compensation (87,581) (190,935)
Net cash provided (used) by operating activities (1,571,782) (1,460,322)
CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES
Principal payments of Debt (32,944) (32,944)
Interest and related expenses (3,219) (7,089)
Net cash provided (used) by non-capital financing activities (36,163) (3,870)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest income 637 2,315
Net cash provided (used) by investing activities 637 1,678 NET CHANGE IN CASH AND CASH EQUIVALENTS (1,607,308) (3,069,822) Cash and cash equivalents at beginning of period 6,088,653 13,639,820 Cash and cash equivalents at end of period $ 4,481,345 $ 6,088,653 Cash and cash equivalents included in:
Cash and cash equivalents 918,812 918,812
Restricted assets 3,562,533 3,562,533
Cash and cash equivalents at end of period $ 4,481,345 $ 4,481,345
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
FOR THE PERIOD OF FEBRUARY 1 TOFEBRUARY 28, 2022
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
23 5
FOR THE
PERIOD ENDING
FEBRUARY28, 2022 YEAR TO DATE
Operating Income (Loss) $ (1,765,446) $ (3,098,839)
(Increase) decrease in net accounts receivable 1,206,144.00 1,481,760.59 (Increase) decrease in accrued revenue - 69,984.26
(Increase) decrease in prepaid expenses 558,068 863,987.00 Increase (decrease) in accounts payable (3,878) (31,966.00) Increase (decrease) in accrued payroll 8,220 546.00
Increase (decrease) in due to member agencies 20,963 41,927.00 Increase (decrease) in accrued cost of electricity (1,494,299) (1,968,205.00) Increase (decrease) in other accrued liabilities (61,510) (366,598.00) Increase (decrease) in user taxes and energy surcharges (40,044) (24,700.90) Net cash provided (used) by operating activities $ (1,571,782) $ (1,460,322)
RECONCILIATION OF OPERATING INCOME TO NET CASH
PROVIDED (USED) BY OPERATING ACTIVITIES
(WITH YEAR TO DATE INFORMATION)
(UNAUDITED)
FOR THE PERIOD OF FEBRUARY 1 TOFEBRUARY 28, 2022
VALLEY CLEAN ENERGY ALLIANCE
STATEMENTS OF CASH FLOWS
24 VALLEY CLEAN ENERGY
2022 YTD ACTUAL VS. BUDGET
FOR THE YEAR TO DATE ENDING 02/28/22
Description YTD
Actuals
YTD
Budget
YTD
Variance
%
over/-under
Electric Revenue $ 3,602,643 $ 3,355,600 $ 247,043 7%
Interest Revenues $ 1,678 $ 1,500 $ 178 12%
Purchased Power $ 4,538,541 $ 5,480,900 $ (942,359) -17% Purchased Power Base $ 4,538,541 $ 4,838,600 $ (300,059) -6% Purchased Power Contingency 2% $ - $ 642,300 $ (642,300) -100% Labor & Benefits $ 95,679 $ 109,900 $ (14,221) -13%
Salaries & Wages/Benefits $ 77,674 $ 90,800 $ (13,126) -14% Contract Labor (SMUD Staff Aug) $ - $ 4,900 $ (4,900) -100% Human Resources & Payroll $ 18,005 $ 14,200 $ 3,805 27% Office Supplies & Other Expenses $ 40,597 $ 16,400 $ 24,197 148% Technology Costs $ 4,568 $ 2,900 $ 1,668 58%
Office Supplies $ 24 $ 200 $ (176) -88%
Travel $ - $ 500 $ (500) -100%
CalCCA Dues $ 9,115 $ 10,600 $ (1,485) -14%
CC Power $ 26,891 $ 2,000 $ 24,891 1245%
Memberships $ - $ 200 $ (200) -100%
Contractual Services $ 210,924 $ 209,600 $ 1,324 1%
Other Contract Services $ - $ 2,100 $ (2,100) -100%
Don Dame $ 380 $ 800 $ (420) -53%
SMUD - Credit Support $ 50,937 $ 43,500 $ 7,437 17%
SMUD - Wholesale Energy Services $ 48,987 $ 48,800 $ 187 0% SMUD - Call Center $ 65,656 $ 65,800 $ (144) 0%
SMUD - Operating Services $ 1,108 $ 5,000 $ (3,892) -78% Commercial Legal Support $ - $ - $ - 100%
Legal General Counsel $ 13,983 $ 12,900 $ 1,083 8%
Regulatory Counsel $ 21,596 $ 16,600 $ 4,996 30%
Joint CCA Regulatory counsel $ 192 $ 2,700 $ (2,508) -93% Legislative - (Lobbyist) $ 5,000 $ 5,000 $ - 0%
Accounting Services $ 1,084 $ 2,200 $ (1,116) -51%
Financial Consultant $ - $ 2,100 $ (2,100) -100%
Audit Fees $ 2,000 $ 2,100 $ (100) -5%
Marketing $ 17,053 $ 20,500 $ (3,447) -17%
Marketing Collateral $ 17,053 $ 20,000 $ (2,947) -15%
Community Engagement Activities & Sponsorships $ - $ 500 $ (500) -100% Programs $ 1,058 $ 14,500 $ (13,442) -93%
Program Costs $ 1,058 $ 14,500 $ (13,442) -93%
Rents & Leases $ 3,200 $ 1,800 $ 1,400 78%
Hunt Boyer Mansion $ 3,200 $ 1,800 $ 1,400 78%
Other A&G $ 28,932 $ 28,000 $ 932 3%
Development - New Members $ - $ 2,100 $ (2,100) -100%
Strategic Plan Implementation $ 5,892 $ 2,100 $ 3,792 181% PG&E Data Fees $ 21,730 $ 23,000 $ (1,270) -6%
Insurance $ 1,310 $ 700 $ 610 87%
Banking Fees $ - $ 100 $ (100) -100%
Miscellaneous Operating Expenses $ 51 $ 600 $ 600 100%
Contingency $ - $ 20,000 $ 20,000 100%
TOTAL OPERATING EXPENSES 4,936,036 $ 5,902,200 $ (925,015) $ -16% Interest on RCB loan $ 3,768 $ 3,400 $ 368 11%
Interest Expense - Bridge Loan $ - $ - $ - 100%
NET INCOME (1,335,483) $ (2,548,500) $ 1,171,868 $ -46% 25 Item 7
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 7
To: Board of Directors
From: Mitch Sears, Interim General Manager
Subject: Legislative Update – Pacific Policy Group
Date: April 14, 2022
______________________________________________________________________________ Staff, VCE’s lobby services consultant at Pacific Policy Group, and the Community Advisory Committee’s Legislative - Regulatory Task Group continues to meet and discuss legislative matters. Below is a summary:
The month of April is always one of the busiest months of the legislative session and this year it’s shaping up as a “return to normal.” Over the past two legislative sessions, COVID forced the Legislature to significantly curtail the number of bill proposals considered; this session there are no limitations on the amount of bills that legislators can pursue, and committees were conducting hearings throughout the month of March. In addition, some committees have begun to require lead witnesses to deliver their testimony in person. Despite these developments, the day-to-day business of the Legislature mostly remains in a virtual setting. In addition, any in-person meetings that are happening are not taking place in the Capitol as the legislators and staff have all moved to their temporary offices while the Capitol annex building is made over.
In addition to policy bills, the Legislature is discussing and vetting the Governor’s proposed 2022-23 budget which came in at $286.4 billion, a 9% increase from last year. This includes a $21 billion discretionary surplus, plus billions more for schools, pension payments and reserve accounts. The Legislature’s approach so far has been to defer nearly all of its decisions on the Governor’s proposal to later in the Spring after the Governor releases the May Revision to the budget, and some reports have indicated that the surplus will grow anywhere from $5 billion to $20 billion.
VCE’s current legislative efforts have concentrated on the following bills:
1. AB 1814 (Grayson) Transportation Electrification Funds: Community Choice Aggregators Summary: AB 1814 would authorize Community Choice Aggregators (CCAs) to submit applications to the California Public Utilities Commission (CPUC) to receive funding to administer transportation electrification programs in their service areas. 26 Item 7
2 Specifically, this bill would explicitly authorize CCAs to file applications for programs and investments to accelerate widespread transportation electrification. In order to submit these applications, CCAs would be regulated to meet all of the same requirements that IOUs are currently required to meet.
This is CalCCA’s sponsored bill for the 2022 legislative session. The bill is consistent with the VCE Legislative Platform, specifically Provision 10 regarding Local Economic Development and Environmental Objectives.
At the time this staff report was drafted, the prospects for AB 1814 this legislative session are uncertain. The bill had been scheduled to be heard in Assembly Utilities & Energy but was pulled from the hearing at the request of the author. AB 1814 is facing opposition from the California Coalition of Utility Employees and all three investor-owned utilities.
Additional Information:
• This bill is sponsored by CalCCA
• VCE has submitted a support position
• Next Hearing; The bill has been referred to Asm. Utilities & Energy Committee and is awaiting a hearing date.
• Bill language: AB 1814
2. 1287 (Bradford) CCA and ESP Financial Security Requirements Summary: This bill would require the posted bond amount, or demonstrated insurance amount, at the time of registration by an electric service provider or a community choice aggregator to be no less than $500,000. The bill would also require the commission to update the financial security requirements for electric service providers and community choice aggregators to instead include costs for no less than 12 months of incremental procurement incurred by the provider of last resort, upon the customers’ involuntary return.
Specifically, the bill will:
1) Amend current law that requires a CCA or ESP to post a bond or demonstrate insurance sufficient to cover the reentry fees of customers who are involuntarily returned to an investor-owned utility to instead require a minimum bond or insurance in the amount of $500,000.
2) In calculating the insurance or bonding requirement, the PUC shall include costs for no less than 12 months of incremental procurement incurred by the provider of last resort.
SB 1287 will significantly increase the amount of insurance that VCE will need to hold to cover the unlikely event that VCE folds and its customers are involuntarily returned to PG&E. The $500,000 minimum figure and the requirement that the insurance amount include incremental procurement made by the IOU does not factor in already contracted energy for VCE’s customers. In addition, calculating the incremental procurement will be incredibly complex and challenging and will contribute to additional unnecessary cost to VCE. Lastly, this requirement will create another significant obstacle for communities who wish to explore CCA and for all 27 Item 7
3 practical purposes prevent new CCAs from forming – especially concerning for under-represented and under-resourced portions of the State (e.g. Central Valley).
Additional Information
• Next hearing: The bill has been referred to the Senate Energy, Utilities & Communications Committee but has yet to be scheduled for a hearing. • The VCE Board approved an “oppose” position and staff is working on letter to register this position with the committee.
• Bill language: SB 1287
28 Item 8
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 8
To: Board of Directors
From: Mitch Sears, Interim General Manager
Subject: Regulatory Monitoring Report – Keyes & Fox
Date: April 14, 2022
______________________________________________________________________________ Please find attached Keyes & Fox’s March 2022 Regulatory Memorandum dated April 6, 2022, an informational summary of the key California regulatory and compliance-related updates from the California Public Utilities Commission (CPUC).
Attachment: Keyes & Fox Regulatory Memorandum dated April 6, 2022. 29 1
Valley Clean Energy Alliance
Regulatory Monitoring Report
To: Valley Clean Energy Alliance (“VCE”) Board of Directors From:
Sheridan Pauker, Partner, Keyes & Fox LLP
Tim Lindl, Partner, Keyes & Fox LLP
Jason Hoyle, Principal Analyst, EQ Research, LLC
Subject: Regulatory Update
Date: April 6, 2022
Summary
Keyes & Fox LLP and EQ Research, LLC, are pleased to provide VCE’s Board of Directors with this monthly informational memo describing key California regulatory and compliance-related updates from the California Public Utilities Commission (CPUC). A Glossary of Acronyms used is provided at the end of this memo.
In summary, this month’s report includes regulatory updates on the following priority issues:
• Ensuring Summer 2021 Reliability: On March 2, 2022, PG&E and the Public Advocates Office (PAO) filed Responses to the Petition for Modification of D.21-12-015 filed by VCE, Polaris and TeMix (the Pilot Partners) relating to VCE’s dynamic rates pilot for agricultural irrigation pumping customers (Pilot). The Pilot Partners filed a Reply to those Responses on March 14, 2022. On March 3, 2022, PG&E filed a Reply to the Pilot Partners’ Protest of PG&E’s Advice Letter 6495-E.
Authorization of VCE’s administrative expenses and reimbursement of vendor expenses remains pending before the Commission.
• IRP Rulemaking: On March 29, 2022, a Proposed Decision addressing cost allocation and recovery under the Modified Cost Allocation Mechanism (MCAM) was issued. The Final Decision is expected on or after May 5, 2022 and will be followed by Tier 2 Advice Letters from IOUs describing their implementation of the MCAM. VCE’s next IRP is due November 1, 2022. • RPS Rulemaking: On March 10, 2022, the Joint IOUs filed a Motion requesting authorization to submit their proposed modifications to the Market Offer Process via Tier 3 Advice Letter on April 28, 2022. The proposed modifications would allow implementation of Market Offer REC transactions to coincide with the start of Voluntary Allocation deliveries and provide cost savings.
VCE’s 2022 RPS Procurement Plan is due in late spring or summer (exact date TBD) and its 2021 RPS Compliance Report is due August 1, 2022.
• PCIA Rulemaking: On April 4, 2022, PG&E submitted Tier 2 advice letter proposing its pro forma Market Offer Contract, and requested proposed contract become effective on May 4, 2022, with protests/responses due April 25, 2022. On February 28, 2022, PG&E submitted Tier 2 advice letter proposing its pro forma Voluntary Allocation Contract and providing an updated timeline. 30 2
Additionally, on March 8, 2022, Rulemaking 17-06-026 was reassigned from Commissioner Martha Guzman Aceves to Commissioner John R.D. Reynolds. •
NEW PG&E 2021 ERRA Compliance: PG&E filed its 2021 ERRA Compliance application on February 28, 2022, in which it requests the CPUC find that the company complied with its CPUC-approved Bundled Procurement Plan, reasonably managed utility-owned generation facilities, and made other reasonable expenditures and accounting entries consistent with CPUC directives. • PG&E Phase 2 GRC: The single carryover issue of material fact about the Marginal Generation Capacity Cost (MGCC) Property Tax Adder was resolved with issuance of a Final Decision adopting the Joint Stipulation on March 18, 2022. PG&E’s MGCC Report was filed March 17, 2022, and PG&E filed its non-NEM export compensation proposal for BEV on March 24, 2022. • PG&E Phase 1 GRC: PG&E filed an Amended Application and submitted supplemental testimony on wildfire mitigation programs in March 2022. A March 10 ALJ Ruling denied the Motion to Shorten Time filed by TURN, PG&E, and PAO, and suspended the March 30, 2022, deadline for intervenor testimony pending a ruling on their February 16, 2022, Motion to Modify the Schedule. PG&E filed its recorded expense and capital cost data for 2021 on March 9, 2022.
Public Participation Hearings were held on three days during March 2022 regarding the February 2022 joint report, submitted by PG&E and Caltrain, on the status of the third-party audit of costs that PG&E will incur to upgrade the East Grand and FMC substations in connection with Caltrain’s project to electrify its commuter rail system between San Jose and San Francisco. • RA Rulemaking (2023-2024): On March 18, 2022, the CPUC issued a Decision on Phase 1 of Implementation Track Modifications that made several changes to the CPE, including changes encouraging LSEs to self-show resources and modifying the timeline of CPE activities. This Decision concludes Phase 1 of the Implementation Track Modifications. • RA Rulemaking (2021-2022): On March 18, 2022, the CPUC issued a Proposed Decision that would deny OhmConnect’s September 2021 Petition for Modification of D.20-06-031 to increase the demand response Maximum Cumulative Capacity limit of 8.3% to 11.3%. • PG&E 2020 ERRA Compliance: On March 16, 2022, the CPUC issued a Proposed Decision for Phase 1 in which the Settlement Agreement filed by the parties on October 15, 2021, was found to be reasonable and therefore resolves all the disputed issues in this proceeding. Phase 2 of the proceeding, which remains open, will address issues related to unrealized sales and revenues resulting from PG&E’s Public Safety Power Shutoff events in 2020. • Provider of Last Resort Rulemaking: Comments on the March 7, 2022, workshop to discuss the proposed framework for considering the issues and recommendations resulting from the previous Phase 1 workshop were filed March 28, 2022.
• RA Rulemaking (2019-2020): No updates this month. Rulemaking is effectively closed except for one outstanding application for rehearing that was filed in August 2020. • Utility Safety Culture Assessments: A telephonic Prehearing Conference was held on March 30, 2022, to determine the parties, scope, schedule of the proceeding, and other procedural matters.
31 3
• 2022-2023 Wildfire Fund Nonbypassable Charge Rulemaking: No updates this month. The CPUC issued D.21-12-006 adopting a Wildfire Fund NBC of $0.00652/kWh for January 1, 2022, through December 31, 2022.
• Investigation into PG&E’s Organization, Culture and Governance: No updates this month except to note that on March 7, 2022, Investigation 15-08-019 was reassigned from President Marybel Batjer to Commissioner John R.D. Reynolds.
• PG&E Regionalization Plan: No updates this month. The statutory deadline for a final decision was extended to June 30, 2022, in an order issued December 16, 2021. • PG&E 2022 ERRA Forecast: No updates this month. On February 11, 2022, the CPUC issued D.22-02-002, resolving all issues and closing the proceeding. The final system average PCIA rate for the 2017 vintage is $0.01897/kWh.
• PG&E 2019 ERRA Compliance: No update this month except to note that Opening Briefs are due May 6, 2022. On March 23, 2022, consolidated Application (A.) 20-02-009, A.20-04-002 and A.20-06-001 was reassigned from Commissioner Martha Guzman Aceves to Commissioner John R.D. Reynolds.
• Direct Access Rulemaking: On March 1, 2022, Rulemaking 19-03-009 was reassigned from Commissioner Martha Guzman Aceves to Commissioner John R.D. Reynolds. In August 2021, CalCCA filed a response to a July 2021 application for rehearing filed by a coalition of parties supporting expansion of Direct Access in which the coalition of parties challenged a June CPUC decision recommending against any re-opening of Direct Access. This proceeding is otherwise closed.
Ensuring Summer 2021 Reliability
On March 2, 2022, PG&E and the Public Advocates Office (PAO) filed Responses to the Petition for Modification of D.21-12-015 filed by VCE, Polaris and TeMix (the Pilot Partners) relating to VCE’s dynamic rates pilot for agricultural irrigation pumping customers (Pilot). The Pilot Partners filed a Reply to those Responses on March 14, 2022. On March 3, 2022, PG&E filed a Reply to the Pilot Partners’ Protest of PG&E’s Advice Letter 6495-E.
Background: CAISO experienced rolling blackouts (Stage 3 Emergency) on August 14, 2020, and August 15, 2020, when a heatwave struck the Western U.S. and there was insufficient available supply to meet high demand. The OIR was issued to ensure reliable electric service in the event that an extreme heat storm occurs in the summer of 2021.
D.21-03-056 instituted modifications to the planning reserve margin (PRM), effectively increasing the PRM beginning summer 2021 from 15% to 17.5%. For 2021, this results in a minimum target of incremental procurement of 450 MW for PG&E, 450 MW for SCE, and 100 MW for SDG&E. The net costs associated with this incremental procurement would be shared by all customers (including CCA customers) in each IOU’s service territory. It also authorized the IOUs to implement a Flex Alert paid media campaign program to encourage ratepayers to voluntarily reduce demand during moments of a stressed grid, adopts modifications and expansions to the Critical Peak Pricing (CPP) program, and established an emergency load reduction program.
D.21-12-015 approved VCE’s dynamic rate Pilot for three years (2022-2024) and directed that it start no later than May 1, 2022. VCE’s Pilot will test whether agricultural irrigation pumping customers, which consume on average 18% of VCE’s total annual load, can shift load to more optimal times of the day, thereby saving money, reducing burden to the grid and reducing GHG impacts. Customers 32 4
participating in VCE’s Pilot will receive a “shadow bill.” PG&E will continue to bill participating customers based on existing tariffs, but the shadow bill will show the customer savings under the Pilot dynamic rate, and VCE will pay customers for the difference between the shadow bill and the customer’s usage under the otherwise applicable tariff. The Pilot scale will be limited to 5 MW of peak load. PG&E will provide funds to or reimburse VCE for crediting any savings realized by the customers with respect to the delivery component of the VCE dynamic rate Pilot in the customers’ shadow bills. D.21-12-015 authorized new funding of $3.25 million for the pumping automation technology, pricing platform and vendor fees and PG&E’s administration of the three-year Pilot.
On January 5, 2022, VCE submitted Advice Letter 11-E in accordance with D.21-12-015. On January 25, 2022, PG&E protested VCE’s Advice Letter, to which VCE replied on January 31, 2022.
On January 31, 2022, the Pilot Partners filed a Petition for Modification (PFM) of D.21-12-015 to increase the budget for this Pilot to cover VCE’s administrative costs, and the Pilot Partners also filed a Motion to Shorten Time for comments on the PFM as well as on the Commission’s proposed decision resolving the PFM. PAO filed a Response to the Pilot Partners’ Motion to Shorten Time, on February 9, 2022, to which the Pilot Partners replied on February 18, 2022.
On February 4, 2022, PG&E submitted Advice Letter 6495-E, which the Pilot Partners Protested on February 24, 2022. The Pilot Partners objected to the pricing methodology proposed by PG&E, on the grounds that it is inconsistent with the UNIDE framework because the differentials between peak and off-peak are too small to effectively test the impacts of dynamic pricing. The Pilot Partners objected to PG&E’s attempt to establish various participation rules for the Pilot, including determining eligibility for various types of net energy metering (NEM) customers and other participation requirements.
D.21-12-015 also creates an additional procurement mandate of 2,000 MW-3,000 MW for 2023, allocated exclusively to the three large IOUs (900 MW-1,350 MW each for PG&E and SCE, and 200 MW-300 MW for SDG&E). It requires all incremental resources procured as a result of this proceeding to be available during the net peak. It adopted numerous additional demand-side and supply-side changes aimed at ensuring sufficient resource availability to meet the summer net peak load.
Details: The PAO’s Response to the PFM opposed to the Pilot Partners’ request for an increased budget. PG&E’s Response to the PFM did not oppose VCE’s request for additional funding to cover administrative costs, but stated that PG&E would not release any funds to enable VCE to pay its vendors until the Commission issued a decision resolving the PFM, asserted that VCE be required to prepare semiannual Demand Response Emerging Technologies Reports (DRET) with numerous elements, and asserted numerous PG&E management responsibilities for the Pilot to be reflected in contracts with TeMix and VCE. PG&E’s Reply to the Pilot Partners’ Protest to Advice Letter 6495-E, submitted on February 4, 2022, asserted that PG&E would file a supplement to its advice letter to revise the delivery component of the Pilot rate, but reiterated that it would not enter into a contract with nor release reimbursement of expenses to VCE prior to the Commission’s decision on the PFM.
On March 14, 2022, the Pilot Partners filed a Reply to the March 2 Responses of PG&E and the PAO to the PFM, requesting the Commission to direct PG&E to release at least $1,197,118 in previously authorized funding to enable the Pilot to launch by May 1, 2022, and authorization of VCE’s administrative costs, including DRET reporting, if required, and asserting a narrower role for PG&E in the Pilot administration.
Analysis: VCE is seeking approval and clarification of its advice letter and PFM to facilitate implementation of the Pilot, authorize reimbursement of VCE’s administrative expenses as well as the release of about $1.197 million to cover vendor expenses to-date and enable the Pilot to begin on May 1, 2022. PG&E was resistant to the authorization of VCE’s Pilot in its comments to the Commission, and its actions since the Pilot was approved have had the impact of delaying Pilot implementation and hampering VCE’s ability to pay its vendors. In its advice letter and other filings, 33 5
PG&E has asserted control over various elements of the Pilot that were not authorized by the Commission and the utility has not yet revised its proposed design for the delivery component of the Pilot rate.
Next Steps: The Commission’s Energy Division has yet to resolve VCE’s Advice Letter 11-E, PG&E’s Advice Letter 6495-E, the PFM, or the Motion to Shorten Time. Absent a Commission ruling on the Pilot Partners’ Motion to Shorten Time, a Commission Decision on the PFM is expected no earlier than April 21, 2022. D.21-12-015 requires that the Pilot launch by May 1, 2022.
Additional Information: VCE, Polaris, and TeMix Reply to PAO & PG&E Responses (March 14, 2022); PAO Response to VCE, Polaris, and TeMix Reply (March 2, 2022); PG&E Response to VCE, Polaris, and TeMix Reply (March 2, 2022); VCE, Polaris, and TeMix Protest of PG&E AL 6495-E (February 24, 2022); VCE, Polaris, and TeMix Reply to PAO Response (February 18, 2022); PAO Response to Motion to Shorten Time (February 9, 2022); PG&E AL 6495-E (February 4, 2022) and Substitute Sheets for AL 6495-E (March 29, 2022); PG&E AL 6496-E on Emergency Load Reduction Program Pilot (February 4, 2022); VCE Reply to PG&E Protest of VCE AL 11-E (January 31, 2022); VCE, TeMix and Polaris Petition for Modification (January 31, 2022); Motion to Shorten Time (January 31, 2022); PG&E Protest of VCE AL 11-E (January 25, 2021); D.21-12-069 correcting errors in D.21-12-014 (December 27, 2021); D.21-12-015 (December 6, 2021); D.21-09-045 denying rehearing of D.21-03-056 (September 23, 2021); D.21-06-027 (approved June 24, 2021); Order denying applications for rehearing (May 20, 2021); D.21-03-056 (March 25, 2021); D.21-02-028 directing IOUs to seek additional capacity for summer 2021 (February 17, 2021); Scoping Memo and Ruling (December 21, 2020); Order Instituting Rulemaking (November 20, 2020); Docket No. R.20- 11-003.
IRP Rulemaking
On March 29, 2022, a Proposed Decision addressing cost allocation and recovery under the Modified Cost Allocation Mechanism (MCAM) was issued. The Final Decision is expected on or after May 5, 2022 and will be followed by Tier 2 Advice Letters from IOUs describing their implementation of the MCAM.
VCE’s next IRP is due November 1, 2022.
Background: On September 1, 2020, LSEs including VCE filed their 2020 IRPs, which included updates on each LSE’s progress towards completing additional system RA procurement ordered for the 2021-2023 years under D.19-11-016. The September 24, 2020, Scoping Memo and Ruling clarified that the issues planned to be resolved in this proceeding are organized into the following tracks: General IRP oversight issues, procurement track, Preferred System Portfolio development, the Transmission Planning Process, and Reference System Portfolio Development.
D.20-12-044 established a backstop procurement process that would apply to LSEs that did not opt-out of self-procuring their capacity obligations under D.19-11-016. It requires LSEs to file bi-annual (due February 1 and August 1) updates on their procurement progress relative to the contractual and procurement milestones defined in the decision.
D.21-06-035 established a new procurement mandate of 11,500 MW of additional zero-emitting or RPS-eligible net qualifying capacity to be procured by 2026 by LSEs through long-term (10 or more years) contracts. It specifies that 2,000 MW of the procurement mandate required for 2026 must be “long-lead-time” (LLT) resources, with half coming from long-duration storage and the other half from zero-emitting resources with an 80% or greater capacity factor (e.g., geothermal and biomass). VCE is permitted to use resources that were not online or in-development and contracted and approved by its Board as of June 30, 2020, to count towards its procurement requirements (i.e., contracts approved by the VCE Board and executed after June 30, 2020, can count towards VCE’s procurement mandates). LSEs will not be given the option to opt out up-front from providing their proportional share of the capacity required by D.21-06-035. The February 1, 2023, compliance filing 34 6
will be the first check on the status of LLT resource procurement. VCE’s obligations are 8 MW by 2023, 23 MW by 2024, 6 MW by 2025, 4 MW of long-duration storage and 4 MW of zero-emitting resources by 2026. In addition, 10 MW out of its 2023-2025 procurement requirements must be met through zero-emitting generating capacity that is available 5-10pm daily.
D.22-02-004 adopted a 2021 Preferred System Plan (PSP and certified VCE’s 2020 IRP. VCE’s next IRP is due November 1, 2022. The 2021 PSP is a statewide resource portfolio that meets a statewide 38 MMT GHG target for the electric sector in 2030. It is derived from an aggregation of individual LSE IRPs with adjustments to extend the timeframe beyond 2030 to 2032 for transmission planning purposes and to add the resources required in D.21-06-035 for mid-term reliability (MTR) purposes. The decision recommends that CAISO use the 38 MMT PSP portfolio as both the reliability base case and the policy-driven base case for study in its 2022-2023 Transmission Planning Process, which is a more aggressive GHG reduction portfolio than the 46 MMT portfolio used in 2020 IRPs. D.22-02-004 also results in the following new resource build by 2032, by technology: Gas: 0 MW; Biomass: 134 MW; Geothermal: 1,160 MW; Wind: 3,531 MW; Wind (New Transmission): 1,500 MW; Offshore Wind: 1,708 MW; Utility-Scale Solar: 17,506 MW; Battery Storage: 13,571 MW; Long-duration Storage: 1,000 MW; Load Shed DR: 441 MW.
Details: A Proposed Decision on the Modified Cost Allocation Mechanism (MCAM) was issued on March 29, 2022, that addresses allocation and recovery of net costs of electric resource procurement for opt-out LSEs (i.e., those LSEs who elected not to self-procure) and backstop procurement obligations.
The Proposed Decision addresses the issue raised by CalCCA (May 14, 2022 Petition for Modification of D.19-11-016) of whether the non-bypassable charge should appear on retail customers’ bills or be directly billed to the LSE. The PD would not adopt CalCCA’s proposal for the direct billing of the full MCAM costs from the IOU to the non-IOU LSE, and instead cites the Public Utilities Code’s express direction that these costs be allocated “on a fully nonbypassable basis” to “customers” (Section 365.1(c)(2)(i)-(iii)).
The PD also addresses how the costs of backstop procurement of associated with D.19-11-016 and D.21-06-035 will be allocated to customers. Due to the short time frame for such procurement, the IOU should either choose a lower NPV bid from an existing solicitation or conduct an entirely new solicitation to procure backstop capacity, depending on the status and quality of existing bids and other market factors. If the IOU chooses the new solicitation option, then all costs will be attributable to the LSE whose procurement was deficient. If a bid from an existing solicitation is selected, then the IOU’s administrative costs will be pro-rated between bundled and Deficient LSE customers while the contract costs for the backstop procurement will be fully allocated to the customers of the Deficient LSE. If the PD is approved, customers of the Deficient LSE would pay the above-market costs of the capacity through a non-bypassable charge while the backstop LSE’s customers pay their LSE directly for the market price of the capacity and RPS RECs.
Analysis: The Proposed Decision regarding the MCAM would clarify that procurement costs will only be recovered from bundled service customers, Opt-Out LSE customers, and potentially Deficient LSEs rather than all customers in an IOU’s service territory. If approved, cost recovery under MCAM will occur through a non-bypassable charge on retail customers’ bills. Resource Adequacy benefits would also be allocated on the same basis as costs for purposes of the MCAM. Additionally, if the PD is approved, an LSE may acquire unbundled RECs but the transfer of RECs to LSEs must be accompanied by a forward sale of associated energy.
Next Steps: A Final Decision on the MCAM is expected on or after May 5, 2022, after which the IOUs will file a Tier 2 Advice Letter to implement the MCAM no more than 60 days following the Final Decision. VCE’s next IRP is November 1, 2022. The CPUC will issue a Ruling by June 15, 2022, providing additional direction and detail on the requirements for LSE 2022 IRPs. 35 7
Additional Information: Proposed Decision on the Modified Cost Allocation Mechanism (March 29, 2022); D.22-02-004 adopting 2021 Preferred System Plan (December 22, 2021); CCA Motion for Clarification (December 13, 2021); D.21-06-035 establishing a 11,500 MW by 2026 procurement mandate (June 24, 2021); D.21-02-028 recommending portfolios for CAISO’s 2021-2022 TPP (February 17, 2021); D.20-12-044 establishing a backstop procurement process (December 22, 2020); Scoping Memo and Ruling (September 24, 2020); Resolution E-5080 (August 7, 2020); Order Instituting Rulemaking (May 14, 2020); Docket No. R.20-05-003.
RPS Rulemaking
On March 10, 2022, the Joint IOUs filed a Motion requesting authorization to submit their proposed modifications to the Market Offer Process via Tier 3 Advice Letter on April 28, 2022. The proposed modifications would allow implementation of Market Offer REC transactions to coincide with the start of Voluntary Allocation deliveries and provide cost savings.
Background: This proceeding addresses ongoing RPS issues. VCE submitted its Final 2020 RPS Procurement Plan on February 19, 2021, and its 2020 RPS Compliance Report on August 2, 2021.
D.22-01-004 directed VCE to include in its Final 2021 RPS Procurement Plan due February 17, 2022, a discussion “explain[ing] how mid-term reliability procurement obligations impact RPS compliance requirements and how they are included in the quantitative assessment" and update its Project Development Status section to provide additional narrative description of project status. In addition to receiving praise for its sections on portfolio diversity and reliability, VCE is identified as falling under the category of having its current contracts forecasted to meet its 65% long-term contract requirement in contrast to numerous other CCAs and ESPs. D.22-01-004 declined a request by CCAs to allow party comments early in the process on the timing and structure of RPS Procurement Plan filings, finding that the CPUC "do[es] not expect any substantial new filing requirements" and that the requirements have been well established by now. D.22-01-004 also approved a request by several CCAs and directed Energy Division to set a process whereby they inform a retail seller that its Final RPS Plan met the expectations of the Commission.
A pending Joint Motion by IOUs dated December 8, 2021 requests that the CPUC (1) expand the scope of this proceeding to address whether RECs retain their original PCC classification upon allocation under the Voluntary Allocation process; (2) issue guidance on the issue of the PCC classification of allocated RECs before LSEs are required to decide whether to accept allocations on May 1, 2022; and (3) clarify that pro forma Allocation Contracts will be reviewed in early 2022 via Tier 2 advice letter and that only Allocation Contracts materially deviating from the pro forma would be subject to further review through a Tier 1 Advice Letter.
Details: The Joint IOUs March 10, 2022, Motion seeks authorization for review via Tier 3 Advice Letter submission of their proposed modifications to the Market Offer Process. The proposed modifications would allow implementation of Market Offer transactions on January 1, 2023, to coincide with delivery of Voluntary Allocations, thereby generating revenue from the sale of RECs and reducing above-market costs “to benefit bundled service and departing load customers by optimizing the IOU’s PCIA portfolios.”
In D.22-01-025, the CPUC found that Gexa, an ESP that is currently not serving any load, met its procurement quantity requirement for the Compliance Period 2014-2016 and retired sufficient RECs.
The decision found, however, that by excluding certain non-modifiable standard terms and conditions in a RPS procurement contract with NextEra Energy Marketing, LLC, Gexa was out of compliance with the requirements in D.08-04-009, D.10-03-021, D.11-01-025, and D.13-11-024. The non-modifiable standard terms and conditions relate to transfer of RECs, tracking of RECs in WREGIS and compliance with applicable law. Gexa retroactively added the non-modifiable and certain modifiable standard terms and conditions to its contract after the Compliance Period had closed. 36 8
Despite this, the CPUC imposed a fine of $352,500 for the period that the REC Agreement underlying Gexa’s Compliance Report was out of compliance with the applicable RPS program rules.
Analysis: VCE has now met its 2021 RPS Procurement Plan requirements. D.22-01-025 provides another example of how the CPUC has strictly interpreted RPS compliance requirements and issued sizeable penalties in cases of non-compliance. The Commission refused to permit retroactive RPS procurement contract amendment to comply with the requirement to include the nonmodifiable terms and conditions. In addition, the Commission’s finding that Gexa complied with the long-term contract requirement warned was limited to the decision, and provided “in the future, we shall not accept any long-term contract that fails to demonstrate the required term of at least ten years.” Next Steps: VCE’s draft 2022 RPS Procurement Plan will be due in late spring or summer 2022 (exact date to be determined), and its RPS Compliance Report will be due August 1, 2022. R.18-07- 003 is expected to close in September 2022, with a new proceeding to be opened to address RPS issues going forward.
If authorized, the Joint IOUs will seek review of the Market Offer Process through a Tier 3 Advice Letter submitted April 28, 2022.
Additional Information: Joint Motion by IOUs Concerning Review of Market Offer Process (March 10, 2022); VCE’s Final 2021 RPS Procurement Plan (February 17, 2022); D.22-01-025 fining Gexa for RPS non-compliance (February 1, 2022); D.22-01-004 on draft 2021 RPS Procurement Plans (January 18, 2022); D.21-12-032 modifying the ReMAT tariff (December 16, 2021); D.21-11-029 amending RPS confidentiality rules (November 19, 2021); Petition for Modification of D.20-10-005 on ReMAT pricing (October 8, 2021); Ruling aligning IOU RPS Procurement Plan requirements with PCIA decision (May 26, 2021); Ruling establishing issues and schedule for 2021 RPS Procurement Plans (March 30, 2021); D.21-01-005 directing retail sellers to file final 2020 RPS Procurement Plans (January 20, 2021); Ruling on Staff proposal aligning RPS/IRP filings (September 18, 2020); Scoping Ruling (November 9, 2018); Docket No. R.18-07-003.
PCIA Rulemaking
On April 4, 2022, PG&E submitted Tier 2 advice letter proposing its pro forma Market Offer Contract, and requested proposed contract become effective on May 4, 2022, with protests/responses due April 25, 2022. On February 28, 2022, PG&E submitted Tier 2 advice letter proposing its pro forma Voluntary Allocation Contract and providing an updated timeline. Additionally, on March 8, 2022, Rulemaking 17-06- 026 was reassigned from Commissioner Martha Guzman Aceves to Commissioner John R.D. Reynolds.
Background: D.18-10-019 was issued on October 19, 2018, in Phase 1 of this proceeding and left the current PCIA in place, maintained the current brown power index, and adopted revised inputs to the benchmarks used to calculate the PCIA for energy RPS-eligible resources and resource adequacy capacity. Phase 2 relied primarily on a working group process to further develop a number of PCIA-related proposals. Three workgroups examined three issues: (1) issues with the highest priority: Benchmark True-Up and Other Benchmarking Issues; (2) issues to be resolved in early 2020: Prepayment; and (3) issues to be resolved by mid-2020: Portfolio Optimization and Cost Reduction, Allocation and Auction.
D.20-08-004, in response to the recommendations of Working Group 2, (1) adopted the consensus framework of PCIA prepayment agreements; (2) adopted the consensus guiding principles, except for one principle regarding partial payments; (3) adopted evaluation criteria for prepayment agreements; (4) did not adopt any proposed prepayment concepts; and (5) clarified that risk should be incorporated into the prepayment calculations by using mutually acceptable terms and conditions that adequately mitigate the risks identified by Working Group Two. 37 9
The Phase 2 Decision, D.21-05-030, addressed the recommendations of PCIA Working Group 3 and removed the cap and trigger for PCIA rate increases, authorized new Voluntary Allocation, Market Offer, and Request for Information processes for RPS contracts subject to the PCIA, and approved a process for increasing transparency of IOU RA resources. However, it did not provide unbundled customers proportional access to system and flexible RA products through the RA voluntary allocation and market offer process proposed by PCIA Working Group 3. Likewise, it declined to provide unbundled customers any access to GHG-Free energy on a permanent basis.
The CCA Parties’ Application for Rehearing of D.21-05-030 challenges the Decision’s rejection of the RA voluntary allocation and market offer and GHG-free energy allocation. It argues that D.21-05-030 violates Public Utilities Code Section 366.2(g), which guarantees CCA customers the full benefit of the resources for which they bear cost responsibility through the PCIA charge. While CCA customers pay for the RA and GHG-Free products in the PCIA portfolio, the Phase 2 Decision, provides only bundled customers preferential access to RA products and no access to GHG-Free energy on a long-term basis. The CCA Parties argue that since D.21-05-030 effectively requires unbundled customers to pay equally for benefits only bundled customers receive, the Phase 2 Decision also violates the Section 365.2 prohibition against cost-shifting among unbundled and bundled customers.
A Staff Proposal on which the August Ruling requested comments would move the Market Price Benchmark calculation date up by one month – from November 1 to October 1 – to allow for a “normal” proceeding schedule and enable flexibility in addressing last- minute issues. Staff’s analysis found that the effects of changes in the forecast RPS and RA adders on PCIA rates are relatively small and concluded that the largest driver of changes to PCIA rates would be the energy index.
D.22-01-023 modified the PCIA market price benchmark release date to October 1 and the deadline for ERRA forecast applications to May 15 to enable the Commission to timely issue decisions on ERRA forecast applications. It adopted party proposals to establish a policy for disposition of the year-end balance in the ERRA account and to modify the calculation of the ERRA trigger point and threshold. It also adopted party proposals to support efficient party access to ERRA forecast proceeding data.
It kept the proceeding open to consider additional Phase 2 issues, including:
• Whether greenhouse gas-free resources are under-valued in the PCIA, and if so, whether to adopt an adder or allocation mechanism.
• Whether to adopt a new method to include long-term fixed-price transactions in calculating the Renewables Portfolio Standard adder.
• Whether to modify the calculation of the PCIA energy index market price benchmark. • Whether to provide CCAs with access to confidential, market sensitive ERRA monthly reports information for the non-proceeding purpose of creating PCIA rate forecasts.
Details: PG&E submitted, in accordance with D.22-01-004, two proposed contracts for PCIA-eligible RPS resources: AL 6517-E (February 28, 2022) proposing a Voluntary Allocation Contract and AL 6551-E (April 4, 2022) proposing a Market Offer Contract.
AL 6517-E Voluntary Allocation Contract proposal
Since PG&E’s Voluntary Allocation Contract is a confirmation to PG&E’s Edison Electric Institute (EEI) Master Power Purchase and Sale Agreement (Master Agreement), similar to the existing confirmation used in PG&E’s bundled RPS energy sales, Voluntary Allocation participants will need a Master Agreement in place with PG&E prior to execution of the Voluntary Allocation Contract.
The terms of the proposed Voluntary Allocation Contract include:
38 10
• LSE’s are allowed to make a short-term or long-term allocation election for a “slice” of the PCIA-eligible RPS portfolio in proportion to the LSE’s vintaged allocation share, which is based on the LSE’s forecasted annual load share.
• Allocation elections must be made in 10% increments of the LSE’s forecasted annual load share, and LSE’s will pay the applicable year’s market price benchmark (MPB) for RPS attributes received.
• Long-term allocations are fixed over the delivery period of the Voluntary Allocation Contract and once accepted may not be declined in future years.
• A long-term allocation election is set as a fixed percentage of the LSE’s forecasted annual load share, and both the forecasted annual load share and the RPS energy delivery amounts will change from year-to-year based on updated forecasts of annual loads. • LSEs are able to resell their Voluntary Allocation shares of RPS energy, subject to the same RPS compliance requirements as IOU sales, and LSE reporting requirements will be established in the RPS proceeding.
No protests were filed, and PG&E’s requested effective date was March 30, 2022.
AL 6551-E Market Offer Contract proposal
PG&E submitted the Tier 2 Advice Letter 6551-E requesting approval of a pro forma Market Offer Contract for Power Charge Indifference Adjustment (PCIA)-eligible Renewables Portfolio Standard (RPS) resources, on April 4, 2022, as required by D.22-01-004. PG&E requests this Tier 2 AL submittal become effective on May 4, 2022. Protests/responses are due April 25, 2022.
This proposed Market Offer Contract is specific to the requirement of D.21-05-030 that all PCIA-eligible RPS energy remaining after a Voluntary Allocation be offered for sale in the Market Offer.
The other two requirements of D.21-05-030 – that the Market Offer process 1) be based upon existing processes, rules, oversight requirements, and reporting requirements for REC solicitations previously approved in the Commission’s RPS proceeding; and 2) include rules for utility participation in utility-administered solicitations – were addressed in the IOU’s Joint Motion in R.18- 07-003 (filed March 10, 2022).
Since PG&E’s Market Offer Contract is a confirmation to PG&E’s Edison Electric Institute (EEI) Master Power Purchase and Sale Agreement (Master Agreement), similar to the existing confirmation used in PG&E’s bundled RPS energy sales, Market Offer process participants will need a Master Agreement in place with PG&E prior to execution of the Market Offer Contract.
Details of the proposed pro forma Market Offer Contract include:
• A Market Offer participant may bid for all the PCIA-eligible RPS portfolio that remains following Voluntary Allocation.
• PG&E proposes to deliver the PCIA-eligible RPS energy remaining after Voluntary Allocation over the final two years of the current RPS compliance period (i.e., 2023 & 2024) for reasons that include reducing administrative risk, providing flexibility for all LSEs, and enabling reevaluation for future Market Offers.
The proposed contract differs from PG&E’s CPUC-approved bundled RPS energy sale contract in the products offered and their delivery periods. The RPS energy sale contract only includes fixed volumes of bundled RECs available for purchase in calendar year 2022, while the proposed contract includes portions of PG&E’s PCIA-eligible RPS portfolio that remain unallocated following Voluntary Allocation that will be delivered over 2023 and 2024, like PG&E’s existing carbon-free allocation contract.
39 11
Analysis: The two proposed contracts for procurement of PCIA-eligible RPS resources provide details of the terms for procurement of PCIA-eligible RPS resources under the Voluntary Allocation and Market Offer processes. Specifically, they address product quantities, delivery periods, and pricing in the case of Voluntary Allocation.
Next Steps: PG&E posted a webpage with updated timelines for 2022 Voluntary Allocations:
• April 2022: PG&E completes initial 2023 load forecasting in line with Meet-and-Confer process within ERRA and/or RA proceedings.
• May 16, 2022: PG&E files ERRA Forecast Application and informs LSEs of initial forecast allocation shares for 2023 Voluntary Allocation.
• May 16 – June 10, 2022: Voluntary Allocation contracting with LSEs • June 10, 2022: Final day for LSEs to submit Voluntary Allocation elections to PG&E. • June 2022: PG&E completes Voluntary Allocation contracting. • Summer 2022: LSEs file Draft 2022 RPS Plans informed by Voluntary Allocation elections. • October 2022: Each IOU informs LSEs of updated allocation shares for 2023 Voluntary Allocations.
Additional Information: Market Offer Contract (AL 6551-E) for PCIA-eligible RPS Resources remaining after VA (April 4, 2022); Voluntary Allocation Contract (Advice 6517-E) for PCIA-eligible RPS Resources (February 28, 2022); D.22-01-023 on Phase 2 (approved January 27, 2021); Ruling requesting comments on PCIA forecasting data access (November 5, 2021); Voluntary Allocation Methodology Advice Letter 6305-E (October 25, 2021); Ruling requesting comments (September 17, 2021); CalCCA Application for Rehearing of D.21-05-030 (June 23, 2021: D.21-05-030 on PCIA Cap and Portfolio Optimization (May 24, 2021); D.21-03-051 granting petition to modify D.17-08-026 (March 26, 2021); Amended Scoping Memo and Ruling (December 16, 2020); Joint IOUs PFM of D.18-10-019 (August 7, 2020); D.20-08-004 on Working Group 2 PCIA Prepayment (August 6, 2020); D.20-06-032 denying PFM of D.18-07-009 (July 3, 2020); D.20-03-019 on departing load forecast and presentation of the PCIA (April 6, 2020); D.20-01-030 denying rehearing of D.18-10-019 as modified (January 21, 2020); D.19-10-001 (October 17, 2019); D.18-10-019 Track 2 Decisions adopting the Alternate Proposed Decision (October 19, 2018); D.18-09-013 Track 1 Decision approving PG&E Settlement Agreement (September 20, 2018); Docket No. R.17-06-026.
NEW PG&E 2021 ERRA Compliance
PG&E filed its 2021 ERRA Compliance application on February 28, 2022, in which it requests the CPUC find that the company complied with its CPUC-approved Bundled Procurement Plan, reasonably managed utility-owned generation facilities, and made other reasonable expenditures and accounting entries consistent with CPUC directives.
Background: N/A
Details: PG&E requests that the CPUC find that during 2021:
• It complied with its CPUC-approved Bundled Procurement Plan (BPP) in the areas of fuel procurement, administration of power purchase contracts, greenhouse gas compliance instrument procurement, resource adequacy sales, and least-cost dispatch of electric generation resources.
• It managed its utility-owned generation (UOG) facilities reasonably. 40 12
• Its expenditures in the Green Tariff Shared Renewables Memorandum Account (GTSRMA) were reasonable.
• Its entries in the Portfolio Allocation Balancing Account (PABA), Energy Resource Recovery Account (ERRA), Green Tariff Shared Renewables Balancing Account (GTSRBA), Disadvantaged Community – Single-Family Affordable Solar Homes (DAC SASH) balancing account (DACSASHBA), Disadvantaged Community - Green Tariff Balancing Account (DACGTBA), and Community Solar Green Tariff Balancing Account (CSGTBA) were consistent with applicable tariffs and CPUC directives.
PG&E also presents its Central Procurement Entity’s administrative costs recorded to the Centralized Local Procurement Sub-Account (CLPSA) in the New System Generation Balancing Account (NSGBA).
PSPS Impacts
PG&E states that since the CPUC is currently considering the utilities’ proposed common methodology for calculating unrealized volumetric sales and unrealized revenues resulting from PSPS events in the consolidated Phase II 2019 ERRA Compliance proceeding, it has not included with this 2021 ERRA Compliance application any testimony addressing the calculation of unrealized volumetric sales or unrealized revenues. PG&E plans to send an email to the assigned ALJ requesting direction regarding whether and in what format PSPS information should be presented as part of this Application once the Commission has resolved the issue in the Phase II 2019 ERRA Compliance proceeding.
Testimony
Regulatory case documents are available here by selecting “ERRA 2021 PGE - Compliance…” from the “Case” drop down. PG&E’s testimony is here (423 pages). It covers:
• Chapter 1 Least-Cost Dispatch and Economically Triggered Demand Response • Chapter 2 Utility-Owned Generation: Hydroelectric
• Chapter 3 Utility-Owned Generation: Fossil and Other Generation • Chapter 4 Utility-Owned Generation: Nuclear
• Chapter 5 Review Entries Recorded in the Disadvantaged Community – Green Tariff Balancing Account and the Community Solar Green Tariff Balancing Account • Chapter 6 Generation Fuel Costs and Electric Portfolio Hedging • Chapter 7 Greenhouse Gas Compliance Instrument Procurement • Chapter 8 Resource Adequacy
• Chapter 9 Contract Administration
• Chapter 10 CAISO Settlements and Monitoring
• Chapter 11 Review Recorded in the Green Tariff Shared Renewables Memorandum Account and the Green Tariff Shared Renewables Balancing Account • Chapter 12 Summary of PABA Entries for the Record Period • Chapter 13 Summary of ERRA Entries for the Record Period • Chapter 14 Maximum Potential Disallowance
41 13
• Chapter 15 Review Entries Recorded in the Disadvantaged Community – Single-family Affordable Solar Homes Balancing Account and the Disadvantaged Community - Single-family Affordable Solar Homes Memorandum Account • Chapter 16 Central Procurement Entity – Entries Recorded in the Centralized Local Procurement Sub-Account
Issues
PG&E proposes the following issues be considered in this proceeding:
• Whether PG&E, during the record period, prudently administered and managed the following, in compliance with all applicable rules, regulations, and Commission decisions, including but not limited to Standard of Conduct No. 4 (SOC 4):
o Utility-Owned Generation Facilities
o Qualifying Facilities (QF) Contracts and Non-QF Contracts. If not, what adjustments, if any, should be made to account for imprudently managed or administered resources? • Whether PG&E achieved least-cost dispatch of its energy resources and economically triggered demand response programs pursuant to SOC 4;
• Whether the entries recorded in the Energy Resource Recovery Account and the Portfolio Allocation Balancing Account are reasonable, appropriate, accurate, and in compliance with Commission decisions;
• Whether PG&E’s greenhouse gas instrument procurement complied with its Bundled Procurement Plan;
• Whether PG&E administered resource adequacy procurement and sales consistent with its Bundled Procurement Plan;
• Whether the costs incurred and recorded in the following accounts are reasonable and in compliance with the applicable tariffs and Commission directives:
o Green Tariff Shared Renewables Memorandum Account;
o Green Tariff Shared Renewables Balancing Account;
o Disadvantaged Community - Single Family Solar Affordable Homes Balancing Account; o Disadvantaged Community - Green Tariff Balancing Account; o Community Solar Green Tariff Balancing Account;
o Centralized Local Procurement Sub-Account.
• Whether there are any safety considerations raised by this Application Analysis: The proceeding has just begun, and its full scope is yet to be determined. A CPUC determination in the Phase II 2019 ERRA Compliance proceeding on the utilities’ proposed common methodology for calculating unrealized volumetric sales and unrealized revenues resulting from PSPS events could expand the scope of this proceeding.
Next Steps: Deadline for filing protest/response ended April 8, 2022.
PG&E has proposed the following timeline:
• May 11, 2022: Prehearing Conference
• July 22, 2022: Cal Advocates and Intervenor Testimony 42 14
• August 26, 2022: PG&E Rebuttal Testimony
• September 2022: Settlement Discussions
• September 13-16, 2022: Evidentiary Hearings
• October 17, 2022: Opening Briefs
• November 4, 2022: Reply Briefs
Additional Information: PG&E 2021 ERRA Compliance Application (February 28, 2022); Docket No. A.22-02-015.
PG&E Phase 2 GRC
The single carryover issue of material fact about the MGCC Property Tax Adder was resolved with issuance of a Final Decision adopting the Joint Stipulation on March 18, 2022. PG&E’s MGCC Report was filed March 17, 2022, and PG&E filed its non-NEM export compensation proposal for BEV on March 24, 2022.
Background: PG&E’s 2020 Phase 2 General Rate Case (GRC) addresses marginal cost, revenue allocation and rate design issues covering the next three years. D.21-11-016 largely adopted PG&E’s proposed marginal costs and methodologies for deriving them but adopted marginal connection equipment costs proposed by the Agricultural Energy Consumers Association and marginal transmission capacity costs proposed by the Solar Energy Industries Association. It also adopted, without modification, several uncontested settlements on rate design issues (residential rate design settlement; settlement on streetlight rate design issues; Economic Development Rate (EDR) settlement; agricultural rate design; C&I rate design) and revenue allocation.
With respect to CCA issues, the adopted EDR settlement noted that PG&E and the Joint CCAs agreed to create a collaborative process “to identify and vet EDR applicants that will make it easier for CCAs to provide a generation rate reduction to CCA customers who qualify for PG&E’s EDR.” D.21-11-016 also approved the agricultural rate design settlement that proposed that the unbundling of the PCIA from the generation component of bundled rates be designed as a flat PCIA rate, not differentiated by season or TOU period, consistent with the PCIA rate design for DA and CCA customers. The PCIA rate for bundled customers will use the most recent vintage of the PCIA rate.
Finally, D.21-11-016 approved the revenue allocation settlement, including its proposal that before allocating generation revenue, instead of including the PCIA revenue in the overall generation revenue requirement, PCIA revenue will be removed from each customer class’s revenue at present rates based on the most recent vintage PCIA rates. Then, PG&E will use the adopted allocation for generation to allocate the PCIA revenue requirement to customer classes.
On January 18, 2022, parties filed a Settlement Agreement includes the following terms of the Stage 1 RTP Pilot:
Eligibility: PG&E’s bundled customers who are eligible for the B-20, B-6 and E-ELEC rates may participate on an opt-in basis. CCAs will need to affirmatively decide to participate in the Stage 1 Pilots for their customers to be eligible. PG&E agrees to work with its twelve CCAs to seek agreement from one or two of them to participate in the Stage 1 Pilots, if possible.
Duration: Stage 1 Pilots shall have a duration of 24 months, subject to potential extension.
Enrollment: PG&E will make its best efforts to program and make available for enrollment the three Stage 1 RTP rates by October 1, 2023.
Pricing: The RTP element of the Stage 1 Pilot RTP rates will replace the generation component of the customer’s otherwise applicable rate schedule. The remaining transmission, distribution, Public 43 15
Purpose Program and other charges and taxes remain the same as the otherwise applicable underlying rate. The generation component to be used in the Stage 1 Pilots’ RTP rates will include:
(1) a Marginal Energy Charge, (2) a Marginal Generation Capacity Cost, and (3) a Revenue Neutral Adder (designed to make the forecasted annual generation revenue collected under the three Stage 1 Pilot RTP rates revenue neutral to the base schedule). Residential customers would have 1 year bill protection. There would be a limited amount of participation incentives as well.
All development, implementation, and operating costs for the Stage 1 Pilots, as well as for the separate Customer Research Study for residential, agricultural, and small commercial customers, will be recovered in distribution rates from all customers.
Details: The Final Decision, D.22-03-012, adopting the Joint Stipulation, or otherwise resolving the single carryover issue of material fact about the MGCC Property Tax Adder, was issued March 18, 2022. This Decision, in accordance with the PG&E/CLECA Joint Stipulation, adopts a property tax factor of 1.25% for the 2021-2026 marginal generation capacity cost (MGCC) for new customer rates effective June 1, 2022. A corrected version of PG&E’s MGCC Report was filed on March 17, 2022.
PG&E proposed an export compensation mechanism for non-NEM customers enrolled in the Day-Ahead Hourly Real Time Pricing (DAHRTP) rate. The proposed Business Electric Vehicle (BEV) Pilot will include customers on any BEV rate and not only customers on the DAHRTP Commercial Electric Vehicle (CEV) rate. Compensation for energy will come from the CAISO market participation entity, and to the extent available will include compensation for Resource Adequacy. PG&E has not yet proposed a budget for the Pilot but has proposed a cost-effectiveness evaluation and a report on lessons learned to be issued two years after implementation. The proposal includes a market participation option instead of a tariff rate to allow all BEV customers in the PG&E service territory (including customers of CCAs or direct access providers) to participate without requiring each retail LSE to offer its own tariff rate. Some key considerations that PG&E has requested be addressed through a stakeholder process include interconnection jurisdiction, resource adequacy compensation methodology, and managing and monitoring customer revenue generation.
Analysis: This phase of the proceeding could impact real-time pricing rate design issues for PG&E customers. If the settlement agreement is adopted, VCE could elect to allow its customers to participate in the Stage 1 RTP Pilot. The Settlement Agreement provides that cost recovery of development, implementation, and operating costs for the Stage 1 Pilots, as well as for the separate Customer Research Study, would be recovered in distribution rates that both bundled PG&E and VCE customers pay.
Next Steps: The proceeding remains open to address RTP issues, and PG&E testimony on its RTP Proposal is due April 13, 2022. An Advice Letter outlining pilot details is expected from PG&E, the timing of which will be addressed in the April 13 testimony.
Additional Information: PG&E Proposal for non-NEM export compensation (March 24, 2022); PG&E MGCC Report (corrected) (March 17, 2022); Decision on property tax adder (March 18, 2022); Ruling on timing to respond to PG&E/CLECA Motion (January 25, 2022); Motion by PG&E/CLECA to establish a separate expedited schedule (January 21, 2022); PG&E Motion on MGCC Study (January 18, 2022); PG&E Motion (January 18, 2022); Motion to Adopt Settlement Agreement (January 18, 2022); D.21-11-016 on revenue allocation and rate design (November 19, 2021); Amended Scoping Memo and Ruling (August 25, 2021); Ruling bifurcating RTP issues into separate track (February 2, 2021); D.20-09-021 on EUS budget (September 28, 2020); Exhibit (PG&E-5) (May 15, 2020); Scoping Memo and Ruling (February 10, 2020); Application, Exhibit (PG&E-1): Overview and Policy, Exhibit (PG&E-2): Cost of Service, Exhibit (PG&E-3): Revenue Allocation, Rate Design and Rate Programs, and Exhibit (PG&E-4): Appendices (November 22, 2019); RTP Pilot Docket No. A.20-10-011; Phase 2 GRC Docket No. A.19-11-019. 44 16
PG&E Phase 1 GRC
PG&E filed an Amended Application and submitted supplemental testimony on wildfire mitigation programs in March 2022. A March 10 ALJ Ruling denied the Motion to Shorten Time filed by TURN, PG&E, and PAO, and suspended the March 30, 2022, deadline for intervenor testimony pending a ruling on their February 16, 2022, Motion to Modify the Schedule. PG&E filed its recorded expense and capital cost data for 2021 on March 9, 2022. Public Participation Hearings were held on three days during March 2022 regarding the February 2022 joint report, submitted by PG&E and Caltrain, on the status of the third-party audit of costs that PG&E will incur to upgrade the East Grand and FMC substations in connection with Caltrain’s project to electrify its commuter rail system between San Jose and San Francisco.
Background: Phase 1 GRC applications cover the revenue requirement, including the functionalization of costs into categories such as electric distribution or generation, which impact which customers (bundled, unbundled, or both) pay for the costs through rates. Phase 2 GRC applications cover cost allocation (i.e., assigning costs to customer classes, such as Residential) and rate design issues. PG&E proposes to have a second and third track of this Phase 1 GRC to request reasonableness review of certain memorandum and balancing account costs to be recorded in 2021 and 2022. PG&E will file its next Phase 2 GRC application by September 30, 2021.
On August 25, 2021, the CPUC Executive Director granted PG&E’s request to delay filing its next Phase 2 GRC application until September 30, 2024.
In their protest of PG&E’s application, the Joint CCA parties identified the following list of preliminary issues they plan to examine or address in this proceeding:
Compliance with the Commission’s Cost Allocation Directives in D.20-12-005 (PG&E’s most recently decided Phase 1 GRC decision), including PG&E’s cost functionalization methodology, wildfire costs, and allocation of Customer Care costs.
Reinvestments in and Recovery of Legacy Owned Generation Costs, including solar contract renewals or the decommissioning of legacy owned assets, which impact Joint CCAs’ customers through the PCIA and related vintaging of costs.
Other Issues that May Require Further Investigation and Analysis, including how costs related to PSPS Events should be tracked and allocated; whether and how any funds that PG&E receives as credits (such as Department of Energy settlement funds) should be allocated to departing load customers; and how PG&E’s regionalization proposal impacts its relationship and dealings with CCAs and their customers.
The October 1, 2021, Scoping Memo and Ruling divided the proceeding into two tracks. Track 1 will address the majority of matters, including PG&E’s requested revenue requirement together with safety and environmental and social justice issues. Track 2 will address the narrower matters of the reasonableness of the 2019-2021 actual costs recorded in the named memorandum accounts and balancing accounts and, to the extent relevant, also address safety and environmental and social justice.
PG&E’s pending November 5, 2021, Motion requests extending the turn-around time for filing rebuttal testimony from 30 days to 45 days; delaying the start of evidentiary hearings by three weeks to accommodate the proposed rebuttal testimony timeline; and requested an earlier resolution that Q4 2022 as indicated in the Scoping Memo and Ruling of PG&E’s July 16, 2021, Motion for a January 1, 2023 effective date for its 2023 revenue requirement.
Details: On March 10, 2022, PG&E filed an Amended Application and submitted supplemental testimony on wildfire mitigation programs. Also on March 10, 2022, the ALJ issued a Ruling on the February 25 Motion filed by TURN, PG&E, and PAO denying their request to shorten time for responses to PG&E’s amended application and supplementary testimony on wildfire mitigation 45 17
programs, and suspending the March 30, 2022, submission date for intervenor testimony pending a ruling on the February 16, 2022, Motion to Modify the Schedule filed by TURN, PG&E, and the PAO.
On March 9, 2022, PG&E submitted its recorded expense and capital data testimony for 2021.
PG&E and Caltrain submitted a joint report on the status of the third-party audit of costs that PG&E will incur to upgrade the East Grand and FMC substations in connection with Caltrain’s project to electrify its commuter rail system between San Jose and San Francisco. PG&E and Caltrain also requested to move consideration of PG&E’s proposal for cost recovery of Caltrain Project costs from Track 1 to Track 2 of PG&E’s 2023 GRC and proposed a schedule for the submission of testimony reporting on the Audit.
Analysis: This proceeding will set the revenue requirement, and thereby ultimately impact PG&E’s rates, for 2023-2026. It will establish how the revenue requirement components will be functionalized, which impact whether the ultimately approved costs will be borne by PG&E bundled customers, unbundled customers like VCE customers, or both. It will also address numerous other issues raised in PG&E’s application that could impact rates, policies, and programs implemented by PG&E.
Next Steps: The March 30, 2022, deadline for intervenor testimony was suspended pending a ruling on the February 16, 2022, Motion to Modify the Schedule. The next steps in Track 1 are a ruling on the procedural schedule modifications and a PG&E affordability metrics report at least one month before intervenor testimony. Proposed and final decisions are anticipated in Q2 2023.
In Track 2, public participation hearings are scheduled for November 2022, and intervenor testimony is due November 14, 2022. A proposed decision is anticipated in Q2 2023, and a final decision is anticipated in Q3 2023.
Additional Information: ALJ Ruling denying Motion to Shorten Time, accepting PG&E’s Amended Application, and suspending intervenor testimony deadline (March 10, 2022); PG&E’s Amended Application (March 10, 2022); PG&E Affordability Metrics Report (February 23, 2022); ALJ Ruling on Public Participation Hearings (February 2, 2022); PG&E/Caltrain Report (February 1, 2022); Ruling denying PG&E Motion to submit supplemental testimony (November 12, 2021); Motion of PG&E to modify procedural schedule (November 5, 2021); Scoping Memo and Ruling (October 1, 2021); PG&E Application (June 30, 2021); Docket No. A.21-06-021.
RA Rulemaking (2023-2024)
On March 18, 2022, the CPUC issued a Decision on Phase 1 of Implementation Track Modifications that made several changes to the CPE, including changes encouraging LSEs to self-show resources and modifying the timeline of CPE activities. This Decision concludes Phase 1 of the Implementation Track Modifications.
Background: In Track 3B.2 of the 2021-2022 RA Rulemaking (R.19-11-009), D.21-07-014 rejected CalCCA/SCE's proposal for restructuring the RA program, and instead found that PG&E’s "slice-of-day" proposal best addresses the identified principles and the concerns with the current RA framework and if is further developed, is best positioned to be implemented in 2023 for the 2024 compliance year. Therefore, it directed parties to collaborate to develop a final restructuring proposal based on PG&E’s slice-of-day proposal through a series of workshops.
The December 2, 2021, Scoping Memo and Ruling divided the proceeding into an Implementation Track and Reform Track. The Reform Track encompasses consideration of a final proposed framework and the slice-of-day workshop report.
The Implementation Track is sub-divided into Phases 1, 2, and 3:
46 18
• Phase 1 of the Implementation Track considered critical modifications to the CPE structure and concluded in March 2022 with issuance of D.22-03-034. • Phase 2 consists of the Commission’s consideration of flexible capacity requirements for the following year, local capacity requirements for the next three years, and the highest priority refinements to the RA program, which include: modifications to the Planning Reserve Margin Qualifying Capacity Counting Conventions, which among other proposals will consider the Energy Division's biennial update to the Effective Load Carrying Capability values for wind and solar resources, including the development of regional values for wind resources. Phase 2 proposals were submitted in January 2022 and this phase is expected to conclude in June 2022. Neither CalCCA nor any CCAs individually filed a Phase 2 proposal. • Phase 3 will consider the 2024 program year requirements for flexible RA, and the 2024-2026 local RA requirements. Other modifications and refinements to the RA program, as identified in proposals by parties or by Energy Division may also be considered. Phase 3 is expected to conclude by June 2023
Details: The CPUC adopted SCE’s proposal with CalCCA’s modifications to the PD of requirements for non-performance of self-shown local resources such that 1) self-showing LSEs are allowed to provide a substitute resource to replace non-performing self-shown local resources, and 2) LSEs will be allocated, on a load ratio share basis, any backstop procurement costs charged to the CPE in the event the CAISO makes a local CPM designation for an individual deficiency. The CPUC also replaced the previous requirement (Ordering Paragraph 3 in D.20-12-006) that a shown resource must be documented on an agreement as determined by the CPE with new attestation requirements for an LSE electing to self-show a local resource to the CPE, as follows:
• The LSE has the capacity rights to the RA resource for the self-shown period; • The LSE intends to self-show the RA resource on monthly and annual RA plans to satisfy its system or flexible RA needs; and,
• That compensated self-shown resources under the LCR RCM meet the eligibility requirements under D.20-12-006, if applicable.
Given the shortfalls in the PG&E CPE’s procurement process and the low participation rates in the CPE solicitation process, the CPUC is requiring LSEs that decline to self-show or bid to submit a justification with their year-ahead RA filing explaining their rationale for informational purposes for the Commission. Also, an LSE’s self-shown commitment for years 1 and 2 must be firm, but self-shown local resources for year 3 may be replaced like-for-like with other local resources.
The Decision modified the RA central procurement entity (CPE) selection process by removing the local effectiveness factors as a criterion and clarifying that length of contract term requirements are not authorized by the Commission and that the CPE must consider bids of any contract term length greater than or equal to one month. Additionally, the Decision allows CPEs to procure outside of the annual solicitation process if there are deficiencies following the CPEs’ annual solicitation and only to cover those deficiencies, and CPEs are encouraged to fill those positions to the extent possible before initial RA allocations in July.
The CPUC adopted a modified CPE procurement timeline under which LSEs in the PG&E TAC make self-shown commitment to the CPE for applicable RA years no later than mid-May, LSEs receive initial RA allocations in July and updated CAM credits procured by the CPE in August, LSEs receive final year-ahead system and flexible RA allocations in September, and final LSE showings are made by the end of October.
Analysis: The Decision made several changes to the CPE, including changes encouraging LSEs to self-show resources and modifying the timeline of CPE activities. The results of the LOLE study 47 19
could impact the thinking and formation of the slice-of-day reliability framework being developed in the RA Reform Track of this proceeding that seeks to ensure load will be met in all hours of the day, not just during gross peak demand hours and would move RA from a monthly compliance obligation to a seasonal obligation.
Next Steps: The procedural schedule for the ongoing tracks and working groups are as follows:
Phase 1
• Concluded in March 2022 with issuance of D.22-03-034
Phase 2
• CAISO draft 2023 LCR Report: April 15, 2022
• Comments on draft 2023 LCR Report: April 22, 2022
• CAISO final 2023 LCR and FCR Report: April 29, 2022
• Comments on final 2023 LCR and FCR Report: May 6, 2022 • Reply comments on final 2023 LCR and FCR Report: May 13, 2022 • Proposed Decision: May 2022
• Final Decision: June 2022
Reform Track
• BTM Counting Convention Working Group meeting dates (9am-1pm): February 22, 2022 meeting was postponed (new date TBD).
Additional Information: D.22-03-034 on Phase 1 of Implementation Track Modifications (March 18, 2022); Workshop Report (February 28, 2022); Ruling modifying Phase 2 schedule and providing LOLE study and CEC Working Group Report (February 18, 2022); Proposed Decision on CPE revisions (February 10, 2022); Ruling modifying procedural schedule (December 10, 2022); Scoping Memo and Ruling (December 2, 2021); Order Instituting Rulemaking (October 11, 2021); Docket No.
R.21-10-002.
RA Rulemaking (2021-2022)
On March 18, 2022, the CPUC issued a Proposed Decision that would deny OhmConnect’s September 2021 Petition for Modification of D.20-06-031 to increase the demand response Maximum Cumulative Capacity limit of 8.3% to 11.3%.
Background: This proceeding is divided into 4 tracks, with the focus in 2021 being on Tracks 3 and 4, described in more detail below. Going forward, a workshop process will be used to generate an RA restructuring proposal in Q1 2022, with the goal of implementing more substantial program changes in 2023 for the 2024 RA compliance year.
Track 3A (completed): D.20-12-006, issued December 2020, addressed the issues of the financial credit mechanism and competitive neutrality rules for the CPEs. It approved CalCCA’s proposed “Option 2,” with modifications, which allows the CPE to evaluate the shown resource alongside bid resources to assess the effectiveness of the portfolio. The financial credit mechanism will apply only to new preferred or energy storage resources (i.e., non-fossil-based resources) with a contract executed on or after June 17, 2020. It also adopted PG&E’s competitive neutrality proposal for PG&E’s service territory. Finally, D.20-12-006 found that the Local Capacity Requirements Working 48 20
Group should continue to discuss recommendations and develop solutions for consideration in CAISO’s 2022 LCR process.
Track 3B.1 and Track 4 (completed): D.21-06-029, issued June 2021, adopted local capacity requirements for 2022-2024, flexible capacity requirements for 2022, and refinements to the RA program. It adopted a series of changes to the Maximum Cumulative Capacity (MCC) buckets, which function as limits on the amount of RA that may be procured from resources with different characteristics. It required resources in all MCC buckets to have availability on Saturday for the 2022 RA compliance year. This had the effect of modifying the DR and Categories 1 and 2 buckets to add Saturday. DR contracts with an execution date prior to the effective date of D.21-06-029 will be grandfathered and not subject to the new Saturday availability requirement. It also revised the Category 1 availability criteria (4 consecutive hours of availability from 4-9 p.m. from May-September) to increase the monthly minimum availability from 40 hours to 100 hours (and 96 hours for February) and to require year-round availability. D.21-06-029 requested that the CEC launch a stakeholder working group process as part of the 2021 IEPR and make recommendations on several topics intended to support a comprehensive and consistent DR measurement and verification strategy, to be considered for implementation during the 2023 RA compliance year. Finally, D.21-06- 029 added a new RA deficiencies penalty structure to the current penalty structure, layering on a penalty multiplier for repeat RA deficiencies based on a point system beginning in the 2022 RA compliance year.
Track 3B.2 (Ongoing, now in R.21-10-002): D.21-07-014 rejected CalCCA/SCE's proposal for restructuring the RA program, and instead found that PG&E’s "slice-of-day" proposal best addresses the identified principles and the concerns with the current RA framework and if is further developed, is best positioned to be implemented in 2023 for the 2024 compliance year. Therefore, it directed parties to collaborate to develop a final restructuring proposal based on PG&E’s slice-of-day proposal through a series of workshops. The PG&E Slice of Day Framework will establish RA requirements based on a “slice-of-day” framework, which seeks to ensure load will be met in all hours of the day, not just during gross peak demand hours. The proposal also attempted to ensure there is sufficient energy on the system to charge energy storage resources. The proposed framework would establish RA requirements for multiple slices-of-day across seasons and would establish a counting methodology to reflect an individual resource’s ability to produce energy during each respective slice (e.g., six four-hour periods of the day).
Details: OhmConnect’s Petition for Modification of D.20-06-031 requested that the CPUC raise the demand response Maximum Cumulative Capacity limit of 8.3% to 11.3%. OhmConnect argued that the change is needed to meet the requirements of the Governor’s Emergency Proclamation ordering state energy agencies to expedite and expand DR programs to reduce the likelihood of future rotating power outages, but the Proposed Decision would find that such portion of the Governor's proclamation expired. The Proposed Decision would also find that the PFM was not timely because it was filed in September 2021 (more than 1 year after D.20-06-031).
Analysis: Increasing the demand response cap, as OhmConnect requested and CCAs and others supported, would allow LSEs like VCE to procure a higher percentage of demand response resources to meet RA obligations than is currently allowed under the RA compliance rules. Any future proposals to broadly increase the demand response cap will require consideration of how doing so will affect grid reliability.
Next Steps: Comments on the PD are due April 7, replies are due April 12, and the PD may be adopted, at earliest, at the April 21 CPUC meeting.
Additional Information: Proposed Decision denying OhmConnect’s September 2021 petition; OhmConnect’s Petition for Modification (September 9, 2021); D.21-07-014 on restructuring the RA program with PG&E Slice of Day proposal (July 16, 2021); D.21-06-029 adopting local capacity obligations for 2022-2024, flexible capacity obligations for 2022, and refinements to the RA program (approved June 24, 2021); 2019 Resource Adequacy Report (March 19, 2021); Scoping Memo and 49 21
Ruling for Track 3B and Track 4 (December 11, 2020); D.20-12-006 on Track 3.A issues (December 4, 2020); D.20-06-031 on local and flexible RA requirements and RA program refinements (June 30, 2020); Order Instituting Rulemaking (November 13, 2019); Docket No. R.19-11-009.
PG&E 2020 ERRA Compliance
On March 16, 2022, the CPUC issued a Proposed Decision for Phase 1 in which the Settlement Agreement filed by the parties on October 15, 2021, was found to be reasonable and therefore resolves all the disputed issues in this proceeding. Phase 2 of the proceeding, which remains open, will address issues related to unrealized sales and revenues resulting from PG&E’s Public Safety Power Shutoff events in 2020.
Background: The annual ERRA Compliance proceeding reviews the utility’s compliance with CPUC-approved standards for generation-procurement and cost recovery activity occurring in the preceding year, such as energy resource contract administration, least-cost dispatch, fuel procurement, and balancing account entries.
PG&E is requesting that the CPUC find it complied with its Bundled Procurement Plan (BPP) in the areas of fuel procurement, administration of power purchase contracts, greenhouse gas compliance instrument procurement, resource adequacy sales, and least-cost dispatch of electric generation resources for the 2020 calendar year. It also seeks a CPUC finding that it managed its utility-owned generation (UOG) facilities reasonably, although it recommends that CPUC review of outages at Diablo Canyon Power Plant related to the Unit 2 main generator be delayed to the 2021 ERRA Compliance review. Of significance to the PCIA, PG&E is requesting the CPUC find that entries in its Portfolio Allocation Balancing Account (PABA), which trues up the above-market forecast of generation resources recovered through the PCIA with actual recorded costs and revenues, are accurate.
PG&E’s procurement costs recorded across the portfolio were $158.8 million higher than forecasted, allegedly due to higher-than-forecast RPS-eligible contracts, as offset by higher than forecast retained RPS and retained RA, as well as lower than forecast fuel costs for UOG facilities. Activity recorded in the PABA includes the following categories: Revenues from Customers, RPS Activity, RA Activity, Adopted UOG Revenue Requirements, CAISO Related Charges and Revenues, Fuel Costs, Contract Costs, GHG Costs, and Miscellaneous Costs. PG&E has redacted as confidential its 2020 actual and forecast costs for these categories, so it is unclear from the public filing what the magnitude is regarding the difference between actual and forecast costs for each category.
The Scoping Memo and Ruling specifies the proceeding will be divided into two phases. Phase 1 will address whether PG&E (1) prudently administered and managed Utility-Owned Generation facilities and QF and non-QF contracts, (2) achieved least-cost dispatch of energy resources, (3) had reasonable, accurate, and appropriate ERRA and PABA entries, and (4) administered RA procurement and sales consistent with its Bundled Procurement Plan, among other issues. Phase 2 issues may be amended based on the outcome of Phase 2 of PG&E’s 2019 ERRA compliance proceeding. The tentative list of issues include whether sales forecasting methods for adjusting revenue requirement under current decoupling policy should be adjusted to account for power not sold or purchased during a Public Safety Power Shutoff (PSPS) event in 2020, whether it is appropriate for PG&E to return the revenue requirement equal to the estimated unrealized volumetric sales and unrealized revenue resulting from the PSPS events in 2020, and the appropriate methodology for calculating PG&E’s unrealized volumetric sales and unrealized revenues resulting from 2020 PSPS events.
In testimony, Joint CCAs recommended a number of accounting adjustments that would reduce PUBA balances by more than $14.3 million. They also recommend the CPUC acknowledge that PG&E’s internal audit of its PABA concluded that the processes and controls governing PABA 50 22
accounting are “Not Adequate,” and that PG&E remedy the identified deficiencies. Furthermore, they recommend that the CPUC clarify that future procurement expenses incurred by PG&E acting as the Central Procurement Entity will be reviewable in ERRA Compliance proceedings, and that PG&E should demonstrate the effect of such procurement, if any, on the PABA and ERRA balancing accounts.
PG&E agreed in rebuttal testimony that the accounting for PCIA costs attributed to customers taking service on the GTSR tariff should be adjusted to correctly credit PABA for the 2019 and 2020 record periods, reducing the PABA balance by approximately $5 million. PG&E also agreed to present testimony in its 2021 ERRA Compliance proceeding addressing actions taken in response to the Internal Audit findings that PABA accounting process and controls were inadequate.
Details: In the Settlement Agreement, PG&E agreed with the Joint CCAs’ position to a disallowance of $247,500 associated with CAISO penalties for load meter data errors, late submission of Resource Adequacy and Supply Plans and missed deadlines for grid modeling data or telemetry communication for PG&E’s utility owned generation and that any future sanctions for missed deadlines for grid modeling data or telemetry communication for PG&E’s utility-owned generation will not be recovered from customers. Joint CCAs agreed that CAISO sanctions associated with Power Purchase Agreements (contracted generation) were caused by the counterparty and passed through to the counterparty and should not be disallowed.
PG&E agreed that entries to the PABA for costs associated with the Green Tariff Shared Renewables program should be reduced by $5 million for 2019 and 2020, as Joint CCAs had argued.
PG&E also agreed that certain issues should be in the scope of future ERRA proceedings, resolving the Joint CCA concern regarding its ability to review PG&E’s accounting with respect to transactions with the CPE in future ERRA Compliance proceedings.
Finally, PG&E agreed to transfer from PABA to ERRA 2014 and 2017 Diablo Canyon Seismic Studies Balancing Account recorded costs, whereas the 2018 costs were retained in the PABA, which resolved the Joint CCAs concerns about that cost recovery.
The Proposed Decision requires that PG&E include further testimony in their 2021 Compliance case describing the actions that PG&E has taken to address the deficiencies reported in its Internal Audit Report on the PABA; an internal audit closure document with details of PG&E’s implementation of any action plans to address the deficiencies reported in the Internal Audit Report; testimony from its Chief Regulatory Officer on the actions that PG&E will take or has taken to ensure that there is proper accounting and recording of entries in the various balancing and memorandum accounts review in the ERRA compliance proceedings, including, but not limited to, the PABA.
Analysis: This proceeding addresses PG&E’s balancing accounts, including the PABA, providing a venue for a detailed review of the billed revenues and net CAISO revenues PG&E recorded during 2020. It also determines whether PG&E managed its portfolio of contracts and UOG in a reasonable manner. Both issues could impact the level of the PCIA in 2022 and 2023.
Next Steps: A Final Decision to formally conclude Phase 1, followed by consideration of issues in Phase 2 of the proceeding.
Additional Information: Proposed Decision (March 16, 2022); Joint Motion for Adoption of Settlement Agreement (October 15, 2021); Scoping Memo and Ruling (June 21, 2021); Application (March 1, 2021); Docket No. A.21-03-008.
Provider of Last Resort Rulemaking
51 23
Comments on the March 7, 2022, workshop to discuss the proposed framework for considering the issues and recommendations resulting from the previous Phase 1 workshop were filed March 28, 2022.
Background: A POLR is the utility or other entity that has the obligation to serve all customers (e.g., PG&E is currently the POLR in VCE's territory). In 2019 the Legislature passed SB 520, which defined POLR for the first time in statute, confirmed that each IOU is the POLR in its service territory, and directed the Commission to establish a framework to allow other entities to apply and become the POLR for a specific area (a “Designated POLR”). This rulemaking will implement SB 520.
The Scoping Memo and Ruling issued September 16, 2021, provides that Phase 1 of this OIR will address POLR service requirements, cost recovery, and options to maintain GHG emission reductions in the event of an unplanned customer migration to the POLR. Phase 2 will build on the Phase 1 decision to set the requirements and application process for other non-IOU entities (i.e., a CCA, Energy Service Provider, or third-party) to be designated as the POLR in place of an existing POLR. Phase 3 will address specific outstanding issues not resolved in Phase 1 and 2 of this proceeding.
On December 17, 2021, parties filed comments in response to the November 23, 2021, ALJ Ruling posing questions addressing: (1) clarity and content of the Workshop 1 notes filed by CalCCA on November 5, 2021, and (2) questions on Workshop 1 and what changes if any are recommended to adequately meet POLR requirements. CalCCA comments included the following recommendations:
• POLR service should be limited to 60 days to allow returned customers to transition from the returning LSE to the customer’s chosen LSE, consistent with the existing “safe harbor” provision for DA switching.
• Given the limited term and scope of service and the need to avoid unnecessary costs, the POLR should not engage in advance procurement or hedging. • RPS and IRP responsibility for returned customers should shift directly from the returning LSE to the customer’s new LSE, with a waiver of these obligations for the POLR consistent with the existing waiver for RA obligations adopted in D.20-06-031. • The CPUC should compare Reentry Fees and actual costs for Western Community Energy’s customer return to determine whether the current formulation provides sufficient precision to ensure a reasonable outcome.
• A POLR right of first refusal of procurement contracts held by the returning LSE raises legal and commercial issues and should not be considered.
• To minimize the risk of LSE default by newly launched CCA, Implementation Plan requirements should be modified to incorporate a milestone procedure to be administered by the CCA’s governing board, quarterly updates to Energy Division on the status of milestone achievement, transparency through the use of a publicly available information portal available, and feasibility studies provided to the local governing board built on transparent and standardized referents.
• Financial service requirements (FSR) should vary with the financial health of an LSE, limiting FSRs for LSEs maintaining investment-grade credit ratings and LSEs voluntarily providing limited metrics to the CPUC for review; all other LSEs should bear responsibility for the currently formulated FSR.
Details: The recorded proceedings and presentation slides of the March 7, 2022 workshop are available on the CPUC’s Provider of Last Resort webpage. Party comments on the workshop were filed on March 28, 2022 (with the exception that PG&E mistakenly filed comments in the wrong 52 24
docket and filed a motion requesting approval to late-file comments). CalCCA’s comments on the workshop urged a more pragmatic approach based on recent actual experience of customer returns and an evidence-based examination of the actual risks of customer returns to addressing POLR issues rather than the seeming focus on “Black Swan”-type events. Some of CalCCA’s proposals include maintaining the six-month runway to prepare for the return of customers, refining the FSRs to reflect the current MPBs for RA and RPS products, maintaining the existing right to an RA waiver, not requiring resource procurement in advance of customer returns, provide for recovery of financing costs if the POLR must pay for costs prior to receipt of revenues from customer returns, refining the implementation planning process for new CCAs, and implementing a three-tiered reporting rubric calibrated to the operating CCA’s circumstances.
PG&E’s comments included a proposal for an insurance pool to ensure liquidity equal to about two months incremental energy procurement costs for the POLR with each CCS posting its annual contribution to the insurance pool in the form of either cash or a letter of credit, and a proposed initial set of metrics for monitoring the financial health of CCAs that the company recommended be further developed and refined through a workshop process or with other stakeholder feedback.
Analysis: This proceeding could impact VCE in several ways. First, in establishing rules for existing POLRs, it will address POLR service requirements, cost allocation, and cost recovery issues should a CCA or other LSE discontinue supplying customers resulting in the need for the POLR to step in to serve those customers. Second, in setting the requirements and application process for another entity to be designated as the POLR, it could create a pathway for a CCA or other retail provider to elect to become a POLR for its service area. The preliminary questions (Appendix B to the OIR) suggest these issues will include examining topics such as CCA financial security requirements, portfolio risk and hedging, CCA deregistration, CCA mergers, and CCA insolvency.
Next Steps: A Joint Case Management Statement with request for evidentiary hearings and/or briefs was expected in Q1 2022 according to the September 2021 Scoping Memo, but no additional information regarding scheduling is currently available. Then, if needed, evidentiary hearings in Q2 2022, and opening and closing briefs in Q3 2022.
Additional Information: Ruling rescheduling second workshop date (February 24, 2022); Ruling setting second workshop and comment period (December 31, 2021); Ruling requesting comments (November 23, 2021); Golden State Power Cooperative Motion to remove cooperatives as respondents (October 28, 2021); Scoping Memo and Ruling (September 16, 2021); Ruling scheduling prehearing conference (April 30, 2021); Order Instituting Rulemaking (March 25, 2021); Docket No. R.21-03-011.
RA Rulemaking (2019-2020)
No updates this month. Rulemaking is effectively closed, except for one outstanding application for rehearing that was filed in August 2020.
Background: This proceeding had three tracks, which have now concluded. Track 1 addressed 2019 local and flexible RA capacity obligations and several near-term refinements to the RA program. D.19-10-020 purported to affirm existing RA rules regarding imports but adopted a distinction in the import RA compliance requirements for resource-specific and non-resource specific contracts and required, for the first time, that non-resource-specific resources self-schedule (i.e., bid as a price taker) in the CAISO energy market. D.20-06-028 adopted revisions to the Resource Adequacy import rules based on Energy Division’s proposal, with modifications.
In Track 2, the CPUC adopted multi-year Local RA requirements and initially declined to adopt a central buyer mechanism (D.19-02-022 issued March 4, 2019). 53 25
The second Track 2 Decision, D.20-06-002, adopted implementation details for the central procurement of multi-year local RA procurement to begin for the 2023 compliance year in the PG&E and SCE (but not SDG&E) distribution service areas, including identifying PG&E and SCE as the central procurement entities for their respective distribution service areas and adopting a hybrid central procurement framework. The Decision rejected a settlement agreement between CalCCA and seven other parties that would have created a residual central buyer structure and a multi-year requirement for system and flexible RA. Under D.20-06-002, if an LSE procures its own local resource, it may (1) sell the capacity to the CPE, (2) utilize the resource for its own system and flexible RA needs (but not for local RA), or (3) voluntarily show the resource to meet its own system and flexible RA needs, and reduce the amount of local RA the CPE will need to procure for the amount of time the LSE has agreed to show the resource. Under option (3), by showing the resource to the CPE, the LSE does not receive one-for-one credit for shown local resources. A competitive solicitation (RFO) process will be used by the CPEs to procure RA products. Costs incurred by the CPE will be allocated ex post based on load share, using the CAM mechanism. D.20-06-002 also established a Working Group (co-led by CalCCA) to address: (a) the development of a local capacity requirements reduction crediting mechanism, (b) existing local capacity resource contracts (including gas), and (c) incorporating qualitative and possible quantitative criteria into the RFO evaluation process to ensure that gas resources are not selected based only on modest cost differences.
In Track 3, D.19-06-026 adopted CAISO’s recommended 2020-2022 Local Capacity Requirements and CAISO’s 2020 Flexible Capacity Requirements and made no changes to the System capacity requirements. It established an IOU load data sharing requirement, whereby each non-IOU LSE (e.g., CCAs) will annually request data by January 15 and the IOU will be required to provide it by March 1. It also adopted a “Binding Load Forecast” process such that an LSE’s initial load forecast (with CEC load migration and plausibility adjustments based on certain threshold amounts and revisions taken into account) becoming a binding obligation of that LSE, regardless of additional changes in an LSE’s implementation to new customers.
Details: D.22-02-008 denied WPTF’s July 17, 2020, Application for Rehearing of D.20-06-002, the Track 2 Decision creating a multi-year central procurement regime for local RA capacity. WPTF had requested rehearing and reconsideration of the rejected settlement agreement between WPTF, CalCCA, and other parties, arguing that D.20-06-002 will discourage the procurement of local resources by individual LSEs, discriminates against natural gas resources while increasing the need for CAISO backstop procurement, may undermine reliability by making it more difficult to integrate renewables with the larger western grid, and creates a “sale for resale” procurement construct that could place it under FERC’s jurisdiction as a wholesale, rather than a retail, transaction. D.22-02-008 found that good cause for rehearing had not been demonstrated.
The only remaining item to be addressed in this proceeding is one outstanding application for rehearing of D.20-06-028 filed by WPTF on August 5, 2020. D.20-06-028 relates to the self-scheduling requirements for non-resource specific RA imports.
Analysis: D.22-02-008 upheld the CPUC’s decision, D.20-06-002, which established a CPE. Moving to a CPE beginning for the 2023 RA compliance year impacted VCE’s local RA procurement and compliance, including affecting VCE’s three-year local RA requirements as part of the transition to the central procurement framework. Eventually, it will eliminate the need for monthly local RA showings and associated penalties and/or waiver requests from individual LSEs, but it also eliminates VCE’s autonomy with regard to local RA procurement and places it in the hands of PG&E.
Next Steps: The only item remaining to be addressed in this proceeding is WPTF’s remaining outstanding Application for Rehearing. Remaining RA issues will be addressed in the successor RA rulemakings.
Additional Information: D.22-02-008 denying WPTF’s Application for Rehearing (February 11, 2022); D.20-09-003 denying PFMs filed by PG&E, CalCCA, and Joint Parties (September 16, 2020); WPTF’s Application for Rehearing of D.20-06-028 (August 5, 2020); WPTF’s Application for 54 26
Rehearing of D.20-06-002 (July 17, 2020); D.20-06-028 on Track 1 RA Imports (approved June 25, 2020); D.20-06-002 establishing a central procurement mechanisms for local RA (June 17, 2020); D.20-03-016 granting limited rehearing of D.19-10-021 (March 12, 2020); D.20-01-004 on qualifying capacity value of hybrid resources (January 17, 2020); D.19-12-064 granting motion for stay of D.19- 10-021 (December 23, 2019); D.19-10-021 affirming RA import rules (October 17, 2019); D.19-06- 026 adopting local and flexible capacity requirements (July 5, 2019); Docket No. R.17-09-020.
Utility Safety Culture Assessments
A telephonic Prehearing Conference was held on March 30, 2022, to determine the parties, scope, schedule of the proceeding, and other procedural matters.
Background: IOU safety culture assessments are required as part of AB 1054 and SB 901. AB 1054 directed the CPUC’s Wildfire Safety Division, now the Office of Energy Infrastructure Safety, to conduct annual safety culture assessments of each electrical corporation, the first of which will be published in fall 2021. The AB 1054 assessments are specific to wildfire safety efforts and include a workforce survey, organizational self-assessment, supporting documentation, and interviews. SB 901 directs the CPUC to establish a safety culture assessment for each electrical corporation, conducted by an independent third-party evaluator. SB 901 requires that the CPUC set a schedule for each assessment, including updates to the assessment, at least every five years, and prohibit the electrical corporations from seeking reimbursement for the costs of the safety culture assessments from ratepayers.
This proceeding will implement the statutory requirements of SB 901 relating to the Commission’s assessment of safety culture for regulated utilities. It will examine what methodologies should be employed in the safety culture assessments to ensure results are comparable across IOUs and can measure changes in IOU safety culture over time. It will also consider adopting the process and framework to oversee safety culture assessments of gas utilities and gas storage operators, in addition to electrical corporations as required by SB 901. It will consider requiring that IOUs implement specific safety management practices to improve safety culture through adoption of a Safety Management System standard, consider adopting a maturity model to use in safety culture assessments, and determine accountability metrics.
A webinar recording of the March 11, 2022, workshop is available, and additional information on the proceeding is posted on the CPUC’s Safety Culture and Governance webpage.
Details: The Prehearing Conference discussed the adoption of a definition of “safety culture” by the Commission, the scope and mechanisms that should be adopted in a safety culture assessment framework, the schedule and process to be applied to safety culture assessments, and metrics and methodologies for measuring safety culture change. A transcript of the March 30 teleconference was filed on April 4, 2022.
Analysis: This rulemaking will assess the safety culture of PG&E and other IOUs in California.
While its direct focus is on IOUs like PG&E, it could impact VCE and its customers to the extent it influences PG&E’s safety culture and contributes to the safety of VCE customers, as well as the rates VCE customers pay to PG&E to mitigate or address safety issues (e.g., wildfires caused by PG&E transmission equipment; explosions from PG&E natural gas infrastructure, etc.).
Next Steps: A Procedural Order determining issues addressed in the Prehearing Conference is expected; timing TBD.
Additional Information: Order Instituting Rulemaking (October 7, 2021); Docket No. R.21-10-001. 2022-2023 Wildfire Fund Nonbypassable Charge Rulemaking 55 27
No updates this month. On December 6, 2021, the CPUC issued D.21-12-006 adopting a Wildfire Fund NBC of $0.00652/kWh for January 1, 2022, through December 31, 2022.
Background: This rulemaking continues to implement AB 1054, which extended a non-bypassable charge on ratepayers to fund the Wildfire Fund. The CPUC issued D.20-12-024 in December 2020 that continues the Wildfire Non-Bypassable Charge (NBC) amount of $0.00580/kWh for January 1, 2021, through December 31, 2021. The NBC amount of 2022 and 2023 will be established in this proceeding.
Details: The 2022 Wildfire Fund Non-Bypassable Charge is $0.00652/kWh, up from $0.0058/kWh in 2021. The reason for this increase is that the Department of Water Resources demonstrated a collection shortfall of $13.0 million for 2021 and $85.0 million for 2020 (due largely to a lag in initiating and remitting IOU collections for the Wildfire Fund NBC to DWR at the outset of the Wildfire Fund NBC’s existence). Therefore, because of this total $98.0 million under-collection in 2020 and 2021, the 2022 Wildfire Fund NBC is obliged to collect both this 2020-2021 shortfall and the 2022’s necessary revenue requirement of $902.4 million.
Analysis: VCE customers will pay the 2022 and 2023 Wildfire Fund Non-Bypassable Charge amounts established in this proceeding. The charge for 2022 is increasing due to an under-collection of the revenue requirement in 2021 that has been added to the revenue requirement for 2022.
Next Steps: The Department of Water Resources will issue a notice in September 2022 identifying the amount they calculate will need to be the 2023 Wildfire Fund Non-Bypassable Charge.
Additional Information: D.21-12-006 on Wildfire NBC for 2022 (December 6, 2021); Ruling requesting comments on 2022 Wildfire Fund NBC (September 8, 2021): Scoping Memo and Ruling (June 8, 2021); Order Instituting Rulemaking (March 10, 2021); Docket No. R.21-03-001.
Investigation into PG&E’s Organization, Culture and Governance (Safety OII)
No updates this month except to note that on March 7, 2022, Investigation 15-08-019 was reassigned from President Marybel Batjer to Commissioner John R.D. Reynolds.
Background: On December 21, 2018, the CPUC issued a Scoping Memo opening the next phase of an ongoing investigation into whether PG&E’s organizational culture and governance prioritize safety. This current phase of the proceeding is considering alternatives to current management and operational structures for providing electric and natural gas in Northern California.
A July 2020 ALJ Ruling described the issues that are potentially still in scope for this proceeding, which include a broad array of issues identified in the December 21, 2018, Scoping Memo, as modified by D.20-05-053 approving PG&E's reorganization plan, plus the ongoing work of NorthStar, the consultant monitoring PG&E. However, the Ruling observed that "it is not clear as a practical matter how many of those issues can be or should be addressed at this time," given PG&E is now implementing its reorganization plan and has filed its application for regional restructuring. Party comments did not explicitly raise the issue of CCA proposals to purchase PG&E electric distribution assets.
A September 4, 2020, Ruling determined that I.15-08-019 will remain open as a vehicle to monitor the progress of PG&E in improving its safety culture, and to address any relevant issues that arise, with the consultant NorthStar continuing in its monitoring role of PG&E. The Ruling declined to close the proceeding but also declined to move forward with CCAs’ consideration of whether PG&E’s holding company structure should be revoked and whether PG&E should be a “wires-only company,” as well as developing a plan for service if PG&E's CPCN is revoked in the future. 56 28
In April 2021, the CPUC issued Resolution M-4852, placing PG&E into the first of six steps of the Enhanced Oversight and Enforcement process. This six-step process could ultimately result in a revocation of PG&E’s certificate of public convenience and necessity if it fails to take sufficient corrective actions. Resolution M-4852 found that PG&E made insufficient progress toward approved safety or risk-driven investments and is not sufficiently prioritizing its Enhanced Vegetation Management (EVM) based on risk. It found that PG&E is not doing the majority of EVM work – or even a significant portion of work – on the highest risk lines.
On August 18, 2021, CPUC President Batjer sent a letter to PG&E stating that she has directed CPUC staff to investigate whether to advance PG&E further within the Enhanced Oversight and Enforcement process. President Batjer’s letter to PG&E identified “a pattern of self-reported missed inspections and other self-reported safety incidents,” concluding that “this pattern of deficiencies warrants the fact-finding review.” PG&E self-reported missed inspections of hydroelectric substations, distribution poles, and transmission lines. PG&E also reported missing internal targets for enhanced vegetation management and failing to identify dry rot in distribution poles treated with Cellon coating. Many of these issues occurred in High Fire Threat District areas.
On October 25, 2021, President Batjer sent a letter to PG&E asserting that PG&E’s “execution and communication of its wildfire mitigation device setting known as Fast Trip has been extremely concerning and requires immediate action to better support customers in the event of an outage.” It finds that since PG&E initiated the Fast Trip setting practice on 11,500 miles of lines in High Fire Threat Districts in late July, it has caused over 500 unplanned power outages impacting over 560,000 customers. It goes on to say that these Fast Trip-caused outages occur with no notice and can last hours or days. The letter goes on to outline near-term and ongoing transparency and accountability actions, as well as cost tracking
Details: No updates.
Analysis: The August 18, 2021, and October 25, 2021, CPUC letters to PG&E indicate the CPUC has significant concerns with PG&E’s outages related to both PSPS events and its implementation of Fast Trip. Unlike a PSPS event, by definition, Fast Trip settings do not allow for advance notice to customers of an outage.
Next Steps: The proceeding remains open, but there is no procedural schedule at this time.
Additional Information: Letter from President Batjer to PG&E on Fast Trip issues (October 25, 2021); Letter from President Batjer to PG&E (August 18, 2021); Resolution M-4852 (April 15, 2021); Letter from President Batjer to PG&E (November 24, 2020); Ruling updating case status (September 4, 2020); Ruling on case status (July 15, 2020); Ruling on proposals to improve PG&E safety culture (June 18, 2019); D.19-06-008 directing PG&E to report on safety experience and qualifications of board members (June 18, 2019); Scoping Memo (December 21, 2018); Docket No. I.15-08-019.
PG&E Regionalization Plan
No updates this month. The statutory deadline for a final decision was extended to June 30, 2022 in an order issued December 16, 2021.
Background: In D.20-05-051 approving PG&E’s reorganization following bankruptcy, PG&E was directed to file a regionalization proposal (Docket No.19-09-016). On June 30, 2020, PG&E filed its regionalization proposal, which describes how it plans to reorganize operations into new regions.
PG&E proposes to divide its service area into five new regions. PG&E will appoint a Regional Vice President by June 2021 to lead each region, along with Regional Safety Directors to lead its safety efforts in each region. The new regions would include five functional groups that report to the Regional Vice President encompassing various functions including: (1) Customer Field Operations, (2) Local Electric Maintenance and Construction, (3) Local Gas M&C, (4) Regional Planning and 57 29
Coordination, and (5) Community and Customer Engagement. Other functions will remain centralized, such as electric and gas operations, risk management, enterprise health and safety, the majority of existing Customer Care and regulatory and external affairs, supply, power generation, human resources, finance, and general counsel.
In August 2020, parties filed protests and responses to PG&E’s application. Of note, South San Joaquin Irrigation District filed a Protest arguing that PG&E’s regionalization effort should not create a moratorium or interfere with municipalization efforts. In addition, five CCAs filed responses or protests to PG&E’s application, with MCE and EBCE filing protests and City of San Jose, City and County of San Francisco, and Pioneer Community Energy filing responses.
In February 2021, PG&E submitted its updated regionalization proposal (“Updated Proposal”). In response to feedback, PG&E modified its five regions (renamed North Coast, North Valley & Sierra, Bay Area, South Bay & Central Coast, and Central Valley), including moving Yolo County from Region 1 to Region 2 (North Valley & Sierra), where it would be grouped with the following counties:
Colusa, El Dorado, Glenn, Lassen, Nevada, Placer, Plumas, Sacramento, Shasta, Sierra, Solano, Sutter, Tehama, and Yuba. PG&E also provided more information on the new leadership positions that it is creating and its “Lean Operating System” implementation.
Currently, PG&E is in Phase 1 of 3 of its regionalization plan, which is focused on refining regional boundaries, establishing roles and governance for regional leadership, and recruiting and hiring for those positions. In Phase 2 (second half of 2021 through 2022), PG&E will establish and implement the regional boundaries and provide the resources and staffing to support it. In Phase 3 (2023 and after), PG&E will continue to reassess, refine and collaborate with other functional groups to improve efficiencies, safety, reliability and customer service.
On August 31, 2021, PG&E, the California Farm Bureau Federation, the California Large Energy Consumers Association, the Center for Accessible Technology, the Coalition of California Utility Employees, the Public Advocates Office at the California Public Utilities Commission (“Cal Advocates”), the Small Business Utility Advocates, and William B. Abrams filed a motion for approval of their settlement agreement (“Multi-Party Settlement Agreement). A separate settlement agreement is between the South San Joaquin Irrigation District and PG&E. The Multi-Party Settlement Agreement includes a framework within which PG&E will facilitate a stakeholder engagement process for parties to the Multi-Party Settlement Agreement to provide updates and a non-binding forum for input for stakeholders. The proposed settlement would restrict participation in the Regionalization Stakeholder Group to parties or others who agree to the scope, procedures and protocols of the Regionalization Stakeholder group as outlined in the settlement. PG&E will host two public workshops in 2022 and for each year until the completion of Phase III or its regionalization implementation to provide updates to the public about its regionalization implementation progress.
In the separate PG&E/SSJID Settlement Agreement, PG&E clarified and confirmed that its implementation of regionalization as managed by its Regionalization Program Management Office will not include any work to oppose SSJID’s municipalization efforts. However, SSJID also acknowledged that PG&E may continue to respond to SSJID’s municipalization efforts in other forums and proceedings separate from the regionalization proceeding and/or implementation of the Updated Regionalization Proposal.
Details: VCE filed comments on the settlement jointly with Pioneer Community Energy that were critical of PG&E’s Updated Proposal and the settlement. VCE and Pioneer recommended that the CPUC reject the settlement and require changes to PG&E’s Updated Proposal, including alignment with the boundaries of regional councils of governments (“COGs”) and requirements to coordinate with COGs, the development of metrics to measure PG&E’s progress on key safety and customer relations issues, greater coordination between PG&E and CCAs, and improvements to the Regionalization Stakeholder Group to expand its access and efficacy. 58 30
Analysis: The implications of PG&E’s regionalization plan on CCA operations, customers, and costs are largely unclear based on the information presented in PG&E’s application and updated application. PG&E’s regionalization plan could impact PG&E’s responsiveness and management of local government relations and local and regional issues, such as safety, that directly impact VCE customers. It could also impact municipalization efforts, although the pending SSJID settlement agreement stated that PG&E’s regionalization efforts will not be in opposition to SSJID’s municipalization. As part of Region 2, VCE would be grouped with several northern counties in central and eastern California.
Next Steps: A Proposed Decision will be issued next. The current statutory deadline extension expires on June 30, 2022.
Additional Information: Joint Motion for approval of Settlement Agreements (August 31, 2021); Ruling granting schedule modification (August 20, 2021); Ruling denying evidentiary hearing (July 28, 2021); PG&E Joint Case Management Statement (July 20, 2021); Amended Scoping Memo and Ruling (June 29, 2021); PG&E Updated Regionalization Proposal (February 26, 2021); Ruling modifying procedural schedule (December 23, 2020); Scoping Memo and Ruling (October 2, 2020); Application (June 30, 2020); A.20-06-011.
PG&E 2022 ERRA Forecast
No updates this month. On February 11, 2022, the CPUC issued D.22-02-002, resolving all issues and closing the proceeding.
Background: Energy Resource and Recovery Account (ERRA) forecast proceedings establish the amount of the PCIA and other non-bypassable charges for the following year, as well as fuel and purchased power costs associated with serving bundled customers that utilities may recover in rates.
On June 1, 2021, PG&E filed its 2022 ERRA Forecast application, requesting a 2022 ERRA forecast revenue requirement for ratesetting purposes of $4.736 billion. After accounting for $2.479 billion of Utility Owned Generation (UOG)-Related Costs and amounts related to capped 2020 departing load PCIA rates addressed in D.20-12-038, PG&E is requesting a revenue requirement request in this application of $2.263 billion.
PG&E’s Fourth Supplemental Testimony included both an “October Update” and a “December Update.” A group of CCA parties recommended in comments that the CPUC adopt the proposed forecasted revenue requirements and associated rates from the December Update and requested the rates be implemented by February 1, 2022. The CCA parties said that adopting the December update would reduce likely volatility between 2022 and 2023 rates and that adoption of an October Update would clearly violate State law and Commission precedent. The CCAs noted that PG&E’s forecasted costs to serve load in 2022 are 66.5% higher than in 2021.
CalCCA and the Joint CCAs support a 12-month amortization of the revenue requirements presented in the December Update, rather than the 18-month or 24-month scenarios presented by PG&E in its Fifth Supplemental Testimony in late December. PG&E and DACC also support the 12- month amortization, and Public Advocates Office does not oppose it. In contrast, the California Large Energy Consumers Association, Agricultural Energy Consumers Association, and California Farm Bureau Federation advocate for a 24-month amortization period.
Details: D.22-02-002 approves a 2022 forecast of electric sales and energy procurement revenue requirements of $2.4 billion, effective in rates on March 1, 2022. It finds the December Update, updated again with the actual year end ERRA-main account balance provides the most accurate forecast for 2022 revenue requirements, and approves the 12-month amortization that was supported by CCAs. Under the December Update adopted in D.22-02-002, the 2022 total PCIA rate for 2017-vintaged customers (i.e., most VCE customers) will fall 59% relative to 2021 to 59 31
$0.01969/kWh for residential customers and to $0.01897/kWh on a system-average basis. It also agrees with the Joint CCAs and DACC that all customers who were financially responsible for the ERRA-PCIA Financing Subaccount (ERRA-PFS) balance should be entitled to the appropriate credit and direct PG&E to transfer the $95 million ERRA-PFS credit for 2022 to the 2020 vintage subaccount. It approves a request by CCAs and directs PG&E to include the confidential workpapers supporting the PCIA rates from the prior year’s ERRA Forecast proceeding as part of the Master Data Request it will provide in each subsequent ERRA Forecast proceeding. D.22-02-002 denies without prejudice the CCA’s request to direct PG&E to provide data demonstrating its future role as a CPE in future ERRA forecast proceedings.
On March 14, 2022, the California Large Energy Consumers Association and Agricultural Energy Consumers Association filed an Application for Rehearing (AFR) of D.22-02-002. The AFR argues that the Commission should have adopted a 24-month amortization period for the undercollected ERRA balance. PG&E filed its response to the AFR on March 29, 2022, defending the use of a 12- month amortization period. The Commission has not yet acted on the AFR.
Analysis: D.22-02-002 results in a 59% reduction to VCE’s PCIA rates in 2022 compared to 2021.
While the PCIA rate will fall substantially in 2022 for VCE customers, the non-RPS benchmarks that contributed to the reduction in the PCIA in 2022 could result in the opposite effect in 2023. That is, the same high benchmarks that helped reduce the 2022 year’s forecast case may be too high compared to next year’s actuals, which would create large PABA undercollection balances for 2023 rates. The change in the PCIA rate from the December Update will help mitigate such a swing in rates in 2023. D.22-02-002 also improves transparency by approving the CCAs’ request for PG&E to provide confidential workpapers supporting the PCIA rates from the prior year’s ERRA Forecast proceeding as part of the Master Data Request it will provide in each subsequent ERRA Forecast proceeding.
Next Steps: The proceeding is now closed. However, as described above, an application for rehearing is pending.
Additional Information: D.22-02-002 (January 24, 2022); Ruling modifying procedural schedule (January 14, 2022); Ruling directing PG&E to provide amortization scenarios (December 17, 2021); Scoping Memo and Ruling (August 11, 2021); Notice of Prehearing Conference (July 15, 2021); Application (June 1, 2021); Docket No. A.21-06-001.
PG&E’s 2019 ERRA Compliance
No update this month except to note that Opening Briefs are due May 6, 2022. On March 23, 2022, consolidated Application (A.) 20-02-009, A.20-04-002 and A.20-06-001 was reassigned from Commissioner Martha Guzman Aceves to Commissioner John R.D. Reynolds.
Background: Joint IOU rebuttal testimony was filed February 15, 2022, and a Joint Case Management Statement was submitted February 25, 2022.
Phase 1 has been resolved. The September 7, 2021, Ruling consolidated the Phase 2 ERRA compliance proceedings of PG&E, SCE, and SDG&E. The issues scoped for Phase 2 are:
• What is the appropriate methodology for calculating a utility’s unrealized volumetric sales and unrealized revenues resulting from PSPS events in any given record year? Based on this methodology, what are the utilities’ (PG&E, SCE, and SDG&E) unrealized volumetric sales and unrealized revenues resulting from 2019 PSPS events? • Whether it is appropriate for the utilities to return the revenue requirement equal to the unrealized volumetric sales and unrealized revenue resulting from the PSPS events in 2019. 60 32
At the October 26, 2021, workshop hosted by Energy Division, the IOUs (PG&E, SCE, and SDG&E) made a joint presentation of their proposal for a methodology to calculate the revenue requirement of the estimated unrealized volumetric sales and unrealized revenue resulting from PSPS events. The Joint IOUs’ testimony provided additional information on the common methodology for calculating the potential unrealized sales that may result from a PSPS event to be used in a potential rate disallowance, which relies on the energy-related portion of the CPUC-jurisdictional distribution charge for this purpose. CCA representatives pushed back at the October 26, 2021, workshop that the IOUs had not considered unrealized revenues from utility-owned generation that had not been bid into the CAISO market. The ALJ requested the CCAs make a motion to clarify whether that issue is in scope in the proceeding.
Accordingly, the Joint CCAs filed a motion on November 4, 2021, requesting the CPUC clarify the scope of issues in this proceeding. The November 12, 2021, Ruling clarified the CPUC’s intent to consider a range of PSPS methodologies, which may be proposed by both the IOUs and other parties. It provided that parties may conduct additional discovery to support their proposal of a reasonable alternative PSPS methodology. The CPUC will consider a PSPS methodology that includes unrealized generation-related volumetric sales and revenues, along with the joint IOU proposal and potentially other PSPS methodologies
Details: The Joint IOUs’ recommendations to adopt their common methodology for calculating unrealized revenue from end-use customers de-energized during PSPS events were determined to be reasonable and approval was recommended in the Joint Case Management Statement.
Previously, the CCA Parties’ testimony identified all retail rate components that should be considered to provide a full accounting of the unrealized retail revenue during PSPS events. The testimony also described how, absent a ratemaking remedy, the IOUs will fully recover their authorized revenue requirement from all customers, including those receiving no electricity service during PSPS events, through pre-established balancing account mechanisms. The CCA Parties also explained the potential impact of PSPS events on wholesale generation revenue and the need to account any such reductions if generation resources are forced offline due to PSPS events.
The CCA Parties recommended the following issues which remain in dispute per the Joint Case Management Statement:
• The calculation of unrealized retail revenue during PSPS events should include additional CPUC-jurisdictional rate components tied to balancing accounts that record IOU costs incurred despite lost sales to end use customers.
• Each IOU should make a full accounting of the balancing accounts implicated by the total unrealized retail revenue.
• Unrealized wholesale generation revenue should be quantified if utility-owned generation resources, or contracts with take-or-pay provisions, are forced out of service due to a PSPS event.
• Each IOU should record adjusting entries to affected balancing accounts, equal to the unrealized retail and wholesale generation revenue as applicable, to comply with the Commission’s directive to “forgo collection in rates from customers of all authorized revenue requirement equal to estimated unrealized volumetric sales and unrealized revenue resulting from PSPS events.”
TURN also filed testimony recommending that all revenue requirements from retail sales be disallowed.
Analysis: Phase 2 of the proceeding is assessing whether PG&E should be required to return its revenue requirement associated with unrealized sales associated with its 2019 PSPS events, and 61 33
the methodology and inputs for calculating such disallowance. VCE’s customers could benefit from such a CPUC-determined disallowance, e.g., via a bill credit or reduced PG&E charges.
Next Steps: Opening Briefs are due May 6, 2022, and Reply Briefs are due June 3, 2022.
Additional Information: Joint Case Management Statement (February 25, 2022); Order Denying Rehearing of D.21-07-018 and PG&E’s application for rehearing of D.21-07-013 (December 3, 2021); Ruling consolidating ERRA compliance proceedings (September 7, 2021); PG&E Application for Rehearing of D.21-07-013 (August 16, 2021); D.21-07-013 resolving Phase 1 (July 16, 2021); Joint Motion to Adopt Settlement Agreement (October 22, 2020); Amended Scoping Memo and Ruling (August 14, 2020); Scoping Memo and Ruling (June 19, 2020); PG&E’s Application and Testimony (February 28, 2020); Docket No. A.20-02-009.
Direct Access Rulemaking
On March 1, 2022, Rulemaking 19-03-009 was reassigned from Commissioner Martha Guzman Aceves to Commissioner John R.D. Reynolds. On August 13, 2021, CalCCA filed a response to a July application for rehearing filed by a coalition of parties supporting expansion of Direct Access, who challenged a June CPUC decision that recommended against any re-opening of Direct Access. This proceeding is otherwise closed.
Background: In Phase 1 of this proceeding, the CPUC allocated the additional 4,000 GWh of Direct Access load to non-residential customers required by SB 237 (2018, Hertzberg) among the three IOU territories with implementation to begin January 1, 2021.
In Phase 2, the CPUC issued D.21-06-033 recommending against any further Direct Access expansion at this time based primarily on a concern that doing so "would present an unacceptable risk to the state’s long-term reliability goals." It observed that after considering recent reliability events (i.e., the summer 2020 heat storm and resulting rolling blackouts in California and February 2021 outage event and skyrocketing electricity prices in Texas) and IRP forecasts for additional generation, expanded direct access would result in further system fragmentation that raises serious electric system reliability concerns. Further portions of the Decision:
• Observed that Direct Access providers do not have a track record of relying on long-term contracts to meet their energy needs, which could impede the development of new, needed resources.
• Noted that allowing expansion could undermine the long-term contracts that LSEs such as CCAs have already entered (i.e., due to load migration) and make it difficult for them to enter new contracts.
• Stated that currently, the CPUC is not able to ensure that Direct Access expansion would not increase GHG emissions and other pollutants when compared to retaining the current cap, as Direct Access providers have historically relied primarily on unspecified power and lead to a net decline in clean energy procurement.
Details: In their July Application for Rehearing, parties including the Alliance for Retail Energy Markets and the Direct Access Customer Coalition argued that:
• The CPUC broke the law and abused its discretion when it disregarded the express duties imposed on it by SB 237.
• D.21-06-033 ignored the substantial evidence in the record as it pertains to: (1) concerns about electric service provider (ESP) procurement performance and (2) the alleged threat to reliability posed by load migration due to an expansion of Direct Access is inaccurate and discriminatory.
62 34
• D.21-06-033 discriminates against non-residential customers and the ESPs that wish to serve them, thereby violating the dormant Commerce Clause of the US Constitution. • D.21-06-033 relied on "misrepresentations of facts and speculations." CalCCA’s August response argued that:
• The CPUC’s interpretation of the statute was consistent with its plain language and legislative history.
• The Decision is supported by the findings required by statute and is also adequately supported by findings based on the entire administrative record. • The dormant Commerce Clause argument fails because the Decision applies equally to both in-state and out-of-state ESPs, and therefore does not unfairly discriminate against out-of-state interests. • The argument that the Decision discriminates against both ESPs and their customers and therefore violates their Equal Protection rights fails the “rational basis” test in that the Decision is based on the findings regarding electric grid reliability and environmental concerns.
Analysis: This proceeding determined the CPUC’s recommendations to the Legislature regarding the potential future expansion of DA in California. D.21-06-033 recommending against expansion of Direct Access at this time could reduce the risk of load migration from CCAs (or IOUs) to ESPs.
Next Steps: The only remaining item to be addressed in this proceeding is the Application for Rehearing filed by direct access advocates.
Additional Information: CalCCA Response to Application for Rehearing (August 13, 2021); Application for Rehearing of D.21-06-033 (July 29, 2021); D.21-06-033 recommending against direct access expansion (approved June 24, 2021); Ruling and Staff Report (September 28, 2020); Amended Scoping Memo and Ruling adding issues and a schedule for Phase 2 (December 19, 2019); Docket No. R.19-03-009; see also SB 237.
Glossary of Acronyms
AB Assembly Bill
AET Annual Electric True-up
ALJ Administrative Law Judge
BioMAT Bioenergy Market Adjusting Tariff
BEV Business Electric Vehicle
BTM Behind the Meter
CAISO California Independent System Operator
CAM Cost Allocation Mechanism
CARB California Air Resources Board
CEC California Energy Commission
CPE Central Procurement Entity
CPUC California Public Utilities Commission
63 35
CPCN Certificate of Public Convenience and Necessity
CTC Competition Transition Charge
DA Direct Access
DWR California Department of Water Resources
ELCC Effective Load Carrying Capacity
ERRA Energy Resource and Recovery Account
EUS Essential Usage Study
GRC General Rate Case
IEPR Integrated Energy Policy Report
IFOM In Front of the Meter
IRP Integrated Resource Plan
IOU Investor-Owned Utility
ITC Investment Tax Credit
LSE Load-Serving Entity
MCC Maximum Cumulative Capacity
OII Order Instituting Investigation
OIR Order Instituting Rulemaking
PABA Portfolio Allocation Balancing Account
PD Proposed Decision
PG&E Pacific Gas & Electric
PFM Petition for Modification
PCIA Power Charge Indifference Adjustment
POLR Provider of Last Resort
PSPS Public Safety Power Shutoff
PUBA PCIA Undercollection Balancing Account
PURPA Public Utility Regulatory Policies Act of 1978 (federal) QC Qualifying Capacity
QF Qualifying Facility under PURPA
RA Resource Adequacy
RDW Rate Design Window
ReMAT Renewable Market Adjusting Tariff
RPS Renewables Portfolio Standard
SCE Southern California Edison
SED Safety and Enforcement Division (CPUC)
SDG&E San Diego Gas & Electric
64 36
TCJA Tax Cuts and Jobs Act of 2017
TOU Time of Use
TURN The Utility Reform Network
UOG Utility-Owned Generation
WMP Wildfire Mitigation Plan
WSD Wildfire Safety Division (CPUC)
65 Item 9
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 9
TO: Board of Directors
FROM: Rebecca Boyles, Director of Customer Care & Marketing SUBJECT: Customer Enrollment Update (Information)
DATE: April 14, 2022
RECOMMENDATION
Receive and review the attached Customer Enrollment update as of April 6, 2022. Please note that two (2) year’s data instead of one (1) year’s data is provided. Moving forward, Staff will be providing quarterly Board updates instead of monthly, unless/until VCE is in an active enrollment period, at which point monthly enrollment updates would be provided.
66 0
20 40
60 80
100
120
140
160
180
Monthly Opt Outs
Item 9 - Enrollment Update
Status Date: 04/6/22 1
% of Load Opted Out
Residential Commercial Industrial Ag Total
1% 1% 0% 0% 1%
Davis Woodland Winters Yolo Co Total Residential Commercial Industrial Ag NEM Non-NEM VCEA customers 1,849 1,453 168 809 4,279 3,932 130 0 213 704 3,575 Eligible customers 1,924 1,647 212 889 4,672 4,285 164 0 218 794 3,878 Participation Rate 96% 88% 79% 91% 92% 92% 79% 0% 98% 89% 92% 67 Davis
80%
Woodland
20%
Unincorp. Yolo
0%
Winters
0%
5 Opt Ups*
0 5
10 15
20 25
Monthly Opt Ups*
Item 9 - Enrollment Update
Status Date: 04/6/22 2
* The numbers in the pie chart represent opt ups for customers who are currently enrolled. The numbers in the bar graph represent opt up actions taken regardless of current enrollment status. 68 0
5 10
15 20
25 Monthly Opt Ups*
Davis Unincorp. Yolo Woodland Winters
0 50
100
150
200
Monthly Opt Outs
Davis Unincorp. Yolo Woodland Winters
Item 9 - Enrollment Update
Status Date: 04/6/22 3
* These numbers represent all opt up actions ever taken regardless of current customer enrollment status. 69 Item 9 - Enrollment Update
Status Date: 04/6/22 4
* These numbers represent all opt up actions ever taken regardless of current customer enrollment status.
Davis
80%
Woodland
20%
Unincorp. Yolo
0%
Winters
0%
5 Opt Ups*
Davis
28%
Woodland
37%
Unincorp. Yolo
19%
Winters
16%
206 Opt Outs
70 Item 10
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 10
TO: Board of Directors
FROM: Alisa Lembke, Board Clerk / Administrative Analyst SUBJECT: Community Advisory Committee March 24, 2022 Meeting Summary DATE: April 14, 2022
This report summarizes the Community Advisory Committee’s meeting held via Zoom webinar on Thursday, March 24, 2022.
A. Received update on legislative bills [(AB 2696 (E. Garcia), SB 1174 (Hertzberg), AB 2937 (Calderon), SB 881 (Min)]. Staff provided an update on legislative bills that staff was assessing for a VCE position. CAC Members were informed that due to the fast movement of SB 881, Staff followed VCE’s regulatory and legislative action policy by consulting with the Board chair and VCE’s lobbyist consultant to submit an “oppose unless amended” letter. The CAC had a brief discussion on the best way for Staff to get input from the CAC on bills when timing of the legislative process does not allow the bill to be brought to the CAC for discussion and a recommendation.
B. Energy Resiliency Task Group (ERTG) Charge reviewed tasks. CAC members reviewed and discussed the tasks identified in the draft ERTG Charge. After a brief discussion, the CAC approved the tasks and added the task of holding a public forum on Community Energy Resilience and Staff are to handle the logistics (7-0-0). The Outreach Task Group was asked to assist engaging the community in the public forum.
C. California Community Power JPA (“CC Power”) long duration energy storage project:
Goal Line. Staff presented an overview of the Goal Line long duration energy storage project that CC Power is considering. After a brief discussion, the CAC recommended that VCE participate in the California Community Power (CC Power) Goal Line Energy Storage Project (7-0-0).
D. Received overview of VCE Forecasting and solicited feedback. Staff provided a summary on the forecasting process and information that is used in forecasting models and budget.
CAC Members asked questions and provided input on what information would be useful in the upcoming forecasting CAC agenda information items. Staff will review external models and forecasts, including load demand and power supply costs at the CAC’s April meeting and revenues and administrative costs, including power charge indifference adjustment (PCIA) costs and rates (revenue model) at the CAC’s May meeting. 71 Item 10
E. Received presentation on VCE’s rates update. Staff reintroduced the thinking, analysis and conclusions that resulted from the discussion VCE had in the Fall 2021 on expanding the customer rate structure. Staff reviewed the proposed cost-based rate structure that was discussed: three (3) customer rate options, customer distribution, and portfolio/price pertaining to renewable and GHG content. CAC Members asked questions and discussed:
renewable power content and portfolio, CARE/FERA default rate and portfolio content, Time of Use (TOU), customer rate options, differentiation between PG&E and VCE, and local project investment.
F. Considered Customer program concept (Electric Vehicle Rebates Program). Staff summarized the Electric Vehicle (EV) Rebates program which is focused on available rebates and tax credits for the consumer with the pilot program designed to stack and demystify the electric vehicle purchase process. CAC Members discussed and provided feedback and suggestions to Staff. Staff will present Phase 1 of the EV Rebates Program to the CAC at their April meeting seeking a recommendation to the Board for their May meeting.
72 Item 11
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 11
TO: Board of Directors
FROM: Mitch Sears, Executive Officer
Rebecca Boyles, Director of Customer Care and Marketing SUBJECT: Approve Contract with TeMix Inc. for partial implementation of the AgFIT (Flexible Irrigation Technology) dynamic pricing pilot
DATE: April 14, 2022
______________________________________________________________________________
RECOMMENDATIONS
1. Adopt resolution approving services contract with TeMix Inc. for implementation support of the three-year AgFIT (Flexible Irrigation Technology) dynamic pricing pilot in an amount not to exceed $1.25M.
2. Authorize the Executive Officer and/or his designee to execute and take all actions necessary to implement the services contract substantially in the form attached hereto on behalf of VCE, and in consultation with legal counsel, to approve minor changes to the services contract so long as the term and amount are not changed.
BACKGROUND AND ANALYSIS
More than 85% of VCE’s service territory is designated for agricultural use. Due to this high concentration, the agricultural sector represents approximately 18% of VCE’s total annual load and 16% of its peak demand.
In support of VCE’s significant agricultural sector, the Board adopted a 3-year programs plan on June 10, 2021 that included an agricultural demand side program which evolved into the AgFIT dynamic rate pilot program.
At its December 2, 2021, the CPUC issued decision 21-12-015 authorizing VCE’s proposed dynamic rate pilot to be made available to customers taking electric service on irrigation pumping tariffs. The Pilot includes automation of agricultural pumping loads to respond to dynamic prices set by VCE and implementation of an experimental rate that incorporates energy and delivery costs in hourly prices. Customers who successfully respond to the prices and shift load out of expensive hours—typically the ramp hours—are projected to enjoy bill savings of over 10% while contributing to grid reliability when it is most needed. A significant amount of the State’s agricultural irrigation pumping load is shiftable, presenting an important opportunity for California’s grid and environment.
73 Item 11
2 Pilot Program Consultant Support
The AgFIT pilot is a unique undertaking that requires a combination of technical knowledge, electricity rate structuring that is matched with practical expertise in the agricultural sector that is exceedingly uncommon. TeMix worked with Polaris, which was awarded a grant by the California Energy Commission that is the precursor study for the AgFIT pilot, and provides both organizations with the prerequisite skills and knowledge to support the VCE AgFIT pilot.
Additionally, TeMix (and Polaris) sought out VCE based on our proposal submitted to the CPUC in late 2020 to implement a dynamic pricing structure to achive load shift in the agricultural sector and formed an aligned effort to build the case for the pilot. Due to their unique expertise and experience in this specialized work in the agricultural sector, staff is recommending that the Board approve the services contract with TeMix for pilot implementation support. Note: TeMix’s support services will be compensated through the CPUC funded pilot program.
FISCAL IMPACT
VCE will be providing short-term budget support until the CPUC budget process is completed (anticipated in Q2). Following CPUC action, VCE will be reimbursed for short-term budget support expenditures incurred under this and other pilot support services contracts (e.g.
Polaris). On January 27, 2022 the VCE Board approved a temporary budget of up to $200,000 of the program reserve fund that will be covered by future reimbursable revenues to have a net neutral impact on the budget.
The AgFIT program budget is included in the staff recommended 2022 budget (agenda item 18 on the February 10, 2022 Board agenda).
CONCLUSION
Staff recommends the Board approve the consultant services contract with TeMix for support of the AgFIT dynamic pricing pilot.
ATTACHMENTS
1. TeMix AgFIT services contract
2. Resolution
74 AGREEMENT FOR CONSULTANT SERVICES
This Agreement is made and entered into as of ________________, 2022 by and between Valley Clean Energy Alliance, a Joint Powers Authority organized and operating under the laws of the State of California with its principal place of business at 604 Second Street, Davis, California, 95616 (“VCE”), and TeMix, a CORPORATION with its principal place of business at 221 Main St. #360 Los Altos, CA 94023 (hereinafter referred to as “Consultant”). VCE and Consultant are sometimes individually referred to as “Party” and collectively as “Parties” in this Agreement.
RECITALS
WHEREAS, Consultant desires to perform and assume responsibility for the provision of certain services required by VCE on the terms and conditions set forth in this Agreement.
Consultant represents that it is experienced in providing energy advisory services to public clients and is familiar with the plans of VCE with respect to the Project, as defined below.
WHEREAS, VCE desires to engage Consultant to render such services in connection with the Agricultural Pumping Dynamic Rate Pilot project (“Project”) as set forth in this Agreement.
NOW, THEREFORE, VCE and Consultant agree as follows:
1. SCOPE OF SERVICES AND TERM.
1.1 Scope of Services. Consultant promises and agrees to furnish to VCE all labor, services, and incidental and customary work necessary to provide certain professional consultant services and software necessary for the Project (“Services”). The Services are more particularly described in Exhibit A. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state, and federal laws, rules, and regulations. In the event of a conflict between a provision in this Agreement and a provision in Exhibit A or in any other exhibit to this Agreement, the provision in this Agreement shall control.
75 VCE —Professional Services Agreement TEMIX INCORPORATED 2 1.2 Facilities, Equipment, and Other Materials. Except as specifically provided in Exhibit B, Consultant shall, at its sole cost and expense, furnish all facilities, tools, equipment, and other materials necessary for performing the Services pursuant to this Agreement. VCE shall furnish to Consultant only those facilities, tools, equipment, and other materials specifically listed in Exhibit B, according to the terms and conditions set forth in that exhibit.
1.3 Schedule of Services. Consultant shall perform the Services expeditiously and in accordance with the Schedule of Services set forth in Exhibit C and any updates to the Schedule of Services approved by VCE. Time is of the essence in the performance of this Agreement.
Excluding delays due to a Force Majeure Event or delays caused by VCE, Consultant’s failure to perform any Service required under this Agreement within the time limits set forth in Exhibit C shall constitute a material breach of this Agreement.
1.4 Term. The term of this Agreement shall begin on the date VCE Board of Directors approves this Agreement with a term period through March 1, 2025 or when terminated as provided in Article 5.
2. PROJECT COORDINATION.
2.1 VCE ’s Representative. VCE hereby designates Mitch Sears and/or its designee to act as its representative for the performance of this Agreement. Mitch Sears and/or its designee shall have the power to act on behalf of VCE for all purposes under this Agreement. VCE hereby designates Rebecca Boyles and/or its designee as the “Project Manager,” who shall supervise the progress and day-to-day performance of this Agreement.
2.2 Consultant’s Representative. Consultant hereby designates Edward Cazalet to act as its representative for the performance of this Agreement (“Consultant’s Representative”).
Consultant’s Representative shall have full authority to represent and act on behalf of Consultant for all purposes under this Agreement. The Consultant’s Representative shall supervise and direct the Services under this Agreement, using his or her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services to be performed under this Agreement. 76 VCE —Professional Services Agreement TEMIX INCORPORATED 3 Should the Consultant’s Representative need to be substituted for any reason, the proposed new Consultant’s Representative shall be subject to the prior written acceptance and approval of the Project Manager. The Consultant shall not assign any representative to whom VCE has a reasonable objection.
2.3 Coordination of Services. Consultant agrees to work closely with VCE staff in the performance of the Services and shall be available to VCE staff at all reasonable times for the duration of this Agreement.
3. RESPONSIBILITIES OF CONSULTANT.
3.1 Independent Contractor. VCE retains Consultant on an independent contractor basis and not as an employee. Consultant retains the right to perform similar or different services for others during the term of this Agreement. Nor shall any additional personnel performing the Services under this Agreement on behalf of Consultant be employees of VCE; such personnel shall at all times be under Consultant’s exclusive direction and control. Consultant shall be entitled to no other benefits or compensation except as provided in this Agreement.
3.2 Control and Payment of Subordinates. The Services shall be performed by Consultant or personnel under its supervision. Consultant will determine the means, methods, and details of performing the Services subject to the requirements of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Consultant shall at all times be under Consultant’s exclusive direction and control. Consultant shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Consultant shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.
3.3 Conformance to Applicable Requirements. All services performed by Consultant shall be subject to the Project Manager’s review and reasonable approval. Consultant shall furnish VCE with every reasonable opportunity to determine that Consultant’s services are being performed 77 VCE —Professional Services Agreement TEMIX INCORPORATED 4 in accordance with this Agreement. VCE’s review of Consultant’s services shall not relieve Consultant of any of its obligations to fulfill this Agreement as prescribed.
3.4 Substitution of Key Personnel. Consultant has represented to VCE that it will perform and coordinate the Services under this Agreement. Should such personnel become unavailable, Consultant may substitute other personnel of at least equal competence upon VCE’s written approval. In the event that VCE and Consultant cannot agree as to the substitution of key personnel, VCE shall be entitled to terminate this Agreement for cause.
3.5 Licenses and Permits. Consultant represents that it, its employees and subconsultants have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services and that such licenses and approvals shall be maintained throughout the term of this Agreement, at Consultant’s sole cost and expense.
3.6 Standard of Care; Performance of Employees. Consultant shall perform all Services under this Agreement in a skillful and competent manner. Consultant warrants that all employees and subconsultants shall have sufficient skill and experience to perform the Services assigned to them. Consultant shall perform, at its own cost and expense and without reimbursement from VCE, any services necessary to correct errors or omissions which are caused by the Consultant’s failure to comply with the standard of care provided for herein. Any employee of Consultant or its subconsultants who is determined by VCE to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to VCE, shall be promptly removed from the Project by the Consultant and shall not be re-employed to perform any of the Services or to work on the Project.
3.7 Laws and Regulations. Consultant shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Services, including all Cal/OSHA requirements, the Americans with Disabilities Act, the Stored Communications Act, 18 U.S.C. Section 2701, et seq., California Civil Code Sections 1798.80 through 1798.84, and the California Consumer Privacy Act, Civil Code Section 1798.100, et seq., and shall give all notices required by law. Consultant shall be liable for 78 VCE —Professional Services Agreement TEMIX INCORPORATED 5 all violations of such laws and regulations by Consultant in connection with the Services. If Consultant performs any work knowing it to be contrary to such laws, rules, and regulations and without giving written notice to VCE, Consultant shall be solely responsible for all costs arising therefrom. Consultant shall defend, indemnify, and hold VCE, its officials, directors, officers, employees, and agents free and harmless, pursuant to the indemnification provisions of this Agreement and in accordance with the language of Section 6.3, from any claim or liability to the extent arising out of any failure or alleged failure of Consultant to comply with such laws, rules, or regulations.
3.8 Labor Certification. By its signature hereunder, Consultant certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Workers’ Compensation or to undertake self-insurance in accordance with the provisions of that Code, and, if applicable, agrees to comply with such provisions before commencing the performance of the Services.
3.9 Non-Discrimination. No discrimination shall be made in the employment of persons under this Agreement because of that person’s race, color, national origin, ancestry, religion, age, marital status, disability, gender, sexual orientation, or place of birth.
3.10 Insurance.
3.10.1 Time for Compliance. Consultant shall not commence the performance of Services under this Agreement until it has provided evidence satisfactory to VCE that it has secured all insurance required herein. In addition, Consultant shall not allow any subconsultant to commence work on any subcontract until it has provided evidence satisfactory to VCE that the subconsultant has secured all insurance required herein. Failure to provide and maintain all required insurance shall be grounds for VCE to terminate this Agreement for cause.
3.10.2 Minimum Requirements. Consultant shall, at its expense, procure and maintain for the duration of this Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of this 79 VCE —Professional Services Agreement TEMIX INCORPORATED 6 Agreement by Consultant, its agents, representatives, employees or subconsultants.
Consultant shall also require all of its subconsultants to procure and maintain the same insurance for the duration of this Agreement. Such insurance shall meet at least the following minimum levels of coverage:
3.10.2.1 Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (a) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (b) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 8 and 9 (Hired & Non-Owned); and (c) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance.
3.10.2.2 Minimum Limits of Insurance. Consultant shall maintain limits no less than: (a) General Liability: $1,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used including, but not limited to, form CG 2503, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (b) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (c) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease.
3.10.3 Professional Liability. Consultant shall procure and maintain, and require its subconsultants to procure and maintain, for a period of five (5) years following completion of the Project errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less than $1,000,000 per claim, and shall be endorsed to include contractual liability.
80 VCE —Professional Services Agreement TEMIX INCORPORATED 7 3.10.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Consultant shall provide endorsements on forms supplied or approved by VCE to add the following provisions to the insurance policies:
3.10.4.1 General Liability. The general liability policy shall include or be endorsed (amended) to state that: (a) VCE, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the work or operations performed by or on behalf of Consultant, including materials, parts or equipment furnished in connection with such work; and (b) the insurance coverage shall be primary insurance as respects VCE, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by VCE, its directors, officials, officers, employees, agents, and volunteers shall be excess of Consultant’s insurance and shall not be called upon to contribute with it in any way.
3.10.4.2 Automobile Liability. The automobile liability policy shall include or be endorsed (amended) to state that: (a) VCE, its directors, officials, officers, employees, agents, and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading, or unloading of any auto owned, leased, hired or borrowed by Consultant or for which Consultant is responsible; and (b) the insurance coverage shall be primary insurance as respects VCE, its directors, officials, officers, employees, agents, and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of Consultant’s scheduled underlying coverage. Any insurance or self-insurance maintained by VCE, its directors, officials, officers, employees, agents, and volunteers shall be excess of Consultant’s insurance and shall not be called upon to contribute with it in any way.
3.10.4.3 Workers’ Compensation and Employer’s Liability Coverage. The insurer shall agree to waive all rights of subrogation against VCE, its directors, officials, officers, employees, agents, and volunteers for losses paid under the terms of the insurance policy which arise from work performed by Consultant.
81 VCE —Professional Services Agreement TEMIX INCORPORATED 8 3.10.5 Separation of Insureds; No Special Limitations. All insurance required herein shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to VCE, its directors, officials, officers, employees, agents, and volunteers.
3.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by VCE. Consultant shall guarantee that, at the option of VCE, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects VCE, its directors, officials, officers, employees, agents, and volunteers; or (b) the Consultant shall procure a bond guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses.
3.10.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A: VIII, licensed to do business in California, and satisfactory to VCE .
3.10.8 Verification of Coverage. Consultant shall furnish VCE with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to VCE. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by VCE if requested. All certificates and endorsements must be received and approved by VCE before work commences. VCE reserves the right to require complete, certified copies of all required insurance policies, at any time.
3.10.9 Reporting of Claims. Consultant shall report to VCE, in addition to Consultant’s insurer, any and all insurance claims submitted by Consultant in connection with the Services under this Agreement.
3.11 Safety. Consultant shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out the Services, Consultant shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the 82 VCE —Professional Services Agreement TEMIX INCORPORATED 9 work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (a) adequate life protection and life saving equipment and procedures; (b) instructions in accident prevention for all employees and subconsultants, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (c) adequate facilities for the proper inspection and maintenance of all safety measures.
3.12 Records. Consultant shall allow a representative of VCE during normal business hours to examine, audit and make transcripts of copies of such records and any other documents created pursuant to this Agreement. Consultant shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement for a period of three (3) years from the date of final payment under this Agreement.
4. FEES AND PAYMENT.
4.1 Compensation. This is a “time and materials” based agreement. Consultant shall receive compensation, including authorized reimbursements, for Services rendered under this Agreement at the rates, in the amounts and at the times set forth in Exhibit D. Notwithstanding the provisions of Exhibit D, the total compensation shall not exceed _One Million, Two-hundred, Fifty Thousand_ Dollars ($1,250,000) without written approval of VCE. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
4.2 Payment of Compensation. VCE shall, within 45 days of receiving an invoice for services rendered by CONSULTANT in accordance with this Agreement, review the invoice and pay all approved charges thereon.
4.3 VCE ’s Right to Withhold Payment. VCE reserves the right to withhold payment from Consultant on account of Services not performed satisfactorily, delays in Consultant’s performance of Services past the milestones established in the Schedule of Services (Exhibit C), 83 VCE —Professional Services Agreement TEMIX INCORPORATED 10 or other defaults hereunder. Consultant shall not stop or delay performance of Services under this Agreement if VCE properly withholds payment pursuant to this Section 4.3, provided that VCE continues to make payment of undisputed amounts.
4.4 Payment Disputes. If VCE disagrees with any portion of a billing, VCE shall promptly notify Consultant of the disagreement, and VCE and Consultant shall attempt to resolve the disagreement. VCE’s payment of any amounts shall not constitute a waiver of any disagreement and VCE shall promptly pay all amounts not in dispute.
4.5 Extra Work. At any time during the term of this Agreement, VCE may request that Consultant perform Extra Work. As used herein, “Extra Work” means any work which is determined by VCE to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Consultant shall not perform, nor be compensated for, Extra Work without written authorization from the VCE Manager.
4.6 Prevailing Wages. Consultant is aware of the requirements of California Labor Code Section 1720, et seq., and 1770 et seq., as well as California Code of Regulations, Title 8, Section 1600 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects.
If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Consultant agrees to fully comply with such Prevailing Wage Laws. VCE shall provide Consultant with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Consultant shall make available to interested parties upon request, copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services and shall post copies at the Consultant’s principal place of business and at the Project site. Consultant shall defend, indemnify, and hold VCE, its elected officials, officers, employees and agents free and harmless pursuant to the indemnification provisions of this Agreement and in accordance with the language of Section 6.3, from any claim or liability to the 84 VCE —Professional Services Agreement TEMIX INCORPORATED 11 extent arising out of any failure or alleged failure of Consultant to comply with the Prevailing Wage Laws.
4.7 Compensation Contingent on Receipt of Funds. Notwithstanding the above and the provisions of Exhibit D, VCE’s obligation to compensate Consultant for the Services rendered under this Agreement is contingent on VCE’s receipt of the necessary funds for the Project from the California Public Utilities Commission and/or Pacific Gas & Electric (PG&E). Consultant agrees that if VCE does not receive said funds, Consultant shall have no claim for compensation against VCE.
5. SUSPENSION AND TERMINATION.
5.1 Suspension. VCE may suspend this Agreement and Consultant’s performance of the Services, wholly or in part, for such period as it deems necessary due to unfavorable conditions or to the failure on the part of Consultant to perform any material provision of this Agreement.
Consultant will be paid for satisfactory services performed hereunder through the date of temporary suspension pro rating for any payment in connection with the next milestone based on the work performed towards such milestone as mutually determined by Consultant and VCE working together in good faith. In the event that Consultant’s services hereunder are delayed for a period in excess of six (6) months due to causes beyond Consultant’s reasonable control, Consultant may terminate this Agreement and collect payment for any satisfactory services provided through the date of temporary suspension pro rating for any payment in connection with the next milestone as described above.
5.2 Termination for Cause.
5.2.1 If Consultant at any time refuses or neglects to prosecute its services in accordance with the Schedule of Services, or is adjudicated a bankrupt, or commits any act of insolvency, or makes an assignment for the benefit of creditors without VCE ’s consent, or fails to make prompt payment to persons furnishing labor, equipment, materials or services, or fails in any material respect to properly and diligently prosecute its services, or otherwise fails 85 VCE —Professional Services Agreement TEMIX INCORPORATED 12 to perform fully any and all of the material agreements herein contained, Consultant shall be in default.
5.2.2 If Consultant fails to cure the default within thirty (30) days after written notice thereof, or if Consultant is not diligently pursuing a cure to VCE’s satisfaction within thirty (30) days after written notice of the breach, VCE may, at its sole option, take possession of any documents and data (as more specifically described in Section 6.1) or other materials (in paper and electronic form) prepared for VCE or used by Consultant exclusively in connection with the Project and (1) provide any such work, labor, materials or services as may be necessary to overcome the default and deduct the cost thereof from any money then due or thereafter to become due to Consultant under this Agreement; or (2) terminate Consultant’s right to proceed with this Agreement.
5.2.3 In the event VCE elects to terminate, VCE shall have the right to immediate possession of all documents and data and work in progress prepared by Consultant pursuant to this Agreement, whether located at the Project, at Consultant’s place of business, or at the offices of a subconsultant, and may employ any other person or persons to finish the Services and provide the materials therefor. In case of such default termination, Consultant shall not be entitled to receive any further payment under this Agreement until the Project is completely finished. At that time, if the expenses reasonably incurred by VCE in obtaining the Services necessary to complete the Project exceed such unpaid balance, then Consultant shall promptly pay to VCE the amount by which such expense exceeds the unpaid balance of the not-to-exceed amount reflected in Section 4.1. The expense referred to in the previous sentence shall include expenses incurred by VCE in causing the Services called for under this Agreement to be provided by others, and for any costs or damages sustained by VCE by reason of Consultant’s default or defective work.
5.2.4 If VCE fails to make timely payment to the Consultant or otherwise fails to perform fully any and all of the material agreements herein contained, VCE shall be in default.
If such default is not cured within thirty (30) days after written notice thereof, the Consultant may, at its sole option, terminate this Agreement and VCE shall pay the Consultant all amounts 86 VCE —Professional Services Agreement TEMIX INCORPORATED 13 due for services satisfactorily provided to VCE as of the date of Consultant’s written notice of default.
5.3 Termination for Convenience.
5.3.1 In addition to the foregoing right to terminate for default, VCE reserves the absolute right to terminate this Agreement without cause, upon 72-hours’ written notice to Consultant. In the event of termination without cause, Consultant shall be entitled to payment in an amount not to exceed the not-to-exceed amount set forth in Section 4.1 which shall be calculated as follows: (1) payment for Services then satisfactorily completed and accepted by VCE pro-rating for any payment in connection with the next milestone based on the work performed towards such milestone as mutually determined by Consultant and VCE working together in good faith, plus (2) payment for Additional Work satisfactorily completed and accepted by VCE, plus (3) reimbursable expenses actually incurred by Consultant, as approved by VCE . The amount of any payment made to Consultant prior to the date of termination of this Agreement shall be deduced from the amounts described in (1), (2), and (3) above.
Consultant shall not be entitled to any claim or lien against VCE or the Project for any additional compensation or damages in the event of such termination and payment. In addition, VCE’s right to withhold funds under Section 4.3 shall be applicable in the event of a termination for convenience.
5.3.2 If this Agreement is terminated by VCE for default and it is later determined that the default termination was wrongful, such termination automatically shall be converted to and treated as a termination for convenience under this Section and Consultant shall be entitled to receive only the amounts payable hereunder in the event of a termination for convenience.
5.3.3 Force Majeure. No party shall be liable or responsible to the other party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any obligations to make payments to the other party hereunder), when and to the extent such failure or delay is caused by or results from acts beyond the affected party's reasonable control, including, without 87 VCE —Professional Services Agreement TEMIX INCORPORATED 14 limitation: (a) acts of God; (b) flood, fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order or law; (e) actions, embargoes or blockades in effect on or after the date of this Agreement; (f) action by any governmental authority; and (g) national or regional emergency (a “Force Majeure Event”). The party suffering a Force Majeure Event shall give notice to the other party, stating the period of time the occurrence is expected to continue and shall use diligent efforts to end the failure or delay and ensure the effects of such Force Majeure Event are minimized.
6. OTHER PROVISIONS.
6.1 Documents and Data.
6.1.1 Ownership of Documents. VCE shall be the owner of the following items produced exclusively pursuant to this Agreement, whether or not completed: all data collected, all documents prepared, of any type whatsoever, and any material necessary for the practical use of the data and/or documents from the time of collection and/or production whether performance under this Agreement has been completed or if this Agreement has been terminated prior to completion. Consultant shall not release any materials under this Section except after prior written approval of VCE. Consultant assumes no liability for VCE’s use of Documents in any manner not contemplated in the scope of the Project.
6.1.2 Copyright. No materials produced in whole or in part under this Agreement shall be subject to copyright in the United States or in any other country except as determined at the sole discretion of VCE. VCE shall have the unrestricted authority to publish, disclose, distribute, and otherwise use in whole or in part, any reports, data, documents or other materials prepared under this Agreement.
6.1.3 Release of Documents to VCE. Consultant shall deliver to VCE all materials prepared by Consultant exclusively in connection with this Agreement, including all drafts, 88 VCE —Professional Services Agreement TEMIX INCORPORATED 15 memoranda, analyses, and other documents, in paper and electronic form, within five (5) days of receiving a written request from VCE.
6.1.4 Data Privacy and Information Security. Consultant shall at all times while this Agreement is in effect comply with the data privacy and information security requirements set forth in Exhibit E.
6.1.5 Confidentiality. All documents, reports, information, data, and exhibits prepared or assembled by Consultant in connection with its performance under this Agreement are confidential until released by VCE to the public, and Consultant shall not make any of these documents or information available to any individual or organization not employed by Consultant or VCE without the written consent of VCE before any such release, unless Consultant is required to do so under applicable law.
6.2 Assignment; Successors. Consultant shall not assign any of its rights nor transfer any of its obligations under this Agreement without the prior written consent of VCE. Any attempt to so assign or so transfer without such consent shall be void and without legal effect and shall constitute grounds for termination. All representations, covenants and warranties set forth in this Agreement, by or on behalf of, or for the benefit of any or all of the parties hereto, shall be binding upon and inure to the benefit of such party, its successors and assigns.
6.3 Hold Harmless
a. General Hold Harmless
Consultant shall indemnify and save harmless VCE and its officers, agents, employees, and servants from all claims, suits, or actions of every kind, and description resulting from this Agreement, the performance of any work or services required of Consultant under this Agreement, or payments made pursuant to this Agreement brought for, or on account of, any of the following:
(A) injuries to or death of any person, including Consultant or its employees/officers/agents;
89 VCE —Professional Services Agreement TEMIX INCORPORATED 16 (B) damage to any property of any kind whatsoever and to whomsoever belonging; (C) any other loss or cost, including but not limited to that caused by the concurrent active or passive negligence of VCE and/or its officers, agents, or employees. However, Consultant’s duty to indemnify and save harmless under this Section shall not apply to injuries or damage for which VCE has been found in a court of competent jurisdiction to be solely liable by reason of its own negligence or willful misconduct.
The duty of Consultant to indemnify and save harmless as set forth by this Section shall include the duty to defend as set forth in Section 2778 of the California Civil Code b. Intellectual Property Indemnification
Consultant hereby certifies that it owns, controls, or licenses and retains all right, title, and interest in and to any intellectual property it uses in relation to this Agreement, including the design, look, feel, features, source code, content, and other technology relating to any part of the services it provides under this Agreement and including all related patents, inventions, trademarks, and copyrights, all applications therefor, and all trade names, service marks, know how, and trade secrets (collectively referred to as “IP Rights”) except as otherwise noted by this Agreement. Consultant warrants that the services it provides under this Agreement do not infringe, violate, trespass, or constitute the unauthorized use or misappropriation of any IP Rights of any third party. Consultant shall defend, indemnify, and hold harmless VCE from and against all liabilities, costs, damages, losses, and expenses (including reasonable attorney fees) arising out of or related to any claim by a third party that the services provided in the United States.
Consultant’s duty to defend, indemnify, and hold harmless under this Section applies only provided that: (a) VCE notifies Consultant promptly in writing of any notice of any such third-party claim; (b) VCE cooperates with Consultant, at Consultant’s expense, in all reasonable respects in connection with the investigation and defense of any such third-party claim; (c) Consultant retains sole control of the defense of any action on any such claim and all negotiations for its settlement or compromise (provided Consultant shall not have the right to settle any criminal action, suit, or proceeding without VCE’s prior written consent, not to be unreasonably withheld, and provided further that any settlement permitted under this Section shall not impose 90 VCE —Professional Services Agreement TEMIX INCORPORATED 17 any financial or other obligation on VCE, impair any right of VCE, or contain any stipulation, admission, or acknowledgment of wrongdoing on the part of VCE without VCE’s prior written consent, not to be unreasonably withheld); and (d) should services under this Agreement become, or in Consultant’s opinion be likely to become, the subject of such a claim, or in the event such a third party claim or threatened claim causes VCE’s reasonable use of the services under this Agreement to be seriously endangered or disrupted, Consultant shall, at Consultant’s option and expense, either: (i) procure for VCE the right to continue using the services without infringement or (ii) replace or modify the services so that they become non-infringing but remain functionally equivalent.
Notwithstanding anything in this Section to the contrary, Consultant will have no obligation or liability to VCE under this Section to the extent any otherwise covered claim is based upon: (a) any aspect of the services under this Agreement which have been modified by or for VCE (other than modification performed by, or at the direction of, Consultant) in such a way as to cause the alleged infringement at issue; and/or (b) any aspects of the services under this Agreement which have been used by VCE in a manner prohibited by this Agreement.
The duty of Consultant to indemnify and save harmless as set forth by this Section shall include the duty to defend as set forth in Section 278 of the California Civil Code. For the avoidance of doubt, Consultant’s obligations under this Section are not subject to the Limitation on Liability set forth in Exhibit F.
6.3.1 Survival of Obligation. Consultant’s obligation to indemnify shall survive expiration or termination of this Agreement for a period of three years, and shall not be restricted to insurance proceeds, if any, received by VCE, its directors, officials, officers, employees, agents, or volunteers.
6.4 Consultant Not Agent. Except as VCE may specify in writing, Consultant shall have no authority, express or implied, to act on behalf of VCE in any capacity for VCE whatsoever as an agent. Consultant shall have no authority, express or implied, pursuant to this Agreement to bind VCE to any obligation whatsoever.
91 VCE —Professional Services Agreement TEMIX INCORPORATED 18 6.5 Governing Law; Government Code Claim Compliance. This Agreement shall be governed by the laws of the State of California and any legal actions concerning this Agreement’s validity, interpretation and performance shall be governed by the laws of the State of California.
Venue shall be in Yolo County. In addition to any and all contract requirements pertaining to notices of and requests for compensation or payment for extra work, disputed work, claims and/or changed conditions, Consultant must comply with the claim procedures set forth in Government Code sections 900 et seq. prior to filing any lawsuit against VCE. Such Government Code claims, and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, claims, and/or changed conditions have been followed by the Parties hereunder.
If no such Government Code claim is submitted, or if any prerequisite contractual requirements are not otherwise satisfied as specified herein, Consultant shall be barred from bringing and maintaining a valid lawsuit against VCE.
6.6 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
Consultant: TeMix Inc.
[email protected]
Attn: Customer Relations
VCE: Valley Clean Energy Alliance
604 2
ND Street
Davis, CA 95616
Attn: Mitch Sears
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
6.7 Incorporation by Reference. All exhibits referred to in this Agreement are attached hereto and are by this reference incorporated herein.
92 VCE —Professional Services Agreement TEMIX INCORPORATED 19 6.8 VCE ’s Right to Employ Other Consultants. VCE reserves the right to employ other consultants in connection with the Project, provided that such other consultants shall not be performing the work set forth in the Scope of Services of this Agreement.
6.9 Construction; References; Captions. The language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any party. Any term referencing time, days or period for performance shall be deemed calendar days and not workdays. The captions of the various sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
6.10 Amendment; Modification. No supplement, modification or amendment of this Agreement shall be binding unless executed in writing and signed by both parties.
6.11 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a party shall give the other party any contractual rights by custom, estoppel or otherwise.
6.12 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the parties.
6.13 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
6.14 Interest of Consultant. Consultant covenants that it presently has no interest, and shall not acquire any interest, direct or indirect, financial, or otherwise, which would conflict in any manner or degree with the performance of the Services under this Agreement. Consultant certifies that no one who has or will have any financial interest under this Agreement is an officer or employee of VCE.
93 VCE —Professional Services Agreement TEMIX INCORPORATED 20 6.15 Interest of Subconsultants. Consultant further covenants that, in the performance of this Agreement, no subconsultant or person having any interest, direct or indirect, financial, or otherwise, which would conflict in any manner or degree with the performance of the Services under this Agreement shall be employed. Consultant has provided VCE with a list of all subconsultants and the key personnel for such subconsultants that are retained or to be retained by Consultant in connection with the performance of the Services, to assist VCE in affirming compliance with this Section.
6.16 Prohibited Interests. Consultant maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Consultant, to solicit or secure this Agreement. Further, Consultant warrants that it has not paid, nor has it agreed to pay any company or person, other than a bona fide employee working solely for Consultant, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon or resulting from the award or making of this Agreement. If required, Consultant further agrees to file, or shall cause its employees or subconsultants to file, a Statement of Economic Interest with VCE ’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, VCE shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer, or employee of VCE, during the term of his or her service with VCE, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
6.17 Cooperation; Further Acts. The parties shall fully cooperate with one another and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.
6.18 Attorneys’ Fees. If either party commences an action against the other party, either legal, administrative, or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorneys’ fees and all other costs of such action.
6.19 Authority to Enter Agreement. Each party has all requisite power and authority to conduct its business and to execute, deliver, and perform this Agreement. Each party warrants 94 VCE —Professional Services Agreement TEMIX INCORPORATED 21 that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.
6.20 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
6.21 Entirety of Agreement. This Agreement contains the entire agreement of VCE and Consultant with respect to the subject matter hereof, and no other agreement, statement or promise made by any party, or to any employee, officer, or agent of any party, which is not contained in this Agreement, shall be binding or valid. [Signatures on following page]
95 SIGNATURE PAGE TO CONSULTANT SERVICES AGREEMENT
23 82456.00002\30005806.4
IN WITNESS WHEREOF, VCE and Consultant have entered into this Agreement as of the date first stated above.
VCE TeMix Inc.
By: By:
Mitch Sears Edward Cazalet
Executive Officer Chief Executive Officer
APPROVED AS TO FORM:
By:
Inder Khalsa
VCE Legal Counsel
96 82456.00002\30005806.4
EXHIBIT A
SCOPE OF SERVICES
Software Services
Consultant will deploy its Software product known as the TeMix UNIDE/RATES transactive PlatformTM (“Platform”), which will perform the experimental tariff pricing calculations, record the retail transactions and meter readings for each pump, and calculate the experimental tariff shadow bills.
Professional Services
Consultant will provide the following professional services:
1) Tariff design: Consultant will compute the shadow bill and provide bill data to PG&E and VCE on a monthly basis.
2) Interface with PG&E’s circuit data
3) Project Management and Planning
Separate Considerations:
Consultant is providing the Services of this Agreement at a highly discounted price that is beneficial to VCE and its customers, and as outlined in the California Public Utilities Commission’s (CPUC) Decision 21-12-015.
The Consultant has full intention to work with VCE to extend the Services of this Agreement with its other products, for long-term use, later to be determined. To achieve this additional Service scope, Consultant and VCE may execute an additional contract.
End User License Agreement: Exhibit F contains the End User License Agreement for the Software which is an element of this contract.
97 82456.00002\30005806.4
EXHIBIT B
FACILITIES, EQUIPMENT, AND OTHER MATERIALS PROVIDED BY VCE
NOT APPLICABLE
98 82456.00002\30005806.4
EXHIBIT C
SCHEDULE OF SERVICES
As directed by VCE and in accordance with CPUC Decision 21-12-015. Both parties acknowledge the timeline for this project is fluid and agree to work in good faith to meet all deadlines.
99 82456.00002\30005806.4
EXHIBIT D
BUDGET, PAYMENT, RATES
VCE shall compensate Consultant for software license fees and professional services in accordance with the terms and conditions of this Agreement based on the rates and compensation schedule set forth below. Compensation shall be calculated based on the license fees and hourly rates set forth below up to the not to exceed budget amount set forth below.
The compensation to be paid to Consultant under this Agreement for all services described in Exhibit “A” and reimbursable expenses shall not exceed a total of one million two hundred fifty thousand dollars ($1,250,000), as set forth below. Any work performed or expenses incurred for which payment would result in a total exceeding the maximum amount of compensation set forth herein shall be at no cost to VCE unless previously approved in writing by VCE.
Consultant understands that VCE has submitted to the CPUC a revised allocation of the budget approved for the Project by D.21-12-015. In the event that modifications are made to D.21-12- 015, the parties agree to negotiate in good faith as to any amendments that may be necessary to this Exhibit and/or the Agreement.
Software License Fees: Three hundred fifty thousand dollars ($350,000.00) per year. The first annual license fee shall be due and payable 30 days after receipt of funds to VCE from PG&E; provided, however, that VCE agrees to use best efforts to submit payment to Consultant as soon as reasonably practicable after receipt of such funds. Each subsequent annual license fee shall be due annually, based on the anniversary date of the first annual license fee due date.
Professional Services Fees:
A total of two hundred thousand dollars ($200,000.00). for the professional services described in Exhibit “A”, to be paid in four equal payments of fifty thousand dollars ($50,000.00). The first payment shall be due and payable 30 days after receipt of funds to VCE from PG&E; provided, however, that VCE agrees to use best efforts to submit payment to Consultant as soon as reasonably practicable after receipt of such funds. Subsequent payments shall be due upon receipt of invoice the first business day of 2023, the first business day of 2024, and at the end of the project, on May 1, 2025.
Additionally, Extra Work requested in writing by VCE will be provided by the Consultant and billed separately at the following rates, paid 30 days after the receipt of the bill:
Software and System Engineers - $125/hr. US funds
Senior Economists and Engineers - $200/hr. US funds
100
82456.00002\30005806.4
Invoices:
In order to request payment, Consultant shall submit invoices to VCE describing the services performed and the applicable charges (including a summary of the work performed during that period, personnel who performed the services, hours worked, task(s) for which work was performed). VCE shall pay all undisputed invoice amounts within thirty (30) calendar days after receipt up to the maximum compensation set forth in this Agreement, provided VCE has received funds from the California Public Utilities Commission via PG&E if that is the source of funds for the Extra Work. VCE does not pay interest on past due amounts. 101
82456.00002\30005806.4
EXHIBIT E
DATA PRIVACY AND INFORMATION SECURITY
1.1 Undertaking by Consultant. Without limiting Consultant’s obligation of confidentiality as further described in this Agreement, Consultant shall be responsible for establishing, maintaining, and providing a written description to VCE of, a data privacy and information security program, including physical, technical, administrative, and organizational safeguards, that comply with or are substantial similar to the security controls identified in the current version of NIST SP800-53, and that is designed to: (a) ensure the security and confidentiality of the VCE Customer Data; (b) protect against any anticipated threats or hazards to the security or integrity of the VCE Customer Data; (c) protect against unauthorized disclosure, access to, or use of the VCE Customer Data; (d) ensure the proper disposal of VCE Customer Data; and, (e) ensure that all employees, agents, and subcontractors of Consultant, if any, comply with all of the foregoing. In no case shall the safeguards of Consultant’s data privacy and information security program used to protect VCE Customer Data be less stringent than the safeguards used by Consultant for its own data. If the Services include handling credit card information, then the Consultant shall comply at all times with all applicable Payment Card Industry Data Security Standards (PCI-DSS). For purposes of this Agreement, “VCE Customer Data” means any personally identifiable information collected, used, processed, stored, or generated as the result of the Services, including, without limitation, any information that identifies an individual, such as an individual’s social security number or other government-issued identification number, date of birth, address, telephone number, biometric data, mother’s maiden name, email address, credit card information, usage information obtained through the use of Advanced Metering Infrastructure or an individual’s name in combination with any other of the elements listed herein. “VCE Customer Data” does not include information from which identifying information has been removed such that an individual, family, household or residence, or non-residential customer cannot reasonably be identified, or publicly available information that is lawfully made available to the general public from federal, state, or local government records.
1.2 Third-Party Data Security Review. Consultant shall undergo an independent third-party security review as required by PG&E, and shall provide VCE with a copy of any findings from such review.
1.3 CPUC Compliance. Consultant shall comply with all applicable consumer protections concerning subsequent disclosure and use set forth in Attachment B to CPUC Decision No. 12-08-045.
102
82456.00002\30005806.4
1.4 Loss or Unauthorized Access to Data. In the event of any act, error or omission, negligence, misconduct, or breach that permits any unauthorized access to, or that compromises or is suspected to compromise the security, confidentiality, or integrity of VCE Customer Data or the physical, technical, administrative, or organizational safeguards put in place by Consultant that relate to the protection of the security, confidentiality, or integrity of VCE Customer Data, Consultant shall, as applicable: (a) notify VCE as soon as practicable but no later than twenty-four (24) hours of becoming aware of such occurrence; (b) cooperate with VCE in investigating the occurrence, including making available all relevant records, logs, files, data reporting, and other materials required to comply with applicable law or as otherwise required by VCE; (c) in the case of personal information as defined in California Civil Code Section 2798.2(h), (1) notify the affected individuals who comprise the PII as soon as practicable but no later than is required to comply with applicable law including, but not limited to, the provisions of California Civil Code Section 1798.82, or, in the absence of any legally required notification period, within five (5) calendar days of the occurrence; and (2) provide third-party credit and identity monitoring services to each of the affected individuals who comprise the personal information for the period required to comply with applicable law, or, in the absence of any legally required monitoring services, for no less than twelve (12) months following the date of notification to such individuals; (d) perform or take any other actions required to comply with applicable law as a result of the occurrence; (e) without limiting VCE’s obligations of indemnification as further described in this Agreement, indemnify, defend, and hold harmless VCE for any and all Claims (as defined herein), including reasonable attorneys’ fees, costs, and expenses incidental thereto, which may be suffered by, accrued against, charged to, or recoverable from VCE in connection with the occurrence; (f) be responsible for recreating lost VCE Customer Data in the manner and on the schedule set by VCE without charge to VCE; (g) provide to VCE a detailed plan within ten (10) calendar days of the occurrence describing the measures Service Provider will undertake to prevent a future occurrence and (h) upon conclusion of the occurrence, or at VCE’s request, provide to VCE a comprehensive summary of the occurrence, including reason for occurrence, details of occurrence, how occurrence was addressed and any other information required by VCE, which shall be executed by Consultant and may be relied upon by VCE as a true and accurate account of the occurrence. Notification to affected individuals, as described above, shall comply with applicable law, be written in plain language, and contain, at a minimum: name and contact information of Consultant’s representative; a description of the nature of the loss; a list of the types of data involved; the known or approximate date of the loss; how such loss may affect the affected individual; what steps Consultant has taken to protect the affected individual; what steps the affected individual can take to protect himself or herself; contact information for major credit card reporting agencies; and, information regarding the credit and identity 103
82456.00002\30005806.4
monitoring services to be provided by Consultant. This Section shall survive the termination of this Agreement.
1.5 Injunction, Specific Performance or Such Other Relief. Consultant acknowledges that disclosure or misappropriation of any VCE Customer Data could cause irreparable harm to VCE and/or VCE Customers, the amount of which may be difficult to assess.
Accordingly, Consultant hereby confirms that the VCE shall be entitled to apply to a court of competent jurisdiction or the CPUC for an injunction, specific performance or such other relief (without posting bond) as may be appropriate in the event of improper disclosure or misuse of VCE Customer Data by Consultant or its employees or representatives. Such right shall, however, be construed to be in addition to any other remedies available to the VCE, in law or equity.
104
82456.00002\30005806.4
EXHIBIT F
END USER LICENSE AGREEMENT
END USER LICENSE AGREEMENT FOR TEMIX PLATFORM (“SOFTWARE”) IMPORTANT – READ THIS AGREEMENT BEFORE USING THE SOFTWARE. USING
THE SOFTWARE IN THE CLOUD INDICATES YOU AND ANY ENTITY YOU REPRESENT (“you”) ACCEPT THIS AGREEMENT. If you do not agree to all of the terms of this Agreement, then do not use the Software. By agreeing to this Agreement, you represent that you have full power, capacity and authority to accept the terms of this Agreement. If you are accepting the terms of this Agreement on behalf of an employer or another entity, you and such employer or other entity represent that you have full legal authority to bind such employer or other entity to this Agreement.
This End User License Agreement (“EULA”) is a legal agreement between you and TeMix Inc. (“TeMix”), as the licensor of the Software (except for Excluded Software as defined below) and related materials, including printed or online documentation, updates or upgrades provided by TeMix, and any data or files created by the operation of the software, which shall be collectively referred to as the “Software.”
The Software is that deployed, at the time of registration, on the Microsoft Azure™ cloud environment and all updates or modifications provided by TeMix, but not Excluded Software as defined below, during the term of this EULA. TeMix may add to, change, or remove any part, term, or condition of this EULA, including but not limited to as it applies to the Software at any time without prior notice or liability to you.
SOFTWARE LICENSE
The Software is owned by TeMix, and it includes its structure, organization and code which are valuable trade secrets of TeMix. The Software is protected by applicable copyright and other intellectual property laws and international treaties. Except as expressly set forth in this EULA, this EULA does not grant you any intellectual property rights in the Software, and you cannot use the Software except as specified herein. TeMix grants you the non-exclusive, non-sublicensable license to use the Software solely in accordance with this EULA and the documentation and specifications provided by TeMix solely within any scope provided in the respective Valley Clean Energy Alliance Consulting Service Agreement from TeMix. The Software is licensed, not sold.
The Software will create data or files automatically for use and you agree that any such data or files are deemed to be a part of the Software. This does not include, any user-generated content or project files, which will remain the property of the owner. The Software is licensed as a sole product, and you may not separate its components. You agree not to copy, modify, publish, adapt, redistribute, reverse engineer, decompile, disassemble, attempt to derive, or discover source code, or otherwise reduce to a human-perceivable form, or create derivative works of, the Software in 105
82456.00002\30005806.4
whole or in part, or to use the Software in whole or in part for any purpose other than as expressly permitted under this EULA. You may not modify or tamper with any digital rights management functionality of the Software, or bypass, modify, defeat, or circumvent any of the functions or protections of the Software or any mechanisms operatively linked to the Software. You may not remove, alter, cover, or deface any trademarks or notices on the Software. In addition, you may not share, distribute, loan, rent, lease, sublicense, assign, transfer, or sell the Software. TeMix expressly reserves and retains all rights, title, and interest (including but not limited to intellectual property rights) that this EULA does not expressly grant to you. You shall not: (a) violate, tamper with, bypass, modify, defeat, or circumvent any of the functions or protections of the Software, or any mechanisms operatively linked to the Software; or (b) remove, alter, cover, or deface any trademarks or proprietary legends, notices, or language in or on the Software.
EXCLUDED SOFTWARE
Notwithstanding the foregoing limited license granted via this EULA, you acknowledge that the Software includes software subject to terms and conditions governing the use of such software, other than this EULA, known as (“Excluded Software”). Certain Excluded Software may be covered by third-party or open-source software licenses, which may mean, including but not limited to any license, as a condition of its distribution any distributor may make the software available in source code format. Such terms and conditions may be changed by the applicable third-party at any time. To the extent required by the licenses covering any Excluded Software components, the terms of such licenses will apply in lieu of the terms of this EULA. To the extent the terms of the licenses applicable to any Excluded Software components prohibit any of the restrictions in this EULA with respect to such any Excluded Software components, such restrictions will not apply to such any Excluded Software components.
TELECOMMUNCATION CONNECTIVITY AND SERVICES
You understand, acknowledge, and agree that access to certain Software features requires a telecommunication connection for which you are solely responsible for procuring and maintaining.
You are solely responsible for payment of any third-party fees associated with your telecommunications connection, including but not limited to any service provider or airtime charges. Operation of the Software may be limited or restricted depending on the capabilities, bandwidth or technical limitations of your telecommunications connection and service. You understand, acknowledge, and agree that telecommunications connectivity in relation to the Software’s effectiveness is provided by third parties over which TeMix has no control, and is governed by the respective terms of such third parties. The provision, quality, availability and security of such telecommunications connectivity, software and services are the sole responsibility of you and such third party.
106
82456.00002\30005806.4
ACCEPTANCE TO PRIVACY POLICY
You agree that TeMix’ collection, use and disclosure of information will be in accordance with this Agreement and the TeMix privacy policy available here: www.temix.com/privacy-policy/. To the extent there is a conflict between the TeMix privacy policy and this VCE Consulting Service Agreement, this Agreement shall control.
AUTOMATIC UPDATES
From time to time, TeMix may automatically update or otherwise modify the Software, including, but not limited to, for purposes of enhancement of security functions, error correction and improvement of functions, at such time as you interact with TeMix’s or third parties' servers, or otherwise. Such updates or modifications may delete or change the nature of features or other aspects of the Software, including, but not limited to, functions you may rely upon. You acknowledge and agree that such activities may occur at TeMix's sole discretion and that TeMix may condition continued use of the Software upon your complete installation or acceptance of such update or modifications. Any updates/modifications shall be deemed to be, and shall constitute part of, the Software for purposes of this EULA. By acceptance of this EULA, you consent to such update/modification.
EXCLUSION OF WARRANTY
THE SOFTWARE AND ACCOMPANYING DOCUMENTATION ARE FURNISHED TO YOU “AS IS” AND “AS AVAILABLE” AND WITHOUT WARRANTIES, DUTIES OR CONDITIONS, STATUTORY OR OTHERWISE, OF ANY KIND. TEMIX EXPRESSLY
DISCLAIM ALL WARRANTIES, DUTIES AND CONDITIONS, EXPRESS (EXCEPT TO
THE EXTENT EXPRESSLY PROVIDED OTHERWISE BY THIS EULA) OR IMPLIED,
STATUTORY OR OTHERWISE, OF ANY KIND, INCLUDING BUT NOT LIMITED TO THE
IMPLIED WARRANTIES OF NON-INFRINGEMENT, TITLE, MERCHANTABILITY, AND FITNESS FOR A PARTICULAR PURPOSE. TEMIX DOES NOT WARRANT THAT THE
SOFTWARE OR ACCOMPANYING DOCUMENTATION, WILL MEET YOUR
REQUIREMENTS OR PROVIDE SPECIFIC RESULTS, OR THAT THEY WILL BE
UPDATED, OR THAT THE OPERATION OF ALL OR ANY OF THEM WILL BE
UNINTERRUPTED OR ERROR FREE, OR THAT ANY DEFECTS WILL BE CORRECTED,
OR THAT THE SOFTWARE WILL NOT DAMAGE ANY OTHER SOFTWARE,
HARDWARE OR DATA, OR THAT ANY NETWORK SERVICES OR PRODUCTS (OTHER THAN THE SOFTWARE) UPON WHICH THE SOFTWARE’S PERFORMANCE DEPENDS WILL CONTINUE TO BE AVAILABLE, UNINTERRUPTED OR UNMODIFIED.
FURTHERMORE, TEMIX DOES NOT WARRANT OR MAKE ANY REPRESENTATIONS
OR CONDITIONS REGARDING THE USE OR THE RESULTS OF THE USE OF THE
SOFTWARE OR ACCOMPANYING DOCUMENTATION IN TERMS OF THEIR ACCURACY, RELIABILITY, COMPLETENESS OR OTHERWISE. TEMIX SHALL HAVE NO RESPONSIBILITY FOR THE SECURITY OF, TIMELINESS, DELETION, MIS-107 82456.00002\30005806.4
DELIVERY, OR FAILURE TO STORE ANY OF YOUR COMMUNICATIONS OR PERSONALIZED SETTINGS. NO ORAL OR WRITTEN INFORMATION OR ADVICE
GIVEN BY TEMIX SHALL CREATE A WARRANTY, DUTY OR CONDITION, OR IN ANY WAY CHANGE THIS EXCLUSION OF WARRANTY, DUTY AND CONDITION. SHOULD
THE SOFTWARE PROVE DEFECTIVE, YOU (NOT TEMIX) ASSUME THE ENTIRE COST OF ALL NECESSARY SERVICING, REPAIR, OR CORRECTION.
Without limiting the generality of the foregoing, you further understand, acknowledge, and agree that the Software is not designed or intended for use on or within any other product other than the Software. You expressly acknowledge and agree that any other hardware, software, content, or data could be damaged by installing or using the Software on or within any other product other than the Software, and TeMix are not responsible for any such damage.
LIMITATION OF LIABILITY
IN NO EVENT WILL TEMIX FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE,
EXEMPLARY, OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING BUT NOT
LIMITED TO COMPENSATION, REIMBURSEMENT OR DAMAGES IN CONNECTION
WITH, ARISING OUT OF OR RELATING TO THIS EULA ON ACCOUNT OF THE USE OR
LOSS OF USE OF THE SOFTWARE, OR ACCOMPANYING DOCUMENTATION,
DOWNTIME OR YOUR TIME, LOSS OF PRESENT OR PROSPECTIVE PROFITS, LOSS OF
DATA, INFORMATION OF ANY KIND, BUSINESS PROFITS, OR OTHER COMMERCIAL
LOSS, OR FOR ANY OTHER REASON WHATSOEVER, WHETHER BASED ON THEORIES
OF CONTRACT OR TORT (INCLUDING BUT NOT LIMITED TO NEGLIGENCE OR
STRICT LIABILITY), EVEN IF TEMIX HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE SOFTWARE, SOFTWARE AND ACCOMPANYING
DOCUMENTATION ARE FURNISHED TO YOU IS FOR USE AT YOUR OWN RISK.
TEMIX WILL NOT BE LIABLE FOR DAMAGES FOR BREACH OF ANY EXPRESS (EXCEPT TO THE EXTENT EXPRESSLY PROVIDED OTHERWISE BY THIS EULA OR
ACCOMPANYING DOCUMENTATION) OR IMPLIED WARRANTY, DUTY OR
CONDITION, UNDER BREACH OF CONTRACT, NEGLIGENCE, STRICT LIABILITY OR
ANY OTHER LEGAL THEORY RELATED TO THE SOFTWARE, OR ACCOMPANYING DOCUMENTATION, OF THIS EULA. TEMIX CANNOT ENSURE THAT THE SOFTWARE,
OR OTHER DATA YOU ACCESS OR DOWNLOAD FROM OR THROUGH THE
SOFTWARE WILL BE FREE OF VIRUSES OR CONTAMINATION OR DESTRUCTIVE FEATURES, AND TEMIX DISCLAIM ANY LIABILITY RELATED THERETO. TEMIX
FURTHER DISCLAIMS ANY AND ALL LIABILITY FOR THE ACTS, OMISSIONS AND
CONDUCT OF ANY THIRD PARTIES IN CONNECTION WITH OR RELATED TO YOUR USE OF the SOFTWARE. IF, NOTWITHSTANDING THE TERMS OF THIS EULA, TEMIX
IS FOUND TO BE LIABLE TO YOU FOR ANY DAMAGE OR LOSS WHICH ARISES
UNDER OR IN CONNECTION WITH THIS EULA, INCLUDING BUT NOT LIMITED TO YOUR USE OF THE SOFTWARE, OR ACCOMPANYING DOCUMENTATION, TEMIX’
COLLECTIVE TOTAL AGGREGATE LIABILITY TO YOU SHALL IN NO EVENT EXCEED 108
82456.00002\30005806.4
$10,000. THIS LIMITATION ON LIABILITY SHALL NOT APPLY TO THE
INDEMNIFICATION OR CONFIDENTIALITY OBLIGATIONS SET FORTH IN SECTIONS
3.7, 6.1, AND 6.3 OF THIS VCE CONSULTING SERVICE AGREEMENT.
Some jurisdictions may not allow exclusions or limitations of incidental or consequential damages, exclusions or limitations of implied warranties, duties, or conditions, or allow limitations on how long an implied warranty, duty or condition lasts, so the above limitations or exclusions may not apply to you.
HIGH RISK ACTIVITIES
The Software and any other software provided on or through the Software is not fault-tolerant and is not designed, manufactured or intended for use or resale as on-line control equipment in hazardous environments requiring fail-safe performance, such as in the operation of nuclear facilities, aircraft navigation or communication systems, air traffic control, direct life support machines, or weapons systems, in which the failure of the Software or such other software could lead to death, personal injury, or severe physical or environmental damage (“High Risk Activities”). TEMIX, its DIRECTORS, officers, employees, agents, information providers, licensors and licensees, and successors and assigns, SPECIFICALLY DISCLAIM ANY EXPRESS OR IMPLIED WARRANTY, DUTY OR CONDITION OF FITNESS FOR HIGH-RISK ACTIVITIES. YOU ARE SOLELY RESPONSIBLE FOR ANY AND ALL ACTION, OR LACK OF ACTION, TAKEN TO PRESERVE LIFE OR PROPERTY.
USE OF SOFTWARE WITH OTHER MATERIALS
The Software can be used by you to store, process, and use content created by you and third parties.
Such content may be protected by copyright, other intellectual property laws, and/or agreements.
You agree to use the Software only in compliance with all such laws and agreements that apply to such content. You agree that TeMix may act or respond appropriately to protect copyright of content stored, processed, or used by the Software.
EXPORT RESTRICTIONS
The Software may contain encryption technology. You acknowledge that any export of Software containing encryption technology from the United States or subsequent re-export of such software or content by a person located outside of the United States requires a license or other authorization from the U.S. Department of Commerce’s Bureau of Industry and Security. You further acknowledge that the Software containing encryption technology and acquired from TeMix is not intended for use by a foreign government end user. By accepting this EULA, you agree to abide by all relevant U.S. export laws and regulations in the purchase and use of the Software being acquired, including but not limited to those regulations relating to the export control of 109
82456.00002\30005806.4
cryptographic items and not to transfer, or authorize the transfer, of the Software to a prohibited country or otherwise in violation of any such restrictions or regulations.
U.S. GOVERNMENT RESTRICTED RIGHTS
The Software and any other software provided on or through the Software are provided with RESTRICTED RIGHTS. Use, duplication, or disclosure by the United States Government is subject to restrictions as set forth in subparagraphs (c)(1) and (c)(2) of the Commercial Computer Software clause at FAR 52.227 19, and subparagraph (c)(i)(ii) of the Rights in Technical Data and Computer Software clause at DOD FAR 252.227-7013 and any comparable federal, state, or local law or regulation. Manufacturer is TeMix Incorporated 221 Main St. #360 Los Altos, CA 94023.
EQUITABLE REMEDIES
You agree that any violation of or non-compliance with any term or condition this EULA by you will constitute an unlawful and unfair business practice and will cause irreparable harm to TeMix for which monetary damages would be inadequate, and you consent to TeMix obtaining any injunctive or equitable relief that TeMix deems necessary or appropriate in such circumstances.
These remedies are in addition to any other remedies that may be available to TeMix under contract, at law or in equity.
The failure of TeMix to exercise or enforce any right or provision of this EULA shall not constitute a waiver of such right or provision. If any part of this EULA is held invalid, illegal, or unenforceable, that provision shall be enforced to the maximum extent permissible to maintain the intent of this EULA, and the other parts will remain in full force and effect. If you provide any suggestions, ideas, improvements, modifications, feedback, error identifications or other information related to the Software, or any other TeMix products or services (“Feedback”), you hereby grant TeMix a non-exclusive, perpetual, irrevocable, non-terminable, worldwide, royalty-free, fully-paid-up, sublicensable right and license to copy, distribute, display and create derivative works of and otherwise use such Feedback without restriction, including to improve the Software and to develop, market, offer, sell and provide other products and services.
THIRD PARTY BENEFICIARIES
This EULA shall not be interpreted or construed to confer any rights or remedies on any third parties, except that each Indemnified Party, and is an express intended third-party beneficiary of and shall be entitled to directly enforce and rely upon, each provision of this EULA that confers a right or remedy in favor of such party.
TERM AND SURVIVAL
110
82456.00002\30005806.4
This EULA is effective for the duration specified in this Valley Clean Energy Alliance Consulting Service Agreement or until terminated. TeMix may terminate this EULA immediately if you fail to comply with its terms. In addition, upon termination you will have no recourse against TeMix for your inability to use the Software or the accompanying documentation.
In case of such termination, you must cease all use of the Software, and delete all accounts you may have established which are accessible through the Software. Any of your obligations under this EULA which by their nature are intended to survive the termination of this EULA or your use of the Software shall continue to apply to you after the termination of this EULA or you cease to use the Software.
FEEDBACK
Should you have any questions concerning this EULA, you may contact TeMix by writing to TeMix Incorporated at [email protected] Attn.: Customer Relations 111
1 VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2022-___
A RESOLUTION OF THE BOARD OF DIRECTORS OF VALLEY CLEAN ENERGY ALLIANCE
APPROVING ENTERING INTO AN AGREEMENT FOR SERVICES FOR THE AGRICULTURAL FLEXIBLE IRRIGATION TARIFF PILOT (AgFIT) WITH TEMIX, INCORPORATED (“TEMIX”)
AND AUTHORIZING EXECUTIVE OFFICER IN CONSULTATION WITH LEGAL COUNSEL TO
EXECUTE AND SIGN THE AGREEMENT
WHEREAS, at its December 2, 2021, meeting the California Public Utilities Commission issued decision 21-12-015 authorizing Valley Clean Energy’s proposed dynamic rate pilot to be made available to customers taking electric service on irrigation pumping tariffs, with a budget of $2.5M to be overseen by VCE; and
WHEREAS, in support of VCE’s significant agricultural sector, the Board adopted a 3-year Programs Plan on June 10, 2021, that included an agricultural demand-side program which evolved into the AgFIT dynamic rate pilot program; and, WHEREAS, staff recommends that VCE enter into an agreement with TeMix, an entity that has prior experience with similar pilots in the agricultural sector in order to most efficiently execute the pilot.
NOW, THEREFORE, the Board of Directors of the Valley Clean Energy Alliance resolves as follows:
1. Authorize the Executive Officer, in consultation with legal counsel, to execute a consulting services agreement with TeMix to provide services necessary to implement the pilot, for an amount not to exceed $1.25M and to expire March 1, 2025.
2. Authorize the Executive Officer and/or his designee to execute and take all actions necessary to implement the services contract substantially in the form attached hereto on behalf of VCE, and in consultation with legal counsel, to approve minor changes to the services contract so long as the term and amount are not changed.
PASSED, APPROVED AND ADOPTED, at a regular meeting of the Valley Clean Energy Alliance held on the ______ day of ______ 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________________
Jesse Loren, VCE Chair
_________________________________
Alisa M. Lembke, VCE Board Secretary
Attachment A: TeMix Incorporated Services Agreement
112
2 ATTACHMENT A
TEMIX INCORPORATED SERVICES AGREEMENT
113
1 Item 12
VALLEY CLEAN ENERGY ALLIANCE
Staff Report - Item 12
TO: Board of Directors
FROM: Mitch Sears, Executive Officer
Rebecca Boyles, Director of Customer Care and Marketing SUBJECT: SACOG Grant - Electrify Yolo Update
DATE: April 14, 2022
REQUESTED ACTION
Informational item. The purpose of this report is to give an update on the status of the Electrify Yolo (SACOG grant) project.
BACKGROUND
In December 2018, the Sacramento Area Council of Governments (SACOG) authorized the award of a Green Region grant in the amount of $2,912,000, representing the regional “Electrify Yolo” project, with the purpose of installing publicly accessible electric vehicle (EV) charging stations. Originally, only VCE and the City of Davis were involved, and Woodland, Winters and unincorporated Yolo County joined the project prior to submitting the grant application in August 2018. The City of Davis distributed funds to each entity once the Memoranda of Understanding (MOUs) were approved by each jurisdiction. All projects are to be finished by December 31, 2023.
UPDATE
As shown in the attached progress reports each jurisdiction is making progress toward meeting its obligations under the grant. All MOUs were signed (Davis, VCE/Winters, Woodland, unincorporated Yolo County) as of April 2021, and some EV charger installation projects have begun, and some are finished. Staff does note that EV charger installations have been subject to some delays including impacts from the COVID-19 pandemic and staffing shortages.
VCE Staff is working with each jurisdiction to design banners to be hung at each charging station with logos of all project partners, as well as permanent aluminum signs. Temporary banners will inform members of the public that there will be EV chargers coming soon in that location and aim to increase the public’s brand association with VCE and electric vehicles. Banners have been hung in Winters at the Community Center charging stations, as well as a permanent aluminum sign.
ATTACHMENTS:
1. VCE SACOG Progress Report Davis – April 2022
2. VCE SACOG Progress Report Winters - April 2022
3. VCE SACOG Progress Report Yolo - April 2022
4. VCE SACOG Progress Report Woodland – April 2022
114
VALLEY CLEAN ENERGY
SACOG GRANT
PROGRESS REPORT – CITY OF DAVIS
1. Project Summary
The City of Davis was apportioned $1,912,000 of the total award ($2,912,000) to perform the following:
• Site, design, permit, construct and install Level 2 Chargers in the project area (3 minimum)
• Site, design, permit, construct and install DC Fast Chargers (Level 3) in downtown area within ½ to 5 miles of major freeway corridors (2 minimum) • Purchase Mobile Chargers of the type similar to ‘EV ARC’ solar standalone charging stations (2 minimum)
• Purchase or lease electric vehicle(s) to transport 8 or more people (one minimum) In discussion of the project, the City has divided the effort into “Phase 1” - the minimum action needed to meet the requirements of the grant award, and “Phase 2” for funds that may remain after the miniumums are met, to determine locations for installations based on the siting criteria discussed and approved during “Phase 1” efforts.
2. Project Manager
Stan Gryzcko, Director, Public Works Utilities and Operations
3. Site (s) Description
Internal review and discussions have been ongoing around locations and recommend that were presented to the City’s Natural Resources Commission, however locations have not been formally approved. Further discussions and review have also modified the recommendations for the suggested locations:
Location Existing Original
Recommendation
Revised
Recommendation
City Hall Two dumb pedestal
mount Clipper Creek
Two smart dual-port Level
2 stations and one DCFC
Because this site is
getting an entire
electrical upgrade,
including a back-up
generator, installing
charging stations will be
very low cost. You could
put four dual-port
stations here.
4 th & G Garage Two dumb pedestal
mount Clipper Creek
Two smart dual-port Level
2 stations (wall mount)
No change
E Street Parking Lot Two dumb pedestal
mount Clipper Creek
Two smart dual-port Level
2 stations or one quad-port station
One smart dual-port
Level 2. Conduit won’t
support additional wires.
115
VALLEY CLEAN ENERGY
SACOG GRANT
PROGRESS REPORT – CITY OF DAVIS
Amtrak Two dumb pedestal
mount charging
stations
One dual-port DCFC Two wall-mount dual
port Level 2
Olive Drive Configured for a
DCFC
One dual-port DCFC,
potentially a high-speed
150kW charger
One dual port DCFC, but
in a different location.
4. Site information (Maps, Pictures, Etc.)
N/A at this time
5. Description of any material planned changes to the Project.
N/A at this time - of note the position originally assigned to manage this project remains vacant, however interviews should begin shortly.
6. Table schedule showing progress on achieving each of the Milestones See below.
7. Summary of activities during the previous calendar quarter or month.
Staff continue to work with the consultant to finalize the lifecycle cost analysis, and review each suggested location in detail. With the site review, modifications were made to the orginal recommendations on installation that have been reviewed by staff. Billing data from PG&E was finally obtained (after some significant delays) so project work on this phase is nearly complete.
8. Forecast of activities scheduled for the current calendar quarter Once the City has the final lifecycle cost analysis and recommendations on the installation and management of chargers, staff will return to the Natural Resources Commission with the recommended locations & methods of installation/management, and answers to the Commission questions from November 2021. Discussion from the NRC, along with any support or alternative suggestions then be presented to City Council to begin the implementation portion of the Phase 1 project, with an outline of the recommended process for Phase 2.
9. Written descriptions about the progress relative to Milestones, including whether the milestone has been met or is on target to meet the Milestones
For the purposes of this report, we will not include milestones, other than the first milestone of completing the feasilibity study. Once the City has made a determination on how best to move forward with installation/purchase of the required chargers/vehicle, additional milestones will be added to show progress towards those actions.
10. List of issues that are reasonably likely to affect Milestones 116
VALLEY CLEAN ENERGY
SACOG GRANT
PROGRESS REPORT – CITY OF DAVIS
We continue to have a shortage of staffing resources with current vacancies. Depending on the outcome of upcoming recrutiments, we may require additional resourcing to keep the project moving forward.
11. A status report of activities, including a forecast of ongoing activities, information on project performance, and projections for the next twelve (12) months.
In the next year, staff expects completion of the site location report, construction of Phase I installations, completion of Phase II siting (which is partially encompassed in the site location report for Phase I), and prep for construction of Phase II installations.
12. Progress and schedule of all material agreements, contracts, permits, approvals, technical studies, financing agreements, and purchase orders showing the start dates, completion dates, and completion percentages.
For the purposes of this portion of the effort, we have a contract with our consultant to complete this Phase 1 study. There are no other responsive documents to this request at this time.
13. Pictures, in sufficient quantity and of appropriate detail, document the Project's progress.
N/A
14. Workforce Development or Supplier Diversity Reporting (if applicable) N/A
15. Any other documentation to be included for Board Update Dashboard
Site Selection Contract
Award Permits Installation Testing Go Live
N/A
DASHBOARD KEY
Completed IN PROGRESS DELAYED ON HOLD
TABLE 1
Milestone
Description Status % Completion
Estimated
Completion
Date
Notes
117
VALLEY CLEAN ENERGY
SACOG GRANT
PROGRESS REPORT – CITY OF DAVIS
Feasibility Report
and Lifecycle Cost
Analysis
Initial draft
reviewed by
Natural
Resources
Commission,
internal work
continues, City
awaiting final
report draft
80%
LINKED: Natural Resources Commission Meeting Documents
- Staff Report
- Frontier Energy Draft Report
118
318 First Street
Winters, CA 95694
Phone.530.795.4910
Fax. 530.795.4935
COU NCIL ME MBERS
Ha ro ld Anderso n
J esse Lo ren
Pierre Neu
MAYO R
Wa de Co wa n
MAYO R PR O TEM
Bill Biasi
CITY CLERK
Ashley Bussa r t
CITY TRE AS URER
Shelly Gun by
CITY M AN AGER
Ka thleen Sa lg uero Trepa
1. Project Summary - Install car charging stations at Community Center and City parking lot.
2. Project Manager – Eric Lucero
3. Site (s) Description – Winter Community Center and city parking lot at First and Abbey.
4. Site information (Maps, Pictures, Etc.) Attached
5. Description of any material planned changes to the Project. - None
6. Table schedule showing progress on achieving each of the Milestones. – See below
7. Summary of activities during the previous calendar quarter or month. - No activities this quarter
8. Forecast of activities scheduled for the current calendar quarter. - No activities planned
9. Written descriptions about the progress relative to Milestones, including whether the milestone has been met or is on target to meet the Milestones
10. List of issues that are reasonably likely to affect Milestones. – PG&E Rule 20A utilitiy project
11. A status report of activities, including a forecast of ongoing activities, information on project performance, and projections for the next twelve (12) months. Attached
12. Progress and schedule of all material agreements, contracts, permits, approvals, technical studies, financing agreements, and purchase orders showing the start dates, completion dates, and completion percentages. Attached
Dashboard
Site Selection Contract
Award Permits Installation Testing Go Live
Completed Completed Completed In Progress 50% 50%
TABLE 1
Milestone
Description Status % Completion
Estimated
Completion
Date
Notes
Community
Center charging
stations are
complete and in
operation
Complete 100% 9-23-2021 Chargers have
been in
operation since
September
First & Abbey
Street charging
stations are on
hold waiting for
On Hold 10% 7-21-2022 Chargers and
materials have
been purchased
119
318 First Street
Winters, CA 95694
Phone.530.795.4910
Fax. 530.795.4935
COU NCIL ME MBERS
Ha ro ld Anderso n
J esse Lo ren
Pierre Neu
MAYO R
Wa de Co wa n
MAYO R PR O TEM
Bill Biasi
CITY CLERK
Ashley Bussa r t
CITY TRE AS URER
Shelly Gun by
CITY M AN AGER
Ka thleen Sa lg uero Trepa
PG&E Rule 20A
project to
underground
power.
Overview of Charger Locations
Winters Community Center Operational Chargers with permanent aluminum sign and temporary banner
120
318 First Street
Winters, CA 95694
Phone.530.795.4910
Fax. 530.795.4935
COU NCIL ME MBERS
Ha ro ld Anderso n
J esse Lo ren
Pierre Neu
MAYO R
Wa de Co wa n
MAYO R PR O TEM
Bill Biasi
CITY CLERK
Ashley Bussa r t
CITY TRE AS URER
Shelly Gun by
CITY M AN AGER
Ka thleen Sa lg uero Trepa
Photo of 1st & Abbey Parking Lot Charger Locations
121
VALLEY CLEAN ENERGY
SACOG GRANT
PROGRESS REPORT – YOLO COUNTY APRIL 2022
1. Project Summary
Install EV charging stations throught Yolo County that are accessible to the pubic
2. Project Manager
Mike Martinez, IT & Projects Manager, County Of Yolo General Services Department
3. Site (s) Description
Various County owned properties in the cities of Woodland, Davis, and Winters • Site 1: 137 N Cottonwood St, Woodland, California 95695 Bauer Building 2-Dual Charging Stations
• Site 2: 25 N. Cottonwood Street Woodland, CA 95695 Gonzalez Building 2-Dual Charging Stations
• Site 3: 315 E 14th St, Davis, CA 95616 Mary L. Stephens Davis Branch Library 1-Dual Charging Station
4. Summary of activities during the previous calendar quarter or month. • Design site walks for Bauer Building, Gonzalez Building, and Davis Branch Library Core Design Team completed on Tuesday, March 15th
• Design team turn around plans in 4-6 weeks.
• Meeting with Winters Joint Unified in late March to discuss plans and discuss any questions or concerns.
• Scheduling pre-permit meeting to discuss process and answer any questions from our contracted vendor.
• All EV charging equipment for Bauer Building, Gonzalez Building, and Davis Branch Library has been procured and delivered.
• Scheduled follow-up conversation for 600A site. Met with contractor in March.
5. Forecast of activities scheduled for the current calendar quarter • Start conversation with Contractor and Department of Community Services for permitting • Follow-up on 600A and Winters Community Library site
6. List of issues that are reasonably likely to affect Milestones Design and permitting issues may cause delays
Dashboard
Site Selection Contract
Award Permits Installation Testing Go Live
Completed Completed –
for 3 sites
IN PROGRESS
DASHBOARD KEY
Completed IN PROGRESS DELAYED ON HOLD
122
VALLEY CLEAN ENERGY
SACOG GRANT
APRIL 2022 PROGRESS REPORT FOR CITY OF WOODLAND
1. Project Summary
The City of Woodland was apportioned $150,000 to install at minimum two Level 2 EV charging stations in Woodland that are accessible to the public.
2. Project Manager
Rosie Ledesma, Environmental Resource Analyst, Community Development Department
3. Site (s) Description
City of Woodland public parking lot near 430-434 College St, Woodland CA 95695.
4. Site information (Maps, Pictures, Etc.)
See site map attached.
5. Description of any material planned changes to the Project.
N/A
6. Table schedule showing progress on achieving each of the Milestones See Table 1 below.
7. Summary of activities during the previous calendar quarter or month.
Scoped areas within the City for potential station installation. Explored feasibility of installation by Public Works staff. Submitted initial request for PG&E supply upgrade to site.
Received estimates for power source materials and charging stations.
8. Forecast of activities scheduled for the current calendar quarter Re-appropriate funding for grant funds not previously appropriated correctly. Finalize installation plan, location, and budget. Submit formal request for PG&E supply upgrade.
Design engineering plan and inquire about permitting requirements. Begin ordering supplies for initial groundwork.
9. Written descriptions about the progress relative to Milestones, including whether the milestone has been met or is on target to meet the Milestones
We are still in the initial planning stages of the project. Site selection and feasibility is still being reviewed, but should make progress in the next quarter.
10. List of issues that are reasonably likely to affect Milestones Cost of materials continue to increase and may limit proposed implementation plan without potentially securing additional funding sources.
123
VALLEY CLEAN ENERGY
SACOG GRANT
APRIL 2022 PROGRESS REPORT FOR CITY OF WOODLAND
11. A status report of activities, including a forecast of ongoing activities, information on project performance, and projections for the next twelve (12) months.
N/A
12. Progress and schedule of all material agreements, contracts, permits, approvals, technical studies, financing agreements, and purchase orders showing the start dates, completion dates, and completion percentages.
N/A
13. Pictures, in sufficient quantity and of appropriate detail, document the Project's progress.
N/A
14. Workforce Development or Supplier Diversity Reporting (if applicable) N/A
15. Any other documentation to be included for Board Update Dashboard
Site Selection Contract
Award Permits Installation Testing Go Live
In progress
DASHBOARD KEY
Completed IN PROGRESS DELAYED ON HOLD
TABLE 1
Milestone
Description Status % Completion
Estimated
Completion
Date
Notes
Site selection and
feasibility
In progress 50% April 2022
Power supply
upgrade
In progress 10% September
2022
124
Item 13
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 13
____________________________________________________________________________________ TO: Board of Directors
FROM: Mitch Sears, Executive Officer
Edward Burnham, Director of Finance & Internal Operations SUBJECT: Update to Valley Clean Energy Employee Handbook (April 2022) DATE: April 14, 2022
Recommendation
1. Adopt a resolution for updates to the VCE Handbook, as highlighted below and detailed in Attachment 1 - Employee Handbook (April 2022) Redline.
Background & Discussion
VCE’s Employee Handbook includes policies and guidelines for human resources and benefits offered to employees. The VCE Employee Handbook is maintained to comply with the latest practices and remain competitive with compensation packages provided by other CCAs.
The Board adopted an Employee Handbook in January 2018 with an initial update in January 2019. The Handbook was updated on July 11, 2019, in coordination with legal counsel to maintain consistency with new laws and personnel requirements. Additional updates to the Employee Handbook were made in February 2020 and 2021 to adjust employee medical benefits.
Attachment 1 - Employee Handbook (April 2022) includes the following key updates (shown in redline highlights in the attachment) :
• General update replacing “General Manager” with “Executive Officer.” • Work Schedules (PG 10-11) – This section has been updated to include flexible work schedules and telecommuting agreements.
• Discretionary pay for performance (PG 18) – This section has been added to detail the annual review of merit increases and performance bonuses for superior performance. • Compensation equity (PG 18-19) – This section has been added to detail conditions for adjusting base pay to remain competitive with labor market conditions and annual inflation conditions.
• Paid Time Off (PTO) Payout (PG 34) grants the Executive Officer the authority to allow employees with excess accumulated balances to cash out a maximum of 60 hours under specific conditions.
125
• Medical contribution (PG 35-36) amounts to remain competitive and parity to market rates from 1,750.00 to 1,826.00 for insurance benefits and $500.00 to 550.00 per month in lieu amounts.
• Retirement plan benefits (PG 36) – This addition includes the ability for employees to take loans that are administered under our existing plan.
Discretionary amounts for pay for performance, compensation equity, and PTO payout are subject to be included in the annual budget or a budget amendment and approved by the Board of Directors.
These sections are not guaranteed to employees and may not be available due to budget constraints or other business reasons.
Staff requests that the Board approve these changes detailed in the attached Employee Handbook (April 2022) redline to maintain best human resources practices and a competitive benefits package.
The 2022 budget included a VCE compensation equity adjustment of 5%, slightly less than the U.S.
Bureau of Labor Statistics reported 2021 inflation of 7% and increased medical benefits to maintain employee medial coverage. VCE’s legal counsel Richards Watson Gershon has reviewed and approved all changes in the attached updated Employee Handbook.
Attachment
1. Employee Handbook (April 2022) Redline
2. Employee Handbook (April 2022) Clean
3. Resolution
126
VCEA I Last Updated: February 2021 1
Employee Handbook
Updated in
April 2022
127
VCEA I Last Updated: February 2021 2
Table of Contents
Welcome To Valley Clean Energy Alliance .................................................................................................................5 Introductory Policies ..................................................................................................................................................6 Introduction & Future Revisions.........................................................................................................................6 Our Working Relationship ..................................................................................................................................6 Open Communication Policy ..............................................................................................................................6 Equal Employment Opportunity.........................................................................................................................6 Unlawful Harassment.........................................................................................................................................7 Employment Policies and Practices............................................................................................................................9 Classification of Employees................................................................................................................................9 Rehired/Converted Employees ....................................................................................................................... 10 Job Duties........................................................................................................................................................ 10 Work Schedules............................................................................................................................................... 10 Personnel Records........................................................................................................................................... 11 Inspection of Payroll Records.......................................................................................................................... 11 Layoffs and Work Reductions.......................................................................................................................... 11 Employment Termination................................................................................................................................ 11 Employment Verification and References....................................................................................................... 12 Timekeeping and Attendance ................................................................................................................................. 13 Punctuality and Attendance ............................................................................................................................ 13 Timekeeping Requirements for Non-Exempt Staff ......................................................................................... 13 Meal and Rest Periods for Non-Exempt Staff.................................................................................................. 14 Overtime Time Provisions for Non-Exempt Staff ............................................................................................ 14 Make Up Time for Non-Exempt Staff .............................................................................................................. 14 Exempt Employee Time Off............................................................................................................................. 14 Lactation Accommodation .............................................................................................................................. 14 Payment of Wages........................................................................................................................................... 15 Advances.......................................................................................................................................................... 15 Payroll Deductions, Wage Attachments and Garnishments........................................................................... 15 Reporting Time Pay ......................................................................................................................................... 15 128
VCEA I Last Updated: February 2021 3
Payment for Hours Worked During Business Travel for Non-Exempt Staff.................................................... 15 Pay for Mandatory Meetings for Non-Exempt Staff ....................................................................................... 16 Standards of Conduct.............................................................................................................................................. 16 Professional Business Conduct and Ethics ...................................................................................................... 16 Performance Evaluations................................................................................................................................. 18 Problem Resolution ......................................................................................................................................... 19 Alcoholic Beverage Consumption.................................................................................................................... 19 Drug and Alcohol Abuse .............................................................................................................................. 2019 Customer and Public Relations........................................................................................................................ 21 Confidentiality ............................................................................................................................................. 2221 Conflict of Interest........................................................................................................................................... 22 Solicitation................................................................................................................................................... 2322 Media Contact................................................................................................................................................. 23 Employment of Friends or Relatives................................................................................................................ 23 Personal Relationships in the Workplace........................................................................................................ 23 Dress Policy...................................................................................................................................................... 24 Day to Day Operations ............................................................................................................................................ 24 Employer and Employee Property................................................................................................................... 24 Electronic Systems and Privacy ....................................................................................................................... 25 Social Media Guidelines .................................................................................................................................. 25 Telephone Usage............................................................................................................................................. 27 Cell Phone Usage............................................................................................................................................. 27 Workplace Monitoring .................................................................................................................................... 28 Travel Expense Policy ...................................................................................................................................... 28 Agency Property and Equipment................................................................................................................. 2928 Personal Use of Agency Property .................................................................................................................... 30 Driving Record and Insurance.......................................................................................................................... 30 Health and Safety ............................................................................................................................................ 30 Smoking Policies.............................................................................................................................................. 31 Security............................................................................................................................................................ 31 Workplace Violence......................................................................................................................................... 31 Off-Duty Use of Facilities................................................................................................................................. 32 129
VCEA I Last Updated: February 2021 4
Parking............................................................................................................................................................. 32 Employee Suggestion Program........................................................................................................................ 32 Employee Benefits................................................................................................................................................... 32 Benefits............................................................................................................................................................ 32 Official Health Plan Documents....................................................................................................................... 32 Paid Time Off (PTO) ......................................................................................................................................... 33 Holidays........................................................................................................................................................... 35 Insurance Benefits........................................................................................................................................... 35 Domestic Partners........................................................................................................................................... 38 Cal-COBRA ....................................................................................................................................................... 38 Recreational Activities and Programs.............................................................................................................. 38 Leaves of Absence ....................................................................................................................................... 3938 Medical Leaves of Absence ............................................................................................................................. 39 Bereavement Leave......................................................................................................................................... 40 Bone Marrow and Organ Donation Leave....................................................................................................... 40 Civil Air Patrol Leave.................................................................................................................................... 4140 Domestic Violence and Sexual Assault Victim Leave................................................................................... 4140 Jury Duty or Witness Leave ............................................................................................................................. 41 Military Leave .................................................................................................................................................. 41 Pregnancy Disability Leave .............................................................................................................................. 41 Integration With Other Benefits...................................................................................................................... 42 Continuation of Medical Benefits.................................................................................................................... 42 School Appearance Leave............................................................................................................................ 4342 Time Off for Victims of a Violent or Serious Crime ......................................................................................... 43 Time Off to Vote .............................................................................................................................................. 43 Volunteer Emergency Duty Leave ................................................................................................................... 43 Workers’ Compensation.................................................................................................................................. 43 Return to Work Policy ................................................................................................................................. 4443 Receipt and Acknowledgment of VCEA Employee Handbook ........................................................................ 44 Receipt and Acknowledgement of VCEA Handouts .................................................................................... 4645 130
VCEA I Last Updated: February 2021 5
Welcome To Valley Clean Energy Alliance
DATE
Dear VCEA Employee:
INSERT COVER LETTER HERE
Sincerely,
Mitch Sears
Interim General ManagerExecutive Officer
131
VCEA I Last Updated: February 2021 6
Introductory Policies
Introduction & Future Revisions
We hope you will find your employment with Valley Clean Energy Alliance (“VCEA” or “Agency”) to be both rewarding and challenging. Our staff are key to VCEA’s success and we carefully select our new employees. This handbook is not a contract, express or implied, nor does it guarantee employment for any specific length of time.
The policies included in this handbook are guidelines only and are subject to change as VCEA deems appropriate.
From time to time you may receive notice of new or modified policies, procedures, benefits, or programs. No oral statements or representations can in any way change or alter the provisions of this employee handbook.
Our Working Relationship
VCEA does not offer tenure or any other form of guaranteed employment. Either VCEA or the employee can terminate the employment relationship at any time, with or without cause, with or without notice. This is called Employment At Will. This employment at will relationship exists regardless of any other written statements or policies contained in this handbook or any other Agency documents or any verbal statement to the contrary.
No one except VCEA’s General ManagerExecutive Officer can enter into any kind of employment relationship or agreement that is contrary to the previous statement. To be enforceable, such relationship or agreement must be in writing, signed by the General ManagerExecutive Officer, approved by the VCEA Board.
Open Communication Policy
At VCEA, courtesy, tact and consideration should guide each employee in relationships with fellow workers and the public. It is mandatory that each employee show maximum respect to every other person in the organization. The purpose of communication should be to help others and to make our business run as effectively as possible, thereby gaining the respect of our colleagues and customers.
Equal Employment Opportunity
VCEA is an equal opportunity employer and makes employment decisions on the basis of merit and business need. VCEA’s policies prohibit unlawful discrimination based on race, color, religious creed, gender, pregnancy (or related medical condition), genetic information, genetic characteristics, gender identity, gender expression, religion, marital status, military or veteran status, age, national origin or ancestry, physical or mental disability, medical condition, sexual orientation, or any other consideration made unlawful by federal, state or local laws.
All such discrimination is contrary to VCEA policy.
Reasonable Accommodation.
When necessary under the California Fair Employment and Housing Act and the Americans with Disabilities Act, VCEA will reasonably accommodate an employee or applicant with a disability if the employee or applicant is otherwise qualified to safely perform all of the essential functions of the position. 132
VCEA I Last Updated: February 2021 7
We will make reasonable accommodations when requested to comply with applicable laws ensuring equal employment opportunities to qualified individuals with a disability. VCEA will engage in a timely, good-faith, interactive process to determine a reasonable accommodation, if any, in response to a request for reasonable accommodation by an employee or applicant with a known physical or mental disability or known medical condition. VCEA will consider all requests for accommodation, but retains discretion to determine what, if any, accommodation to provide.
Unlawful Harassment
VCEA intends to provide a work environment that is pleasant, professional, and free from intimidation, hostility or other offenses which might interfere with work performance. Harassment of any sort - verbal, physical, or visual - will not be tolerated. This includes both sexual harassment as well as harassment based on an employee’s status in a protected class. These classes include, but are not necessarily limited to race, color, religion, age, gender, genetic information, genetic characteristics, gender identity, gender expression, sexual orientation, pregnancy (or related medical condition), national origin or ancestry, disability, medical condition, marital status, veteran status, military status, or any other protected status defined by law. This policy also prohibits unlawful harassment based on the perception that anyone has any of those characteristics, or is associated with a person who has or is perceived as having any of those characteristics. This policy extends to unlawful harassment of VCEA employees by any other VCEA employees, vendors, independent contractors, customers, or others with whom employees may come into contact with during their work for VCEA.
Our workplace is not limited to our facilities, but may also include customer and vendor facilities, as well as anywhere a business-related function, or social function sponsored by VCEA, is taking place.
What Is Workplace Harassment?
Workplace harassment can take many forms. It may be, but is not limited to, words, signs, offensive jokes, cartoons, pictures, posters, e-mail jokes, social media communication, messages or statements, pranks, intimidation, physical assaults or contact, or violence. It may also take the form of other vocal activity including derogatory statements not directed to the targeted individual but taking place within their hearing. Other prohibited conduct includes written material such as notes, photographs, cartoons, articles of a harassing or offensive nature, and taking retaliatory action against an employee for discussing or making a harassment complaint. In addition, this policy protects employees against conduct from all individuals in the workplace, such as fellow employees, supervisors, outside customers, vendors, independent contractors, or other non-employees who conduct business with our agency.
What Is Sexual Harassment?
Sexual harassment may include unwelcome sexual advances, requests for sexual favors, or other verbal or physical contact of a sexual nature. When this conduct creates an offensive, hostile and intimidating working environment, it may prevent an individual from effectively performing the duties of their position. It also encompasses such conduct when it is made a term or condition of employment or compensation, either implied or stated and when an employment decision is based on an individual's acceptance or rejection of such conduct.
It is important to note that harassment crosses age and gender boundaries and cannot be stereotyped. Among other perceived unconventional situations, sexual harassment may involve two women or two men. Harassment 133
VCEA I Last Updated: February 2021 8
may exist on a continuum of behavior. For instance, one example of harassment may be that of an employee showing offensive pictures to another employee.
Generally, two categories of harassment exist. The first, "quid pro quo," may be defined as the demand for sexual favors in exchange for improvement or continuance in your working conditions and/or compensation.
The second category, "hostile, intimidating, offensive working environment," can be described as a situation in which unwelcome sexual advances, requests for sexual favors, or verbal or other conduct creates an intimidating or offensive environment. Examples of a hostile, intimidating, and offensive working environment include, but are not limited to, pictures, cartoons, symbols, or items found to be offensive. An employee may have a claim of harassment even if he or she has not lost a job or other economic benefit.
Responsibility
All VCEA employees, and particularly supervisors, have a responsibility for keeping our work environment free of harassment. Any employee who becomes aware of an incident of harassment, whether by witnessing the incident or being told of it, must report it to their immediate supervisor, the General ManagerExecutive Officer or a management representative with whom they feel comfortable. When supervisors become aware of the existence of conduct that could violate this policy, they are obligated to take prompt and appropriate action, whether or not the recipient of the harassment wants VCEA to do so.
Reporting
If you believe you have been harassed by any agency employee, customer, contractor, or other business contact, you are required to report it to your supervisor or any other member of management. While we encourage you to communicate directly with the alleged harasser, and make it clear that the harasser's behavior is unacceptable, it is not required that you do so. It is essential, however, to notify a member of management immediately even if you are not sure the offending behavior is considered harassment. Any incidents of harassment must be immediately reported. At any time if you feel that you are in immediate harm and do not have time to contact either the General ManagerExecutive Officer or your supervisor, seek assistance from any management representative.
Appropriate investigation and disciplinary action will be taken. All reports will be promptly investigated.
However, confidentiality cannot be guaranteed. Any employee found to have harassed any employee will be subject to severe disciplinary action up to and including termination. VCEA will also take any additional action necessary to appropriately remedy the situation. Retaliation of any sort will not be permitted. No adverse employment action will be taken for any employee making a good faith report of alleged harassment.
All employees must report any incidents immediately so that complaints can be quickly and fairly resolved. The California Department of Fair Employment and Housing (“DFEH”) investigates and may prosecute complaints of harassment. Whenever an employee thinks he or she has been harassed or that he or she has been retaliated against for resisting or complaining, that employee may file a complaint with the DFEH. The nearest DFEH office is listed in the telephone book or on-line.
Harassment and Retaliation Prohibited
VCEA prohibits any form of harassment on a protected basis that impairs an employee’s working ability or emotional well-being at work. VCEA also prohibits any employee from retaliating in any way against anyone 134
VCEA I Last Updated: February 2021 9
who has raised any concern about harassment or discrimination against another individual. We will investigate any complaint of harassment, discrimination, and retaliation and will take immediate and appropriate disciplinary action if any such conduct has been found within the workplace.
Employment Policies and Practices
Classification of Employees
A new hire will be classified as either “exempt” or “non-exempt.” Non-exempt employees are entitled to overtime pay for hours worked in excess of forty (40) hours per workweek.
Exempt employees are those employees whose duties and responsibilities allow them to be “exempt” from provisions as provided by the Federal Fair Labor Standards Act (FLSA) and any applicable state laws. If you are an exempt employee, you will be advised that you are in this classification at the time you are hired, transferred, or promoted. Participation in VCEA’s benefits programs may be affected by your employment status or classification.
All employees of VCEA whether exempt, non-exempt, full-time, part-time, or temporary are employed at-will.
1. The EXEMPT status applies to certain administrative, professional, and executive staff. Exempt employees qualify for exemption from overtime regulations under state and federal law and their salaries already take into account that they may work long hours.
2. The NON-EXEMPT status applies to all other regular employees. Non-exempt employees receive extra pay for overtime work (as described in the overtime section of this employee handbook). Employees working in non-exempt positions are compensated for the actual amount of time spent on their job and are entitled to receive time and one-half (1 ½) their regular rate of pay for each hour worked in excess of forty (40) hours in a work week.
3. FULL-TIME employees work on a regular basis for at least 40 hours per week. Full-time employees may or may not be EXEMPT. They are eligible for all benefits available through work at VCEA, so long as they meet the applicable requirements, such as length of service.
4. PART-TIME employees are regularly scheduled to work fewer than 40.0 hours per week. Part-time employees who are regularly scheduled to work a minimum of 30 hours per week are entitled to all benefits as explained later in this employee handbook according to a prorated formula based on their average hours worked compared to a standard 40.0 hour workweek. Part-time employees who are regularly scheduled to work less than 30 hours per week are not eligible for benefits covered in this employee handbook, other than those required by law or as stipulated in writing signed by the General ManagerExecutive Officer.
5. TEMPORARY EMPLOYEES are hired with the understanding that their employment will not continue beyond a stated date or beyond completion of a specified project or projects. Temporary employees will generally not be employed for more than 6 months. Temporary employees are not eligible for benefits covered in this employee handbook, other than those required by law or as stipulated in writing signed by the General ManagerExecutive Officer.
135
VCEA I Last Updated: February 2021 10
6. INTERNS are employees who are gaining supervised practical experience in a professional field. Interns may be paid, but are not eligible for any benefits listed in this employee handbook except as required by law.
Recruitment
VCEA will conduct an appropriate recruitment, depending on the needs of the organization and the position involved. Open positions may or may not be posted to solicit outside candidates. If you are aware of a vacancy and are interested in being considered for the position, you should discuss the matter with your current supervisor.
Rehired/Converted Employees
If you meet eligibility requirements for rehire at the time of your separation from VCEA, you may apply for any open position for which you are qualified. Former employees will be considered along with all other applicants, and have no greater chance of being selected for employment than all other applicants.
If you are rehired by VCEA or convert from part-time to full-time status, your length of service with VCEA for all purposes will be calculated from the rehire date or the date of conversion to full-time status.
Employees who are involuntarily terminated for performance reasons or for violation of agency policy are ineligible for rehire. In addition, employees who voluntarily resign may still be ineligible for re-hire if VCEA learns of circumstances that would have justified termination for performance-based reasons regardless of when that information is acquired.
Job Duties
Your supervisor will explain your job responsibilities and the performance standards expected of you. Your job responsibilities may change at any time during your employment; for example you may be asked to work on special projects or to assist with other work necessary or important to the operation of VCEA. It is expected that VCEA will have your cooperation and assistance in performing such additional work.
VCEA also may, at any time, with or without notice, alter or change your job responsibilities, reassign or transfer your position, or assign you additional job responsibilities depending on business needs.
Work Schedules
VCEA’s normal business hours are 8:00 a.m. through 5:00 p.m., Monday through Friday. Your supervisor will assign your individual work schedule, and you are expected to be ready to perform your work at the start of your scheduled shift. Flexible work schedules and telecommuting may be accommodated with the approval of your supervisor. Alternative work arrangements are not an entitlement or employee benefit. A supervisor may end the arrangement at any time for any reason or without cause. All changes to normal working hours, flexible work schedules, and telecommuting arrangements should be documented with your supervisor and HR representative.
On occasion, work schedules may fluctuate with customer demand and business needs. If a change in your work schedule is required, your supervisor will notify you at the earliest opportunity. You may be required to work 136
VCEA I Last Updated: February 2021 11
overtime or hours other than those normally scheduled. Exempt employees are required to work as many hours as are necessary to complete the responsibilities of their positions.
Personnel Records
A personnel file will be confidentially maintained for each VCEA employee. You may review your personnel file during regular business hours upon making a request to the General ManagerExecutive Officer. An appointment will be made for the purpose of allowing the review.
VCEA will treat your personnel records as confidential and private. However, there are certain times when information may be given to a person outside VCEA. These include:
1. In response to a subpoena, court order, or order of an administrative agency;
2. To a governmental agency as part of an investigation by that agency of VCEA’s compliance with applicable law;
3. In a lawsuit, administrative proceeding, grievance, or arbitration in which you and VCEA are parties;
4. In a workers’ compensation proceeding;
5. To administer employee health benefit plans;
6. To a health care provider, when necessary;
7. To a first aid or safety personnel, when necessary; and
8. Information will be disclosed to prospective employers in accordance with the section on Employment Verification and References.
Please promptly notify the General ManagerExecutive Officer of any changes in your personal data. Keeping your file up-to-date can be important with regard to pay, deductions, benefits and other matters. Coverage or benefits that you and your family may receive under VCEA’s benefits package could be negatively affected if the information in your personnel file is incorrect.
Inspection of Payroll Records
Employees and former employees have the right to inspect and obtain copies of their own payroll records as required by applicable law. All requests must be submitted in writing to VCEA’s General ManagerExecutive Officer. Responses will be provided as required by law. Individuals who make a request may be asked to provide identification and may be required to pay for the cost of making the copies.
Layoffs and Work Reductions
VCEA may implement layoffs. Employees will be selected for layoff at VCEA’s discretion based on a combination of factors, including, but not necessarily limited to: business needs, employee performance and productivity, qualifications, attendance, attitude, ability and willingness to work the required days and hours, and the ability to work cooperatively with others in the affected work unit.
The weight given to the above factors may vary depending upon the particular needs of the affected work unit and VCEA as a whole at the time of the layoff.
Employment Termination
VCEA strives to ensure a smooth transition for employees leaving VCEA. 137
VCEA I Last Updated: February 2021 12
VCEA and its employees have an employment relationship that is known as “employment at will.” This means that employees are not required to work for VCEA for any set period of time nor is VCEA required to employ individuals for any specific length of time. The statements made in this policy do not alter, modify or limit the employment at will relationship. An “at-will” employee is subject to termination of employment at any time VCEA concludes it appropriate to do so.
Involuntary separation from service means that the termination action is being initiated by VCEA, rather than by the employee. In general, employees who are discharged by VCEA are not eligible for rehire. However, employees who are terminated due to layoff or restructuring may be eligible for rehire or recall at VCEA’s discretion.
VCEA will consider you to have voluntarily terminated your employment if you do any of the following:
1. Resign from VCEA;
2. Fail to return from an approved leave of absence on the date specified by VCEA, or;
3. Fail to report to work or call in for 3 consecutive work days In the event that you resign voluntarily, we ask – but do not require – that you provide two weeks’ notice to allow for a smooth transition and training of any replacement personnel.
All agency property such as office equipment, credit cards, keys, manuals, computer equipment, and cell phones must be returned on or prior to the last day of employment. You should return these items to your immediate supervisor.
Final wages for time worked, plus any pay for unused but accrued PTO, will normally be paid on your last day of employment, but no later than the next regularly scheduled payday.
Employment Verification and References
When VCEA receives a request for references or employment verification, VCEA will disclose only the dates of employment and the title of the last position held. VCEA will provide a prospective employer with your last earned wage or salary only at your written request. VCEA will release additional information only with a signed authorization and waiver of liability in a form acceptable to VCEA.
Only the General ManagerExecutive Officer is authorized to respond to requests for employee references and verification of employment. No other supervisor or employee is authorized to provide references for current or former employees.
As an employee of VCEA, all requests for information regarding another employee must be forwarded to the General ManagerExecutive Officer.
138
VCEA I Last Updated: February 2021 13
Timekeeping and Attendance
Punctuality and Attendance
Regular attendance and punctuality are “essential functions” of your job. You are expected to maintain regular attendance during all scheduled work hours, report to work on a timely basis, and work through the end of your regularly scheduled workday. Chronic absenteeism or lateness will not be tolerated and will result in discipline, up to and including termination. In the event of an unscheduled absence, please abide by the following:
• You must personally call your supervisor prior to the start of your shift if you are unable to report to work, or will be late to work, on any particular day.
• You are expected to advise another management representative of your absence if you are not able to reach your supervisor and leave a telephone number where you can be reached. • You may not have a relative or friend call in to report your absence, unless you are unable to call yourself due to a medical or other emergency.
• If you call after the start of your shift you will be considered tardy for that day. • You are expected to provide your supervisor with explanation of your absence or tardiness and inform your supervisor of the expected duration of the absence. If you are absent for medical reasons, you do not need to disclose the underlying medical condition.
• With the exception of certain extenuating circumstances, you must call in each day you are scheduled to work and will not report to work.
Repeated absenteeism or tardiness (whether excused or not) is not tolerated. Continuing patterns of absences, early departures, or tardiness - regardless of the exact number of days—may warrant disciplinary action, up to and including termination of employment. Emergency or extraordinary circumstances concerning an absence or tardiness will be considered, and we reserve the right to make an exception to this policy if, at our discretion, an exception is warranted. Repeated car failures, missing the bus, consistently failing to arrange back-up childcare or oversleeping do not constitute emergency or extraordinary circumstances. We reserve the right to determine what is considered excessive absenteeism. In all cases, we will make accommodations for qualified employees with disabilities where required by law.
If you fail to report for work for three (3) consecutive days without any notification to your supervisor, we will consider that you have abandoned your employment, and have resigned your position.
Timekeeping Requirements for Non-Exempt Staff
Applicable law requires VCEA to keep an accurate record of time worked. Employee time records are official VCEA records and must be accurately maintained. You must input your own time at the start and at the end of each workday, and at the start and end of each lunch hour. Completing another employee’s time record or intentionally falsifying a time record is a serious violation and may result in immediate termination of employment. If a time record needs to be corrected, both you and your supervisor must initial the change in the time record to verify its accuracy.
139
VCEA I Last Updated: February 2021 14
Meal and Rest Periods for Non-Exempt Staff
Employees will generally be provided with at least a 30-minute lunch break per day, which can be scheduled by your supervisor to best accommodate the workday.
Overtime Time Provisions for Non-Exempt Staff
As necessary, you may be asked to work overtime. Only actual hours worked in a given workday or workweek will be counted in determining which hours constitute overtime. We will attempt to distribute overtime evenly and accommodate individual schedules. A supervisor must previously authorize all overtime work. Any overtime worked without prior authorization may be grounds for discipline. We provide compensation for all overtime hours worked by non-exempt employees as follows: All hours worked in excess of forty (40) hours in one workweek will be treated as overtime.
Hours worked for purposes of overtime do not include an unpaid meal period, or hours away from work due to PTO, sickness, holiday, jury duty, or other absences from work. No overtime compensation will be paid to exempt employees. Exempt employees may have to work hours beyond their normal schedules, as work demands require.
Make-Up Time for Non-Exempt Staff
Make-Up time is defined as when a non-exempt employee asks his or her supervisor for additional time off to attend to personal matters. If the request is granted, this time off will be without pay. If you wish to make up this missed time, you may submit a “Make-Up Time Request Form” to your supervisor before the make-up time is worked. It is within the supervisor’s discretion to grant the request. Make-Up time must be worked in the same workweek as the missed time (including prior to the missed time) in order not to incur overtime. You may not work over forty (40) hours total in the week including make-up time.
Exempt Employee Time Off
Exempt employees of VCEA are paid a salary, which compensates them for working as many hours as required to complete their job duties. Exempt employees do not receive overtime pay. We realize, however, that in instances of extraordinary additional pressure or increased work hours, it may be appropriate for supervisors to recognize the exempt employee’s efforts by granting the employee extra time-off separate from and in addition to the employee’s accrued PTO time. In order to achieve consistency among supervisors and fairness to the exempt employees, supervisors should use the following guidelines when exercising their discretion to grant additional time off:
1. Limit the amount of additional time-off to no more than two days;
2. Require the employee to take the time-off in the week immediately following the increased hours whenever possible and;
3. Do not allow employees to accumulate any granted but unused time-off Lactation Accommodation
VCEA will provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee's infant child. The break time shall, if possible, run concurrently with any break time already provided to the employee. VCEA shall provide the employee with the use of a room or other location, other than a toilet stall, in close proximity to the employee's work area, for the employee to express milk in 140
VCEA I Last Updated: February 2021 15
private. If special arrangements are made to provide a non-exempt employee extra time beyond her normal rest period, the time will be unpaid.
Payment of Wages
Paydays are semi-monthly, the 15th and last day of the month. There are 24 pay periods in a year. The workday (a 24-hour, consecutive period) begins at 12:01 a.m. and ends at midnight. The workweek begins on Sunday and ends on Saturday.
If a regular payday falls on a weekend or holiday, you will be paid on the first day of work prior to the regularly scheduled payday. If there is an error on your check, please report it immediately to your supervisor.
For your convenience, we offer a direct deposit option.
Advances
We do not permit advances against paychecks or against unaccrued PTO.
Payroll Deductions, Wage Attachments and Garnishments
VCEA makes certain deductions from every employee’s paycheck. Among these are applicable federal, state, and local income taxes, social security and Medicare taxes, state disability insurance contributions, and paid family leave contributions. By law, VCEA is also required to honor legal attachments and garnishments of an employee’s wages or salaries. If your wages are attached, we will withhold the specified amount to satisfy the terms of the attachment.
Reporting Time Pay
Reporting time pay will be paid under the following conditions:
1. Reporting time pay to non-exempt is owed when you report to work at your regularly scheduled time, but you are given less than half the usual or scheduled day's work. In this case, you will be paid for at least half of the hours you were scheduled to work, but never less than two hours pay, and never more than four hours pay.
2. Reporting time pay is also owed if you are required to report to work a second time in any one (1) workday and are given less than two (2) hours work on the second reporting. In this case you will receive at least two (2) hours pay for the second appearance.
These provisions do not apply if you are on a paid “standby” or “on call” status. In some instances, you may not receive reporting time pay. Reporting time pay does not apply if public utilities fail, such as water, gas, electricity, or sewer and/or when work is interrupted by an “act of God” or other causes not within VCEA’s control.
Payment for Hours Worked During Business Travel for Non-Exempt Staff Whenever possible, non-exempt employees traveling on agency business are expected to do so during normal working hours. In the very rare instance where your travel time constitutes overtime, you will be paid overtime as required by law. Non-exempt employees will be paid for all hours worked, including out of town travel time, at regular and overtime pay rates according to the law. Pay for travel time may be at a rate of pay that is less than the employee's normal rate of pay.
141
VCEA I Last Updated: February 2021 16
If you are non-exempt and traveling on business, you will not be paid for time between work assignments; e.g., if you stay the night in a hotel, pay begins when you begin to work, or are in transit. Travel is to be scheduled in advance, in writing by your supervisor, with the knowledge of the General ManagerExecutive Officer.
Non-exempt travel may be approved on an as-needed basis, but only with prior authorization from your supervisor.
Pay for Mandatory Meetings for Non-Exempt Staff
VCEA will pay you for your attendance at meetings, lectures and training programs if all of the following conditions are met:
1. Attendance is mandatory (i.e. required by VCEA).
2. The meeting, course, or lecture is directly related to your job.
3. You are notified of the necessity for such meetings, lectures, or training programs by your supervisor (i.e. pre-approval by management is required)
If you meet the above conditions you will be compensated at your regular rate of pay. If you are required to travel, then travel pay will be provided. You will not receive compensation for voluntary attendance in courses that are conducted outside of normal business hours and/or that are not directly related to your current job.
Standards of Conduct
Professional Business Conduct and Ethics
By accepting employment with VCEA, you have a responsibility to VCEA and to your fellow employees to adhere to certain codes of behavior and conduct. The purpose of these rules is to ensure that you understand what conduct is expected and necessary. When each person is aware that he or she can fully depend upon fellow workers to follow the rules of conduct, then our agency will be a better place for everyone to work.
Generally speaking, we expect you to act in a mature and responsible way at all times. VCEA values honesty in communication and personal responsibility. To avoid any possible confusion, some of the more obvious unacceptable activities are noted below. If you have any questions concerning any work or safety rule, or any of the unacceptable activities listed, please ask for an explanation.
Occurrences of any of the following violations, because of their seriousness, may result in disciplinary action up to and including immediate suspension or termination:
Unacceptable Activities:
1. Generally, conduct which is disloyal, disruptive, or damaging to VCEA.
2. Falsification of timekeeping records.
3. Dishonesty; falsification or misrepresentation on your application for employment or other work records; lying about sick or personal leave; falsifying reason for a leave of absence or other data requested by VCEA; alteration of agency records or other agency documents.
4. Working under the influence of alcohol or illegal drugs, including marijuana. 142
VCEA I Last Updated: February 2021 17
5. Theft or inappropriate removal or possession of agency property or the property of fellow employees; unauthorized use of agency equipment and/or property for personal reasons.
6. Possession, distribution, solicitation, sale, transfer, or use of alcohol or illegal drugs, including marijuana, in the workplace, while on duty, or while operating agency-owned vehicles or equipment.
7. Fighting, threatening, or coercing fellow employees on agency property or during working hours, for any purpose.
8. Boisterous or disruptive activity in the workplace.
9. Negligence or any careless action leading to damage of agency-owned or customer-owned property or which endangers the life or safety of another person.
10. Obscene or abusive language toward any supervisor, employee or customer; indifference or rudeness towards a customer or fellow employee; any disorderly/antagonistic conduct on agency premises.
11. Insubordination or other disrespectful conduct; refusing to obey instructions properly issued by your supervisor pertaining to your work; refusal to help out on a special assignment.
12. Violation of security or safety rules or failure to observe safety rules and/or practices; failure to wear required safety equipment; tampering with VCEA equipment or safety equipment.
13. Creating or contributing to unsanitary conditions in the workplace.
14. Smoking in prohibited areas.
15. Any act of harassment, sexual, racial or other; telling sexist or racist jokes; making racial or ethnic slurs.
16. Possession of dangerous or unauthorized materials, such as explosives or firearms, in the workplace.
17. Excessive absenteeism; failure to report an absence or late arrival.
18. Unauthorized absence from work station during the workday; sleeping or loitering during working hours.
19. Unauthorized use of telephones, mail system, or other agency-owned equipment.
20. Originating, spreading, or taking part in malicious gossip or rumors about employees of VCEA.
21. Unauthorized disclosure of business "secrets" or confidential information; giving confidential or proprietary information to competitors or other organizations or to unauthorized VCEA employees; breach of confidentiality of personnel or agency information.
22. Violation of agency rules or policies; any action that is detrimental to VCEA’s efforts to operate profitably.
23. Unsatisfactory or careless work; failure to meet production or quality standards as explained to you by your supervisor.
24. Soliciting during working hours and/or in working areas; selling merchandise or collecting funds of any kind for charities or others without authorization during business hours, or at a time or place that interferes with the work of another employee on agency premises.
25. Gambling on agency property.
26. Failure to immediately report any damage or accident involving agency equipment or vehicles.
27. Failure or refusal to comply with the work schedule, including mandatory overtime.
28. Using, removing, or borrowing agency equipment or property without prior authorization.
29. The use of abusive or threatening language or actions toward anyone.
This list is not exhaustive. Rather, we ask that you keep in mind at all times the need to conduct yourself with reasonable and proper regard for the welfare and rights of all our employees and for the best interests of the agency. This statement of prohibited conduct does not alter VCEA's policy of at-will employment. Either you or 143
VCEA I Last Updated: February 2021 18
VCEA remains free to terminate the employment relationship at any time, with or without reason or advance notice.
Performance Evaluations
VCEA encourages an open dialogue between an employee and his or her supervisor on an informal, regular basis. We believe this type of interaction increases job satisfaction for both the employee and VCEA.
Formal performance evaluations will be conducted annually or with frequency dependent on length of service, job position, past performance, changes in job duties, or recurring performance problems. After the review, you will be asked to sign the evaluation report to acknowledge that it has been presented to you and discussed with you by your supervisor, and that you are aware of its contents.
Positive performance evaluations do not guarantee increases in salary, bonuses, or promotions. Salary increases, bonuses, and promotions are solely within the discretion of VCEA, and depend upon many factors in addition to performance. Having your compensation reviewed does not necessarily mean that you will be given an increase.
VCEA uses a discretionary pay-for-performance compensation model to support the highest levels of organizational performance. The intent is to reward individual employee effort and results commensurate with their contributions and impact toward achieving the goals and objectives of the agency. The primary form of a performance reward is a merit increase. These base pay increases move an employee through their salary range and support the agency’s retention goals by ensuring employee pay remains competitive with similar roles in the market. Employees who meet or exceed their goals and objectives, as evidenced by the employee receiving an overall rating of 2.0 (Effective) or higher on their year-end Performance Check-in, may be eligible to receive a merit increase (an adjustment in base salary) based on that performance. In limited cases, and with written justification from the supervisor, manager, and Director, an employee with an overall performance rating of less than 2.0 (Effective), may be considered for a reduced base salary.
Performance bonuses also may be used to reward employees when superior performance, as defined below, has been demonstrated in achieving goals and objectives. In most cases, performance bonuses are used to supplement merit increases, or instead of merit increases, when an employee is at or close to the top of their salary range. “Superior performance” is evidenced by an employee receiving a rating of 3.0 (Highly Effective) on one or more goals that, in total, represent at least 25% of the employee’s assigned work during the year. “Superior performance” also may be evidenced by an employee receiving an overall rating of 2.5 or higher on their year-end Performance Check-in. Recommendations for performance bonuses must be justified in writing by the supervisor and/or manager and fully describe the efforts put forth by the employee that demonstrates superior performance.
The written justification, and approval of the bonus, are retained. Funding for performance bonuses is included in the annual budget or a budget amendment and approved by the Board of Directors. Performance bonuses are not guaranteed and may not be available due to budget constraints or other business reasons. 144
VCEA I Last Updated: February 2021 19
Compensation Equity
A pay equity increase may be granted to an employee under certain circumstances, such as the following: a significant lag in salary exists relative to market conditions or between employees with comparable job functions who have similar levels of experience, skills and knowledge, and demonstrated performance; an employee’s assigned functions or work tasks increase the scope of the position but do not warrant reclassification; salary compression exists between supervisors and their employees; in order to address retention of employees with highly specialized skills or due to competitive job markets. In addition, a discretionary agency-wide pay equity adjustment for inflation in accordance with the U.S. Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) may be made at the option of the Board of Directors.
Recommendations for pay equity increases are prepared by the Director of Finance and Internal Operations and must be approved by the Executive Officer. Employees approved for a pay equity increase will be notified, and adjustments may be paid retroactively to the first pay period of the current calendar year. Funding for pay equity increases is included in the compensation identified in the annual budget and approved by the Board of Directors. Pay equity increases are discretionary and may not be available due to budget constraints or other business reasons
Problem Resolution
At some time, you may have a complaint or question about your job, your working conditions, or the treatment you are receiving. Your good-faith complaints and questions are of concern to us. We ask that you take your concerns first to your supervisor, following these steps:
1. Bring the situation to the attention of your immediate supervisor who will then review your concern and provide a solution or explanation.
2. If the problem remains unresolved, you may present it in writing to the General ManagerExecutive Officer who will work towards a resolution.
This procedure, which we believe is important for both you and us, cannot result in every problem being resolved to your satisfaction. However, we value your input and you should feel free to raise issues of concern, in good faith, without the fear of retaliation.
Alcoholic Beverage Consumption
Due to the high risk and liability involved, VCEA will not provide alcoholic beverages at social gatherings to VCEA employees. This policy applies to the following:
1. Birthday parties;
2. Office parties;
3. Office picnics; and
4. Recreational activities (i.e. organized team sports) 145
VCEA I Last Updated: February 2021 20
Drug and Alcohol Abuse and Testing
VCEA is concerned about the use of alcohol, illegal drugs, or controlled substances as it affects the workplace.
We comply with state and federal drug abuse regulations, including the Drug-Free Workplace Act of 1988. Use of these illegal substances (whether illegal under California or federal law) whether on or off the job can adversely affect your work performance, efficiency, and safety and health. The use or possession of these substances on the job constitutes a potential danger to the welfare and safety of other employees, and exposes VCEA to the risks of property loss or damage, or injury to other persons. Furthermore, the use of prescription drugs and/or over-the-counter drugs also may affect your job performance and seriously impair your value to us. Any employee who is using prescription or over-the-counter drugs that may impair your ability to safely perform the job, or affect the safety or well-being of others, must notify a supervisor of such use immediately before starting or resuming work. All precautions necessary to preserve your privacy will be taken. You must adhere to the rules stated in this policy as a condition of employment. Failure to comply with this policy may result in discipline, including termination. The General ManagerExecutive Officer has been designated to administer this policy, monitor the program and make reports as required by law.
If there is ever a reasonable basis to suspect you of violating the drug and alcohol policy and being under the influence during working hours, you will be requested to immediately submit to a drug and/or alcohol test.
Suspicion will be based on objective symptoms, such as factors related to your appearance, behavior and speech. A reasonable basis may also exist if you are found to be in possession of illegal drugs, alcohol or paraphernalia connected with the use of an illegal drug. Possession of illegal drugs or alcohol is prohibited even if you have not used these substances.
The following rules and standards of conduct apply to all employees either on agency property, or during the workday (including meals and rest periods). The following are strictly prohibited by VCEA:
1. Possession or use of alcohol or illegal drugs, including marijuana, or being under the influence of alcohol or illegal drugs while on agency premises or at any time on duty.
2. Driving an agency vehicle or driving for agency business in a private vehicle while under the influence of alcohol or illegal drugs, including marijuana.
3. Distribution, sale, or purchase of an illegal or controlled substance while on agency premises or at any time on duty.
4. Possession or use of an illegal or controlled substance, or being under the influence of an illegal or controlled substance while on agency premises or at any time while working.
5. Any drug or alcohol statute conviction. You must notify VCEA within 5 days of such conviction.
In order to enforce this policy, we reserve the right to conduct searches of agency property and to implement measures necessary to deter and detect abuse of this policy.
In the event of suspicion of use in connection with an on the job accident, you may be asked to provide body substance samples (such as urine and/or blood) to determine the illicit or illegal use of drugs and alcohol. VCEA will test for alcohol, cannabinoids, (THC), Opiates, i.e. codeine and morphine, Cocaine metabolites, Amphetamines, i.e. amphetamine and metamorphines, adulterants low creatine levels and Phencyclidine. VCEA 146
VCEA I Last Updated: February 2021 21
assures that any information concerning your drug and/or alcohol use will remain confidential. Refusal to submit to drug testing may result in disciplinary action, up to and including termination of employment.
If the results of your drug and/or alcohol test are positive, VCEA will take disciplinary action which may include suspension or immediate termination. The disciplinary action will be based on the seriousness of the offense and your past performance. If you return to work after testing positive for drugs and/or alcohol, you may be required to consent to unannounced tests for drugs and/or alcohol for a specified period as a condition of continued employment. In the event that you test positive, you may request a second test to be performed by a reliable drug testing agency, at your expense.
Any conviction you receive on a charge of illegal sale or possession of any controlled substance will not be tolerated. In addition, we must keep people who use, sell, or possess controlled substances off VCEA's premises in order to keep the controlled substances themselves off the premises.
Violation of the above rules and standards of conduct will not be tolerated. VCEA may bring the matter to the attention of appropriate law enforcement authorities.
VCEA’s policy on drug and alcohol in no way limits or alters the at-will employment relationship.
Customer and Public Relations
The success of VCEA depends upon the quality of the relationships between VCEA, our employees, and our customers, suppliers and the general public. Our customers’ impression of VCEA and their interest and willingness to do business with us are formed by how you serve them.
The opinions and attitudes that customers have toward our agency can be affected for a long period of time by the actions of just one employee. It is sometimes easy to take a customer for granted, but when we do, we run the risk of not only losing that customer, but their associates, friends or family who also may be customers or prospective customers.
Here are several things you can do to help give customers a good impression of VCEA:
1. Customers are to be treated courteously and given proper attention at all times. Never regard a customer’s questions or concerns as an interruption or an annoyance. Customer inquiries, whether in person or by telephone, must be addressed promptly and professionally.
2. Never place a telephone caller on hold for an extended period of time. Direct incoming calls to the appropriate person and make sure that the call is answered.
3. Act competently and deal with customers in a courteous and respectful manner. Through your conduct, show your desire to assist the customer in obtaining the help that he or she needs. If you are unable to help a customer, find someone who can.
4. All correspondence and documents, whether to customers or others, must be neatly prepared and error-free. Attention to accuracy and detail in all paperwork demonstrates your commitment to those with whom we do business.
5. Never argue with a customer. If a problem develops or if a customer remains dissatisfied, ask your supervisor to intervene.
147
VCEA I Last Updated: February 2021 22
6. Communicate pleasantly and respectfully with other employees at all times.
These are the building blocks for your and VCEA’s continued success.
Confidentiality
It is your responsibility to safeguard confidential information obtained during your employment with us, including financial information obtained from customers and private information about other employees.
You may in no way reveal or divulge any such information unless it is necessary for you to do so in the performance of your duties. Access to confidential information should be on a "need-to-know" basis and must be authorized by your supervisor.
If you are questioned by someone outside VCEA or your department and you are concerned about the appropriateness of giving them certain information, you are not required to answer. Instead, as politely as possible, refer the request to your supervisor or the General ManagerExecutive Officer.
It is also important to remember that you may not disclose or use proprietary or confidential information except as your job requires. You may not keep or retain any originals or copies of reports, notes, proposals, customer lists or other confidential and proprietary documents, equipment, supplies, or property belonging to VCEA. Any and all copies or originals of reports, and notes belong to VCEA and must be turned over to VCEA within twenty-four (24) hours of termination of employment.
You are not permitted to remove or make copies of any VCEA records, reports or documents without prior management approval. Do not post confidential information about VCEA, customers, employees, or affiliates on any social media. Disclosure of confidential information could lead to termination, as well as other possible legal action.
Conflict of Interest
As an employee of VCEA, you must avoid actual or potential conflicts of interest with VCEA. If you are found to have a conflict of interest, you may be subject to discipline, including termination. You should contact your supervisor with any questions about this policy. Prohibited activities include, but are not limited to:
1. Having a direct or indirect financial relationship with a VCEA customer, vendor, or supplier; however, no conflict will exist in the case of ownership of less than 1 percent of a publicly traded corporation.
2. Engaging in any other employment or personal activity during work hours, or using VCEA’s name, logo, equipment or property, including stationery, office supplies, computers, telephones, fax machines, postage, and office machines, for personal purposes.
3. Soliciting agency employees, suppliers, or customers to purchase goods or services of any kind for non-agency purposes, or to make contributions to any organizations or in support of any causes.
4. Soliciting or entering into any business or financial transaction with another employee whom the soliciting employee supervises, either directly or indirectly, such as hiring the employee to perform personal services or soliciting the employee to enter into an investment. 148
VCEA I Last Updated: February 2021 23
Solicitation
You are not permitted to solicit or distribute literature during working time. Working time includes both your working time and the working time of the employee to whom the solicitation or distribution is directed.
Similarly, distribution of written solicitation material in working areas is prohibited at all times. If you wish to distribute fundraising items such as cookies, candy, and coupon books for sale, you may place them without solicitation in your workstation or VCEA break rooms.
Media Contact
If you are contacted by a news organization regarding VCEA business, please direct all media inquiries to your supervisor, the General ManagerExecutive Officer, or the Director of Marketing.
Employment of Friends or Relatives
The employment of friends and relatives in the same area of an organization may cause conflicts of interest and appearances of impropriety. In addition, personal conflicts may impact the working relationship of the parties.
Although VCEA does not prohibit the hiring of friends and relatives of existing employees, VCEA is committed to monitoring situations in which friends or relatives work in the same area. In the event of an actual or potential problem, VCEA’s response may include reassignment or termination of one or both of the individuals involved.
For the purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with an employee is similar to that of persons who are related by blood or marriage, or one who is a domestic partner.
Personal Relationships in the Workplace
VCEA desires to avoid misunderstandings, complaints of favoritism, claims of sexual harassment, and employee dissension that may result from personal or social relationships amongst employees. Therefore, VCEA asks that if you become romantically involved with another employee that you disclose your relationship to a supervisor with whom you feel comfortable. This information will be kept as confidential as possible. For purposes of this provision, “romantically involved” will be interpreted broadly. VCEA reserves the right to take necessary and appropriate action to resolve any potential conflict of interest arising out of romantic involvement among employees. Depending on the facts of the situation, such action may include reassignment or termination of one or both of the employees involved.
VCEA is committed to maintaining a professional work environment where supervisors treat all employees fairly and impartially. Accordingly, supervisors are not allowed to date, or become romantically or intimately involved with, employees who report to them directly or indirectly. Also, spouses and immediate family members are prohibited from working in positions where they directly report to, or are reported to, by their spouses or family members. Personal relationships very often cause problems in the workplace, such as a lack of objectivity towards the subordinate’s job performance, the perception of favoritism by other employees (whether justified or not), and potential sexual harassment complaints.
For purposes of this policy, “immediate family” includes significant others (such as unmarried couples who live together), domestic partners, step-parent and step-child relationships, in-law relationships, grandparents and cousins (including analogous relationships with the parents and children of an employee’s significant other). This policy covers all family-like relationships, regardless of blood or legal relationships. 149
VCEA I Last Updated: February 2021 24
Employees who are currently dating one another, or employees who are married or related and report to or supervise each other, may request to be transferred in order to comply with this policy. When possible, VCEA will attempt to accommodate such requests. Please understand, however, that VCEA reserves the right not to transfer employees based on conflicting business considerations.
Unprofessional behavior in the workplace, such as sexually related conversations, inappropriate touching (i.e., kissing, hugging, massaging, sitting on laps) another employee, and any other behavior of a sexual nature, is prohibited.
If two employees marry or become related, causing actual or potential problems such as those described, only one of the employees will be retained with VCEA unless reasonable accommodations can be made to eliminate the actual or potential conflict. The employees will have 30 days to decide which relative will stay with VCEA. If this decision is not made in the time allowed the General ManagerExecutive Officer will make the decision, taking the employment history and job performance of both employees as well as the business needs of VCEA into account. Supervisors who have any questions about the application of this policy to an employee or applicant should contact the General ManagerExecutive Officer.
Dress Policy
You are expected to dress and groom yourself in accordance with accepted social and business standards, particularly if your job involves dealing with customers or visitors in person. A neat, tasteful appearance contributes to the positive impression you make on our customers.
Business casual dress is generally expected which should include nice shoes, slacks, pantsuits, dresses, skirts, and shirts (and possibly suits and ties when appropriate). Violating dress code standards may subject you to appropriate disciplinary action.
Day-to-Day Operations
Employer and Employee Property
Routine inspections of agency property might result in the discovery of an employee’s personal possessions. You are encouraged not to bring into the workplace any item of personal property which you do not want to reveal to VCEA.
All desks, lockers, offices, work spaces, credenzas, cabinets, electronic mail (e-mail), telephone systems, office systems, computer systems, any and all electronically issued technology, agency vehicles and other areas or items belonging to VCEA are open to VCEA and its employees. YOU SHOULD HAVE NO EXPECTATION OF PRIVACY IN ANY OF THESE AREAS. Personal items and messages or information that you consider private should not be placed or kept in any of these places or areas belonging to VCEA.
Storage areas, work areas, file cabinets, credenzas, computer systems and software, office telephones, cellular telephones, any and all electronically issued technology, modems, facsimile machines, copy and scanner machines, tools, equipment, desks, voice mail, and electronic mail are the property of VCEA, and need to be maintained according to agency rules and regulations.
150
VCEA I Last Updated: February 2021 25
Desks and work areas must be kept clean, and are to be used for work-related purposes. VCEA’s property is subject to inspection at any time, with or without prior notice. Prior authorization must be obtained before any of VCEA’s property may be removed from the premises.
For security reasons, you should not leave personal belongings of value in the workplace. Personal items, lockers and desks are subject to inspection and search, with or without notice, and with or without your prior consent.
Terminated employees should remove any personal items at the time of separation. Personal items left in the workplace by previous employees are subject to disposal if not claimed at the time of your termination.
Electronic Systems and Privacy
Access to VCEA’s electronic systems is provided for work-related purposes. There should be NO expectation of privacy in connection with the use of electronic systems, including stored e-mail/voice mail/text messages or any messages sent electronically. All messages created, sent, received or stored in these systems are and remain the property of VCEA. VCEA reserves the right to retrieve and review any message composed, sent or received via the system. Please note that even when a message is deleted or erased, it is still possible to recreate the message; therefore, the ultimate privacy of messages cannot be ensured to anyone.
To safeguard and protect the proprietary, confidential and business-sensitive information of VCEA, and to ensure that the use of all electronic systems and equipment is consistent with VCEA’s legitimate business interests, authorized representatives of VCEA may monitor the use of such systems from time to time without notice, which may include printing and reading materials, files on the system, list servers, and equipment.
You should be aware that e-mail messages, like VCEA correspondence, and any and all messages sent electronically may be read by other VCEA employees and outsiders under certain circumstances. While it is impossible to list all of the circumstances, some examples are the following: (1) during system maintenance of the e-mail system, (2) when VCEA has business needs to access the employee’s mailbox, (3) when VCEA receives a legal request that requires disclosure of e-mail messages, or (4) when VCEA has reason to believe the employee is using e-mail in violation of VCEA policies.
Social Media Guidelines
VCEA understands that various forms of communication occur through social media, such as Facebook, Twitter, LinkedIn, blogs, and multimedia host sites such as YouTube. Such communications occur in social networking, blogs, and video sharing and similar media. It should be remembered that social media sites do not provide a private setting. Employees who communicate information through social media therefore should not expect that such information is private
Employees must remember that all existing policies apply to information disseminated through social media.
These guidelines are intended to help employees understand some of the unintended outcomes of sharing information through social media.
Application of Policies
The employer’s policies and standards apply to conduct that occurs in the workplace and while employees are on duty, wherever they happen to be. They also apply to activities that occur during an employee’s own time, 151
VCEA I Last Updated: February 2021 26
outside of work, if the activities have an actual or potential impact on the employee’s performance, the performance of coworkers, or the employer. Employees should therefore understand that they are responsible for certain activities that occur off the employer’s premises or on their own time both to the employer and third parties. Nothing in this policy prevents employees from exercising their broad rights to discuss the terms and conditions of employment with others, to take action with others to improve your working conditions, or to otherwise exercise their rights to engage in protected concerted activity.
General Policies
VCEA’s policies regarding workplace conduct and interpersonal interactions are embodied in a number of policies, including policies that protect VCEA’s legal interests and confidential information.
The policies also prohibit unlawful harassment and discrimination and require employees to use work time in an appropriate manner.
The principles set forth in VCEA’s policies apply equally to social media, even when the policies do not refer specifically to social media. Violations of any policy through social media or networking will be appropriately addressed when brought to management’s attention.
Illustrations of some of the relevant policies and how they may apply to social media are provided below. The following guidelines apply to all employees when they are at work and away from work.
General expectations
• Employees may not post or transmit any material or information that includes confidential, proprietary or trade secret information, or information that is untrue, defamatory, obscene, profane, threatening, harassing, abusive, hateful or humiliating to another person or entity. This includes, but is not limited to, comments regarding VCEA or its employees or customers. Employees should ask their supervisors and refer to agency policies if they have any questions about what is appropriate to include in communications involving social media.
Harassment
• VCEA will not tolerate intimidation, bullying or threats of violence among co-workers and such acts, even if occurring outside of work, will result in serious consequences, including termination. • VCEA maintains a strict policy prohibiting harassment of any kind. Harassment is inappropriate and contrary to VCEA policy if it is based upon any legally protected characteristic. It includes unwelcome verbal, physical, or visual conduct that creates an intimidating, offensive, or hostile work environment or unreasonably interferes with work performance.
Reputation
• Employees should act responsibly and remember that untrue or defamatory postings can have serious consequences. Do not create fake blogs or false reviews of VCEA or its customers.
Acceptable Use Guidelines
• E-mail and Internet access is provided to support VCEA’s business operations. Incidental use of e-mail and internet for personal reasons is permissible during non-working periods during the workday, 152
VCEA I Last Updated: February 2021 27
provided it is not excessive and provided it does not interfere with VCEA business Any use that includes tapping into electronic social media should be consistent with VCEA’s values, policies and applicable laws.
• Participation in social media sites should be limited during work time; incidental use during break time is not prohibited by this policy. Under no circumstances may employees access social media sites while performing safety-sensitive functions such as driving.
Opinions
• Employees should not speak on behalf of VCEA without proper authorization to do so. Employees should at all times make it clear that their opinions do not represent those of VCEA. They should include disclaimers in online communications advising that they are not speaking officially or unofficially on behalf of the organization.
• Employees may not use VCEA’s logo or proprietary graphics to imply that you are speaking on behalf of VCEA.
Questions
• Employees who have concerns regarding workplace conduct or inappropriate behavior or comments are encouraged to contact the General ManagerExecutive Officer for further guidance.
Additional Guidance and Information
While VCEA’s policies offer very clear direction on some issues, there are other areas where common sense must prevail. When in doubt about posting, employees should consider the following:
• There is no expectation of privacy when engaging in social media networking activities. You may know everyone in the room when you have a conversation in person. This will not apply with social networking applications. You may not have full control over how your comments are perceived or shared.
• These are public forums. As a practical matter, it may be impossible to delete information that is shared.
Comments may be publicly available for years.
• Even when you do not identify your employer by name in the communication or posting, some readers are likely to know where you work. Keep this in mind when you consider posting or transmitting comments that may be work-related. This should also be considered when creating your profile. • Do not state or imply that the opinions you express are those of VCEA, its management, or other employees. Include a disclaimer to this effect.
Telephone Usage
You may use agency telephones for local or personal calls within reason. You are not to charge long distance personal telephone calls to VCEA. You are expected to limit personal calls so they do not become excessive or disruptive to your work or work area.
Cell Phone Usage
VCEA realizes that in our fast-paced business environment, meeting our goals and staying in touch with our customers and co-workers is a necessary process in working efficiently. But, first and foremost, we want to 153
VCEA I Last Updated: February 2021 28
preserve the safety of our employees and those in the community. California law limits the use of cell phones while driving to those having hands-free operation.
This law provides that, it is illegal to drive a motor vehicle while using a wireless telephone, unless that telephone is designed and configured to allow hands-free listening and talking operation, and is used in that manner while driving.
Additionally, writing, sending, or reading text-based communications on your cell phone while driving is also prohibited under California law. This includes text messaging, instant messaging, and e-mail. You will be responsible for any tickets you receive if you violate this law.
Use of a hands-free cell phone is required while driving for agency business. An option is that you pull over while driving to place or receive calls on your cellular phones. There is a great potential for harm to you and to others if this policy is violated.
Personal cell phone use is not needed or required for work purposes and should not be used for work.
Workplace Monitoring
Workplace monitoring, both human and electronic, may be conducted by VCEA to ensure quality control, employee safety, compliance with VCEA policies, security, and customer satisfaction.
Customer sites may also utilize video surveillance of non-private workplace areas. Video monitoring is used to identify safety concerns, maintain quality control, detect theft and misconduct, and discourage or prevent acts of harassment and workplace violence.
Because VCEA is sensitive to your legitimate privacy rights, every effort will be made to see that workplace monitoring is done in an ethical and respectful manner.
Travel Expense Policy
VCEA will reimburse you for work-related travel expenses such as transportation, overnight accommodations and meals. You should have your supervisor’s approval before incurring travel expenses. All requests for reimbursement must be submitted to the General ManagerExecutive Officer for approval along with supporting documents or original invoices.
Non-exempt employees will be paid for time spent traveling and in conference sessions. If you are required to use your personal automobile on work-related business, VCEA will reimburse you for mileage at the current IRS reimbursement rate and for parking expenses. You should submit the appropriate expense form to the General ManagerExecutive Officer for approval and then forward it to accounting for payment once per month. If you use your personal vehicle for work-related travel you are expected to maintain at least the minimum insurance required by law.
154
VCEA I Last Updated: February 2021 29
Agency Property and Equipment
Equipment essential to accomplishing job duties is often expensive and may be difficult to replace. When using agency property, you are expected to exercise care, arrange for required maintenance, and follow all operating instructions, safety standards, and guidelines.
VCEA requires that all equipment be in proper working order and safe to work with at all times. If any equipment appears to be damaged, defective, or in need of repair, do not use it until a qualified technician certifies that it is repaired and safe. Never try to fix broken equipment yourself. Please notify your supervisor of any equipment breakdown as soon as it happens. If the breakdown requires emergency repairs, your supervisor will help you deal with the emergency situation as soon as possible. Prompt reporting of damages, defects, and the need for repairs could prevent possible personal injury and deterioration of equipment. Please ask your supervisor if you have any questions about your responsibility for maintenance and care of equipment used on the job.
If you are authorized to operate an agency vehicle in the course of your assigned work, or if you operate your own vehicle in performing your job, you must adhere to the following rules:
1. You must be a licensed California driver and must maintain at least the minimum insurance required by law.
2. You must maintain weekly mileage reports.
3. You are responsible for following all the manufacturer’s recommended maintenance schedules so as to maintain valid warranties, and for following the manufacturer’s recommended oil change schedule.
4. VCEA provides insurance on agency vehicles. However, you will be considered completely responsible for any accidents, fines, moving or parking violations.
5. If involved in an accident do not admit fault, only provide required insurance and personal DMV information.
6. You must keep VCEA vehicle clean at all times.
7. Persons not authorized or employed by VCEA cannot operate or ride in an agency vehicle.
8. Prior to operation of any agency vehicle, your supervisor will train you on the appropriate steps to take if you are involved in an accident, such as filling out the accident report, getting names and phone numbers of witnesses and so on.
If you are required to drive an agency vehicle or your own vehicle for agency business, you will also be required to show proof of a current, valid driver’s license and current effective auto insurance coverage prior to the first day of employment.
If you drive your own vehicles on agency business you will be reimbursed at the current IRS reimbursement rate.
You are responsible for all agency property, materials, or written information issued to you or in your possession. You may be asked to sign an acknowledgment of receipt of agency property issued to you. All agency property must be returned on or before your last day of work. You may be responsible for the replacement cost of agency property not returned.
155
VCEA I Last Updated: February 2021 30
Agency cars are for agency business only, and only authorized employees may drive agency cars. Employee spouses, children, friends or anyone other than the employee may not operate these vehicles, unless an emergency arises. A violation of these rules, or excessive or avoidable traffic and parking violations may result in disciplinary action, up to and including termination.
Personal Use of Agency Property
You are not allowed to use agency owned property for personal use. The definition of “agency owned” assets includes, but is not limited to, facilities, computers, and their related equipment, labelers, copy machines, postage meter, any type of supplies including office supplies, tools, vehicles, credit cards, etc. These assets are provided to you for agency related business only.
Please also remember that all desks, lockers, cabinets, computers and vehicles that belong to VCEA will be open to all agency employees. Personal items, messages or information that you consider private should not be placed or kept in telephone systems, office systems, agency computer systems, office work spaces, desks, and credenzas or file cabinets.
If you are issued an agency credit card you are responsible for the use of that card. Under no circumstances will VCEA allow you to sign an agency credit card unless the card being signed is issued in your name. Signing another employee’s credit card will result in liability for the expense and may subject you to immediate termination. If you hold an agency credit card you may only give permission to another employee to make an authorized business purchase or reservation using your card with prior approval from the General ManagerExecutive Officer of VCEA. Any holders of agency credit cards or authorized users who transact a non-business related charge may be subject to immediate termination. Receipts for all credit card transactions must be given to the Finance Director along with an explanation of the purchase.
Driving Record and Insurance
As a condition of employment, we require you to maintain an acceptable driving record if you drive for agency business. Any accidents or traffic violations must be reported to a supervisor immediately if they occur during the course of your duties. You will be responsible for any tickets you receive while driving on agency business whether in an agency vehicle or your own personal vehicle. Failure to report an on-the-job motor vehicle accident, no matter how minor, will lead to disciplinary action, up to and including termination. Additionally, you are required to maintain the level of insurance required by the state of California. A copy of your insurance card must be on file before you will be allowed to drive for agency business.
Health and Safety
Safety is everybody's business. Safety is to be given primary importance in every aspect of planning and performing all VCEA activities. We want to protect you against injury and illness, as well as minimize the potential loss of production. To achieve our goal of maintaining a safe workplace, everyone must be safety conscious at all times. In compliance with California law, and to promote the concept of a safe workplace, we maintain an Injury and Illness Prevention Plan (IIPP). The IIPP is available for your review from the Director of Finance & Internal Operations. The Director of Finance & Internal Operations has responsibility for implementing, administering, monitoring, and evaluating the safety program. Its success depends on the alertness and personal commitment of all.
156
VCEA I Last Updated: February 2021 31
You will receive a copy of VCEA’s general safety rules and will receive health and safety training as part of this program. A complete copy of the Safety Program is kept by the General ManagerExecutive Officer and is available for your review.
Smoking Policies
Smoking, use of e-cigarettes or vapor products is not allowed in any enclosed area of the building, or within 25 feet of any entrance of the building or in any agency vehicle. In fairness to those who do not smoke, smoking is allowed only during breaks and lunch and only outside of the office or building.
Security
To provide for the safety and security of you, our customers and our facilities, only authorized visitors are allowed in the work areas. To ensure the safety of our guests, we encourage family and friends to check in when visiting you at the workplace.
The following security procedures should always be followed to ensure your safety and the safety of your fellow employees, and to ensure the confidentiality of VCEA’s information. At no time should unauthorized persons be allowed to roam unescorted though VCEA’s office. It is a matter of courtesy to accompany customers and guests to and from the exits and other office to which they may be destined. If strangers are encountered in our office who do not satisfactorily identify themselves or the person with whom they will be meeting, escort them to the front of the office. If they resist, contact your supervisor immediately.
Be aware of persons loitering for no apparent reason in other non-office areas (e.g., in parking areas, walkways, entrances/exits and service areas). Report any suspicious persons or activities to your supervisor. Secure your desk at the end of the day or when called away from your work area for an extended length of time and do not leave valuable and/or personal articles in or around your workstation that may be accessible. Please report any lost facility keys to your supervisor immediately.
Workplace Violence
VCEA recognizes that violence in the workplace is a growing nationwide problem necessitating a firm, careful response by all employers. The costs of workplace violence are great, both in human and financial terms.
VCEA has adopted the following policies to ensure the safety of its employees and to provide guidance on dealing with violence in the workplace. If qualified, you may provide first aid to injured persons. You are required to:
1. Immediately report all indirect and direct threats of violence to a supervisor.
2. Immediately report all suspicious individuals or activities to a supervisor.
3. Never put yourself or others in peril.
4. Immediately call 911 and seek shelter if you hear a violent commotion near your workstation.
5. Cooperate fully with security, law enforcement, and medical personnel who respond to a call for help.
6. Direct all inquiries from the media about violence on VCEA premises to your supervisor or the General ManagerExecutive Officer.
157
VCEA I Last Updated: February 2021 32
The General ManagerExecutive Officer of VCEA will make the sole determination of whether, and to what extent, threats or acts of violence will be acted upon by the agency. In making this determination, we may undertake a case-by-case analysis in order to ascertain whether there is a reasonable basis to believe that workplace violence has occurred. No provision of this policy shall alter the at-will nature of employment at VCEA.
Off-Duty Use of Facilities
You are prohibited from being on agency premises, or making use of agency facilities, while not on duty. You are expressly prohibited from using agency facilities, agency property or agency equipment for personal use.
Parking
You are encouraged to use the parking areas designated for our employees. Remember to lock your car every day and park within the specified areas.
Courtesy and common sense in parking will help eliminate accidents, personal injuries, and damage to your vehicle and to the vehicles of other employees. If you should damage another car while parking or leaving, immediately report the incident, along with the license numbers of both vehicles and any other pertinent information you may have, to your supervisor. VCEA cannot be and is not responsible for any loss, theft or damage to your vehicle or any of its contents. You will be responsible for any parking tickets you receive while driving on agency business whether in an agency vehicle or your own personal vehicle.
Employee Suggestion Program
We encourage you to bring forward your suggestions and good ideas about how our agency can be made a better place to work and our service to customers enhanced. When you see an opportunity for improvement, please talk it over with your supervisors. All suggestions are valued and listened to.
Employee Benefits
Benefits
VCEA has developed and invested in an employee benefit program to supplement your regular wages. VCEA will continue these benefits as agency resources allow; however, we reserve the right to change or eliminate any benefit program at any time (including increasing the employee’s share of the cost).
Our benefit program consists of programs which may include health, dental, and vision coverage, life insurance, paid time off (PTO) and holiday pay. In addition, there are a number of programs available to employees through other sources such as State Disability, Paid Family Leave, Unemployment Insurance, Social Security and Workers’ Compensation. Eligibility to participate in some of these programs is determined by your employee classification and length of continued service with VCEA.
Official Health Plan Documents
The employee handbook contains a number of brief summaries of the benefit programs that the employer provides for eligible employees. The purpose of these summaries is simply to acquaint you with the general 158
VCEA I Last Updated: February 2021 33
provisions of the applicable plans; they do not contain full statements of all of the terms, conditions, and limitations of the plans. If there are any real or apparent conflicts between the brief information in the handbook and the terms, conditions and limitations of the official plan documents, the provisions of the official plan documents will be considered accurate. You are encouraged to review all plan documents carefully to familiarize yourself with all of the provisions of the plans.
Paid Time Off (PTO)
Eligibility
Paid Time Off (PTO) is an all purpose time-off policy for eligible employees to use for the following: vacation; the diagnosis, care, treatment of an existing health condition; preventative care of an employee or family member; for employees who are victims of domestic violence, sexual assault or stalking to seek aid, treatment, or related assistance; illness or injury; and personal business. A family member is defined as a spouse, registered domestic partner (RDP), grandparent, grandchild, sibling, in-law, parent, step-parent, legal guardian, or child (regardless of age or dependency status). Personal business also includes time spent for jury duty, bereavement, and time off to vote. Regular full-time employees are eligible to earn and use PTO as described in this policy.
PTO begins accruing upon your date of hire. Employees may begin using PTO upon your 90th day of employment. At that time, you can request the use of earned PTO including that accrued during the waiting period.
Accrual
Regular, full-time employees accrue 6.67 hours of PTO per pay period (24 pay periods per year) in your first year of eligibility – 160 hours. After your first anniversary, and thereafter, you will receive an additional eight (8) hours per year, which will accrue at an additional rate of .34 hours per pay period. Once you have worked for the agency for ten (10) years, you will not accrue any additional PTO.
The length of eligible service is calculated on the basis of a "benefit year." This is the 12-month period that begins when you start to earn PTO. You will not earn PTO while you are out on an unpaid leave of absence.
Therefore, your benefit year may be extended if you go out on a leave of absence other than a military leave of absence. Military leave has no effect on this calculation. (See individual leave of absence policies for more information.)
Scheduling PTO
PTO can be used in minimum increments of one (1) hour for non-exempt employees. Exempt employees may use PTO in ½ day or 1 full day increments. If you have an unexpected need to be absent from work you should notify your direct supervisor before the scheduled start of your workday, if possible. Your direct supervisor must also be contacted on each additional day of unexpected absence.
To schedule planned PTO, you need to request advance approval from your supervisor. Requests will be reviewed based on a number of factors, including business needs and staffing requirements. 159
VCEA I Last Updated: February 2021 34
PTO is paid at your base pay rate at the time of absence. It does not include overtime or any special forms of compensation such as incentives, commissions, bonuses, or shift differentials.
PTO will be used to supplement any payments that you are eligible to receive from state disability insurance, or workers' compensation. The combination of any such disability payments and PTO cannot exceed your normal weekly earnings.
PTO Payout
The Executive Officer may, in his or her sole discretion, authorize a cash payout of up to 60 hours of PTO annually to an employee who meets the following criteria: (a) the employee used an equal or greater amount of hours in the preceding 12 months; and (b) the employee will maintain a minimum PTO balance of 120 hours after the payout. Such requests will be granted at the sole discretion of the Executive Officer in the interest of work program effectiveness and subject to VCEA’s fiscal capability.
PTO Caps
Employee can accumulate PTO up to a balance of twice the annual PTO for which they are entitled. Once that limit is reached, employee will no longer accrue PTO until time is taken, and the employee’s accrual falls below the cap.
Upon termination of employment, you will be paid for unused PTO that has been earned through your last day of work.
Sick Leave
Employees who are not eligible for the PTO policy as outlined above will earn sick leave in accordance with this policy.
Sick leave is a form of insurance that is accumulated in order to provide a cushion for incapacitation due to illness. It is to be used only for the diagnosis, care, treatment of an existing health condition or preventative care of an employee, family member or for employees who are victims of domestic violence, sexual assault or stalking to seek aid, treatment, or related assistance. A family member is defined as a spouse, registered domestic partner (RDP), grandparent, grandchild, sibling, in-law, parent, step-parent, legal guardian, or child (regardless of age or dependency status).
On the employee’s hire date, eligible employees will receive 24 hours of paid sick leave. At the end of each year of employment (i.e., on the employee’s anniversary date), unused sick leave will be removed from the employee’s leave bank. All eligible employees will be credited with 24 hours of paid sick leave at the commencement of the next employment year. Any unused sick leave is not paid out on separation of employment.
Employees may begin using sick leave upon their 90th day of employment. 160
VCEA I Last Updated: February 2021 35
When wishing to use sick leave, you should personally call your supervisor prior to the start of your shift on the day you are scheduled to work. Sick leave is not to be taken in less than two (2) hour increments and does not accrue when you are out on sick leave.
A paid absence is not counted as a basis for computing overtime.
If you are receiving State Disability Insurance (SDI) or Workers’ Compensation payments, then you can integrate sick pay (meaning that you can supplement your wage replacement benefits with a portion of your sick leave to equal your full wage). Under no circumstances can you receive more than your customary wage.
Sick leave is not granted for the purpose of accompanying or taking pets to procure medical attention.
Unused sick leave has no cash value and will not be paid at termination.
Holidays
We observe the following paid holidays for full-time employees:
New Year’s Day
Martin Luther King Jr.’s Birthday
President’s Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving
Day after Thanksgiving
Christmas Day
Eligibility for holiday pay begins upon date of hire. You must also be regularly scheduled to work on the day on which the holiday is observed, and must work your regularly scheduled working days immediately preceding and immediately following the holiday, unless an absence on either day is approved in advance by your supervisor.
When a holiday falls on a Saturday or Sunday, it is usually observed on the preceding Friday or the following Monday. Holiday observance will be announced in advance.
If you are on a paid absence due to PTO when a holiday occurs, you will receive holiday pay. Non-exempt employees who work on holidays, due to customer job requirements, will receive regular earned wages. Part-time employees and interns are not eligible for holiday pay.
Insurance Benefits
Medical, Dental and Vision Insurance: We provide access to medical, dental & vision insurance plans for eligible employees and their dependents. You may be required to provide adequate proof of the dependent relationship in order to add the dependents to VCEA’s insurance policies. Typically proof of the relationship may be 161
VCEA I Last Updated: February 2021 36
established through a copy of a birth certificate, adoption documents, marriage license, or certificate of registered domestic partnership. We cannot guarantee your domestic partner relationship will be kept confidential.
Full-time employees and part-time employees who are regularly scheduled to work a minimum of 30 hours per week are eligible for VCEA’s medical, dental, and vision insurance coverage. Each employee becomes eligible on the first of the month after the employee has started employment with VCEA. VCEA will contribute up to $1,750 826 per month per employee towards VCEA’s medical, dental and vision insurance for a full-time employee and dependents coverage. VCEA will contribute a prorated amount for part-time employees based on the average hours worked (for example, if the part-time employee is regularly scheduled to work 30 hours per week, VCEA’s contribution toward the cost of VCEA’s medical, dental and vision insurance coverage for the part time employee and his/her eligible dependents would be prorated to 75% of the full-time equivalent, i.e., $1,312.50365.50). The employee is responsible for any premiums due for VCEA coverage(s) that are in excess of the VCEA contribution amount. Deductions from the employee’s paycheck will be made to cover this cost.
Information describing medical, dental and vision insurance benefits will be given to you when you become eligible to participate in the program. Eligible employees who elect not to receive medical insurance coverage from VCEA must provide proof of adequate medical coverage from an alternate source within 30 days of becoming eligible through VCEA for the benefit. Such election will be effective as of the employee’s eligibility date and will remain in effect until the start of the next open enrollment period. Employees who have declined VCEA medical insurance coverage and want to continue to decline coverage must provide proof of adequate medical coverage once per year, no later than 30 days prior to VCEA’s open enrollment period. Full time employees who decline to accept VCEA medical, dental, and vision insurance benefits shall receive a payment of $5500 per month in lieu of coverage; part -time employees who are eligible for VCEA medialmedical, dental and vision insurance and decline to accept VCEA medical, dental, and vision insurance shall receive a prorated payout based on the employee’s regularly scheduled hours (i.e., an employee who is regularly scheduled to work 30 hours per week will receive 75% of the full-time equivalent, or $375412.5.) During any leave of absence such as personal leave, Workers’ Compensation leave or other disability leave, VCEA-provided health benefits will continue through the end of the month during which leave commenced. At that point, the employee will be provided with the option to continue coverage at the employee’s own expense pursuant to Cal-COBRA. For the duration of any pregnancy disability leave of absence, health and life insurance benefits will be continued for the duration of your approved pregnancy disability leave as required by applicable law.
Please direct any questions you have regarding your medical, dental and/or vision insurance to the General ManagerExecutive Officer.
Retirement Plan: We provide a 401(A) and 457B defined contribution retirement plans for eligible employees in order to assist in planning for your retirement. Eligible employees may enroll following 6 months of employment. Retirement plan participants can participate in loan programs permitted under the plan guidelines. For more information regarding eligibility, contributions, benefits and tax status, contact the General ManagerExecutive Officer. All eligible participants will receive a summary plan description. 162
VCEA I Last Updated: February 2021 37
Disability Insurance: VCEA furnishes private long-term disability policies. For more information, contact the General ManagerExecutive Officer.
Life and Accidental Death and Dismemberment Insurance: If you are a regular full time employee of VCEA, you will be provided our group life insurance coverage paid for by the organization. This insurance is payable in the event of your death, in accordance with the policy, while you are insured. You may change your beneficiary whenever you wish by submitting the appropriate documents to the Human Resources Consultant. Refer to the literature provided by our insurance agency for details on your life insurance coverage.
Paid Family Leave (PFL) Insurance: All employees who take time off to care for a seriously ill family member (child, parent, grandparent, grandchildren, in-laws, spouse or registered domestic partner) or bond with a new child may be eligible to receive replacement wages for up to six weeks during any 12-month period, under California’s Paid Family Leave program. This program is funded with employee contributions through the State Disability Insurance (SDI) Program. Such contributions are deducted from each employee’s paycheck. Even though employees may be eligible to receive Paid Family Leave insurance benefits, a leave of absence must still be requested and approved as defined in our leave policies. Please understand that this leave does not mandate any guarantee that your job will be available when you are ready to return.
State Disability Insurance: If you are unable to work due to a non-work related medical condition or injury you may be entitled to State Disability Insurance (SDI). SDI benefits are paid by the state and are financed from mandatory payroll tax deductions from all employees’ wages. Questions regarding SDI benefits should be directed to the General ManagerExecutive Officer or the state’s Employment Development Department.
Unemployment Compensation: We contribute each year to the California Unemployment Insurance Fund on behalf of our employees.
Social Security: Social Security is an important part of every employee's retirement benefit. We pay a matching contribution to each employee's Social Security taxes.
Workers' Compensation: VCEA purchases a workers’ compensation insurance policy to protect you while you are employed by us. The policy covers you in case of occupational injury or illness. It is your responsibility to notify a member of management immediately if injured. Please refer to the Workers’ Compensation policy for additional information.
We provide workers' compensation insurance for our employees as required by state law. The insurance provides important protection for employees who suffer a work-related injury. We encourage you to report all workplace injuries immediately and to take advantage of the benefits provided by our workers' compensation insurance if you are injured on the job.
Workers' compensation insurance provides important protection for employees who suffer an injury at work.
Unfortunately, we understand that some employees are encouraged to file fraudulent workers' compensation claims. For your own protection, you should know that the California Insurance Frauds Protection Act provides that it is unlawful for any person to:
163
VCEA I Last Updated: February 2021 38
"Make or cause to be made any knowingly false or fraudulent material statement or material representation for the purpose of obtaining . . . compensation . . . and shall be punished by imprisonment in county jail for one year, or in the state prison for two, three or five years, or by a fine not exceeding Fifty Thousand Dollars ($50,000.00) . . . or by both imprisonment and fine." Our policy is to investigate all questionable workers' compensation claims. If they appear to be fraudulent, they are referred to the Bureau of Fraudulent Claims and the District Attorney's office.
Section 125 (Cafeteria Plan): Through the flexible spending account or the health savings account, you may designate an annual dollar amount of your before-tax income to pay for certain eligible expenses. Particular care should be taken to assure that the funds required in the flexible spending account are not over estimated as unused funds cannot be returned to the participant at the end of the plan year. Please refer to the booklets for information about the program. If you need additional information or change forms, please speak with the General ManagerExecutive Officer.
Domestic Partners
VCEA believes that basic medical/dental/vision coverage should be available to employees and their dependents. To recognize non-traditional family arrangements and to demonstrate our commitment to our community of employees and their families, VCEA has instituted a Domestic Partners Policy. This policy gives you the opportunity to cover a long-term, significant same sex partner under our benefits plans, as well as opposite sex partners for employees over 62 years of age. VCEA wishes to make it clear that it cannot guarantee confidentiality of the relationship once a domestic partner is covered under our policy. See the General ManagerExecutive Officer for more information.
Cal-COBRA
The California Continuation Benefits Replacement Act (Cal-COBRA) gives qualified employees and their dependents the opportunity to continue health insurance coverage under VCEA’s health plan when a “qualifying event” would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee’s hours or a leave of absence; an employee’s divorce or legal separation; and a dependent child no longer meeting eligibility requirements.
Under Cal-COBRA, you or the beneficiary pays the full cost of coverage at VCEA’s group rates. In addition, you or the beneficiary may be required to pay an administration fee. Our plan administrator will provide you with a written notice describing rights granted under Cal-COBRA when you become eligible for coverage under our plan. The notice contains important information about your rights and obligations.
Recreational Activities and Programs
VCEA or its insurer will not be liable for payment of workers’ compensation benefits for any injury that arises out of your voluntary participation in any off-duty recreational, social, or athletic activity that is not part of your work related duties.
164
VCEA I Last Updated: February 2021 39
Leaves of Absence
Occasionally, for medical, personal, or other reasons, you may need to be temporarily released from the duties of your job with VCEA. It is the policy of VCEA to allow its eligible employees to apply for and be considered for certain specific leaves of absence.
All requests for leaves of absence shall be submitted in writing to your supervisor. Each request shall provide sufficient detail such as the reason for the leave, the expected duration of the leave, and the relationship of family members, if applicable. When you become aware of your need for leave, requests should be provided at least 30 days in advance. If your need for leave is not foreseeable, you should follow VCEA’s customary notice and procedural requirements for requesting leave. Failure to return to work as scheduled from an approved leave of absence or to inform your supervisor of an acceptable reason for not returning as scheduled will be considered a voluntary resignation of employment. While on a leave of absence you may not obtain other employment or apply for unemployment insurance. If either of these instances occurs, you may be viewed as having voluntarily resigned from VCEA.
You will not accrue PTO while you are on an unpaid leave of absence. There are several types of leaves for which you may be eligible.
Medical Leaves of Absence
A medical leave of absence may be granted for non-work related temporary medical disabilities (other than pregnancy, childbirth and related medical conditions) until the end of the month in which the leave began with a doctor’s written certificate of disability (unless leave of a longer duration is required by law). Requests for leave should be made in writing as far in advance as possible, but, requests should be provided at least 30 days in advance. If your need for leave is not foreseeable, you should follow VCEA’s customary notice and procedural requirements for requesting leave. If you are granted a medical leave, you are required to use any accrued sick pay. You also may use any PTO previously accrued.
A medical leave begins on the first day your doctor certifies that you are unable to work and ends when your doctor certifies that you are able to return to work. Your supervisor will supply you with a form for your doctor to complete, showing the date you were disabled and the estimated date you will be able to return to work.
Upon your return, you must present a doctor’s certificate showing fitness to return to work. If you need a medical-related leave longer than VCEA can, consistent with business necessity and reasonable accommodation, approve, you will be advised.
For the duration of any leave of absence, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued until the last day of the month in which the leave begins. For the duration of a pregnancy disability leave, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued for the duration of your pregnancy disability leave. During this time, you will be required to contribute your portion of the premium on the same basis as you would have been required during your normal working relationship, including payment of any premium for the dependent coverage you have elected.
165
VCEA I Last Updated: February 2021 40
If you wish to continue these benefits you may do so by electing to continue the benefit through the CAL-COBRA provisions, and by paying the applicable premiums.
You will not accrue PTO while you are on an unpaid medical leave of absence.
If returning from a non-work related medical leave, you will be offered the same position held at the time of leaving, if available. However, we cannot guarantee that your job or a similar job will be available upon your return. If VCEA is unable to provide a job for you at the end of your leave, we will end your employment, but you will be eligible to apply for any opening that may arise for which you are qualified.
Bereavement Leave
VCEA provides regular full-time and regular part-time employees up to three (3) days’ paid bereavement leave in the event of a death in your immediate family. For purposes of this policy, “immediate family” includes your spouse, parent, child, sibling; your spouse’s parent, child, or sibling; your long- time companion or domestic partner; and your grandparents or grandchildren. If you need to take time off due to the death of an immediate family member you should contact your supervisor. Your supervisor may approve additional unpaid time off.
Bone Marrow and Organ Donation Leave
Employees who are donating an organ to another person may take a leave of absence not exceeding 30 business days (and which may be taken in one or more periods) in any one-year. Employees who are donating their bone marrow to another person may take a leave of absence not exceeding 5 business days (and which may be taken in one or more periods) in any one year.
Requests for leave should be made in writing as far in advance as possible. You must provide a written medical certification from your health care provider to VCEA that shows that you are a bone marrow or organ donor and that there is a medical necessity for the donation.
Bone Marrow and Organ Donation leave is a paid leave, however you are required to use up to 5 days of accrued but unused sick or PTO leave for bone marrow donation, and up to 2 weeks of accrued but unused sick or PTO leave for organ donation.
For the duration of a Bone Marrow or Organ Donation leave of absence, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued until the last day of the month in which the leave begins. During this time, you will be required to contribute your portion of the premium on the same basis as you would have been required during your normal working relationship, including payment of any premium for the dependent coverage you have elected.
When you are ready to return to work after a Bone Marrow or Organ Donation leave, you must provide certification from your medical care provider that you are able to safely perform all of the essential functions of your position with or without reasonable accommodation. Except as otherwise allowed by law, you are entitled, upon return from leave, to be reinstated in the position you held before the Bone Marrow or Organ Donation leave, or to be placed in a comparable position with comparable benefits, pay, and terms and conditions of employment.
166
VCEA I Last Updated: February 2021 41
Civil Air Patrol Leave
Employees who volunteer for the California Wing of the Civil Air Patrol are allowed up to ten days of unpaid leave each year. This leave covers employees who are needed to respond to an emergency operational mission who have been employed by VCEA for at least 90 days immediately preceding the requested leave. VCEA reserves the right to verify the need for the leave with the Air Patrol.
Domestic Violence and Sexual Assault Victim Leave
VCEA takes threats and actions of domestic abuse and sexual assault against our employees very seriously, and wants employees to feel free to obtain services to keep themselves and their dependents safe.
If at any time you need to be absent from work because you have been a victim of domestic violence or sexual assault, and you need to take time off to ensure your safety, seek medical treatment, or receive counseling as a result of domestic violence or sexual assault, please let your supervisor or the General ManagerExecutive Officer know immediately. Your privacy will be protected to the greatest extent possible. You may use accrued PTO or sick leave in lieu of unpaid time off for these purposes.
Jury Duty or Witness Leave
You may want to fulfill your civic responsibilities by serving on a jury or as a witness as required by law. You may request unpaid leave for the length of absence, unless the leave of absence is taken as PTO. We will comply with federal and state requirements on pay for exempt employees. You may be requested to provide written verification from the court clerk of having served.
You must show the jury duty or witness summons to your supervisor as soon as possible so that arrangements can be made to cover your absence. Of course, you are expected to report for work whenever the court schedule permits. If you are called for jury duty during a particularly busy time, we may ask you to request the court to postpone the mandatory jury duty to a more convenient time for us. You retain all fees paid for appearing, plus transportation reimbursements received, if any.
Military Leave
If you wish to serve in the military and take military leave you should contact the General ManagerExecutive Officer for information about your rights before and after such leave. You are entitled to reinstatement upon completion of military service provided you return or apply for reinstatement within the time allowed by law.
Pregnancy Disability Leave
Eligibility and Terms of Leave
Female employees are entitled to an unpaid Pregnancy Disability Leave (PDL) during the time they are disabled due to pregnancy, childbirth, or related medical conditions. This leave will be for the period of disability, up to four months or 17 1/3 workweeks. You are “disabled by pregnancy” if you are unable because of pregnancy to work at all, are unable to perform the essential functions of your job, or to perform these functions without undue risk to successful completion of your pregnancy, or to other persons. 167
VCEA I Last Updated: February 2021 42
Leave may be taken intermittently or on a reduced work schedule when medically advisable, as determined by your medical care provider. Medical certification is required, and the length of Pregnancy Disability Leave will depend on the medical necessity for the leave. If you need intermittent leave or leave on a reduced schedule, VCEA may require you to transfer, during the period of the intermittent or reduced schedule leave, to an available alternative position for which you are qualified and which better accommodates your recurring periods of leave. Transfer to an alternative position may include altering an existing job to better accommodate your need for intermittent leave or a reduced work schedule.
Applying For Leave
If possible, you should give at least 30 days’ notice requesting a pregnancy-related leave. This notice must provide and include the expected date on which the leave will begin, written certification from your medical care provider stating the anticipated delivery date and the duration of the leave.
Return to Work
Before returning to work, you must provide a release from your medical care provider certifying that you are able to safely perform all of the essential functions of your position with or without reasonable accommodation.
VCEA will reinstate you to your position unless:
1. Your job has ceased to exist for legitimate business reasons;
2. Your job could not be kept open or filled by a temporary employee without substantially undermining VCEA’s ability to operate safely and efficiently;
3. You have directly or indirectly indicated your intention not to return;
4. You are no longer able to perform the essential functions of the job with or without reasonable accommodation;
5. You have exceeded the length of the approved leave; or
6. You are no longer qualified for the job.
If VCEA cannot reinstate you to the position you held before the pregnancy disability leave began, VCEA will offer you a comparable position, provided that a comparable position exists and is available, and provided that filling the available position would not substantially undermine VCEA’s ability to operate safely and efficiently.
Integration With Other Benefits
A pregnancy disability leave is unpaid, but you are required to use your accrued sick leave during the leave. In addition, you may elect to use accrued PTO during the leave. Sick leave and PTO will supplement any State Disability Insurance benefits. VCEA will maintain group medical benefits during a pregnancy disability leave as required by law. No additional PTO, sick leave or holiday pay will accrue during the leave (except during the time period you are using sick leave or PTO). You may also, however, be eligible for short term disability benefits.
Continuation of Medical Benefits
For the duration of your PDL leave of absence, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued for the duration of your pregnancy disability leave.
During this time, you will be required to contribute your portion of the premium on the same basis as you would have been required during your normal working relationship, including payment of any premium for the 168
VCEA I Last Updated: February 2021 43
dependent coverage you have elected. If you fail to return to work at the conclusion of PDL leave and wish to continue these benefits, you may do so by electing to continue the benefit through the Cal-COBRA provisions, and by paying the applicable premiums.
School Appearance Leave
If you are the parent or guardian of a child who has been suspended from school and you receive a notice from your child’s school requesting that you attend a portion of a school day in the child’s classroom, you may take unpaid time to appear at the school, unless you use accrued PTO. Before your planned absence, you must give reasonable notice to your supervisor that you have been requested to appear by your child’s school.
Time Off for Victims of a Violent or Serious Crime
Under certain circumstances, employees who are victims of serious crimes may take time off work to participate in judicial proceedings. Qualified family members of such crime victims may also be eligible to take time off from work to participate in judicial proceedings. The law defines a serious crime to include violent or serious felonies, such as felonies involving theft or embezzlement, crimes involving vehicular manslaughter while intoxicated, child abuse, physical abuse of an elder or dependent adult, stalking, solicitation for murder, hit-and-run causing death or injury, driving under the influence causing injury, and sexual assault. When possible, you must provide us with advance notice of the need for the time off. Your privacy will be protected to the greatest extent possible. Time away from work for non-exempt employees will be without pay, unless you wish to use your accrued PTO or sick leave to cover the period of absence.
Time Off To Vote
If you do not have sufficient time outside of working hours to vote in a statewide election, you may, without loss of pay, take off up to two hours of working time to vote. Such time must be at the beginning or end of the regular working shift, whichever allows the most free time for voting and the least time off from working, unless otherwise mutually agreed. You must notify us at least two working days in advance to arrange a voting time.
Volunteer Emergency Duty Leave
VCEA will allow unpaid time off to employees who perform emergency duty as a volunteer firefighter, reserve peace officer, emergency rescue personnel, an officer, employee, or member of a disaster medical response entity sponsored or requested by the state. If you are a volunteer firefighter, or perform other emergency personnel duties, please alert your supervisor so that he or she may be aware of the fact that you may have to take time off for emergency duty. When possible, you must provide us with advance notice of the need for the time off. Time away from work will be without pay, unless you wish to use your accrued PTO or sick leave to cover the period of absence.
Workers’ Compensation
We, in accordance with state law, provide insurance coverage for employees in case of a work related injury. To ensure that you receive any workers’ compensation benefits to which you may be entitled, you will need to:
1. Immediately report any work-related injury to your supervisor.
2. Seek medical treatment and follow-up care if required.
3. Complete a written Employee’s Claim Form (DWC Form 1) and return it to your supervisor. 169
VCEA I Last Updated: February 2021 44
Provide us with certification from your health care provider regarding the need for workers’ compensation disability leave and your ability to return to work from the leave.
Return to Work Policy
VCEA is committed to returning injured employees to modified or alternative work as soon after a work related injury as possible. Temporarily modifying your job or providing you with an alternative position will do this. Your medical condition along with any limitations or restrictions given by the attending physician will be considered as a priority when identifying the modified/alternative position.
The program is intended to provide our employees with an opportunity to continue as valuable members of our team while recovering from a work related injury. We want to minimize any adverse effects of an ongoing disability on our employees. This program is intended to promote speedy recovery, while keeping the employees’ work patterns and income consistent. At the same time, we benefit from having our employees providing a service and contributing to the overall productivity of our business. VCEA retains discretion to decide whether to provide modified duty.
Receipt and Acknowledgment of VCEA Employee Handbook
I have received my copy of VCEA’s employee handbook. I understand and agree that it is my responsibility to read and familiarize myself with the policies and procedures contained in the handbook.
At-Will Employment
I further understand that my employment is at-will, and neither VCEA nor I have entered into a contract regarding the duration of my employment. I am free to terminate my employment with VCEA at any time, with or without cause. Likewise, VCEA has the right to terminate my employment with or without cause, at the discretion of VCEA. No employee of VCEA can enter into an employment contract for a specified period of time, or make any agreement contrary to this policy without the written approval from the General ManagerExecutive Officer.
Future Revisions
We reserve the right to revise, modify, delete or add to any and all policies, procedures, work rules or benefits stated in this employee handbook or in any other document, except for the policy of at-will employment. Any written changes to this employee handbook will be distributed to all employees so that you will be aware of the new policies or procedures. No oral statements or representations can in any way change or alter the provisions of this employee handbook.
Receipt and Acknowledgement of VCEA Handouts
Illness and Injury Prevention Plan
I acknowledge that I have read and understand the VCEA’s Illness & Injury Prevention Plan and that I agree to abide by these policies.
Drug and Alcohol Abuse Policy
I certify that I have read VCEA’s Drug and Alcohol Abuse Policy and agree to abide fully by its terms. I understand 170
VCEA I Last Updated: February 2021 45
that as a condition of my employment, I may be subjected to drug testing and that my privacy rights are thereby limited. I also understand that I must notify VCEA of any conviction for a drug violation that occurs within five days after such a conviction. I understand that any violation of the policy may result in serious disciplinary action, including immediate termination.
Employee’s Printed Name____________________________ Position_____________________________ Employee’s Signature________________________________ Date________________________________ 171
VCEA I Last Updated: February 2021 46
Receipt and Acknowledgement of VCEA Handouts
Sexual Harassment Prevention Handout
I acknowledge that I have read and understand the enclosed pamphlet on sexual harassment prevention in the workplace and reporting procedures in the event that harassment occurs.
State Disability Insurance, Paid Family Leave and Unemployment Handouts I acknowledge that I have received the enclosed pamphlets on state disability insurance, paid family leave and unemployment insurance as provided by the Employment Development Department.
Workers’ Compensation Handout
I acknowledge that I have received the enclosed pamphlet on workers’ compensation benefits as provided by the California Chamber of Commerce.
Employee’s Printed Name____________________________ Position_____________________________ Employee’s Signature________________________________ Date________________________________ 172
VCEA I Last Updated: February 2021 1
Employee Handbook
Updated in
April 2022
173
VCEA I Last Updated: February 2021 2
Table of Contents
Welcome To Valley Clean Energy Alliance .................................................................................................................5 Introductory Policies ..................................................................................................................................................6 Introduction & Future Revisions.........................................................................................................................6 Our Working Relationship ..................................................................................................................................6 Open Communication Policy ..............................................................................................................................6 Equal Employment Opportunity.........................................................................................................................6 Unlawful Harassment.........................................................................................................................................7 Employment Policies and Practices............................................................................................................................9 Classification of Employees................................................................................................................................9 Rehired/Converted Employees ....................................................................................................................... 10 Job Duties........................................................................................................................................................ 10 Work Schedules............................................................................................................................................... 10 Personnel Records........................................................................................................................................... 11 Inspection of Payroll Records.......................................................................................................................... 11 Layoffs and Work Reductions.......................................................................................................................... 11 Employment Termination................................................................................................................................ 11 Employment Verification and References....................................................................................................... 12 Timekeeping and Attendance ................................................................................................................................. 13 Punctuality and Attendance ............................................................................................................................ 13 Timekeeping Requirements for Non-Exempt Staff ......................................................................................... 13 Meal and Rest Periods for Non-Exempt Staff.................................................................................................. 14 Overtime Time Provisions for Non-Exempt Staff ............................................................................................ 14 Make Up Time for Non-Exempt Staff .............................................................................................................. 14 Exempt Employee Time Off............................................................................................................................. 14 Lactation Accommodation .............................................................................................................................. 14 Payment of Wages........................................................................................................................................... 15 Advances.......................................................................................................................................................... 15 Payroll Deductions, Wage Attachments and Garnishments........................................................................... 15 Reporting Time Pay ......................................................................................................................................... 15 174
VCEA I Last Updated: February 2021 3
Payment for Hours Worked During Business Travel for Non-Exempt Staff.................................................... 15 Pay for Mandatory Meetings for Non-Exempt Staff ....................................................................................... 16 Standards of Conduct.............................................................................................................................................. 16 Professional Business Conduct and Ethics ...................................................................................................... 16 Performance Evaluations................................................................................................................................. 18 Problem Resolution ......................................................................................................................................... 19 Alcoholic Beverage Consumption.................................................................................................................... 19 Drug and Alcohol Abuse .................................................................................................................................. 20 Customer and Public Relations........................................................................................................................ 21 Confidentiality ................................................................................................................................................. 22 Conflict of Interest........................................................................................................................................... 22 Solicitation....................................................................................................................................................... 23 Media Contact................................................................................................................................................. 23 Employment of Friends or Relatives................................................................................................................ 23 Personal Relationships in the Workplace........................................................................................................ 23 Dress Policy...................................................................................................................................................... 24 Day to Day Operations ............................................................................................................................................ 24 Employer and Employee Property................................................................................................................... 24 Electronic Systems and Privacy ....................................................................................................................... 25 Social Media Guidelines .................................................................................................................................. 25 Telephone Usage............................................................................................................................................. 27 Cell Phone Usage............................................................................................................................................. 27 Workplace Monitoring .................................................................................................................................... 28 Travel Expense Policy ...................................................................................................................................... 28 Agency Property and Equipment..................................................................................................................... 29 Personal Use of Agency Property .................................................................................................................... 30 Driving Record and Insurance.......................................................................................................................... 30 Health and Safety ............................................................................................................................................ 30 Smoking Policies.............................................................................................................................................. 31 Security............................................................................................................................................................ 31 Workplace Violence......................................................................................................................................... 31 Off-Duty Use of Facilities................................................................................................................................. 32 175
VCEA I Last Updated: February 2021 4
Parking............................................................................................................................................................. 32 Employee Suggestion Program........................................................................................................................ 32 Employee Benefits................................................................................................................................................... 32 Benefits............................................................................................................................................................ 32 Official Health Plan Documents....................................................................................................................... 32 Paid Time Off (PTO) ......................................................................................................................................... 33 Holidays........................................................................................................................................................... 35 Insurance Benefits........................................................................................................................................... 35 Domestic Partners........................................................................................................................................... 38 Cal-COBRA ....................................................................................................................................................... 38 Recreational Activities and Programs.............................................................................................................. 38 Leaves of Absence ........................................................................................................................................... 38 Medical Leaves of Absence ............................................................................................................................. 39 Bereavement Leave......................................................................................................................................... 40 Bone Marrow and Organ Donation Leave....................................................................................................... 40 Civil Air Patrol Leave........................................................................................................................................ 40 Domestic Violence and Sexual Assault Victim Leave....................................................................................... 41 Jury Duty or Witness Leave ............................................................................................................................. 41 Military Leave .................................................................................................................................................. 41 Pregnancy Disability Leave .............................................................................................................................. 41 Integration With Other Benefits...................................................................................................................... 42 Continuation of Medical Benefits.................................................................................................................... 42 School Appearance Leave................................................................................................................................ 43 Time Off for Victims of a Violent or Serious Crime ......................................................................................... 43 Time Off to Vote .............................................................................................................................................. 43 Volunteer Emergency Duty Leave ................................................................................................................... 43 Workers’ Compensation.................................................................................................................................. 43 Return to Work Policy ..................................................................................................................................... 44 Receipt and Acknowledgment of VCEA Employee Handbook ........................................................................ 44 Receipt and Acknowledgement of VCEA Handouts ........................................................................................ 46 176
VCEA I Last Updated: February 2021 5
Welcome To Valley Clean Energy Alliance
DATE
Dear VCEA Employee:
INSERT COVER LETTER HERE
Sincerely,
Mitch Sears
Executive Officer
177
VCEA I Last Updated: February 2021 6
Introductory Policies
Introduction & Future Revisions
We hope you will find your employment with Valley Clean Energy Alliance (“VCEA” or “Agency”) to be both rewarding and challenging. Our staff are key to VCEA’s success and we carefully select our new employees. This handbook is not a contract, express or implied, nor does it guarantee employment for any specific length of time.
The policies included in this handbook are guidelines only and are subject to change as VCEA deems appropriate.
From time to time you may receive notice of new or modified policies, procedures, benefits, or programs. No oral statements or representations can in any way change or alter the provisions of this employee handbook.
Our Working Relationship
VCEA does not offer tenure or any other form of guaranteed employment. Either VCEA or the employee can terminate the employment relationship at any time, with or without cause, with or without notice. This is called Employment At Will. This employment at will relationship exists regardless of any other written statements or policies contained in this handbook or any other Agency documents or any verbal statement to the contrary.
No one except VCEA’s Executive Officer can enter into any kind of employment relationship or agreement that is contrary to the previous statement. To be enforceable, such relationship or agreement must be in writing, signed by the Executive Officer, approved by the VCEA Board.
Open Communication Policy
At VCEA, courtesy, tact and consideration should guide each employee in relationships with fellow workers and the public. It is mandatory that each employee show maximum respect to every other person in the organization. The purpose of communication should be to help others and to make our business run as effectively as possible, thereby gaining the respect of our colleagues and customers.
Equal Employment Opportunity
VCEA is an equal opportunity employer and makes employment decisions on the basis of merit and business need. VCEA’s policies prohibit unlawful discrimination based on race, color, religious creed, gender, pregnancy (or related medical condition), genetic information, genetic characteristics, gender identity, gender expression, religion, marital status, military or veteran status, age, national origin or ancestry, physical or mental disability, medical condition, sexual orientation, or any other consideration made unlawful by federal, state or local laws.
All such discrimination is contrary to VCEA policy.
Reasonable Accommodation.
When necessary under the California Fair Employment and Housing Act and the Americans with Disabilities Act, VCEA will reasonably accommodate an employee or applicant with a disability if the employee or applicant is otherwise qualified to safely perform all of the essential functions of the position. 178
VCEA I Last Updated: February 2021 7
We will make reasonable accommodations when requested to comply with applicable laws ensuring equal employment opportunities to qualified individuals with a disability. VCEA will engage in a timely, good-faith, interactive process to determine a reasonable accommodation, if any, in response to a request for reasonable accommodation by an employee or applicant with a known physical or mental disability or known medical condition. VCEA will consider all requests for accommodation, but retains discretion to determine what, if any, accommodation to provide.
Unlawful Harassment
VCEA intends to provide a work environment that is pleasant, professional, and free from intimidation, hostility or other offenses which might interfere with work performance. Harassment of any sort - verbal, physical, or visual - will not be tolerated. This includes both sexual harassment as well as harassment based on an employee’s status in a protected class. These classes include, but are not necessarily limited to race, color, religion, age, gender, genetic information, genetic characteristics, gender identity, gender expression, sexual orientation, pregnancy (or related medical condition), national origin or ancestry, disability, medical condition, marital status, veteran status, military status, or any other protected status defined by law. This policy also prohibits unlawful harassment based on the perception that anyone has any of those characteristics, or is associated with a person who has or is perceived as having any of those characteristics. This policy extends to unlawful harassment of VCEA employees by any other VCEA employees, vendors, independent contractors, customers, or others with whom employees may come into contact with during their work for VCEA.
Our workplace is not limited to our facilities, but may also include customer and vendor facilities, as well as anywhere a business-related function, or social function sponsored by VCEA, is taking place.
What Is Workplace Harassment?
Workplace harassment can take many forms. It may be, but is not limited to, words, signs, offensive jokes, cartoons, pictures, posters, e-mail jokes, social media communication, messages or statements, pranks, intimidation, physical assaults or contact, or violence. It may also take the form of other vocal activity including derogatory statements not directed to the targeted individual but taking place within their hearing. Other prohibited conduct includes written material such as notes, photographs, cartoons, articles of a harassing or offensive nature, and taking retaliatory action against an employee for discussing or making a harassment complaint. In addition, this policy protects employees against conduct from all individuals in the workplace, such as fellow employees, supervisors, outside customers, vendors, independent contractors, or other non-employees who conduct business with our agency.
What Is Sexual Harassment?
Sexual harassment may include unwelcome sexual advances, requests for sexual favors, or other verbal or physical contact of a sexual nature. When this conduct creates an offensive, hostile and intimidating working environment, it may prevent an individual from effectively performing the duties of their position. It also encompasses such conduct when it is made a term or condition of employment or compensation, either implied or stated and when an employment decision is based on an individual's acceptance or rejection of such conduct.
It is important to note that harassment crosses age and gender boundaries and cannot be stereotyped. Among other perceived unconventional situations, sexual harassment may involve two women or two men. Harassment 179
VCEA I Last Updated: February 2021 8
may exist on a continuum of behavior. For instance, one example of harassment may be that of an employee showing offensive pictures to another employee.
Generally, two categories of harassment exist. The first, "quid pro quo," may be defined as the demand for sexual favors in exchange for improvement or continuance in your working conditions and/or compensation.
The second category, "hostile, intimidating, offensive working environment," can be described as a situation in which unwelcome sexual advances, requests for sexual favors, or verbal or other conduct creates an intimidating or offensive environment. Examples of a hostile, intimidating, and offensive working environment include, but are not limited to, pictures, cartoons, symbols, or items found to be offensive. An employee may have a claim of harassment even if he or she has not lost a job or other economic benefit.
Responsibility
All VCEA employees, and particularly supervisors, have a responsibility for keeping our work environment free of harassment. Any employee who becomes aware of an incident of harassment, whether by witnessing the incident or being told of it, must report it to their immediate supervisor, the Executive Officer or a management representative with whom they feel comfortable. When supervisors become aware of the existence of conduct that could violate this policy, they are obligated to take prompt and appropriate action, whether or not the recipient of the harassment wants VCEA to do so.
Reporting
If you believe you have been harassed by any agency employee, customer, contractor, or other business contact, you are required to report it to your supervisor or any other member of management. While we encourage you to communicate directly with the alleged harasser, and make it clear that the harasser's behavior is unacceptable, it is not required that you do so. It is essential, however, to notify a member of management immediately even if you are not sure the offending behavior is considered harassment. Any incidents of harassment must be immediately reported. At any time if you feel that you are in immediate harm and do not have time to contact either the Executive Officer or your supervisor, seek assistance from any management representative.
Appropriate investigation and disciplinary action will be taken. All reports will be promptly investigated.
However, confidentiality cannot be guaranteed. Any employee found to have harassed any employee will be subject to severe disciplinary action up to and including termination. VCEA will also take any additional action necessary to appropriately remedy the situation. Retaliation of any sort will not be permitted. No adverse employment action will be taken for any employee making a good faith report of alleged harassment.
All employees must report any incidents immediately so that complaints can be quickly and fairly resolved. The California Department of Fair Employment and Housing (“DFEH”) investigates and may prosecute complaints of harassment. Whenever an employee thinks he or she has been harassed or that he or she has been retaliated against for resisting or complaining, that employee may file a complaint with the DFEH. The nearest DFEH office is listed in the telephone book or on-line.
Harassment and Retaliation Prohibited
VCEA prohibits any form of harassment on a protected basis that impairs an employee’s working ability or emotional well-being at work. VCEA also prohibits any employee from retaliating in any way against anyone 180
VCEA I Last Updated: February 2021 9
who has raised any concern about harassment or discrimination against another individual. We will investigate any complaint of harassment, discrimination, and retaliation and will take immediate and appropriate disciplinary action if any such conduct has been found within the workplace.
Employment Policies and Practices
Classification of Employees
A new hire will be classified as either “exempt” or “non-exempt.” Non-exempt employees are entitled to overtime pay for hours worked in excess of forty (40) hours per workweek.
Exempt employees are those employees whose duties and responsibilities allow them to be “exempt” from provisions as provided by the Federal Fair Labor Standards Act (FLSA) and any applicable state laws. If you are an exempt employee, you will be advised that you are in this classification at the time you are hired, transferred, or promoted. Participation in VCEA’s benefits programs may be affected by your employment status or classification.
All employees of VCEA whether exempt, non-exempt, full-time, part-time, or temporary are employed at-will.
1. The EXEMPT status applies to certain administrative, professional, and executive staff. Exempt employees qualify for exemption from overtime regulations under state and federal law and their salaries already take into account that they may work long hours.
2. The NON-EXEMPT status applies to all other regular employees. Non-exempt employees receive extra pay for overtime work (as described in the overtime section of this employee handbook). Employees working in non-exempt positions are compensated for the actual amount of time spent on their job and are entitled to receive time and one-half (1 ½) their regular rate of pay for each hour worked in excess of forty (40) hours in a work week.
3. FULL-TIME employees work on a regular basis for at least 40 hours per week. Full-time employees may or may not be EXEMPT. They are eligible for all benefits available through work at VCEA, so long as they meet the applicable requirements, such as length of service.
4. PART-TIME employees are regularly scheduled to work fewer than 40.0 hours per week. Part-time employees who are regularly scheduled to work a minimum of 30 hours per week are entitled to all benefits as explained later in this employee handbook according to a prorated formula based on their average hours worked compared to a standard 40.0 hour workweek. Part-time employees who are regularly scheduled to work less than 30 hours per week are not eligible for benefits covered in this employee handbook, other than those required by law or as stipulated in writing signed by the Executive Officer.
5. TEMPORARY EMPLOYEES are hired with the understanding that their employment will not continue beyond a stated date or beyond completion of a specified project or projects. Temporary employees will generally not be employed for more than 6 months. Temporary employees are not eligible for benefits covered in this employee handbook, other than those required by law or as stipulated in writing signed by the Executive Officer.
181
VCEA I Last Updated: February 2021 10
6. INTERNS are employees who are gaining supervised practical experience in a professional field. Interns may be paid, but are not eligible for any benefits listed in this employee handbook except as required by law.
Recruitment
VCEA will conduct an appropriate recruitment, depending on the needs of the organization and the position involved. Open positions may or may not be posted to solicit outside candidates. If you are aware of a vacancy and are interested in being considered for the position, you should discuss the matter with your current supervisor.
Rehired/Converted Employees
If you meet eligibility requirements for rehire at the time of your separation from VCEA, you may apply for any open position for which you are qualified. Former employees will be considered along with all other applicants, and have no greater chance of being selected for employment than all other applicants.
If you are rehired by VCEA or convert from part-time to full-time status, your length of service with VCEA for all purposes will be calculated from the rehire date or the date of conversion to full-time status.
Employees who are involuntarily terminated for performance reasons or for violation of agency policy are ineligible for rehire. In addition, employees who voluntarily resign may still be ineligible for re-hire if VCEA learns of circumstances that would have justified termination for performance-based reasons regardless of when that information is acquired.
Job Duties
Your supervisor will explain your job responsibilities and the performance standards expected of you. Your job responsibilities may change at any time during your employment; for example you may be asked to work on special projects or to assist with other work necessary or important to the operation of VCEA. It is expected that VCEA will have your cooperation and assistance in performing such additional work.
VCEA also may, at any time, with or without notice, alter or change your job responsibilities, reassign or transfer your position, or assign you additional job responsibilities depending on business needs.
Work Schedules
VCEA’s normal business hours are 8:00 a.m. through 5:00 p.m., Monday through Friday. Your supervisor will assign your individual work schedule, and you are expected to be ready to perform your work at the start of your scheduled shift. Flexible work schedules and telecommuting may be accommodated with the approval of your supervisor. Alternative work arrangements are not an entitlement or employee benefit. A supervisor may end the arrangement at any time for any reason or without cause. All changes to normal working hours, flexible work schedules, and telecommuting arrangements should be documented with your supervisor and HR representative.
On occasion, work schedules may fluctuate with customer demand and business needs. If a change in your work schedule is required, your supervisor will notify you at the earliest opportunity. You may be required to work 182
VCEA I Last Updated: February 2021 11
overtime or hours other than those normally scheduled. Exempt employees are required to work as many hours as are necessary to complete the responsibilities of their positions.
Personnel Records
A personnel file will be confidentially maintained for each VCEA employee. You may review your personnel file during regular business hours upon making a request to the Executive Officer. An appointment will be made for the purpose of allowing the review.
VCEA will treat your personnel records as confidential and private. However, there are certain times when information may be given to a person outside VCEA. These include:
1. In response to a subpoena, court order, or order of an administrative agency;
2. To a governmental agency as part of an investigation by that agency of VCEA’s compliance with applicable law;
3. In a lawsuit, administrative proceeding, grievance, or arbitration in which you and VCEA are parties;
4. In a workers’ compensation proceeding;
5. To administer employee health benefit plans;
6. To a health care provider, when necessary;
7. To a first aid or safety personnel, when necessary; and
8. Information will be disclosed to prospective employers in accordance with the section on Employment Verification and References.
Please promptly notify the Executive Officer of any changes in your personal data. Keeping your file up-to-date can be important with regard to pay, deductions, benefits and other matters. Coverage or benefits that you and your family may receive under VCEA’s benefits package could be negatively affected if the information in your personnel file is incorrect.
Inspection of Payroll Records
Employees and former employees have the right to inspect and obtain copies of their own payroll records as required by applicable law. All requests must be submitted in writing to VCEA’s Executive Officer. Responses will be provided as required by law. Individuals who make a request may be asked to provide identification and may be required to pay for the cost of making the copies.
Layoffs and Work Reductions
VCEA may implement layoffs. Employees will be selected for layoff at VCEA’s discretion based on a combination of factors, including, but not necessarily limited to: business needs, employee performance and productivity, qualifications, attendance, attitude, ability and willingness to work the required days and hours, and the ability to work cooperatively with others in the affected work unit.
The weight given to the above factors may vary depending upon the particular needs of the affected work unit and VCEA as a whole at the time of the layoff.
Employment Termination
VCEA strives to ensure a smooth transition for employees leaving VCEA. 183
VCEA I Last Updated: February 2021 12
VCEA and its employees have an employment relationship that is known as “employment at will.” This means that employees are not required to work for VCEA for any set period of time nor is VCEA required to employ individuals for any specific length of time. The statements made in this policy do not alter, modify or limit the employment at will relationship. An “at-will” employee is subject to termination of employment at any time VCEA concludes it appropriate to do so.
Involuntary separation from service means that the termination action is being initiated by VCEA, rather than by the employee. In general, employees who are discharged by VCEA are not eligible for rehire. However, employees who are terminated due to layoff or restructuring may be eligible for rehire or recall at VCEA’s discretion.
VCEA will consider you to have voluntarily terminated your employment if you do any of the following:
1. Resign from VCEA;
2. Fail to return from an approved leave of absence on the date specified by VCEA, or;
3. Fail to report to work or call in for 3 consecutive work days In the event that you resign voluntarily, we ask – but do not require – that you provide two weeks’ notice to allow for a smooth transition and training of any replacement personnel.
All agency property such as office equipment, credit cards, keys, manuals, computer equipment, and cell phones must be returned on or prior to the last day of employment. You should return these items to your immediate supervisor.
Final wages for time worked, plus any pay for unused but accrued PTO, will normally be paid on your last day of employment, but no later than the next regularly scheduled payday.
Employment Verification and References
When VCEA receives a request for references or employment verification, VCEA will disclose only the dates of employment and the title of the last position held. VCEA will provide a prospective employer with your last earned wage or salary only at your written request. VCEA will release additional information only with a signed authorization and waiver of liability in a form acceptable to VCEA.
Only the Executive Officer is authorized to respond to requests for employee references and verification of employment. No other supervisor or employee is authorized to provide references for current or former employees.
As an employee of VCEA, all requests for information regarding another employee must be forwarded to the Executive Officer.
184
VCEA I Last Updated: February 2021 13
Timekeeping and Attendance
Punctuality and Attendance
Regular attendance and punctuality are “essential functions” of your job. You are expected to maintain regular attendance during all scheduled work hours, report to work on a timely basis, and work through the end of your regularly scheduled workday. Chronic absenteeism or lateness will not be tolerated and will result in discipline, up to and including termination. In the event of an unscheduled absence, please abide by the following:
• You must personally call your supervisor prior to the start of your shift if you are unable to report to work, or will be late to work, on any particular day.
• You are expected to advise another management representative of your absence if you are not able to reach your supervisor and leave a telephone number where you can be reached. • You may not have a relative or friend call in to report your absence, unless you are unable to call yourself due to a medical or other emergency.
• If you call after the start of your shift you will be considered tardy for that day. • You are expected to provide your supervisor with explanation of your absence or tardiness and inform your supervisor of the expected duration of the absence. If you are absent for medical reasons, you do not need to disclose the underlying medical condition.
• With the exception of certain extenuating circumstances, you must call in each day you are scheduled to work and will not report to work.
Repeated absenteeism or tardiness (whether excused or not) is not tolerated. Continuing patterns of absences, early departures, or tardiness - regardless of the exact number of days—may warrant disciplinary action, up to and including termination of employment. Emergency or extraordinary circumstances concerning an absence or tardiness will be considered, and we reserve the right to make an exception to this policy if, at our discretion, an exception is warranted. Repeated car failures, missing the bus, consistently failing to arrange back-up childcare or oversleeping do not constitute emergency or extraordinary circumstances. We reserve the right to determine what is considered excessive absenteeism. In all cases, we will make accommodations for qualified employees with disabilities where required by law.
If you fail to report for work for three (3) consecutive days without any notification to your supervisor, we will consider that you have abandoned your employment, and have resigned your position.
Timekeeping Requirements for Non-Exempt Staff
Applicable law requires VCEA to keep an accurate record of time worked. Employee time records are official VCEA records and must be accurately maintained. You must input your own time at the start and at the end of each workday, and at the start and end of each lunch hour. Completing another employee’s time record or intentionally falsifying a time record is a serious violation and may result in immediate termination of employment. If a time record needs to be corrected, both you and your supervisor must initial the change in the time record to verify its accuracy.
185
VCEA I Last Updated: February 2021 14
Meal and Rest Periods for Non-Exempt Staff
Employees will generally be provided with at least a 30-minute lunch break per day, which can be scheduled by your supervisor to best accommodate the workday.
Overtime Time Provisions for Non-Exempt Staff
As necessary, you may be asked to work overtime. Only actual hours worked in a given workday or workweek will be counted in determining which hours constitute overtime. We will attempt to distribute overtime evenly and accommodate individual schedules. A supervisor must previously authorize all overtime work. Any overtime worked without prior authorization may be grounds for discipline. We provide compensation for all overtime hours worked by non-exempt employees as follows: All hours worked in excess of forty (40) hours in one workweek will be treated as overtime.
Hours worked for purposes of overtime do not include an unpaid meal period, or hours away from work due to PTO, sickness, holiday, jury duty, or other absences from work. No overtime compensation will be paid to exempt employees. Exempt employees may have to work hours beyond their normal schedules, as work demands require.
Make-Up Time for Non-Exempt Staff
Make-Up time is defined as when a non-exempt employee asks his or her supervisor for additional time off to attend to personal matters. If the request is granted, this time off will be without pay. If you wish to make up this missed time, you may submit a “Make-Up Time Request Form” to your supervisor before the make-up time is worked. It is within the supervisor’s discretion to grant the request. Make-Up time must be worked in the same workweek as the missed time (including prior to the missed time) in order not to incur overtime. You may not work over forty (40) hours total in the week including make-up time.
Exempt Employee Time Off
Exempt employees of VCEA are paid a salary, which compensates them for working as many hours as required to complete their job duties. Exempt employees do not receive overtime pay. We realize, however, that in instances of extraordinary additional pressure or increased work hours, it may be appropriate for supervisors to recognize the exempt employee’s efforts by granting the employee extra time-off separate from and in addition to the employee’s accrued PTO time. In order to achieve consistency among supervisors and fairness to the exempt employees, supervisors should use the following guidelines when exercising their discretion to grant additional time off:
1. Limit the amount of additional time-off to no more than two days;
2. Require the employee to take the time-off in the week immediately following the increased hours whenever possible and;
3. Do not allow employees to accumulate any granted but unused time-off Lactation Accommodation
VCEA will provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee's infant child. The break time shall, if possible, run concurrently with any break time already provided to the employee. VCEA shall provide the employee with the use of a room or other location, other than a toilet stall, in close proximity to the employee's work area, for the employee to express milk in 186
VCEA I Last Updated: February 2021 15
private. If special arrangements are made to provide a non-exempt employee extra time beyond her normal rest period, the time will be unpaid.
Payment of Wages
Paydays are semi-monthly, the 15th and last day of the month. There are 24 pay periods in a year. The workday (a 24-hour, consecutive period) begins at 12:01 a.m. and ends at midnight. The workweek begins on Sunday and ends on Saturday.
If a regular payday falls on a weekend or holiday, you will be paid on the first day of work prior to the regularly scheduled payday. If there is an error on your check, please report it immediately to your supervisor.
For your convenience, we offer a direct deposit option.
Advances
We do not permit advances against paychecks or against unaccrued PTO.
Payroll Deductions, Wage Attachments and Garnishments
VCEA makes certain deductions from every employee’s paycheck. Among these are applicable federal, state, and local income taxes, social security and Medicare taxes, state disability insurance contributions, and paid family leave contributions. By law, VCEA is also required to honor legal attachments and garnishments of an employee’s wages or salaries. If your wages are attached, we will withhold the specified amount to satisfy the terms of the attachment.
Reporting Time Pay
Reporting time pay will be paid under the following conditions:
1. Reporting time pay to non-exempt is owed when you report to work at your regularly scheduled time, but you are given less than half the usual or scheduled day's work. In this case, you will be paid for at least half of the hours you were scheduled to work, but never less than two hours pay, and never more than four hours pay.
2. Reporting time pay is also owed if you are required to report to work a second time in any one (1) workday and are given less than two (2) hours work on the second reporting. In this case you will receive at least two (2) hours pay for the second appearance.
These provisions do not apply if you are on a paid “standby” or “on call” status. In some instances, you may not receive reporting time pay. Reporting time pay does not apply if public utilities fail, such as water, gas, electricity, or sewer and/or when work is interrupted by an “act of God” or other causes not within VCEA’s control.
Payment for Hours Worked During Business Travel for Non-Exempt Staff Whenever possible, non-exempt employees traveling on agency business are expected to do so during normal working hours. In the very rare instance where your travel time constitutes overtime, you will be paid overtime as required by law. Non-exempt employees will be paid for all hours worked, including out of town travel time, at regular and overtime pay rates according to the law. Pay for travel time may be at a rate of pay that is less than the employee's normal rate of pay.
187
VCEA I Last Updated: February 2021 16
If you are non-exempt and traveling on business, you will not be paid for time between work assignments; e.g., if you stay the night in a hotel, pay begins when you begin to work, or are in transit. Travel is to be scheduled in advance, in writing by your supervisor, with the knowledge of the Executive Officer.
Non-exempt travel may be approved on an as-needed basis, but only with prior authorization from your supervisor.
Pay for Mandatory Meetings for Non-Exempt Staff
VCEA will pay you for your attendance at meetings, lectures and training programs if all of the following conditions are met:
1. Attendance is mandatory (i.e. required by VCEA).
2. The meeting, course, or lecture is directly related to your job.
3. You are notified of the necessity for such meetings, lectures, or training programs by your supervisor (i.e. pre-approval by management is required)
If you meet the above conditions you will be compensated at your regular rate of pay. If you are required to travel, then travel pay will be provided. You will not receive compensation for voluntary attendance in courses that are conducted outside of normal business hours and/or that are not directly related to your current job.
Standards of Conduct
Professional Business Conduct and Ethics
By accepting employment with VCEA, you have a responsibility to VCEA and to your fellow employees to adhere to certain codes of behavior and conduct. The purpose of these rules is to ensure that you understand what conduct is expected and necessary. When each person is aware that he or she can fully depend upon fellow workers to follow the rules of conduct, then our agency will be a better place for everyone to work.
Generally speaking, we expect you to act in a mature and responsible way at all times. VCEA values honesty in communication and personal responsibility. To avoid any possible confusion, some of the more obvious unacceptable activities are noted below. If you have any questions concerning any work or safety rule, or any of the unacceptable activities listed, please ask for an explanation.
Occurrences of any of the following violations, because of their seriousness, may result in disciplinary action up to and including immediate suspension or termination:
Unacceptable Activities:
1. Generally, conduct which is disloyal, disruptive, or damaging to VCEA.
2. Falsification of timekeeping records.
3. Dishonesty; falsification or misrepresentation on your application for employment or other work records; lying about sick or personal leave; falsifying reason for a leave of absence or other data requested by VCEA; alteration of agency records or other agency documents.
4. Working under the influence of alcohol or illegal drugs, including marijuana. 188
VCEA I Last Updated: February 2021 17
5. Theft or inappropriate removal or possession of agency property or the property of fellow employees; unauthorized use of agency equipment and/or property for personal reasons.
6. Possession, distribution, solicitation, sale, transfer, or use of alcohol or illegal drugs, including marijuana, in the workplace, while on duty, or while operating agency-owned vehicles or equipment.
7. Fighting, threatening, or coercing fellow employees on agency property or during working hours, for any purpose.
8. Boisterous or disruptive activity in the workplace.
9. Negligence or any careless action leading to damage of agency-owned or customer-owned property or which endangers the life or safety of another person.
10. Obscene or abusive language toward any supervisor, employee or customer; indifference or rudeness towards a customer or fellow employee; any disorderly/antagonistic conduct on agency premises.
11. Insubordination or other disrespectful conduct; refusing to obey instructions properly issued by your supervisor pertaining to your work; refusal to help out on a special assignment.
12. Violation of security or safety rules or failure to observe safety rules and/or practices; failure to wear required safety equipment; tampering with VCEA equipment or safety equipment.
13. Creating or contributing to unsanitary conditions in the workplace.
14. Smoking in prohibited areas.
15. Any act of harassment, sexual, racial or other; telling sexist or racist jokes; making racial or ethnic slurs.
16. Possession of dangerous or unauthorized materials, such as explosives or firearms, in the workplace.
17. Excessive absenteeism; failure to report an absence or late arrival.
18. Unauthorized absence from work station during the workday; sleeping or loitering during working hours.
19. Unauthorized use of telephones, mail system, or other agency-owned equipment.
20. Originating, spreading, or taking part in malicious gossip or rumors about employees of VCEA.
21. Unauthorized disclosure of business "secrets" or confidential information; giving confidential or proprietary information to competitors or other organizations or to unauthorized VCEA employees; breach of confidentiality of personnel or agency information.
22. Violation of agency rules or policies; any action that is detrimental to VCEA’s efforts to operate profitably.
23. Unsatisfactory or careless work; failure to meet production or quality standards as explained to you by your supervisor.
24. Soliciting during working hours and/or in working areas; selling merchandise or collecting funds of any kind for charities or others without authorization during business hours, or at a time or place that interferes with the work of another employee on agency premises.
25. Gambling on agency property.
26. Failure to immediately report any damage or accident involving agency equipment or vehicles.
27. Failure or refusal to comply with the work schedule, including mandatory overtime.
28. Using, removing, or borrowing agency equipment or property without prior authorization.
29. The use of abusive or threatening language or actions toward anyone.
This list is not exhaustive. Rather, we ask that you keep in mind at all times the need to conduct yourself with reasonable and proper regard for the welfare and rights of all our employees and for the best interests of the agency. This statement of prohibited conduct does not alter VCEA's policy of at-will employment. Either you or 189
VCEA I Last Updated: February 2021 18
VCEA remains free to terminate the employment relationship at any time, with or without reason or advance notice.
Performance Evaluations
VCEA encourages an open dialogue between an employee and his or her supervisor on an informal, regular basis. We believe this type of interaction increases job satisfaction for both the employee and VCEA.
Formal performance evaluations will be conducted annually or with frequency dependent on length of service, job position, past performance, changes in job duties, or recurring performance problems. After the review, you will be asked to sign the evaluation report to acknowledge that it has been presented to you and discussed with you by your supervisor, and that you are aware of its contents.
Positive performance evaluations do not guarantee increases in salary, bonuses, or promotions. Salary increases, bonuses, and promotions are solely within the discretion of VCEA, and depend upon many factors in addition to performance. Having your compensation reviewed does not necessarily mean that you will be given an increase.
VCEA uses a discretionary pay-for-performance compensation model to support the highest levels of organizational performance. The intent is to reward individual employee effort and results commensurate with their contributions and impact toward achieving the goals and objectives of the agency. The primary form of a performance reward is a merit increase. These base pay increases move an employee through their salary range and support the agency’s retention goals by ensuring employee pay remains competitive with similar roles in the market. Employees who meet or exceed their goals and objectives, as evidenced by the employee receiving an overall rating of 2.0 (Effective) or higher on their year-end Performance Check-in, may be eligible to receive a merit increase (an adjustment in base salary) based on that performance. In limited cases, and with written justification from the supervisor, manager, and Director, an employee with an overall performance rating of less than 2.0 (Effective), may be considered for a reduced base salary.
Performance bonuses also may be used to reward employees when superior performance, as defined below, has been demonstrated in achieving goals and objectives. In most cases, performance bonuses are used to supplement merit increases, or instead of merit increases, when an employee is at or close to the top of their salary range. “Superior performance” is evidenced by an employee receiving a rating of 3.0 (Highly Effective) on one or more goals that, in total, represent at least 25% of the employee’s assigned work during the year. “Superior performance” also may be evidenced by an employee receiving an overall rating of 2.5 or higher on their year-end Performance Check-in. Recommendations for performance bonuses must be justified in writing by the supervisor and/or manager and fully describe the efforts put forth by the employee that demonstrates superior performance.
The written justification, and approval of the bonus, are retained. Funding for performance bonuses is included in the annual budget or a budget amendment and approved by the Board of Directors. Performance bonuses are not guaranteed and may not be available due to budget constraints or other business reasons. 190
VCEA I Last Updated: February 2021 19
Compensation Equity
A pay equity increase may be granted to an employee under certain circumstances, such as the following: a significant lag in salary exists relative to market conditions or between employees with comparable job functions who have similar levels of experience, skills and knowledge, and demonstrated performance; an employee’s assigned functions or work tasks increase the scope of the position but do not warrant reclassification; salary compression exists between supervisors and their employees; in order to address retention of employees with highly specialized skills or due to competitive job markets. In addition, a discretionary agency-wide pay equity adjustment for inflation in accordance with the U.S. Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) may be made at the option of the Board of Directors.
Recommendations for pay equity increases are prepared by the Director of Finance and Internal Operations and must be approved by the Executive Officer. Employees approved for a pay equity increase will be notified, and adjustments may be paid retroactively to the first pay period of the current calendar year. Funding for pay equity increases is included in the compensation identified in the annual budget and approved by the Board of Directors. Pay equity increases are discretionary and may not be available due to budget constraints or other business reasons
Problem Resolution
At some time, you may have a complaint or question about your job, your working conditions, or the treatment you are receiving. Your good-faith complaints and questions are of concern to us. We ask that you take your concerns first to your supervisor, following these steps:
1. Bring the situation to the attention of your immediate supervisor who will then review your concern and provide a solution or explanation.
2. If the problem remains unresolved, you may present it in writing to the Executive Officer who will work towards a resolution.
This procedure, which we believe is important for both you and us, cannot result in every problem being resolved to your satisfaction. However, we value your input and you should feel free to raise issues of concern, in good faith, without the fear of retaliation.
Alcoholic Beverage Consumption
Due to the high risk and liability involved, VCEA will not provide alcoholic beverages at social gatherings to VCEA employees. This policy applies to the following:
1. Birthday parties;
2. Office parties;
3. Office picnics; and
4. Recreational activities (i.e. organized team sports) 191
VCEA I Last Updated: February 2021 20
Drug and Alcohol Abuse and Testing
VCEA is concerned about the use of alcohol, illegal drugs, or controlled substances as it affects the workplace.
We comply with state and federal drug abuse regulations, including the Drug-Free Workplace Act of 1988. Use of these illegal substances (whether illegal under California or federal law) whether on or off the job can adversely affect your work performance, efficiency, and safety and health. The use or possession of these substances on the job constitutes a potential danger to the welfare and safety of other employees, and exposes VCEA to the risks of property loss or damage, or injury to other persons. Furthermore, the use of prescription drugs and/or over-the-counter drugs also may affect your job performance and seriously impair your value to us. Any employee who is using prescription or over-the-counter drugs that may impair your ability to safely perform the job, or affect the safety or well-being of others, must notify a supervisor of such use immediately before starting or resuming work. All precautions necessary to preserve your privacy will be taken. You must adhere to the rules stated in this policy as a condition of employment. Failure to comply with this policy may result in discipline, including termination. The Executive Officer has been designated to administer this policy, monitor the program and make reports as required by law.
If there is ever a reasonable basis to suspect you of violating the drug and alcohol policy and being under the influence during working hours, you will be requested to immediately submit to a drug and/or alcohol test.
Suspicion will be based on objective symptoms, such as factors related to your appearance, behavior and speech. A reasonable basis may also exist if you are found to be in possession of illegal drugs, alcohol or paraphernalia connected with the use of an illegal drug. Possession of illegal drugs or alcohol is prohibited even if you have not used these substances.
The following rules and standards of conduct apply to all employees either on agency property, or during the workday (including meals and rest periods). The following are strictly prohibited by VCEA:
1. Possession or use of alcohol or illegal drugs, including marijuana, or being under the influence of alcohol or illegal drugs while on agency premises or at any time on duty.
2. Driving an agency vehicle or driving for agency business in a private vehicle while under the influence of alcohol or illegal drugs, including marijuana.
3. Distribution, sale, or purchase of an illegal or controlled substance while on agency premises or at any time on duty.
4. Possession or use of an illegal or controlled substance, or being under the influence of an illegal or controlled substance while on agency premises or at any time while working.
5. Any drug or alcohol statute conviction. You must notify VCEA within 5 days of such conviction.
In order to enforce this policy, we reserve the right to conduct searches of agency property and to implement measures necessary to deter and detect abuse of this policy.
In the event of suspicion of use in connection with an on the job accident, you may be asked to provide body substance samples (such as urine and/or blood) to determine the illicit or illegal use of drugs and alcohol. VCEA will test for alcohol, cannabinoids, (THC), Opiates, i.e. codeine and morphine, Cocaine metabolites, Amphetamines, i.e. amphetamine and metamorphines, adulterants low creatine levels and Phencyclidine. VCEA 192
VCEA I Last Updated: February 2021 21
assures that any information concerning your drug and/or alcohol use will remain confidential. Refusal to submit to drug testing may result in disciplinary action, up to and including termination of employment.
If the results of your drug and/or alcohol test are positive, VCEA will take disciplinary action which may include suspension or immediate termination. The disciplinary action will be based on the seriousness of the offense and your past performance. If you return to work after testing positive for drugs and/or alcohol, you may be required to consent to unannounced tests for drugs and/or alcohol for a specified period as a condition of continued employment. In the event that you test positive, you may request a second test to be performed by a reliable drug testing agency, at your expense.
Any conviction you receive on a charge of illegal sale or possession of any controlled substance will not be tolerated. In addition, we must keep people who use, sell, or possess controlled substances off VCEA's premises in order to keep the controlled substances themselves off the premises.
Violation of the above rules and standards of conduct will not be tolerated. VCEA may bring the matter to the attention of appropriate law enforcement authorities.
VCEA’s policy on drug and alcohol in no way limits or alters the at-will employment relationship.
Customer and Public Relations
The success of VCEA depends upon the quality of the relationships between VCEA, our employees, and our customers, suppliers and the general public. Our customers’ impression of VCEA and their interest and willingness to do business with us are formed by how you serve them.
The opinions and attitudes that customers have toward our agency can be affected for a long period of time by the actions of just one employee. It is sometimes easy to take a customer for granted, but when we do, we run the risk of not only losing that customer, but their associates, friends or family who also may be customers or prospective customers.
Here are several things you can do to help give customers a good impression of VCEA:
1. Customers are to be treated courteously and given proper attention at all times. Never regard a customer’s questions or concerns as an interruption or an annoyance. Customer inquiries, whether in person or by telephone, must be addressed promptly and professionally.
2. Never place a telephone caller on hold for an extended period of time. Direct incoming calls to the appropriate person and make sure that the call is answered.
3. Act competently and deal with customers in a courteous and respectful manner. Through your conduct, show your desire to assist the customer in obtaining the help that he or she needs. If you are unable to help a customer, find someone who can.
4. All correspondence and documents, whether to customers or others, must be neatly prepared and error-free. Attention to accuracy and detail in all paperwork demonstrates your commitment to those with whom we do business.
5. Never argue with a customer. If a problem develops or if a customer remains dissatisfied, ask your supervisor to intervene.
193
VCEA I Last Updated: February 2021 22
6. Communicate pleasantly and respectfully with other employees at all times.
These are the building blocks for your and VCEA’s continued success.
Confidentiality
It is your responsibility to safeguard confidential information obtained during your employment with us, including financial information obtained from customers and private information about other employees.
You may in no way reveal or divulge any such information unless it is necessary for you to do so in the performance of your duties. Access to confidential information should be on a "need-to-know" basis and must be authorized by your supervisor.
If you are questioned by someone outside VCEA or your department and you are concerned about the appropriateness of giving them certain information, you are not required to answer. Instead, as politely as possible, refer the request to your supervisor or the Executive Officer.
It is also important to remember that you may not disclose or use proprietary or confidential information except as your job requires. You may not keep or retain any originals or copies of reports, notes, proposals, customer lists or other confidential and proprietary documents, equipment, supplies, or property belonging to VCEA. Any and all copies or originals of reports, and notes belong to VCEA and must be turned over to VCEA within twenty-four (24) hours of termination of employment.
You are not permitted to remove or make copies of any VCEA records, reports or documents without prior management approval. Do not post confidential information about VCEA, customers, employees, or affiliates on any social media. Disclosure of confidential information could lead to termination, as well as other possible legal action.
Conflict of Interest
As an employee of VCEA, you must avoid actual or potential conflicts of interest with VCEA. If you are found to have a conflict of interest, you may be subject to discipline, including termination. You should contact your supervisor with any questions about this policy. Prohibited activities include, but are not limited to:
1. Having a direct or indirect financial relationship with a VCEA customer, vendor, or supplier; however, no conflict will exist in the case of ownership of less than 1 percent of a publicly traded corporation.
2. Engaging in any other employment or personal activity during work hours, or using VCEA’s name, logo, equipment or property, including stationery, office supplies, computers, telephones, fax machines, postage, and office machines, for personal purposes.
3. Soliciting agency employees, suppliers, or customers to purchase goods or services of any kind for non-agency purposes, or to make contributions to any organizations or in support of any causes.
4. Soliciting or entering into any business or financial transaction with another employee whom the soliciting employee supervises, either directly or indirectly, such as hiring the employee to perform personal services or soliciting the employee to enter into an investment. 194
VCEA I Last Updated: February 2021 23
Solicitation
You are not permitted to solicit or distribute literature during working time. Working time includes both your working time and the working time of the employee to whom the solicitation or distribution is directed.
Similarly, distribution of written solicitation material in working areas is prohibited at all times. If you wish to distribute fundraising items such as cookies, candy, and coupon books for sale, you may place them without solicitation in your workstation or VCEA break rooms.
Media Contact
If you are contacted by a news organization regarding VCEA business, please direct all media inquiries to your supervisor, the Executive Officer, or the Director of Marketing.
Employment of Friends or Relatives
The employment of friends and relatives in the same area of an organization may cause conflicts of interest and appearances of impropriety. In addition, personal conflicts may impact the working relationship of the parties.
Although VCEA does not prohibit the hiring of friends and relatives of existing employees, VCEA is committed to monitoring situations in which friends or relatives work in the same area. In the event of an actual or potential problem, VCEA’s response may include reassignment or termination of one or both of the individuals involved.
For the purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with an employee is similar to that of persons who are related by blood or marriage, or one who is a domestic partner.
Personal Relationships in the Workplace
VCEA desires to avoid misunderstandings, complaints of favoritism, claims of sexual harassment, and employee dissension that may result from personal or social relationships amongst employees. Therefore, VCEA asks that if you become romantically involved with another employee that you disclose your relationship to a supervisor with whom you feel comfortable. This information will be kept as confidential as possible. For purposes of this provision, “romantically involved” will be interpreted broadly. VCEA reserves the right to take necessary and appropriate action to resolve any potential conflict of interest arising out of romantic involvement among employees. Depending on the facts of the situation, such action may include reassignment or termination of one or both of the employees involved.
VCEA is committed to maintaining a professional work environment where supervisors treat all employees fairly and impartially. Accordingly, supervisors are not allowed to date, or become romantically or intimately involved with, employees who report to them directly or indirectly. Also, spouses and immediate family members are prohibited from working in positions where they directly report to, or are reported to, by their spouses or family members. Personal relationships very often cause problems in the workplace, such as a lack of objectivity towards the subordinate’s job performance, the perception of favoritism by other employees (whether justified or not), and potential sexual harassment complaints.
For purposes of this policy, “immediate family” includes significant others (such as unmarried couples who live together), domestic partners, step-parent and step-child relationships, in-law relationships, grandparents and cousins (including analogous relationships with the parents and children of an employee’s significant other). This policy covers all family-like relationships, regardless of blood or legal relationships. 195
VCEA I Last Updated: February 2021 24
Employees who are currently dating one another, or employees who are married or related and report to or supervise each other, may request to be transferred in order to comply with this policy. When possible, VCEA will attempt to accommodate such requests. Please understand, however, that VCEA reserves the right not to transfer employees based on conflicting business considerations.
Unprofessional behavior in the workplace, such as sexually related conversations, inappropriate touching (i.e., kissing, hugging, massaging, sitting on laps) another employee, and any other behavior of a sexual nature, is prohibited.
If two employees marry or become related, causing actual or potential problems such as those described, only one of the employees will be retained with VCEA unless reasonable accommodations can be made to eliminate the actual or potential conflict. The employees will have 30 days to decide which relative will stay with VCEA. If this decision is not made in the time allowed the Executive Officer will make the decision, taking the employment history and job performance of both employees as well as the business needs of VCEA into account. Supervisors who have any questions about the application of this policy to an employee or applicant should contact the Executive Officer.
Dress Policy
You are expected to dress and groom yourself in accordance with accepted social and business standards, particularly if your job involves dealing with customers or visitors in person. A neat, tasteful appearance contributes to the positive impression you make on our customers.
Business casual dress is generally expected which should include nice shoes, slacks, pantsuits, dresses, skirts, and shirts (and possibly suits and ties when appropriate). Violating dress code standards may subject you to appropriate disciplinary action.
Day-to-Day Operations
Employer and Employee Property
Routine inspections of agency property might result in the discovery of an employee’s personal possessions. You are encouraged not to bring into the workplace any item of personal property which you do not want to reveal to VCEA.
All desks, lockers, offices, work spaces, credenzas, cabinets, electronic mail (e-mail), telephone systems, office systems, computer systems, any and all electronically issued technology, agency vehicles and other areas or items belonging to VCEA are open to VCEA and its employees. YOU SHOULD HAVE NO EXPECTATION OF PRIVACY IN ANY OF THESE AREAS. Personal items and messages or information that you consider private should not be placed or kept in any of these places or areas belonging to VCEA.
Storage areas, work areas, file cabinets, credenzas, computer systems and software, office telephones, cellular telephones, any and all electronically issued technology, modems, facsimile machines, copy and scanner machines, tools, equipment, desks, voice mail, and electronic mail are the property of VCEA, and need to be maintained according to agency rules and regulations.
196
VCEA I Last Updated: February 2021 25
Desks and work areas must be kept clean, and are to be used for work-related purposes. VCEA’s property is subject to inspection at any time, with or without prior notice. Prior authorization must be obtained before any of VCEA’s property may be removed from the premises.
For security reasons, you should not leave personal belongings of value in the workplace. Personal items, lockers and desks are subject to inspection and search, with or without notice, and with or without your prior consent.
Terminated employees should remove any personal items at the time of separation. Personal items left in the workplace by previous employees are subject to disposal if not claimed at the time of your termination.
Electronic Systems and Privacy
Access to VCEA’s electronic systems is provided for work-related purposes. There should be NO expectation of privacy in connection with the use of electronic systems, including stored e-mail/voice mail/text messages or any messages sent electronically. All messages created, sent, received or stored in these systems are and remain the property of VCEA. VCEA reserves the right to retrieve and review any message composed, sent or received via the system. Please note that even when a message is deleted or erased, it is still possible to recreate the message; therefore, the ultimate privacy of messages cannot be ensured to anyone.
To safeguard and protect the proprietary, confidential and business-sensitive information of VCEA, and to ensure that the use of all electronic systems and equipment is consistent with VCEA’s legitimate business interests, authorized representatives of VCEA may monitor the use of such systems from time to time without notice, which may include printing and reading materials, files on the system, list servers, and equipment.
You should be aware that e-mail messages, like VCEA correspondence, and any and all messages sent electronically may be read by other VCEA employees and outsiders under certain circumstances. While it is impossible to list all of the circumstances, some examples are the following: (1) during system maintenance of the e-mail system, (2) when VCEA has business needs to access the employee’s mailbox, (3) when VCEA receives a legal request that requires disclosure of e-mail messages, or (4) when VCEA has reason to believe the employee is using e-mail in violation of VCEA policies.
Social Media Guidelines
VCEA understands that various forms of communication occur through social media, such as Facebook, Twitter, LinkedIn, blogs, and multimedia host sites such as YouTube. Such communications occur in social networking, blogs, and video sharing and similar media. It should be remembered that social media sites do not provide a private setting. Employees who communicate information through social media therefore should not expect that such information is private
Employees must remember that all existing policies apply to information disseminated through social media.
These guidelines are intended to help employees understand some of the unintended outcomes of sharing information through social media.
Application of Policies
The employer’s policies and standards apply to conduct that occurs in the workplace and while employees are on duty, wherever they happen to be. They also apply to activities that occur during an employee’s own time, 197
VCEA I Last Updated: February 2021 26
outside of work, if the activities have an actual or potential impact on the employee’s performance, the performance of coworkers, or the employer. Employees should therefore understand that they are responsible for certain activities that occur off the employer’s premises or on their own time both to the employer and third parties. Nothing in this policy prevents employees from exercising their broad rights to discuss the terms and conditions of employment with others, to take action with others to improve your working conditions, or to otherwise exercise their rights to engage in protected concerted activity.
General Policies
VCEA’s policies regarding workplace conduct and interpersonal interactions are embodied in a number of policies, including policies that protect VCEA’s legal interests and confidential information.
The policies also prohibit unlawful harassment and discrimination and require employees to use work time in an appropriate manner.
The principles set forth in VCEA’s policies apply equally to social media, even when the policies do not refer specifically to social media. Violations of any policy through social media or networking will be appropriately addressed when brought to management’s attention.
Illustrations of some of the relevant policies and how they may apply to social media are provided below. The following guidelines apply to all employees when they are at work and away from work.
General expectations
• Employees may not post or transmit any material or information that includes confidential, proprietary or trade secret information, or information that is untrue, defamatory, obscene, profane, threatening, harassing, abusive, hateful or humiliating to another person or entity. This includes, but is not limited to, comments regarding VCEA or its employees or customers. Employees should ask their supervisors and refer to agency policies if they have any questions about what is appropriate to include in communications involving social media.
Harassment
• VCEA will not tolerate intimidation, bullying or threats of violence among co-workers and such acts, even if occurring outside of work, will result in serious consequences, including termination. • VCEA maintains a strict policy prohibiting harassment of any kind. Harassment is inappropriate and contrary to VCEA policy if it is based upon any legally protected characteristic. It includes unwelcome verbal, physical, or visual conduct that creates an intimidating, offensive, or hostile work environment or unreasonably interferes with work performance.
Reputation
• Employees should act responsibly and remember that untrue or defamatory postings can have serious consequences. Do not create fake blogs or false reviews of VCEA or its customers.
Acceptable Use Guidelines
• E-mail and Internet access is provided to support VCEA’s business operations. Incidental use of e-mail and internet for personal reasons is permissible during non-working periods during the workday, 198
VCEA I Last Updated: February 2021 27
provided it is not excessive and provided it does not interfere with VCEA business Any use that includes tapping into electronic social media should be consistent with VCEA’s values, policies and applicable laws.
• Participation in social media sites should be limited during work time; incidental use during break time is not prohibited by this policy. Under no circumstances may employees access social media sites while performing safety-sensitive functions such as driving.
Opinions
• Employees should not speak on behalf of VCEA without proper authorization to do so. Employees should at all times make it clear that their opinions do not represent those of VCEA. They should include disclaimers in online communications advising that they are not speaking officially or unofficially on behalf of the organization.
• Employees may not use VCEA’s logo or proprietary graphics to imply that you are speaking on behalf of VCEA.
Questions
• Employees who have concerns regarding workplace conduct or inappropriate behavior or comments are encouraged to contact the Executive Officer for further guidance.
Additional Guidance and Information
While VCEA’s policies offer very clear direction on some issues, there are other areas where common sense must prevail. When in doubt about posting, employees should consider the following:
• There is no expectation of privacy when engaging in social media networking activities. You may know everyone in the room when you have a conversation in person. This will not apply with social networking applications. You may not have full control over how your comments are perceived or shared.
• These are public forums. As a practical matter, it may be impossible to delete information that is shared.
Comments may be publicly available for years.
• Even when you do not identify your employer by name in the communication or posting, some readers are likely to know where you work. Keep this in mind when you consider posting or transmitting comments that may be work-related. This should also be considered when creating your profile. • Do not state or imply that the opinions you express are those of VCEA, its management, or other employees. Include a disclaimer to this effect.
Telephone Usage
You may use agency telephones for local or personal calls within reason. You are not to charge long distance personal telephone calls to VCEA. You are expected to limit personal calls so they do not become excessive or disruptive to your work or work area.
Cell Phone Usage
VCEA realizes that in our fast-paced business environment, meeting our goals and staying in touch with our customers and co-workers is a necessary process in working efficiently. But, first and foremost, we want to 199
VCEA I Last Updated: February 2021 28
preserve the safety of our employees and those in the community. California law limits the use of cell phones while driving to those having hands-free operation.
This law provides that, it is illegal to drive a motor vehicle while using a wireless telephone, unless that telephone is designed and configured to allow hands-free listening and talking operation, and is used in that manner while driving.
Additionally, writing, sending, or reading text-based communications on your cell phone while driving is also prohibited under California law. This includes text messaging, instant messaging, and e-mail. You will be responsible for any tickets you receive if you violate this law.
Use of a hands-free cell phone is required while driving for agency business. An option is that you pull over while driving to place or receive calls on your cellular phones. There is a great potential for harm to you and to others if this policy is violated.
Personal cell phone use is not needed or required for work purposes and should not be used for work.
Workplace Monitoring
Workplace monitoring, both human and electronic, may be conducted by VCEA to ensure quality control, employee safety, compliance with VCEA policies, security, and customer satisfaction.
Customer sites may also utilize video surveillance of non-private workplace areas. Video monitoring is used to identify safety concerns, maintain quality control, detect theft and misconduct, and discourage or prevent acts of harassment and workplace violence.
Because VCEA is sensitive to your legitimate privacy rights, every effort will be made to see that workplace monitoring is done in an ethical and respectful manner.
Travel Expense Policy
VCEA will reimburse you for work-related travel expenses such as transportation, overnight accommodations and meals. You should have your supervisor’s approval before incurring travel expenses. All requests for reimbursement must be submitted to the Executive Officer for approval along with supporting documents or original invoices.
Non-exempt employees will be paid for time spent traveling and in conference sessions. If you are required to use your personal automobile on work-related business, VCEA will reimburse you for mileage at the current IRS reimbursement rate and for parking expenses. You should submit the appropriate expense form to the Executive Officer for approval and then forward it to accounting for payment once per month. If you use your personal vehicle for work-related travel you are expected to maintain at least the minimum insurance required by law.
200
VCEA I Last Updated: February 2021 29
Agency Property and Equipment
Equipment essential to accomplishing job duties is often expensive and may be difficult to replace. When using agency property, you are expected to exercise care, arrange for required maintenance, and follow all operating instructions, safety standards, and guidelines.
VCEA requires that all equipment be in proper working order and safe to work with at all times. If any equipment appears to be damaged, defective, or in need of repair, do not use it until a qualified technician certifies that it is repaired and safe. Never try to fix broken equipment yourself. Please notify your supervisor of any equipment breakdown as soon as it happens. If the breakdown requires emergency repairs, your supervisor will help you deal with the emergency situation as soon as possible. Prompt reporting of damages, defects, and the need for repairs could prevent possible personal injury and deterioration of equipment. Please ask your supervisor if you have any questions about your responsibility for maintenance and care of equipment used on the job.
If you are authorized to operate an agency vehicle in the course of your assigned work, or if you operate your own vehicle in performing your job, you must adhere to the following rules:
1. You must be a licensed California driver and must maintain at least the minimum insurance required by law.
2. You must maintain weekly mileage reports.
3. You are responsible for following all the manufacturer’s recommended maintenance schedules so as to maintain valid warranties, and for following the manufacturer’s recommended oil change schedule.
4. VCEA provides insurance on agency vehicles. However, you will be considered completely responsible for any accidents, fines, moving or parking violations.
5. If involved in an accident do not admit fault, only provide required insurance and personal DMV information.
6. You must keep VCEA vehicle clean at all times.
7. Persons not authorized or employed by VCEA cannot operate or ride in an agency vehicle.
8. Prior to operation of any agency vehicle, your supervisor will train you on the appropriate steps to take if you are involved in an accident, such as filling out the accident report, getting names and phone numbers of witnesses and so on.
If you are required to drive an agency vehicle or your own vehicle for agency business, you will also be required to show proof of a current, valid driver’s license and current effective auto insurance coverage prior to the first day of employment.
If you drive your own vehicles on agency business you will be reimbursed at the current IRS reimbursement rate.
You are responsible for all agency property, materials, or written information issued to you or in your possession. You may be asked to sign an acknowledgment of receipt of agency property issued to you. All agency property must be returned on or before your last day of work. You may be responsible for the replacement cost of agency property not returned.
201
VCEA I Last Updated: February 2021 30
Agency cars are for agency business only, and only authorized employees may drive agency cars. Employee spouses, children, friends or anyone other than the employee may not operate these vehicles, unless an emergency arises. A violation of these rules, or excessive or avoidable traffic and parking violations may result in disciplinary action, up to and including termination.
Personal Use of Agency Property
You are not allowed to use agency owned property for personal use. The definition of “agency owned” assets includes, but is not limited to, facilities, computers, and their related equipment, labelers, copy machines, postage meter, any type of supplies including office supplies, tools, vehicles, credit cards, etc. These assets are provided to you for agency related business only.
Please also remember that all desks, lockers, cabinets, computers and vehicles that belong to VCEA will be open to all agency employees. Personal items, messages or information that you consider private should not be placed or kept in telephone systems, office systems, agency computer systems, office work spaces, desks, and credenzas or file cabinets.
If you are issued an agency credit card you are responsible for the use of that card. Under no circumstances will VCEA allow you to sign an agency credit card unless the card being signed is issued in your name. Signing another employee’s credit card will result in liability for the expense and may subject you to immediate termination. If you hold an agency credit card you may only give permission to another employee to make an authorized business purchase or reservation using your card with prior approval from the Executive Officer of VCEA. Any holders of agency credit cards or authorized users who transact a non-business related charge may be subject to immediate termination. Receipts for all credit card transactions must be given to the Finance Director along with an explanation of the purchase.
Driving Record and Insurance
As a condition of employment, we require you to maintain an acceptable driving record if you drive for agency business. Any accidents or traffic violations must be reported to a supervisor immediately if they occur during the course of your duties. You will be responsible for any tickets you receive while driving on agency business whether in an agency vehicle or your own personal vehicle. Failure to report an on-the-job motor vehicle accident, no matter how minor, will lead to disciplinary action, up to and including termination. Additionally, you are required to maintain the level of insurance required by the state of California. A copy of your insurance card must be on file before you will be allowed to drive for agency business.
Health and Safety
Safety is everybody's business. Safety is to be given primary importance in every aspect of planning and performing all VCEA activities. We want to protect you against injury and illness, as well as minimize the potential loss of production. To achieve our goal of maintaining a safe workplace, everyone must be safety conscious at all times. In compliance with California law, and to promote the concept of a safe workplace, we maintain an Injury and Illness Prevention Plan (IIPP). The IIPP is available for your review from the Director of Finance & Internal Operations. The Director of Finance & Internal Operations has responsibility for implementing, administering, monitoring, and evaluating the safety program. Its success depends on the alertness and personal commitment of all.
202
VCEA I Last Updated: February 2021 31
You will receive a copy of VCEA’s general safety rules and will receive health and safety training as part of this program. A complete copy of the Safety Program is kept by the Executive Officer and is available for your review.
Smoking Policies
Smoking, use of e-cigarettes or vapor products is not allowed in any enclosed area of the building, or within 25 feet of any entrance of the building or in any agency vehicle. In fairness to those who do not smoke, smoking is allowed only during breaks and lunch and only outside of the office or building.
Security
To provide for the safety and security of you, our customers and our facilities, only authorized visitors are allowed in the work areas. To ensure the safety of our guests, we encourage family and friends to check in when visiting you at the workplace.
The following security procedures should always be followed to ensure your safety and the safety of your fellow employees, and to ensure the confidentiality of VCEA’s information. At no time should unauthorized persons be allowed to roam unescorted though VCEA’s office. It is a matter of courtesy to accompany customers and guests to and from the exits and other office to which they may be destined. If strangers are encountered in our office who do not satisfactorily identify themselves or the person with whom they will be meeting, escort them to the front of the office. If they resist, contact your supervisor immediately.
Be aware of persons loitering for no apparent reason in other non-office areas (e.g., in parking areas, walkways, entrances/exits and service areas). Report any suspicious persons or activities to your supervisor. Secure your desk at the end of the day or when called away from your work area for an extended length of time and do not leave valuable and/or personal articles in or around your workstation that may be accessible. Please report any lost facility keys to your supervisor immediately.
Workplace Violence
VCEA recognizes that violence in the workplace is a growing nationwide problem necessitating a firm, careful response by all employers. The costs of workplace violence are great, both in human and financial terms.
VCEA has adopted the following policies to ensure the safety of its employees and to provide guidance on dealing with violence in the workplace. If qualified, you may provide first aid to injured persons. You are required to:
1. Immediately report all indirect and direct threats of violence to a supervisor.
2. Immediately report all suspicious individuals or activities to a supervisor.
3. Never put yourself or others in peril.
4. Immediately call 911 and seek shelter if you hear a violent commotion near your workstation.
5. Cooperate fully with security, law enforcement, and medical personnel who respond to a call for help.
6. Direct all inquiries from the media about violence on VCEA premises to your supervisor or the Executive Officer.
203
VCEA I Last Updated: February 2021 32
The Executive Officer of VCEA will make the sole determination of whether, and to what extent, threats or acts of violence will be acted upon by the agency. In making this determination, we may undertake a case-by-case analysis in order to ascertain whether there is a reasonable basis to believe that workplace violence has occurred. No provision of this policy shall alter the at-will nature of employment at VCEA.
Off-Duty Use of Facilities
You are prohibited from being on agency premises, or making use of agency facilities, while not on duty. You are expressly prohibited from using agency facilities, agency property or agency equipment for personal use.
Parking
You are encouraged to use the parking areas designated for our employees. Remember to lock your car every day and park within the specified areas.
Courtesy and common sense in parking will help eliminate accidents, personal injuries, and damage to your vehicle and to the vehicles of other employees. If you should damage another car while parking or leaving, immediately report the incident, along with the license numbers of both vehicles and any other pertinent information you may have, to your supervisor. VCEA cannot be and is not responsible for any loss, theft or damage to your vehicle or any of its contents. You will be responsible for any parking tickets you receive while driving on agency business whether in an agency vehicle or your own personal vehicle.
Employee Suggestion Program
We encourage you to bring forward your suggestions and good ideas about how our agency can be made a better place to work and our service to customers enhanced. When you see an opportunity for improvement, please talk it over with your supervisors. All suggestions are valued and listened to.
Employee Benefits
Benefits
VCEA has developed and invested in an employee benefit program to supplement your regular wages. VCEA will continue these benefits as agency resources allow; however, we reserve the right to change or eliminate any benefit program at any time (including increasing the employee’s share of the cost).
Our benefit program consists of programs which may include health, dental, and vision coverage, life insurance, paid time off (PTO) and holiday pay. In addition, there are a number of programs available to employees through other sources such as State Disability, Paid Family Leave, Unemployment Insurance, Social Security and Workers’ Compensation. Eligibility to participate in some of these programs is determined by your employee classification and length of continued service with VCEA.
Official Health Plan Documents
The employee handbook contains a number of brief summaries of the benefit programs that the employer provides for eligible employees. The purpose of these summaries is simply to acquaint you with the general provisions of the applicable plans; they do not contain full statements of all of the terms, conditions, and 204
VCEA I Last Updated: February 2021 33
limitations of the plans. If there are any real or apparent conflicts between the brief information in the handbook and the terms, conditions and limitations of the official plan documents, the provisions of the official plan documents will be considered accurate. You are encouraged to review all plan documents carefully to familiarize yourself with all of the provisions of the plans.
Paid Time Off (PTO)
Eligibility
Paid Time Off (PTO) is an all purpose time-off policy for eligible employees to use for the following: vacation; the diagnosis, care, treatment of an existing health condition; preventative care of an employee or family member; for employees who are victims of domestic violence, sexual assault or stalking to seek aid, treatment, or related assistance; illness or injury; and personal business. A family member is defined as a spouse, registered domestic partner (RDP), grandparent, grandchild, sibling, in-law, parent, step-parent, legal guardian, or child (regardless of age or dependency status). Personal business also includes time spent for jury duty, bereavement, and time off to vote. Regular full-time employees are eligible to earn and use PTO as described in this policy.
PTO begins accruing upon your date of hire. Employees may begin using PTO upon your 90th day of employment. At that time, you can request the use of earned PTO including that accrued during the waiting period.
Accrual
Regular, full-time employees accrue 6.67 hours of PTO per pay period (24 pay periods per year) in your first year of eligibility – 160 hours. After your first anniversary, and thereafter, you will receive an additional eight (8) hours per year, which will accrue at an additional rate of .34 hours per pay period. Once you have worked for the agency for ten (10) years, you will not accrue any additional PTO.
The length of eligible service is calculated on the basis of a "benefit year." This is the 12-month period that begins when you start to earn PTO. You will not earn PTO while you are out on an unpaid leave of absence.
Therefore, your benefit year may be extended if you go out on a leave of absence other than a military leave of absence. Military leave has no effect on this calculation. (See individual leave of absence policies for more information.)
Scheduling PTO
PTO can be used in minimum increments of one (1) hour for non-exempt employees. Exempt employees may use PTO in ½ day or 1 full day increments. If you have an unexpected need to be absent from work you should notify your direct supervisor before the scheduled start of your workday, if possible. Your direct supervisor must also be contacted on each additional day of unexpected absence.
To schedule planned PTO, you need to request advance approval from your supervisor. Requests will be reviewed based on a number of factors, including business needs and staffing requirements.
PTO is paid at your base pay rate at the time of absence. It does not include overtime or any special forms of compensation such as incentives, commissions, bonuses, or shift differentials. 205
VCEA I Last Updated: February 2021 34
PTO will be used to supplement any payments that you are eligible to receive from state disability insurance, or workers' compensation. The combination of any such disability payments and PTO cannot exceed your normal weekly earnings.
PTO Payout
The Executive Officer may, in his or her sole discretion, authorize a cash payout of up to 60 hours of PTO annually to an employee who meets the following criteria: (a) the employee used an equal or greater amount of hours in the preceding 12 months; and (b) the employee will maintain a minimum PTO balance of 120 hours after the payout. Such requests will be granted at the sole discretion of the Executive Officer in the interest of work program effectiveness and subject to VCEA’s fiscal capability.
PTO Caps
Employee can accumulate PTO up to a balance of twice the annual PTO for which they are entitled. Once that limit is reached, employee will no longer accrue PTO until time is taken, and the employee’s accrual falls below the cap.
Upon termination of employment, you will be paid for unused PTO that has been earned through your last day of work.
Sick Leave
Employees who are not eligible for the PTO policy as outlined above will earn sick leave in accordance with this policy.
Sick leave is a form of insurance that is accumulated in order to provide a cushion for incapacitation due to illness. It is to be used only for the diagnosis, care, treatment of an existing health condition or preventative care of an employee, family member or for employees who are victims of domestic violence, sexual assault or stalking to seek aid, treatment, or related assistance. A family member is defined as a spouse, registered domestic partner (RDP), grandparent, grandchild, sibling, in-law, parent, step-parent, legal guardian, or child (regardless of age or dependency status).
On the employee’s hire date, eligible employees will receive 24 hours of paid sick leave. At the end of each year of employment (i.e., on the employee’s anniversary date), unused sick leave will be removed from the employee’s leave bank. All eligible employees will be credited with 24 hours of paid sick leave at the commencement of the next employment year. Any unused sick leave is not paid out on separation of employment.
Employees may begin using sick leave upon their 90th day of employment.
When wishing to use sick leave, you should personally call your supervisor prior to the start of your shift on the day you are scheduled to work. Sick leave is not to be taken in less than two (2) hour increments and does not accrue when you are out on sick leave.
A paid absence is not counted as a basis for computing overtime. 206
VCEA I Last Updated: February 2021 35
If you are receiving State Disability Insurance (SDI) or Workers’ Compensation payments, then you can integrate sick pay (meaning that you can supplement your wage replacement benefits with a portion of your sick leave to equal your full wage). Under no circumstances can you receive more than your customary wage.
Sick leave is not granted for the purpose of accompanying or taking pets to procure medical attention.
Unused sick leave has no cash value and will not be paid at termination.
Holidays
We observe the following paid holidays for full-time employees:
New Year’s Day
Martin Luther King Jr.’s Birthday
President’s Day
Memorial Day
Independence Day
Labor Day
Veterans Day
Thanksgiving
Day after Thanksgiving
Christmas Day
Eligibility for holiday pay begins upon date of hire. You must also be regularly scheduled to work on the day on which the holiday is observed, and must work your regularly scheduled working days immediately preceding and immediately following the holiday, unless an absence on either day is approved in advance by your supervisor.
When a holiday falls on a Saturday or Sunday, it is usually observed on the preceding Friday or the following Monday. Holiday observance will be announced in advance.
If you are on a paid absence due to PTO when a holiday occurs, you will receive holiday pay. Non-exempt employees who work on holidays, due to customer job requirements, will receive regular earned wages. Part-time employees and interns are not eligible for holiday pay.
Insurance Benefits
Medical, Dental and Vision Insurance: We provide access to medical, dental & vision insurance plans for eligible employees and their dependents. You may be required to provide adequate proof of the dependent relationship in order to add the dependents to VCEA’s insurance policies. Typically proof of the relationship may be established through a copy of a birth certificate, adoption documents, marriage license, or certificate of registered domestic partnership. We cannot guarantee your domestic partner relationship will be kept confidential.
207
VCEA I Last Updated: February 2021 36
Full-time employees and part-time employees who are regularly scheduled to work a minimum of 30 hours per week are eligible for VCEA’s medical, dental, and vision insurance coverage. Each employee becomes eligible on the first of the month after the employee has started employment with VCEA. VCEA will contribute up to $1,826 per month per employee towards VCEA’s medical, dental and vision insurance for a full-time employee and dependents coverage. VCEA will contribute a prorated amount for part-time employees based on the average hours worked (for example, if the part-time employee is regularly scheduled to work 30 hours per week, VCEA’s contribution toward the cost of VCEA’s medical, dental and vision insurance coverage for the part time employee and his/her eligible dependents would be prorated to 75% of the full-time equivalent, i.e., $1,365.50).
The employee is responsible for any premiums due for VCEA coverage(s) that are in excess of the VCEA contribution amount. Deductions from the employee’s paycheck will be made to cover this cost. Information describing medical, dental and vision insurance benefits will be given to you when you become eligible to participate in the program. Eligible employees who elect not to receive medical insurance coverage from VCEA must provide proof of adequate medical coverage from an alternate source within 30 days of becoming eligible through VCEA for the benefit. Such election will be effective as of the employee’s eligibility date and will remain in effect until the start of the next open enrollment period. Employees who have declined VCEA medical insurance coverage and want to continue to decline coverage must provide proof of adequate medical coverage once per year, no later than 30 days prior to VCEA’s open enrollment period. Full time employees who decline to accept VCEA medical, dental, and vision insurance benefits shall receive a payment of $550 per month in lieu of coverage; part-time employees who are eligible for VCEA medical, dental and vision insurance and decline to accept VCEA medical, dental, and vision insurance shall receive a prorated payout based on the employee’s regularly scheduled hours (i.e., an employee who is regularly scheduled to work 30 hours per week will receive 75% of the full-time equivalent, or $412.5.)
During any leave of absence such as personal leave, Workers’ Compensation leave or other disability leave, VCEA-provided health benefits will continue through the end of the month during which leave commenced. At that point, the employee will be provided with the option to continue coverage at the employee’s own expense pursuant to Cal-COBRA. For the duration of any pregnancy disability leave of absence, health and life insurance benefits will be continued for the duration of your approved pregnancy disability leave as required by applicable law.
Please direct any questions you have regarding your medical, dental and/or vision insurance to the Executive Officer.
Retirement Plan: We provide a 401(A) and 457B defined contribution retirement plans for eligible employees in order to assist in planning for your retirement. Eligible employees may enroll following 6 months of employment. Retirement plan participants can participate in loan programs permitted under the plan guidelines. For more information regarding eligibility, contributions, benefits and tax status, contact the Executive Officer. All eligible participants will receive a summary plan description.
Disability Insurance: VCEA furnishes private long-term disability policies. For more information, contact the Executive Officer.
208
VCEA I Last Updated: February 2021 37
Life and Accidental Death and Dismemberment Insurance: If you are a regular full time employee of VCEA, you will be provided our group life insurance coverage paid for by the organization. This insurance is payable in the event of your death, in accordance with the policy, while you are insured. You may change your beneficiary whenever you wish by submitting the appropriate documents to the Human Resources Consultant. Refer to the literature provided by our insurance agency for details on your life insurance coverage.
Paid Family Leave (PFL) Insurance: All employees who take time off to care for a seriously ill family member (child, parent, grandparent, grandchildren, in-laws, spouse or registered domestic partner) or bond with a new child may be eligible to receive replacement wages for up to six weeks during any 12-month period, under California’s Paid Family Leave program. This program is funded with employee contributions through the State Disability Insurance (SDI) Program. Such contributions are deducted from each employee’s paycheck. Even though employees may be eligible to receive Paid Family Leave insurance benefits, a leave of absence must still be requested and approved as defined in our leave policies. Please understand that this leave does not mandate any guarantee that your job will be available when you are ready to return.
State Disability Insurance: If you are unable to work due to a non-work related medical condition or injury you may be entitled to State Disability Insurance (SDI). SDI benefits are paid by the state and are financed from mandatory payroll tax deductions from all employees’ wages. Questions regarding SDI benefits should be directed to the Executive Officer or the state’s Employment Development Department.
Unemployment Compensation: We contribute each year to the California Unemployment Insurance Fund on behalf of our employees.
Social Security: Social Security is an important part of every employee's retirement benefit. We pay a matching contribution to each employee's Social Security taxes.
Workers' Compensation: VCEA purchases a workers’ compensation insurance policy to protect you while you are employed by us. The policy covers you in case of occupational injury or illness. It is your responsibility to notify a member of management immediately if injured. Please refer to the Workers’ Compensation policy for additional information.
We provide workers' compensation insurance for our employees as required by state law. The insurance provides important protection for employees who suffer a work-related injury. We encourage you to report all workplace injuries immediately and to take advantage of the benefits provided by our workers' compensation insurance if you are injured on the job.
Workers' compensation insurance provides important protection for employees who suffer an injury at work.
Unfortunately, we understand that some employees are encouraged to file fraudulent workers' compensation claims. For your own protection, you should know that the California Insurance Frauds Protection Act provides that it is unlawful for any person to:
"Make or cause to be made any knowingly false or fraudulent material statement or material representation for the purpose of obtaining . . . compensation . . . and shall be punished by 209
VCEA I Last Updated: February 2021 38
imprisonment in county jail for one year, or in the state prison for two, three or five years, or by a fine not exceeding Fifty Thousand Dollars ($50,000.00) . . . or by both imprisonment and fine." Our policy is to investigate all questionable workers' compensation claims. If they appear to be fraudulent, they are referred to the Bureau of Fraudulent Claims and the District Attorney's office.
Section 125 (Cafeteria Plan): Through the flexible spending account or the health savings account, you may designate an annual dollar amount of your before-tax income to pay for certain eligible expenses. Particular care should be taken to assure that the funds required in the flexible spending account are not over estimated as unused funds cannot be returned to the participant at the end of the plan year. Please refer to the booklets for information about the program. If you need additional information or change forms, please speak with the Executive Officer.
Domestic Partners
VCEA believes that basic medical/dental/vision coverage should be available to employees and their dependents. To recognize non-traditional family arrangements and to demonstrate our commitment to our community of employees and their families, VCEA has instituted a Domestic Partners Policy. This policy gives you the opportunity to cover a long-term, significant same sex partner under our benefits plans, as well as opposite sex partners for employees over 62 years of age. VCEA wishes to make it clear that it cannot guarantee confidentiality of the relationship once a domestic partner is covered under our policy. See the Executive Officer for more information.
Cal-COBRA
The California Continuation Benefits Replacement Act (Cal-COBRA) gives qualified employees and their dependents the opportunity to continue health insurance coverage under VCEA’s health plan when a “qualifying event” would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee’s hours or a leave of absence; an employee’s divorce or legal separation; and a dependent child no longer meeting eligibility requirements.
Under Cal-COBRA, you or the beneficiary pays the full cost of coverage at VCEA’s group rates. In addition, you or the beneficiary may be required to pay an administration fee. Our plan administrator will provide you with a written notice describing rights granted under Cal-COBRA when you become eligible for coverage under our plan. The notice contains important information about your rights and obligations.
Recreational Activities and Programs
VCEA or its insurer will not be liable for payment of workers’ compensation benefits for any injury that arises out of your voluntary participation in any off-duty recreational, social, or athletic activity that is not part of your work related duties.
Leaves of Absence
Occasionally, for medical, personal, or other reasons, you may need to be temporarily released from the duties of your job with VCEA. It is the policy of VCEA to allow its eligible employees to apply for and be considered for certain specific leaves of absence.
210
VCEA I Last Updated: February 2021 39
All requests for leaves of absence shall be submitted in writing to your supervisor. Each request shall provide sufficient detail such as the reason for the leave, the expected duration of the leave, and the relationship of family members, if applicable. When you become aware of your need for leave, requests should be provided at least 30 days in advance. If your need for leave is not foreseeable, you should follow VCEA’s customary notice and procedural requirements for requesting leave. Failure to return to work as scheduled from an approved leave of absence or to inform your supervisor of an acceptable reason for not returning as scheduled will be considered a voluntary resignation of employment. While on a leave of absence you may not obtain other employment or apply for unemployment insurance. If either of these instances occurs, you may be viewed as having voluntarily resigned from VCEA.
You will not accrue PTO while you are on an unpaid leave of absence. There are several types of leaves for which you may be eligible.
Medical Leaves of Absence
A medical leave of absence may be granted for non-work related temporary medical disabilities (other than pregnancy, childbirth and related medical conditions) until the end of the month in which the leave began with a doctor’s written certificate of disability (unless leave of a longer duration is required by law). Requests for leave should be made in writing as far in advance as possible, but, requests should be provided at least 30 days in advance. If your need for leave is not foreseeable, you should follow VCEA’s customary notice and procedural requirements for requesting leave. If you are granted a medical leave, you are required to use any accrued sick pay. You also may use any PTO previously accrued.
A medical leave begins on the first day your doctor certifies that you are unable to work and ends when your doctor certifies that you are able to return to work. Your supervisor will supply you with a form for your doctor to complete, showing the date you were disabled and the estimated date you will be able to return to work.
Upon your return, you must present a doctor’s certificate showing fitness to return to work. If you need a medical-related leave longer than VCEA can, consistent with business necessity and reasonable accommodation, approve, you will be advised.
For the duration of any leave of absence, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued until the last day of the month in which the leave begins. For the duration of a pregnancy disability leave, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued for the duration of your pregnancy disability leave. During this time, you will be required to contribute your portion of the premium on the same basis as you would have been required during your normal working relationship, including payment of any premium for the dependent coverage you have elected.
If you wish to continue these benefits you may do so by electing to continue the benefit through the CAL-COBRA provisions, and by paying the applicable premiums.
You will not accrue PTO while you are on an unpaid medical leave of absence. 211
VCEA I Last Updated: February 2021 40
If returning from a non-work related medical leave, you will be offered the same position held at the time of leaving, if available. However, we cannot guarantee that your job or a similar job will be available upon your return. If VCEA is unable to provide a job for you at the end of your leave, we will end your employment, but you will be eligible to apply for any opening that may arise for which you are qualified.
Bereavement Leave
VCEA provides regular full-time and regular part-time employees up to three (3) days’ paid bereavement leave in the event of a death in your immediate family. For purposes of this policy, “immediate family” includes your spouse, parent, child, sibling; your spouse’s parent, child, or sibling; your long- time companion or domestic partner; and your grandparents or grandchildren. If you need to take time off due to the death of an immediate family member you should contact your supervisor. Your supervisor may approve additional unpaid time off.
Bone Marrow and Organ Donation Leave
Employees who are donating an organ to another person may take a leave of absence not exceeding 30 business days (and which may be taken in one or more periods) in any one-year. Employees who are donating their bone marrow to another person may take a leave of absence not exceeding 5 business days (and which may be taken in one or more periods) in any one year.
Requests for leave should be made in writing as far in advance as possible. You must provide a written medical certification from your health care provider to VCEA that shows that you are a bone marrow or organ donor and that there is a medical necessity for the donation.
Bone Marrow and Organ Donation leave is a paid leave, however you are required to use up to 5 days of accrued but unused sick or PTO leave for bone marrow donation, and up to 2 weeks of accrued but unused sick or PTO leave for organ donation.
For the duration of a Bone Marrow or Organ Donation leave of absence, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued until the last day of the month in which the leave begins. During this time, you will be required to contribute your portion of the premium on the same basis as you would have been required during your normal working relationship, including payment of any premium for the dependent coverage you have elected.
When you are ready to return to work after a Bone Marrow or Organ Donation leave, you must provide certification from your medical care provider that you are able to safely perform all of the essential functions of your position with or without reasonable accommodation. Except as otherwise allowed by law, you are entitled, upon return from leave, to be reinstated in the position you held before the Bone Marrow or Organ Donation leave, or to be placed in a comparable position with comparable benefits, pay, and terms and conditions of employment.
Civil Air Patrol Leave
Employees who volunteer for the California Wing of the Civil Air Patrol are allowed up to ten days of unpaid leave each year. This leave covers employees who are needed to respond to an emergency operational mission 212
VCEA I Last Updated: February 2021 41
who have been employed by VCEA for at least 90 days immediately preceding the requested leave. VCEA reserves the right to verify the need for the leave with the Air Patrol.
Domestic Violence and Sexual Assault Victim Leave
VCEA takes threats and actions of domestic abuse and sexual assault against our employees very seriously, and wants employees to feel free to obtain services to keep themselves and their dependents safe.
If at any time you need to be absent from work because you have been a victim of domestic violence or sexual assault, and you need to take time off to ensure your safety, seek medical treatment, or receive counseling as a result of domestic violence or sexual assault, please let your supervisor or the Executive Officer know immediately. Your privacy will be protected to the greatest extent possible. You may use accrued PTO or sick leave in lieu of unpaid time off for these purposes.
Jury Duty or Witness Leave
You may want to fulfill your civic responsibilities by serving on a jury or as a witness as required by law. You may request unpaid leave for the length of absence, unless the leave of absence is taken as PTO. We will comply with federal and state requirements on pay for exempt employees. You may be requested to provide written verification from the court clerk of having served.
You must show the jury duty or witness summons to your supervisor as soon as possible so that arrangements can be made to cover your absence. Of course, you are expected to report for work whenever the court schedule permits. If you are called for jury duty during a particularly busy time, we may ask you to request the court to postpone the mandatory jury duty to a more convenient time for us. You retain all fees paid for appearing, plus transportation reimbursements received, if any.
Military Leave
If you wish to serve in the military and take military leave you should contact the Executive Officer for information about your rights before and after such leave. You are entitled to reinstatement upon completion of military service provided you return or apply for reinstatement within the time allowed by law.
Pregnancy Disability Leave
Eligibility and Terms of Leave
Female employees are entitled to an unpaid Pregnancy Disability Leave (PDL) during the time they are disabled due to pregnancy, childbirth, or related medical conditions. This leave will be for the period of disability, up to four months or 17 1/3 workweeks. You are “disabled by pregnancy” if you are unable because of pregnancy to work at all, are unable to perform the essential functions of your job, or to perform these functions without undue risk to successful completion of your pregnancy, or to other persons.
Leave may be taken intermittently or on a reduced work schedule when medically advisable, as determined by your medical care provider. Medical certification is required, and the length of Pregnancy Disability Leave will depend on the medical necessity for the leave. If you need intermittent leave or leave on a reduced schedule, VCEA may require you to transfer, during the period of the intermittent or reduced schedule leave, to an 213
VCEA I Last Updated: February 2021 42
available alternative position for which you are qualified and which better accommodates your recurring periods of leave. Transfer to an alternative position may include altering an existing job to better accommodate your need for intermittent leave or a reduced work schedule.
Applying For Leave
If possible, you should give at least 30 days’ notice requesting a pregnancy-related leave. This notice must provide and include the expected date on which the leave will begin, written certification from your medical care provider stating the anticipated delivery date and the duration of the leave.
Return to Work
Before returning to work, you must provide a release from your medical care provider certifying that you are able to safely perform all of the essential functions of your position with or without reasonable accommodation.
VCEA will reinstate you to your position unless:
1. Your job has ceased to exist for legitimate business reasons;
2. Your job could not be kept open or filled by a temporary employee without substantially undermining VCEA’s ability to operate safely and efficiently;
3. You have directly or indirectly indicated your intention not to return;
4. You are no longer able to perform the essential functions of the job with or without reasonable accommodation;
5. You have exceeded the length of the approved leave; or
6. You are no longer qualified for the job.
If VCEA cannot reinstate you to the position you held before the pregnancy disability leave began, VCEA will offer you a comparable position, provided that a comparable position exists and is available, and provided that filling the available position would not substantially undermine VCEA’s ability to operate safely and efficiently.
Integration With Other Benefits
A pregnancy disability leave is unpaid, but you are required to use your accrued sick leave during the leave. In addition, you may elect to use accrued PTO during the leave. Sick leave and PTO will supplement any State Disability Insurance benefits. VCEA will maintain group medical benefits during a pregnancy disability leave as required by law. No additional PTO, sick leave or holiday pay will accrue during the leave (except during the time period you are using sick leave or PTO). You may also, however, be eligible for short term disability benefits.
Continuation of Medical Benefits
For the duration of your PDL leave of absence, health and life insurance benefits ordinarily provided by VCEA, and for which you are otherwise eligible, will be continued for the duration of your pregnancy disability leave.
During this time, you will be required to contribute your portion of the premium on the same basis as you would have been required during your normal working relationship, including payment of any premium for the dependent coverage you have elected. If you fail to return to work at the conclusion of PDL leave and wish to continue these benefits, you may do so by electing to continue the benefit through the Cal-COBRA provisions, and by paying the applicable premiums.
214
VCEA I Last Updated: February 2021 43
School Appearance Leave
If you are the parent or guardian of a child who has been suspended from school and you receive a notice from your child’s school requesting that you attend a portion of a school day in the child’s classroom, you may take unpaid time to appear at the school, unless you use accrued PTO. Before your planned absence, you must give reasonable notice to your supervisor that you have been requested to appear by your child’s school.
Time Off for Victims of a Violent or Serious Crime
Under certain circumstances, employees who are victims of serious crimes may take time off work to participate in judicial proceedings. Qualified family members of such crime victims may also be eligible to take time off from work to participate in judicial proceedings. The law defines a serious crime to include violent or serious felonies, such as felonies involving theft or embezzlement, crimes involving vehicular manslaughter while intoxicated, child abuse, physical abuse of an elder or dependent adult, stalking, solicitation for murder, hit-and-run causing death or injury, driving under the influence causing injury, and sexual assault. When possible, you must provide us with advance notice of the need for the time off. Your privacy will be protected to the greatest extent possible. Time away from work for non-exempt employees will be without pay, unless you wish to use your accrued PTO or sick leave to cover the period of absence.
Time Off To Vote
If you do not have sufficient time outside of working hours to vote in a statewide election, you may, without loss of pay, take off up to two hours of working time to vote. Such time must be at the beginning or end of the regular working shift, whichever allows the most free time for voting and the least time off from working, unless otherwise mutually agreed. You must notify us at least two working days in advance to arrange a voting time.
Volunteer Emergency Duty Leave
VCEA will allow unpaid time off to employees who perform emergency duty as a volunteer firefighter, reserve peace officer, emergency rescue personnel, an officer, employee, or member of a disaster medical response entity sponsored or requested by the state. If you are a volunteer firefighter, or perform other emergency personnel duties, please alert your supervisor so that he or she may be aware of the fact that you may have to take time off for emergency duty. When possible, you must provide us with advance notice of the need for the time off. Time away from work will be without pay, unless you wish to use your accrued PTO or sick leave to cover the period of absence.
Workers’ Compensation
We, in accordance with state law, provide insurance coverage for employees in case of a work related injury. To ensure that you receive any workers’ compensation benefits to which you may be entitled, you will need to:
1. Immediately report any work-related injury to your supervisor.
2. Seek medical treatment and follow-up care if required.
3. Complete a written Employee’s Claim Form (DWC Form 1) and return it to your supervisor.
Provide us with certification from your health care provider regarding the need for workers’ compensation disability leave and your ability to return to work from the leave. 215
VCEA I Last Updated: February 2021 44
Return to Work Policy
VCEA is committed to returning injured employees to modified or alternative work as soon after a work related injury as possible. Temporarily modifying your job or providing you with an alternative position will do this. Your medical condition along with any limitations or restrictions given by the attending physician will be considered as a priority when identifying the modified/alternative position.
The program is intended to provide our employees with an opportunity to continue as valuable members of our team while recovering from a work related injury. We want to minimize any adverse effects of an ongoing disability on our employees. This program is intended to promote speedy recovery, while keeping the employees’ work patterns and income consistent. At the same time, we benefit from having our employees providing a service and contributing to the overall productivity of our business. VCEA retains discretion to decide whether to provide modified duty.
Receipt and Acknowledgment of VCEA Employee Handbook
I have received my copy of VCEA’s employee handbook. I understand and agree that it is my responsibility to read and familiarize myself with the policies and procedures contained in the handbook.
At-Will Employment
I further understand that my employment is at-will, and neither VCEA nor I have entered into a contract regarding the duration of my employment. I am free to terminate my employment with VCEA at any time, with or without cause. Likewise, VCEA has the right to terminate my employment with or without cause, at the discretion of VCEA. No employee of VCEA can enter into an employment contract for a specified period of time, or make any agreement contrary to this policy without the written approval from the Executive Officer.
Future Revisions
We reserve the right to revise, modify, delete or add to any and all policies, procedures, work rules or benefits stated in this employee handbook or in any other document, except for the policy of at-will employment. Any written changes to this employee handbook will be distributed to all employees so that you will be aware of the new policies or procedures. No oral statements or representations can in any way change or alter the provisions of this employee handbook.
Receipt and Acknowledgement of VCEA Handouts
Illness and Injury Prevention Plan
I acknowledge that I have read and understand the VCEA’s Illness & Injury Prevention Plan and that I agree to abide by these policies.
Drug and Alcohol Abuse Policy
I certify that I have read VCEA’s Drug and Alcohol Abuse Policy and agree to abide fully by its terms. I understand that as a condition of my employment, I may be subjected to drug testing and that my privacy rights are thereby limited. I also understand that I must notify VCEA of any conviction for a drug violation that occurs within five 216
VCEA I Last Updated: February 2021 45
days after such a conviction. I understand that any violation of the policy may result in serious disciplinary action, including immediate termination.
Employee’s Printed Name____________________________ Position_____________________________ Employee’s Signature________________________________ Date________________________________ 217
VCEA I Last Updated: February 2021 46
Receipt and Acknowledgement of VCEA Handouts
Sexual Harassment Prevention Handout
I acknowledge that I have read and understand the enclosed pamphlet on sexual harassment prevention in the workplace and reporting procedures in the event that harassment occurs.
State Disability Insurance, Paid Family Leave and Unemployment Handouts I acknowledge that I have received the enclosed pamphlets on state disability insurance, paid family leave and unemployment insurance as provided by the Employment Development Department.
Workers’ Compensation Handout
I acknowledge that I have received the enclosed pamphlet on workers’ compensation benefits as provided by the California Chamber of Commerce.
Employee’s Printed Name____________________________ Position_____________________________ Employee’s Signature________________________________ Date________________________________ 218
1 VALLEY CLEAN ENERGY ALLIANCE
RESOLUTION NO. 2022-___
RESOLUTION OF THE BOARD OF DIRECTORS OF THE VALLEY CLEAN ENERGY ALLIANCE
APPROVING UPDATES TO THE EMPLOYEE HANDBOOK
WHEREAS, on January 18, 2018, the Valley Clean Energy Employee Handbook was adopted; WHEREAS, on January 23, 2019, the Board approved updates to the employment regulations and edits to payroll operational procedures to the Employee Handbook; WHEREAS, on July 11, 2019, the Board approved updates to the Employee Handbook incorporating new laws and personnel requirements;
WHEREAS, on February 13, 2020 the Board approved updates to the Employee Handbook to reflect benefits eligibility date; and,
WHEREAS, on February 11, 2021, the Board approved updates to the Employee Handbook to adjust medical contributions amounts.
NOW, THEREFORE, the Board of Directors of the Valley Clean Energy Alliance resolves as follows:
1. Adopt changes to the Employee Handbook to update the General Manager to Executive Officer, working schedules for flexible work schedules and telecommuting agreements, discretionary pay for performance merit increases and performance bonuses, compensation equity adjustments relating to consumer price index and salary studies, authority for the Executive Officer to approve employee requested paid time off (PTO) payout, annual adjustment to medical contributions to maintain parity to costs, and the addition of a loan program offered by our retirement plan, as detailed in the attached April 2022 redline employee handbook.
PASSED, APPROVED, AND ADOPTED, at a regular meeting of the Valley Clean Energy Alliance, held on the ___ day of _____________ 2022, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
___________________________
Jesse Loren , VCE Chair
______________________________
Alisa M. Lembke, VCE Board Secretary
Attachment: Employee Handbook (April 2022) Redline
219
1 VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 14
TO: Board of Directors
FROM: Mitch Sears, Executive Director
Edward Burnham, Director of Finance and Operations
Alisa Lembke, VCE Board Clerk/Administrative Analyst
SUBJECT: Community Advisory Committee (At-Large Members) Selection Update DATE: April 14, 2021
RECOMMENDATION
1. Direct the Board Chair and Vice Chair to review and provide recommendations to the full Board for appointments to the two vacant Community Advisory Committee At-Large seats.
BACKGROUND
Based on Board Item 20 on September 9, 2021, the Board adopted a revised Community Advisory Committee (CAC) structure with eleven total members: eight jurisdictional members (two per jurisdiction) and three additional seats for At-large members intended to fill specific subject matter expertise/experience areas. As part of the newly adopted CAC structure, the Board adopted Item 15 on October 14, 2021, which included nonbinding recruitment/selection guidlines for recruiting and considering CAC applicants for At-Large seats. The guidelines, as previously presented in October, are as follows:
Recruitment/Selection Guidelines – Adopted October 2021 Ideal candidates for At-Large CAC seats possess subject matter expertise/experience related to the goals contained in the VCE Strategic Plan, including:
• Energy Sector (e.g., procurement)
• Community engagement
• Environmental justice
• Agricultural Sector
• Grid reliability and sustainability
• Decarbonization
Candidates representing historically underrepresented communities in VCE’s service territory and/or underrepresented in the Energy Sector professions are encouraged to apply for the CAC in general and specifically the At-Large CAC seats.
220
2 Professional Sectors that tend to intersect with VCE activities include but are not limited to those listed below. Ideal candidates for At-Large CAC seats possess professional experience in one or more of the following sectors:
• Legal (specialties in energy sector/regulatory)
• Financial (banking, accounting, auditing)
• Energy (procurement, regulatory, planning, engineering) • Agricultural
• Community Engagement/Outreach/Customer Service (community organizing, legislative, public relations, marketing)
• Research (energy sector, decarbonization)
Selection Process for At-Large CAC Seats
Following the recruitment process, a subcommittee of Board members considers eligible candidate(s) based on professional and subject matter/experience selection guidelines above. Though no specific weight will be given to a particular professional or experience factor, with the appointment of At-Large CAC members, the Board should seek a reasonable balance to allow the CAC to assess policy options and provide informed recommendations.
ANALYSIS
VCE has been actively recruiting additional members for the CAC At-Large seat following the Board meeting on October 14, 2021. VCE has received a total of four applications for the two vacancies. Staff recommends that VCE proceed with the selection process as follows:
Proposed At-Large Selection Schedule
Estimated Date Scheduled Activity
4/14/2022 Board Meeting - Approval of Selection Schedule 4/28/2022 Completion of Application Review and Candidate Discussions 5/12/2022 Board Meeting - Appointment of vacant CAC At-Large seats At its regular Monthly agenda review meeting on April 6th, the Board Subcommittee directed the Board Chair and Vice Chair to review the candidate applications and provide a recommendation to the full Board at the May meeting.
CONCLUSION
As described above, Staff recommends closing the recruitment and proceeding with the selection process leading to consideration of appointments at the May 12, 2022, Board meeting. 221
Item 16
VALLEY CLEAN ENERGY ALLIANCE
Staff Report – Item 16
____________________________________________________________________________________ TO: Board of Directors
FROM: Gordon Samuel, Assistant General Manager & Director of Power Services SUBJECT: CC Power Goal Line Energy Storage Project
DATE: April 14, 2022
Recommendation
1) Authorize via Resolution the Executive Officer to execute on behalf of Valley Clean Energy as a member of CC Power the following agreements and any necessary ancillary documents for the Goal Line long duration storage project with a delivery term of 15 years starting at the commercial operation date on or about June 1, 2025:
a. Project Participation Share Agreement between Valley Clean Energy, California Community Power and other participating CCAs.
b. Energy Storage Service Agreement (ESSA) - Buyer Liability Pass Through Agreement (BLPTA) between Valley Clean Energy, California Community Power and Goal Line BESS 1, LLC.
Background
Joint CCA Request for Information and Offers
In June 2020, Valley Clean Energy along with 10 other CCAs issued a request for information (RFI) from long duration storage (LDS) technology providers and project developers (LDS >=8hrs). The information collected through the RFI was used to develop a request for offers (RFO). This RFO was issued on October 15, 2020, and bids were due on December 1, 2020.
The joint CCAs received a robust response with 51 entities submitting offers representing over 9,000 MW. In collaboration with staff from the participating CCAs, these projects were evaluated through a two round evaluation process. Projects were scored based on value to the CCAs, locational value, development status, project viability and ability to meet resource adequacy requirements, technology viability, project team experience, compliance with workforce policy and environmental impact. The top 17 projects were moved to a second round of evaluation. All 17 projects were sent a follow-up questionnaire on labor, environmental and developer experience. Developers representing non-Li-Ion projects (such as: Emerging technologies defined as non-Li-Ion including 2nd life EV, Gravity, Hydrogen, Liquid Air, Compressed Air, Iron Redox Flow, and Pumped Storage Hydro) were interviewed about their project and technology as well.
Formation of CC Power
In 2020, a group of CCAs came together to discuss forming a joint powers authority (JPA) called California Community Power (CC Power) to leverage their combined buying power to provide cost effective joint services, programs, and procurement of energy resources and products. In February 2021, Valley Clean Energy’s Board voted for VCE to become a member of CC Power (topic was 222 2 presented to the CAC in January 2021). The other CCAs that are members of CC Power include MCE, 3CE, SVCE, SJCE, RCEA, VCE, SCP, EBCE, and CPSF. Once CC Power was formed, CC Power as an organization took over the LDS RFO work that had been underway.
CPUC Mid-Term Reliability Procurement Mandate
On June 24, 2021, the California Public Utilities Commission (CPUC) adopted D.21-06-035. This decision is commonly known as the mid-term reliability (MTR) procurement mandate. It directs load serving entities (LSEs) to collectively procure 11,500 MW of new resources between 2023 to 2026 to meet mid-term grid reliability needs. The requirement is measured as net qualifying capacity (NQC) rather than nameplate capacity. The CPUC issued a report identifying what percent of a technology’s nameplate capacity would count toward this requirement. This means that each LSE’s nameplate capacity is higher than the requirement identified in the decision. The decision requires that contracts have a term of at least 10 years and that resources be zero-emission or eligible under the California renewable portfolio standard (RPS).
Procurement Category 2023 2024 2025 2026 Total
Zero-emissions
generation, generation
paired with storage, or
demand response
resources
- - 2,500 - 2,500
Firm zero-emitting
resources
- - - 1,000 1,000
Long-duration storage
resources
- - - 1,000 1,000
Remaining New Capacity
Required
- - 7,000
Total Annual Net
Qualifying Capacity (NQC)
Requirements
2,000 6,000 1,500 2,000 11,500
One of the categories identified in the decision was long duration energy storage. Once this decision was issued, the CCAs focused the RFO negotiations to ensure that the identified project and contract terms would allow the project to count toward each of the CCAs obligations under this decision.
The requirements were allocated to each LSE based on load share. Under the decision, VCE was allocated a requirement for 4 MW of LDS NQC, which is approximately equivalent to 5.1 MW of nameplate capacity.
Shortlist and Negotiations
Staff conducted an extensive analysis of projects submitted through the LDS RFO to identify a shortlist of projects. The Tumbleweed (approved by the VCE Board in February 2022) and the Goal Line projects were determined to be in the top tier of projects that would provide the most value to the CCAs. This shortlist was identified in June 2021 and at that time CC Power entered exclusivity with shortlisted projects and began negotiations.
223
3 CC Power conducted a solicitation process to identify counsel and a key negotiator to represent CC Power in its negotiations with counterparties identified through the LDS RFO process. CC Power retained Keyes and Fox and Gridwell Consulting to conduct the negotiations.
Representatives from each of the participating CCAs met with the CC Power General Manager and the negotiating team on a weekly basis to receive updates on negotiating status and provide input to the negotiating process.
Overview of Project
Project Name Goal Line BESS 1, LLC
Technology Li-Ion Storage – 8 hr discharge duration
Storage Capacity 50 MW / 400 MWh
Commercial Operation Date 6/1/2025, 15 yrs
Developer Onward
Location Escondido, CA in San Diego County
The Goal Line project is a 50 MW / 400 MWh lithium-ion battery storage facility located near Escondido, CA in San Diego County. The Commercial Operation Date is June 1, 2025. VCE’s share of this project is 2.25 MW / 18 MWh.
Goal Line is in process of achieving an executed interconnection agreement with the California Independent System Operator (CAISO) for Full Capacity Deliverability Status (FCDS), meaning it will provide resource adequacy attributes in addition to energy and ancillary service benefits. The project will interconnect to one of San Diego Gas & Electric’s substations.
Under the contract, CC Power will pay for the use of the storage project at a fixed-price rate per kW-month, with no escalation, for the full term of the contract (15 years). CC Power is entitled to all product attributes from the facility, including energy arbitrage, ancillary services, and resource adequacy.
Developer
The project is being developed by Onward Energy an independent power generator that owns and operates 43 projects in 16 states across North America including solar, wind, and methane gas electric generation plants. In California, Onward has developed over 2,300 MW of renewable and methane gas projects that are in operation today. Onward currently has 200 MW of battery storage in development in California.
Workforce Requirements
Consistent with the CC Power Board direction for enhanced contracting conditions, the developer will construct the project under a project labor agreement, thus assuring payment of prevailing wages and use of apprenticeship programs. The project will also adhere to CC Power environmental and environmental justice conditions.
224
4 Participating CCAs
Six of the CC Power CCAs are participating in this contract. The CCAs and their shares of the project are identified in the table below. The project’s capacity was allocated to the CCAs based on their obligation under the CPUC MTR procurement mandate.
CCA
Entitlement
Share %
Expected
Entitlement
Share MW
CPSF 21.50% 10.75
RCEA 4.00% 2.00
SJCE 24.22% 12.11
SVCE 28.42% 14.21
SCPA 17.36% 8.68
VCE 4.50% 2.25
Total 100% 50
Below is a table identifying how VCE is planning to satisfy the MTR mandate for long duration storage.
MTR
Requirement
NQC MW
MTR
Obligation
NQC MW
Tumbleweed
Entitlement
Nameplate MW
Remaining
Need NQC
MW
Goal Line
Entitlement
Nameplate
MW
Net Open
Position
+Surplus/(-)
Deficit NQC MW
4.0 5.1 2.86 2.25 2.25 0
Contract Structure
VCE will execute the following agreements:
• Project Participation Share Agreement (PPSA): This agreement will be executed by CC Power and each of the participating CCAs. This agreement conveys the project benefits (energy arbitrage, resource adequacy, ancillary services) from CC Power to each of the CCAs. It also details payment timelines from each CCA to CC Power and covers terms and procedures if a CCA does not make payments when due and if a CCA needs to be removed from the contract for non-performance. Under this agreement, each CCA commits to a 25% “step-up” obligation.
If one of the participating CCAs defaults and is removed from the agreement, each CCA commits to take additional capacity up to 25% of its initial share. Under this agreement, each CCA also commits to pre-pay three months of expected project payments. This provides a cushion to CC Power to allow it to make payments to the project developer on a timely basis. • Buyer Liability Pass Through Agreement (BLPTA): This agreement will be executed by VCE, CC Power and Goal Line BESS 1, LLC. The form of this agreement is an appendix to the Energy Storage Services Agreement (ESSA). This agreement is a guaranty by VCE of its share of payment obligations under the ESSA.
225
5 • Coordinated Operations Agreement (COA): This agreement will be executed by CC Power and each of the participating CCAs. This agreement details how the CCAs and CC Power will work together to operate the project including hiring a scheduling coordinator and making decisions on charging and discharging the project. This contract will be finalized and executed closer to the start of project operations.
On February 25, 2022, the CC Power Board approved the Goal Line ESSA. Subsequently CC Power and the counterparty executed the ESSA on March 1, 2022 which provides 90 days to secure approval from each of the participating CCAs governing Boards.
Strategic Plan
The Goal Line project supports the following objectives in VCE’s strategic plan:
Goal 2: Manage power supply resources to consistently exceed California’s Renewable Portfolio Standard (RPS) while working toward a resource portfolio that is 100% carbon neutral by 2030 -2.3 Objective: Deploy storage and other strategies to achieve renewable, carbon neutral, resource adequacy, and resiliency objectives.
Discussion/Conclusion
VCE’s expected share of the Goal Line project is approximately 4.5% of the project which is equivalent to 2.25 MW nameplate capacity or 1.76 MW NQC. This will satisfy nearly 50% of the LDS mandate assigned to VCE.
Staff is asking the Board to approve VCE’s participation in the Goal Line project. In addition, each participating CCA is asking its Board for cushion to allow them to proceed with this project in case there are changes in share allocation due to any CCA not receiving their Board’s approval (note: VCE will seek approval for up to 5MW). This will also cover situations where there is a step-up event. Staff anticipates that all CCA’s will receive approval to participate, but in the event one or more do not, this buffer will help avoid the need to go back to each of the CCA Boards for re-approval.
The Goal Line project is the second project for CCAs to procure together through CC Power, and the second LDS project contract to be executed to meet the MTR procurement mandate.
Attachment
1. Project Participation Share Agreement (PPSA - Draft)
2. Energy Storage Services Agreement (ESSA - redacted)
3. Resolution
226
GOAL LINE STORAGE
PROJECT PARTICIPATION SHARE AGREEMENT
among
CITY AND COUNTY OF SAN FRANCISCO, ACTING BY AND THROUGH ITS
PUBLIC UTILITIES COMMISSION CLEANPOWERSF
and
REDWOOD COAST ENERGY AUTHORITY
and
CITY OF SAN JOSÉ, ADMINISTRATOR OF SAN JOSÉ CLEAN ENERGY and
SILICON VALLEY CLEAN ENERGY
and
SONOMA CLEAN POWER
and
VALLEY CLEAN ENERGY
and
CALIFORNIA COMMUNITY POWER
227
TABLE OF CONTENTS
Page
i
ARTICLE 1 DEFINITIONS....................................................................................................... 1
1.1. Definitions.............................................................................................................. 1
1.2. Rules of Interpretation ......................................................................................... 15 ARTICLE 2 EFFECTIVE DATE AND TERM...................................................................... 16
2.1. Term..................................................................................................................... 16 ARTICLE 3 AGREEMENT..................................................................................................... 16
3.1. Transaction........................................................................................................... 16 ARTICLE 4 ENTITLEMENT SHARE................................................................................... 17
4.1. Initial Entitlement Share ...................................................................................... 17
4.2. Change of Entitlement Share. .............................................................................. 17
4.3. Reduction of Entitlement Share to Zero .............................................................. 17 ARTICLE 5 OBLIGATIONS OF CCP; ROLE OF CCP BOARD AND CCP MANAGER .................................................................................................. 17
5.1. Obligations of CCP.............................................................................................. 17
5.2. Role of CCP Board. ............................................................................................. 21
5.3. Role of CCP Manager.......................................................................................... 23 ARTICLE 6 PROJECT COMMITTEE.................................................................................. 23
6.1. Establishment and Authorization of the Project Committee................................ 23
6.2. Project Committee Membership .......................................................................... 23
6.3. Project Committee Operations, Meetings, and Voting. ....................................... 24
6.4. Project Committee Responsibilities..................................................................... 24
6.5. Subcommittees..................................................................................................... 27
6.6. Representative’s Expenses................................................................................... 27
6.7. Inaction by Committee......................................................................................... 27
6.8. Delegation ............................................................................................................ 27 ARTICLE 7 OPERATING COMMITTEE ............................................................................ 27
7.1. Operating Committee........................................................................................... 27 ARTICLE 8 OPERATING ACCOUNT.................................................................................. 28
8.1. Calculation of Estimated Monthly Project Cost. ................................................. 28
8.2. Operating Account............................................................................................... 28 ARTICLE 9 BILLING.............................................................................................................. 29
9.1. Monthly Costs...................................................................................................... 29
9.2. Billing Statements................................................................................................ 29
9.3. Disputed Monthly Billing Statement ................................................................... 29
9.4. Payment Adjustments; Billing Errors.................................................................. 29 228
ii
9.5. Payment of Invoice Amount ................................................................................ 29
9.6. Withdrawal of Invoice Amount from Operating Account................................... 30
9.7. Late Payments...................................................................................................... 30 ARTICLE 10 UNCONDITIONAL PAYMENT OBLIGATIONS;
AUTHORIZATIONS; CONFLICTS; LITIGATION.............................. 30
10.1. Unconditional Payment Obligation...................................................................... 30
10.2. Authorizations...................................................................................................... 31
10.3. Conflicts............................................................................................................... 31
10.4. Litigation.............................................................................................................. 31
10.5. San José Clean Energy......................................................................................... 31
10.6. Clean Power San Francisco.. ............................................................................... 31 ARTICLE 11 PROJECT SPECIFIC MATTERS AND PROJECT
PARTICIPANTS’ RIGHTS AND OBLIGATIONS UNDER THE
ESSA.............................................................................................................. 32
11.1. CCP Rights and Obligations under the ESSA ..................................................... 32 ARTICLE 12 NONPERFORMANCE AND PAYMENT DEFAULT.................................. 32
12.1. Nonperformance by Project Participants ............................................................. 32
12.2. Payment Default................................................................................................... 33
12.3. Payment Default Notice....................................................................................... 33
12.4. Cured Payment Default........................................................................................ 33
12.5. Suspension of Project Participant’s Project Revenue Rights............................... 33
12.6. Termination and Disposal of Project Participant’s Project Rights ...................... 34
12.7. Step-Up Invoices.................................................................................................. 34
12.8. Step-Up Allocation of Project Participant’s Project Rights................................. 35
12.9. Elimination or Reduction of Payment Obligations.............................................. 37 ARTICLE 13 LIABILITY ........................................................................................................ 37
13.1. Project Participants’ Obligations Several ............................................................ 37
13.2. No Liability of CCP or Project Participants, Their Directors, Officers, Etc.; CCP, The Project Participants’ and CCP Manager’s Directors, Officers, Employees Not Individually Liable ...................................................... 37
13.3. Extent of Exculpation; Enforcement of Rights.................................................... 38
13.4. No General Liability of CCP ............................................................................... 38
13.5. Indemnification .................................................................................................... 38 ARTICLE 14 NOTICES ........................................................................................................... 39
14.1. Addresses for the Delivery of Notices................................................................. 39
14.2. Acceptable Means of Delivering Notice.............................................................. 39 ARTICLE 15 ASSIGNMENT .................................................................................................. 39
15.1. General Prohibition on Assignments ................................................................... 39 ARTICLE 16 GOVERNING LAW AND DISPUTE RESOLUTION.................................. 39