AGENDA SONOMA CLEAN POWER AUTHORITY BOARD OF DIRECTORS THURSDAY, FEBRUARY 6, :45 A.M.

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1 AGENDA SONOMA CLEAN POWER AUTHORITY BOARD OF DIRECTORS THURSDAY, FEBRUARY 6, :45 A.M. Board of Supervisors Chambers 575 Administration Drive, Santa Rosa, California I. CALL TO ORDER II. BOARD OF DIRECTORS REGULAR CALENDAR 1. Chief Executive Officer s Report (information only) 2. Salary resolution approving the position of Account Representative. 3. Overview of launch of service, including introduction of the new website, call center and resources for customers. 4. Approve the January 9, 2014 meeting minutes of the Sonoma Clean Power Authority Board of Directors. III. IV. BOARD MEMBER ANNOUNCEMENTS PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA (Comments are restricted to matters within the Board jurisdiction. The Board will hear public comments at this time for up to thirty minutes. Please be brief and limit your comments to three minutes.) V. ADJOURN DISABLED ACCOMMODATION: If you have a disability which requires an accommodation, an alternative format, or requires another person to assist you while attending this meeting, please contact the Clerk of the Board at (707) , as soon as possible to ensure arrangements for accommodation.

2 Staff Report To: From: Item: Sonoma Clean Power Authority Board of Directors Geof Syphers, CEO CEO Report Date: February 6, 2014 Milestones Adopted rates for CleanStart, EverGreen and a net metering program to promote local solar Current rates are below PG&E s rates! Hired Nelson Lomeli to the position of Project Assistant Completed and launched new customer-focused website Completed initial training of representatives and opened the customer service call center Board Meetings Meeting details are posted at SonomaCleanPower.org. Upcoming meetings are: Mar 20, 2014 Note off the usual schedule Apr 3, 2014 May 1, 2014 Jun 5, 2014 Jul 10, 2014 Note off the usual schedule Aug 7, 2014

3 Public Workshops The SCPA Business Operations Committee held a workshop to discuss the various goals of Sonoma Clean Power and to talk about potential future program activity. The meeting was well attended by over 50 people and the Committee asked staff to report back with the following items: 1. The purpose of Sonoma Clean Power is well stated in the Joint Powers Authority, and certain metrics for evaluating the program s success are worth considering, including: a. Percent of eligible customers participating, especially over time b. The greenhouse gas emissions of a unit of electricity, potentially expressed as lbs of CO2e/kWh (so long as credit for rooftop solar can be adequately counted) c. Competitiveness of rates, such as percentage of months CleanStart rates are within 3% of PG&E or better d. A financial performance metric to be proposed by staff 2. Staff should develop and propose criteria for evaluating program proposals 3. SCP should not duplicate other programs in early years, and should consider leveraging existing programs wherever possible 4. SCP should set a cap on participation in the renewable feed-in tariff program to limit potential costs to customers Three additional public workshops will be held to introduce Sonoma Clean Power and gather additional input from the public. The format is designed to provide a short introduction to SCP for newcomers and then to reserve significant time for facilitated brainstorming to gather ideas and learn about public priorities and interests. This input will be summarized and reported back to the Business Operations Committee and the Board of Directors, and will be helpful in designing future SCP programs and establishing specific goals and priorities. These workshops are posted at SonomaCleanPower.org and will be featured in public 2

4 service announcements and print ads, as well as sent to everyone who has registered their on the previous website. Thursday, Feb. 13 Thursday, Feb. 20 Saturday, Mar. 1 7 pm 9 pm Sonoma Veteran s Memorial 126 First Street West, Sonoma 7 pm 9 pm Finley Community Center, Cypress Room 2060 W. College Avenue, Santa Rosa 10 am noon Sebastopol Community Cultural Center Annex 425 Morris Street, Sebastopol Staffing Nelson Lomeli was hired to serve as Project Assistant, supporting public events, customer communications and program development. Mr. Lomeli has a background in utility conservation, public communication and environmental studies. He is fluent in Spanish. The position of Account Representative is presented for approval in Item 2 and the position of Customer Service Director will be brought to the Board for approval in March. 3

5 Current Schedule for SCPA Board and Committee Actions and Decisions through Launch Last updated 1/30/2014 Date Responsible Party Major Activities and Decisions 2-03 Staff Mail first Phase 1 enrollment notices 2-06 Board of Directors Approve Account Representative position Training on key customer information and messages, website and call center 2-25 Staff Mail second Phase 1 enrollment notices Board of Directors Agenda TBD 4-03 Board of Directors Agenda TBD 5-01 Board of Directors Agenda TBD Throughout May Throughout June Staff Staff Start up service for Phase 1 customers. The initiation of service happens throughout the month of May on the normal billing cycle for each customer. Mail the third enrollment letter at the start of service. Mail fourth and final enrollment letter 30 days after the start of service for each customer. Financial The budget-to-actual report through December is on the following pages, with the bottom line that we are spending below our budgeted amounts. This report distinguishes between expenses paid directly by the Sonoma County Water Agency 4

6 ( Seed Loan ) and expenses paid by proceeds from the First Community Bank line of credit. In addition to these expenses, the security deposit of $1.6 million for Exelon/Constellation was posted on December 30, 2013 from the $7.5 million operating line of credit. This is the minimum balance for our secured account, and is used to support the purchase of competitively-priced power prior to Sonoma Clean Power establishing a credit rating. Later in February, a security deposit of $200,000 will be posted to support the credit of the Calpine power purchase. Staff notes to accompany the financial report are: 1. Staffing expenses are at 49% of budget to date, but will rise in the future as a Program Manager, Accounts Representative and Customer Service Director are hired. 2. Consultant expenses are at 71% of budget to date, but payment of the power negotiation legal fees in January will bring consulting expenses close to the budgeted amount. 3. Overall expenses are at 61% of budget to date, and should generally trend upward to match the budget forecast over the next six months. 4. No budget adjustment appears necessary at this time. 5. A draft Fiscal Year budget will be presented first in May 2014 for adoption in June. 5

7 1101 FIFTH AVENUE SUITE 200 SAN RAFAEL, CA ACCOUNTANTS COMPILATION REPORT Board of Directors Sonoma Clean Power Authority We have compiled the accompanying special purpose budgetary comparison statement for Sonoma Clean Power Authority (a California Joint Powers Authority) for the period ended December 31, We have not audited or reviewed the accompanying financial statement and, accordingly, do not express an opinion or provide any assurance about whether the financial statement is in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statement and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statement. The accompanying special purpose budgetary comparison statement was prepared to allow for the comparison of actual financial results to budgeted results as approved by the board of directors of Sonoma Clean Power Authority, and are not intended to be a presentation in conformity with accounting principles generally accepted in the United States of America. Management has elected to omit substantially all of the disclosures required by accounting principles generally accepted in the United States of America. If the omitted disclosures were included with the special purpose budgetary comparison statement, they might influence the user s conclusions about the Authority s results of operations. Accordingly, this special purpose budgetary comparison statement is not designed for those who are not informed about such matters. We are not independent with respect to Sonoma Clean Power Authority. Maher Accountancy January 23, 2014

8 SONOMA CLEAN POWER AUTHORITY OPERATING FUND BUDGETARY COMPARISON SCHEDULE July 1, 2013 through December 31, 2013 Total SCWA Loan FCB Loan Annual Budget Budget to date Actual/ Budget to date REVENUE AND OTHER SOURCES: Revenue - electricity sales $ - $ - $ - $ 7,293,000 $ - 0.0% Proceeds from Seed loan 430, , * Proceeds from FCB loan 495, , * Total revenue and other sources 925, , ,000 7,293, % EXPENDITURES: Cost of energy ,212, % Staffing 269, , , , , % Consultants 600, , ,593 1,262, , % Data manager , % Service fees - PG&E , % General and administration 52,420 31,346 21, , , % Total expenditures 922, , ,505 7,794, , % DEBT SERVICE Interest 3,156-3, ,000 34, % Total debt service 3,156-3, ,000 34, % OTHER USES: Capital outlay 21,126-21, * Bad debt expense , % CCA bond and PG&E deposit 100, , , , % Total other uses 121, , , , % Total expenditures, debt service and other uses 1,047, , ,787 8,075,000 1,008, % Total revenues and other sources over (under) total expenditures, debt service and other uses $ (121,787) $ - $ (121,787) $ (782,000) $ (1,008,000) * Modified accrual item - no approved budget Actual FCB Loan Budget and Comparisons

9 Staff Report To: From: Item: Sonoma Clean Power Authority Board of Directors Geof Syphers, CEO Approval of Account Representative Position and Salary Range (Agenda Item No. 2) Date: February 6, 2014 Requested Action: Adopt resolution approving the position of Account Representative and setting a salary range for the position Background: This item seeks Board approval for the position of Account Representative and the setting of a salary range for the position. Retention of customers is critical to the success and economic viability of SCP. Since Phase 1 will primarily involve commercial and industrial customers, ensuring these customers are properly cared for by SCP during the Phase 1 roll-out is a key objective. The Account Representative position will be responsible for providing this customer service and customer care. The Account Representative will act as a customer advocate and energy advisor for SCP s largest customers. He or she will be these customers primary contact with SCP, and will advise the customers about SCP rate options and programs to ensure that the customers energy needs are met at the lowest possible cost. The Account Representative will also serve a sort of ombudsman function for these larger customers, ensuring that any billing or technical problems faced by the customers are promptly resolved. A more detailed description of the duties of the Account Representative is attached. This position was one of the positions anticipated to be filled during FY

10 The Account Representative must have a background in and be completely familiar with the electric industry, and have a detailed knowledge of retail rate structures and energy efficiency, demand response and other retail customer programs. He or she must also have an extensive understanding of the impact of energy consumption and costs on business operations and development. Because of the electric industry-specific experience and knowledge required of the Account Representative position, there were no local public agency positions available to use as comparables for determining a salary range. However, the position is a typical one in municipal and public utilities, and the Marin Energy Authority also has a similar position. Staff conducted a survey of compensation paid for similar positions (attached), and based upon the survey, staff recommends the following salary range for the Account Representative position: Account Representative Position: $60,000 - $90,000 (annual) The proposed salary and benefits for the Account Representative position for FY were included as expenditures in the budget adopted by the Board on August 15, Requested Action: Adopt resolution approving the position of Account Representative and setting a salary range for the position Attachments: Job Specification, Labor Market Surveys, Resolution 2

11 ACCOUNT REPRESENTATIVE Salary Range: $60,000 - $ 90,000 (annual) This class specification indicates, in general terms, the type and level of work performed as well as the responsibilities of employees in this classification. The job functions described are not to be interpreted as being all-inclusive to any specific employee. SUMMARY DESCRIPTION Acts as a customer advocate and energy advisor for Sonoma Clean Power s (SCP) largest commercial and industrial customers (customers). Serves as the primary point of contact for all aspects of the customer service relationship including programmatic, regulatory and operational requirements. Promotes and supports customer participation in SCP programs. SUPERVISION RECEIVED AND EXERCISED Direct supervision is received from the Chief Executive Officer. May exercise functional and technical supervision over assigned administrative staff. EXAMPLES OF ESSENTIAL JOB FUNCTIONS (Illustrative Only) Management reserves the right to add, modify, change, or rescind the work assignments of different positions and to make reasonable accommodations so that qualified employees can perform the essential functions of the job. Essential Functions: Customer advocate and primary point of contact responsible for trouble shooting customer issues. Handles all service-related issues including, but not limited to: resolving billing disputes, credit and collections issues and measurement problems, conducting energy cost analysis, performing energy audits and utilizing SCP programs. Seeks to develop strategic stakeholder alliances by understanding the customers most important business needs and economic drivers and aligning

12 them with the goals and objectives of SCP. Identifies customer service gaps and assigns goals and objectives that will meet customer needs. Serves as trusted energy advisor. Establishes relationships with key decision makers in customer organizations. Is an active member of local trade and business associations. Leverages presence in trade organizations related to customers to monitor market/industry changes, address electric issues, and establish relationships with influential decision makers and thought leaders. Resolves technical and bureaucratic issues, provides on-going guidance and follows projects through to completion. Performs cost analyses, conducts presentations, develops proposals, completes applications and coordinates internally with SCP staff to insure exceptional customer service. Educates and informs customers regarding rate options as well as complex tariff and regulatory issues. Analyzes electric billing and energy options as well as explains changes and potential impacts for a customer's facility. Advises customers on emerging technologies and alternatives. Serves as SCP s most important resource for customer information. Works closely with SCP staff to provide market / industry intelligence and guidance in program development of procedures for roll-out of regulatory changes. Communicates key customer issues and trends to staff and management via internal reports and informational meetings. Prepares succinct and relevant summaries of meeting results for management and staff to elevate key customer issues. KNOWLEDGE, SKILLS AND ABILITIES Knowledge of: The electric industry, including retail rates, energy efficiency, demand response and other retail customer programs. Specific knowledge of tariffs, time-of-use charges, demand charges, net metering and related billing. 2

13 The impact of energy consumption and costs on business operations and development. Public sector organizational and administrative practices, including applicable Federal, State, and local laws, codes, and regulations. Methods, operational characteristics, services, and activities necessary for successful business community outreach. Methods and technologies for developing effective customer service programs. Methods, techniques, and technologies of effective business and energy marketing, program and project management, and business community relations. Methods, techniques, and technologies of effective public speaking and presentations. Ordinary office procedures, methods, and equipment, including computers and all of the following software Access database, Excel, Word, Outlook and Powerpoint. Other software knowledge is a plus, such as SQL, Publisher, and social media tools. Ability to: Conduct effective interpersonal communication to make persuasive presentations and written proposals on highly technical subjects. Speak effectively before groups of customers. Demonstrate a good understanding of customer attitudes and needs and how customers make purchasing decisions (i.e., operational needs, financial return or payback requirements, budgeting cycles, technological preferences and biases, etc.) Understand qualitative and quantitative methodologies used to evaluate the technical, economic and market feasibility of existing and new equipment and concepts; and understand both SCP s and PG&E s rates, tariff options and programs. 3

14 To provide direction and oversight to cross-departmental team members and drive the team to successful project completion. REQUIRED QUALIFICATIONS Experience and Training Guidelines Any combination of experience and training that would likely provide the required knowledge and abilities is qualifying. A typical way to obtain the knowledge and abilities would be: Education: Equivalent of a Bachelor s degree from an accredited college or university with major course work in engineering, business, or marketing AND, Experience: Minimum five (5) years of increasingly responsible experience in one or more of the following: the electric industry, technical sales, Sonoma County business development. Ten (10) years of related experience desirable. Public utility agency experience desirable. Spanish language proficiency desirable. AND, License: Possession of a valid Class C California driver's license and a satisfactory driving record at the time of hire. PHYSICAL AND WORKING CONDITIONS The physical and mental demands described here are representative of those that must be met by employees to successfully perform the essential functions of this class. Reasonable accommodations may be made to enable individuals with disabilities to perform the essential job functions. ENVIRONMENT Normal office environment with exposure to computer screens. Employees will likely interact with upset customers from time to time. 4

15 PHYSICAL While performing the duties of this class, employees are regularly required to sit, walk, and stand; talk or hear, in person and by telephone; reach with hands and arms. Employees are occasionally required to walk, and stand for prolonged periods; stoop, bend, kneel and twist; and may lift up to 20 pounds. Employees must be able to communicate in person, in writing, and by telephone with Board members, management, coworkers, vendors, consultants, and with the public in face-to-face, one-to-one, and group settings. MENTAL While performing the duties of this class, the employee is regularly required to use written and oral communication skills; read and interpret data, information and documents; analyze and solve problems; observe and interpret situations; learn and apply new information or skills; perform highly detailed work; work on multiple concurrent tasks; work with frequent interruptions; work under deadlines; interact with Authority managers, Board, staff, vendors, the public and others encountered in the course of work. VISION See in the normal visual range with or without correction; vision sufficient to read computer screens and printed documents; and operate assigned equipment. HEARING Hear in the normal audio range with our without correction. 5

16 Labor Market Salary Survey: Account Representative Agency Comparable Class* Annual Salary Range (As of January 1, 2014) SMUD Retail Partner Coordinator $77,664 - $96,948 MCE Clean Energy Manager of Accounts $ 71,000 - $92,000 (MEA) PG&E Account Representative $78,000 - $87,000 Cal SEIA Policy Director (includes $ 70,000 - $80,000 membership outreach) SDG&E Account Executive $ 80,000 -$100,000 SONOMA CLEAN POWER Sonoma County Water Agency City of Santa Rosa SCTA Account Representative $ 60,000 - $90,000 Not Applicable Comparison Not Applicable Comparison Not Applicable Comparison Average Salary Range: $ 75,000 - $91,000 *Comparables for this SCP Account Representative position were chosen based upon: 1) scope of duties and management authority; 2) required years of experience; and, 3) reporting relationship. The two most comparable comparisons are MCE Clean Energy and PG&E.

17 RESOLUTION NO. RESOLUTION OF THE BOARD OF DIRECTORS OF THE SONOMA CLEAN POWER AUTHORITY ESTABLISHING SALARY RANGES FOR THE POSITION OF ACCOUNT REPRESENTATIVE AND AUTHORIZING THE CHIEF EXECUTIVE OFFICER TO RECRUIT AND HIRE FOR THE POSITION WHEREAS, under Section 2.4 of the Second Amended and Restated Joint Powers Agreement creating the Sonoma Clean Power Authority ( Authority ), the Authority has the power to employ agents and employees; and WHEREAS, on August 15, 2013, the Board adopted Resolution No , establishing a Personnel System for the Authority, to promote fairness and equity to employees; to attract the best and most competent persons available; to assure that the appointment and promotions of employees will be based on merit; and to implement best practices in the administration of its system; and WHEREAS, on October 3, 2013, the Board approved a package of benefits to be provided to Authority employees, and authorized the Chief Executive Officer to negotiate agreements with benefit providers to implement the benefits package; and WHEREAS, the Authority s Chief Executive Officer has reviewed the staffing needs of the Authority in light of the Implementation Plan and the tasks necessary to accomplish the mission, goals, and objectives of the Authority, and has determined that it is necessary to add an additional job classification and to offer a compensation package necessary to attract the most qualified individuals for that positions. NOW, THEREFORE, BE IT RESOLVED THAT: 1. The foregoing recitals are true and correct. 2. The Chief Executive Officer having recommended the creation of the following positions with the following salary ranges in carrying out his authority under the Personnel System, the Board hereby approves the creation of the following positions and adopts the following salary ranges for those positions: Account Representative - - Salary Range: $60,000 - $90,000 (annual) 3. The cost to the Authority of this position, including salary within the ranges above and benefits, is within the budget approved by the Board. 1

18 4. As Personnel Officer and Appointing Authority under Resolution No , the Chief Executive Officer is authorized to take actions to recruit and fill this position. ADOPTED AND APPROVED by the Board of Directors of the Sonoma Clean Power Authority this 6th day of February, 2014, by the following vote: Director Aye No Absent/Abstain Gorin Zane Okrepkie Landman Kyes Barbose Ours Combs Attest: Chair, Sonoma Clean Power Authority Secretary, Sonoma Clean Power Authority 2

19 Staff Report To: Sonoma Clean Power Authority Board of Directors From: Item: Geof Syphers, CEO Overview of Launch for Service Date: February 6, 2014 Enrollment Notices Customers eligible for service in Phase 1 start receiving notices by mail on February 4 and 5. The notices show three options for CleanStart, EverGreen and for opting out, and go to a little over 20,000 accounts, mostly commercial. Sample notices in English and Spanish are attached as an appendix. Customer Website The website is significantly updated to reflect the new customer orientation of SCP, focusing on power options, rates and billing questions. The website is an important resource where customers can learn about SCP, sign up for EverGreen or opt out of service. The new Frequently Asked Questions (FAQ) page is totally updated to reflect real questions we have been recently getting from the public. Call Center The call center opens February 1 with customer service representatives available to speak in English and Spanish, and other languages available by translation service. An automated phone system is available 24/7, and operators are available Monday to Friday 7 am to 7 pm.

20 Key Messages for the Public Sonoma Clean Power (SCP) gives residents and businesses in participating cities the option to buy cleaner electricity at competitive prices. SCP partners with PG&E to continue maintaining the poles and wires, and to do all billing. The following graphic is helpful in explaining this partnership. SCP offers competitively priced power with CleanStart. Pricing as of January 2014 is 2 to 3% lower than PG&E on the total electric charges. We will work to always keep our prices competitive, but we cannot promise what PG&E will do with their rates. This means that we offer our power at specific set prices in $/kwh rather than saying that we will always be x% above or below their price. SCP also offers EverGreen, the only 100% renewable power product available from local, Sonoma County sources. It is exciting to have this option available to support clean, local power for a premium of 3.5 cents per kwh, or about 20% of total electric charges. 2

21 SCP s purpose for existing is to produce environmental benefits by reducing greenhouse gas emissions, financial benefits to customers with more stable and competitive rates, economic benefits to our region with local investments and support for customers to reduce energy consumption. SCP is driven by these purposes instead of a profit motive, and the agency is not concerned about losing market share to customers who cut their use of power or produce their own power. If SCP s income shrinks because its customers are saving money and helping the environment, we consider that success. One Page Info Sheets Short one-page summaries are included as an appendix to this item for use in communicating with the public. One is available to describe Sonoma Clean Power, and one is also available for Net Energy Metering. 3

22 <name> <mladdr_tx> <mladdr2_tx> <mlcity_tx>, <mlstate_tx>> <mlzip_tx> February 1, 2014 Dear Customer, Sonoma Clean Power (SCP) is now offering electricity from cleaner sources like geothermal, wind and solar, while partnering with PG&E to continue delivering power. It s a great combination because we get the same reliability we re used to, but with more renewable power at a lower price. Who we are Sonoma Clean Power is a public agency based in Santa Rosa, and governed by a Board of Directors comprised of elected representatives from Sonoma County and each of the participating cities: Cotati, Santa Rosa, Sebastopol, Sonoma and Windsor. SCP was formed by the public to buy greener power and invest in our local economy. We are able to offer cleaner power at a lower price because we helped create a more competitive market. We are a not-for-profit public agency and invest our earnings into lowering costs and supporting cleaner power. Your account is one of the first 20,000 now eligible to participate. The way it works is that service will automatically start in May 2014 with our basic CleanStart product, unless you pick another option. The choice is yours Take no action, and you ll be enrolled in CleanStart, our basic electric service in May 2014, on your regular billing date. CleanStart is 33 percent renewable and costs 2 to 3 percent less than what you pay for PG&E s 20 percent renewable service now so it s better for your wallet, the planet and your community! If you can afford to pay a little extra and want to help create a clean energy economy today, sign up for EverGreen 100 percent local renewable service. The premium is $0.035 per kilowatt-hour, or about 20 percent extra. Learn more about this exciting opportunity by visiting sonomacleanpower.org. Opt Out You may opt out of Sonoma Clean Power and continue to purchase PG&E s standard service. Just call toll free 1 (855) or visit sonomacleanpower.org. Be sure you have your PG&E bill on hand, because we ll need your account information to help you.

23 It s simple Just one bill. Even though you will pay SCP for power generation and PG&E for power delivery, you will get just one combined bill every month from PG&E. Same reliable service. You still call PG&E to start and stop service, and report outages and emergencies. They will continue to maintain the poles and wires (known as the electric distribution system), read your meter and provide service exactly as they always have. Great rates. Our rates for CleanStart will be slightly lower than PG&E s rates, and with a much higher renewable content. Nothing else about your service will change no new risks or hassles. Working together Becoming a Sonoma Clean Power customer means your electricity will be cleaner, and that we ll be investing dollars here in Sonoma County to develop more local renewable power sources and create jobs. CleanStart customers will get more than three times the amount of locally generated power than from PG&E, and EverGreen customers will get all of their power from local sources. By buying our power locally, we create jobs, help the environment, and support our economy. Starting in May, your power from SCP will be cleaner, greener, and less expensive. We invite you to review your choices at sonomacleanpower.org or call us toll free at 1 (855) We re here to help. Geof Syphers, CEO Sonoma Clean Power We look forward to working together, toward a clean energy economy!

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