Board of Supervisors Chambers 575 Administration Drive, Santa Rosa, California

Transcription

1 AGENDA SONOMA CLEAN POWER AUTHORITY JOINT MEETING BOARD OF DIRECTORS BUSINESS OPERATIONS COMMITTEE RATEPAYER ADVISORY COMMITTEE THURSDAY, OCTOBER 17, :45 A.M. Board of Supervisors Chambers 575 Administration Drive, Santa Rosa, California I. CALL TO ORDER II. JOINT MEETING CALENDAR 1. Welcome and Oath of Office for Business Operations Committee and Ratepayer Advisory Committee members 2. Orientation for Business Advisory Committee and Ratepayer Advisory Committee (information only) 3. Chief Executive Officer s Report (information only) III. BOARD OF DIRECTORS CLOSED SESSION CALENDAR 4. The Board of Directors of the Sonoma Clean Power Authority will consider the following in closed session: Public Employee Performance Evaluation: Sonoma Clean Power Authority Interim Chief Executive Officer (Govt. Code Section 54957) IV. BOARD OF DIRECTORS REGULAR CALENDAR 5. Appoint ad hoc committee to develop recommendations regarding the hiring of a permanent Chief Executive Officer 6. Approve the October 3, 2013 meeting minutes of the Sonoma Clean Power Authority Board of Directors V. BOARD MEMBER ANNOUNCEMENTS VI. 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. Any additional public comments will be heard at the conclusion of the meeting.)

2 VII. 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.

3 Information on SCP Contracts and Ratesetting for the Board and Committees Agenda Item No. 2, October 17, 2013 SUMMARY OF AGREEMENTS A number of agreements are involved in setting up Sonoma Clean Power. In addition to the already executed Service Agreement with PG&E, which establishes the responsibilities of PG&E to deliver power to SCP s customers, there are six significant agreements that must be executed before SCP can begin delivering power two related to power supply, three related to the financing of power purchases, and one related to provision of data management/customer services: 1. The Master Agreement is between SCP and the Energy Service Provider (ESP), and covers the general conditions of providing power. The agreement is based on a standard industry contract developed by the Edison Electric Institute, and all exceptions and changes to the standard agreement are recorded in a Cover Sheet. By using this format, it is easy for those in the power industry to review what is different from standard, making negotiations much more efficient. 2. Confirmations are between SCP and the ESP, and establish additional terms for the purchases of a specific amount of energy. Each confirmation sets a volume of energy, pricing, a schedule for delivery and a delivery point, and identifies the allowed categories of sources. SCP will sign Confirmations several times during the initial three year supply contract to purchase power for each phase of customers and allow us to fine tune our volume estimates. 3. The Security Agreement is between SCP and the ESP, and defines the ESP s security interest in the secured revenue account into which all customer payments to SCP will flow. This agreement establishes that the ESP has first rights to deposits in the account to secure SCP s payment obligations to the ESP. The agreement allows SCP to start up without having to post collateral. 4. The Blocked Account Control Agreement is between SCP, the ESP and First Community Bank, and defines control authorization for the secured revenue account. A so called waterfall payment structure will be used to avoid having to post collateral for energy purchases. PG&E collects customer payments for power and deposits them into the secured revenue account each business day. The

4 agreement allows the ESP to take money from the secured revenue account to offset amounts owed by SCP for power delivered by the ESP, and the remaining balance is swept into SCP s operating account. 5. The Inter Creditor Agreement is between the ESP and First Community Bank, and acknowledges that the ESP has a first interest in the secured account ahead of the bank and that the bank s claims to money in the secured revenue account are secondary to the ESP s. 6. The Data Management Services Agreement is between SCP and a data management provider, and establishes the scope and terms for the services related to the enrollment of customers, the operation of a customer call center, the management of all customer data, coordination of billing with PG&E, regulatory interface with the state s grid operator and the renewable energy reporting system, and generation of data for use in load forecasting. PROCESS FOR SECURING POWER SUPPLY CONTRACT The power market negotiating team, lead by consultants John Dalessi and Kirby Dusel with legal support from Troutman Sanders LLP and Agency Counsel, is finalizing a standard set of bid documents, which will allow the Board of Directors to review and approve the terms and conditions before getting final supply pricing. This is critical because we need to be able to execute a contract within 24 hours of receiving the prices. Staff have explored this matter extensively with the suppliers, and we have found that a price hold longer than 24 hours includes a significant premium. By creating a uniform set of bid documents, we can ensure that the remaining variable is kept very simple price and the strength of the team so that we will have the ability to select a supplier within the 24 hour period. During October, staff will work with consultants to refresh power cost estimates and provide a recommended maximum average 2014 retail rate for consideration by the Board of Directors at the November 7 meeting. This maintains SCP s competitive bid process, since the approval is on a maximum allowed average retail rate rather than a wholesale cost (that is, the bidders will not be able to determine the highest wholesale price they can charge that is still within the Board s approved retail rate range). Once the Board has approved the form of the agreement and authorized an upper average retail rate limit, staff will request the best and final pricing from the four final power supply bidders, likely on or about November 12. The bids will be analyzed and a winning bidder will be selected, significantly on the basis of price. If the final price of 2

5 the winning bidder allows SCP to deliver retail power within the authorized limit on the average retail rate, then a contract will be executed immediately by the CEO and Board Chair. If not, then the process could be repeated or a new limit on the allowable average retail rate could be established by the Board. PROCESS FOR SETTING RETAIL RATES The upper limit on the average retail rate established by the Board is a tool for entering into the supply agreement. However, actual retail rates will be established through a process that looks at the program costs and the comparable cost of power from our competitor. Staff recommends that rates be set once per year. This compares favorably to the much more frequent adjustments by PG&E, helping SCP to meet its goal of providing rate stability to customers. The next step is for staff and consultants to complete a study of the program costs, which include all SCP expenses. These draft rates will be compared with PG&E s rates to allow us to evaluate the program s competitiveness. In its November meeting, the Ratepayer Advisory Committee will provide staff and consultants with feedback and questions on the draft proposed 2014 rates. Staff and consultants will then take this input into consideration and prepare a proposed final set of 2014 customer rates. The Ratepayer Advisory Committee will then meet in December and make a decision on whether to recommend that the Board adopt the proposed rates or recommend the Board make adjustments to the proposed rates. In the January 9 meeting, the Board of Directors will hear input from staff and the Ratepayer Advisory Committee and establish the 2014 customer rates. 3

6 REVIEW OF KEY DEAL POINTS FOR POWER SUPPLY The major deal points for the power supply contract include: 3 year term The supply agreement will be between Sonoma Clean Power and a single Energy Service Provider (ESP) for a period of three years. The agreement is structured to be flexible and allow fine tuning of the purchase volumes to account for variation in the number of customers and the timing of Phases 2 and 3. 33% renewable energy for the The default product will have a 33% renewable standard Light Green product energy content at the outset. This compares favorably with PG&E s renewable portfolio of about 20%. SCP s use of renewables will also grow faster than PG&E s. The purpose of selecting 33% is to target the statewide requirement that all utilities must meet by 2020 (SCP would meet this requirement 6 years early), and to ensure that SCP launches with a competitively priced option (Marin initially launched with a higher renewable but with a price premium compared to PG&E). Option for customers to voluntarily choose 100% Deep Green power for a premium Option for customers to voluntarily opt into SCP early by choosing Deep Green All SCP customers may choose to receive 100% renewable power for a premium. The actual premium will be set through an action of the Board of Directors and is likely to be between 10 and 20 percent of SCP s generation rate, depending on the source of the renewable power. All customers in participating cities and the county unincorporated area will be allowed to voluntarily opt into SCP early by signing up for the 100% renewable Deep Green option for a premium. Customers could begin signing up in February for service starting in May 2014 or at any time following that date. 4

7 Minimum 70% total carbon free supply (inclusive of the 33% renewables) Ability to negotiate agreements with other power producers during the 3 year period. PG&E uses nuclear power to keep its emissions rate low. SCP will not use nuclear power in this contract. This provision is designed to ensure that SCP provides a definite and immediate reduction in total greenhouse gas emissions, despite not having any nuclear power in its portfolio. SCP will seek out local and regional sources of renewable power throughout the term of the three year supply agreement, and the contract allows these sources to be inserted into SCP s portfolio. 5

8 DRAFT SCHEDULE SUBJECT TO CHANGE Estimated Schedule for SCPA Board and Committee Actions and Decisions through Launch Last updated 10/10/2013 DRAFT SCHEDULE SUBJECT TO CHANGE Date Responsible Party Major Activities and Decisions Staff Issue call for bids from the six short listed data management/customer service providers. Bids due in late October noon AM :45 AM Ad hoc committee on contracts Business Operations Committee Board of Directors Review form of power supply contract, and review data management contract. Review form of power supply contract and review data management contract. 1. Board to review and approve the form of power supply contract. 2. Establish a maximum allowed average retail rate for contracting purposes. 3. Provide authority to CEO and Chair to enter into supply contract subject to: a) use of approved contract form; and b) securing wholesale rates that allow average retail rates within the approved limit. 4. Board to review and approve agreement. 5. Board to review and approve $7.5 million line of operating credit 6. Board to review and approve salary ranges for additional staff positions. ~11 12 Staff Issue call for final pricing from the four shortlisted suppliers with a 24 hour price hold. ~11 12 CEO + Chair Enter into power supply agreement subject to rules set by Board on

9 DRAFT SCHEDULE SUBJECT TO CHANGE Date Responsible Party Major Activities and Decisions ~11 21 Ratepayer Advisory Committee Review program expenses and draft proposed rates Board of Directors No meeting. But keep on calendar in case it is needed :45 AM Board of Directors 1. Review proposed customer rates. 2. Review enrollment notices. 3. Review and approve staff salary ranges for additional positions. ~12 17 Ratepayer Advisory Committee Review proposed final customer rates and provide recommendation to Board :45 AM :45 AM Board of Directors* *Note special date due to avoiding January 2 Board of Directors 1. Adopt final customer rates for Review and approve final enrollment notices. 3. Budget adjustment with new income and expense information. No meeting. But keep on calendar in case it is needed. Future months will have just one meeting, and staff propose first Thursdays at 8:45 am Staff Mail first Phase 1 enrollment notices and open call center :45 AM Board of Directors Agenda TBD 2 25 Staff Mail second Phase 1 enrollment notices :45 AM :45 AM Board of Directors Board of Directors Agenda TBD Agenda TBD 7

10 DRAFT SCHEDULE SUBJECT TO CHANGE Date Responsible Party Major Activities and Decisions :45 AM Throughout May Throughout June Board of Directors Staff Staff Agenda TBD 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. 8

11 SCP Energy Supply Contrac2ng Octobe

12 2 Topics Primary Energy Supplier Selection Key Transaction Terms Contract Structure Data Management Services

13 3 Supplier Selection Process was designed to maximize competition: RFP used to select short list of qualified suppliers. A standard contract is being developed, with supplier input. Short listed suppliers to make best and final bid on standard contract to ensure comparability/price competition. Working to complete form of agreement by October 24th for review by Ad Hoc Contracts Committee and Business Operations Committee.

14 4 Key Transaction Terms Supplier to provide a 33% renewable energy content and overall 70% carbon-free content. Prices to be fixed for three-year term for specified contract volumes. Contract volume carve-out for potential SCP generation, efficiency projects and future market purchases. SCPA reserves right to purchase from other suppliers.

15 5 Key Transaction Terms (Cont d) SCPA credit for purchases backed solely by customer revenues. Power purchase liabilities are non-recourse to SCPA members/ participants. Customer payment lockbox structure avoids margining requirements.

16 6 Anticipated Energy Supply Agreements EEI Master Power Purchase and Sale Agreement sets forth general terms and conditions Confirmation pricing, product specification, and other transaction specific details Security Agreement defines credit provisions and allocation/disbursement of funds Lock Box Account Control Agreement (tri-party) defines control authorization for account established for collection of customer payments Inter-creditor agreement (supplier and FCB) defines priority of creditor interests in SCP assets

17 SCP Data Management Services October 17, 2013

18 8 Data Management Services Electronic Data Exchange Services: communication with PG&E regarding customer service election, meter data and billing advice Customer Information System Development & Maintenance: working archive of SCP customer information Customer Call Center Management & Staffing: primary point of contact for SCP customers; coordinative communication with PG&E Billing Administration: application of SCP rate schedules to customer usage data; coordination with PG&E

19 9 Data Management Services (Cont d) Settlement Quality Meter Data Services: CAISO and ESP interface with respect to SCP customer energy usage Qualified Reporting Entity Services: WREGIS interface, REC creation Reporting: communication of customer information (informs load forecasting, accounting and financial reporting)

20 10 Key Terms Initial five year term length to ensure continuity and allow recovery of set up costs. Contractor to meet specified service standards. 24 x 7 call center staffing during enrollment periods. Timely response to customer calls. PG&E cross-training to promote informational accuracy, consistency and issue resolution. SCP staff to have log-in access to customer information system.

21 11 Timeline Final DM proposals to be requested the week of October 14 th. Agreement to be reviewed by ad hoc contracts (10/28) committee and business operations committee (10/29). SCPA board to consider approval of agreement on November 7th.

22 SCP Ratese*ng October 17, 2013

23 2 Topics SCP Ratesetting Timeline Rate Design Policies and Objectives Rate Design Process

24 3 Introduction SCPA Board is responsible for authorizing rates for generation services. Annual ratesetting cycle, coordinated with the adoption of fiscal year program budgets. Initial rates will be prepared following execution of the power supply agreement and establishment of the 2014 program budget. Ratepayer Advisory Committee will be consulted for review and feedback on the proposed rates. Final proposed rates will be presented to the Board for approval on January 9, 2014.

25 4 Initial Ratesetting Timeline November December January February Annual budget developed Preliminary SCP rate proposal prepared Revised SCP rate proposal RAC recommendation Final rates approved Initial customer notices RAC review and input

26 5 Rate Design Revenue sufficiency: rates must recover all program expenses, debt service requirements, and prudent reserves; i.e., the revenue requirement. Rate competitiveness: rates must allow SCP to successfully compete in the marketplace to retain and attract customers. Rate stability: rates changes should be minimized to reduce customer bill impacts. Customer understanding: rates should be simple, transparent and easily understood by customers. Equity among customers: rate differences among customers should be justified by differences in usage characteristics or cost of service. Efficiency: rates should encourage conservation and efficient use of electricity (e.g., off-peak vehicle charging).

27 6 PG&E Rates More than 30 rate schedules are currently offered within Sonoma County. Variety of rate structures apply, depending upon customer classification: Flat $/kwh energy charges Time of use $kwh energy charges Demand charges ($/KW) Fixed charges ($/Month) Anticipate offering similar rate structure to facilitate comparability for customers. New rate options can also be considered to promote local policies/objectives.

28 7 SCP Rate Design Process Sales and Revenue Forecast Revenue Requirement Revenue Allocation Rate Design Forecast of all billing quantities for each SCP rate schedule Forecast of revenue at PG&E rates Revenues target for SCP rates Based on proposed annual budget Divides revenue requirement among customer classes Based on cost of service study, competitive assessment and other policies Energy, demand and customer charges per rate schedules Collect class revenue allocations Adjust based on competitive assessment

29 Staff Report To: From: Item: Sonoma Clean Power Authority Board of Directors Geof Syphers Interim CEO Report Date: October 17, 2013 Milestones CPUC approves the SCPA Implementation Plan on October 4, 2013 Offer made to first employee for Executive Assistant position Last round of contract negotiations for customer service/data management are underway. Final bids will be provided by the end of October. Final terms of the $7.5 million line of operating credit through First Community Bank are negotiated and will be presented to the Board for approval on November 7 Board Meetings The Board meeting schedule will change slightly to accommodate holidays and our contracting process. Proposed upcoming meetings are: Nov 07 Lengthy agenda, including approval of form of power contracts. Please hold a longer space on your calendar. Nov 21 Cancellation of this meeting is proposed, but please hold the meeting on your calendar in case there are any delays or additional decisions needed. Dec 05 Dec 19 Jan 09 Regular meeting. Cancellation of this meeting proposed. Meeting.

30 Staffing We have made an offer for the position of Executive Assistant and should be ready to make an offer for the position of Public Affairs & Marketing Manager within a week. Salary ranges for the additional positions of Administrative Assistant, Program Manager and Operations Manager will be presented to the Board soon. Operations The CPUC certified SCPA s Implementation Plan on October 4, This action was the final regulatory step needed before SCPA can enter into a power supply contract. This early decision came well in advance of the 90-day statutory review period, and speaks well of our technical team at Dalessi Management Consulting and Paradigm Energy, and the relationships the SCPA team is all building. The decision strengthens our negotiating position as well, making it likely that we will finalize a final power agreement in November. Our technical team, with legal support from Troutman Sanders LLP and Authority Counsel, is well into the final round of negotiations for both the customer service/data management agreement, and the form of the power supply agreements. The Board ad hoc committee and the Business Operations Committee will review these contracts and provide a recommendation on these agreements to the full Board at the November 7 meeting. Obtaining Board review and approval of all contract terms and conditions before getting final supply pricing is critical, because we need to be able to execute a contract within 24 hours of receiving final bids. Staff have explored this matter extensively with the suppliers, and we have found that a price hold longer than 24 hours includes a significant premium. By creating a standard set of pre-approved contract documents, we can ensure that comparison of the final bids can be made based on a very limited number of critical factors, including price and the strength of the power provider s team. Staff will work with consultants to refresh power cost estimates and provide a recommended maximum average 2014 retail rate for consideration by the Board of Directors at the November 7 meeting. This maintains SCP s competitive bid process, since the approval is on a maximum allowed average retail rate rather than a wholesale cost (that is, the bidders will not be able to determine the highest wholesale price they can charge that is still within the Board s approved retail rate range).

31 Once the Board has approved the form of the agreement and authorized an upper average retail rate limit, staff will request the best and final pricing from the four final power supply bidders, likely on or about November 12. The bids will be analyzed and a winning bidder will be selected, primarily on the basis of price. If the final price of the winning bidder allows SCP to deliver retail power within the authorized limit on the average retail rate, then a contract will be executed immediately by the CEO and Board Chair. If not, then the process could be repeated or a new limit on the allowable average retail rate could be established by the Board. To be clear, the maximum average retail rate is not the same as the actual customer rates, which will be established through a process that begins with the Ratepayer Advisory Committee review. That starts with an assessment of program expenses and a comparison with our competitor s rates. SCP staff and consultants will then provide the Ratepayer Advisory Committee with this information and a set of recommended customer rates. The Ratepayer Advisory Committee will make a recommendation on rates to the Board, which has final ratesetting authority. Financial We have completed negotiating the final terms of the $7.5 million line of credit from First Community Bank ahead of schedule, and will bring the loan to the Board for approval on November 7. This line of credit covers the timing difference between when SCP must pay for purchased power and when SCP receives payments from customers, and also covers a portion of the seasonal variation in income. This loan was negotiated in principle at the same time the terms of the $2.5 million line of credit were established, but was not executed at that time due to a need for coordinating the details of the loan with the Energy Supplier. To date, the total amount drawn from the First Community Bank line of credit is $20,000. However, expenses from consultants, furniture, the CEO s contract and supplies all increase in October, in which spending will be closer to $80,000 for the month. In addition, the CPUC bond payment of $100,000 will be made either in late October or early November. Expenditures and a statement showing budget-to-actual will be provided beginning at the first meeting in November.

32 Did You Know? Community Choice Aggregation (CCA) is Catching On 1 Community choice aggregation (CCA) is a state policy that enables local governments to aggregate electricity demand within their jurisdictions in order to procure alternative energy supplies while maintaining the existing electricity provider for transmission and distribution services. Many states passed CCA laws as part of electric restructuring legislation in the late 1990s and early 2000s. States that have passed CCA laws include California (2002), Illinois (2009), Massachusetts (1997), New Jersey (2003), Ohio (1999), and Rhode Island (1997). There are many reasons that a community may choose to develop a CCA, including the option to purchase more green power, reduce electricity cost, and provide power from more local sources. More than 600 cities in Illinois are participating in a CCA, including Chicago 2. 1 U.S. DOE Energy Efficiency & Renewable Energy: Green Power Markets 2

33 Staff Report To: From: Item: Sonoma Clean Power Authority Board of Directors Steve Shupe, Authority Counsel Formation of Ad Hoc Committee to Develop Recommendations Regarding the Hiring of a Permanent CEO (Agenda Item No. 5) Date: October 17, 2013 Requested Action: Appoint an ad hoc committee to develop recommendations regarding the hiring of a permanent Chief Executive Officer Background: The current Interim Chief Executive Officer, Geof Syphers, is performing his duties under a contract that will expire on January 2, To ensure that Sonoma Clean Power begins providing service on May 1, 2014 as planned, it is critical that there not be a vacancy in the CEO position. Formation of an ad hoc committee to make recommendations to the Board regarding the hiring of a permanent Chief Executive Officer would reduce the risk of such a vacancy. Requested Action: Appoint an ad hoc committee to develop recommendations regarding the hiring of a permanent Chief Executive Officer 1

34 MEETING MINUTES SONOMA CLEAN POWER AUTHORITY BOARD OF DIRECTORS THURSDAY, OCTOBER 3, Administration Drive, Room 102 A, Santa Rosa, California The Board of Directors of the Sonoma Clean Power Authority met this date in adjourned session with the following members present: Susan Gorin, Mark Landman, Steve Barbose, Michael Kyes, Bruce Okrepkie, Jake Ours, Robin Swinth, and Shirlee Zane. Staff Present: Geof Syphers, Interim CEO Sonoma Clean Power and Steve Shupe, Authority Counsel I. CALL TO ORDER 8:48 A.M. Chairwoman Gorin called the meeting to order. II. REGULAR CALENDAR 1. Chief Executive Officer s Report (information only) 8:49 A.M. Geof Syphers, Interim Chief Executive Officer reported on the following items: Operations: Sonoma Clean Power continues to be on schedule with all regulatory work. Questions from the California Public Utilities Commission (CPUC) about the application have been answered and are now moving on to the next stage. The November 7, 2013 Sonoma Clean Power Board of Directors meeting will be looking at finalizing the contract terms and conditions so final pricing can be set and the power contract can be executed. This meeting will also look at establishing a maximum average retail price for power and finalize a data management services agreement. 1

35 Committee Formation and Calendar: Once the Business Operations and Ratepayer Advisory Committee members are appointed, meetings will begin mid-october for both committees. Staff presented an updated working calendar showing the process leading up to the May 1, 2014 launch date for startup service for Phase 1 customers. Financial: Staff is negotiating the final terms of the $7.5 million line of credit from First Community Bank. October expenses will include a bond in the amount of $100,000 to cover switching customers automatically back to PG&E in the event SCP is unable to provide service; salary and consultant expenses; furniture and monthly office rent. Staffing: Interviews are currently being conducted for the Executive Assistant and Public Affairs & Marketing Manager positions. Top Ten Solar Lists: The California s Solar Cities 2012: Leaders in the Race Toward a Clean Energy Future, by the Environment California s Research and Policy Center lists Sebastopol, Occidental, Healdsburg and Santa Rosa under the top ten leading solar cities in terms of installation per 100 residents in the State of California and in terms of capacity (watts) per resident. 2. Receive ad hoc committee recommendations and appoint members of Business Operations Committee and Ratepayer Advisory Committee 9:11 A.M. Speakers: Dick Dowd Susan Briski June Brashares Mike Gogna 2

36 Board Action: Appointed the following members and term of office to the Business Operations Committee: 1. Susan Briski, Chair 4 years 2. Harry Davitian 4 years 3. Mike Gogna 4 years 4. Bill Mattinson 2 years 5. Paul Brophy 2 years Motion: Robin Swinth Second: Jake Ours UNANIMOUS Board Action: Appointed the following members and term of office to the Ratepayer Advisory Committee: 1. Dick Dowd, Chair (non-residential) 4 years 2. Tim Holmes (non-residential) 4 years 3. John Parry (non-residential) 2 years 4. Susan Amato (residential renter) 2 years 5. Bob Williamson (residential) 4 years 6. Margaret Spaulding (residential) 4 years 7. June Brashares (residential) 2 years Motion: Robin Swinth Second: Jake Ours UNANIMOUS 9:56 A.M. Director Zane left the meeting 10:03 A.M. Director Zane joined the meeting 3. Approve benefits package for SCPA employees and authorize CEO to negotiate agreements with benefits providers to implement the benefits package 9:58 A.M. Present: Linda Daube, Employment Attorney Board Action: Approve the following benefits plan for Sonoma Clean Power Authority employees and authorize the CEO to negotiate an agreement with benefits providers to implement the plan and bring back to the Board of Directors for final execution: Retirement: Implement a 457 plan with an employer match up to 4% of salary. 3

37 Health Vision, and Dental: Provide a maximum monthly contribution for employee medical, dental and vision of $1,250 per SCPA employee per month; provide a monthly stipend to employees hired by SCPA prior to January 1, 2014 for that new employee s COBRA benefits in an amount not to exceed $1,250 per month or the actual cost of the benefits, whichever is less; and if feasible, allow a stipend of up to $625 per month to SCP employees who completely opt out of the SCPA health benefit programs. Motion: Barbose Second: Ours UNANIMOUS 4. Approve the September 19, 2013 meeting minutes of the Sonoma Clean Power Authority Board of Directors 10:12 A.M. Board Action: Approved as Recommended AYES: Susan Gorin, Mark Landman, Michael Kyes, Steve Barbose, Jake Ours, Robin Swinth, and Shirlee Zane ABSTAINED: Bruce Okrepkie III. BOARD MEMBER ANNOUNCEMENTS 10:13 A.M. None IV. PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA 10:14 A.M. None V. ADJOURN 10:15 A.M. The Board adjourned the meeting to October 17, 2013 at 8:45 A.M. in the County of Sonoma Board Chambers, 575 Administration Drive, Room 102A, Santa Rosa, California. 4