Title
a. Receive an update on the Monterey Bay Community Power project; and
b. Provide direction to staff as appropriate.
Report
RECOMMENDATION:
It is recommended that the Alternative Energy & Environment Committee:
a. Receive an update on the Monterey Bay Community Power project; and
b. Provide direction to staff as appropriate.
SUMMARY:
This is a monthly status report on the Monterey Bay Community Power (MBCP) Project. On July 20, 2016, staff attended the MBCP Project Development Advisory Committee (PDAC) ad-hoc sub-committee meetings on governance and finance. Two key issues were raised as outlined below:
• Sufficient desire and interest from the twenty one jurisdictions to join a Community Choice Energy (CCE) Joint Powers Authority (JPA).
• Partnering jurisdictions may need to provide a guarantee to the $10.7 million working capital loan taken out by the CCE.
To address some of these issues, staff will schedule a meeting between the Monterey County CAO and City Managers to discuss their concerns and these topics.
The PDAC received a status update on the outreach plan for the MBCP. This update outlined the different forms of outreach and media that the contracted communications firm has been using to reach out to the communities of the tri-county area. Most of the outreach is focused on key stakeholders. Community education efforts will be focused after the JPA is formed.
On August 12, 2016, MBCP held a special study session at the City Hall in Monterey where staff from Monterey County’s Peninsula cities were in attendance. An Outreach Plan Implementation Status Report including a calendar of events was shared. (Attachment A)
DISCUSSION:
On July 20, 2016, staff from the Auditor-Controller’s Office, CAO-Budget & Analysis, CAO-IGLA and County Counsel attended the MBCP ad-hoc sub-committee meetings on governance and finance. In addition to County staff, representatives from the cities of Gonzales, King City, Marina, and Salinas were in attendance.
Several topics were covered for both governance options and finance with key issues raised as outlined below:
• Several attendees from different cities and counties had concerns about the ability for so many jurisdictions to work together and to agree upon a JPA structure that would satisfy all of the partnering jurisdictions’ needs.
• Partnering jurisdictions could be co-guarantors for the proposed $10.7 million bank loan needed to provide working capital. This bank loan is to support operations after JPA formation, but before customer revenue is generated. Further discussion will continue at the next set of ad-hoc sub-committee meetings scheduled for August 31, 2016 at the Marina Library.
Staff recommends a meeting with the County Administrative Officer and City Managers to discuss the possibility of joining the JPA and their concerns. Staff is working to schedule the meeting before the August 31 ad hoc Subcommittee meetings on governance and Finance.
At the PDAC meeting held on August 11, the PDAC was updated on the outreach and communications efforts of the project. Major updates included:
• Communications efforts will continue to focus on key stakeholder groups, such as community leaders, government entities, and religious groups.
• A video was created to educate the public, which has been shown on social media websites, the MBCP website, and email listservs.
• Community education efforts are planned to escalate after the JPA forms, which will inform the public about the CCE.
On August 12, County staff attended a special study session held at the City of Monterey’s City Council’s Chambers. This meeting was focused on educating the city staff in and around the Monterey Peninsula. Executive staff from the County of Santa Cruz discussed their County’s readiness to form the JPA and launch service by the proposed deadline of October 2017. It was reasserted that jurisdictions wishing to join the CCE make a decision by that deadline.
OTHER AGENCY INVOLVEMENT:
Various departments and executive leadership will be involved in the investigation, discussion, and formation of recommendations to the Board of Supervisors.
FINANCING:
Start-up costs are projected to be approximately $2.25 million to start a tri-county CCE. It has not been determined if any of the projected start-up costs will be contributed by Monterey County. It is also not clear at this time what type of funding or financing options are available should the County ultimately opt to join the JPA.
Prepared by: Dan Bertoldi, Sustainability Coordinator, CAO - IGLA
Approved by:
_______________________________
Nicholas E. Chiulos
Assistant County Administrative Officer
Attachments: MBCP Outreach Plan Implementation - Status Report