1 CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL 2 PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA REPORTS AND INFORMATIONAL ITEMS

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1 IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee Regular Meeting: Monday, December 4, 2017, 6 p.m. IID BOARDROOMS 1285 Broadway, El Centro, CA Avenue 58, La Quinta, CA Web Access: NOTICE: For accommodations for persons with disabilities, please call the ECAC Coordinator at (760) Notifications received 48 hours in advance of the meeting will enable reasonable accommodations be made. ECAC Members Imperial Valley Division 1 Jeffrey Plourd Thomas Brinkerhoff Division 2 Shorty Hickingbottom Gil Perez Division 3 Gerald Gauna Eric Reyes Division 4 Guillermo Hermosillo Chad Cooper Division 5 Michael Anderson Esther Gomez Agenda 1 CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL 2 PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA Statement of Procedures: This is a public meeting and the time for public comment. At this time, you may be heard on any item not listed on the agenda. If you wish to address the committee, please come to the microphone and state your name and address for the record. The chair reserves the right to limit the speaker s time and we request you limit your remarks to no more than five minutes. The comment period will be limited to 10 minutes. Please note, the committee may make a recommendation on any item on the agenda. CONSENT AGENDA 3 Minutes of the ECAC Regular Meeting of November 6, ECAC Attendance Report YTD November Coachella Valley City of Coachella Philip Bautista Arturo Aviles City of Indio Lupe Ramos Watson Brian Macy City of La Quinta Steve Sanchez George Christopher County of Riverside Becky Broughton Patricia Saleh Steven Bayard ACTION ITEMS 5 Selection of Officers (Chairwoman Ramos Watson) 9 6 Proposed 2018 Meeting Schedule (Committee) 16 7 Energy Rewards Revised AC Rebates (C. Vasquez) 18 REPORTS AND INFORMATIONAL ITEMS 8 Customer Assistance Programs Year-to-Date Update (R. Fugett) 19 9 Energy Department General Matters (V. Kasarjian / T. Allegranza) Member Comments 11 Next Meeting: January 8, Adjournment Cities of Palm Desert & Rancho Mirage Joel Montalvo For more information, please visit or contact: Rosa Maria Gonzales rmgonzales@iid.com O: M:

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3 1 IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee Meeting Minutes of November 6, 2017 IID Boardrooms: 1285 Broadway, El Centro / Avenue 58, La Quinta 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL Chairwoman Lupe Ramos Watson called the meeting to order at 6:01 p.m. and the Pledge of Allegiance was recited. The following members were present: El Centro Vice Chair Michael Anderson, Esther Gomez, Guillermo Hermosillo, Shorty Hickingbottom, Gil Perez and Jeffrey Plourd La Quinta Phillip Bautista, Becky Broughton, George Christopher, Brian Macy, Joel Montalvo, Patricia Saleh and Steve Sanchez Members Arturo Aviles, Steven Bayard, Thomas Brinkerhoff, Chad Cooper, Gerald Gauna and Eric Reyes were absent. 2. PUBLIC COMMENT There was no public comment CONSENT ITEMS ACTION: Motion by Ms. Gomez and second by Mr. Hermosillo to approve the consent items consisting of the ECAC Meeting Minutes of October 2, 2017, the October 2017 Year-to-Date Attendance Report and the Budget and Strategic Planning Subcommittee Meeting Minutes of October 16, Motion carried unanimously DRAFT BUDGET PLAN Ms. Belen Valenzuela, chief financial officer, recounted the budget presentations made to the board, the public and the committee and offered to go through the PowerPoint presentation and answer additional questions. Referring to Page 16 of the agenda, Mr. Perez asked for the meaning of Strain on unrestricted cash levels, Coachella Valley Water District settlement payment of $11 million. Ms. Valenzuela revealed an unplanned settlement with CVWD resulted in IID issuing a check in Mr. Perez questioned why the [CVWD settlement] was listed with revenues rather than expenditures. Ms. Valenzuela acknowledged the item might be better placed with expenditures; however, the item is listed with Base Rate Revenues and Cash Levels as the strain will be seen in 2018, some of which will be driven by the unplanned payment to CVWD. Mr. Perez also inquired about the carryover for the [ensuing] year. Referring to the 2017 Projected Actual on Page 18, Ms. Valenzuela articulated that expenditures are $20.3 million greater than revenues with no carryforward, using the prior year s carryforward to help fund the deficit. Mr. Perez asked how much of the $605 million in revenues is carryover from Ms. Valenzuela explained there is no carryover with the balanced 2018 budget; the total expected revenue and funding sources are $606 million, which will be matched against the expenditures for that year. Mr. Perez pressed whether an overage is reflected and Ms. Valenzuela reiterated there is no overage anticipated as the 2016 carryover will be transferred to fund the 2017 Projected Actual. Mr. Perez remarked he has not seen a year in which the district did not end up with a balance of unexpended revenues and questioned the amount expected to carry over to Ms. Valenzuela restated the 2017 Projected Actual outlines $529 million in revenues, total expenditures of $525 million and the prior years Other Post-Employment Benefits liability of about $23 million, which results in no carryforward, but a $20 million deficit, which will be funded by 2016 s carryforward. Mr. Perez said he did not believe that which Ms. Valenzuela stated as it has never occurred previously then he asked Mr. Kasarjian if he would be spending all that which is budgeted this year. Mr. Kasarjian explained the board approved last year an OPEB funding

4 mechanism to fund employees retirement health benefits, which had not been previously done. The underfunding is primarily due to the OPEB amount of $23 million, which the district is mandated to fund. He voiced his personal concern is 2019, given IID s expenses, settlements and generation issues that are putting pressure on finances. Looking at income versus expenses, IID has about $4 million in surplus, which is committed to help fund almost $24 million for OPEB liability, taking the organization into the negative and requiring a $20 million fund transfer from 2016 to stay balanced, he said. Basically, the answer is there is no carryover to 2018, he concluded. Chairwoman Ramos Watson asserted that the subcommittee has recommended the ECAC accept the draft budget proposal and she invited members of the Budget and Strategic Planning Subcommittee to speak. She expressed hope the committee members would look toward the subcommittee for guidance in moving the item forward. Ms. Gomez recapped the subcommittee meeting in which Ms. Valenzuela pointed out several items, but there were few questions from the members; however, the group understood the budget was balanced and restricted in the sense that [revenues] coming in would be going out with no carryover as in prior years. Chairwoman Ramos Watson remarked that the proposed budget is a more conservative approach than seen in years past and is very balanced and transparent. Mr. Christopher asked if there had been changes, such as the cancellation of contracts, since the budget was reviewed. He referred to a recent news item that mentioned the cancellation of a $9 million contract or possibly the SunPeak purchase. Mr. Kasarjian stated money for the $9 million contract, which has been in the news of late, is spent. He revealed the contract is one of the most expensive IID has with an option to purchase and the open period for negotiating is February through October The district has not committed to procuring the facility, but whatever is done would be brought to the committee, he assured. Mr. Christopher inquired if [SunPeak] is simply a placeholder in the budget. Mr. Kasarjian confirmed the big ticket item is a placeholder. Mr. Macy stated he thought staff did a great job of capturing the intent of questions and had nothing to add. Chairwoman Ramos Watson summarized that the budget has been on parade since October 2 and workshops were held October 3, 10 and 24 in El Centro and La Quinta so the community and advisory committee had ample opportunity to educate/inform themselves about the budget. She outlined the budget highlights listed on Page 16 and stressed that the subcommittee was confident with the answers to their questions. She also offered options to the committee, including making a recommendation to the board to adopt the budget, getting up to speed with a staff member, or setting another meeting if a collective group of members needs more information. At this point, the committee needs to make a decision to let the board know where they stand, she concluded. Mr. Perez asked what OPEB liability means and Ms. Valenzuela replied that it is Other Post-Employment Benefits and explained the district keeps account of OPEB, but was marking the cash in Unrestricted Cash; however, the board made a decision to create an irrevocable trust where the money would be placed to start funding itself. Energy will make an annual required contribution plus the prior years liability catch-up provision of $5 million in years with sufficient cash, she stated. The district transferred about $19 million from the Southern California Public Power Authority Projects Stabilization Fund to help fund prior years OPEB liability plus the Unrestricted Cash marked for OPEB, she said. Mr. Perez commented that funding only $5 million of the $23 million [liability] did not make sense to him. Ms. Valenzuela explained there is an annual required contribution plus the unfunded prior years liability, which IID has a five-year plan to put into a trust. Mr. Perez asked what would occur if the liability became $50 million. Ms. Valenzuela reported the plan is to advise the board and recommend funding the prior years liability based on cash levels. She said the goal is to follow the Government Accounting Standards Board requirement of an irrevocable trust for OPEB with an annual required contribution and the funds for prior years liability based on cash availability. Mr. Perez inquired if [the balance] would be $18 million next year and Ms. Valenzuela said there is about $50 million in the fund. The only way the district will get credit by the GASB is if the funds are placed in an irrevocable trust and marked for OPEB, she added. 2 ECAC Regular Meeting Minutes of November

5 ACTION: Motion by Ms. Gomez and second by Ms. Broughton to accept the recommendation of the Budget and Strategic Planning Subcommittee for board approval of the proposed 2018 Energy Department operating and capital budgets. Motion carried unanimously. Chairwoman Ramos Watson thanked staff for the overall understandability of the budget and the historical perspective offered, which made the budget easy to digest, hence the reason for few questions. She said the budget was done with full disclosure and transparency, which was appreciated at the subcommittee level and she was thankful the full advisory committee took the subcommittee s recommendation. 7. SRFP 261, TREE TRIMMING AND SUBSTATION LANDSCAPE MAINTENANCE Mr. Matthew MacDonald, assistant manager, Distribution Services and Maintenance Operations, explained that he would present two very similar, but distinct proposals created by splitting the current vegetation contract for transparency and oversight [purposes]. He said Secondary Request for Proposal 261 replaces the current contract for substation and line clearance and he outlined the numerous responsibilities listed on Page 23. He recommended the contract be awarded to Utility Tree Service at a value of $5 million for a three-year term. ACTION: Motion by Mr. Hermosillo and second by Mr. Christopher to recommend board approval of a three-year service agreement with Utility Tree Service for tree trimming and substation landscape maintenance. Motion carried unanimously. 8. SRFP 286, TRANSMISSION VEGETATION MANAGEMENT Mr. MacDonald reported the second contract for SRFP 286 covers the systematic mowing and removal of trees and brush that threaten the bulk electric system lines of 230kV and above in compliance with the Federal Energy Regulatory Commission and the Western Electric Coordinating Council. The three-year, $2 million contract with Utility Tree Service requires less [personnel] as it primarily looks at the five bulk electric lines within the IID system. Again, UTS is the lowest-cost, best-value candidate, he said. Mr. Macy inquired if the contracts are based on requests for proposals of pre-qualified vendors or a cost-based RFP for the two contracts received. Mr. MacDonald stated it was an RFP in which five contractors showed interest, but only two submitted proposals. Mr. Macy also asked about the other vendor and Mr. MacDonald indicated a second vendor was considered, but UTS, which is now on property, was the lowest-cost, best-value bidder as determined by the criteria. Mr. Christopher inquired when the service transferred from direct management by IID staff versus outsourcing to contractors. Mr. MacDonald said he did not know when the transition occurred, but he was aware of at least half dozen or more contracts, each for a three-year term. With the district 30 years, Mr. MacDonald recalled IID s tree trimming crews, many of whom later became linemen. Mr. Christopher asked if he saw the work re-transitioning to employees. Mr. MacDonald conveyed the issue could be considered, but IID gets good value due to the unique machinery operated by the contractor and most utilities have vegetation contractors. ACTION: Motion by Mr. Montalvo and second by Mr. Macy to recommend board approval of a three-year service agreement with Utility Tree Service for transmission vegetation management. Motion carried unanimously. 9. MWA/CSP / , CITY OF COACHELLA Mr. Carlos Vasquez, interim deputy manager, Planning and Engineering Section, reported the IID is undergrounding the 12.5kV power lines for the City of Coachella s project, which is located on Avenue 48 and Van Buren Street. Engineering and construction will be completed by IID and the City of Coachella will fully fund the customer service proposal project, he said. Mr. Bautista requested the timeline. Mr. Vasquez advised the project is in the CSP process and with board approval would be started by year s end. Once engaged, the project should be completed shortly thereafter with some possible carryover into 2018, he conveyed. Chairwoman Ramos Watson noted there was no mention of payment of the City of Coachella s project and asked whether the applicant paid. Mr. Vasquez said the City of Coachella has not paid to his knowledge; however, once the project is approved on the IID side, the customer will fully fund the project before the district proceeds. Mr. Vasquez explained the project is a CSP over $200,000, so staff must present the item to the ECAC and to the board for information and action. 3 ECAC Regular Meeting Minutes of November

6 ACTION: Motion by Vice Chair Anderson and second by Mr. Hermosillo to recommend board approval of the major work authorization associated with Customer Service Proposal / for the City of Coachella. Motion carried unanimously. 10. MWA/CSP / , MECCA TRAVEL CENTER Mr. Vasquez reported the scope of work for the Mecca Travel Center is undergrounding distribution lines located at Avenue 44 near Highway 86. The project is a typical CSP, which staff will engage once the project is approved and paid. The total cost is $321,000, which will be funded by the Mecca Travel Center. Chairwoman Ramos Watson asked if the applicant applied under the name Mecca Travel Center, which is in Mecca. Mr. Enrique De Leon, interim assistant energy manager, related that the customer [typically] applies in such fashion, using names repeatedly. Vice Chair Anderson asked if an Indio site would be happy being called Mecca. Mr. De Leon expressed uncertainty whether the name was submitted solely for the application and about the final label of the project. Mr. Kasarjian questioned whether projects could adequately be tracked with a common name. Mr. Vasquez said staff would give the project a unique identifier. ACTION: Motion by Ms. Broughton and second by Mr. Macy to recommend board approval of the major work authorization associated with Customer Service Proposal / for the Mecca Travel Center. Motion carried unanimously. 11. MWA/CSP / , THE DIAMOND COAST PROPERTIES/ENTERPRISE INDUSTRIAL PARK Mr. Vasquez reported that The Diamond Coast Properties Project is similar to the previous projects in which IID is undergrounding an overhead distribution line. The project is located on Dr. Carreon Boulevard in Indio and has been paid by the customer. The total project cost is $251,000. Mr. Montalvo observed the projects are located in the same area and asked if IID is able to coordinate projects to maximize crews. Mr. Vasquez said staff is coordinating 2018 capital projects among most groups; for example, staff coordinates construction crews with Mr. Matt MacDonald and schedules outages with System Operations and the System Operations Center. IID accommodates customer-driven projects and tries to maximize scheduling to leverage resources as they are mobilized in the field. Ms. Broughton remarked that the map could be more specific. ACTION: Motion by Mr. Plourd and second by Mr. Montalvo to recommend board approval of the major work authorization associated with Customer Service Proposal / for The Diamond Coast Properties Project. Motion carried unanimously. 12. ENERGY DEPATMENT GENERAL MATTERS The Energy Department s management briefed the committee on the projects listed below: egreen Update: Mr. Vicken Kasarjian, energy manager, updated the committee on the egreen project on behalf of the general manager. He said there is no board document yet given the board recently cancelled the egreen 60-megawatt project. Staff has been feverishly working to bring [an item] for 100 percent of the low-income community. He is motivated to declare lowincome [customers] are 100 percent solar powered and take a significant credit to IID across its footprint. Mr. Kasarjian said staff is working in conjunction with the Water Department to find 200 acres of land with enough grid capacity to interconnect 30 MW of solar to be allocated to IID s 15,000 low-income customers then take the next steps. Ms. Saleh voiced that she previously requested an update on the community solar project. Mr. Kasarjian mentioned that IID is using the egreen lexicon to explain the community solar [program] as there is a litigious matter tied to those words. Ms. Saleh asked if there was anything for the general [customer base]. Mr. Kasarjian replied that IID is taking one phase at a time. Other utilities have built solar farms in which other ratepayers can participate either by formula, auction or purchase. Energy s intention is to maintain momentum and bring [an item] that covers low-income first then take the next needed steps. Ms. Saleh questioned whether [the program] would be [offered] throughout IID s territory and asked about the timeframe. Mr. Kasarjian said about 15,000 low-income customers or 10 percent [of the customer base] is low income, then staff will move on to the next phase, but he had no timeframe. 4 ECAC Regular Meeting Minutes of November

7 Chairwoman Ramos Watson inquired if the global community solar concept has the same litigious connotation previously referenced. Mr. Kasarjian affirmed and said it was his understanding legal cases are tied to the [name], hence the use of the egreen lexicon. 5 Audiovisual System Update: Mr. Tony Allegranza, energy operations manager, reported he received offline questions about the technical issues experienced with the audiovisual system, which communicates between Imperial and Coachella valleys. He advised that IID s Information Technology Department has been upgrading the system since He recounted a contractor was hired to make recommendations and staff received approval to upgrade [the system], starting with the El Centro boardroom. Due to technical difficulties, the La Quinta side has not been addressed, but will be next, he asserted. He acknowledged the issue has been frustrating for everyone involved, especially IT personnel, and he apologized for the problems. Mr. Allegranza assured the committee that staff is working on the issue, bearing in mind staff must [heed] the approved budget. Chairwoman Ramos Watson thanked him for the update and said the group is elated to have a system as the committee remembers the dark ages when members had to travel back and forth. She assured him the committee would be patient. Worst-Performing Circuits: In response to a request at the previous meeting for an update of the worst-performing circuits, Mr. Vasquez reported that of the five worst performing circuits in Coachella Valley, three are in process (Shields, Carreon and Avenue 58 substations); the Mecca Substation circuit is complete; and the Van Buren circuit will be reconfigured in In Imperial Valley, the top five worst-performing circuits are from Terminal, Pruett, Holtville, Calipatria and Salton City substations, he related. He informed that the Holtville Substation project has an MWA in process; Calipatria Substation is scheduled for 2018; and the Salton City Substation circuit is complete. Staff is coordinating capital improvement projects with Mr. MacDonald s line construction crews and the 2018 master schedule lines up and mobilizes crews efficiently and effectively with minimal impact to the customer, he concluded. Vice Chair Anderson thanked Mr. Vasquez for bringing the information forward, as requested. Ms. Broughton commented that the new Mecca Substation improved the quality of service greatly and she asked if the substation also serves North Shore. Mr. De Leon replied that one circuit from North Shore Substation covers that area, but a 2018 capital project aims to provide a second circuit, which will reduce the number of customers affected during an outage. Ms. Broughton said she hears from those on North Shore s edge more than those who live in town and she thanked the staff. 13. MEMBER COMMENTS Ms. Gomez thanked staff for the tour of the battery energy storage facility, which was very informative and visual. In light of the Northern California fires and a recent news article regarding possible involvement by Pacific Gas and Electric s circuit breakers, Mr. Christopher inquired whether IID has the same liability issues with the type of circuit breakers that trip, sequence and possibly cause fires. Mr. Vasquez said IID is not impacted, but will have a capital project to mitigate that risk, if it is. Mr. Christopher asked if IID has the same type of circuit breakers on its high-[voltage] lines. Mr. Vasquez answered in the negative. Ms. Saleh expressed her wish for the installation of a directional sign on the large pole located at Avenue 58 and Monroe Street. Mr. Vasquez said staff would look into the easement for the sign. Chairwoman Ramos Watson, stated that as a city representative she receives various requests for meetings with solar industry developers. Although the large-scale solar projects are proposed outside of the city, developers seem to want the support of her city, she said. She expressed she knew they are not coming online to affect the IID, but her question to each of them is whether they have spoken with the district as the balancing authority for the area, but more often than not, their response was no. She inquired if she was wrong to ask if IID would want to know about large-scale projects coming into the area, even though they may not affect distribution or the balancing authority. Mr. Vasquez voiced that any large-scale solar project, even outside of IID s balancing authority, would [result] in the district being an affected system. Most likely these projects have not made it on the list where IID is identified as an affected system, but the district would eventually find out through the process. He encouraged members to refer developers to him as IID would be an affected system if they are adjacent to the balancing authority. ECAC Regular Meeting Minutes of November

8 Chairwoman Ramos Watson advised that staff is available to ECAC members between meetings so they may feel free to contact staff. Not all questions need to be asked in the meeting and she invited members to contact staff if they have general questions or need more information on an item on/off the agenda. She commented about the wonderful press in Imperial and Coachella valleys that love to write stories with only half the information. She asked that members contact Ms. Gonzales, who can direct members to the appropriate staff members so questions will be answered. She assured it is best to be informed rather than caught by surprise and it is the members responsibility to share information with constituents. Chairwoman Ramos Watson announced the ECAC will select officers next month so if any member wishes to rise to the top of the committee, please share those desires with Ms. Gonzales, who forward names for consideration. 14. NEXT MEETING The next meeting of the ECAC will be held Monday, December 4, ADJOURNMENT There being no further business, the meeting was adjourned at 7:12 p.m. 6 ECAC Regular Meeting Minutes of November

9 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report 7 TO: FROM: ECAC Members Rosa Maria Gonzales, ECAC coordinator SUBJECT: ECAC Attendance Report Year-to-Date November 2017 DATE: December 4, 2017 Staff Recommendation/Motion Staff recommends approval of the ECAC Attendance Report Year-to-Date November Financial Analysis None. Background Committee member attendance is recorded at each meeting as a matter of record in ensuring a quorum was present to conduct the business affairs of the group.

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11 ECAC Attendance Report Year-to-Date November 2017 Seat Name/Division or Jurisdiction (Re)Appt Term End Jan 9 Feb 6 * Mar 6 * Apr 3 May 1 Jun 5 Jul 17 Aug 7 * Sep 11* Oct 2 Nov 6 Dec 4 Division 1 - Juanita Salas 1 Mr. Jeffrey Plourd Dec 2015 Dec Mr. Thomas Brinkerhoff Dec 2016 Dec 2020 Division 2 - Bruce Kuhn 1 Mr. Shorty Hickingbottom Dec 2015 Dec Mr. Gil Perez Feb 2013 Dec 2017 Division 3 - James Hanks 1 Mr. Gerald Gauna Dec 2015 Dec Mr. Eric Reyes Feb 2014 Dec 2017 Division 4 - Erik Ortega 1 Mr. Guillermo Hermosillo Jan 2017 Dec Mr. Chad Cooper Jan 2017 Dec 2017 Division 5 - Norma Sierra Galindo 1 Mr. Michael Anderson Dec 2014 Dec Ms. Esther Gomez Dec 2016 Dec 2020 City of La Quinta 1 Mr. Steve Sanchez Jan 2017 Dec Mr. George Christopher Jan 2017 Dec 2020 City of Coachella 1 Mr. Philip Bautista Jan 2017 Dec Mr. Arturo Aviles Jan 2017 Dec 2020 City of Indio 1 Ms. Lupe Ramos Watson Dec 2015 Dec Mr. Brian Macy Dec 2013 Dec 2017 County of Riverside 1 Ms. Becky Broughton Jan 2015 Dec Ms. Patricia Saleh Dec 2015 Dec Mr. Steven Bayard Jan 2017 Dec 2020 Cities of Palm Desert / Rancho Mirage 1 Mr. Joel Montalvo June 2016 Dec 2017 * Denotes meeting was cancelled.

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13 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report 9 TO: FROM: SUBJECT: ECAC Members ECAC Chairwoman Lupe Ramos Watson Selection of Officers DATE: December 4, 2017 Staff Recommendation/Motion: Chairwoman Lupe Ramos Watson will open nominations for committee officers for the ensuing year. Financial Analysis: None. Background: In accord with Section 3.02 of the ECAC Bylaws, Each year at its regular meeting in December, the Committee shall select officers and reorganize itself as required by these Bylaws. Further, Section 4.02 of the ECAC Bylaws states, The chairperson and vicechairperson shall alternate each year between Imperial Valley and Coachella Valley. Elections shall be by a majority vote of those attending the annual meeting, a quorum being present.

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15 10 IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee Bylaws ARTICLE 1. PURPOSE Section 1.01 The purpose for which the Energy Consumers' Advisory Committee is organized is to provide advice and recommendations to the Board of Directors of the Imperial Irrigation District (the Board) concerning certain issues to be addressed by the Board, regarding fiscal, strategic planning, and IID Board policy matters, to the extent such matters affect the Energy Department. ARTICLE 2. APPOINTMENTS Section 2.01 Section 2.02 Section 2.03 The Committee shall consist of twenty (20) members, all of whom shall have equal voting privileges. Ten of these members shall reside in the Coachella Valley service area, and ten of these members shall reside in the Imperial Valley Service area. The Coachella Valley service area is that portion of the IID electrical service area that is north of Salton City and outside of the district boundaries of the IID. Each Imperial Irrigation District Director shall appoint two members to the Committee from people residing within the Imperial Valley service area. Ten (10) members shall be appointed from the Coachella Valley as follows: six members are to be nominated by the city councils of La Quinta, Indio and Coachella (two appointments each); one member to be jointly nominated by Palm Desert and Rancho Mirage; and three members to be nominated by the County of Riverside Board of Supervisor District 4 (County). All members must reside within the IID s electrical service area. One (1) District representative shall be appointed by the Imperial Irrigation District's General Manager and shall serve as Coordinator to the Committee members. The General Manager, in an effort to ensure compatibility, will work closely with the Committee's Chairperson in appointing the Coordinator. The Coordinator shall serve at the will and pleasure of the Imperial Irrigation District's General Manager. ECAC Bylaws (Adopted February 4, 2013) Page 1

16 11 Section 2.04 Section 2.05 A four year staggered term cycle shall be established such that one quarter of the Committee membership is replaced or reappointed each year. As such, the Committee shall be divided into four equal groups, with each group to serve a distinct staggered four year term. Once the four year staggered term cycle is established, the respective Director, City Council or County Supervisor shall appoint or reappoint a qualified person for a four-year term. In the event a member resigns or for some other reason is unable to complete his/her term of appointment, that seat will be filled for the remainder of the term by appointment of the respective Director, City Council or County Supervisor responsible for filling that seat. In the event a Director, City Council or County Supervisor chooses to appoint a person who has previously been removed from the Committee for cause, ratification of the appointment by a majority vote of the Committee is required. When a member of the Board leaves office, his/her successor may replace or reappoint Committee members appointed by their predecessor for the unexpired term of the Committee incumbent. If any member fails to attend three (3) consecutive Committee meetings or five (5) meetings in any year during his or her term of office, his or her position may be declared vacant by a majority of the remaining members of the Committee making up a quorum at a regularly scheduled meeting of the Committee. For purposes of this section, failure to attend non-regularly scheduled meetings shall not be counted. Further, by a vote of the majority of the remaining members, the Committee may recommend to the respective Director, City Council or County Supervisor the removal of a member for cause. ARTICLE 3. MEETINGS Section 3.01 Section Section Meetings of the Committee shall be held, alternately, in the Imperial Irrigation District's William R. Condit Auditorium at 1285 Broadway, EI Centro, California and in Imperial Irrigation District Board Room, Avenue 58, La Quinta, California. If either of these locations becomes unavailable on the designated meeting night, the Chairman may choose an alternate location and advise all Committee members of the alternate meeting location. Each year at its regular meeting in December, the Committee shall select officers and reorganize itself as required by these Bylaws. In such case as a sitting officer is unable to carry out his duties, a replacement shall be elected by a majority vote of those present at the next regularly scheduled meeting with a quorum present. Regular meetings shall be held on the first Monday of each month, at ECAC Bylaws (Adopted February 4, 2013) Page 2

17 12 a time specified by the Committee, unless such day falls on a legal holiday, in which event the regular meeting for that month shall be held at the same hour and place on the following week provided a quorum will be present. Section Section Section Section Special meetings of the Committee may be called by the chairperson, or, in his or her absence, the vice-chairperson, or by a majority of the members of the Committee. Special meetings shall be held at the Committee's regular meeting places, alternating between the Coachella facility and the Imperial facility. Notices of an agenda for each regular and special meetings of the Committee shall be mailed to each member and advisor no later than the Friday immediately preceding each regular meeting and no later than 72 hours preceding each special meeting. Minutes of any preceding meeting will be included in the packet if available at the time of mailing. All full meetings shall be held in compliance with the requirements of the Ralph M. Brown Act (Chapter 9, Division 2, Title 5 of the Government Code), and shall be open and public unless otherwise authorized by law, or herein. A quorum shall consist of a majority of the members of the Committee. In the absence of a quorum, a meeting of the Committee may be adjourned from time to time by vote of a majority of the members present, and no other business shall be transacted, however, the meeting may continue only for informational purposes. ECAC Bylaws (Adopted February 4, 2013) Page 3

18 13 Section Section Section 3.10 Each member is entitled to one (1) vote on each matter submitted to the meeting. Voting shall be by voice vote, unless a member demands a roll call vote, in which event the Coordinator shall call the roll and duly record the votes of each Committee member. There shall be no voting by mail or proxy voting. Meetings of the Committee shall be presided over by the chairperson, or, in his or her absence, the vice-chairperson, or in the absence of both, by a chairperson chosen by a majority of the members present. Meetings shall be governed by the IID Board of Directors Governance Manual (revised 12/18/07), Policy Number G-8, Rules of Order for Board, insofar as such Rules are not inconsistent with or in conflict with these Bylaws. All full Committee meetings shall be open to the public and allow for public comment with a limitation of five (5) minutes per speaker. ARTICLE 4. OFFICERS Section Section Section Section Section 4.05 The officers of the Committee shall be a chairperson and a vicechairperson. The Committee shall elect the chairperson and vice-chairperson annually from its members. The chairperson and vice-chairperson shall alternate each year between Imperial Valley and Coachella Valley. Elections shall be by a majority vote of those attending the annual meeting, a quorum being present. Officers may be removed from that position with cause, by a majority vote of the Committee, at any meeting in which a quorum is present. The chairperson shall preside at all meetings of the Committee, and shall, as required, serve ex officio as a member of all standing subcommittees of the Committee. In the absence of the chairperson, or in the event of his/her inability or refusal to act, the vice-chairperson shall perform all duties of the chairperson, and when so acting shall have all powers of and be subject to all restrictions on the chairperson. A recording secretary appointed by the Imperial Irrigation District will be responsible for recording the proceedings of said meetings submitting said minutes to the Committee for approval. The recording secretary shall also be responsible for maintaining the originals of the Bylaws, as well as amendments or any other alterations, after ECAC Bylaws (Adopted February 4, 2013) Page 4

19 14 approval by the Board of Directors and shall be maintained at the IID, together with the book of minutes of all meetings of the Committee. The minutes of the meetings shall include the time and place of the meetings whether it be a regular or special meeting and of the proceedings conducted at said meetings. Section 4.06 Section 4.07 The Coordinator shall be responsible for the giving of all notices in accordance with the provisions of these Bylaws or as required by law and the coordination of distributing presentation documents. The chairperson, with the advice of the Committee members, will coordinate the preparation of the agenda with the Coordinator so that appropriate notice can be given to the Committee, support staff, and as required by law. All agenda items must be approved by the IID Energy Manager or General Manager. ARTICLE 5. MISCELLANEOUS PROVISIONS Section Section Section Committees. The Committee, from time to time, may designate two or more of its members to investigate and report on such matters as the Committee deem appropriate. Committee appointees shall constitute either ad hoc subcommittees (appointed to investigate and report on a specific, non-recurring matter) or standing subcommittees (appointed with continuing responsibilities on specific, recurring matters). Without prior authorization by the Committee, no subcommittee action will be presented to the Board unless approved by a vote of the Committee itself. Budget and Strategic Planning Subcommittee. Without limitation, one of the standing subcommittees to be appointed by the Committee shall be the Budget and Strategic Planning Subcommittee. This Subcommittee shall consist of five members, two each from Imperial and Coachella valleys and the Committee chairperson, who shall work with the IID Board, annually, in reviewing the Energy Department budget and related strategic planning. This Subcommittee shall submit its recommendations to the full Committee and if no further review is necessary, the full Committee will submit its recommendation directly to the IID Board. Presentation Format. Items submitted to the Committee shall be in an executive summary format which includes: (1) a clear statement of the problem or definition of the work, (2) all alternatives for completing the work or solving the problem, (3) a cost benefit analysis for each alternative, and (4) staff's recommendation which shall include all reasoning and assumptions. ECAC Bylaws (Adopted February 4, 2013) Page 5

20 15 Section 5.04 Section Section Section 5.07 Section 5.08 Section 5.09 Section 5.10 Section 5.11 Committee Analysis. Issues to be brought to the Committee shall include: (1) budget and budget amendment issues, (2) strategic planning issues, (3) policy issues to the extent they affect the Energy Department, and (4) Energy rate structure issues. Fiscal Year. For purposes of these Bylaws, the business of the Committee shall be conducted on a fiscal year basis commencing January 1 of each year. All terms of office shall be deemed to begin on January 1 and end on December 31. Compensation or Expense Reimbursement. Members shall receive no compensation, salary, or other stipend for their service as members. Expenses incurred by members, if any, in connection with their service, shall not be reimbursed unless pre-approved by the IID and in accordance with IID policy. Expenses may include mileage reimbursement to and from Committee meetings and/or tours (reimbursed at the maximum allowed by the Internal Revenue Service at the time of travel) or expenses incurred while attending energy conferences. Committee Minutes and Communications. Copies of all minutes of the Committee meetings will be forwarded, upon preparation, to all members of the Imperial Irrigation District Board. Any other communications with the Board of Directors by the Energy Consumers Advisory Board shall be in writing, approved by a majority of those present at the Committee meeting at which the statement or report is prepared. Reports to the IID Board shall include a minority report at the request of any member voting in the minority. Effective Date of Bylaws and Amendments. Bylaws shall become effective upon their adoption by the Imperial Irrigation District Board of Directors. Amendments may be recommended by the Committee, by a majority vote, for approval by the Imperial Irrigation District Board of Directors. Construction. As used in these Bylaws the masculine gender includes feminine and neuter, singular number includes the plural, and the word "shall" is mandatory and the word "may" is permissive. The Bylaws shall be reviewed at a minimum of every three years. No actions expressing Committee opinions will be presented by the Committee unless approved by the IID Board of Directors. ECAC Bylaws (Adopted February 4, 2013) Page 6

21 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report 16 TO: FROM: SUBJECT: ECAC Members Rosa Maria Gonzales, ECAC coordinator Proposed 2018 Meeting Schedule DATE: December 4, 2017 Staff Recommendation/Motion: Staff seeks the committee s approval of the proposed 2018 meeting schedule. Financial Analysis: None. Background: The proposed 2018 meeting schedule was developed in accord with Section 3.03 of the ECAC Bylaws, which states: Regular meetings shall be held on the first Monday of each month, at a time specified by the committee, unless such day falls on a legal holiday, in which event the regular meeting for that month shall be held at the same hour and place on the following week provided a quorum will be present.

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23 17 IMPERIAL IRRIGATION DISTRICT Energy Consumers Advisory Committee 2018 Member Roster and Meeting Schedule Members Imperial Valley Division 1: Juanita Salas Jeffrey Plourd Thomas Brinkerhoff Division 2: Bruce Kuhn Shorty Hickingbottom Gil Perez Division 3: James C. Hanks Gerald Gauna Eric Reyes Division 4: Erik Ortega Guillermo Hermosillo Chad Cooper Division 5: Norma Sierra Galindo Michael Anderson Esther Gomez Coachella Valley City of Coachella Philip Bautista Arturo Aviles City of Indio Lupe Ramos Watson Brian Macy City of La Quinta Steve Sanchez George Christopher Cities of Palm Desert & Rancho Mirage Joel Montalvo County of Riverside Becky Broughton Patricia Saleh Steven Bayard About the Committee The Energy Consumers Advisory Committee provides advice and recommendations to the IID s Board of Directors concerning issues to be addressed by the board on fiscal, strategic planning and policy matters that affect the Energy Department and its customers. Twenty individuals who reside within the IID service territory comprise the ECAC. Two Imperial Valley members are appointed by each director representing the five divisions of the IID Board of Directors; whereas, Coachella Valley members are appointed by the jurisdictional entities they represent, then ratified by the board. Meeting Schedule and Locations All ECAC meetings are open to the public and held the first Monday of the month, except holidays. The standard meeting time is 6 p.m. Meeting agendas and live and recorded meetings can be accessed at January 8 February 5 March 5 April 2 May 7 June 4 July 2 August 6 September 10 October 1 November 5 December 3 Imperial Valley Bill Condit Auditorium 1285 Broadway El Centro, CA Coachella Valley Meeting schedule subject to change. IID Boardroom Avenue 58 La Quinta, CA For more information, please contact the ECAC Coordinator at ECAC@iid.com or (760)

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25 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report 18 TO: FROM: SUBJECT: ECAC Members Carlos Vasquez, interim deputy manager, Planning & Engineering Section Revised Air Conditioner Rebates Energy Rewards Program DATE: December 4, 2017 Staff Recommendation/Motion: Staff requests that the committee receive and file the 2018 Energy Rewards rebate levels for air conditioner units. Financial Analysis: Addition of a Tier 3 rebate is estimated at $37,500 and is included in the $1.15 million proposed program budget allocated during the annual budgeting process. IID s energy efficiency programs are funded through the Public Benefit Charge. Background: Improvements in energy efficiency are among, if not, the cheapest and most environmentally friendly methods to address the problem of balancing the state s electricity demand and supply. Thus, existing law requires the California Energy Commission to adopt standards that prescribe minimum energy efficiency levels for buildings. As standards progress and become more stringent, incentives levels for energy efficiency programs must be adjusted accordingly. In light of current Title 24 codes and standards related to air conditioners, the district s 2018 Energy Rewards program will no longer offer rebates for units with a seasonal energy efficiency ratio of 14. However, a third tier level will be offered to provide incentives for units with a 17 SEER or higher efficiency rating. Tier 1 - $125 per ton Split Unit - 15 SEER, 12.5 EER (8.5 HSPF for heat pump) Package Unit - 15 SEER, 12 EER (8 HSPF for heat pump) Tier 2 - $200 per ton Split Unit - 16 SEER, 12.5 EER (8.5 HSPF for heat pump) Tier 3 - $300 per ton Split Unit - 17 SEER, 12.5 EER (8.5 HSPF for heat pump)

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27 Imperial Irrigation District Energy Consumers Advisory Committee Agenda Report 19 TO: FROM: SUBJECT: ECAC Members Robert Fugett, general superintendent, Customer Service Customer Assistance Programs Year-to-Date Update DATE: December 4, 2017 Staff Recommendation/Motion: Information item. Financial Analysis: Customer assistance programs are funded by a 2.85 percent Public Benefit Charge that is billed to all electric customers. During the first nine months of the current year, customer assistance programs have utilized percent of the total 2017 approved budget for said discounts. Background: Imperial Irrigation District provides two income-qualified assistance programs and one medically qualified assistance program designed to help customers meet their energy needs: 1. Residential Energy Assistance Program, which provides income qualified customers with a discount on their energy bill. 2. Emergency Energy Assistance Program, which offers financial assistance to customers facing disconnect for non-payment. 3. Medical Equipment Energy Usage Assistance Program, which reduces the electric bill for customers who use, prescribed in-home medical equipment to sustain life.

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29 20 Customer Assistance Programs 2017 Year-to-Date Update Robert N. Fugett General Superintendent, Customer Service December 4,

30 21 IID Public Benefit Charge Funded Programs 2

31 22 Month 2016 No. Customers REAP Totals 2017 No. Customers No. Customers Variance 2016 Actual Cost 2017 Actual Cost Actual Cost Variance Jan 14,014 13,828 (186) $ 275,669 $ 243,635 $ (32,034) Feb 15,097 13,178 (1,919) $ 267,207 $ 205,012 $ (62,195) Mar 12,670 11,727 (943) $ 164,045 $ 206,017 $ 41,972 Apr 13,782 12,725 (1,057) $ 242,196 $ 243,592 $ 1,396 May 13,714 12,550 (1,164) $ 286,769 $ 306,939 $ 20,170 Jun 13,675 12,205 (1,470) $ 463,849 $ 427,334 $ (36,515) Jul 13,651 12,104 (1,547) $ 649,266 $ 622,502 $ (26,764) Aug 13,816 12,120 (1,696) $ 714,070 $ 615,481 $ (98,589) Sep 13,962 11,572 (2,390) $ 639,474 $ 552,786 $ (86,688) TOTAL 13,820 12,445 (1,375) $ 3,702,545 $ 3,423,298 $ (279,248) Note: 1) Total number of customers equals average number of customers participating monthly year to date. 3

32 EEAP Totals 23 Month 2016 No. Customers 2017 No. Customers No. Customers Variance 2016 Actual Cost 2017 Actual Cost Actual Cost Variance Jan 14,014 13,828 (186) $ 275,669 $ 243,635 $ (32,034) Feb 15,097 13,178 (1,919) $ 267,207 $ 205,012 $ (62,195) Mar 12,670 11,727 (943) $ 164,045 $ 206,017 $ 41,972 Apr 13,782 12,725 (1,057) $ 242,196 $ 243,592 $ 1,396 May 13,714 12,550 (1,164) $ 286,769 $ 306,939 $ 20,170 Jun 13,675 12,205 (1,470) $ 463,849 $ 427,334 $ (36,515) Jul 13,651 12,104 (1,547) $ 649,266 $ 622,502 $ (26,764) Aug 13,816 12,120 (1,696) $ 714,070 $ 615,481 $ (98,589) Sep 13,962 11,572 (2,390) $ 639,474 $ 552,786 $ (86,688) TOTAL 13,820 12,445 (1,375) $ 3,702,545 $ 3,423,298 $ (279,248) Note: 1) Total number of customers equals average number of customers participating monthly year to date. 4

33 24 Month 2016 No. Customers MEEUAP Totals 2017 No. Customers No. Customers Variance 2016 Actual Cost 2017 Actual Cost Actual Cost Variance Jan $ 7,230 $ 8,457 $ 1,227 Feb $ 6,725 $ 7,258 $ 533 Mar $ 4,609 $ 5,420 $ 812 Apr $ 3,708 $ 3,913 $ 204 May $ 3,691 $ 4,200 $ 509 Jun $ 5,452 $ 6,179 $ 727 Jul $ 6,952 $ 8,044 $ 1,092 Aug $ 7,035 $ 7,816 $ 781 Sep $ 7,204 $ 7,472 $ 268 TOTAL $ 52,606 $ 58,759 $ 6,153 Note: 1) ) Total number of customers equals average number of customers participating monthly year to date. 5

34 Program Budgets 25 Customer Assistance Programs 2017 Budget REAP 5,060,000 EEAP 1,149,000 MEEUAP 75,000 Admin Cost 453,000 TOTALS 6,737,000 Sep 2017 YTD Actual Cost 2017 Actual Cost to Budget $ $ 3,423,298 $ 1,636,702 $ $ 863,874 $ 285,126 $ $ 58,759 $ 16,241 $ $ 227,741 $ 225,259 $ $ 4,573,671 $ 2,163,329 NOTES: 1) 42 percent of REAP customers are seniors (30 percent discount). 2) September 2017 YTD actual cost represents percent of the total 2017 budget 6

35 2016 REAP Participation/Expense by Area