Executive Committee Meeting
Wednesday, March 5, 2025
3:00 pm
In Person:
Conference Room 5
Ava Community Energy
1999 Harrison St., Suite 2300
Oakland, CA 94612
Or from the following locations:
Hayward City Hall, 777 B St, Hayward, CA 94541
Balch Enterprises, Inc. – 30960 Huntwood Avenue, Hayward, CA 94544 Via Zoom:
https://avaenergy-org.zoom.us/j/88267670367
Or join by phone:
Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 or +1 253 215 8782 or +1 346 248 7799 or +1 301 715 8592 or +1 312 626 6799 or 877 853 5257 (Toll Free) or 888 475 4499 (Toll Free) Webinar ID: 882 676 70367
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906- 0491 or [email protected].
If you have anything that you wish to be distributed to the Executive Committee, please email it to the clerk by 5:00 pm the day prior to the meeting.
1. Welcome & Roll Call
2. Public Comment
This item is reserved for persons wishing to address the Executive Committee on any Ava Community Energy-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called.
As with all public comment, members of the public who wish to address the Committee are customarily limited to three minutes per speaker and must complete an electronic speaker slip. The Executive Committee Chair may increase or decrease the time allotted to each speaker.
Ava Community Energy
Executive Committee Page | 2
3. Approval of Minutes from February 5, 2025
4. Critical Municipal Facilities Update (Informational Item) Update on risks associated with CMF projects
5. Local Development Business Fund Review (Informational Item) Review of the Local Development Business Fund.
6. Committee Member and Staff Announcements including requests to place items on future Executive Committee Agendas
7. Adjourn
The next Executive Committee meeting will be held on Wednesday, April 2, 2025 at 3pm.
Draft Minutes
Executive Committee Meeting
Wednesday, February 5, 2025
3:00 pm
In Person:
Conference Room 5
Ava Community Energy
1999 Harrison St., Suite 2300
Oakland, CA 94612
Or from the following locations:
Hayward City Hall, 777 B St, Hayward, CA 94541
Via Zoom:
https://avaenergy-org.zoom.us/j/88267670367
Or join by phone:
Dial(for higher quality, dial a number based on your current location):
US: +1 669 900 6833 or +1 253 215 8782 or +1 346 248 7799 or +1 301 715 8592 or +1 312 626 6799 or 877 853 5257 (Toll Free) or 888 475 4499 (Toll Free) Webinar ID: 882 676 70367
Meetings are accessible to people with disabilities. Individuals who need special assistance or a disability-related modification or accommodation to participate in this meeting, or who have a disability and wish to request an alternative format for the meeting materials, should contact the Clerk of the Board at least 2 working days before the meeting at (510) 906- 0491 or [email protected].
If you have anything that you wish to be distributed to the Executive Committee, please email it to the clerk by 5:00 pm the day prior to the meeting.
1. Welcome & Roll Call
Present: Members: Marquez (Alameda County), Roche (Hayward), Andersen (Piedmont) and Gonzalez (San Leandro)
Not Present: Member Balch
2. Chair and Vice-Chair Appointments
Member Marquez nominated Member Andersen as Chair and Member Gonzalez as Vice-Chair. Member Roche seconded the nomination. Member Andersen and Ava Community Energy
Executive Committee Page | 2
Member Gonzalez accepted the nomination, which was approved 4/0/0/0/1 (yes/no/abstain/recuse/not present)
Yes: Members: Marquez, Roche, Gonzalez and Andersen
No: none
Abstain: none
Recuse: none
Not Present: Member Balch
Chair Andersen picked up the gavel.
3. Public Comment
This item is reserved for persons wishing to address the Executive Committee on any Ava Community Energy-related matters that are not otherwise on this meeting agenda. Public comments on matters listed on the agenda shall be heard at the time the matter is called.
As with all public comment, members of the public who wish to address the Committee are customarily limited to three minutes per speaker and must complete an electronic speaker slip. The Executive Committee Chair may increase or decrease the time allotted to each speaker.
There was no public comment.
4. Closed Session Public Comment
5. Closed Session
a. PUBLIC EMPLOYEE PERFORMANCE EVALUATION under California Government Code Section 54957: Performance Evaluation of Chief Executive Officer
6. General Counsel Report Out of Closed Session
There were no items to report out of Closed Session.
7. Approval of Minutes from January 8, 2025
Member Gonzalez motioned to approve the minutes. Member Marquez seconded the motion, which was approved 4/0/0/0/1 (yes/no/abstain/recuse/not present) Yes: Members: Marquez, Roche, Gonzalez and Andersen
No: none
Abstain: none
Recuse: none
Not Present: Member Balch
8. Mid-Year Budget Update (Informational Item)
Review the budget performance through December 2024.
Howard Chang provided a mid-year budget update, reporting a $57 million increase in total operating revenue, partially offset by a $15 million rise in energy costs, resulting in a projected budget surplus of $95 million.
Ava Community Energy
Executive Committee Page | 3
9. Overview of Fire at Moss Landing (Informational Item) Overview of fire at Moss Landing battery facility.
Joanie Brooke provided an update on the Moss Landing battery fire and its implications for energy storage safety.
10.Committee Member and Staff Announcements including requests to place items on future Executive Committee Agendas
• Howard Chang introduced Russell Mills, Ava’s new Chief Financial Officer. • Member Roche requested to agendize a discussion on the impact of data centers on electrical load and renewable energy in Ava’s service territory.
11.Adjourned at 4:31pm.
The next Executive Committee meeting will be held on Wednesday, March 5, 2025 at 3pm.
Critical Municipal
Facilities Update
March 5, 2025
Previous Update
1) We are at a critical juncture with this CMF portfolio in light of the NEM 2.0 deadline in April 2026, which requires projects to be online prior to this date to preserve maximum cost savings. 2) Any opportunity to meet this deadline on the full portfolio requires us to move forward immediately to complete project designs and order long-lead equipment. 3) Losing NEM 2.0 status would significantly reduce cost savings, making City portfolios no longer cost neutral
4) Our financing counterparty, Green Bridge, is pausing work on this process and re-assessing their risk and ability to continue moving forward.
5) Ava staff to continue to assess this risk and further diligence options presented to provide a recommendation to the board, likely in March.
o A potential recommendation is to focus on NEM 2.0 sites and downsize the portfolio in order to derisk our build timeframe and select the highest margin and most straight forward construction projects. (Options 2 or 3 from prior slide)
o Focus diligence on owning and building projects on Ava's balance sheet, Public Works requirements, and the capital costs of such an investment. Further model various downside economic scenarios such as: missing the NEM 2.0 deadline, tariffs, losing ITC/direct pay/federal incentives 2 Recent Activity
3 City Updates
- Staff has evaluated sites for those that have the highest probability (based on ease of installation and energy savings) of being connected by April 15, 2026 to meet NEM2.0 deadline - Staff has talked with City Staff and confirmed interest in Ava continuing to develop a smaller portfolio of projects and is confirming the prioritization of the selected Sites Procurement and Schedule
- Issuing Public Works Design-Build RFP to expedite identifying and contracting with a qualified contractor
- The schedule to install projects and meet NEM2.0 is very tight, preliminary discussions with solar installers indicate confidence in being able to install systems by April, 26. The RFP will require a schedule commitment and willingness to agree to Ava's contract terms , which will ultimately determine if the schedule is feasible
- Ava counsel is reviewing the EPC (engineering, procurement and construction) contract that was used by Peninsula Clean Energy to own projects in their Municipal resilience program Reduced CMF Portfolio
4 - Prioritizing two sites per City with Staff feedback, which are a mix of rooftop and carport systems - Will confirm confidence in ability to install projects by 4/15/26 through RFP - Evaluating impacts of losing NEM2.0 savings at site level in case contractors are unable to commit to all 12 sites by NEM2.0
- Anticipate offering cities a fixed priced PPA based on EPC costs and Ava's internal cost of capital o Goal is to maximize savings to cities with a minimum floor of net neutral # of Sites kW (Solar) kWh (Battery) Construction Cost Fed Tax Credit 12 830 2,028 ~$6-8M*+ $1.8 -$2.4M**
*Pricing estimate, to be confirmed through RFP
** Fed Tax Credit based on 30% of Construction Cost, 40% is possible on some sites PPA Pricing
Approach
1. Set PPA price based on:
o Development, Operational, Administrative costs and
Contingency, Ava Cost of Capital
2. Calculate base case city savings
3. Quantify risks that could impact Costs or Savings
o Federal ITC/Direct Pay, Tariffs, grants, NEM2.0 timeline
4. Develop risk sharing approach with Cities that maintains cost neutrality
o This will account for estimated city savings reductions and Ava cost increases from base case
5. Ava to reserve funds during development and operations to account for risk
5 Next Steps
6 - Qualify respondents to Ava RFQ and issue RFP to selected contractors - Confirm pricing and schedule from Contractor responses - Confirming process and for Ava developing and owning Solar + Storage projects - Develop PPA pricing under Ava ownership and review City Savings - Determine Ava's ability to allocate funding for Solar and Storage development and operations - Run downside scenarios based on Federal policy changes (ITC and tariffs) - Allocate funding for development, operations and reserves - Evaluate if PV systems can be re-designed to deliver savings under NEM3.0 Previous Board Summary
7 Executive Summary
• Ava has been working with a renewable energy
developer, Green Bridge Energy, to design, construct,
and operate solar and storage systems across 30
municipal sites by entering power purchase
agreements (“PPAs”) with 6 participating cities.
• City project portfolios are designed to deliver energy savings over the contract terms, as well as resiliency
benefits to protect against grid outages and extreme
weather events.
• Ava has been working towards execution of a master
PPA with Green Bridge to enable early-phase projects
to kickoff development to support NEM2.0 qualification
deadlines, which require online dates by April 2026
• Smaller (20-200kW) solar & storage energy systems
have always presented a technical challenge due to the
unique nature of the facilities and small sizes with very few installers and solar PPA counterparties focused on
this segment
• Combining the portfolio, creating greater scale, and
applying the Ava CMF incentive program is intended to
enable this portfolio to be built
8 City Total
sites
/
NEM2
kW
(Solar)
kWh
(Battery)
Savings
as % of
total bill*
Berkeley 2 / 2 186 387 15.7%
Fremont 6 / 2 318 697 14.5%
Hayward 4 / 3 219 387 8.9%
Livermore 5 / 4 2,822 1,754 5.6%
Oakland 8 / 4 909 1,703 6.0%
San Leandro 7 / 5 882 1,780 11.4%
• Types of facilities include libraries, senior
centers, community centers, city halls, police
& fire stations, corporation yards & service
centers.
*Based on last available PPA pricing
Local Development Fund
Reconciliation
Annie Henderson | March 2025
Methodology
• Budget time frame start date : starting FY20 with first specific budget allocation to the Local Development Fund, year in which fund was established
o FY18 and FY19 had funding for local development but it was not placed into a fund and unspent budget did not roll over
• Budget time frame end date: through FY25
• Expenses time frame: Starting in July 2019 through September 2024 • This presentation focuses on budget, actual expenses through September 2024, and anticipated spending (called "Earmarked") under current contracts and programs in development or already launched.
2 Methodology/Assumptions: Budget Notes
• Some "spent" and/or "earmarked" funds will eventually be reimbursed o Expenses are eligible for reimbursement under a CPUC program ▪ Disadvantaged Community Green Tariff (DAC-GT)
▪ Building Efficiency Accelerator
o Expenses that will be repaid as part of a loan
▪ Residential Electrification Program Loan (BlocPower)
▪ MHD Drayage Loan (Forum Mobility)
▪ Beneficial Municipal Electrification Loan (City of Piedmont) 3 Original Budget Allocation FY19/20 through FY24/25
4 Category Total
Transportation Electrification $42,070,000
Building Electrification $24,790,000
Resilience** $13,740,000
Grants $7,400,000
Other* $1,565,000
Grand Total $89,565,000
* legal, marketing, sponsorships and memberships, admin **Does NOT include any surplus budget allocations
Major Budget Centers - Original
5 Category Program Area Total
Transporation Electrification
Ava Charge (DCFC) $14,350,000
Ava Bike Electric $6,000,000
Drayage Loan $5,250,000
EV Adoption $5,000,000
CaleVIP $3,896,000
Municipal Fleet CaaS $2,000,000
Building Electrification
Health-e Communities $10,000,000
Electrification Incentives $3,850,000
Electrification Install Network $2,000,000
Municipal Electrification $2,000,000
Resilience
Critical Municipal Facilities $8,140,000
Resilience Hub Tech Asst $2,000,000
VPP Manager $2,000,000
Grants Grants: Community $7,400,000
• Total of $73,886,00, accounting for
~83% of the original budget.
• Remaining budget covers individual
items <$2M such as:
o Workforce Training
o Energy Efficiency
o Managed Charging
o Legal expenses
o Induction lending
Original Budget Allocation, YoY
6 Category | FY 20 21 22 23 24 25 Total
Building Electrification $1,250,000 $1,340,000 $2,000,000 $4,700,000 $8,500,000 $7,000,000 $24,790,000 Resilience** $600,000 $400,000 $580,000 $660,000 $4,000,000 $7,500,000 $13,740,000 Transportation Electrification $2,000,000 $4,600,000 $5,470,000 $12,250,000 $11,750,000 $6,000,000 $42,070,000 Grants $600,000 $- $- $4,200,000 $1,400,000 $1,200,000 $7,400,000 Other* $65,000 $- $300,000 $250,000 $250,000 $700,000 $1,565,000 Grand Total $4,515,000 $6,340,000 $8,350,000 $22,060,000 $25,900,000 $22,400,000 $89,565,000 * legal, marketing, sponsorships and memberships, admin **Does NOT includes any surplus budget allocations
Why an Updated Budget?
• Over time some initially proposed budget areas:
o Achieved savings through efficient execution
o Did not go beyond a pilot project
o Were not relevant/necessary due to changes in regulatory policy o Transitioned to other departments/SG&A related budget line items o Were better allocated to a different category within the Local Development Fund o Were consolidated
o Did not end up being an execution priority
o Additional budget assigned as part of surplus budget allocation • This reconciliation is intended to identify and report changes between original budget presentation to the board and current strategy and priorities. 7 Cumulative Comparison of Original to Updated Budgets
Category Original Updated Differential
Transportation Electrification $42,070,000 $41,870,000 $(200,000) Building Electrification $24,790,000 $22,190,000 $(2,600,000) Resilience* $13,740,000 $28,603,130 $14,863,130
Grants** $7,400,000 $10,100,000 $2,700,000
Other*** $1,565,000 $1,765,000 $200,000
Grand Total $89,565,000 $104,528,130 $14,963,130
8 *Includes $14,963,130 in FY24 from surplus budget allocation as indicated in Nov-2024 board meeting **Grants may be associated with Ava Program areas like Resilience *** legal, marketing, sponsorships and memberships, admin Building Electrification
Original $24,790,000
Resilience Municipal Electrification to CMF -$150,000
Rate Pilot to Medical Baseline Battery -$50,000
Grants Workforce Training to Workforce -$1,650,000
Electrical Showcase to COVID -$50,000
NEM Enhancements to COVID -$350,000
Demand Response to COVID -$250,000
Connected Communities to AMP -$100,000
Updated $22,190,000
9 Resilience
Original $13,740,000
Building Electrification Municipal Electrification to CMF $150,000 Rate Pilot to Medical Battery $50,000
Grants Collaborative Procurement to COVID -$300,000
FY24 Budget Surplus Solar + Storage Upfront Incentives $14,963,130 Updated $28,603,130
Transportation Electrification
Original $42,070,000
Other Asset Ownership to Legal -$200,000
Updated $41,870,000
Grants
Original $7,400,000
Building Electrification Workforce Training to Workforce $1,650,000 Electrical Showcase to COVID $50,000
NEM Enhancements to COVID $350,000
Demand Response to COVID $250,000
Connected Communities to AMP $100,000
Resilience Collaborative Procurement to COVID $300,000
Updated $10,100,000
Other
Original $1,565,000
Transportation Electrification Asset Ownership to Legal $200,000 Updated $1,765,000
Details of Original to Updated Budget
This slide shows the details on how funding
was moved between categories and program
areas from original budget to updated budget.
Major Budget Centers - Updated
10 Category Program Area Total
Transporation Electrification
Ava Charge $14,350,000
Managed Charging $6,000,000
Ava Bike Electric $6,000,000
Drayage Loan $5,250,000
EV Adoption $5,000,000
CaleVIP $3,896,000
Other $4,624,000
Building Electrification
Health-e Communities $10,000,000
Other $5,500,000
Resilience
Critical Municipal Facilities $8,850,000
Resilience Hub Tech Asst $2,000,000
VPP Manager $2,000,000
Upfront S+S Incentives $14,963,130
Grants Grants: Community $7,400,000
• Total of $90,833,000, accounting for
~87% of the updated budget.
• Remaining budget covers items
<$2M such as:
o Legal Expenses
o Energy Efficiency
o COVID Grants
o Workforce Grants
o Municipal Fleet Electrification
o Municipal Electrification Loan
Updated Budget Allocation, YoY
11 Category | FY 20 21 22 23 24 25 Total
Building Electrification $550,000 $1,040,000 $1,900,000 $4,700,000 $7,000,000 $7,000,000 $22,190,000 Resilience** $350,000 $550,000 $580,000 $660,000 $18,963,130 $7,500,000 $28,603,130 Transportation Electrification $2,000,000 $4,400,000 $5,470,000 $12,250,000 $11,750,000 $6,000,000 $41,870,000 Grants $1,550,000 $150,000 $100,000 $4,200,000 $2,900,000 $1,200,000 $10,100,000 Other* $65,000 $200,000 $300,000 $250,000 $250,000 $700,000 $1,765,000 Grand Total $4,515,000 $6,340,000 $8,350,000 $22,060,000 $40,863,130 $22,400,000 $104,528,130 * legal, marketing, sponsorships and memberships, admin **Includes $14,963,130 in FY24 from surplus budget for solar and storage incentives allocation as indicated in Nov-2024 board meeting NOTE: figures do not include any forecasted budget surplus allocation from FY 2025 Original Budget that is not currently planned for deployment 12 Other Program Area Budget
Transportation Electrification
EV admin/staffing $704,000
L2 Workplace/Public Charging $500,000
Medium-Heavy Duty Vehicles $1,420,000
Muni Fleet Charging as a Service $2,000,000
Transportation Electrification Total $4,624,000
Building Electrification
Electrification $400,000
Electrification Incentives $3,150,000
Electrification Install Network $1,950,000
Building Electrification Total $5,500,000
13 Category Total Budget
Expenses through
Sep-24 Earmarked Variance
Transportation Electrification $41,870,000 -$4,478,000 -$32,800,000 $4,592,000 Building Electrification $22,190,000 -$5,818,000 -$10,540,000 $5,832,000 Resilience $28,603,130 -$3,204,000 -$25,399,130 $0
Grants* $10,100,000 -$1,436,000 -$8,664,000 $0
Other** $1,765,000 -$2,720,000 -$955,000
Grand Total $104,528,130 -$17,656,000 -$77,403,130 $9,469,000 Cumulative Comparison of Original to Updated Budgets
with Expenses and Earmarks
• There are deficits in individual line items that result in an overall negative remaining budget. The most significant is within the Other category because of legal expenses. • Take away: There is approximately $9.5M in un-earmarked funding.
Earmarked Funds
14 Category Program Area Earmarked Status
Transportation Electrification
CALeVIP -$2,400,000 Committed per grant
Ava Charge (DCFC) -$13,150,000 Initial phase launched
MHD Drayage Loan -$5,250,000 Contracted but not dispersed Ava Bike Electric -$6,000,000 Program launch in FY25
Ava SmartHome Charging (Managed Charging) -$6,000,000 Program launch in FY25 Building Electrification BlocPower Loan -$540,000 In repayment Health-e Communities -$10,000,000 ~$2M committed to Pilot Resilience
Resilience Hub TA -$1,940,000 Contracted
Virtual Power Plant manager -$2,000,000 Contracted
Critical Municipal Facilities -$5,960,000 Program in progress Ongoing Solar + Storage Incentives -$500,000 Program launch in FY26 Upfront Solar + Storage Incentives -$14,963,130 Program launch in FY26 Grants Grants: Community -$6,650,000 Contracted and planned Grants: Workforce -$1,650,000 Contracted and planned
TOTAL -$77,003,130
Next Steps
15 • March-May: Staff will be working on overall FY25/26 budget, including any funding for Local Development work
o Staff will bring a proposal to the board on how to allocate the ~$9.5M in funds as part of the next budget cycle discussions.
o Additional longer term strategic planning is also underway through calendar year