Draft Minutes
Financial, Administrative and Procurement Subcommittee
Meeting
Wednesday, March 12, 2025
1:00 pm
In Person:
Conference Room 5
Ava Community Energy
1999 Harrison Street, Suite 2300
Oakland, CA 94612
Or from the following locations:
• Member Del Catancio – 35653 Scarborough Dr, Newark, CA 94560 • Member Kaur - Clipper Club, 5 Captain Drive, Emeryville, CA 94608 • Member Morada – Dublin Civic Center, City Manager's Office, 100 Civic Plaza Dublin, CA 94568
• Member Sakakihara – 34009 Alvarado-Niles Road, Union City, CA 94587 Via Zoom:
https://avaenergy-org.zoom.us/j/83599993289
Or join by phone:
Dial(for higher quality, dial a number based on your current location): US: +1 669 900 6833 or +1 346 248 7799 or +1 253 215 8782 or +1 929 205 6099 or +1 301 715 8592 or 888 475 4499 (Toll Free) or 877 853 5257 (Toll Free) Webinar ID: 835 9999 3289
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) 707-1764 or [email protected].
If you have anything that you wish to be distributed to the Finance, Administration and Procurement Subcommittee, please email it to the clerk by 5:00 pm the day prior to the meeting.
1. (0:38) Welcome & Roll Call
Present: Directors: Morada (Dublin), Del Catancio (Newark), Brown (Oakland), Sakakihara (Union City) and Chair Kaur (Emeryville).
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Absent: Director Keng (Fremont).
2. (1:16) Public Comment
This item is reserved for persons wishing to address the FAP Subcommittee on any Ava-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 Board are customarily limited to three minutes per speaker. The FAP Chair may increase or decrease the time allotted to each speaker.
There were no speakers for public comment.
3. (1:21) Approval of Minutes from September 11, 2024 (Action Item) Chair Kaur (Emeryville) motioned to approve the minutes. Director Sakakihara (Union City) seconded the motion which passed 5/0/0/0/1.
Yes: Morada (Dublin), Del Catancio (Newark), Brown (Oakland), Sakakihara (Union City) and Chair Kaur (Emeryville).
No: None.
Abstain: None.
Recuse: None.
Not Present: Keng (Fremont).
Member Keng was sworn in after the minutes were approved.
4. (3:20) FAP Annual Agenda (Informational Item)
A presentation on known, upcoming FAP agenda items.
Jason Bartlett reviewed the 2025 subcommittee meeting schedule, audited financial statements, draft budget for Fiscal Year 2025-2026, and Ava’s credit facility. He also reviewed reserve funding allocations including solar incentives and bill credits.
There were no speakers for public comment.
There was no discussion by the subcommittee members.
5. (14:40) FY 2024-2025 Q2 Financial Statements (Informational Item) Financial Statements for Fiscal YTD and Q2 financial performance.
Jason Bartlett presented Ava’s draft financial statements, highlighting $286 million in investments, and noted an expected rise in investment income by next quarter.
There were no speakers for public comment.
Selection of topics discussed by subcommittee members:
• Long-term versus short-term uncollectible stability
• The impact of recession and tariffs on uncollectibles • Possible adjustments to future percentage trends on uncollectibles, given the 2-
2.5% rise during COVID-19
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• Further evaluation to assess how the expansion to Stockton and San Joaquin impacts uncollectibles
6. (25:30) Reserve Fund Review (Informational Item)
Review the reserve fund processes and policies as well as best practices survey results.
Howard Chang provided an informational presentation on Ava’s reserve policy, reviewing its 50% target and funding plan to reach the target. CEO Chang also covered the history of the policy, which was simplified in 2021, and reviewed the current reserve levels which are projected to reach $400 million.
There were no speakers for public comment.
Selection of topics discussed by subcommittee members:
• The challenge of reaching 50% reserve in less than five years • The prioritization of value proposition maintenance, funding reserves, adjustments for future priorities or surplus allocations
• Possible use of reserves including large asset failures or unexpected energy market spikes
• The potential impacts of federal changes
7. (1:00:45) Accounts Receivable Recovery Agency (Informational Item) Provide feedback on agency selection to implement the Accounts Receivable Recovery Policy.
Chris Davis updated the subcommittee on contracting with SMUD and IC System for cost-effective debt recovery through 2026, leveraging Ava’s existing partnership. Davis noted that a review will take place at the 12-month mark and addressed $20 million in annual uncollected bills, 60% of which are from residential customers.
There were no speakers for public comment.
Selection of topics discussed by subcommittee members:
• Recommendation to review SLAs and key metrics more frequently than annually • 300,000 customers no longer receiving energy, as their accounts have been closed due to non-payment
• Ava’s option to return customers with overdue payments to PG&E, although this option hasn't been exercised precedingly
• Data integration and administrative fees applied to involved agencies including SMUD
8. (1:15:03) Unclaimed Funds Policy (Informational Item) Provide feedback on a Policy to manage Unclaimed Funds.
Chris Davis reviewed the draft unclaimed funds policy to manage $2 million in unclaimed funds affecting 7,000 customers, aiming to reduce liability and improve reporting. Davis also outlined Ava’s plan to list the funds on Ava’s website and notify customers via email to enhance visibility.
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There were no speakers for public comment.
Selection of topics discussed by subcommittee members:
• Potential fraud concerns from posting unclaimed funds on the website • How to inform customers with unclaimed funds
• The timeline to present the item to the board and possibly to the executive committee
9. (1:22:59) Committee Member and Staff Announcements including requests to place items on future Board Agendas
There were no Committee Member or Staff Announcements.
10. Adjourned at 2:25pm.
The next Financial, Administrative and Procurement Subcommittee meeting will be held on Wednesday, May 14, 2025 at 1pm.
Conference Room 5
Ava Community Energy
1999 Harrison Street, Suite 2300
Oakland, CA 94612
Minutes Written by Raïssa Ngoma.