Draft Minutes
Board of Directors Meeting
Wednesday, May 21, 2025
6:00 pm
In Person:
Conference Room 5
Ava Community Energy
1999 Harrison St
Suite 2300
Oakland CA 94612
Or from the following locations:
• Albany Community Center - 1249 Marin Ave, Albany, CA 94706 • Clipper Club - 5 Captain Dr. Emeryville, CA 94608
• 36510 Dawson St, Fremont, CA 94536
• 1100 Webster St Oakland CA 94607
• 1755 Harvest Landing Ln., Tracy, CA 95376
Via Zoom:
https://ebce-org.zoom.us/j/87023071843
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: 870 2307 1843
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 Board of Directors, please email it to the clerk by 5:00 pm the day prior to the meeting. (9:28) The following Member was sworn in:
Ava Community Energy
Board of Directors Page | 2
Councilmember Campbell (Fremont – Alternate)
1. (10:40) Welcome & Roll Call
Present: Members: Marquez (Alameda County), Lopez (Albany), Tregub (Berkeley), Morada (Dublin), Kaur (Emeryville), Campbell (Fremont), Goldstein (Hayward), Barrientos (Livermore), Jorgens (Newark), Brown (Oakland), Gonzalez (San Leandro), Bedolla (Tracy), Sakakihara (Union City), CAC Chair Hernandez (Community Advisory Committee), Vice-Chair Andersen (Piedmont) and Chair Balch (Pleasanton) Not Present: Members: Diallo (Lathrop), Rickman (San Joaquin County) and Fugazi (Stockton)
Please note:
Member Campbell served as the alternate for Member Keng (Fremont).
Member Goldstein served as the alternate for Member Roche (Hayward).
Member Jorgens served as the alternate for Member Del Catancio (Newark).
Member Bedolla served as the alternate for Member Nygard (Tracy).
2. (11:56) Pledge of Allegiance
Member Campbell led the body in reciting the Pledge of Allegiance.
3. (12:42) Public Comment
This item is reserved for persons wishing to address the Board 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 two minutes per speaker and must complete an electronic speaker slip. The Board Chair may increase or decrease the time allotted to each speaker.
There were no speakers for public comment.
4. Closed Session Public Comment
There were no speakers for the closed session public comment.
5. (14:00) Closed Session
PUBLIC EMPLOYEE PERFORMANCE EVALUATION under California Government Code Section 54957: Performance Evaluation of Chief Executive Officer Howard Chang
6. (35:59) Report Out of Closed Session
Inder Khalsa, Ava General Counsel, stated that the Board opted to move forward with CEO Chang’s contractual 10% bonus as well as the retention bonus, contingent on CEO Chang staying with the organization.
Ava Community Energy
Board of Directors Page | 3
CONSENT AGENDA
7. (36:28) Approval of Minutes from April 19, 2025
8. Contracts Entered Into (Informational Item)
9. FY 2025 Q3 Treasurer’s Report
Update on Ava’s for FY 2025 Q3 cash position
10.Piper Maddox (LHi Group) Agreement Amendment
Agreement amendment to account for recruiting budget to fill open roles and to prepare for filling roles next fiscal year. Includes temporary placement fees for temporary staff as well as recruitment service charges.
11.Legal Services Contract for Financial Services
Authorizing the CEO to negotiate and execute an agreement with Chapman and Cutler.
The clerk stated that in Item 14 of the April 19, 2025 minutes, CAC Chair Souza was incorrectly identified as having extended an invitation to attend Piedmont’s Food Fest. Vice-Chair Andersen extended this invitation.
Member Gonzalez motioned to approve the Consent Calendar, including the minutes as amended. Member Marquez seconded the motion, which was approved 15/0/0/0/3 (yes/no/abstain/recuse/not present):
Yes: Members: Marquez, Lopez, Tregub, Morada, Kaur, Campbell, Goldstein, Barrientos, Jorgens, Brown, Gonzalez, Bedolla, Sakakihara, Vice-Chair Andersen and Chair Balch
No: none
Abstain: none
Recuse: none
Not Present: Members: Diallo, Rickman and Fugazi
REGULAR AGENDA
12.(39:26) CEO Report
• The Executive Committee (May 7), Finance/Admin/Procurement (May 8), and Marketing/Regulatory/Legislative (May 9) subcommittees met to discuss items including the draft FY 2025–26 budget, critical municipal facilities, prepaid energy transactions, and Ava’s legislative priorities.
• The City of Oakland adopted an innovative EV charging cord policy that allows residents to charge their EVs via cords over sidewalks. Oakland is the only U.S. city allowing Level 2 cords under such a program.
Ava Community Energy
Board of Directors Page | 4
• Fremont’s residential transition to Renewable 100 is underway, with enrollment support, FAQs, and community engagement being prioritized to ensure a smooth opt-up process.
• Stockton and Lathrop service launch is progressing smoothly; opt-out rates remain within normal ranges at about 5%.
• Ava welcomed Courtney Wall as the new Contracts Manager in the Power Resources team.
• Ava participated in the California Community Choice Association (CalCCA) conference in Irvine, which had record attendance.
• Upcoming community events were listed across Newark, Oakland, and San Leandro for May and June. Board members were encouraged to refer event invitations to Annie Henderson for possible Ava participation.
13.(47:24) CAC Report
CAC Chair Hernandez discussed the May 19, 2025 meeting of the Community Advisory Committee. This meeting included a presentation from the Energy Affordability Ad Hoc Committee, updates on critical municipal facilities, and a review of state legislative bills.
The committee also discussed Ava’s draft budget, noting concern about the reduction in local development funding from $25 million in the upside scenario to $10 million in the PCIA reform budget. As part of the affordability discussion, members emphasized the need to advocate for legislation that lowers electricity bills and proposed expert engagement, including economist Dr. Richard McCann, to analyze IOU business models and risks to Ava from PG&E rate increases. The CAC will continue working with staff on recommendations related to ratepayer protections, expense transparency, and coalition-building to reduce rates.
14. (50:40) FY 2025-2026 Draft Budget Review (Informational Item) Present and discussion the draft budget for the upcoming fiscal year Howard Chang presented two versions of the budget for fiscal year 2025–26: one assuming no regulatory changes (Upside), and one accounting for possible reforms to the PCIA fee that could reduce Ava’s revenue by as much as $187 million. To prepare for this risk, the PCIA Reform scenario includes cutting back on local development funding ($10 million instead of $25 million) and hiring fewer staff (7 new positions instead of 14). Staff also introduced a new approach to renewable energy procurement that spreads targets over several years, helping balance costs and reduce financial pressure. The board was asked to provide feedback on tools like adjusting customer rates, changing procurement levels, or using reserve funds to keep the budget stable. A final budget will be brought to the board in June, with updates based on PG&E’s recent filings and any decisions made by the CPUC.
Ava Community Energy
Board of Directors Page | 5
(1:45:16) Public Comment – Cynthia Landry spoke in support of prioritizing funding for heat pump water heater programs, especially for low-income residents, and suggested that budgets should be reallocated to increase support for critical municipal facilities. (1:47:18) Public Comment – Bradley Cleveland spoke in support of accelerating local development projects like critical municipal facilities and resiliency hubs to take advantage of federal clean energy tax credits available through the Inflation Reduction Act's direct pay program.
(1:48:54) Public Comment – Jim Lutz asked whether Ava’s practice of indexing rates to PG&E increases exposure to PCIA-related volatility.
Selected Topics Raised by Board Members:
• Member Sakakihara asked why personnel costs are expected to increase next year. He wanted to understand how unfilled positions, hiring timelines, and salary changes contribute to the overall growth in staffing expenses. • Member Sakakihara also asked how potential rate changes could affect low-income CARE/FERA customers. • Member Tregub asked for details about the CPUC’s upcoming changes to the PCIA and how Ava could influence the process.
• Members Tregub, Gonzalez, and Balch supported the idea of using a multi-year compliance period for renewable energy goals. Member Gonzalez said it’s important to first see how this method would have worked in past years to avoid unexpected problems.
• Chair Balch and Member Gonzalez asked for clearer information about how each of the proposed budget options—like changing rates, cutting programs, or reducing hiring—would help close possible budget gaps.
• Member Marquez asked if Ava could revisit and increase local development funding later in the year if more money becomes available. • Member Marquez also suggested using trained interns or shorter staff shifts to help Ava attend more local events.
• Member Marquez and Chair Balch agreed that if the conservative scenario is adopted, the board should plan a mid-year check-in (likely in November or December) to consider restoring local development funding if financial conditions improve.
15.(2:17:19) Critical Municipal Facilities Update (Action Item) Ava Community Energy
Board of Directors Page | 6
Authorize CEO to negotiate and execute agreement with McMillan Electric and City PPAs JP Ross presented a proposal to develop solar and battery storage systems at eight critical municipal sites across four cities, requesting board approval for contracts with McMillan Electric and participating cities, along with an $8 million allocation from Ava’s local development fund. The projects aim to improve resilience during power outages and provide modest long-term bill savings for cities, while also allowing Ava to gain experience in owning assets and utilizing federal tax credits through the Inflation Reduction Act. The selected contractor, McMillan Electric, was chosen through a competitive RFP process and has committed to using union and local labor, with at least 50% of on-site hours from Alameda or San Joaquin counties. If approved, project execution will begin immediately, with construction targeted for completion by April 2026 to qualify for more favorable Net Energy Metering (NEM 2.0) terms. (2:57:08) Public Comment: Bradley Cleveland thanked Ava leadership for partnering with labor groups to ensure local hiring and apprenticeship opportunities. He also stated that while the project carries financial risks, it provides important benefits by improving city resilience to climate impacts.
Selected Topics raised by Board Members:
• Member Marquez asked whether the project would be phased or if all sites would move forward simultaneously, and how Ava would monitor compliance with labor agreements.
• Member Goldstein asked about Ava’s risk exposure if equipment suppliers or contractors were to fail.
• Member Tregub asked which “safe harbor” provisions Ava was relying on to mitigate risk in the event of a repeal or change to the federal Investment Tax Credit (ITC).
• Member Gonzalez asked how Ava would manage risk in scenarios such as building fires or utility line damage, and whether insurance responsibilities would fall to Ava or the host cities. He also asked how performance guarantees would be structured to protect Ava in the event of underperformance or equipment failure. • Chair Balch asked whether Ava had considered the risk of future asset relocation—such as during re-roofing or site reconfiguration—and how termination clauses in the contracts would address those scenarios. • Member Morada asked whether Ava currently has the internal engineering and asset management capacity to operate the new systems.
Ava Community Energy
Board of Directors Page | 7
Member Tregub motioned to approve the staff’s recommendation. Member Barrientos seconded the motion, which was approved 14/0/0/0/4 (yes/no/abstain/recuse/not present):
Yes: Members: Marquez, Tregub, Morada, Kaur, Campbell, Goldstein, Barrientos, Jorgens, Brown, Gonzalez, Bedolla, Sakakihara, Vice-Chair Andersen and Chair Balch
No: none
Abstain: none
Recuse: none
Not Present: Members: Lopez, Diallo, Rickman and Fugazi
16.(3:08:00) 2025 State Legislative Bills (Action Item) Request approval for bill positions
Sam Sadle, Ava’s Principal Legislative Manager, presented two action items: an update to the agency’s legislative platform and a recommendation to adopt positions on 14 state bills relevant to Ava’s mission. The updated platform adds two new policy principles— electricity affordability and bill transparency. Sadle explained the internal process used to filter 2,350 bills down to 28 of relevance, ultimately recommending action on 14 of them across categories like decarbonization, affordability, local development, and board governance.
(3:11:52) Public Comment – Colin Cook Miller, speaking on behalf of the Reclaim Our Power Utility Justice Campaign, urged the Board to support SB 332, which would explore transitioning investor-owned utilities like PG&E to nonprofit or public ownership.
Item 16A. State Legislative Bills Platform:
Member Marquez motioned to approve the staff recommendation. Member Sakakihara seconded the motion, which was approved 14/0/0/0/4 (yes/no/abstain/recuse/not present):
Yes: Members: Marquez, Tregub, Morada, Kaur, Campbell, Goldstein, Barrientos, Jorgens, Brown, Gonzalez, Bedolla, Sakakihara, Vice-Chair Andersen and Chair Balch
No: none
Abstain: none
Recuse: none
Not Present: Members: Lopez, Diallo, Rickman and Fugazi Selected Topics raised by Board Members:
Member Brown asked whether any of the bills under consideration had become two-year bills.
Member Morada questioned why the board was taking a formal vote at this stage given ongoing legislative uncertainty.
Ava Community Energy
Board of Directors Page | 8
Member Gonzalez expressed disappointment that Ava had not supported SB 540 despite widespread support from other CCAs and the Brattle Group’s findings.
Item 16B. State Legislative Bills Program:
Member Tregub motioned to approve the balance of staff’s recommendation - bullets 2 and 3 on page one of the Item 16 Staff Report, quoted below:
• “Staff recommendation that you adopt a “support” position on Assembly Bills (“AB”) and Senate Bills (“SB”) AB 39 (Zbur), AB 44 (Schultz), AB 259 (Rubio), AB 729 (Zbur), AB 915 (Petrie-Norris), SB 239 (Arreguin), SB 254 (Becker), SB 282 (Weiner), SB 314 (Padilla), SB 453 (Stern), SB 698 (McNerney); and
• Staff recommendation that you adopt a “support if amended” position on AB 222 (Bauer-Kahan), SB 283 (Laird), and SB 541 (Becker).” Member Barrientos seconded the motion, which was approved 13/0/0/0/5 (yes/no/abstain/recuse/not present):
Yes: Members: Marquez, Tregub, Morada, Campbell, Goldstein, Barrientos, Jorgens, Brown, Gonzalez, Bedolla, Sakakihara, Vice-Chair Andersen and Chair Balch
No: none
Abstain: none
Recuse: none
Not Present: Members: Lopez, Kaur, Diallo, Rickman and Fugazi
17.(3:50:54) Board Member and Staff Announcements including requests to place items on future Board of Directors Meeting Agendas
• Chair Balch spoke about the need for subcommittee attendance.
18.Adjourned at 10:51pm.
The next Ava Board of Directors meeting will be held on Wednesday, June 18, 2025 at 6pm:
Conference Room 5
Ava Community Energy
1999 Harrison Street, Suite 2300
Oakland, CA 94612