Draft Minutes
Board of Directors Meeting
Wednesday, June 18, 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:
• Milk and Honey Cafe, 34265 Fremont Blvd, Fremont, CA 94555 • 35653 Scarborough Dr. Newark CA 94560
• 1100 Webster St Oakland CA 94607
• Larch Clover Community Center - 11157 West Larch Road, Tracy, CA 95376 • Tampa Marriott Water Street, 505 Water Street, Tampa, FL 33602 • JW Marriott - 510 Water St, Tampa, FL 33602
• 1755 Harvest Landing Ln., Tracy, CA 95376
Via Zoom:
https://avaenergy-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].
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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.
1. Welcome & Roll Call
Present: Members: Marquez (Alameda County), Tregub (Berkeley), Morada (Dublin), Kaur (Emeryville), Roche (Hayward), Del Catancio (Newark), Rickman (San Joaquin County), Gonzalez (San Leandro), Nygard (Tracy), Sakakihara (Union City), CAC Vice-Chair Souza (Community Advisory Committee), Vice-Chair Andersen (Piedmont) and Chair Balch (Pleasanton)
Not Present: Members: Lopez (Albany), Keng (Fremont), Diallo (Lathrop), Barrientos (Livermore), Brown (Oakland) and Fugazi (Stockton)
2. (7:12) Pledge of Allegiance
Vice-Chair Andersen led the body in reciting the Pledge of Allegiance.
3. (7:33) 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.
REGULAR AGENDA
4. (8:58) CEO Report
At the July 2025 board meeting, CEO Howard Chang gave an informational report covering recent updates on agency operations and community outreach. He began by summarizing the June 4 Executive Committee meeting, which included early reviews of the draft budget and the prepay financing item. He then explained that Ava’s offices will be temporarily closed from July 14 to September 12 for tenant improvements. During this time, staff will work remotely. The following board and committee meetings will be held at the Rotunda Building at 300 Frank H. Ogawa Plaza, Oakland, CA 94612:
• Monday, July 14, 2025 Community Advisory Committee Meeting • Wednesday, July 16, 2025 Board of Directors Meeting
• Wednesday, September 3, 2025 Executive Committee Meeting • Monday, September 15, 2025 Community Advisory Committee Meeting • Wednesday, September 17, 2025 Board of Directors Meeting Meeting CEO Chang provided an update on the launch of service in Stockton and Lathrop, which began in April. He said the rollout has gone smoothly, with opt-out rates holding steady around 5.35%. He also mentioned a recent interview he did with the Downtown Stockton Alliance to help raise awareness of Ava in the region. Turning to Fremont, he noted that Ava Community Energy
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the city’s residential customers will transition to Ava’s Renewable 100 service in August.
Commercial and industrial customers will follow next year. Ava is currently mailing notifications and participating in local events to ensure residents understand the change and know how to opt out if they choose.
CEO Chang also gave an update on enrollment planning for San Joaquin County. Staff is still working with county officials to decide the best timing, especially in light of the recent PCIA proposed decision and ERRA filing. A recommendation is expected to come to the board in July. On the topic of resilience hubs, CEO Chang reported that Ava’s community innovation grantee, Emerald Cities Collaborative, recently hosted three focus groups— one virtual, one in Oakland, and one in Stockton. Nearly 200 participants and 36 community-based organizations took part, offering feedback that will help shape Ava’s program design.
5. (19:27) CAC Report
CAC Vice-Chair Mickey Souza stated that there is growing concern in the CAC over PG&E’s rising rates and lack of transparency in cost breakdowns, particularly related to wildfire mitigation and infrastructure spending. The CAC is actively exploring strategies to push back against these cost increases. These include launching a public awareness campaign similar to one undertaken by Marin Clean Energy and collaborating with other CCAs through CalCCA.
Vice Chair Souza also reported that the LDBP Ad Hoc is exploring potential strategies to strengthen Ava’s financial position through initiatives such as virtual power plants, on-bill electrification resources, asset development and out of territory subcontracting. The LDBP ad hoc has also requested the restoration of early LDBP planning documents on Ava’s website.
6.(31:08) FY2025-2026 Budget (Action Item)
Approve the budget for Fiscal Year 2025-2026
CEO Howard Chang presented Ava’s proposed FY 2025–2026 budget, focusing on major updates including the CPUC’s proposed decision on PCIA reform and its anticipated $187 million financial impact. Both the base case and upside scenarios now incorporate the PCIA changes, with differences driven by varying assumptions about market prices. To address the projected $35 million deficit, Ava proposes cost reductions, a new compliance-period procurement approach, and use of the GASB 62 Rate Stabilization Fund. CEO Chang stated that while current forecasts are conservative, Ava’s financial strength and prior surpluses position the agency to weather short-term volatility. He requested the board’s approval of the base case budget, which reflects current regulatory developments and includes rate stabilization fund support.
Selected topics raised by Board Members include:
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• Member Roche asked staff to clarify the difference between Ava’s reserve fund and the rate stabilization (or budget stabilization) fund, and how the agency decides where to allocate surpluses.
• Member Morada sought clarification on how much would remain in the rate stabilization fund after the proposed $35 million drawdown, and whether that amount would bring the fund close to any minimum threshold. • Member Tregub asked for an update on Ava’s advocacy efforts related to PCIA reform and inquired whether the CPUC was considering the negative impacts on CCAs. He also asked for clarification on how much of the $187 million impact was attributable to PCIA versus market prices.
• Member Tregub requested an explanation of the differences between the base case and upside budget scenarios.
(1:22:31) Public Comment – Ayla Peters Paz, speaking on behalf of the Local Clean Energy Alliance, urged the Board to support the CAC’s resolution for the budget, and to prioritize legal action to fight policies that threaten Ava and other CCAs. (1:24:28) Public Comment – Bradley Cleveland, representing IBEW Local 595 and the Alliance for Workforce and Environmental Justice, spoke in support of the proposed $10 million allocation to the Local Development Fund. He also encouraged the Board to increase the allocation going to the Local Development Fund if Ava’s financial outlook improves by the mid-year review.
(1:24:28) Public Comment – Jessica Tovar, speaking for the Local Clean Energy Alliance and Clean Power Alliance, spoke in support of the Local Development Business Plan and recommended that Ava consider creating a fund in partnership with local community foundations to support grassroots innovation, resilience, and workforce projects beyond existing engagement programs.
Member Roche motioned to approve the staff recommendation. Vice-Chair Andersen seconded the motion, which was approved 12/0/0/0/6 (yes/no/abstain/recuse/not present)
Yes: Members: Marquez (Alameda County), Tregub (Berkeley), Morada (Dublin), Kaur (Emeryville), Roche (Hayward), Del Catancio (Newark), Rickman (San Joaquin County), Gonzalez (San Leandro), Nygard (Tracy), Sakakihara (Union City), Vice-Chair Andersen (Piedmont) and Chair Balch (Pleasanton) No: none
Abstain: none
Recuse: none
Not Present: Members: Lopez (Albany), Keng (Fremont), Diallo (Lathrop), Barrientos (Livermore), Brown (Oakland) and Fugazi (Stockton)
CONSENT AGENDA
7. Approval of Minutes from May 18, 2025
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8. Contracts Entered Into (Informational Item)
9. PC Pro Consulting Services Agreement & Amendment
New CSA for IT services for FY25-25 and Amendment to increase the NTE of current CSA for FY24-25
10.Thrive Mind Collaborative Consulting Services Agreement Extend CSA for leadership coaching and consulting services
11.Piper Maddox (LHi Group)
Amend two Staffing Services Agreements with LHi GROUP, INC.
12.Dakota Press
Extend CSA for printing services through FY25-26 and increase the NTE
13.Chen Design Associates
Extend CSA for design services through FY25-26 and increase the NTE
14.Legal Services Agreements Approval FY 25-26
Approval for spend on legal vendors for FY 25-26
15.Aramis Contract Amendment
Authorize CEO to execute a contract amendment to the Aramis Agreement
16.Inside Source Contract Approval
Approve furniture purchase related to tenant improvements (1:37:54) Public Comment – Ayla Peters Paz asked the Board to provide greater transparency around how contracts on the consent calendar are selected, including how vendors are evaluated and chosen.
Member Tregub motioned to approve the Consent Agenda. Member Marquez seconded the motion, which was approved 12/0/0/0/6 (yes/no/abstain/recuse/not present)
Yes: Members: Marquez (Alameda County), Tregub (Berkeley), Morada (Dublin), Kaur (Emeryville), Roche (Hayward), Del Catancio (Newark), Rickman (San Joaquin County), Gonzalez (San Leandro), Nygard (Tracy), Sakakihara (Union City), Vice-Chair Andersen (Piedmont) and Chair Balch (Pleasanton) No: none
Abstain: none
Recuse: none
Not Present: Members: Lopez (Albany), Keng (Fremont), Diallo (Lathrop), Barrientos (Livermore), Brown (Oakland) and Fugazi (Stockton) Ava Community Energy
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REGULAR AGENDA
17.Prepay Financing Approval (Action Item)
Authorize staff to enter two prepay transactions, Prepay #4 and Prepay #5 CFO Russell Mills presented Ava’s plan to move forward with two additional prepay power transactions, which allow Ava to access discounted power by leveraging tax-exempt bond financing. He reviewed Ava’s success with three prior prepays that have already generated nearly $22 million in savings and currently deliver $12–15 million in annual cost reductions. Mills discussed enhancements to the transaction structure, including diversifying the funding recipients beyond major banks to reduce risk and increase investor demand. He also spoke about the importance of maintaining Green Bond designation, which aligns with Ava’s climate goals and attracts mission-driven investors. Staff asked the Board to authorize up to two new prepay transactions, not to exceed $1.25 billion each, and requiring a minimum 8% discount on energy costs.
Selected topics raised by Board Members include:
• Vice-Chair Andersen asked how a change in the federal tax landscape would affect the prepay contracts and who would bear the financial risk if tax-exempt status were lost.
• Member Morada asked what makes Ava’s bonds attractive in a saturated bond market, prompting a discussion about green bond designation, credit risk diversification, and investor demand.
• Member Morada also asked whether the energy sector is generally considered a safer investment for bondholders.
• Member Gonzalez asked for clarification on the legal structure of the contracts, specifically whether Ava contracts directly with the energy supplier or through CCCFA, and how the agreements are mirrored to preserve tax-exempt status.
Member Sakakihara motioned to approve the staff recommendation. Member Roche seconded the motion, which was approved 11/0/0/0/7 (yes/no/abstain/recuse/not present)
Yes: Members: Tregub (Berkeley), Morada (Dublin), Kaur (Emeryville), Roche (Hayward), Del Catancio (Newark), Rickman (San Joaquin County), Gonzalez (San Leandro), Nygard (Tracy), Sakakihara (Union City), Vice-Chair Andersen (Piedmont) and Chair Balch (Pleasanton)
No: none
Abstain: none
Recuse: none
Not Present: Members: Marquez (Alameda County), Lopez (Albany), Keng (Fremont), Diallo (Lathrop), Barrientos (Livermore), Brown (Oakland) and Fugazi (Stockton)
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18.Board Member and Staff Announcements including requests to place items on future Board of Directors Meeting Agendas
• Howard Chang thanked staff for their work on the budget and prepay items. • Chair Balch announced a clerical correction to the prepay resolution and reminded board members that the next meeting will be held at the Rotunda Building due to Ava office tenant improvements.
• Chair Balch announced his intention to step down as Chair at the July meeting to ensure a smoother leadership transition ahead of 2026 and requested that Chair and Vice Chair appointments be agendized for July. • Vice-Chair Andersen acknowledged Juneteenth as a time for national reflection on liberty and equity.
• Member Gonzalez thanked Ava staff for attending the Cherry Festival and made three requests: (1) a future discussion on customer education and advocacy regarding electricity rates, (2) a review of potential expansion of R100 in other cities, and (3) Ava’s potential involvement in the upcoming "Sun-Day" climate event hosted by Third Act in San Leandro.
• Member Roche issued an invitation to Hayward’s Juneteenth celebration at Heritage Plaza on Saturday, June 21, 2025.
• Chair Balch confirmed that the Power Content Label will return as a board item later in the year.
19.Adjourned at 8:08pm
The next Ava Board of Directors meeting will be held on Wednesday, July 16, 2025 at 6pm.
Please note the temporary location:
Rotunda Building
Large Conference Room
300 Frank Ogawa Plaza
Oakland, CA 94612