MINUTES
Finance Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Tuesday, November 28, 2023, 11:00 a.m.
Meeting videos are available on CPA's YouTube Channel.
http://www.youtube.com/@CPApublicmeetings
Committee members participated in this meeting from the following locations:
Camarillo City Hall
Mayor’s Office
601 Carmen Drive
Camarillo, CA 93010
Clean Power Alliance
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Claremont City Hall
Conference Room
207 Harvard Avenue
Claremont, CA 91711
Carson City Hall
Executive Conference Room
701 East Carson Street
Carson, CA 90745
Rolling Hills Estates City Hall
Conference Room
4045 Palos Verdes Drive North
Rolling Hills Estates, CA 90274
Thousand Oaks City Hall
City Manager’s Office, Council Office #1
2100 Thousand Oaks Blvd.
Thousand Oaks, CA 91362
CALL TO ORDER & ROLL CALL
Committee Chair Santangelo called the meeting to order at 11:00 a.m. and Gabriela Monzon, Board Clerk, conducted roll call.
Roll Call
Camarillo Susan Santangelo Committee Chair Remote
Carson Reata Kulcsar Committee Member Remote
Claremont Corey Calaycay Committee Member Remote
Rolling Hills Estates Steve Zuckerman Committee Member Remote Santa Monica Pam O’Connor Committee Member Present
Thousand Oaks David Newman Committee Member Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
Clean Power Alliance Finance Committee Page 2 of 2
November 28, 2023 Minutes
CONSENT AGENDA
1. Approve Minutes from the October 25, 2023, Finance Committee Meeting
2. Receive and File October 2023 Risk Management Team Report
3. Receive and File October 2023 CPA Investment Report
4. Receive and File Fiscal Year 2023-2024 Q1 Financial Report Motion: Committee Member Calaycay, Claremont
Second: Committee Member Zuckerman, Rolling Hills Estates Vote: The consent agenda was approved by a roll call vote with an abstention from Committee Member Newman.
REGULAR AGENDA
5. Report from the Chief Financial Officer
David McNeil, Chief Financial Officer, stated that CPA experienced a $7.4 million addition to its net position in Q1 of the fiscal year. CPA’s line of credit with J.P. Morgan Bank will terminate on March 31, 2024. Staff are gathering quotes for new credit agreements with other banks as well as quotes from JPMorgan to renew the current agreement.
Committee Member Zuckerman asked several questions concerning the need for a competitive selection process, whether CPA expected to pay lower interest rates and fees than it does currently, and whether banks motivated by environmental, social, and governance (ESG) factors were entering the market to provide CPA with a credit facility.
Mr. McNeil stated that CPA has had a positive relationship with JPMorgan and that the reason for a competitive process was to ensure that CPA receives the best possible terms consistent with contracting best practices. Mr. McNeil stated that he expected CPA to pay banking fees lower than what CPA pays currently, and that it is unclear to what extent banks making offers to CPA are motivated by ESG factors. In response to Committee Member Kulcsar’s request, staff are working on providing a list of CPA’s banking relationships and their respective purposes. Committee Member Kulcsar suggested comparing the financial impact of the 2022 extreme temperatures with the mild summer temperatures experienced in 2023; staff agreed to provide that analysis when more complete 2023 data was available. Committee Member Zuckerman inquired about Southern California Edison’s (SCE) delinquent accounts and hedging strategies. Staff will continue to investigate SCE’s delinquent accounts procedures; SCE’s hedging strategy is unknown. Staff are inclined to believe that SCE hedges less but that is only one factor that can impact rate competitiveness. Other variables, such as the cost of Resource Adequacy (RA) and renewable energy, are important as well.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Committee Chair Santangelo adjourned the meeting at 11:27 p.m.