MINUTES
Finance Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, May 29, 2024, 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 Gabby Monzon, Clerk of the Board, 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 Absent
Thousand Oaks David Newman Committee Member Remote
All votes are unanimous unless otherwise stated.
GENERAL PUBLIC COMMENT
There was no public comment.
CONSENT AGENDA
1. Approve Minutes from the April 24, 2024, Finance Committee Meeting
2. Receive and File April 2024 Risk Management Team Report
3. Receive and File April 2024 Investment Report
4. Receive and File FY 2023/2024 Q3 Financial Report
Motion: Committee Member Zuckerman, Rolling Hills Estates Second: Committee Member Newman, Thousand Oaks
Vote: The consent agenda was approved by a roll call vote.
REGULAR AGENDA
5. Report from the Chief Financial Officer
David McNeil, Chief Financial Officer, provided an update on the third quarter financial results for year to date (YTD) ending March 21, 2024, reporting that CPA was 20% ahead of budget for the quarter, and YTD contributed $126 million to the net position.
6. Recommend Approval of the Proposed FY 2024/2025 Budget to the Board of Directors Mr. McNeil presented the item, noting that budgeted revenues are expected to increase by $6 million year over year and reflect the rate setting approach approved by the Board at its May meeting, an allowance for bad debt, and the full year effect of default product changes and new community enrollments. Mr. McNeil reviewed operating expenses, noting increases in staffing, communications, and customer programs all oriented towards meeting CPA’s organizational priorities.
In response to Committee Member Zuckerman’s question about rising power purchase agreement (PPA) costs, Mr. McNeil explained that the budget includes contingencies to deal with unforeseen costs. Committee Member Newman asked about the impact of rising energy costs on revenues; Mr. McNeil explained that staff does conduct long-term financial projections which indicate that costs will stabilize over the next few years largely due to CPA’s long-term contracting activities. Once CPA meets its reserve target, it will also need to contribute less to reserve funds. In response to Committee Member Kulcsar’s question about Executive Committee feedback, staff explained it received feedback regarding debt collection, the credit rating process, and support for program and associated marketing spending.
Motion: Committee Member Calaycay, Claremont
Second: Committee Member Zuckerman, Rolling Hills Estates Vote: Item 6 was approved by a roll call vote.
7. Recommend to the Board that Staff be Authorized to Open a Bank Dealer Account with US Bank National Association for the Purpose of Investing Funds in Securities Authorized under CPA’s Investment Policy
Kate Freeman, Strategic Finance Manager, provided a presentation on the item. CPA has growing levels of cash and current interest rates offer attractive returns. Therefore, staff would like to invest through multiple dealers to compare interest rates and seek the highest returns.
Committee Member Newman asked about existing relationships with the proposed institutions; Ms. Freeman noted that CPA has a history of working with the proposed banking institutions in different capacities but often with different divisions of those institutions. In response to Committee Member Kulcsar’s inquiry about what would be invested, Ms. Freeman explained funds in CAMP or in savings funds that will not be needed in the short term would be invested in longer term securities. Mr. McNeil added that the initial purchase would be about $50 million, and staff will work towards $100 million. The monthly Investment Report presented to the Finance Committee will provide details on these investments consistent with CPA’s Investment Policy.
Motion: Committee Member Newman, Thousand Oaks
Second: Committee Member Zuckerman, Rolling Hills Estates Vote: Item 7 was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
None.
ADJOURN
Committee Chair Santangelo adjourned the meeting at 11:51 a.m.