MINUTES
Finance Committee of the
Clean Power Alliance of Southern California
Regular Meeting
Wednesday, June 26, 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 11:01 a.m. and Gabby Monzon, Clerk of the Board, conducted roll call.
Roll Call
Camarillo Susan Santangelo Committee Chair Remote
Calabasas Ed Albrecht Committee Member 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 May 29, 2024, Finance Committee Meeting
2. Receive and File May 2024 Risk Management Team Report
3. Receive and File May 2024 Investment Report
4. Receive and File April 2024 Financial Dashboard
Motion: Committee Member Newman, Thousand Oaks
Second: Committee Member Albrecht, Calabasas
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, reported that CPA closed the month of April with a significant contribution to the net position at $34 million with a strong cash position.
6. A. Recommend that the Board of Directors Approve up to Three Prepayment Transactions with either Goldman Sachs (GS), Morgan Stanley (MS), or Royal Bank of Canada (RBC) as CPA’s Underwriter & Prepaid Supplier, provided that Staff will be Authorized to Complete No More Than Three Transactions in Total; B. Recommend that the Board of Directors Approve the Delegation of Authority to Staff to Select Funding Recipient(s) for Prepayment Transactions Completed with GS and/or MS; If RBC is selected as CPA’s Underwriter & Prepaid Supplier, RBC will also Serve as the Funding Recipient for any Prepayment Transactions Completed with RBC
Kate Freeman, Strategic Finance Manager, presented the proposed Clean Energy Prepayment Transactions; in order to preserve flexibility, having a suite of three options will ensure that CPA receives the best available pricing and deal terms. Current market conditions are positive, and staff views the risks as acceptable. Ms. Freeman provided details about the prepay transactions noting that bonds will be limited obligations of CCCFA, not obligations of CPA.
In response to Committee Member questions about market conditions and the issuance of bonds, Ms. Freeman explained that market conditions are favorable; the achieved savings levels for initial prepays issued in the past 6 months have been between 10-15% for the participating CCA. Ms. Freeman also elaborated on the $4.5 million estimate in prepay transactions, noting that it is a conservative estimate that takes into consideration several factors, including the number of long-term PPAs CPA will execute over the next two years, thereby providing certainty to prepaid suppliers. Mr. McNeil clarified that prepay transactions do include termination provisions for CPA, including not meeting minimum savings. Staff also discussed non-energy unassigned obligations, for example CAISO fees and scheduling coordinator costs that are not included in the prepay transaction.
Responding to questions about committing to 30-year bonds despite only executing 10– 15-year PPAs, Ms. Freeman noted that CPA is able to replace expired PPAs with newly executed PPAs. Lastly, staff identified the Chief Executive Officer as the delegated authority that will select funding recipient(s) for prepayment transactions.
Motion: Committee Member Calaycay, Claremont
Second: Committee Member Zuckerman, Rolling Hills Estates Vote: Item 6 was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
In response to Committee Member Zuckerman’s question about past due accounts, Mr. McNeil noted there hasn’t been much change in balances and SCE’s collection efforts have been slow.
Staff will provide an update later in the year.
ADJOURN
Committee Chair Santangelo adjourned the meeting at 11:43 a.m.