MINUTES
Finance Committee
of the Clean Power Alliance of Southern California
Regular Meeting
Wednesday, February 26, 2025, 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:
Carson City Hall
City Manager’s Conference Room
701 East Carson Street
Carson, CA 90745
Clean Power Alliance Office
Executive Conference Room
801 S. Grand Ave., Suite 400
Los Angeles, CA 90017
Calabasas City Hall
Council Conference Room
100 Civic Center Way
Calabasas, CA 91302
Camarillo City Hall
Administrative Conference Room
601 Carmen Drive
Camarillo, CA 93010
Claremont City Hall
Council Office
207 Harvard Avenue
Claremont, CA 91711
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
Chair Santangelo called the meeting to order at 11:00 a.m. and Annie Mendoza, Deputy Board Clerk, 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 December 3, 2024, Finance Committee Meeting
2. Receive and File January 2025 Risk Management Team Report
3. Receive and File October 2024 Investment Report
4. Receive and File Quarterly Financial Report
Motion: Committee Member Albrecht, Calabasas
Second: Committee Member Calaycay, Claremont
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, discussed results for the first half of the fiscal year. CPA is ahead of budget and has made significant progress toward its days liquidity on hand and reserve targets. Mr. McNeil noted that the January wildfires will not have a material financial or operational impact on CPA.
Committee Member Albrecht asked about future interest rates and whether CPA purchases international or domestic products. Mr. McNeil explained that estimates of interest rates vary. CPA buys only domestically produced electricity but has previously bought power from British Columbia.
6. Receive Presentation on FY 2024-25 Auditor Selection and Provide Staff with Direction
Hui Lisano, Senior Director of Finance and Accounting, presented options for selecting audit services for FY 2024/25 and subsequent years, and requested direction from the Finance Committee. Ms. Lisano requested direction from the Committee on which option to proceed with: Option 1 involves soliciting written quotes from qualified audit firms and Option 2 requests proposals from any auditors, including the big four international accounting firms and local accounting firms.
Committee Member Zuckerman asked about the importance of CCA and municipal electric utility experience and whether staff know which auditors other CCA’s use.
Staff responded that auditors’ experience in both areas is important, and that staff are aware of which auditors are used by CCAs in California. Committee Member Newman asked about the drawbacks of Option 2. Ms. Lisano replied that CPA would receive numerous bids, and reviewing them could take up to 60 days, while the first option would yield three bids, resulting in a shorter processing time.
Committee Member Kulcsar noted support for Option 2, stating that CPA has grown as an organization and may benefit from various proposals. Committee Member Kulcsar suggested that a review committee could be created to help staff review bids.
Committee Member Calaycay asked for staff’s input on reviewing multiple proposals; Mr. McNeil stated that it would take some effort to get auditing firms to submit bids. The last time CPA went through this process, seven firms were contacted and only two bids were submitted. Committee Member Newman expressed support for casting a wider net to include different auditing firms, while also being cautious about collaborating with a firm that has no CCA experience.
Committee Member Albrecht expressed support for Option 2, while also noting that with a larger firm, CPA may not receive as much attention or quality customer service.
Chair Santangelo indicated preference for an auditor with experience in electric utilities and CCAs that can also provide the quality of customer service that CPA received from Baker Tilly.
Motion: Committee Member Calaycay, Claremont for Option 2 Second: Committee Member Kulcsar, Carson
Vote: Option 2 of Item 6 was approved by a roll call vote.
COMMITTEE MEMBER COMMENTS
Committee Member Zuckerman asked if CPA still requires a Letter of Credit, even though the organization has been building reserves. Mr. McNeil replied that a Letter of Credit is essential in CPA operations, particularly regarding Resource Adequacy. The alternative would be to post cash, which is not beneficial. In the future, CPA may reduce its total line of credit.
ADJOURN
Chair Santangelo adjourned the meeting at 11:58 a.m.