Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
George Tyson, Chair
Town of Los Altos Hills
Larry Klein, Vice Chair
City of Sunnyvale
Elliot Scozzola
City of Campbell
J.R. Fruen
City of Cupertino
Zach Hilton
City of Gilroy
Sally Meadows
City of Los Altos
Rob Rennie
Town of Los Gatos
Garry Barbadillo
City of Milpitas
Bryan Mekechuk
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Pat Showalter
City of Mountain View
Tina Walia
City of Saratoga
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Silicon Valley Clean Energy
Audit Committee Meeting
Monday, October 6, 2025
1:00 p.m.
Silicon Valley Clean Energy Office
333 W. El Camino Real, Suite 330
Sunnyvale, CA
City of Gilroy City Hall
7351 Rosanna Street
Gilroy, CA 95020
Teleconference Meeting Information:
https://svcleanenergy-org.zoom.us/j/81302586463
Or by Telephone (Audio only):
US: +1 669 219-2599
Webinar ID: 813 0258 6463
Members of the public may observe this meeting electronically by accessing the meeting via instructions above. Public Comments can be sent in advance of the meeting via email up to three hours before the meeting begins to Board Clerk Andrea Pizano at [email protected] and will be distributed to the Audit Committee. The public will also have an opportunity to provide comments during the meeting. Members of the public using Zoom may comment during public comment or the applicable agenda item by using the Raise Hand feature and you will be recognized by the Chair. Those using the telephone (audio only) feature should press star 9 on your phones to initiate the “Raise Hand” function in Zoom. You will then be announced, unmuted, and your time to speak will begin.
The public may provide comments on any matter listed on the Agenda. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”) please contact Board Clerk Andrea Pizano at [email protected] prior to the meeting for assistance.
AGENDA
Call to Order
Roll Call
Pursuant to the Americans with Disabilities Act, if you need special assistance in this meeting, please contact the Clerk for the Authority at (408) 721-5301 x1005. Notification 48 hours prior to the meeting will enable the Authority to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35.105 ADA Title II).
George Tyson, Chair
Town of Los Altos Hills
Larry Klein, Vice Chair
City of Sunnyvale
Elliot Scozzola
City of Campbell
J.R. Fruen
City of Cupertino
Zach Hilton
City of Gilroy
Sally Meadows
City of Los Altos
Rob Rennie
Town of Los Gatos
Garry Barbadillo
City of Milpitas
Bryan Mekechuk
City of Monte Sereno
Yvonne Martinez Beltran
City of Morgan Hill
Pat Showalter
City of Mountain View
Tina Walia
City of Saratoga
Otto Lee
County of Santa Clara
svcleanenergy.org
333 W El Camino Real
Suite 330
Sunnyvale, CA 94087
Public Comment on Matters Not Listed on the Agenda
The public may provide comments on any matter not listed on the Agenda provided that it is within the subject matter jurisdiction of SVCE. Speakers are customarily limited to 3 minutes each, however, the Committee Chair may increase or decrease the time allotted to each speaker based on the number of speakers, the length of the agenda and the complexity of the subject matter. Speaking time will not be decreased to less than one minute.
Consent Calendar (Action)
1) Approve Minutes of the February 28, 2025, Audit Committee Meeting Regular Calendar
2) Implementation of GASB 96, Accounting for Subscription-Based Information Technology Arrangements (Discussion)
3) SVCE Financial Audit Kick-off: Sorren CPAs, P.C. (Discussion) 4) Recommend Assignment of Auditor Contract to Sorren CPAs, P.C. (Action) 5) Information Technology and Cybersecurity Assessment Update (Discussion) Committee/Staff Remarks
Adjourn
Silicon Valley Clean Energy
Audit Committee Meeting
Friday, February 28, 2025
2:00 p.m.
Silicon Valley Clean Energy Office
333 W. El Camino Real, Suite 330
Sunnyvale, CA
City of Gilroy City Hall
7351 Rosanna Street
Gilroy, CA 95020
DRAFT MEETING MINUTES
Call to Order
Chair Mekechuk called the meeting to order at 2:03 p.m.
Roll Call
Present:
Bryan Mekechuk (Chair), Monte Sereno
Sergio Lopez (Vice Chair), Campbell
George Tyson, Los Altos Hills
Harjot Sangha, Gilroy (Participated remotely)
Absent:
None
Public Comment on Matters Not Listed on the Agenda
No speakers.
Consent Calendar
Chair Mekechuk opened public comment.
No speakers.
Chair Mekechuk closed public comment.
MOTION: Director Tyson moved and Alternate Director Lopez seconded the motion to approve the Consent Calendar.
The motion carried unanimously by verbal roll call vote. 1) Approve Minutes of the October 21, 2024, Audit Committee Meeting Prior to the Regular Calendar, Chair Mekechuk suggested Item 5) Receive Financial Audit Report from Pisenti & Brinker, LLP and Recommend the SVCE Board of Directors Accept the Audit Findings, be heard following Item 2; there were no objections from committee members.
Item 1 1 Draft Minutes 02/28/25 Audit Committee Meeting Regular Calendar
2) Elect Chair and Vice Chair of the 2025 SVCE Audit Committee (Action) Director Mekechuk expressed interest in serving as Chair of the 2025 Audit Committee and opened the floor for others interested in the role; no other committee members expressed interested.
MOTION: Alternate Director Lopez moved and Director Tyson seconded the motion to nominate Director Bryan Mekechuk to serve as Chair of SVCE’s 2025 Audit Committee.
Chair Mekechuk opened public comment.
No speakers.
Chair Mekechuk closed public comment.
The motion carried unanimously by verbal roll call vote.
Following Chair Mekechuk’s appointment as Chair, the Audit Committee proceeded with identifying a Vice Chair.
Alternate Director Lopez expressed interest in serving as Vice Chair of the 2025 Audit Committee.
MOTION: Committee member Sangha moved and Director Tyson seconded the motion to nominate Alternate Director Lopez to serve as Vice Chair of SVCE’s 2025 Audit Committee.
Chair Mekechuk opened public comment.
No speakers.
Chair Mekechuk closed public comment.
The motion carried unanimously by verbal roll call vote.
Following the vote on Item 2, the Committee considered Item 5. 3) Overview of Committee Function (Discussion)
This item was heard following the vote on Item 5.
Amrit Singh, Chief Financial Officer (CFO) and Director of Administrative Services, presented an overview of the SVCE Audit Committee, which included:
• The purpose of the Audit Committee;
• An overview of SVCE’s finance and accounting procedures, and the role of Maher Accountancy relating to finance functions and accounting services;
• Review of the purpose of the committee;
• An overview of the process of the completion of the Financial Audit; • An overview of SVCE’s IT audits; and
• Meeting timing
Chair Mekechuk provided a statement regarding closed sessions of Audit committee meetings.
Chair Mekechuk opened public comment.
No speakers.
Chair Mekechuk closed public comment.
Item 1 2 Draft Minutes 02/28/25 Audit Committee Meeting 4) Approve Assignment of Auditor Contract to Kosmatka Donnelly & Co. LLP (Action) CFO and Director of Administrative Services Singh provided information regarding the merger of Pisenti & Brinker LLP, with Kosmatka Donnelly & Co. LLP, and recommended that the Audit Committee accept the assignment to Kosmatka Donnelly & Co. LLP for the remaining contract duration. CFO and Director of Administrative Services Singh noted if the committee were to support staff’s recommendation, staff would include the item on the Consent Calendar for the Board of Directors consideration for approval at the next Board of Directors meeting.
Chair Mekechuk opened public comment.
No speakers.
Chair Mekechuk closed public comment.
Staff responded to committee member questions regarding audit partner contract terms.
MOTION: Director Tyson moved and Vice Chair Lopez seconded the motion to approve the assignment of auditor contract to Kosmatka Donnelly & Co. LLP.
The motion carried unanimously by verbal roll call vote.
Following the vote on Item 4, the committee heard Item 6. 5) Receive Financial Audit Report from Pisenti & Brinker, LLP and Recommend the SVCE Board of Directors Accept the Audit Findings (Action)
Item 5 was considered following the vote on Item 2.
Kellin Gilbert, CPA, Pisenti & Brinker LLP presented results of the current year financial audit, which was an unmodified opinion, and announced that Pisenti & Brinker LLP joined practices with Kosmatka Donnelly & Co., LLP, noting there would be no changes to staffing, costs or timing of services provided to SVCE.
Mr. Gilbert presented information on the roles and responsibilities of management and the auditor, risk assessment procedures, audit procedures, and required Board communications.
Mr. Gilbert responded to questions and comments from committee members regarding responsibilities and the differentiation between the financial statements and the Management’s Discussion and Analysis (MD&A), notes to the financial statements and disclosure in the notes, and Maher Accountancy’s role in the financial audit.
Chair Mekechuk opened public comment.
No speakers.
Chair Mekechuk closed public comment.
Director Tyson and Vice Chair Lopez provided supportive comments regarding the audit results.
MOTION: Vice Chair Lopez moved and Director Tyson seconded the motion to accept the results of the financial audit.
The motion carried unanimously by verbal roll call vote.
Following the vote on Item 5, the committee considered Item 3.
Item 1 3 Draft Minutes 02/28/25 Audit Committee Meeting 6) Establish Rate Stabilization Fund Under GASB 62 (Informational) Item 6 was heard following Item 4.
CFO and Director of Administrative Services Singh provided a presentation regarding establishing a potential Rate Stabilization Fund under the GASB 62 accounting rule, that included the following:
• Discussion of accounting rule GASB 62; enabling revenue recognition deferment to a future period; • CCA’s usage of GASB 62;
• Financial statement impact;
• Potential impact on readers of financial statements;
• SVCE reserves and the Rate Stabilization Fund; and
• Criteria for deferring and recognizing revenues
Staff responded to questions and comments from committee members regarding the year end for Marin Clean Energy, clarification on the statement of net position and where the deferred inflows would be seen, adjustment of the rate stabilization balance, and the impetus behind the request to establish a Rate Stabilization Fund. CFO and Director of Administrative Services Singh noted the item would be brought to the Board of Directors on the Consent Calendar at the next Board of Directors meeting.
Chair Mekechuk opened public comment.
No speakers.
Chair Mekechuk closed public comment.
Public Comment on Closed Session
No speakers.
The Committee convened to Closed Session at 3:00 p.m.
Closed Session
THREAT TO PUBLIC SERVICES OR FACILITIES
Consultation with: Amrit Singh, Chief Financial Officer and Director of Administrative Services, Nik Zanotto, Senior Manager of IT and Administrative Services
The Committee returned from Closed Session at 3:38 p.m.
Report from Closed Session
Chair Mekechuk announced there was nothing to report.
Adjourn
Chair Mekechuk adjourned the meeting at 3:39 p.m.
ATTEST:
_____________________________
Andrea Pizano, Board Secretary
Item 1 4 Draft Minutes 02/28/25 Audit Committee Meeting
Staff Report – Item 2
Item 2: Implementation of GASB 96, Accounting for Subscription-Based Information Technology Arrangements
From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 10/6/2025
This item will be addressed in the form of a presentation by Mike Maher of Maher Accountancy.
ATTACHMENT
The presentation for this item is posted to the SVCE website.
Item 2
Staff Report – Item 3
Item 3: SVCE Financial Audit Kick-off: Sorren CPAs, P.C.
From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Senior Board Clerk/Executive Assistant Date: 10/6/2025
This item will be addressed in the form of a presentation by the financial auditors, Sorren CPAs, P.C. (formerly Kosmatka Donnelly & Co., LLP).
ATTACHMENT
The presentation for this item is posted to the SVCE website.
Item 3
Staff Report – Item 4
Item 4: Recommend Assignment of Auditor Contract to Sorren CPAs, P.C.
From: Monica Padilla, CEO
Prepared by: Michael Callahan, General Counsel
Date: 10/6/2025
RECOMMENDATION
Staff recommends that the Audit Committee recommend the Silicon Valley Clean Energy (SVCE) Board of Directors (“Board”) to approve the assignment of the auditor contract from Kosmatka Donnelly & Co., LLP (“KDP”) to Sorren CPAs, P.C. (“Sorren”).
BACKGROUND
Our current auditor, KDP, announced they have merged with Sorren. The Board is responsible for selecting the auditor and may determine whether to accept the assignment of the current contract to Sorren CPAs, P.C.
ANALYSIS & DISCUSSION
The Audit Committee and Board had previously selected our current auditor Pisenti & Brinker LLP (“P&B”). On January 29, 2025, P&B informed SVCE that it has merged with KDP and intends to continue to perform under the agreement. On September 5, 2025, KDP informed SVCE that they had another merger with Sorren, the intent is still to continue to perform under the agreement. Section 12 of SVCE’s agreement defines a change of ownership as an assignment and SVCE must consent to assign the agreement.
Currently, the audit is going to be started, and staff sees no value in refusing to accept the assignment at this time. Staff recommends that the contract continue to its current term of September 30, 2027 because the services and terms of the original contract will remain the same under the assignment.
STRATEGIC PLAN
N/A – SVCE is required by law to perform an audit.
ALTERNATIVE
An alternative would result in terminating the auditor agreement. Staff recommends against this alternative, as that would require staff to initiate a solicitation right before annual audit starts.
FISCAL IMPACT
No fiscal impact from accepting the assignment of the KDP contract to Sorren contract.
Item 4
Staff Report – Item 5
Item 5: Information Technology and Cybersecurity Assessment Update From: Monica Padilla, CEO
Prepared by: Andrea Pizano, Sr. Executive Assistant and Board Clerk Date: 10/6/2025
This item will be addressed in the form of a report from Nik Zanotto, Director of Operations.
Item 5