Unknown: Ladies and gentlemen, welcome to a traditional
Unknown: you
Unknown: on leisure on our walks Detail
Unknown: Good evening. I'll call to order the SMUD Board of Directors meeting of April 16, 2026.
SPEAKER_19: Please rise and join me in the pledge to the flag.
Unknown: I pledge allegiance to the flag of the United States of America and to the republic for
SPEAKER_02: which it stands, one nation under God, indivisible, with liberty and justice for all.
SPEAKER_19: This meeting of the SMUD Board of Directors is recorded with closed captioning. The recording
SPEAKER_19: will be cablecast on Metro Cable 14, Channel 14, the local government affairs channel on
SPEAKER_19: the Comcast and DirecTV U-verse cable systems. The recording will also be video streamed
SPEAKER_19: at Metro14live.sackcounty.gov. Today's meeting replays Sunday, April 19, at 2 p.m. and Monday,
SPEAKER_19: April 20, at 9 a.m. on Metro Cable Channel 14. Once posted, the recording of this meeting
SPEAKER_19: can be viewed on demand at youtube.com. Please remember to unmute your microphone when speaking
SPEAKER_19: in order that our virtual attendees may hear. The microphone will display a green indicator
SPEAKER_19: light when the mic is on. Please put all electronic devices in the silent mode while in the auditorium.
SPEAKER_19: For members of the public attending in person who wish to speak at this meeting, please
SPEAKER_19: fill out a speaker's request form located on the table outside this room and hand it
SPEAKER_19: to SMUD security. Members of the public attending this meeting virtually who wish to provide
SPEAKER_19: verbal comments during the board meeting may do so by using the raise hand feature in Zoom
SPEAKER_19: or pressing star 9 while dialed into the telephone toll-free number at the time public comment
SPEAKER_19: is called. Technical support staff will enable the audio for you when your name is announced
SPEAKER_19: during the public comment period. You may also submit written comments by e-mailing
SPEAKER_19: them to public comment at SMUD.org. Written comments will not be read into the record
SPEAKER_19: but will be provided to the board electronically and placed into the record of the meeting if
SPEAKER_19: received within two hours after the meeting ends. Members may speak to items on the agenda
SPEAKER_19: on which the board will take action and may also address the board on other agenda items
SPEAKER_19: and items not on the agenda but within our jurisdiction during the general comment period.
SPEAKER_19: The auditorium is equipped with a safety alarm. If the alarm sounds, please leave in an orderly
SPEAKER_19: manner via the exits to the lobby or behind the dais. Assemble in front of the building
SPEAKER_19: and wait to hear the all clear announcement from security before reentering. With the
SPEAKER_19: chief legal officer, please conduct a roll call. Director Rose? Director Buie-Thompson?
SPEAKER_10: Present. Director Fishman? Here. Director Herber? Here. Vice President Kurth? Here.
SPEAKER_19: Director Sanborn? Here. President Tamayo? Here. You have a quorum. Thank you. And now
SPEAKER_19: Director Buie-Thompson will read our 2030s climate action tip. Thank you. For April,
SPEAKER_06: we have some great waste tips for us. SMUD is working towards 100% zero carbon by 2030. There
SPEAKER_06: are lots you can do to help us lead the global clean power city movement. April is Earth Month
SPEAKER_06: and there are many things you can do to celebrate. Waste and landfills are significant source of
SPEAKER_06: methane, a potent and harmful greenhouse gas that traps heat in the atmosphere. You can help reduce
SPEAKER_06: what ends up in landfills by choosing reusable materials, avoiding plastics, and growing paper
SPEAKER_06: lists with your monthly SMUD bills. Join the charge with us and visit cleanpowercity.org to
SPEAKER_06: learn more. Thank you. At this point, if there are no corrections, changes or additions, I'll
SPEAKER_19: entertain a motion to approve the agenda. So moved. Second. Okay. Moved by Director Herber,
SPEAKER_19: seconded by Vice President Kurth. Directors, please vote. The agenda is approved with Director
SPEAKER_10: Rose-Absent. Thank you. Now moving on to our committee chair reports. Director Sanborn,
SPEAKER_19: chair of the Strategic Development Committee, will give the report of the April 7, 2026 meeting.
Unknown: Thank you, President Tomao. The Strategic Development Committee met on Tuesday, April 7,
SPEAKER_09: and there was one informational item. And that item was to provide the board with an internal
SPEAKER_09: and external presentation on the vehicle to grid technologies that we're researching. Zach Wogan,
SPEAKER_09: executive director, excuse me, with the Vehicle to Grid Integration Council, is focused on
SPEAKER_09: unlocking the value of managed charging, bidirectional charging, and DER paired charging.
Unknown: Some highlights of his presentation were that the ways that EVs can provide services to the grid,
SPEAKER_09: the EV energy bridal group study finds that $5 billion of avoided costs from passive managed
SPEAKER_09: charging and $13 billion from active managed charging and $12 billion from bidirectional
SPEAKER_09: charging by 2035 nationwide. And in California, managed charging can save $4.2 billion in system
SPEAKER_09: costs by 2045. And bidirectional charging capability can unlock an additional $3.5 billion
SPEAKER_09: at a modest 12.5 participation rate, 20%. Smud's director of research and development,
SPEAKER_09: grants and partnerships, and zero carbon energy solutions, James Fraser, gave a presentation on
SPEAKER_09: the local market for potential vehicle to grid technology and Smud's vehicle to grid integration
SPEAKER_09: initiatives. Smud is actively exploring vehicle to grid opportunities, particularly focusing on
SPEAKER_09: electric school buses to support both local transportation needs and grid services. There
SPEAKER_09: are 800 school buses across 13 districts with 111 electric buses already in service as of December
SPEAKER_09: of 2025. And 72 are equipped for vehicle to grid use. Smud's initiatives prioritize grid resilience,
SPEAKER_09: resource optimization, infrastructure support and decarbonization, all within a collaborative
SPEAKER_09: ecosystem involving service providers, aggregators, hardware vendors, and school districts. A successful
SPEAKER_09: vehicle to grid requires, our program requires advanced bidirectional charging technology,
SPEAKER_09: effective communication systems, and operational coordination to ensure vehicles are available
SPEAKER_09: and ready to support both transportation and grid demands. This concludes my report.
Unknown: Thank you, Director Sanborn and now Director Herber, chair of the policy committee, will give
SPEAKER_19: the report of the April 7, 2026 meeting. Thank you, President Tamayo. The policy committee met
SPEAKER_01: on Tuesday, April 7, and there were five discussion items and one informational item. The first
SPEAKER_01: discussion item was to approve the Smud disclosure in the transmission agency of Northern California
SPEAKER_01: 2026 refunding bonds preliminary official statements. As a result of the refinancing,
SPEAKER_01: Smud is expected to save approximately $700,000 annually for the next 13 years. Good job, Smud.
SPEAKER_01: The second discussion item was the monitoring report for Strategic Direction 6, which is
SPEAKER_01: safety leadership. Safety continues to be the top priority at Smud for employees, contractors,
SPEAKER_01: and the community. Smud continues to meet its target of minimizing workplace injuries. With
SPEAKER_01: ongoing improvements and expansion to Smud's safety management system, Smud delivered on its
SPEAKER_01: goal of reducing injury incidents to less than 13 in 2025, as measured by OSHA's days away restricted
SPEAKER_01: time or DART. This is item 5 on tonight's consent calendar. The third discussion item was revisions
SPEAKER_01: to the monitoring report for Strategic Direction 6, safety leadership. Revisions include reducing
SPEAKER_01: safety incidents to zero, that's right, zero by 2030, providing timely, quality health care for injured
SPEAKER_01: employees and tracking and reporting incidents involving the public related to Smud's operations
SPEAKER_01: or facilities. This will be added to the consent calendar for the May board meeting. The fourth
SPEAKER_01: discussion item was to discuss the potential amendment of governance process 12 related to
SPEAKER_01: board compensation and benefits. This is item number 10 on tonight's discussion calendar. The fifth item
SPEAKER_01: on the governance process 2, governance focus, governance process 4, board committee work plan
SPEAKER_01: and agenda planning and governance process 13, core and key values found,
SPEAKER_01: core and key values in these different governance processes that we found that core and key values
SPEAKER_01: were in high compliance with these processes. The informational item was a review of the board's work
SPEAKER_01: plan. This concludes my report. Thank you, Director Herber. And now Director Bowie-Thompson, the vice
SPEAKER_19: chair of the finance and audit committee will give the report of the April 14, 2026 meeting.
Unknown: Thank you. There are four discussion items and two informational items. The first discussion item was
SPEAKER_06: to approve the updated solar and storage export compensation rate that's effective this June 1st.
SPEAKER_06: This is item number 6 on the consent calendar. The second discussion item was to authorize the CEO
SPEAKER_06: and general manager to execute the water form 2050 agreement including the Sacramento municipal
SPEAKER_06: utility district purveyor specific agreement. This is item number 7 on the consent calendar.
SPEAKER_06: The third discussion item was to authorize the CEO and general manager to negotiate an award as
SPEAKER_06: social contract to ITRA network solutions to purchase smart meters compatible with our advanced
SPEAKER_06: metering infrastructure. The contract would be a five-year period through April 2031 for up to
SPEAKER_06: $40 million. This is item number 8 on the consent calendar. The fourth discussion item was to
SPEAKER_06: authorize the CEO and general manager to negotiate and award contracts to Aspen environmental,
Unknown: AECOM technical services, Ascent and GEI to provide environmental and California
Unknown: quality act also known as CEQA support services. The contract runs for a three-year period between
SPEAKER_06: April 27th, 2026 to April 26th, 2029 with one optional two-year extension for up to $12 million.
SPEAKER_06: This is item number 9 on the consent calendar. The first informational item was to provide the board
SPEAKER_06: the summary of SMUD's financial results from the two-month period ending February 28th,
SPEAKER_06: 2026 and the summary of SMUD's current power supply costs. The second informational item was
SPEAKER_06: the internal audit services report on the status of recommendations for Q1, 2026 and rubber goods
SPEAKER_06: testing. This concludes the reports. All right. And now Director Bowie Thompson, the chair of the
SPEAKER_19: energy resources and customer services committee will give the report of the April 15th, 2026
SPEAKER_19: meeting. Thank you. There was one informational item and it was to present the board with the 2030
SPEAKER_06: carbon plan, which is our semi-annual update and included information on utility skill project
SPEAKER_06: progress, progress towards 23 goals, reliability and affordability considerations, and our integrated
SPEAKER_06: resource plan also known as IRP. We've been tracking our journey to zero designed to be a
SPEAKER_06: flexible pathway with a firm commitment to regard rails of reliability, affordability and safety.
SPEAKER_06: We continue to experience a variety of headwinds and challenges as we continue pursuing our goal,
SPEAKER_06: including scaling new technology, resource costs and regulatory issues. We continue to progress
SPEAKER_06: to our utility skill projects, including local renewable and storage projects
SPEAKER_06: and regional renewables. In regards to there are new technology options and which includes the
SPEAKER_06: CalPine Sutter carbon capture and sequestration project. We're also collaborating to develop a
SPEAKER_06: potential power purchase agreement. Last fall, we had a 16 day Tulee fog event that we all
SPEAKER_06: suffered through that reduced solar generation to as low as 10% of our potential maximum generation,
SPEAKER_06: which provides a key study of the critical nature of capacity value.
SPEAKER_06: There are updated reliability studies that confirms that when our country acres solar and
SPEAKER_06: storage project comes online, we'll be able to replace our McClellan and Campbell thermal plants.
SPEAKER_06: There's parallel availability of these thermal plants that would still be needed to ensure a
SPEAKER_06: reliable transition. We're also working on retooling of the Procter and Gamble, Campbell soup
SPEAKER_06: generation and consumption as thermal plants. 2026 marks the five year anniversary of the board's
SPEAKER_06: adoption of 2030 zero carbon plan, which formed the basis of our IRP. It's time to update it.
SPEAKER_06: As energy resource costs have increased significantly since 2020, we'll look to answer
SPEAKER_06: some key questions in the new IRP as well as this explore several options to navigate
SPEAKER_06: our affordability quadrails to 2030 and beyond. The IRP will be filled with the California filed
SPEAKER_06: with the California energy commission in September of 2027. Conditions have changed significantly
SPEAKER_06: since we first adopted our zero carbon plan, but we continue to work towards decarbonization
SPEAKER_06: of the greater Sacramento region. This concludes my reports.
Unknown: Thank you very much. At this time, we'll take comments from the public on the consent calendar.
Unknown: I have not received any cards. Do we have any other requests?
Unknown: I don't see any virtual attendees wanting to participate.
Unknown: All right. So we'll move on to our consent calendar.
SPEAKER_19: Item number three is to approve board member compensation for service rendered at the request
SPEAKER_19: of the board for the period of March 16th, 2026 through April 15th, 2026. Item number four is the
SPEAKER_19: approval of the minutes of the meeting of March 19th, 2026. Item number five was reviewed at the
SPEAKER_19: policy committee of April 7th, 2026, and it pertains to our strategic directive six items.
SPEAKER_19: Items number six through nine were reviewed at the finance and audit committee of April 14th,
SPEAKER_19: 2026. Item number six pertains to the solar and storage rate export compensation rate.
SPEAKER_19: Item number seven pertains to the water forum 2050 agreement. Item number eight pertains to the
SPEAKER_19: sole source contract with ITRON network solutions, Inc. for the purchase of smart meters compatible
SPEAKER_19: with SMUD's advanced metering infrastructure. Item number nine pertains to the contract award
SPEAKER_19: for environmental and sequa services. If there are no corrections, changes, or additions,
SPEAKER_19: I'll entertain a motion to approve the consent calendar.
SPEAKER_19: So moved.
SPEAKER_19: Second.
Unknown: Okay. Moved by Director Sanborn, seconded by Director Fishman. Directors, please vote.
Unknown: The consent calendar is approved with all directors voting yes.
Unknown: All right. Thank you. Item number 10 is to discuss with possible amendment governance process GP12
SPEAKER_19: board compensation and benefits, and our presenter is Matthew Powell, our interim director of people,
SPEAKER_19: services, and strategies. Good evening, President Tamayo and Board of Directors. Tonight I'm here
SPEAKER_18: to present on GP12 governing board compensation. Following my presentation of these slides,
SPEAKER_18: I'll be turning it back over to President Tamayo for more discussion by the board. GP12 covers board
SPEAKER_18: compensation and benefits, and it is required to be reviewed on an annual basis. In the MUD Act,
SPEAKER_18: in section 11908.1, it states that the board may adjust compensation by no more than 5% for each
SPEAKER_18: calendar year following the operative date of the last adjustment. The max adjustment for this time
SPEAKER_18: period is $341. Also, compensation is prohibited from automatically adjusting each year. Please
SPEAKER_18: note that the previous adjustment was effective July of 2025 to $325 from 317, approximately a
SPEAKER_18: 3% increase from the previous rate. On this next slide, we have several options for the board's
SPEAKER_18: consideration. The first option is a 2.7% increase, and this represents the annual CPI,
SPEAKER_18: which was effective December of 2025, the trailing 12 months. The next three options are 3,
SPEAKER_18: 4, and 5%, with $335, 338, and $341, respectively, with the increase of 5% at 341 being the maximum
SPEAKER_18: allowable for this change. Of course, the board may also decide to adjust per-day compensation
SPEAKER_18: to a different amount or retain the current $325 as captured in option 5 there on the slide.
Unknown: And any changes would be effective July 1, 2026. And at this point, I will turn it back over to
SPEAKER_18: President Tamayo for discussion. Thank you very much. Excuse me. So we did discuss this
SPEAKER_19: last week, and it sounded like we didn't have unanimity on doing a raise. I know that some
SPEAKER_19: directors didn't want to do a raise at all, and others wanted to do a modest raise. Nobody was
SPEAKER_19: in favor of going to the maximum. But I'd like to find out where directors stand at this point.
SPEAKER_19: So let's just start at the end of the row there. Director Sanborn, you want to...
SPEAKER_19: Sure. So I think, as I said, it feels to me the right thing is usually 2.7 or cost of living,
SPEAKER_09: but I don't like odd numbers. So having 334 go to 335 seemed very reasonable to me,
SPEAKER_09: and I'm still of the mindset that this should be done every year in very modest amounts,
SPEAKER_09: and we just keep pace with cost of living. And that's it.
Unknown: Thank you.
Unknown: Director Herrmann.
SPEAKER_01: Thank you, President Tamayo. I agree with Director Sanborn. I do think it's important for us
SPEAKER_01: to make the adjustment every year. And the reason is that I've seen in the past where
SPEAKER_01: we haven't talked about this, and then there has to be much bigger increases, which I don't like.
SPEAKER_01: We're all working hard as a board. We're trying to keep the rates down. We're grateful that we got
SPEAKER_01: the lights on and great customer service. But I really feel that it's appropriate to have the
SPEAKER_01: cost of living increase, the CPI, and that makes sense to me.
Unknown: So I'm still a no on this for this year, and I understand completely that we don't want to get
SPEAKER_02: into a position where we have to give ourselves some extreme raise to bring us back into line.
SPEAKER_02: But I think we can find some middle ground where every other year we do a modest increase or
SPEAKER_02: even every three years. And for me, honestly, $325 a day for – and let me make it very
SPEAKER_02: clear for the public, this is capped at 10 days a month at most. And if you attend two different
SPEAKER_02: meetings in the same day, it's only one compensation. So nobody's getting rich here by any means.
SPEAKER_02: But I just think we're fairly compensated. And even though we can give ourselves a raise,
SPEAKER_02: doesn't mean we have to give ourselves a raise. So I would prefer to not do it this year,
SPEAKER_02: and we can come back next year and see what seems reasonable.
SPEAKER_02: Director Kurth.
Unknown: There. Thanks. I support the 3 percent or the 2.75, whatever we end up with there. It's – this
SPEAKER_14: kind of thing just needs to be done every year, whatever the CPI is, just keep moving it along.
SPEAKER_14: Otherwise, the adjustment becomes too big, and it's never an uncontroversial thing.
SPEAKER_14: And one other point. This for the 10 events per month, I know most of us go to more than that,
SPEAKER_14: quite a few more than that. And so it has a way of working out. Thanks.
Unknown: Director Buie Thompson.
SPEAKER_06: I also agree. I just feel in general having smaller, more incremental increases is reasonable,
SPEAKER_06: especially with keeping up with CPI. I also have to think about the next people in front of us.
SPEAKER_06: We all may be comfortable and have second jobs that can float this. But I know in my career,
SPEAKER_06: I've made decisions based on this. And for some people that may want to run, having just that
SPEAKER_06: little bit more compensation would make this job easier to handle on just people's budgets. And
SPEAKER_06: like others have said, it's not this grandiose amount. But for some people, just a little bit
SPEAKER_06: more can help their financial situation, because there is a lot of sacrifices. I know when I go
SPEAKER_06: to most events and there's a donation to be had, I typically donate back what I get paid that day.
SPEAKER_06: I rarely actually ever take that. I usually just donate back to the organization. But that's
SPEAKER_06: something that I'm personally able to do. But we can't assume that everybody else can do that,
SPEAKER_06: too, especially when many of us, I just looked at my, you know, for this, and I'm not even
SPEAKER_06: president, president, because there are a million things in a month. I went to eight different
SPEAKER_06: days in just the beginning of April. So I would support the smaller amount to make it even at
SPEAKER_06: 335. So that's 3%. Director Rose. So I will say a few things. I'll definitely sort of more echoing
SPEAKER_13: director Fishman's thoughts. I know when I was new to this board, which was a long time
SPEAKER_13: ago now, it hadn't been adjusted, the pay hadn't been adjusted for 20 years. And so we made a pretty
SPEAKER_13: considerable bump. And we also made the commitment at the time to review that every year, which is
SPEAKER_13: why we're talking about it. For me, it is fair. I mean, we generally I work 20 or 30 hours a week
SPEAKER_13: and take, you know, at least a month off of my day job to go to conferences and some other events. So
SPEAKER_13: I feel like it's a fair balance, but it is certainly public service. And I'm far more
SPEAKER_13: comfortable. We raised it a year ago, I'd be more comfortable on a, you know, every other year basis,
SPEAKER_13: somewhere in that CPI range or less. So I'm not opposed to this. I think raising it
SPEAKER_13: 2% or 3% is fair, but I intend to abstain from this vote tonight. Thank you.
Unknown: All right. So I'm counting votes here and it looks like you have one. Well, I'll state my, I support
SPEAKER_19: a, the 3% to 335 is just slightly over our CPI of 2.7. And really just to get us instead of
SPEAKER_19: 334, it'll be 335, which is almost an aesthetic consideration. So we, it appears to me that we have
SPEAKER_19: five votes for a modest raise in two votes against. Would anybody care to propose a specific motion,
SPEAKER_19: including an amount? I'll make the motion to adjust to the 3% 335 per meeting.
Unknown: I second that. Okay. So motion by director Sanborn, seconded by director Bowie Thompson
SPEAKER_19: as a motion to approve an increase of 3% to board compensation effective July 1st,
SPEAKER_19: 2026. So the final amount would be, it will be adjusted to $335 a month. So directors,
Unknown: do we have any, um, 3 35 to per day, per day of service per year? Excuse me. Yeah.
SPEAKER_19: 3 35 a month. Well, that kind of undo the whole thing. All right. So the, correct the,
SPEAKER_19: the motion to approve an increase of $335 per day, uh, for board compensation effective July 1st,
SPEAKER_19: 2026. Did I get that close enough this time? So having trouble with units this last couple of days.
SPEAKER_19: All right. So, um, directors, please vote.
Unknown: All right. Well, thank you very much. Um,
Unknown: at this point, uh, we allow the public to comment on items, not on the agenda,
Unknown: but within our jurisdiction. And I've received two cards. One is from Nate. Uh, so you can make
SPEAKER_19: your way up to the mic and then, uh, the second person is Scott Slatterbeck. And, uh, please be
SPEAKER_19: prepared to come up to the, um, microphone once Nate is done. You're Nate? I am. Yes, sir. All
SPEAKER_19: right. So, um, don't touch the microphone. You'll be electrocuted if you do. And, uh, so, um, and you
SPEAKER_19: have three minutes. Let's see. Were there any other instructions? Okay. May I begin? Yeah, go ahead.
SPEAKER_15: Thank you. My name is Nate Dobinek. I'm here on behalf of the McClatchy High School
SPEAKER_15: teacher, parent, parent teacher, student association, the most celebrated high school
SPEAKER_15: in all of Sacramento. No debate on that. Go Lions. Um, I would love to talk to you about all the
SPEAKER_15: wonderful things that the PTS day is doing. The teacher appreciation events, the mini grants to
SPEAKER_15: teachers, the senior scholarships, the graduation night, all of that. But the reality is, is that
SPEAKER_15: I'm here for two asks. One of urgency and the other one strategic. Over the last three years,
SPEAKER_15: McClatchy PTSA has been supporting a student-led initiative to focus on traffic safety
SPEAKER_15: and traffic choices. And that has led us to the realization recently that the Sacramento
SPEAKER_15: ride free R.T. program funding ends as of the end of June, uh, 2026. So coming right up, we,
SPEAKER_15: I don't have time within the two minutes remaining to talk about how we got here,
Unknown: but right now it's cobbled together with funding from a pie of sources, including Sacramento
SPEAKER_15: County, the four cities of Sacramento, Elk Grove, Rancho Cordova, Carmichael, and districts,
SPEAKER_15: school districts of Sacramento, Twin Rivers, Natomas, Elk Grove, and, um, one other I'm
SPEAKER_15: forgetting. But all of those districts are contributing. However, this year, the school
SPEAKER_15: district is in incredible duress. They have an existential financial crisis, as you're probably
SPEAKER_15: aware, and they will probably be unable to fulfill their contributions towards this. So
Unknown: the whopping budget for the ride free program is 1.5 million, a de minimis amount really in the
SPEAKER_15: scheme of a larger organizational efforts. And so what we are here to do is to step into the,
SPEAKER_15: see if SMUD would be willing to step into that space. There is a tremendous overlap. Director
SPEAKER_15: Sanborn talked about the electric buses. Thompson talked about the need for the carbon free. McClatchy
SPEAKER_15: is prime located along bus route 62 and the blue line, as well as many of the other school districts
SPEAKER_15: in the county. Another thing to consider, it's embraced by the students in 2021 ridership by
SPEAKER_15: the ride free program by students with 600,000. 2024, 4.2 million. It's a sevenfold increase
SPEAKER_15: there. It's incredibly popular. It is almost now the de facto way a lot of students get to school.
SPEAKER_15: And it's 24, 7, 365. They get to work. They go to other places. They go, I know my kid went out to
SPEAKER_15: Folsom. I say, how did you get out there to go to the outlets? They went, uh, I took RT. You know,
SPEAKER_15: we took the light rail. I went, oh. So free range kids are back. They're going to be moving around,
SPEAKER_15: taking stuff once they get on that bus system and they're used to it. And that encourages them to
SPEAKER_15: become lifelong riders and adapt to that. So we are facing an issue now, and that's why it's
SPEAKER_15: an unusual for a PTSA to come to an agency like Spud and say $250,000 is necessary. In the last few
SPEAKER_15: seconds, I'll ask that we are now approaching the school district, the city, Sutter Health, all the
SPEAKER_15: other agencies. And we're looking for basically either the city or the school district to champion
SPEAKER_15: this program and create an actual sustainable strategic model. And we would like to invite
SPEAKER_15: Spud to participate in that when it's time. Thank you. Thank you very much. Paul, can you have maybe
SPEAKER_19: somebody talk, talk to, I'm sorry, I didn't remember, to Nate. Yeah. We can certainly actually look into
SPEAKER_19: it. All right. Great. And looks like Director Fishman, you have something to say. Well, this isn't on
SPEAKER_02: the agenda or anything, so I guess I don't need to leave the room. Okay. Nate, my day job is with
SPEAKER_02: Sacramento Regional Transit. So if this were to come up on the agenda, I would need to recuse myself.
SPEAKER_02: Thank you. All right. Can I just say thank you for bringing this to our attention? Absolutely.
SPEAKER_19: Yeah, I want to thank you too. It's actually very well said. I appreciate your comments.
SPEAKER_19: All right. Now, Mr. Slatterbeck, are you here? Come on up.
SPEAKER_00: No doubt aware there's a nuclear renaissance undergoing in the nation as a whole.
Unknown: I know that Spud has its own interesting history with nuclear power. I also am aware that there
SPEAKER_00: is a state law that prohibits the construction of new nuclear power generation facilities.
Unknown: I wanted to ask the board if it has explored bringing nuclear back to Spud and if it has
SPEAKER_00: looked into lobbying efforts to repeal this very outdated state law that prohibits clean,
SPEAKER_00: safe, carbon free power generation for the future. As everyone knows, Sacramento is
SPEAKER_00: kind of atypical in that it is still growing somewhat. And there is an increasing demand for
SPEAKER_00: energy. I think we all know that data centers, which is a controversial subject, requires
SPEAKER_00: massive amounts of power. If Sacramento does not explore keeping up with these kinds of demands,
SPEAKER_00: for the future, Sacramento will be left in the dust. And power is ever increasing in
SPEAKER_00: the function of everyday life, as we all know. I'm sure Spud is aware that power consumption
SPEAKER_00: continues to rise every year. And I just wanted to know if the board has explored lobbying to have
SPEAKER_00: this legislation statewide repealed and if it has looked into bringing nuclear back, probably in
SPEAKER_00: the form of a microreactor, to Sacramento, probably run by a private entity or consortium because of
SPEAKER_00: the interesting history Spud had with Rancho Seco. I mean, I have read some of the reports and
SPEAKER_00: I think it would be advantageous to the board to explore this using a private entity or consortium
SPEAKER_00: of other companies to bring nuclear back to Sacramento, clean, safe, carbon-free power.
Unknown: Thank you very much, Mr. Slatterbeck. I will say we can't really get into a discussion, but we did
SPEAKER_19: have a presentation to the board from I think a couple of different folks in the industry.
SPEAKER_19: Earlier this year or late last year, and staff can help you find the record of that. There's a
SPEAKER_19: full recording of our sound recording, I believe, of that. And then I will say that it didn't appear
SPEAKER_19: at that time that we're going to pursue any lobbying effort, but we understand the barrier.
SPEAKER_19: And anyway, so we have looked into it. And if somebody from staff could help Mr. Slatterbeck
SPEAKER_19: find the record for that meeting, then you'll see what we were talking about. Thank you very much.
Unknown: All right. Have we received any requests to speak from our virtual attendees for items not on the
SPEAKER_19: agenda? No, we have not. Okay. Thank you. At this point in the agenda, we provide the directors an
SPEAKER_19: opportunity to report on SMUD activity. And we'll begin with Director Rose and Ward 1 and continue
SPEAKER_19: in ward order with the President's report as the final item. All right. Thank you. President
SPEAKER_13: Tamayo, I'll be brief. As I typically am, I had the opportunity to go to the California Municipal
SPEAKER_13: Utilities Association annual conference. And it's always a great opportunity to have some one-on-one
SPEAKER_13: time with the other public utilities and public agencies around the state. And so I appreciated
SPEAKER_13: that opportunity. I also spent a few hours with our legislative staff at the Capitol,
SPEAKER_13: along with several other board members, and having meetings with our legislative delegation about some
SPEAKER_13: of our priorities. And I'm sure several others will talk about that tonight as well. We're headed
SPEAKER_13: off to Capitol to Capitol this weekend, but I've spent a number of meetings with the energy team
SPEAKER_13: preparing for that and having our briefing papers together. We had a really excellent
SPEAKER_13: presentation that I just wanted to point out from our lobbyist in Washington, D.C., Elizabeth
SPEAKER_13: Whitney, really outlining the best ways to engage given the current political climates and what the
SPEAKER_13: priorities are. And so I thought that was particularly interesting and useful preparation.
SPEAKER_13: And the last thing I think I would mention other than this, the array of different meetings we've
SPEAKER_13: had. We had that big giant thunderstorm come through the other night, and we had quite a few outages.
SPEAKER_13: And so I went out into a little mini personal site visit in Orangeville. It's one of the longer
SPEAKER_13: outages. And our crew, I tracked down our crew, which was right there, and they were, of course,
SPEAKER_13: up on top of a pole in a, like, downpour, getting these people's lights back on. And so I just wanted
SPEAKER_13: to say I appreciate our staff. That was a Sunday afternoon. The crew had been out since 6 a.m.
SPEAKER_13: They had worked the previous week before they were not on call. They simply got a call
SPEAKER_13: that morning to ask them to come into work, and there they were helping out the people of
SPEAKER_13: Sacramento. And so with that, I think anything else I left out, the rest of you will cover. Thank you.
Unknown: Great. Thank you. There were lots of fun things over the last month.
SPEAKER_06: I wanted to highlight that SMUD was the main sponsor of the Sacramento King sustainability
SPEAKER_06: night, which is great to see all the, it's nice, but also we had our trucks out there so people
SPEAKER_06: could see our electric trucks, and they had sustainability tips throughout the night.
SPEAKER_06: One of my favorite events for the last, I looked in my first chapter was in 2009. So it's been a
SPEAKER_06: minute. I counted up 13 years. I haven't been able to make all of them. But the Rancho Seco
SPEAKER_06: Trout Durbin, I always like reading out the names. It was a Wizard of Oz weekend out there. So thank
SPEAKER_06: you for all the anglers who survived the torrential rain, winds. I think we lost three tenths.
Unknown: It was pretty brutal out there, but our event is rain or shine. So I wanted to give acknowledgement
SPEAKER_06: for the people who survived both day one and day two for the trout derby. So I do like to acknowledge
SPEAKER_06: that there are three categories. When I started this many moons ago, we just had it for adults
SPEAKER_06: and not the little ones. So for our kids division, we had for day one, we had five top place winners
SPEAKER_06: and they actually did quite well. We had Adeline Yeager, Violet Machado, Elijah Dron,
SPEAKER_06: Ela Garcia and the Arturo Velasco with a big 3.42 pounds. The juniors, top finishers were Nathan
Unknown: Blizzard, Yusef Mohammed, Tim Jersey, Adrian Avala, Grace Machado and Aidan Garcia with a nice
SPEAKER_06: one at 4.15 pounds. Our adult set day also had a great day and our top 10 winners were Geronimo
SPEAKER_06: Avalar, Nazar Kortuk, Ilya Kurnov, Joshua Yang, Igor Yershov, Ken Murakama, Trey Viskar,
SPEAKER_06: Richard Bolins, Karina Martinez, which I was hoping for the first time in SMUD history,
SPEAKER_06: we could have awarded the top prize to a woman. She came very close with 5.56 pounds. But her winner
Unknown: who has come back many years I've seen Joe is Joe McDermott. He finally won for the first time,
Unknown: 5.74 pounds and he was a great winner with a kayak and he was very happy to win because I've
SPEAKER_06: seen him year in and year out. Day two was the Kansas day. It was very rough when we had one
SPEAKER_06: little girl who made it out for the kids division, Violet, who was there the day before with her
SPEAKER_06: sister and I got to see them both, Violet Machado. She's eight years old and she won with 3.36 pounds.
SPEAKER_06: Junior division, Colt Flutterick, Alita Peters, Justin Lee, Grace Machado, Trey Gallagher,
SPEAKER_06: Pariah Logan, Pavel Pavis, Aidan Zong, Eisen Baras, and Yousif came back the second day. He
SPEAKER_06: pledged to come back and he did end up winning. Yousif Mohammed was 15 when a kayak at 5.42 pounds,
SPEAKER_06: which would have competed quite well with the adult division. So our top 10 finishers were
SPEAKER_06: Freddie Rosano, Ken Murakama, Reggie Galanto, Fong Vong, Joe McDermott, Ryan Rosano, Patrick Gustafson,
Unknown: Ben Riley, and it was great to see it was a father and son, Mike Lane and Brendan Riley,
SPEAKER_06: who were 5.84 pounds and a 5.89 pounds who won a kayak. So it's great. I have actually seen
SPEAKER_06: these kids really grow up over the years and now are competing in the adult divisions. It's one of
SPEAKER_06: the greatest things we do. We stock 9,000 pounds over the season. Do come fish because what I hear
SPEAKER_06: from the anglers is that the best time is after the trout derby and everybody leaves. There are
SPEAKER_06: some big ones that hide. People also don't realize that the trout don't survive. So please do go out.
SPEAKER_06: The weather is supposed to be nicer. About 73 degrees when it starts to die off. So if you
Unknown: want to go get some great fish, I would head out there between now and June when it gets too toasty.
SPEAKER_06: So thank you again, Smud and all the people that put this together every year.
Unknown: Well, let me give some props to my colleague, Nancy Bowie-Thompson. Ordinarily, if there's a
SPEAKER_02: trout derby anywhere within 25 miles, a guy named Fishman is bound to go. I looked at the weather
SPEAKER_02: and wimped out. So good for you. I did make it to a few other events, however. The Shine Awards,
SPEAKER_02: I'm sure some of my other colleagues will talk about that, but we had a little reception for
SPEAKER_02: the Shine Award presentations. And this is just always so inspiring that there's so many great
SPEAKER_02: organizations doing great work in Sacramento and so many different directions and that we're able
SPEAKER_02: to help out in those ways. I got to speak and say a few words at the Meet Smud Community
SPEAKER_02: Resource Project in Citrus Heights. They're doing some great work and we were able to meet some
SPEAKER_02: customers there and help them with energy efficiency and some other things. I went to the
SPEAKER_02: Coalition for Clean Air, the Toast to Clearing the Air in 2026 event. That's always fun. The United
SPEAKER_02: Way, United in Purpose Gala. And I went to a multi-chamber mixer for the Greater Arden
SPEAKER_02: East Sacramento and Carmichael Chambers of Commerce. That was a fun event and it's also great
SPEAKER_02: that Smud is supporting each of those chambers. Finally, a couple that we keep demanding that
SPEAKER_02: Paul Lau brings home at least one award every week. This wasn't an award, but he was on a panel
SPEAKER_02: for the Sacramento Business Journal, their Inclusivity in Business Forum, and represented us
SPEAKER_02: quite well. And good to hear that there's some businesses that are not backing away from that
SPEAKER_02: imperative. DEIB and Smud is leading the way on that. And then also I attended the Sacramento
SPEAKER_02: Hispanic Chamber of Commerce. 54th Annual Salud Business Awards got to hear El Presidente Tamayo
SPEAKER_02: speak Spanish and he did quite well. And Paul also racked in another recognition at that event. So
SPEAKER_02: that's all I got. All right. Who's next? Director Herbert.
SPEAKER_19: I'm really excited to report on a few events that I went to this month. I'm not going to go over
SPEAKER_01: everything, but just a few. One is I went to the State of the City address for Elk Grove and Bobby
SPEAKER_01: Sing-Allen, their mayor, did a masterful speech about how Elk Grove is growing very purposefully
SPEAKER_01: and the success that they're having, not only with businesses, but building housing and parks and
SPEAKER_01: recreation. I tell you, Elk Grove is really on the move and Bobby Sing-Allen is one of the reasons why.
SPEAKER_01: And speaking of Elk Grove, there is a great group that has just started up there called
SPEAKER_01: Rise Women in Business. And I went to their event and they had a speaker talk a little bit about
SPEAKER_01: finances and what business owners need to know to put their financial plan together.
SPEAKER_01: Right now, this is a group for entrepreneurial women who are starting their own business.
SPEAKER_01: And I just want to give a shout out to their leadership because they're doing a magnificent
SPEAKER_01: job. Their president is Marielle Black. Social media person is Samantha Gaines. Their events
SPEAKER_01: coordinator is B. Waraghi and Lori Parris is the membership coordinator. And again, if you live in
SPEAKER_01: Elk Grove and you're a woman who's struggling with your business, they'll be able to give you
SPEAKER_01: information that will help you. Then I also had the great joy of going to speak to the
SPEAKER_01: Spring Retiree Luncheon. And it was actually to tell them about
SPEAKER_01: Soroptimus. And I couldn't believe all the people that I saw there that I knew.
SPEAKER_01: You know, the last time I went to a retiree luncheon, everyone was like 20 years older than me.
SPEAKER_01: I was looking at that crowd and like everybody kind of looked like my age. And so we had a lot
SPEAKER_01: of fun reminiscing and talking about SMUD. And I shared with them just an update on what's going on.
SPEAKER_01: And then Daryl and Tina Roberts, who run the Roberts Family Development Center,
SPEAKER_01: just had their 19th annual benefit dinner. And I love these two people. They are changing the lives
SPEAKER_01: of young children in the North Sacramento area. And so I want to give a shout out to them that
SPEAKER_01: you guys are doing great work. And then last but not least, we had a meeting of our ad hoc committee
SPEAKER_01: that's looking at Strategic Directive number seven on environmental issues. And that went well.
Unknown: And so that's all I'm going to mention this month.
Unknown: All right. I believe Director Kirk, you're next.
Unknown: Yes, thank you. Along with I think the entire board, we attended the SHINE awards, which is when
Unknown: SMUD helps various nonprofit organizations to do a better job in our community in the coming year
SPEAKER_14: with small awards and grants. It's definitely a case of a little bit hoping it goes a long
SPEAKER_14: ways with these organizations. And according to all of them, it really does. And so with that,
Unknown: I had really a wonderful experience speaking to three business organizations, the River District,
Unknown: the Natomas Chamber of Commerce, and the North Sacramento Chamber of Commerce at their various
SPEAKER_14: annual events. And it's just always very exciting to me to talk with these organizations that are
SPEAKER_14: out there making a difference. They've accumulated or they're building up a track record of improvement.
SPEAKER_14: They're all so excited with what's going on in their community and just, I have to say,
SPEAKER_14: wonderful to be able to spend just a little bit of time with them and to see all the things that
SPEAKER_14: are going on there. And last, I spoke as an individual, not as behalf of SMUD, but
Unknown: to support the City of Sacramento considering forming an enhanced infrastructure financing
SPEAKER_14: district in the North Sacramento community. It's the replacement for redevelopment, which
SPEAKER_14: was killed a few years ago for not very good reasons. This was the replacement for it,
SPEAKER_14: but it's been very slow to start. And so we're trying to get one started in the North area,
SPEAKER_14: in the North Sacramento community. And hopefully we can pull this one off because it could
Unknown: make a big difference for the folks there. And with that, I will pass it on.
Unknown: All right. Director Sandborn. Thank you. So again, I think we all had a very busy
SPEAKER_09: month. I'll only go over some of the highlights. But in March, I was thrilled to be at the SHINE
SPEAKER_09: Awards and meet three SHINE winners for my ward, seven. And that includes the Act on Kindness.
SPEAKER_09: They were given $5,000 from our grant to provide 50 homes in North Highlands that are low income
SPEAKER_09: with electric retrofits and get their energy bills down. And we're thrilled with that.
Unknown: Also to the Sacramento area bicycle advocates, they got over $14,000 and they're going to be
SPEAKER_09: actually sweeping our bike lanes with pedal powered sweepers. So it's actually using human
SPEAKER_09: power to clean the dirt and the grime off the bike pads so that bikes don't flip. And we appreciate
SPEAKER_09: that for safety. And then we gave $1,000 to a young man, the youngest SHINE winner ever. His
SPEAKER_09: name is Ethan. And he started what he calls E-Train Talks. And he does youth climate education by going
SPEAKER_09: into elementary schools. He's a high schooler. And he goes into elementary schools and junior
SPEAKER_09: high schools. And he reads to the kids books that have an environmental education component. And he
SPEAKER_09: leaves all the kids in the class with the book. So for the $1,000, he's going to be giving out the
SPEAKER_09: books and reading. And I connected him with board members from the San Juan school district and
SPEAKER_09: Kiwanis club members that want to hear him speak at their Kiwanis club meeting because Kiwanis
SPEAKER_09: clubs care about kids. I'm a member. And I connected him with Splash and our friend, McKenzie,
SPEAKER_09: who does environmental education and my friend who runs the nature's lab school.
Unknown: So the bottom line is we're going to keep Ethan really busy. And I told him that I really hope
SPEAKER_09: that we can find other kids his age that he can train to go out and do this again. And this is
SPEAKER_09: something that can go on across the region. So maybe it's a train the trainer over time. So I'm
SPEAKER_09: just thrilled to help him. And he's just a wonderful young man. Then we met and had a discussion about
SPEAKER_09: solar panel recycling. And anybody who knows me knows I care a lot about that. And our customers
SPEAKER_09: who've got solar panels, it's when they come off the roof, it's very hard to find a place to take
SPEAKER_09: them and properly recycle them. And a company called com stocks is getting into that recycling
SPEAKER_09: locally. And so we had a meeting with them and appreciate their efforts. I went to the Carmichael
SPEAKER_09: Chamber of Commerce people of the Year reception. And there were many wonderful people who won,
SPEAKER_09: but I will highlight Susan Skinner, who won person of the year. And she's amazing. And she is a
SPEAKER_09: photographer, a singer, she documents the American River Parkway like no one else and talks about the
Unknown: eaglets and, you know, post pictures and keeps everybody connected to that beautiful river that
SPEAKER_09: we have in our backyard. So congratulations to Susan and all the winners. And then I went to
SPEAKER_09: Mira Loma, the high school did a tree planting, and they invited me to join. And of course,
SPEAKER_09: the tree foundation was there and supported them and gave them trees and our new shrubs program.
Unknown: And the kids and the alumni were all there to beautify the campus. And we planted 12 trees
SPEAKER_09: and lots of shrubs. And we weeded a lot. And, and it was wonderful. Everybody was there working
SPEAKER_09: together and beautifying the campus because they just don't have enough staff to do the campus that
SPEAKER_09: size. So thanks to everybody who showed up and really appreciate being invited to help.
Unknown: The second part of the month, I did go attend the North Sacramento Chamber of Commerce's
SPEAKER_09: 20th annual Salute to Democracy Government Relations Breakfast with Director Fishman and
SPEAKER_09: Dr. Kurth. And that's always a joy for me because they really salute all of us that are in the
SPEAKER_09: elected positions that represent North Highlands and that area. Because from different parties,
SPEAKER_09: from different backgrounds and different representations, the bottom line is we all
SPEAKER_09: work together in this community. And that always feels wonderful. And so we got to spend time with,
Unknown: you know, City Council members, Roger Dickinson and Phil Ploeki-Bomb, D.A. Tien Ho was there.
Unknown: But it's always wonderful to be there. And we listened to Supervisor Rodriguez really speak.
SPEAKER_09: She had a great speech about all the things going on at the county. And then we were able to host
SPEAKER_09: here at SMUD my final class for the American Leadership Forum, Class 30. And I just want to
SPEAKER_09: thank our staff for putting on a wonderful spread of food and so forth. But I was able to give the
SPEAKER_09: overview about SMUD. And a lot of people in that class in that in these high level leadership
SPEAKER_09: positions learned a lot about what we do and how we became came to be. So I was thrilled to do that
SPEAKER_09: and have more of the leaders in the area know more about SMUD and get to show us off a little bit.
SPEAKER_09: So thank you again so much. All right. Thank you, everybody.
SPEAKER_19: So I apologize to the English speakers here. But what I just said was that I'm going to start my
SPEAKER_19: comments in Spanish to emphasize the importance of Latino community and the Spanish language in our
SPEAKER_19: community and that it's especially important for me because in my neighborhood I have 47% of the
SPEAKER_19: people in my neighborhood speak Spanish. And so I've had this last month I've had four opportunities
SPEAKER_19: to speak to groups that were largely and probably primarily Spanish speakers, not exclusively Spanish
SPEAKER_19: speaking. But and I just fortunately I've been learning Spanish and I wanted to honor the folks
SPEAKER_19: in those communities and I'll mention the groups that I spoke to. We did a meet SMUD event at
SPEAKER_19: La Familia Counseling Center which is a smack dab in the middle of a highly Spanish speaking area
SPEAKER_19: in the off of Franklin Boulevard just south of Free Ridge, the Hispanic Chamber of Commerce
SPEAKER_19: and at Dia de la Tierra which also occurred at the Maple Center, La Familia's Maple Center.
SPEAKER_19: And then also back east a couple days ago Hispanics in energy and anyway I just felt that that was
SPEAKER_19: kind of a good thing to be able to do to honor those that part of our community. And
SPEAKER_19: it was well received. So but I'll go ahead and talk about a few of the other events that I went to
SPEAKER_19: or that I participated in. Mentioned the Shine Grant recipients which is always a wonderful thing
SPEAKER_19: and as other board members have mentioned it's inspiring to learn about all the great things
SPEAKER_19: that people are doing out in the community and know that SMUD is a part of supporting those
SPEAKER_19: activities. I also went to the transfer of property from the city of Sacramento to La Familia. I didn't
SPEAKER_19: speak at that event but it was it's a great thing because now La Familia owns the property and it
SPEAKER_19: opens up the possibilities of us working more closely with them on improving their energy
SPEAKER_19: situation and receiving some of the incentives that we're able to offer to property owners. It
SPEAKER_19: was in a transition of being phased out of the the did I think I said the city it's actually
SPEAKER_19: the Sacramento City Unified School District was the owner of the property it was a closed school.
SPEAKER_19: La Familia has been operating in it and they're been a little bit limited in the
SPEAKER_19: investments that they could make since they didn't own the property. Now they do have a permanent
SPEAKER_19: home. It'll be a great thing for the community and opens up a lot of possibilities for them. Got to
SPEAKER_19: speak to the a group of young folks who are participating in the boards and commissions
SPEAKER_19: leadership institute that's done by Tammy Dreamer and we're a sponsor of that. So it was really nice
SPEAKER_19: to hear the the types of things that these young ambitious frankly ambitious people are already
SPEAKER_19: engaged in and and give them some tips about how to move forward and and you know making an impact
SPEAKER_19: on the community. Some great discussions they had some great ideas as well. I loved going to the
SPEAKER_19: Trout Derby and I will give a shout out to Vincent Sheldon who are the contractors I guess
SPEAKER_19: who operate that and they're very enthusiastic a really well-run event. They had some great
SPEAKER_19: stories about the windstorm and I also wanted to give a shout out to Alan Ernst who I guess is our
SPEAKER_19: primary person who oversees the operations there. So great event. I could tell that Nancy
SPEAKER_19: her director Bowie Thompson was very much in her element. It's so much fun. There was a three-year-old
SPEAKER_19: girl what came up and with her fish. I mean the fish was not quite as big as her but it was pretty
SPEAKER_19: cool to see see kids and and really adults who are really very happy to be there. It's a great event.
SPEAKER_19: Let's see I already talked about those other events and so I've already taken enough time
SPEAKER_19: but anyway it's been a very busy month for me and but I'm having a good time doing it and
SPEAKER_19: gracias para tu attention. Now it's time for our CEO's report. Take it away Paul. Thank you.
SPEAKER_12: Well thank you President Tuayo as I said in the Hispanic chamber which is gracias presente tuayo
Unknown: and that's the extent of my linguistics skills. So it's really been nice to see some better weather
SPEAKER_12: than we experienced last weekend. Last weekend storm packed a powerful punch that wasn't in the
SPEAKER_12: weather forecast. We had high winds of almost 70 miles per hour. 60 miles per hour and lightning
SPEAKER_12: caused damages and scattered outages across our area. Now SMUT's team immediately mobilized and
SPEAKER_12: worked safely and quickly to get the power back to our customer and the communities. At the height
SPEAKER_12: of the storm we had 30,000 customers out which was 7 30 on Saturday night and by 10 o'clock we had
SPEAKER_12: 85 percent of customers back on. By 7 a.m. the next morning we had 98 percent of the customer back on.
Unknown: What about 450 left by the time Sunday morning came by and then they were all restored by
SPEAKER_12: the you know by Sunday. So very very can't say thank you enough enough from our DSO from
SPEAKER_12: distribution system operators you know who operate a grid to switching the troubleshooters
SPEAKER_12: who's assessing the damage and take customer calls tagging and signing the jobs and I just
SPEAKER_12: really making repairs and really the speed that they they had and all the stuff that we learned
SPEAKER_12: in previous storms to quickly restore our customers. Just want to say thank you to Frankie and your
SPEAKER_12: team I know and then overly all the whole group everybody that was involved in restoring the
SPEAKER_12: customer and we even got some positive media and thank you Director Rose for actually visiting
SPEAKER_12: our crews. I know our crews really enjoy seeing us out there because you know to appreciate really
SPEAKER_12: the hard work they do you know during those difficult times and restoring power. So just
SPEAKER_12: want to say thank you. Now despite the stormy weekend our annual truck derby was another great
SPEAKER_12: success this year. Now each April we hosted this two-day event that attracts hundreds of experience
SPEAKER_12: and novice anglers of all ages to Rancho Seiko for fun fishing and great prizes. Now we're glad
SPEAKER_12: to see nearly 350 anglers showed up from across the region to fish and win great prizes. Now in
SPEAKER_12: preparation we stocked Rancho Seiko Lake with 7,500 pounds of trout including trophy-sized fish.
Unknown: The heaviest fish caught at the derby was weighing in as almost six pounds and thank you to President
SPEAKER_12: Tamayo and especially to board member Nancy Boy Thompson. I think you said it you've been there I
SPEAKER_12: think 13 out of 15 years that you've been here and I know you love actually greeting the winners and
Unknown: mixing with people especially I didn't know the canoe winners that I know you always have. It would
SPEAKER_12: take great pleasure in doing. And this month we have a great time celebrating Earth Month at SMUD
SPEAKER_12: in another community. It's a great time to raise awareness and advocate for change around the issue
SPEAKER_12: that impacts our planet the most. Now teams across SMUD are coordinating dozens of events, activities,
SPEAKER_12: and outreach in the community and for our employees. We're partnering with community organizations to
SPEAKER_12: demonstrate our commitment to greener, cleaner planet, and encouraging our customers and
SPEAKER_12: community to do what they can to help make a difference for a clean energy future. Now on the
SPEAKER_12: 13 Earth Month events we're participating in, a big one is the Environmental Council of Sacramento
SPEAKER_12: ECOS 2026 Sacramento Earth Day. We have a big SMUD presence with a trade show booth providing
SPEAKER_12: information on our 2030 zero carbon plant and handing out native plant seeds. The green energy
SPEAKER_12: team was there and there will be EV ride and drive. Now employees will celebrate on Earth Day on April
SPEAKER_12: 22nd with bike tune-ups from the Sacramento area bicycle advocates. There'll also be information
SPEAKER_12: and tips about the shade trees and shrubs from the Sacramento Tree Foundation, e-bike test rides,
SPEAKER_12: and special guest speakers who share inspiration and information to support biodiversity. Now last
SPEAKER_12: week at the Hispanic Chamber of Commerce I was humbled to be honored to be the president award
SPEAKER_12: award honoree and it was really it was really heartwarming and inspiring to hear all the
SPEAKER_12: awardees the honorees about their personal journey you know in terms of how do you build
SPEAKER_12: and grow the business and sacramental despite some very challenging times. It was a really really
SPEAKER_12: great event and SMUD is proud and committed to the Chamber's mission to foster inclusive economic
SPEAKER_12: development and deeply appreciate this award. And finally to like this video is a comprehensive
SPEAKER_12: showcase of a significant upgrade we continue to make in the El Dorado National Forest as part of
SPEAKER_12: our 50-year federal energy regulatory commission license to operate our hydro facilities in the
SPEAKER_12: Upper American River project. Now over the last decade we've made significant improvements to
SPEAKER_12: campgrounds picnic areas boat lounge areas and hiking and biking trails primary in the Crystal
SPEAKER_12: Basin. Now I'm in partnership with the U.S. Forest Service we're committed to enhancing
SPEAKER_12: the overall experience for the local community our customer and national visitors alike. Now let's
SPEAKER_12: take a look. The Upper American River project is often called the crown jewel of SMUD's
SPEAKER_16: generation portfolio that provides clean reliable affordable energy to our customers. It supports
SPEAKER_05: our commitment to sustainability and reducing carbon emissions and so it pairs really well with
SPEAKER_05: with the renewables that we're installing. It's also located up here in the Crystal Basin which
SPEAKER_16: is a beautiful place that allows for recreational opportunities. There's dozens of campgrounds hiking
SPEAKER_16: trails biking trails picnic areas you name it. I actually spend summers up there going fishing
SPEAKER_05: in Union Valley Reservoir. I love being up there and being out there with nature. We are definitely
SPEAKER_05: environmental stewards not just of the operations and maintenance of those facilities but for the
SPEAKER_05: resources within the lands surrounding those facilities. We are required to meet the FERC
SPEAKER_05: guidelines that are set forth within our license. The license describes how we're going to operate
SPEAKER_16: the projects how we operate our reservoirs how we operate our minimum stream flows or recreation
SPEAKER_16: stream flows. It's probably the most robust program in FERC's hydro docket and the only reason
SPEAKER_16: we can make that look so easy is just because the quality of the staff that I have on this team.
SPEAKER_16: You know they care about this project they care about this area most of us are local residents
SPEAKER_16: up here in El Dorado County. I think this is one of the most beautiful places in the U.S. store.
SPEAKER_07: I'm very proud of the work that we do up here and I definitely show it off. The work we've done
SPEAKER_05: enables recreational opportunities which draws thousands of visitors annually. We've got over
SPEAKER_16: three dozen campgrounds and recreation areas up here in the Crystal Basin. Everybody that's
SPEAKER_04: involved with this really takes pride in the work. It's a highlight of our careers to be part of this
SPEAKER_04: and to have this stamp on the landscape that's going to touch thousands of people's lives.
SPEAKER_04: The partnership between SMUD and the Forest Service has been something that we've been developing for
SPEAKER_07: quite some time. SMUD really understands what the Forest Service is looking at as far as making
SPEAKER_07: these sites accessible but also keeping the natural beauty of the area. The people who do know about
SPEAKER_16: this license first thing they glom onto because it's the most tangible is the upgrades to the
SPEAKER_16: campgrounds and to the bike trails. You know they're really you can touch them you can feel them you
SPEAKER_16: can ride on them. The Union Valley bike trail was something we started the design on actually way
SPEAKER_16: back in 2010 and came up with this way that we were able to build this thing make it accessible
SPEAKER_16: and it looks outstanding as well. There's about 13 miles of bike trail which is paved or boardwalk
SPEAKER_16: and we're almost done with the mountain bike trail which also connects to that. Once that's
SPEAKER_16: done there'll be over 30 miles of biking trail hiking trails. The team is very proud of the work
SPEAKER_05: that they do and you can see it in the results of the the availability of those resources the
SPEAKER_05: cleanliness of those resources. We release whitewater recreation stream flows they're
SPEAKER_16: guaranteed and that's allowed a multi-million dollar whitewater boat industry to form so those
SPEAKER_16: benefits come directly back to El Dorado County. This ecological monitoring program that we maintain
SPEAKER_16: is a great example of environmental leadership. For example the fisheries populations we sample
SPEAKER_16: with scuba diving and other means of collections. We can get what kind of condition the fish are in
SPEAKER_16: health, species diversity, how they're responding to the new minimum stream flows. We monitor a lot
SPEAKER_16: of resources up here to make sure that our projects are not negatively impacting them.
Unknown: I'm extremely proud of our Fresh Pond team. I think it's amazing that SMUD maintains the crystal
SPEAKER_05: basin area to the level that we do. It's a pleasure to be up there and I'm really proud
SPEAKER_05: of the work that we do and the ability for our customers to enjoy that as well.
Unknown: And in our audience tonight we actually have Darryl Perry over there you know who's on the video.
SPEAKER_12: He's really one of the heroes and really the architect a lot of the work that we do up there.
SPEAKER_12: Thank you so much you know all the work that you do there out there you and your team for making
SPEAKER_12: if you've seen the video and you haven't had the chance to visit it yet I strongly encourage you
SPEAKER_12: to go up there. It's a beautiful it's a beautiful stretch of land that actually they worked on and
SPEAKER_12: then the facility they put in is actually outstanding so thank you so much though.
SPEAKER_12: It really applies along thanks to your team and with that that concludes my report. President
SPEAKER_12: Tamayo. Thank you very much that was I really like that video so.
SPEAKER_19: Do we have any summary to note for the record of board direction? I don't have anything though.
Unknown: All right well thank you very much for for attending and oh excuse me I want to adjourn our
SPEAKER_19: meeting in memory of one of our employees who passed away Chris Hoffman.
SPEAKER_19: So we're sad to share that transmission and planning operations director Chris Hoffman
SPEAKER_19: passed away on March 28th from an ongoing illness. Chris is survived by his wife Caitlin,
SPEAKER_19: his two daughters Annalise Morgan and Phoebe Grace, ages 24 and 22 and 17 year old son Kyber Fox.
SPEAKER_19: Chris joined SMUD in 2024 as the director of transmission planning and operations
Unknown: coming to us from the Salt River Project in Arizona. At SMUD he led the teams responsible
SPEAKER_19: for developing short and long term plans for our transmission grid ensuring system reliability and
SPEAKER_19: regulatory compliance and operating the assets that remotely control fuel delivery generation,
SPEAKER_19: extra high voltage transmission and gas pipelines feeding our distribution system.
SPEAKER_19: Transmission planning and operations over TP&O also operates the balancing authority of Northern
SPEAKER_19: California Bank. Chris and his team were featured in our latest on the clock video.
Unknown: Chief operating officer Frankie McDermott said I feel so fortunate to have met and worked with
SPEAKER_19: Chris even in the short time he was with SMUD he built strong relationships across the organization
SPEAKER_19: and demonstrated exceptional leadership through his deep expertise. Chris's influence on our
SPEAKER_19: transmission planning and operations work and the kindness he shared with so many at SMUD will
SPEAKER_19: have a lasting impact. We're grateful for the time we have had with him. Chris will be profoundly
SPEAKER_19: missed and our hearts go out to Chris's wife and children during this difficult time.
Unknown: Chris's work and influence extended well beyond SMUD. Throughout the industry he was regarded as
SPEAKER_19: a trusted expert and valued collaborator whose impact resulted in many meaningful relationships.
SPEAKER_19: So I'd just like to maybe have just a few moments of silence in honor of Chris.
Unknown: Thank you very much. So we've adjourned our regular board meeting and we will now
SPEAKER_19: reconvene as the joint powers authority.
SPEAKER_19: Let me.
Unknown: All right.
SPEAKER_19: So.
Unknown: Should I go ahead more? Okay.
Unknown: All right. We're officially open for the annual meetings as the governing boards of the Northern
SPEAKER_19: California Energy Authority, Northern California Gas Authority number one and Sacramento Municipal
SPEAKER_19: Utility District Financing Authority or SFA. Chief legal officer please read the description
SPEAKER_19: of the three specified joint powers agencies. The Northern California Energy Authority is a
SPEAKER_10: joint powers agency formed by SMUD and the Sacramento Municipal Utility District Financing
SPEAKER_10: Authority and is authorized to purchase gas, electricity and capacity, acquire, finance and
SPEAKER_10: build gas and electrical transmission facilities and acquire, finance and build gas and electrical
SPEAKER_10: generation storage facilities. It is governed by a commission consisting of the seven members of the
SPEAKER_10: SMUD board of directors. The Northern California Gas Authority number one is a joint powers agency
SPEAKER_10: formed by SMUD and the Sacramento Municipal Utility District Financing Authority and is
SPEAKER_10: authorized to acquire, construct and operate natural gas related facilities and engage in the
SPEAKER_10: purchase and sale of natural gas. It is governed by a commission consisting of the seven members of
SPEAKER_10: the SMUD board of directors. The Sacramento Municipal Utility District Financing Authority
SPEAKER_10: is a joint powers agency formed by SMUD and the Modesto Irrigation District. The authority is
SPEAKER_10: governed by a commission consisting of the seven members of the SMUD board of directors. As required
SPEAKER_10: by state law, I am notifying the public that the commissioners are not receiving additional
SPEAKER_10: compensation as a result of this meeting. All right, so Chief Legal Officer will now conduct
SPEAKER_19: a roll call. Commissioner Rose. Here. Commissioner Boogie Thompson. Present. Commissioner Fishman.
Unknown: Commissioner Herber. Here. Commissioner Kurth. Here. Commissioner Sanborn. Here. President Tamayo.
Unknown: Here. You have a quorum. All right. If there are no corrections, changes or additions,
SPEAKER_19: I'll entertain a motion to approve the agenda. So moved. Second. Okay. Moved by Director Sanborn,
SPEAKER_19: seconded by, moved by Commissioner Sanborn and seconded by Commissioner Kurth. Commissioners,
SPEAKER_19: please vote. The agenda is approved. Director Fishman just joined us. Do you want to vote on
SPEAKER_10: the agenda? Do you want to vote? Director, yeah, sorry. The agenda is approved with all
SPEAKER_10: directors voting, all commissioners voting yes. All right. All right. At this time, we give our
SPEAKER_19: customers an opportunity to speak on matters on the agenda. Do we have any cards? I do not have
SPEAKER_10: any cards. I do not see any hands. Okay. Thank you. All right. Our consent calendar, item number two,
SPEAKER_19: is the approval of the minutes of the joint annual meetings of NCEA, NCGA1 and SFA of April 17, 2025.
SPEAKER_19: Item number three is the approval of the minutes of the special meeting of SFA of August 21, 2025.
SPEAKER_19: Item number four is the approval of the minutes of the joint special meetings of NCEA and NCGA1
SPEAKER_19: of December 11, 2025. If there are no corrections, changes or additions, I'll entertain a motion
SPEAKER_19: to approve the consent calendar. So moved. Second. All right. Moved by Director Fishman,
SPEAKER_19: seconded by Director Herber. Directors, please vote.
Unknown: Commissioners. The consent calendar is approved with all commissioners voting yes. All right. We
SPEAKER_19: will now turn to our informational items. Public comment on informational items may be provided
SPEAKER_19: during the public general comment period. Item number 5A is a review of the financial
SPEAKER_19: performance for NCEA for the year ended December 31, 2025. Item number 5B is a review of the
SPEAKER_19: financial performance for NCGA1 for the year ended December 31, 2025. And our presenter is
SPEAKER_19: George Vaughn, the interim director of accounting and controller. Go ahead, George.
SPEAKER_17: Good evening, President Tamayo and Board of Directors. I'm here to present the financial
SPEAKER_17: performance for NCEA and NCGA1 for the year end December 31, 2025. This should be a fairly brief
SPEAKER_17: presentation. NCEA had a change in net position of $3 million versus a budget of $7 million.
Unknown: The variance of $4 million was driven entirely by revenue being below plan by $4 million
Unknown: due to gas prices in actuality being lower than the budgeted gas prices.
SPEAKER_17: NCGA1 had an actual and budget of essentially negative $1 million. The variance was essentially
SPEAKER_17: rounded as zero. And so there were no significant discrepancies against budget for NCGA.
Unknown: And that concludes my presentation, but I'll take any questions.
Unknown: All right. Do we have any questions? Director Sanborn, Commissioner Sanborn.
SPEAKER_19: Just to make sure I understand. So the gas price is purely why we have a $4 million variance in one
Unknown: and we have zero variance on the other, but the gas prices are basically the same?
Unknown: Yes. So to elaborate a little bit further on that, we have a volume of $9.4 million
SPEAKER_17: MMBTUs during the year. And when the budget was put together, it was budgeted at
Unknown: kind of essentially a gross gas price, an undiscounted gas price. In reality, SMUD actually
SPEAKER_17: gets a 46 cent per MMBTU kind of a net lower price. And so the actual price that we ended up
SPEAKER_17: paying was correct. The budgeted amount was overstated by $4.3 million.
Unknown: Okay. I'm not sure I'm totally understanding.
SPEAKER_08: Yeah. So essentially SMUD gets, they pay a discounted rate of 46 cents below
SPEAKER_17: the gross price of the gas. And it was budgeted incorrectly at the higher amount.
SPEAKER_08: So our budget was off, which caused this to be off?
SPEAKER_17: The budget was off and just to make the board aware, because the budgets, this is a 2025 report,
SPEAKER_17: because the 2026 budgets were locked late last year, that same error was carried forward into
SPEAKER_17: this year. So when I'm presenting this next year at this time, I'll have a similar commentary.
SPEAKER_17: So, and we're making sure that we're dotting the I's and that we budget it at the appropriate
SPEAKER_17: rate going into 2027. Yeah. Let's not copy the mistake over again.
SPEAKER_09: The price of gas is varied in last year by 100%. So it is fair to have some
SPEAKER_13: changes in the budget. Any other comments or questions?
Unknown: All right. So that was an informational item. We'll close that out. Thank you very much.
SPEAKER_19: At this time, we allow the public to comment on items not on the agenda,
SPEAKER_19: but within our jurisdiction. Have we received any request to comment?
Unknown: No, we have not. Okay. Thank you. Again, public comment on items not on the agenda may be submitted
SPEAKER_19: to public comment at SMUD.org. Chief legal officer, do we have a summary of commission direction?
SPEAKER_10: No, we do not. All right. So having no further business before us, these joint annual meetings
SPEAKER_19: are adjourned and the special closed board meeting will begin at the conclusion of this
SPEAKER_19: meeting and there'll be a brief pause while the deputy general counsel is seated. There will be
SPEAKER_19: no pause in recording. All right.
Unknown: Okay. Good evening. I will call to order the SMUD board of directors special closed meeting
SPEAKER_19: of April 16, 2026. For members of the public attending in person who wish to speak at this
SPEAKER_19: meeting, please fill out a speaker's request form located on the table outside this room
SPEAKER_19: and hand it to SMUD security. Members of the public attending this meeting virtually who wish
SPEAKER_19: to provide verbal comments during the board meeting may do so by using the raise hand feature
SPEAKER_19: in zoom or pressing star nine will dial into the telephone toll free number at the time. Public
SPEAKER_19: comment is called. Technical support staff will enable the audio for you when your name is
SPEAKER_19: announced during the public comment period. You may also submit written comments by emailing them to
SPEAKER_19: public comment at SMUD.org. Written comments will not be read into the record but will be provided
SPEAKER_19: to the board electronically and placed into the record of the meeting if received within two hours
SPEAKER_19: after the meeting ends. Members may speak to items on the agenda on which the board will take action
SPEAKER_19: and may also address the board on other items and items not on the agenda but within our jurisdiction
SPEAKER_19: during the general comment period. Will our deputy general counsel please conduct a roll call?
SPEAKER_11: Director Rose. Here. Director Wood-Thompson. Present. Director Kurth. Here. Vice President
SPEAKER_11: Fishman. Here. Director Herber. Here. Director Sanborn. Here. President Tamayo. Here. All board members
SPEAKER_11: are present. We have a quorum. I'm not vice president anymore. Did I? I apologize. I thought I said
SPEAKER_11: vice president. But I'm here. Thank you, sir. Yeah, it's vice president Kurth. So
SPEAKER_19: have we received any request to speak on the closed session agenda? We have not. All right. So
SPEAKER_19: the board will now enter into closed session to discuss the following item. Public employment
SPEAKER_19: pursuant to section 54957B1 of the government code, employment of CEO and general manager.
Unknown: So