WEBVTT 00:00:00.000 --> 00:00:06.000 Unknown: fat 00:01:00.000 --> 00:01:02.000 Unknown: Oh 00:01:30.000 --> 00:01:32.000 Unknown: Oh 00:02:00.000 --> 00:02:02.000 Unknown: Oh 00:02:30.000 --> 00:02:32.000 Unknown: Oh 00:03:00.000 --> 00:03:02.000 Unknown: Oh 00:03:30.000 --> 00:03:32.000 Unknown: Oh 00:04:00.000 --> 00:04:02.000 Unknown: You 00:04:30.000 --> 00:04:32.000 Unknown: You 00:05:00.000 --> 00:05:02.000 Unknown: You 00:05:14.959 --> 00:05:16.959 Unknown: All right, maybe five seconds 00:05:22.879 --> 00:05:28.639 Unknown: Alright good evening and welcome to the finance and audit committee and special board meeting of September 15th 00:05:28.639 --> 00:05:33.399 SPEAKER_03: 2026 this meeting is being recorded and can be accessed on smud's website 00:05:33.839 --> 00:05:38.300 SPEAKER_03: Please remember to unmute your microphone when speaking in order that our virtual attendees may hear 00:05:38.599 --> 00:05:42.039 SPEAKER_03: The microphone will display a green indicator light when the mic is on 00:05:42.839 --> 00:05:46.379 Unknown: For members of the public attending in person that wish to speak at this meeting 00:05:46.379 --> 00:05:51.919 SPEAKER_03: Please fill out a speakers request form located on the table outside the room in tenant this month security 00:05:52.560 --> 00:05:54.800 Unknown: members of the public attending this meeting virtually 00:05:54.879 --> 00:06:00.160 SPEAKER_03: That wish provide verbal comments during the committee meeting may do so by using the raised hand feature in zoom 00:06:00.400 --> 00:06:04.520 SPEAKER_03: Or pressing starting on your phone at the time public comment is called 00:06:06.120 --> 00:06:10.680 Unknown: Technical support staff will enable the audio for you when your name is announced during the public comment period 00:06:11.080 --> 00:06:15.519 SPEAKER_03: You may also submit written comments by emailing them to public comment at smud org 00:06:16.120 --> 00:06:18.160 SPEAKER_03: Written comments will not be read into the record 00:06:18.160 --> 00:06:23.960 SPEAKER_03: But will be provided to the board electronically and placed in the record of the meeting if received within two hours after the meeting ends 00:06:24.279 --> 00:06:26.719 SPEAKER_03: When the chief legal officer, please conduct the roll call 00:06:28.000 --> 00:06:29.759 Unknown: director kirth 00:06:29.759 --> 00:06:31.759 Unknown: dr. Bowie Thompson 00:06:31.919 --> 00:06:33.919 Unknown: Chair rose I'm here 00:06:34.000 --> 00:06:40.099 SPEAKER_08: Director kirth and chair rose are present director Bowie Thompson is absent also present are directors fishman herber 00:06:40.479 --> 00:06:42.479 SPEAKER_08: Sam Warren and president tomorrow 00:06:45.079 --> 00:06:49.439 SPEAKER_03: So I don't know one on tonight's agenda is a discuss approving a contract change 00:06:49.920 --> 00:06:54.639 SPEAKER_03: To a contract with Kaiser Permanente approving of the 2027 medical insurance premium rates 00:06:55.040 --> 00:07:00.560 SPEAKER_03: And it's in the contract by one year for the period of January 1st 2027 through December 31st 2027 00:07:00.920 --> 00:07:07.500 SPEAKER_03: Cost estimated at 43 million dollars our director of people service and strategies will lead discussion welcome 00:07:08.639 --> 00:07:10.519 Unknown: Thank you 00:07:10.519 --> 00:07:12.759 Unknown: Good evening directors and chair rose 00:07:13.399 --> 00:07:18.000 Unknown: I'm Uge Cochran, and I am the director of people services and strategies 00:07:18.519 --> 00:07:24.600 Unknown: Before I begin I would like to take a minute to thank the benefits team for all their efforts working with our 00:07:25.439 --> 00:07:31.000 SPEAKER_00: Broker and carriers to negotiate the renewal terms for the 2027 medical contracts 00:07:31.600 --> 00:07:38.360 SPEAKER_00: This evening. I have two separate presentations and board action requests pertaining to smud employee and 00:07:38.959 --> 00:07:42.680 SPEAKER_00: Retiree medical benefits with Kaiser Permanente and United Healthcare 00:07:43.879 --> 00:07:47.519 Unknown: First we will review the contract renewal with Kaiser Permanente 00:07:48.040 --> 00:07:49.959 Unknown: request is to approve the 00:07:49.959 --> 00:07:55.759 SPEAKER_00: 2027 medical insurance rates and extend the Kaiser contract for the 2027 plan year and 00:07:56.000 --> 00:07:59.120 Unknown: We estimate that cost to be about 43 million dollars 00:07:59.920 --> 00:08:06.720 Unknown: Kaiser remains an important part of the portfolio because it provides integrated care strong digital access 00:08:07.399 --> 00:08:11.360 SPEAKER_00: Coordinated services with on-site specialists and pharmacists 00:08:11.879 --> 00:08:16.360 SPEAKER_00: Preventative care programs and presence within the California public sector market 00:08:17.240 --> 00:08:23.639 Unknown: Providing ease and simplicity for our employees and their health needs while remaining the lower cost option 00:08:24.879 --> 00:08:28.680 SPEAKER_00: 2027 will be the third year of the current three-year agreement with Kaiser 00:08:30.000 --> 00:08:32.000 Unknown: next slide, please I 00:08:32.720 --> 00:08:38.080 Unknown: Like to start by providing some high-level background on smud smud's medical benefits 00:08:38.680 --> 00:08:43.480 Unknown: smud currently offers health plans provided by Kaiser United Healthcare and 00:08:43.920 --> 00:08:49.279 Unknown: They are offering plans based on our employee and retiree needs and location 00:08:50.279 --> 00:08:52.279 Unknown: Between both plans we cover 00:08:52.879 --> 00:08:54.639 SPEAKER_00: 9112 employees 00:08:54.639 --> 00:08:56.800 Unknown: retirees and their eligible dependents 00:08:57.360 --> 00:09:04.519 Unknown: If we take a look at the current industry trends total medical premiums are projected to increase by 9% for 00:09:04.920 --> 00:09:08.600 SPEAKER_00: 2027 this is the highest increase in 17 years 00:09:09.600 --> 00:09:13.120 Unknown: What is driving this increase our outpatient facility care? 00:09:13.320 --> 00:09:17.639 SPEAKER_00: Which is the single largest component of health care claims in 2026? 00:09:18.320 --> 00:09:20.320 Unknown: along with pharmaceuticals 00:09:20.560 --> 00:09:22.560 SPEAKER_00: Oncology and behavioral health services 00:09:23.440 --> 00:09:27.960 Unknown: like most employer plans employees share the cost of health care premiums and 00:09:28.440 --> 00:09:32.440 Unknown: in 2026 the average employee cost share is benchmarked at 00:09:33.279 --> 00:09:35.279 SPEAKER_00: 16% for an employee plan and 00:09:35.559 --> 00:09:37.559 SPEAKER_00: 25% for a family plan 00:09:37.559 --> 00:09:42.600 SPEAKER_00: I'm happy to share that smud's average cost of sharing are below industry benchmarks 00:09:42.639 --> 00:09:51.120 SPEAKER_00: Which supports smud's ability to attract and retain talent and talented employees in general our employees share of the health care plan 00:09:51.120 --> 00:09:55.120 SPEAKER_00: costs are between 9 and 16 percent for individual employees and 00:09:56.079 --> 00:10:03.439 SPEAKER_00: 11 to 18 percent for family plans and a high deductible plan provides even lower premiums starting at 6% cost share 00:10:04.440 --> 00:10:06.440 Unknown: next slide, please 00:10:06.600 --> 00:10:11.440 Unknown: I'll now go into the specifics of the 2027 renewal with Kaiser Permanente 00:10:12.240 --> 00:10:16.160 Unknown: 51% of our active employees are enrolled in Kaiser 00:10:17.000 --> 00:10:19.000 Unknown: smud offers both an HMO 00:10:19.400 --> 00:10:23.320 Unknown: High and an HMO low plan starting 2027 00:10:23.560 --> 00:10:28.180 Unknown: Kaiser is changing from a 12 month to a 24 month utilization period rate 00:10:28.379 --> 00:10:30.639 Unknown: This welcome 00:10:30.639 --> 00:10:37.739 SPEAKER_00: This is welcome news for employers as one bad utilization year will not be predictive of renewal costs of the future as 00:10:38.419 --> 00:10:40.259 Unknown: noted on this slide 00:10:40.259 --> 00:10:45.739 SPEAKER_00: Utilization and claims are the main drivers of premium increases in addition to utilization 00:10:45.739 --> 00:10:51.859 SPEAKER_00: There are other trends driving driving cost increases high dollar claims are going up 00:10:52.139 --> 00:10:54.579 Unknown: There are now more serious diagnosis 00:10:55.379 --> 00:10:57.019 SPEAKER_00: especially cancer 00:10:57.100 --> 00:11:01.779 SPEAKER_00: circulatory and musculoskeletal conditions for younger and older working adults 00:11:02.620 --> 00:11:07.620 Unknown: Medical inflation is outpacing general inflation due to higher supply and labor costs 00:11:07.659 --> 00:11:13.899 SPEAKER_00: For example a shortage of primary care doctors is expected to occur in the next 10 years 00:11:14.379 --> 00:11:20.100 SPEAKER_00: The cost for specialty drugs and treatments for cancer and weight loss are continuing to rise 00:11:20.460 --> 00:11:26.139 SPEAKER_00: even though Kaiser put in place limitations on GLP1 use for medical conditions only and 00:11:26.419 --> 00:11:30.899 Unknown: Health systems are raising prices because hospital consolidation 00:11:31.620 --> 00:11:36.779 Unknown: Have substantially reduced competition allowing them to negotiate higher prices 00:11:38.620 --> 00:11:40.620 Unknown: Next slide, please 00:11:41.100 --> 00:11:45.059 Unknown: Taking a deeper dive into Kaiser's utilization summary 00:11:45.740 --> 00:11:50.740 Unknown: Which Kaiser measures in three categories based on the metric price per member per month? 00:11:51.379 --> 00:11:53.539 Unknown: Which is known as PM PM? 00:11:54.539 --> 00:12:01.779 Unknown: The PM PM calculation represents both an increase in utilization and an increase in cost per service 00:12:02.620 --> 00:12:04.139 Unknown: overall paid claims 00:12:04.139 --> 00:12:09.179 SPEAKER_00: Per member per month has increased 4.7 from prior 24 months 00:12:09.779 --> 00:12:15.500 Unknown: For the 12 month utilization period from April 2025 to March 2026 00:12:16.219 --> 00:12:18.779 SPEAKER_00: Impatient claims have increased 3.7 percent 00:12:19.500 --> 00:12:25.779 SPEAKER_00: Outpatient claims have increased six and a half percent and pharmacy claims have increased 3.4 percent in 00:12:26.819 --> 00:12:27.740 SPEAKER_00: addition 00:12:27.740 --> 00:12:35.379 Unknown: High dollar claim reporting also showed six claimants over five hundred thousand dollars totaling 3.9 million dollars in 00:12:36.139 --> 00:12:42.139 SPEAKER_00: Costs however compared to prior year large claims are trending down with a decrease of 8% 00:12:43.299 --> 00:12:45.299 Unknown: next slide, please 00:12:46.299 --> 00:12:48.539 Unknown: Here is the summary for the 00:12:48.939 --> 00:12:56.339 SPEAKER_00: 2027 cost increases to our plans our active HMO plans are going up by 11.2 percent 00:12:57.059 --> 00:13:00.740 Unknown: Early retiree HMOs are also going up by 11.2 percent 00:13:01.379 --> 00:13:06.419 SPEAKER_00: the Medicare Advantage plan actually had a rate pass this year, so it's staying flat and 00:13:07.179 --> 00:13:14.500 Unknown: The total cost for Kaiser is actually at 10.3 percent or a four million dollar increase compared to last year 00:13:15.139 --> 00:13:18.820 Unknown: Kaiser has also provided us with a $20,000 wellness fund 00:13:19.700 --> 00:13:21.700 Unknown: Next slide, please 00:13:22.779 --> 00:13:24.940 Unknown: This slide breaks down the monthly 00:13:25.820 --> 00:13:28.379 SPEAKER_00: medical premium rates for active and retirees 00:13:29.100 --> 00:13:31.940 SPEAKER_00: for employee only employee plus and 00:13:32.259 --> 00:13:33.700 SPEAKER_00: employee and family 00:13:33.700 --> 00:13:41.940 SPEAKER_00: With these options the HMO low plan has the lowest premiums coming in at one thousand thirty nine dollars for employee only and 00:13:42.940 --> 00:13:45.820 SPEAKER_00: 3117 dollars for employee plus family 00:13:46.380 --> 00:13:53.740 Unknown: now smut pays between 82 and a hundred percent of the premium depending on several factors such as 00:13:54.020 --> 00:13:56.380 SPEAKER_00: employee status dependent coverage and 00:13:56.940 --> 00:13:58.940 SPEAKER_00: Represented group next slide, please 00:14:01.620 --> 00:14:09.020 Unknown: Finally I'm formally requesting the board's approval for extending and approving the contract with Kaiser Permanente for 2027 00:14:09.179 --> 00:14:12.740 SPEAKER_00: The total estimate cost is 43 million dollars. I 00:14:13.460 --> 00:14:19.740 Unknown: Can now open it up to questions or we can go to the United Health Care plan before we take questions. What would you prefer? 00:14:22.819 --> 00:14:26.220 Unknown: And do the next one okay, there's no objections. Thank you 00:14:30.860 --> 00:14:34.779 Unknown: The second medical carriers smut contracts with is United Health Care 00:14:35.059 --> 00:14:42.939 SPEAKER_00: We are seeking approval for a contract change for the 2027 medical premium rates with a cost estimate of 40 48 million dollars 00:14:43.699 --> 00:14:51.500 SPEAKER_00: United Health Care provides an alternative delivery model and greater choice for our employees including high deductible plan with an HSA option 00:14:51.899 --> 00:14:53.899 Unknown: next slide, please 00:14:54.500 --> 00:15:01.819 Unknown: Thirty four percent of our active employees are enrolled in United Health Care our plan provides several choices to employees and retirees 00:15:02.379 --> 00:15:04.059 SPEAKER_00: including HMO 00:15:04.099 --> 00:15:09.939 Unknown: Alliance which is a Sutter only network and a high deductible plan like Kaiser 00:15:10.539 --> 00:15:18.259 SPEAKER_00: Utilization is the primary driver of increasing costs. The HMO plan is currently operating at a hundred percent loss ratio 00:15:19.139 --> 00:15:22.579 SPEAKER_00: indicating that claims are exceeding premium revenue and 00:15:23.019 --> 00:15:30.179 Unknown: Other factors in health care are generally impacting costs as well and these include significant increase in GLP one drug use 00:15:30.779 --> 00:15:33.500 Unknown: higher health care provider costs including 00:15:34.299 --> 00:15:37.299 SPEAKER_00: increased spend for doctors nurses and specialists 00:15:38.019 --> 00:15:42.979 SPEAKER_00: increased costs on pharmaceuticals in both utilization and higher drug prices and 00:15:44.219 --> 00:15:48.659 SPEAKER_00: Consolidation in the health care system leading to a lack of competition resulting in price increases 00:15:49.659 --> 00:15:51.659 Unknown: next slide, please 00:15:53.659 --> 00:15:57.259 Unknown: Diving a little deeper the plan increases are driven by 00:15:57.659 --> 00:16:05.500 SPEAKER_00: Concentration of high-cost members combined with sustained utilization levels in effect a small number of employees and dependents have 00:16:05.500 --> 00:16:12.100 SPEAKER_00: Have had very large medical claims during the utilization period these involve things like cancer treatment 00:16:13.059 --> 00:16:15.059 SPEAKER_00: specialty drugs major surgeries 00:16:15.860 --> 00:16:18.220 SPEAKER_00: transplants or complex chronic conditions 00:16:19.019 --> 00:16:26.580 Unknown: Claims over four hundred thousand dollars have exceeded three point two million dollars in cost and the top four medical claimants exceeded 00:16:26.780 --> 00:16:28.780 SPEAKER_00: 1.9 million dollars in total and 00:16:29.300 --> 00:16:32.780 SPEAKER_00: Beyond those few high-cost cases the overall population 00:16:33.860 --> 00:16:41.060 Unknown: Continue to use health care at relatively high levels and this trend is most likely going to continue into the next plan year 00:16:41.860 --> 00:16:43.860 SPEAKER_00: next slide, please 00:16:44.820 --> 00:16:48.800 Unknown: This is a summary of the 2027 United health care plan increases 00:16:49.100 --> 00:16:54.580 SPEAKER_00: The HMO plan for active and retirees are increasing by twenty point one percent 00:16:55.379 --> 00:16:59.420 Unknown: The HMO Alliance plan is increasing by eight point three percent 00:16:59.740 --> 00:17:07.220 Unknown: The PPO and high deductible plan is fourteen point one percent and a Medicare Advantage plan is going up by eleven point six percent 00:17:08.180 --> 00:17:14.660 Unknown: All in all is a sixteen point two five percent increase or six point seven million dollar increase from last year 00:17:15.500 --> 00:17:20.140 SPEAKER_00: United health care has also included a fifty thousand dollar wellness fund in the renewal I 00:17:20.140 --> 00:17:27.780 Unknown: Also like to note that smud is addressing rising health care costs with ongoing employee education 00:17:29.180 --> 00:17:31.180 Unknown: shifting employees into the right plans for 00:17:32.060 --> 00:17:36.380 Unknown: The for their needs and designing an improved health assessment program 00:17:37.620 --> 00:17:43.100 Unknown: Our intention is to make the health assessment program more personalized and easier to engage with 00:17:45.460 --> 00:17:47.460 Unknown: Next slide, please 00:17:48.460 --> 00:17:56.299 Unknown: This is a summary of the monthly medical premium rates as you can see the lowest cost plan as indicated on the table is 00:17:56.460 --> 00:18:04.579 Unknown: The Alliance HMO low plan with premium rates ranging from one thousand one hundred thirty dollars to three thousand four hundred fourteen dollars for a family 00:18:05.660 --> 00:18:08.340 Unknown: Again, there is a cost share between smud and the employee 00:18:09.180 --> 00:18:13.460 SPEAKER_00: Depending on several factors including plan dependent coverage and represented group 00:18:13.660 --> 00:18:16.860 Unknown: These cost shares can range from anywhere from six to eighteen percent 00:18:17.700 --> 00:18:19.700 Unknown: Next slide, please 00:18:20.220 --> 00:18:27.860 Unknown: Listed here are mentally medical premium rates for retirees plan retiree plans and there is a different cost sharing model for retirees 00:18:28.140 --> 00:18:32.779 SPEAKER_00: Depending on plan and additional factors like years of service or date of employment 00:18:34.500 --> 00:18:36.500 Unknown: Next slide, please 00:18:36.740 --> 00:18:43.059 Unknown: Finally we are seeking the board's approval for extending and approving the contract with United health care for 2027 00:18:43.180 --> 00:18:46.460 SPEAKER_00: The total estimated cost is 48 million dollars 00:18:46.460 --> 00:18:49.660 SPEAKER_00: And I can now open it up for questions 00:18:53.220 --> 00:18:55.220 SPEAKER_03: Questions director fishman 00:18:57.660 --> 00:18:59.660 Unknown: Excuse me 00:19:02.819 --> 00:19:05.740 Unknown: The first presentation about Kaiser indicated we have about 00:19:06.299 --> 00:19:12.019 SPEAKER_10: 9100 people that we're providing health care for between employees retirement retirees and families 00:19:12.099 --> 00:19:14.099 SPEAKER_10: How 00:19:14.339 --> 00:19:20.980 Unknown: Many of those are represented in these two contracts and can you rough breakdown and you know how many are in Kaiser and how many are in? 00:19:21.420 --> 00:19:23.420 SPEAKER_10: United health care 00:19:23.579 --> 00:19:26.500 SPEAKER_00: Total for Kaiser is around 3,800 00:19:29.420 --> 00:19:35.700 SPEAKER_00: 3,800 for active and retiree employees and then I'll have to get a breakdown on the dependence for you 00:19:37.500 --> 00:19:39.819 Unknown: But it's about a 50% 50% 00:19:42.180 --> 00:19:44.180 SPEAKER_00: a 51% 00:19:44.299 --> 00:19:46.299 SPEAKER_00: ratio for Kaiser versus 00:19:46.980 --> 00:19:51.980 SPEAKER_00: United health care and these are the only two that we offer these are the only two plans that we offer 00:19:51.980 --> 00:19:53.980 SPEAKER_00: Okay. Yes 00:19:56.579 --> 00:20:01.099 Unknown: Director yes, thank you for this information. I mean I know I'm 00:20:02.259 --> 00:20:08.539 Unknown: I'm not expressing anything that's new, but I just can't believe how everything just keeps going up 00:20:08.539 --> 00:20:11.379 SPEAKER_01: Yes, so much and so quickly 00:20:12.259 --> 00:20:15.220 Unknown: I did want to ask though a little bit about 00:20:16.500 --> 00:20:21.220 Unknown: You know, I'm with United health care and I get 00:20:21.659 --> 00:20:23.659 SPEAKER_01: barraged about 00:20:23.659 --> 00:20:27.220 SPEAKER_01: You know, we want to come to your home and talk to you 00:20:27.220 --> 00:20:32.139 SPEAKER_01: We you know want to do this for you. We want to do that for you. I mean 00:20:33.140 --> 00:20:41.100 Unknown: I'm wondering if I take advantage of those things if I'm driving up the cost for health care for 00:20:41.660 --> 00:20:49.460 Unknown: My fellow employees not necessarily. I think that there's a in health care. There's a whole effort of 00:20:50.540 --> 00:20:52.540 SPEAKER_00: helping preventative 00:20:53.180 --> 00:20:56.340 SPEAKER_00: Approach having a really preventative approach to health care 00:20:56.819 --> 00:21:02.579 SPEAKER_00: Which is good for both us and the industry because they are going to try to keep the cost low 00:21:02.779 --> 00:21:08.559 SPEAKER_00: So if there is a diagnosis, they're able to catch it sooner. So your treatment costs would be lower for example 00:21:08.579 --> 00:21:14.179 SPEAKER_00: So I think in in an effort it really is to help drive the cost lower because I know that 00:21:14.339 --> 00:21:17.000 SPEAKER_00: Industry is also feeling the increases and the pain 00:21:17.859 --> 00:21:19.859 SPEAKER_00: especially around labor costs and inflation 00:21:20.379 --> 00:21:24.339 Unknown: Mm-hmm and drug costs. Okay. Thank you for that 00:21:24.579 --> 00:21:30.139 SPEAKER_01: The other question I have is I've actually been going to the gym and 00:21:30.819 --> 00:21:38.980 SPEAKER_01: You know, we we used to staff that place, you know very nicely with with trainers and a 00:21:39.500 --> 00:21:44.019 Unknown: Whole bunch of other things. When do you see that coming back? 00:21:45.459 --> 00:21:47.459 SPEAKER_00: Good question 00:21:48.059 --> 00:21:51.299 Unknown: I think it might really depend on demand and 00:21:51.899 --> 00:21:58.339 SPEAKER_00: You know, it's it really is, you know, some of the things that we need to look at for 00:21:59.579 --> 00:22:08.139 SPEAKER_00: Moving forward for health care really is the preventative that includes having healthy habits including going to the gym eating healthy and 00:22:09.099 --> 00:22:12.859 SPEAKER_00: I can't really answer that unless Laura wants to bring it back 00:22:12.859 --> 00:22:17.539 SPEAKER_00: But I think that it's going to depend on demand and the cost of that as well 00:22:18.539 --> 00:22:22.059 SPEAKER_00: You know one of the things that we want to do in the next few years 00:22:22.059 --> 00:22:28.500 SPEAKER_00: I'll share a little bit of the three-point plan I have in place for helping us maintain costs or at least try to 00:22:29.059 --> 00:22:31.059 SPEAKER_00: lower the 00:22:31.500 --> 00:22:34.859 SPEAKER_00: Maybe some more specific utilization in our health care plans 00:22:35.099 --> 00:22:39.200 SPEAKER_00: The first one is we actually moved brokers from AON to Alliant 00:22:39.379 --> 00:22:46.539 SPEAKER_00: you might be familiar with Alliant. Alliant actually is part of the Prism Network the JPA Prism Network and 00:22:47.259 --> 00:22:51.819 SPEAKER_00: They are going to really help us because they service over a thousand public entities 00:22:52.700 --> 00:22:58.659 SPEAKER_00: They're going to be able to provide an assessment on our plans and ensure that first of all that we have the right plans 00:22:58.659 --> 00:23:00.659 SPEAKER_00: in place for our population and 00:23:01.339 --> 00:23:02.859 SPEAKER_00: that 00:23:02.859 --> 00:23:06.779 SPEAKER_00: We will look into some cost preventative measures, for example 00:23:08.059 --> 00:23:09.819 SPEAKER_00: looking at 00:23:09.819 --> 00:23:14.659 SPEAKER_00: Different providers maybe different plans even to bring into the mix of what we have 00:23:15.060 --> 00:23:22.300 Unknown: But I think we need a full assessment of our plans right now because our population is changing and I think that 00:23:23.500 --> 00:23:27.740 Unknown: You know we can look at the plans, but we can also look at the 00:23:28.980 --> 00:23:31.580 Unknown: How can we intentionally do preventative 00:23:32.220 --> 00:23:35.860 Unknown: Programs in place so one of the questions I had received from 00:23:36.660 --> 00:23:41.440 SPEAKER_00: Director Bowie Thompson was around our HAP program and she was very 00:23:42.039 --> 00:23:48.840 SPEAKER_00: Kind in providing feedback that the function of that program wasn't really suitable for what we were trying to do 00:23:49.080 --> 00:23:53.720 SPEAKER_00: so we're taking a look at that so that we can really engage our employees on and 00:23:54.320 --> 00:23:58.279 SPEAKER_00: Incentivize them to do the right things when it comes to health care including going to the gym 00:23:58.799 --> 00:24:07.360 SPEAKER_00: Including going on walks including eating healthy. So that's the second thing that we're trying to do and I think that 00:24:08.640 --> 00:24:10.640 SPEAKER_00: We need a three-year 00:24:10.840 --> 00:24:12.840 SPEAKER_00: benefits plan strategy 00:24:13.920 --> 00:24:18.120 SPEAKER_00: Costs are just going to continue to increase and I think that 00:24:19.560 --> 00:24:24.640 Unknown: You know as smart we're known for providing great benefits to our employees 00:24:24.640 --> 00:24:29.720 SPEAKER_00: We want to keep that in place, but we also want to look at the economics of what we do provide 00:24:30.320 --> 00:24:35.320 Unknown: We have a majority of retirees. Do we have the right plans for the retirees for example? 00:24:35.480 --> 00:24:41.079 SPEAKER_00: So where can we look and make changes that are you know going to provide some savings? 00:24:41.200 --> 00:24:47.619 SPEAKER_00: But at the same time either provide better benefits or consistently maintain what we have at a cost that we can afford 00:24:48.599 --> 00:24:53.679 Unknown: Well, thank you for that. I I do want to go on record and say that 00:24:54.639 --> 00:24:59.039 Unknown: you know healthy employees are the best ways to 00:25:01.000 --> 00:25:03.679 SPEAKER_01: run a strong company and 00:25:04.680 --> 00:25:10.720 SPEAKER_01: We really had some fabulous things going on and 00:25:11.560 --> 00:25:17.640 SPEAKER_01: I don't know what the costs were but I don't think we can skip on our 00:25:18.360 --> 00:25:23.500 SPEAKER_01: Employees, you know, they really are the you know the blood of this 00:25:24.400 --> 00:25:33.340 SPEAKER_01: operation so just want to put a little word out there that as you go through different things that really like to see a more 00:25:33.880 --> 00:25:35.200 SPEAKER_01: robust 00:25:35.200 --> 00:25:39.400 SPEAKER_01: Health program for our employees. Thank you. Thank you 00:25:42.480 --> 00:25:48.560 SPEAKER_03: Director Sanborn, do you have any comment to see your head is public first? Oh, thanks. Hi 00:25:50.440 --> 00:25:53.880 Unknown: Yes, I I'm it's really 00:25:54.840 --> 00:25:58.840 SPEAKER_05: shocking the price of health care and I do think I 00:25:59.399 --> 00:26:06.399 Unknown: Mean the more research is done a lot of this is related to diet and lifestyle and what we're being exposed to and I guess 00:26:06.399 --> 00:26:13.439 SPEAKER_05: I would just encourage us to think creatively about how we can help educate our employees about you know, how to protect themselves 00:26:14.279 --> 00:26:17.939 SPEAKER_05: What's on the market? What's healthy? What isn't whether it's food or 00:26:18.720 --> 00:26:25.039 SPEAKER_05: Cosmetics or anything? There's a lot of stuff out there that we're exposed to that are causing a lot of problems 00:26:25.039 --> 00:26:27.519 SPEAKER_05: And I see that very scary increase in cancer 00:26:28.480 --> 00:26:30.480 SPEAKER_05: Which we all know is 00:26:31.839 --> 00:26:37.680 SPEAKER_05: People especially colon cancer right now, which may be related to microplastics it turns out so 00:26:38.400 --> 00:26:45.079 SPEAKER_05: I think I anything we can do to be preventative and support our employees and making good choices. I think would be great 00:26:45.599 --> 00:26:47.759 Unknown: So thanks for that and that's perfect 00:26:48.160 --> 00:26:54.079 Unknown: Yeah, thank you. Um, so I have a couple I have a couple questions and queries. I 00:26:55.079 --> 00:27:01.960 Unknown: I went through some of the CalPERS data that I'm that I'm a member of through my day job and one of the things that 00:27:02.439 --> 00:27:10.279 SPEAKER_03: caught my eye is CalPERS dropped United Healthcare because they didn't feel like their costs were justified the cost increases were justified and you 00:27:10.279 --> 00:27:15.359 SPEAKER_03: See there the the basic member cost is a 20% increase which is which is a lot lot 00:27:16.559 --> 00:27:19.480 Unknown: And so that sort of leads me to some questions. When are we comfortable? 00:27:20.120 --> 00:27:25.759 Unknown: With using them this year and then the secondary question the larger policy question is what I think I think I mentioned this 00:27:25.759 --> 00:27:29.640 SPEAKER_03: I mentioned this but I didn't capture it all. What is our plan to sort of bid out? 00:27:30.440 --> 00:27:35.819 SPEAKER_03: Rebidding these and why do and why do we do? Why do we typically have two providers and not like more or less? 00:27:36.240 --> 00:27:38.240 Unknown: Yeah, I know that's a great question 00:27:38.680 --> 00:27:43.759 SPEAKER_00: Yes, CalPERS has dropped United Healthcare and has gone to blow cross blue shield instead 00:27:44.599 --> 00:27:48.319 SPEAKER_00: And that is a provider that we will be looking at next year 00:27:48.319 --> 00:27:51.680 SPEAKER_00: We'll go to market with our broker and those are the discussions 00:27:51.680 --> 00:27:55.700 SPEAKER_00: We'll have with the lion in terms of this strategic plan because at the end of the day 00:27:55.700 --> 00:27:58.960 SPEAKER_00: I we still want to provide great plans for our employees 00:27:59.200 --> 00:28:06.160 SPEAKER_00: But cost does matter and it's not going to be sustainable if we don't actually take action and look at some other options 00:28:07.120 --> 00:28:11.040 SPEAKER_00: Someone else also mentioned earlier in my conversation today that 00:28:11.640 --> 00:28:17.240 Unknown: You know, we've been great at providing these benefits at a very low cost cost to our employees 00:28:17.360 --> 00:28:23.440 SPEAKER_00: But it's a little bit like car insurance, you know, your deductible determines your premiums, right? 00:28:23.440 --> 00:28:29.880 SPEAKER_00: If you're at $250 versus $1,000 in in deductible, it's a big difference in what you pay for that insurance 00:28:30.000 --> 00:28:34.480 SPEAKER_00: So we need to have a little bit of a different way of thinking about how we're approaching this 00:28:35.000 --> 00:28:36.480 SPEAKER_00: meanwhile 00:28:36.480 --> 00:28:42.519 Unknown: To director Herbert's comment as well on preventative. I think that's going to be a huge 00:28:43.440 --> 00:28:46.240 SPEAKER_00: Direction that a lot of employers will be going towards 00:28:46.319 --> 00:28:52.360 SPEAKER_00: so I rather take our wellness funds and invest them in things that will make a difference in those areas for us and 00:28:53.200 --> 00:29:01.319 SPEAKER_00: Educate educate educate our employees. We also need to look at our employees and how they make choices when it comes to their insurance plans 00:29:02.319 --> 00:29:06.079 SPEAKER_00: Some employees may be very healthy their families may be very healthy 00:29:06.159 --> 00:29:09.960 SPEAKER_00: They don't need to be in a PPO or a very expensive plan 00:29:10.319 --> 00:29:16.899 Unknown: Really, we need to educate the employees on determining what is the best plan for them because that really helps us at the end of the day 00:29:16.899 --> 00:29:18.200 SPEAKER_00: as well 00:29:18.200 --> 00:29:20.720 SPEAKER_00: So there's lots of options to consider there 00:29:21.759 --> 00:29:28.000 Unknown: Okay, and I know when I was going through the Cal bars rights, our Kaiser plan is right in line 00:29:28.359 --> 00:29:30.359 SPEAKER_03: their 00:29:30.839 --> 00:29:34.880 SPEAKER_03: Numbers right in line with one we have and and even our United Health Fund that 00:29:35.319 --> 00:29:41.720 Unknown: That's within my thing like ten or twenty dollars of the blue shield anthem coverage that are that are probably pretty comparable as well 00:29:41.720 --> 00:29:46.480 SPEAKER_03: So nothing about that way. Um, the only thing I would just say, you know, we see those 00:29:47.279 --> 00:29:48.920 SPEAKER_03: top line numbers and 00:29:48.920 --> 00:29:53.279 SPEAKER_03: For the handful of people with really high cost but ultimately that's in my mind 00:29:53.279 --> 00:29:59.599 SPEAKER_03: I'm a big chunk of what the insurance is for its catastrophic coverage for people so they don't go bankrupt when somebody gets cancer or 00:30:00.639 --> 00:30:02.720 SPEAKER_03: Needs their heart worked on or you know 00:30:02.720 --> 00:30:07.960 SPEAKER_03: Some of these things are needs to transplant all which has happened to people in my life that I know so I certainly would never 00:30:07.960 --> 00:30:09.519 SPEAKER_03: blame anybody 00:30:09.519 --> 00:30:11.680 SPEAKER_03: And I'll be curious in the long run. We've heard 00:30:12.319 --> 00:30:16.259 Unknown: Some sort of I would say concerns about covering the GLP one 00:30:17.119 --> 00:30:22.079 SPEAKER_03: Medications but but it is also having watched people lose tremendous amounts of weight 00:30:22.319 --> 00:30:28.639 SPEAKER_03: I do think in the long run you're gonna have better medical outcomes and you're gonna avoid diabetes you're gonna avoid 00:30:29.839 --> 00:30:34.439 SPEAKER_03: Heart attacks and it's gonna end up saving the plan a lot of money in the long run potentially 00:30:34.439 --> 00:30:41.359 SPEAKER_03: Yeah, no, absolutely and I think Kaiser has a limit on GLP usage, but United does not which is also driving these costs 00:30:41.359 --> 00:30:47.000 SPEAKER_00: I do want to go back for a second to your comment about the high deductible plan. I'm actually on the high deductible plan 00:30:47.640 --> 00:30:49.720 SPEAKER_00: Just because it fits our family needs better 00:30:49.880 --> 00:30:57.799 SPEAKER_00: But the high deductible plan also comes with an HSA which is a triple tax advantage that maybe employees don't know about and 00:30:58.039 --> 00:31:05.079 Unknown: younger employees tend to in companies I've worked with in the past they tend to be more on the high deductible plan because they're younger and 00:31:05.079 --> 00:31:06.640 SPEAKER_00: healthier and 00:31:06.640 --> 00:31:10.240 SPEAKER_00: But they take advantage of the HSA payments or you know 00:31:10.720 --> 00:31:16.480 Unknown: Funds that we provide them and what they put into their accounts and they can take that with them wherever they go 00:31:16.559 --> 00:31:21.900 SPEAKER_00: But there is a triple tax advantage to that as well. So there's lots of reasons we have great options 00:31:21.900 --> 00:31:24.960 SPEAKER_00: I think we just need to educate our employees better on what to choose 00:31:26.000 --> 00:31:28.000 Unknown: Thank you. You're welcome 00:31:28.039 --> 00:31:34.559 Unknown: Any other board comments? Are there any public comment on item number one or number two? 00:31:40.480 --> 00:31:42.480 Unknown: Thank you, thank you you're welcome 00:31:43.240 --> 00:31:45.240 Unknown: Okay 00:31:45.240 --> 00:31:47.599 Unknown: So let's go ahead and we'll jump to 00:31:48.839 --> 00:31:50.839 SPEAKER_03: item number three 00:31:52.000 --> 00:31:57.120 SPEAKER_03: And this is our quarterly procurement report for the second quarter of 2026 00:31:59.120 --> 00:32:06.980 Unknown: Hello, sir. Good evening, Jessica field at beautiful council starting in April of this year. I also have the procurement department. So 00:32:08.039 --> 00:32:10.599 SPEAKER_06: Congratulations on getting your first just go feel procured report 00:32:11.119 --> 00:32:13.119 SPEAKER_06: Can we advance the slide one, please? 00:32:13.879 --> 00:32:18.119 SPEAKER_06: This is sort of a breakdown of everything that falls under the rubric of BL 8 00:32:18.119 --> 00:32:22.619 SPEAKER_06: Which is the authority that some other procurement department has to do contracting on behalf of smud 00:32:23.679 --> 00:32:25.679 SPEAKER_06: next slide, please 00:32:26.279 --> 00:32:28.240 Unknown: Okay, so 00:32:28.240 --> 00:32:30.240 SPEAKER_06: Competition I know the board 00:32:30.639 --> 00:32:36.879 SPEAKER_06: Rightly is concerned with making sure that we have a lot of stiff competition for our awards and as you can see here 00:32:37.240 --> 00:32:39.240 SPEAKER_06: we had in the 00:32:39.480 --> 00:32:41.480 SPEAKER_06: Boy does the eyesight fail 00:32:41.799 --> 00:32:48.480 SPEAKER_06: 297 million dollars worth of contracting in Q 2 April and to August April June, July 00:32:49.359 --> 00:32:50.599 Unknown: Yeah 00:32:50.599 --> 00:32:55.599 SPEAKER_06: Almost 300 million dollars of competitively bid contracts and relatively low amounts in all the other categories 00:32:56.079 --> 00:33:03.019 SPEAKER_06: 405 million competitive awards so far this year that the driver for 300 million dollars was a really big 00:33:03.259 --> 00:33:04.619 SPEAKER_06: 150 million dollar 00:33:04.619 --> 00:33:11.379 SPEAKER_06: Distribution transformer contract that we did do Eaton Cooper as well as a 35 million dollar contract for environmental services 00:33:11.379 --> 00:33:13.779 SPEAKER_06: Well, that's for contractors under 35 million dollars 00:33:14.660 --> 00:33:16.660 SPEAKER_06: next slide, please 00:33:16.980 --> 00:33:18.379 Unknown: I 00:33:18.379 --> 00:33:23.759 SPEAKER_06: was sitting at a board meeting sometime last year when someone on the board was 00:33:24.700 --> 00:33:31.099 SPEAKER_06: Suggesting that we really need to make sure that we don't have so much direct procurement because one that's it 00:33:31.459 --> 00:33:37.179 SPEAKER_06: Skirts competition and the like we had an extraordinarily high amount of this back in 2021 00:33:37.419 --> 00:33:39.419 SPEAKER_06: but I asked staff to put together a 00:33:39.939 --> 00:33:45.939 SPEAKER_06: demonstration of how the direct procurement numbers have looked over the last couple years it looks like we've skidded down this year to 00:33:46.539 --> 00:33:47.980 SPEAKER_06: 0.2% and 00:33:47.980 --> 00:33:49.980 SPEAKER_06: to put this into perspective 00:33:50.139 --> 00:33:56.459 SPEAKER_06: Direct procurement sometimes just makes sense because putting together a big procurement package when it's not a super high dollar value contract 00:33:56.740 --> 00:34:01.940 SPEAKER_06: But takes much of staff time gets a bunch of people in the community putting bids in when there's not really that much money 00:34:01.940 --> 00:34:06.740 SPEAKER_06: On the table, so hopefully we're judiciously using that authority next slide, please 00:34:08.740 --> 00:34:10.940 SPEAKER_06: Inclusiveness we were talking about this just the other day 00:34:11.500 --> 00:34:16.420 SPEAKER_06: We've been working harder and harder to get more and more bidders to the table to make our competitive 00:34:16.900 --> 00:34:21.699 SPEAKER_06: Solicitations yield what we hope are the most financially remunerative contracts for smud 00:34:22.219 --> 00:34:28.659 SPEAKER_06: It looks like we had an extraordinary amount of inclusiveness at five point six percent in 00:34:29.019 --> 00:34:33.839 SPEAKER_06: 2025 this quarter so far we're at five we used to target around three 00:34:34.579 --> 00:34:36.019 SPEAKER_06: so we're 00:34:36.019 --> 00:34:41.179 Unknown: Doing better than we want but then we have in the past but we're doing things to increase those amounts 00:34:41.179 --> 00:34:47.059 SPEAKER_06: I just note on the side that meta power solutions is an entity that provides transformers as some other 00:34:47.900 --> 00:34:52.940 SPEAKER_06: equipment that we have not contracted with before and I and one of the members of staff are going to be meeting with them tomorrow to 00:34:52.940 --> 00:34:55.940 SPEAKER_06: Try to encourage them to participate in some of our solicitation 00:34:55.940 --> 00:35:00.400 SPEAKER_06: So there's a lot of ongoing efforts on the part of staff to really drum up these numbers over time 00:35:01.420 --> 00:35:03.420 SPEAKER_06: next slide, please 00:35:03.659 --> 00:35:09.259 Unknown: Seed I know this is an issue that's to the deep in the hearts of the board 00:35:09.660 --> 00:35:17.020 SPEAKER_06: It really does go to how much value to smud give back to the community that we live with live in and will the ratepayers 00:35:17.020 --> 00:35:22.680 SPEAKER_06: Who buy our electricity the numbers as you see are well above the 20% mark 00:35:24.260 --> 00:35:26.020 Unknown: And 00:35:26.020 --> 00:35:32.500 SPEAKER_06: We've had 10 million dollars in sub-contracting for the last quarter and 34 million dollars in total seed 00:35:32.500 --> 00:35:34.580 SPEAKER_06: So the numbers are fairly high 00:35:35.300 --> 00:35:37.300 SPEAKER_06: Can we move the next slide, please? 00:35:37.300 --> 00:35:39.920 Unknown: the amount of 00:35:40.980 --> 00:35:45.620 SPEAKER_06: seed subcontracting where the money was actually gone to the seeds as 00:35:45.940 --> 00:35:50.180 SPEAKER_06: Opposed to the numbers that they thought they were going to get was 00:35:50.740 --> 00:35:58.220 SPEAKER_06: 75.3% for this quarter and I know that is a concerning number to the board because if somebody is a seed 00:35:58.780 --> 00:36:05.019 SPEAKER_06: Subcontractor in a contract and they expect a certain amount of work, then it would be nice if they were able to get that amount of work 00:36:05.739 --> 00:36:12.659 SPEAKER_06: One of the things that I've observed over the years from outside the procurement department is that it has been my experience that perhaps 00:36:13.259 --> 00:36:19.860 SPEAKER_06: The contracts don't necessarily identify the correct amount of work that the seeds are going to get and in part 00:36:19.860 --> 00:36:23.259 SPEAKER_06: I believe this is because if you're going to put a proposal together 00:36:23.259 --> 00:36:27.900 SPEAKER_06: You're trying your best to make an attractive proposal and it isn't necessarily 00:36:28.539 --> 00:36:34.480 SPEAKER_06: Your desire isn't to create the most accurate proposal based on what the historical numbers are. I met with staff 00:36:35.019 --> 00:36:42.659 SPEAKER_06: A couple of months ago and I said for public works contracts, which I believe constitutes the lion's share of some of our large contracts 00:36:44.300 --> 00:36:48.619 SPEAKER_06: Instead of having proposers just come up with numbers based on what they want to show 00:36:48.900 --> 00:36:53.219 SPEAKER_06: We should identify what the historical numbers have been in those categories and then 00:36:53.539 --> 00:37:00.259 SPEAKER_06: Require all the proposers to use those historical numbers as the percentage of work that will go to each of the individual job 00:37:00.460 --> 00:37:03.220 SPEAKER_06: categories for example if fencing was 5% 00:37:04.140 --> 00:37:08.460 SPEAKER_06: Historically on the civil construction contract and I just made that number up then everybody should be using 00:37:09.140 --> 00:37:15.540 SPEAKER_06: 5% to identify the seeds are going to get I believe and I believe staff believes that if we adjust these 00:37:15.860 --> 00:37:19.060 SPEAKER_06: Requirements and the way I just described that we will have better 00:37:19.500 --> 00:37:22.720 SPEAKER_06: Forecasting of what the seeds are going to be getting in the way of work 00:37:22.780 --> 00:37:25.360 SPEAKER_06: They'll be a bit better able to plan the amount of work 00:37:25.360 --> 00:37:30.400 SPEAKER_06: They're going to get and they'll be getting a lot more of what they get at the last meeting at the last time this 00:37:30.840 --> 00:37:35.820 SPEAKER_06: Recurrent was was proved this report was provided Casey Fallon said this and I know it's true 00:37:35.820 --> 00:37:40.400 SPEAKER_06: Cuz I watched it half an hour ago now that we are improving our education to 00:37:40.880 --> 00:37:43.559 SPEAKER_06: business unit so that they can manage their contracts better and 00:37:44.400 --> 00:37:47.300 SPEAKER_06: Education doesn't always sound like the best solution to a problem 00:37:47.300 --> 00:37:52.039 SPEAKER_06: The reality of around smud is we're very very nice to people 00:37:52.119 --> 00:37:56.960 SPEAKER_06: We don't want to push on people really hard in order to get those seed numbers up 00:37:56.960 --> 00:38:01.559 SPEAKER_06: We need to push on people we need to educate staff and give them the courage and the tools 00:38:01.559 --> 00:38:03.880 SPEAKER_06: They need to be able to say look it looks like you were self-performing 00:38:04.400 --> 00:38:08.559 SPEAKER_06: Some of the work that was supposed to go to a seed we now we need to watch out for it 00:38:08.559 --> 00:38:12.119 SPEAKER_06: We need to bird dog it so we are putting together a plan 00:38:12.119 --> 00:38:15.739 SPEAKER_06: It's supposed to be done by the end of this year and then we will be rolling it out in 00:38:16.179 --> 00:38:20.500 SPEAKER_06: 2027 that will really help support staff to do that. So I believe between those two things 00:38:21.099 --> 00:38:23.219 SPEAKER_06: We'll be able to see this number come up 00:38:24.619 --> 00:38:26.619 Unknown: Next slide 00:38:31.059 --> 00:38:36.659 Unknown: Stand Joe what you're saying is of all the contracts we let 00:38:38.579 --> 00:38:40.579 SPEAKER_01: 25 percent of 00:38:41.579 --> 00:38:48.819 SPEAKER_01: The dollars that were going to go to the seed vendors did not is that correct? 00:38:48.819 --> 00:38:54.019 SPEAKER_01: That is correct. Okay, as far as our records show if you think about it, they're forecasted amounts 00:38:54.019 --> 00:38:58.000 SPEAKER_06: It could be more or it could be less. But what what happened this last quarter was 00:38:59.099 --> 00:39:04.219 SPEAKER_06: 75% were paid to the seed club subcontractors 25% were not and it's 00:39:05.219 --> 00:39:09.219 Unknown: Let me let me illustrate what I was saying a little bit better staff 00:39:09.980 --> 00:39:11.179 Unknown: gives 00:39:11.179 --> 00:39:15.019 SPEAKER_06: Direction to our contractors did the work that we need when we need it 00:39:15.299 --> 00:39:20.259 Unknown: We don't always know what the kind of contract and all the jobs are going to be for civil construction 00:39:20.259 --> 00:39:23.579 SPEAKER_06: Do we know how many distributions transformers we need platform or? 00:39:24.980 --> 00:39:28.139 SPEAKER_06: Platforms for we don't so when we put those jobs together 00:39:28.139 --> 00:39:34.579 SPEAKER_06: It may or may not line up with what the seed commitments were so-called seed commitments in each of the contracts 00:39:34.739 --> 00:39:38.980 SPEAKER_06: So that's I mean, that's why I want to align those things to make sure that they're as close as possible 00:39:44.339 --> 00:39:47.420 Unknown: Okay, so the realities of 00:39:48.179 --> 00:39:53.819 SPEAKER_06: Our process is that sometimes people aren't always happy with the result of an award and we get a protest 00:39:54.019 --> 00:40:00.720 SPEAKER_06: We had two protests that were either filed in or attached to quarter to closed 00:40:01.300 --> 00:40:03.559 SPEAKER_06: Procurements one was for crane services 00:40:04.260 --> 00:40:07.260 SPEAKER_06: That one I looked at both leaves one of them was a math error 00:40:07.700 --> 00:40:11.260 SPEAKER_06: Somebody uploaded the wrong number from the proposal the proposer didn't like that 00:40:11.500 --> 00:40:15.019 SPEAKER_06: They said that should have changed the award, but it wasn't even close to changing the award 00:40:15.019 --> 00:40:20.519 SPEAKER_06: So we dismissed the protest the other one is everybody's favorite topic civil annual construction services contract 00:40:20.920 --> 00:40:25.119 SPEAKER_06: And one of the proposers didn't think that they got a high enough technical score 00:40:25.320 --> 00:40:31.320 SPEAKER_06: This is the single most common protest basis that I've seen over working at some effort 13 years 00:40:32.000 --> 00:40:39.000 SPEAKER_06: People think they should get a higher technical evaluation what we typically do in response to protests along these lines as we look 00:40:39.559 --> 00:40:46.840 SPEAKER_06: Were the business units identifying the appropriate people to review things did they have the background to be able to evaluate the technical proposal and 00:40:47.160 --> 00:40:53.680 SPEAKER_06: Were they done objectively and in this case there were four individual human beings they sat separately from each other 00:40:53.680 --> 00:40:56.340 SPEAKER_06: They recorded their scores none of them conferred with each other 00:40:56.880 --> 00:41:00.960 SPEAKER_06: And we have to assume that the business units who do this work know how to rank these things 00:41:00.960 --> 00:41:06.559 SPEAKER_06: And so we just wrote back to them and said we stand behind the score and they didn't know that these neither of these appealed 00:41:06.559 --> 00:41:10.559 SPEAKER_06: So I believe that they accepted the response as adequate 00:41:11.440 --> 00:41:13.440 Unknown: Next slide that might be the last slide 00:41:13.440 --> 00:41:17.679 SPEAKER_06: And there's your quarterly procurement report 00:41:22.760 --> 00:41:26.039 Unknown: Are there any questions or comments president tomorrow I 00:41:28.559 --> 00:41:30.559 SPEAKER_11: Appreciate how 00:41:31.200 --> 00:41:37.519 SPEAKER_11: You and other staff took our concerns about the seed 00:41:39.240 --> 00:41:42.360 Unknown: Seed awards the actual versus forecasted and 00:41:43.480 --> 00:41:50.440 SPEAKER_11: Appreciate that you took that seriously and looked at what we can do about it, so I'm looking forward to 00:41:52.200 --> 00:41:55.519 SPEAKER_11: What the results are so good. Thank you 00:41:59.360 --> 00:42:06.000 Unknown: Perfect my only my only comment echo what president spider just said right it's very much about accountability and 00:42:06.559 --> 00:42:13.119 SPEAKER_03: Fairness on those seed vendors and it sounds like this this course that you guys are going down will help solve that problem 00:42:13.119 --> 00:42:16.199 SPEAKER_03: Right where where they're gonna be able to better project 00:42:16.679 --> 00:42:21.599 SPEAKER_03: The actual work and then they'll be able to line up the actual over the expectations much better 00:42:22.719 --> 00:42:29.359 SPEAKER_03: Versus more of a wouldn't call quite a shot in the dark, but not having the exact target in front of you that you're shooting 00:42:29.359 --> 00:42:31.199 SPEAKER_03: It so thank you for that 00:42:31.199 --> 00:42:35.119 Unknown: Okay, I don't see any other board comments. Are there any public comments on this? 00:42:36.880 --> 00:42:38.880 Unknown: Okay, thank you 00:42:43.519 --> 00:42:45.759 SPEAKER_03: Let's move to item number four 00:42:47.159 --> 00:42:53.039 SPEAKER_03: I'm before is by the board with smud's financial results from the seven month period ending July 31st 00:42:53.279 --> 00:42:59.639 SPEAKER_03: And a summary of smud's current power supply costs and we have George our director of interim director of accounting 00:43:00.759 --> 00:43:02.759 SPEAKER_03: Really been a whole month since we saw you 00:43:06.559 --> 00:43:07.960 SPEAKER_09: Good afternoon 00:43:07.960 --> 00:43:12.519 Unknown: Director rose and smud board of directors, so I'm George Vaughn director of accounting and controller 00:43:13.119 --> 00:43:16.699 Unknown: Presenting the seven months of financial results and power supply costs 00:43:18.839 --> 00:43:24.839 Unknown: Okay customer revenues we clipped over the 1 billion dollar mark through July 00:43:25.239 --> 00:43:30.859 Unknown: The significance also of this is that we were off by about seven hundred thousand dollars against our budget 00:43:31.079 --> 00:43:34.460 Unknown: So we were off less than one tenth of 1% 00:43:34.460 --> 00:43:38.920 SPEAKER_09: So I just want to call that out that was very accurate forecasting on the revenue side 00:43:39.200 --> 00:43:45.139 Unknown: Commodity expenses three hundred and twenty one million dollars year to date 00:43:45.920 --> 00:43:53.599 SPEAKER_09: Which is twenty million dollars lower than budget that's due to lower fuel costs because we've been generating less thermal power 00:43:54.400 --> 00:43:57.840 SPEAKER_09: Additionally, we have lower market power prices that are reducing the cost 00:43:58.480 --> 00:44:04.039 Unknown: other operating expenses six hundred and eleven million dollars fifteen million dollars below budget 00:44:04.400 --> 00:44:08.519 Unknown: It's driven by some I'd say project timing and lower program participation 00:44:09.400 --> 00:44:12.759 Unknown: Kind of spread into the customer services and public goods area 00:44:13.559 --> 00:44:15.559 SPEAKER_09: additionally transmission and distribution 00:44:15.960 --> 00:44:21.639 SPEAKER_09: O&M is lower than expected to primarily due to efficiencies and vegetation management 00:44:21.920 --> 00:44:27.039 Unknown: This all leads to a hundred and ninety seven million dollars through July of net income, which is our bottom line 00:44:27.719 --> 00:44:33.800 Unknown: Our budget was a hundred and fifty three million. So we're forty four million dollars ahead of budget 00:44:34.119 --> 00:44:36.119 SPEAKER_09: through July 00:44:36.159 --> 00:44:38.159 Unknown: I think that's a that's a 00:44:38.279 --> 00:44:44.480 Unknown: The revenue being so close as good since we've had such mild weather at least at that point through mid-July 00:44:44.480 --> 00:44:47.920 SPEAKER_03: And it warmed up in August, but it's been boring in the back of my mind 00:44:48.440 --> 00:44:53.840 SPEAKER_03: The good thing is people's bills are lower lower, but from the smud budget perspective hot weather means more sales 00:44:54.119 --> 00:44:57.960 SPEAKER_03: Yeah, which simply stabilizes our budget. So thank you. Absolutely 00:44:58.840 --> 00:45:03.880 SPEAKER_09: Energy sources I'll kind of talk about both of these at the same time the left hand chart is for the month 00:45:04.000 --> 00:45:06.000 SPEAKER_09: The right hand chart is year to date 00:45:06.880 --> 00:45:09.079 SPEAKER_09: So we'll start with the blue which is hydro 00:45:09.280 --> 00:45:13.360 SPEAKER_09: We're under plan both month to date and year to date on hydro 00:45:13.880 --> 00:45:17.840 SPEAKER_09: Driven by the fact that it's just been a kind of a poor hydro year. We've covered this before 00:45:18.480 --> 00:45:22.800 SPEAKER_09: Low precipitation about nine not about 90 percent of average. So below to low participation 00:45:23.599 --> 00:45:26.559 SPEAKER_09: The snow packs been non-existent for a couple of months 00:45:27.119 --> 00:45:30.880 Unknown: the orange is thermal generation and the green is 00:45:31.840 --> 00:45:37.960 SPEAKER_09: Purchase power those offset were low in thermal high in purchase power both for the same reason which is 00:45:38.320 --> 00:45:44.799 SPEAKER_09: Kind of low reasonable market prices make it better for us to go and buy the power in the market then then to generate it thermally 00:45:47.159 --> 00:45:51.759 SPEAKER_09: Delinquencies so you can see here. We're at 26 million. That's a little bit above June 00:45:51.759 --> 00:45:54.799 SPEAKER_09: Which is just normal seasonal as you start getting into the warmer months 00:45:54.800 --> 00:46:01.180 SPEAKER_09: I think the more relevant comparison is I was looking at last year for July and it was 30 million last year 00:46:01.180 --> 00:46:07.680 SPEAKER_09: We're at 26 right now this year. So we've dropped over 10% year over year. It's still not our normal levels 00:46:08.600 --> 00:46:11.760 SPEAKER_09: Pre-covid, but it's it's getting better year over year 00:46:12.400 --> 00:46:17.600 SPEAKER_09: the majority of that's residential about 75% is residential obviously on these delinquencies and 00:46:18.240 --> 00:46:23.519 SPEAKER_09: We have about eight and a half nine million dollars in payment plans out of that total 00:46:24.800 --> 00:46:30.000 Unknown: Precipitation levels has really not changed in the last month because it hasn't rained 00:46:30.680 --> 00:46:35.660 SPEAKER_09: So we're still at about 90% of average to date and 90% of the whole water your average 00:46:35.680 --> 00:46:39.120 SPEAKER_09: Which is kind of what I was talking about in terms of low hydro 00:46:41.600 --> 00:46:44.320 Unknown: Snow packs been at 0% for a couple of months now 00:46:45.480 --> 00:46:48.080 SPEAKER_09: Last month I reported 85% on 00:46:49.079 --> 00:46:51.679 SPEAKER_09: Our storage capacity now we're at 75% 00:46:52.599 --> 00:46:59.079 Unknown: So we've been you know taking some of that water out of the reservoirs and using it so but we're still at about 75% 00:47:01.759 --> 00:47:03.920 Unknown: If you look to the right here on commodities 00:47:04.400 --> 00:47:07.900 Unknown: We're forecast to come in very close to plan at the end of the year 00:47:08.759 --> 00:47:10.759 SPEAKER_09: 591 versus 593 00:47:11.880 --> 00:47:17.860 Unknown: That's kind of a couple of offsetting things. So our hydro forecast is as I said low 00:47:18.079 --> 00:47:21.159 SPEAKER_09: And when you have less hydro that drives you to more expensive 00:47:21.840 --> 00:47:24.480 SPEAKER_09: Commodities so that kind of puts upward pressure 00:47:24.679 --> 00:47:31.599 SPEAKER_09: but then we're seeing downward pressure because we have lower fuel costs and lower average market power prices and 00:47:32.000 --> 00:47:34.860 Unknown: then if you look at the chart below that that just shows the 00:47:35.599 --> 00:47:37.799 SPEAKER_09: 183 gigawatt hours below plan for 00:47:38.319 --> 00:47:40.319 Unknown: hydro 00:47:41.199 --> 00:47:43.199 Unknown: Finally days cash on hand 00:47:43.679 --> 00:47:48.159 SPEAKER_09: So we're at 234 days year to date versus a budget of 00:47:48.879 --> 00:47:51.639 SPEAKER_09: 222 that's largely driven by the fact that 00:47:52.159 --> 00:47:56.439 SPEAKER_09: We brought in more net proceeds on our bond issuance than what was in the budget 00:47:56.480 --> 00:47:59.839 SPEAKER_09: So that helped drive that up and then you can see at the end of the year 00:47:59.839 --> 00:48:03.879 SPEAKER_09: It kind of goes the other direction. It's 201 days versus a plan of 211 00:48:04.199 --> 00:48:09.079 SPEAKER_09: That's due to capital spending timing and so there's some capital spending going on late in the year. That's kind of 00:48:09.799 --> 00:48:11.799 SPEAKER_09: driving those numbers a bit 00:48:11.800 --> 00:48:16.440 SPEAKER_09: And you know, but we use that peak that green peak you see there in the summer 00:48:16.440 --> 00:48:21.240 SPEAKER_09: That was the bond issuance we use that we're paying down commercial any remaining commercial paper 00:48:21.240 --> 00:48:25.500 SPEAKER_09: I think in August or so it's paid off and then by the end of the year 00:48:25.500 --> 00:48:27.500 SPEAKER_09: We won't have any commercial paper outstanding 00:48:28.320 --> 00:48:30.320 SPEAKER_09: So I can take any questions. I 00:48:34.960 --> 00:48:36.960 Unknown: Don't have any questions 00:48:37.559 --> 00:48:42.720 Unknown: Quick observation that our access to the Western markets is paying off in a big way 00:48:42.960 --> 00:48:48.400 SPEAKER_10: And I can't wait to get into e-dam and really make it work. Awesome. Yeah, great. Thank you 00:48:52.159 --> 00:48:54.159 Unknown: Thank you, thank you 00:48:56.519 --> 00:49:01.760 Unknown: All right, how are they any public comments we have no public comment, okay 00:49:01.800 --> 00:49:03.800 SPEAKER_03: Then 00:49:03.960 --> 00:49:05.720 Unknown: Let's jump to 00:49:05.720 --> 00:49:14.760 SPEAKER_03: Item number five is just an informational item if there's any questions on the internal audit services report on the green energy partner plus 00:49:15.000 --> 00:49:17.000 SPEAKER_03: annual verification 00:49:17.320 --> 00:49:20.960 SPEAKER_03: Which I read and then there was nothing to report 00:49:22.680 --> 00:49:24.800 Unknown: Okay, let's move on to item number six then 00:49:32.760 --> 00:49:36.280 Unknown: And then item number six was take another bite of this Apple 00:49:36.520 --> 00:49:40.980 SPEAKER_03: Is to discuss the contract award for the civil annual construction services contract? 00:49:41.400 --> 00:49:42.480 SPEAKER_03: Yeah 00:49:42.480 --> 00:49:48.840 Unknown: Chairs before we turn it over to Joe Scofield a lorong why chief executive officer and general manager its men 00:49:49.360 --> 00:49:55.040 SPEAKER_07: Wanted to take a minute first to kind of talk through this item and kick off the discussion 00:49:55.560 --> 00:50:00.580 SPEAKER_07: As you alluded to this is the third time that this is coming in front of the board fourth time 00:50:01.059 --> 00:50:06.659 Unknown: So I just wanted to thank the board. I know that we've been having a really robust discussion about this contract 00:50:07.539 --> 00:50:10.400 Unknown: And really acknowledge the fact that you each represent 00:50:11.179 --> 00:50:18.420 Unknown: Not only your wards, but a really diverse population set within our communities and with that we all have different perspectives 00:50:18.420 --> 00:50:23.139 SPEAKER_07: You all have different perspectives that you're bringing to the table and this is not easy, right? And not everything's easy 00:50:23.139 --> 00:50:28.319 SPEAKER_07: We're not always going to agree and that's actually okay. And I think that's what makes this board so strong 00:50:28.440 --> 00:50:32.680 SPEAKER_07: I do want to acknowledge the board's willingness to have these tough conversations 00:50:33.360 --> 00:50:37.480 SPEAKER_07: Listening to the discussions. I think there's there's actually two issues here that I see 00:50:37.480 --> 00:50:43.039 SPEAKER_07: The first is really around the contract that's being presented for approval and the work that's associated with it 00:50:43.039 --> 00:50:47.920 SPEAKER_07: And the second is really the board's desire for us to increase our union contracts 00:50:47.920 --> 00:50:53.480 SPEAKER_07: But I do see those as two separate and distinct issues on the work for this contract 00:50:53.480 --> 00:50:56.760 SPEAKER_07: I think the team did a fantastic job. They followed our policies 00:50:56.880 --> 00:51:01.820 SPEAKER_07: They negotiated really strong terms for us and for our customers. I mean, I agree 00:51:02.400 --> 00:51:06.600 SPEAKER_07: strongly with the team's recommendation to award the contract to the top two vendors 00:51:07.200 --> 00:51:09.360 SPEAKER_07: with a slight change in terms 00:51:09.800 --> 00:51:13.440 SPEAKER_07: moving the contract from that five-year contract terms to three years and 00:51:13.840 --> 00:51:20.800 SPEAKER_07: Reducing from the 250 million dollars to 150 million dollars this approach really saved SVID both time and money 00:51:20.800 --> 00:51:22.800 SPEAKER_07: But I think most importantly 00:51:22.840 --> 00:51:29.200 SPEAKER_07: By approving this it actually keeps intact our team's ability to continue to negotiate good contracts in the future 00:51:29.800 --> 00:51:34.840 SPEAKER_07: The second item the board's desire for us to increase our union contracts 00:51:35.200 --> 00:51:40.280 SPEAKER_07: The community workforce agreement has already been placed into the parking lot and the board work plan 00:51:40.280 --> 00:51:43.740 SPEAKER_07: I think we need to get that added to scheduled and calendared 00:51:44.400 --> 00:51:48.980 SPEAKER_07: We'll come back with the staff recommendation around the use of CWAs 00:51:48.980 --> 00:51:54.940 SPEAKER_07: We need time to complete that analysis and we'll probably need until the beginning of the year in order to do that 00:51:54.940 --> 00:51:59.500 SPEAKER_07: And but we'll get that calendared and I think that's really the appropriate place to have that discussion 00:51:59.500 --> 00:52:04.340 SPEAKER_07: So just wanted to to kick that off on my thoughts on on the issue. Thank you 00:52:06.500 --> 00:52:09.820 SPEAKER_03: So what I would ask the board members if we could have Joe go through 00:52:10.179 --> 00:52:13.900 Unknown: The whole his whole presentation and let's try to do questions at the end 00:52:14.300 --> 00:52:18.099 SPEAKER_03: Just so we can hear everything he has to say without interrupting and stopping 00:52:18.980 --> 00:52:23.920 Unknown: If you guys are okay with that unless it's really you know, you need much fun to interrupt. Yeah 00:52:28.820 --> 00:52:35.260 Unknown: This is a bit of a truncated presentation, thank you very much Laura for your hard to hollow 00:52:35.260 --> 00:52:37.260 SPEAKER_06: I'll just say that next slide 00:52:38.059 --> 00:52:44.420 Unknown: This is just a reminder of the ranking of all the various proposers for the civil and oil construction contract 00:52:44.579 --> 00:52:46.659 SPEAKER_06: Top score went to Sierra National Construction 00:52:47.500 --> 00:52:53.000 Unknown: Second place went to Doug beer camp. Those are the two awardees that we recommend awarding contracts to 00:52:53.659 --> 00:52:58.460 SPEAKER_06: Those are the ones who gave us the best combination of technical prowess and price 00:52:59.740 --> 00:53:01.740 SPEAKER_06: next slide, please 00:53:02.139 --> 00:53:09.280 Unknown: This is essentially just an overview of the things that we looked at past delcorterea seed company experience personnel experience safety 00:53:09.680 --> 00:53:16.140 SPEAKER_06: Environmental sustainability and commercial terms which was price and compliance with contract terms next slide, please 00:53:16.920 --> 00:53:17.960 Unknown: so 00:53:17.960 --> 00:53:22.120 SPEAKER_06: I wanted to take the opportunity to walk through the sample job because I know that 00:53:23.000 --> 00:53:27.280 SPEAKER_06: Led to some numbers on the slide last time that seemed a little 00:53:28.519 --> 00:53:34.400 SPEAKER_06: Jarring I guess so the sample job is a relatively small part of the overall 00:53:35.280 --> 00:53:37.280 SPEAKER_06: Points through allocated each proposer 00:53:38.240 --> 00:53:44.880 SPEAKER_06: 40% of the points for this were done for what we called commercial points, which is mostly pricing 00:53:45.079 --> 00:53:51.880 SPEAKER_06: But an eighth of that was the so-called sample job and what happened was a member of Eric's Poff staff 00:53:51.880 --> 00:53:53.880 SPEAKER_06: the director of substations and other things 00:53:54.840 --> 00:53:56.840 SPEAKER_06: Put together what he thought was a very 00:53:57.440 --> 00:54:01.160 SPEAKER_06: representative job of the kinds of work that most of the 00:54:01.399 --> 00:54:05.719 SPEAKER_06: Most of the work under this contract would go to that was under a million dollars the kinds of stuff 00:54:05.719 --> 00:54:10.239 SPEAKER_06: He does day in or week in week out month and month out throughout the course of the contract 00:54:10.440 --> 00:54:14.679 SPEAKER_06: So it was a relatively confined space job. So it's kind of interesting 00:54:14.799 --> 00:54:22.480 SPEAKER_06: So each of the individual proposers was required to fill out a form that identified how they would tackle this the technical specs 00:54:22.480 --> 00:54:25.679 SPEAKER_06: to safety mobilization labor equality control 00:54:26.359 --> 00:54:31.519 SPEAKER_06: Phasing all the things that would give us insight into how they were going to design and tackle these jobs 00:54:31.960 --> 00:54:34.559 SPEAKER_06: so we could understand what value they would give and 00:54:35.000 --> 00:54:40.519 SPEAKER_06: So points were allocated based on all those different things and one of the things that was interesting to me 00:54:40.719 --> 00:54:44.000 SPEAKER_06: And that I share with you just because it really sort of brought this to life 00:54:44.000 --> 00:54:48.000 SPEAKER_06: Is that in terms of phasing the work in a confined space? 00:54:48.000 --> 00:54:53.359 SPEAKER_06: You have to be very careful about making sure that you're putting things in that you aren't going to have to take apart later 00:54:53.720 --> 00:54:56.400 SPEAKER_06: don't get in the way of your later work and 00:54:57.880 --> 00:55:03.760 SPEAKER_06: One of Eric's staff was explaining to me that one of the reasons that one contractor didn't get a lot of points is that they're phasing 00:55:03.760 --> 00:55:04.800 SPEAKER_06: with sort of like 00:55:04.800 --> 00:55:08.400 SPEAKER_06: Contradictory to the sort of a reasonable layout of what the work would look like 00:55:09.440 --> 00:55:11.440 SPEAKER_06: next slide, please 00:55:11.480 --> 00:55:13.519 SPEAKER_06: So why award to two contracts? 00:55:14.240 --> 00:55:21.320 SPEAKER_06: The first one is just to save money where you worked really hard to drill this down getting 27 million dollars down from the top two 00:55:21.840 --> 00:55:25.960 SPEAKER_06: Contractors over the course of a five-year contract so lower for three years 00:55:26.360 --> 00:55:28.039 SPEAKER_06: the second one is 00:55:28.039 --> 00:55:34.800 SPEAKER_06: Two contracts meets with the staff forecast that they'll need contractors to do the work that we have planned and that we anticipate 00:55:35.039 --> 00:55:40.559 SPEAKER_06: So it is true that we don't always award the same number of contracts on you know 00:55:40.559 --> 00:55:43.440 SPEAKER_06: For different contracts year to year because we have different plans 00:55:43.720 --> 00:55:46.880 SPEAKER_06: We know you know sometimes we're building out a lot of stuff 00:55:46.880 --> 00:55:51.960 SPEAKER_06: Sometimes we have a lot of things planned sometimes we put a little bit of buffer in for unplanned emergencies 00:55:52.079 --> 00:55:57.000 SPEAKER_06: But for this particular contract it was staff's opinion that two contractors would get the job done 00:55:58.039 --> 00:56:03.480 SPEAKER_06: Another one is rewarding contractors who worked with staff to adjust pricing as Laura on why pointed out 00:56:03.840 --> 00:56:09.440 SPEAKER_06: We had a couple of contractors who worked really well with us to bring their pricing down into an area that would be very competitive 00:56:09.440 --> 00:56:13.940 SPEAKER_06: For smud it would actually save us money over the existing contract 00:56:14.500 --> 00:56:15.740 Unknown: I'm gonna say that again 00:56:15.740 --> 00:56:21.780 SPEAKER_06: This is going to be cheaper than the existing contract because we were able to get such good pricing on it that hardly ever happens 00:56:21.780 --> 00:56:23.220 SPEAKER_06: in today's world 00:56:23.220 --> 00:56:29.340 SPEAKER_06: Next one is time managing contractor relationships one of Eric staff was talking to me about he gets calls 00:56:29.579 --> 00:56:33.700 SPEAKER_06: Every week about how much work he's going to get from each of the contractors that's in his roster 00:56:33.700 --> 00:56:37.920 SPEAKER_06: You have five contractors as opposed to two that's two and a half times more time 00:56:37.920 --> 00:56:39.260 SPEAKER_06: You're spending on the phone 00:56:39.260 --> 00:56:44.100 SPEAKER_06: Getting offers to go to lunch and all the other things that go along with managing the relationship with the contractor 00:56:44.780 --> 00:56:51.860 SPEAKER_06: Another one is how much prepare preparation processing and task proposal discussions you have do you talk to five you talk to two? 00:56:51.860 --> 00:56:54.420 SPEAKER_06: Do you review five proposals or do you review two? 00:56:55.380 --> 00:57:01.380 SPEAKER_06: So if it's worth it because we need the bench then maybe it's worth it to do all that extra work and the last one is 00:57:01.820 --> 00:57:03.820 SPEAKER_06: To get into inside baseball legal issue 00:57:04.120 --> 00:57:11.320 SPEAKER_06: The public utilities or the public contracts code requires us to have payment bonds for our contracts for the amount of the contract 00:57:11.400 --> 00:57:13.160 SPEAKER_06: We have five contractors 00:57:13.160 --> 00:57:19.480 SPEAKER_06: we have to have five payment bonds in the estimate that I got from staff was that it was I 00:57:20.200 --> 00:57:22.680 SPEAKER_06: forget what the exact number was but I think it was a 00:57:23.080 --> 00:57:25.480 SPEAKER_06: five divided by 180 like 60 00:57:26.360 --> 00:57:32.559 Unknown: Anyway, it was a certain amount of tens of thousands of dollars per contractor for bond and if you have two bonds 00:57:32.579 --> 00:57:39.699 SPEAKER_06: It's a lot cheaper than five bonds. So it will save us money just on terms of direct payment line items in the contract 00:57:40.659 --> 00:57:43.019 Unknown: I believe that might be my last slide 00:57:45.219 --> 00:57:47.219 Unknown: One more says Mary Tony 00:57:47.380 --> 00:57:54.739 SPEAKER_06: So we come back to the requested action which was already mentioned the recommendation is to award two contracts one to 00:57:55.099 --> 00:58:00.840 SPEAKER_06: Sierra National Construction Inc and Doug beer camp general engineering ink for civil annual construction not to exceed 00:58:01.300 --> 00:58:03.860 SPEAKER_06: 150 million dollars. I'll be happy to 00:58:04.780 --> 00:58:06.780 SPEAKER_06: Take questions 00:58:08.500 --> 00:58:10.500 Unknown: Comment signed up at this point 00:58:15.100 --> 00:58:20.860 SPEAKER_08: Director Stanborn has a comment, but I don't see any I don't see any hands from members of the public at this point 00:58:21.140 --> 00:58:24.700 Unknown: So the the recommendation from our CEO is to adopt 00:58:25.260 --> 00:58:29.480 SPEAKER_03: the top two for a three-year period of 150 million dollars 00:58:30.380 --> 00:58:37.000 SPEAKER_03: So we go ahead and have we had the previous discussion, right? We had some different ideas that we should expand it to five 00:58:37.699 --> 00:58:41.699 SPEAKER_03: We've heard from staff some serious concerns about going that pathway 00:58:42.579 --> 00:58:47.980 SPEAKER_03: Some of my notes right we're worrying about just the ability to having staff negotiate in the future 00:58:48.860 --> 00:58:51.639 SPEAKER_03: And then we also have this, you know a separate 00:58:52.099 --> 00:58:58.300 SPEAKER_03: Course of direction that we're looking at some some workforce agreements though that is separate from this set of work 00:58:58.400 --> 00:59:00.400 SPEAKER_03: That's what I'm hearing so far 00:59:01.039 --> 00:59:04.300 SPEAKER_03: Should we go ahead to people? I assume everybody has some thoughts and 00:59:05.200 --> 00:59:10.019 SPEAKER_03: Comments that they'd like to express I see director Sam Barnes hands up or present 00:59:12.440 --> 00:59:18.560 SPEAKER_05: Yeah, and I with even more information provided by staff about the bond costs 00:59:19.120 --> 00:59:25.120 SPEAKER_05: Already knowing that the difference between number two and number three is eight and a half million dollars 00:59:25.200 --> 00:59:27.680 SPEAKER_05: Which is the better part of a percentage rate increase? 00:59:28.640 --> 00:59:35.760 SPEAKER_05: And basically the difference in the change in one of that health care contract costs that we were just saying so expensive 00:59:37.440 --> 00:59:39.760 Unknown: With us trying to keep these rates low and 00:59:40.519 --> 00:59:42.720 SPEAKER_05: Be able to negotiate in the future. I 00:59:44.080 --> 00:59:45.760 SPEAKER_05: Just don't 00:59:45.760 --> 00:59:53.039 Unknown: Think we should vary off of the recommendation from staff. I think it's solid. It's fair. It's affordable and 00:59:53.980 --> 01:00:00.019 SPEAKER_05: It will get us long-term benefits as long as we go back and look at these contracts and how 01:00:00.659 --> 01:00:03.019 Unknown: They're scored so in the future 01:00:03.219 --> 01:00:10.139 SPEAKER_05: We don't have these discussions at the last minute when we're looking to approve contracts. That's not the time for me 01:00:11.219 --> 01:00:16.699 SPEAKER_05: To do it. We just aren't prepared to do the deep dive and be ready. So I look forward to those 01:00:17.539 --> 01:00:19.860 Unknown: that deep dive and coming back so we can 01:00:20.680 --> 01:00:26.559 Unknown: Not have these kinds of things happen in the future so I'm ready to move this item as presented. Thank you 01:00:27.480 --> 01:00:33.620 Unknown: Okay, I see present Maya. Yeah, so last week. I asked, you know, what would be the impact of 01:00:35.120 --> 01:00:41.320 SPEAKER_11: Having five contracts and I think you know the opposite of that you you point out the reasons why 01:00:42.079 --> 01:00:44.079 SPEAKER_11: two contracts is 01:00:44.519 --> 01:00:49.800 SPEAKER_11: makes sense from your perspective and and I'm satisfied with with the 01:00:50.440 --> 01:00:52.440 SPEAKER_11: answers and I also 01:00:52.440 --> 01:00:54.440 SPEAKER_11: appreciate that we're 01:00:54.800 --> 01:01:01.079 Unknown: We're moving forward on this. We've reduced the the term of it and also even though they're not 01:01:01.680 --> 01:01:02.680 SPEAKER_11: inextricably 01:01:02.680 --> 01:01:06.680 SPEAKER_11: inextricably linked just the timing of it with regards to the 01:01:07.320 --> 01:01:15.440 SPEAKER_11: Community Workforce Agreement. I appreciate that. It's there's some clarification about you know, we're still moving forward with that and 01:01:16.420 --> 01:01:20.980 SPEAKER_11: So I'm happy to support this at this point 01:01:20.980 --> 01:01:23.700 SPEAKER_11: so and I really do appreciate that we're 01:01:24.500 --> 01:01:27.220 SPEAKER_11: we've clarified the relationship of this to the 01:01:27.940 --> 01:01:29.940 SPEAKER_11: Community Workforce Agreement that we'll be 01:01:30.700 --> 01:01:33.260 SPEAKER_11: Looking at in the coming months. Thank you 01:01:37.500 --> 01:01:39.500 Unknown: Yeah 01:01:39.500 --> 01:01:41.500 Unknown: I 01:01:42.000 --> 01:01:49.320 Unknown: In previous meetings, I mean there's there's a little bit of friction between our seed contracting and our desire to be supportive of 01:01:50.239 --> 01:01:53.679 SPEAKER_10: organized labor and that that's not it's not a 01:01:54.239 --> 01:01:57.039 SPEAKER_10: constant but but that friction doesn't come up sometimes and I think 01:01:57.719 --> 01:02:01.679 SPEAKER_10: it's it's the board's job and to try to strike a balance and 01:02:02.360 --> 01:02:07.719 SPEAKER_10: a lot of that will come out of this the process that we're going to go through to look at the CWA and 01:02:07.799 --> 01:02:12.239 SPEAKER_10: Decide when and where it's appropriate and and and how to make that work a little bit better 01:02:12.659 --> 01:02:18.199 SPEAKER_10: In this case, I'm you know, I do appreciate that staff has come back and said look we were willing to shorten the term of the contract 01:02:18.759 --> 01:02:26.059 SPEAKER_10: We'll we'll see this again a little bit sooner and and kind of you know, open it up again for additional people to bid on it 01:02:26.639 --> 01:02:28.639 SPEAKER_10: sooner than originally planned and 01:02:28.759 --> 01:02:32.299 SPEAKER_10: This this strikes a decent balance and I'm ready to support it 01:02:35.079 --> 01:02:37.079 Unknown: Trevor 01:02:38.719 --> 01:02:40.719 Unknown: You know, I tell ya I 01:02:41.219 --> 01:02:43.980 SPEAKER_01: Have flipped around on this 01:02:45.039 --> 01:02:48.079 SPEAKER_01: you know as we have had discussions and 01:02:48.919 --> 01:02:51.500 SPEAKER_01: I've gone out and I've talked to 01:02:52.559 --> 01:02:55.879 SPEAKER_01: different folks that I think can give me insight on this and 01:02:57.199 --> 01:03:02.039 SPEAKER_01: You know, I think first of all that staff did a tremendous job 01:03:03.439 --> 01:03:07.199 SPEAKER_01: By really drilling down the costs of 01:03:07.959 --> 01:03:12.079 SPEAKER_01: These contracts that is so very important 01:03:12.079 --> 01:03:16.259 SPEAKER_01: And so I want to say thank you for doing that 01:03:16.839 --> 01:03:22.359 SPEAKER_01: you know for me, I know there have been you know different perspectives and 01:03:24.519 --> 01:03:29.239 SPEAKER_01: That there's a desire to have more union contracting, you know 01:03:29.239 --> 01:03:37.039 SPEAKER_01: I fully support that but I do believe that we can take care of that with our workforce agreements and 01:03:37.719 --> 01:03:42.779 SPEAKER_01: the fact that we lowered this from 250 to 01:03:43.399 --> 01:03:48.159 SPEAKER_01: 150 and then shortened it from five years to three years 01:03:48.159 --> 01:03:54.079 SPEAKER_01: I mean, I think we've really tried to be responsive to those who 01:03:55.599 --> 01:03:59.839 SPEAKER_01: You know haven't been happy with the original contract so 01:04:01.639 --> 01:04:07.079 SPEAKER_01: After taking my time to do a little bit more research talked to different folks 01:04:07.879 --> 01:04:12.559 SPEAKER_01: I'm gonna support this and I do think staff did a great job 01:04:20.559 --> 01:04:22.559 SPEAKER_04: Sure, I 01:04:22.959 --> 01:04:29.519 Unknown: Do intend to support the compromise solution that we've come up with I think it's a good one and make sense as it's presented 01:04:30.399 --> 01:04:32.559 SPEAKER_04: Just a couple observations though 01:04:32.559 --> 01:04:40.599 SPEAKER_04: There are some great contractors on this list and the winners are great contractors, too 01:04:41.880 --> 01:04:46.599 Unknown: But we do tend to see the same contractors winning our bids 01:04:47.519 --> 01:04:50.519 SPEAKER_04: Particularly in civil construction, but it's the same group of people 01:04:51.400 --> 01:04:53.400 SPEAKER_04: or group companies 01:04:54.279 --> 01:04:58.960 Unknown: And I think there's something about learning to work with smud that these 01:04:59.360 --> 01:05:06.320 SPEAKER_04: Contractors do over time and learning how our bidding process works and all that that is an experience that you only gain by 01:05:06.519 --> 01:05:08.679 SPEAKER_04: Being a contractor for smud 01:05:09.039 --> 01:05:14.760 Unknown: So I think that limits the number of folks who can bid into the smud work with any hope of getting to work 01:05:14.840 --> 01:05:19.619 SPEAKER_04: Because they just don't have any experience and so it makes sense over time to see 01:05:20.280 --> 01:05:25.440 Unknown: ways to include other contractors in smaller roles so that they begin to be part of 01:05:25.880 --> 01:05:28.000 SPEAKER_04: I'm not sure that quite the right analogy 01:05:28.440 --> 01:05:34.159 Unknown: But sort of the triple-a league that can then grow into a larger role with smud over time 01:05:35.200 --> 01:05:37.280 SPEAKER_04: But that's a happy to support this 01:05:38.400 --> 01:05:42.400 Unknown: To the contractors who do regularly win our work, and I know we have a couple of them here tonight 01:05:44.800 --> 01:05:51.960 Unknown: It's a credit to you. Thank you for doing such great work and that smud staff values the things that you do glad you're back. Thanks 01:05:55.440 --> 01:05:58.039 SPEAKER_03: Perfect. Um my just a couple of thoughts 01:06:00.519 --> 01:06:06.599 Unknown: I'm happy with going with the staff recommendation. We've certainly been talking to people about their perspectives on this 01:06:08.639 --> 01:06:11.760 SPEAKER_03: Part of me thinks to know we part of this is fairness 01:06:11.760 --> 01:06:15.679 SPEAKER_03: We this process has been going on for probably almost a year now 01:06:16.400 --> 01:06:20.760 SPEAKER_03: At smud and we set out the rules for these contractors to bid on 01:06:21.200 --> 01:06:26.600 SPEAKER_03: And I think we were to change that that would not be fair to them right if at some point 01:06:26.600 --> 01:06:28.600 SPEAKER_03: We want to have some different labor 01:06:29.560 --> 01:06:34.520 Unknown: Pieces in these contracts and that's something that needs to be said early and up front so they can take that into account 01:06:35.360 --> 01:06:40.320 SPEAKER_03: I like to see in terms of some of our work a little bit more emphasis on price 01:06:42.680 --> 01:06:49.040 SPEAKER_03: Especially on sort of a general general construction we have situations where the technical ability when you have a high-pressure oil 01:06:49.519 --> 01:06:54.599 SPEAKER_03: Line that needs to be spliced that made that technical aspect is of more importance 01:06:55.119 --> 01:07:00.159 SPEAKER_03: So I would ask staff to think about that and and when we go out to do this in the future 01:07:01.079 --> 01:07:03.219 SPEAKER_03: and then regarding you know, one of my 01:07:03.920 --> 01:07:09.079 SPEAKER_03: early concerns was just that the 250 for me was just too big of 01:07:09.679 --> 01:07:11.679 SPEAKER_03: What I was saying blank check to give staff 01:07:12.880 --> 01:07:15.759 SPEAKER_03: The three years and 150 I thought was far more reasonable 01:07:15.760 --> 01:07:18.840 SPEAKER_03: I do think there's some room for 01:07:19.800 --> 01:07:23.080 SPEAKER_03: either the committee or the pre brief level to be doing some 01:07:23.760 --> 01:07:27.580 SPEAKER_03: Scouting ahead of what's on our work plan and what contracts are coming 01:07:28.880 --> 01:07:34.800 SPEAKER_03: Because I got the pre brief the week before and you know, the this basically was baked by the time it gets to a pre brief 01:07:35.480 --> 01:07:40.560 SPEAKER_03: And I could have told the staff. Yeah, we need to look at that one a little bit more closely months ago 01:07:41.360 --> 01:07:43.599 SPEAKER_03: So that's just I think something more on our on our 01:07:44.159 --> 01:07:51.000 SPEAKER_03: policy operation side for me as a board member to think about and be on top of as a chair of this committee as well 01:07:51.880 --> 01:07:53.880 SPEAKER_03: and the last thing I would say 01:07:54.119 --> 01:07:59.360 SPEAKER_03: regarding directors Chris comments as the idea sort of like bidding and bidding training right as as a 01:08:00.400 --> 01:08:02.079 SPEAKER_03: somebody who 01:08:02.079 --> 01:08:09.759 SPEAKER_03: Scored many solicitation over the years, right that I think it's hard sometimes for contractors to understand the importance 01:08:09.920 --> 01:08:12.080 SPEAKER_03: That they write absolutely everything down 01:08:12.720 --> 01:08:14.720 SPEAKER_03: in these 01:08:14.760 --> 01:08:22.440 SPEAKER_03: In these documents that they're submitting to us right when I hear oh somebody didn't phase their face stuff correctly 01:08:22.440 --> 01:08:26.239 SPEAKER_03: It's like well, they certainly will know how if they're a professional contractor, they know how to phase a project 01:08:26.239 --> 01:08:28.239 SPEAKER_03: But they clearly didn't write it down 01:08:29.360 --> 01:08:31.520 SPEAKER_03: Properly in the documents and it cost them points 01:08:31.520 --> 01:08:36.079 SPEAKER_03: So I do think that there's an opportunity to to help make sure that everybody is 01:08:36.559 --> 01:08:41.559 SPEAKER_03: Having the best opportunity to understand what they're what that written requirements are when they're applying 01:08:43.119 --> 01:08:45.519 SPEAKER_03: So that's all my thoughts and I would just think I would think 01:08:46.399 --> 01:08:50.399 SPEAKER_03: Our friends who are in the audience for coming. I apologize for the multiple rounds 01:08:50.399 --> 01:08:55.600 SPEAKER_03: This is very unusual on my tenures on the board to have to have this much discussion on one of our contracts 01:08:56.399 --> 01:08:59.399 SPEAKER_03: But I'm certainly supportive of the staff recommendation 01:09:00.039 --> 01:09:02.920 SPEAKER_03: And is there any objection putting this on the consent calendar? 01:09:02.920 --> 01:09:09.819 SPEAKER_03: Currently right now it's on discussion calendar. I think we need to keep it there. It's one director's not present 01:09:10.039 --> 01:09:11.880 SPEAKER_08: So we can do 01:09:11.880 --> 01:09:16.159 Unknown: You know the very short presentation and open it up to staff if that works 01:09:17.119 --> 01:09:19.800 Unknown: Okay, if you feel like we should give on discussion then we will do that 01:09:21.520 --> 01:09:23.920 Unknown: Is there a reason I don't understand 01:09:26.279 --> 01:09:31.440 Unknown: The way it's noticed currently there's also it's too late to re-notice it 01:09:32.920 --> 01:09:36.480 SPEAKER_08: I believe so and there is also one director that's not present at this meeting 01:09:37.480 --> 01:09:43.079 Unknown: And if you put it we put on the consent calendar, it's it's it's combined with all the other items. So I 01:09:43.960 --> 01:09:45.960 SPEAKER_08: Would keep it on the discussion calendar 01:09:48.800 --> 01:09:55.319 Unknown: Good what else the 17th? Yeah, it's pretty close to be not really an emergency to start changing the agenda 01:09:57.079 --> 01:09:59.079 Unknown: Okay, yeah, let's leave it on the 01:09:59.800 --> 01:10:02.720 SPEAKER_03: Let's leave it on the discussion callers is better. It's a safer route 01:10:04.000 --> 01:10:07.880 Unknown: Okay, that's more appropriate. Okay. Thank you guys 01:10:08.840 --> 01:10:11.559 SPEAKER_03: Was there any sorry? Was there any public comment on that? 01:10:16.479 --> 01:10:22.800 Unknown: Perfect and then Joe, thank you for that that we'll see you again very briefly on Thursday 01:10:24.399 --> 01:10:26.039 Unknown: There we go 01:10:26.039 --> 01:10:33.760 SPEAKER_03: And then what else so let's jump over to item number seven and we have the board work plan and then we pull those slides up 01:10:35.359 --> 01:10:42.199 Unknown: And I believe present tomorrow will you take us through that? Yeah, so I won't go through the entire work plan 01:10:42.199 --> 01:10:45.600 SPEAKER_11: Obviously tomorrow we've got the zero carbon plan update 01:10:47.000 --> 01:10:49.519 SPEAKER_11: So I'm just gonna do a few highlights and this only goes through 01:10:50.480 --> 01:10:57.280 SPEAKER_11: October anyway, so and then we will have a discussion in the strategic 01:10:59.520 --> 01:11:01.520 Unknown: Strategic development 01:11:01.880 --> 01:11:09.880 Unknown: Committee on the on the six on our integrated distributed resource plan. I'm gonna do a budget preview on the 13th 01:11:11.840 --> 01:11:15.680 Unknown: We're gonna have a integrated graded resource plan 01:11:16.640 --> 01:11:17.960 SPEAKER_11: kickoff 01:11:18.039 --> 01:11:20.140 SPEAKER_11: on the 14th and 01:11:21.199 --> 01:11:27.159 SPEAKER_11: Is it correct to say that that will also be starting to talk about our large load? 01:11:27.159 --> 01:11:29.640 SPEAKER_11: That's those are gonna that's an integrated 01:11:31.279 --> 01:11:35.399 SPEAKER_11: Discussion with yeah, Laura Angway, I'm CEO general manager 01:11:35.399 --> 01:11:40.480 SPEAKER_07: And we had originally planned to bring the large loan policy back to the board 01:11:40.959 --> 01:11:44.279 Unknown: This month as we started to do that communication 01:11:44.279 --> 01:11:50.719 SPEAKER_07: It became really clear that it should be part that outward communication should be combined with the integrated resources plan 01:11:50.839 --> 01:11:55.559 SPEAKER_07: That there's an implication there in terms of load and what that what that means to our plan 01:11:55.639 --> 01:12:00.319 SPEAKER_07: So we're combining the out the community outreach, but we'll bring the policy back to the board 01:12:00.319 --> 01:12:03.559 SPEAKER_07: I believe it's in March of when we're done with the IRP 01:12:04.399 --> 01:12:06.399 SPEAKER_11: you know, I think it's 01:12:07.239 --> 01:12:10.679 SPEAKER_11: I'm glad that we're including that because they're starting to be 01:12:12.359 --> 01:12:19.279 SPEAKER_11: Discussion out in the public about okay, where are you gonna get all electricity? How's it gonna affect or you know our goals? 01:12:19.719 --> 01:12:21.359 Unknown: so 01:12:21.359 --> 01:12:23.199 Unknown: appreciate that and then 01:12:23.199 --> 01:12:25.799 SPEAKER_11: finally, I wanted to point out that the 01:12:26.479 --> 01:12:28.799 SPEAKER_11: community workforce agreements are on the 01:12:29.799 --> 01:12:31.799 SPEAKER_11: parking lot and 01:12:32.199 --> 01:12:39.560 Unknown: We will be doing I guess really talking about that under the kirth regime which will be coming up in 01:12:40.840 --> 01:12:43.840 SPEAKER_11: 2027 so unless there's a coup 01:12:45.480 --> 01:12:52.279 Unknown: So that's that's all I have does anybody have anything that they would like to see on them 01:12:53.400 --> 01:12:55.119 Unknown: work plan 01:12:55.119 --> 01:12:57.039 Unknown: Yeah, you know 01:12:57.039 --> 01:13:01.119 Unknown: I've been harping at our general manager about this for quite some time 01:13:01.720 --> 01:13:04.399 SPEAKER_01: but I don't know if some of you were also 01:13:05.279 --> 01:13:07.680 SPEAKER_01: hearing from your constituents about 01:13:08.519 --> 01:13:10.519 SPEAKER_01: balcony solar and 01:13:11.680 --> 01:13:15.760 SPEAKER_01: You know, the product is out there people are buying it and 01:13:16.640 --> 01:13:24.319 SPEAKER_01: I know that it's not UL certified so you could burn up your house. Just keep that in mind 01:13:25.319 --> 01:13:28.000 SPEAKER_01: But you know when I've talked to 01:13:29.119 --> 01:13:32.840 Unknown: You know folks they say well, you know 01:13:34.159 --> 01:13:40.399 Unknown: We we might be able to maybe work with the company and help them get UL 01:13:40.960 --> 01:13:45.399 SPEAKER_01: Certified which you know would be nice. I just really worry about 01:13:46.439 --> 01:13:49.159 Unknown: folks going to Home Depot and 01:13:49.599 --> 01:13:51.599 SPEAKER_01: buying these 01:13:51.679 --> 01:13:53.159 SPEAKER_01: balcony solar 01:13:53.199 --> 01:13:54.720 SPEAKER_01: panels and 01:13:54.720 --> 01:13:56.880 Unknown: Plugging them in and causing damage 01:13:57.399 --> 01:14:00.880 SPEAKER_01: so I would like for us to talk about this at a 01:14:01.639 --> 01:14:05.559 SPEAKER_01: Meeting or to get an update on what it's about 01:14:05.720 --> 01:14:12.199 SPEAKER_01: So I can ask people to tune in and listen to what's really the case about 01:14:13.239 --> 01:14:15.599 Unknown: this solar option 01:14:15.880 --> 01:14:17.880 Unknown: We 01:14:17.880 --> 01:14:22.880 Unknown: Do have a board memo that's being routed right now that's going to the board about balcony solar 01:14:22.880 --> 01:14:28.280 SPEAKER_07: But I'm hearing that you're wanting a discussion item. I would like to have a discussion 01:14:28.280 --> 01:14:28.640 SPEAKER_01: I mean 01:14:28.640 --> 01:14:35.160 SPEAKER_01: I'm more than happy to to read the memo when it comes and then decide if if that would be easier for you 01:14:35.520 --> 01:14:39.640 Unknown: But people are talking about this and I would agree though 01:14:39.640 --> 01:14:42.600 SPEAKER_03: I think I think the point of it is to have it a public discussion 01:14:43.240 --> 01:14:45.840 Unknown: About it so people can can hear from 01:14:46.560 --> 01:14:48.000 SPEAKER_03: experts 01:14:48.000 --> 01:14:49.680 Unknown: about it 01:14:49.680 --> 01:14:54.039 Unknown: Yeah, maybe we can put that you know on strategy or something 01:14:54.320 --> 01:15:00.079 SPEAKER_01: Certainly, I'd be happy to have it in policy, but I I want us to talk about it 01:15:02.000 --> 01:15:05.579 Unknown: So I have one but I see it director Samburn's hands up 01:15:05.739 --> 01:15:07.739 Unknown: Thank 01:15:07.779 --> 01:15:14.420 Unknown: You chair and I do want to play off that that those balcony solar bill is on the governor's desk and my understanding is 01:15:14.739 --> 01:15:17.939 SPEAKER_05: That it does require you well certification 01:15:19.300 --> 01:15:21.300 Unknown: For future sales if it's as it's signed 01:15:22.340 --> 01:15:26.720 SPEAKER_05: But I find it super interesting too, and I'd love to have a presentation on so I support that 01:15:26.720 --> 01:15:32.300 SPEAKER_05: I did also want to bring up that I've been hearing from constituents about floating solar and 01:15:32.940 --> 01:15:36.699 SPEAKER_05: There's a lot of new creative ways to do solar to really stop 01:15:37.060 --> 01:15:42.800 SPEAKER_05: Evaporation and as the climate heats up that could save us water or hydro and we do have 01:15:43.860 --> 01:15:50.680 SPEAKER_05: facilities where we could maybe use that so I'd like to learn more about floating solar as well and even 01:15:51.340 --> 01:15:55.420 SPEAKER_05: one just saw countries putting it in between train trucks and 01:15:56.500 --> 01:16:02.020 SPEAKER_05: Using that as a leader so anyway any creep maybe it's creative solar 01:16:02.100 --> 01:16:04.100 SPEAKER_05: I don't know 01:16:04.260 --> 01:16:08.700 SPEAKER_05: But places that we can use a floating solar for sure I would love to hear about 01:16:08.780 --> 01:16:13.140 SPEAKER_05: I think that's a success with the canal solar is Turlock to nearby so 01:16:18.780 --> 01:16:20.780 SPEAKER_03: Anything else on 01:16:21.020 --> 01:16:24.420 Unknown: Okay, um Mike one of the things there was 01:16:25.180 --> 01:16:26.020 SPEAKER_03: a 01:16:26.020 --> 01:16:31.140 SPEAKER_03: Piece in the media today that I ran across this morning and then it was in our news clips 01:16:31.140 --> 01:16:38.180 SPEAKER_03: And then I got emails about it this afternoon talking about the large loads and some of these projects that 01:16:38.860 --> 01:16:40.860 Unknown: are in discussion 01:16:41.780 --> 01:16:43.140 SPEAKER_03: and 01:16:43.140 --> 01:16:49.020 SPEAKER_03: We talked about it a little bit in August that we've said publicly we have a handful of projects that 01:16:49.420 --> 01:16:52.060 Unknown: People are all looking at but I don't but they're not 01:16:52.580 --> 01:16:59.740 Unknown: Very far along in the process right and then and so I feel like there's maybe some room to have some kind of public 01:17:00.300 --> 01:17:02.980 Unknown: We have a public web page, which is which is good 01:17:02.980 --> 01:17:09.020 SPEAKER_03: But maybe there's room to have a public discussion or a public workshop series, so there's so many questions 01:17:10.140 --> 01:17:16.980 SPEAKER_03: But I don't know if anybody else thinks that that was potentially a good idea if you've gotten concerns from your constituents 01:17:22.060 --> 01:17:26.020 Unknown: Well, I think that we're going to have the discussion 01:17:29.820 --> 01:17:31.820 SPEAKER_11: About a large-loop policy 01:17:32.740 --> 01:17:34.740 Unknown: You know, I'm you know 01:17:35.100 --> 01:17:36.380 Unknown: Of course that's in March 01:17:36.380 --> 01:17:43.060 SPEAKER_11: But we have had discussions where we've made it pretty clear what our expectations are as far as and you know 01:17:43.060 --> 01:17:49.020 SPEAKER_11: It's we haven't had any formal direction to staff, but I didn't hear anybody say that we shouldn't 01:17:52.060 --> 01:17:54.900 Unknown: That we shouldn't make sure that our customers are 01:17:55.780 --> 01:18:00.580 SPEAKER_11: Protected from rate hikes and stranded assets and things like that. I think it's I think we've made our 01:18:01.340 --> 01:18:03.100 SPEAKER_11: made our 01:18:03.100 --> 01:18:05.100 SPEAKER_11: intentions or our 01:18:05.700 --> 01:18:09.060 SPEAKER_11: What the board's thoughts on it have been pretty clear and 01:18:09.820 --> 01:18:14.080 SPEAKER_11: So I don't know that having an interim meeting is important. I 01:18:14.940 --> 01:18:16.940 SPEAKER_11: wouldn't but I 01:18:17.980 --> 01:18:20.500 SPEAKER_11: Think that's already I agree with you 01:18:20.579 --> 01:18:27.539 SPEAKER_03: I think maybe my concerns not necessarily at the board level. It's more our public out our public. Yeah 01:18:28.100 --> 01:18:30.100 SPEAKER_03: Yeah, yeah 01:18:30.979 --> 01:18:32.619 SPEAKER_03: Laura Angway 01:18:32.619 --> 01:18:35.619 SPEAKER_07: CEO general manager we are doing the public outreach 01:18:35.619 --> 01:18:41.380 SPEAKER_07: So as we reach out on the IRP process we will be including the large loads as a discussion item 01:18:41.619 --> 01:18:48.500 SPEAKER_07: Within that community outreach, so that'll start I think it's October and it'll run through February of next year 01:18:48.500 --> 01:18:54.220 SPEAKER_07: And so we will be doing a lot of public outreach with that and then bringing the information back to the board in March 01:18:54.220 --> 01:18:56.220 SPEAKER_07: Is the idea? 01:18:56.220 --> 01:19:04.579 SPEAKER_11: Doing public outreach on large large loads and IDRP together. Yeah, and IRP together and then to your point 01:19:05.300 --> 01:19:06.899 SPEAKER_07: President tomorrow 01:19:06.899 --> 01:19:12.020 SPEAKER_07: We have heard very clearly from the board your desire to make sure that our customers are kept whole 01:19:12.140 --> 01:19:18.300 SPEAKER_07: That our existing customers are not paying for large loads that are not put at risk because of it in terms of a financial risk 01:19:18.659 --> 01:19:20.659 SPEAKER_07: And so we do have the ability to 01:19:21.260 --> 01:19:24.020 SPEAKER_07: Negotiate custom tailored agreements in the meantime 01:19:24.020 --> 01:19:30.699 SPEAKER_07: So in the absence of having a policy we have a process in place that allows us to negotiate those custom tailored rates 01:19:30.859 --> 01:19:36.859 SPEAKER_07: Which are then approved by the board it requires board approval for those rates and so we would be bringing those those back to 01:19:36.859 --> 01:19:40.899 SPEAKER_07: The board so you will be able to see all of that if those move forward. Thank you 01:19:41.619 --> 01:19:46.619 Unknown: So just to be clear. We don't see the board 01:19:47.340 --> 01:19:51.619 SPEAKER_01: Voting on a large load policy until next March 01:19:52.500 --> 01:19:54.500 Unknown: Okay 01:19:57.539 --> 01:20:01.099 SPEAKER_03: Then the only other thing I wanted to point out 01:20:02.500 --> 01:20:08.939 SPEAKER_03: Potentially director kirth and I are going to be at RE plus the energy conference during the budget meetings 01:20:08.939 --> 01:20:12.079 SPEAKER_03: And so we should at least take a look 01:20:12.600 --> 01:20:19.159 SPEAKER_03: If we might swap those meetings around to one of the committee meetings the week before on the work plan 01:20:19.840 --> 01:20:25.720 SPEAKER_03: Just just a heads up. I haven't gone and I just glanced at the calendar notice the two are overlapping 01:20:28.359 --> 01:20:31.260 Unknown: That's all I have okay, I'm sorry didn't 01:20:31.880 --> 01:20:36.739 SPEAKER_02: Actually, I didn't follow. I think we probably should swap the budget meeting 01:20:37.380 --> 01:20:42.800 Unknown: With one of the other committee meetings so all the board members can be that you're talking about in November 01:20:43.500 --> 01:20:45.500 SPEAKER_11: I don't have that but 01:20:48.019 --> 01:20:54.219 SPEAKER_11: Is there any reason from staff perspective or how do you want to handle that because I don't want to just 01:20:54.859 --> 01:20:58.460 SPEAKER_11: Say yeah, let's do it and find out that it doesn't work for 01:20:59.340 --> 01:21:06.539 SPEAKER_11: Staff or doesn't solve the problem of board members, but I'm happy to do do that. So work with 01:21:07.099 --> 01:21:09.819 SPEAKER_11: Laura to make it was take a lot of change 01:21:09.819 --> 01:21:16.239 SPEAKER_11: Okay, I don't want right do listen what the two members of the finance committee to not be at the budget meeting 01:21:16.779 --> 01:21:18.779 Unknown: Okay 01:21:20.460 --> 01:21:22.460 Unknown: All right 01:21:27.099 --> 01:21:32.859 Unknown: All right, I've any public anybody have anything else any public comments on the work plan I 01:21:32.859 --> 01:21:37.319 Unknown: Do not see any public comment now, okay? 01:21:39.779 --> 01:21:44.799 Unknown: All right, then then we'll wrap up just the final reminder written comments received on items 01:21:45.739 --> 01:21:50.460 SPEAKER_03: Not on the agenda will be included in the record if received within two hours of the end of the meeting 01:21:50.659 --> 01:21:53.539 SPEAKER_03: Then the last item is to write a summary of committee direction 01:21:56.139 --> 01:22:00.979 SPEAKER_08: I have staff will add the discussion of balcony solar floating solar another 01:22:01.619 --> 01:22:05.379 SPEAKER_08: Solar technologies on the parking lot for future discussion 01:22:05.379 --> 01:22:10.179 SPEAKER_08: And we'll look into moving the better discussion to another week 01:22:12.779 --> 01:22:17.939 Unknown: Okay, anything else all right, thank you everybody we will see you tomorrow