Board Meeting Jun 18 2026

Unknown: f

Unknown: We'll do the 5 second check-in.

Unknown: Oh, we can't do it yet. It's not sick.

SPEAKER_13: Oh no, my watch is fast.

Unknown: Yeah, I want to get away from you guys.

Unknown: I'll save you behind when I get away from you.

Unknown: We'll do the 5 second check-in.

Unknown: Okay, 5 seconds here.

Unknown: Good evening, and I'll call to order the SMUD Board of Directors meeting of June 18, 2026.

SPEAKER_13: Please join me in the pledge of the flag.

Unknown: I pledge allegiance to the flag of the United States of America and to the republic for which it stands, one nation under God, indivisible, with liberty and justice for all.

SPEAKER_07: Thank you.

Unknown: This meeting of the SMUD Board of Directors is recorded with closed captioning.

SPEAKER_13: The recording will be cable cast on Metro Cable Channel 14, the local government affairs channel on the Comcast and DirecTV U-verse cable systems.

SPEAKER_13: The recording will also be video streamed at metro14live.seccounty.gov.

SPEAKER_13: Today's meeting replays Tuesday, June 23 at 9 a.m. and Wednesday, June 24 at 9 a.m. on Metro Cable Channel 14.

SPEAKER_13: Once posted, the recording of this meeting can be viewed on demand at youtube.com slash Metro Cable 14.

SPEAKER_13: Please remember to unmute your microphone when speaking in order that our virtual attendees may hear.

SPEAKER_13: The microphone will display a green indicator light when the mic is on.

SPEAKER_13: Please put all electronic devices in the silent mode while in the auditorium.

SPEAKER_13: For members of the public attending in person who wish to speak at this meeting, please fill out a speaker's request form located on the table outside this room and hand it to SMUD Security.

SPEAKER_13: Members of the public attending this meeting virtually who wish to provide verbal comments during the board meeting may do so by using the raise hand feature in Zoom or pressing star 9 while dialed into the telephone toll-free number at the time public comment is called.

SPEAKER_13: Technical support staff will enable the audio for you when your name is announced during the public comment period.

SPEAKER_13: You may also submit written comments by emailing them to publiccomment at smud.org.

SPEAKER_13: Written comments will not be read into the record but will be provided to the board electronically and placed into the record of the meeting if received within two hours after the meeting ends.

SPEAKER_13: Members may speak to items on the agenda on which the board will take action and may also address the board on other agenda items and items not on the agenda but within our jurisdiction during the general comment period.

SPEAKER_13: This auditorium is equipped with a safety alarm.

SPEAKER_13: If the alarm sounds, please leave in an orderly manner via the exits to the lobby or behind the dais.

SPEAKER_13: Assemble in front of the building and wait to hear the all clear announcement from security before reentering.

SPEAKER_13: Would the Chief Legal Officer please conduct a roll call?

SPEAKER_13: Director Rose?

SPEAKER_06: I'm here.

SPEAKER_13: Director Buettomson?

SPEAKER_06: Present.

SPEAKER_06: Director Fishman?

SPEAKER_06: Here.

SPEAKER_06: Director Herber?

Unknown: Here.

SPEAKER_06: Vice President Kurth?

SPEAKER_06: Here.

SPEAKER_06: Director Sanborn?

SPEAKER_06: Here.

SPEAKER_04: President Tamayo?

SPEAKER_06: Here.

SPEAKER_13: You have a quorum.

Unknown: Thank you.

SPEAKER_13: Oh, excuse me.

Unknown: Next is our 2030 Climate Action Tip and Director Herber will share that with us.

Unknown: Thank you, Mr. President.

SPEAKER_04: SMUD is working towards 100% zero carbon by 2030.

SPEAKER_04: There's lots of ways you can help us lead the global clean power city movement.

Unknown: As summer begins, and that means time of day rates are here through September 30th, to save energy and money, you can focus on reducing your energy use from 5 p.m. to 8 p.m.

SPEAKER_04: Set your thermostat to 78 degrees or higher, close blinds, and run large appliances like dishwashers and laundry machines in the morning or late evening.

Unknown: Join the charge and visit cleanpowercity.com.

SPEAKER_04: Dot org.

Unknown: Thank you, Director Herber.

SPEAKER_13: Now if there are no corrections, changes or additions, I'll entertain a motion to approve the agenda.

SPEAKER_20: Motion to approve.

Unknown: Second.

Unknown: That motion was moved by Director Sanborn and seconded by Director Fishman.

SPEAKER_13: Directors, please vote.

Unknown: The agenda is approved with all directors voting yes.

Unknown: Now we'll move on to our committee chair reports.

SPEAKER_13: Director Sanborn, chair of the Strategic Development Committee, will give the report of the June 9, 2026 meeting.

Unknown: Thank you, President Smiocco.

Unknown: The Strategic Development Committee met on Tuesday, June 9, last week.

SPEAKER_20: There was one informational item, which was to provide the board with presentations by external and internal experts regarding resource adequacy and summer readiness for 2026.

SPEAKER_20: Last summer, there were fewer extreme operating days compared to recent years.

Unknown: The generation and transmission systems were healthy and there were no significant forced outages.

SPEAKER_20: SMUD's Director of Energy, Trading and Contracts, John Olson, shared that for 2026, bank and SMUD readiness assessments are in what they call cautiously optimistic range.

SPEAKER_20: Resource adequacy, pricing, and market energy prices continue to ease year over year.

Unknown: We will utilize financial hedges to address forward-looking energy imbalances, to provide price protection and leverage the Kaiso Energy Imbalance Market and Bilateral Market to enhance reliability and generate cost savings.

SPEAKER_20: Overall, the 2026 outlook again is cautiously optimistic with healthy generation and transmission assets.

SPEAKER_20: Key risk factors to watch for include wildfire threats across the west-wide transmission system and the potential heat events in the region.

SPEAKER_20: This concludes my report.

Unknown: Thank you.

SPEAKER_13: And now, Director Herber, Chair of the Policy Committee, will give the report of the June 10, 2026 meeting.

SPEAKER_13: Thank you, Mr. President.

SPEAKER_04: The Policy Committee met on Wednesday, June 10, 2026.

SPEAKER_04: There were three discussion items and one informational item.

Unknown: The first discussion item was to discuss the monitoring report for 2025 Strategic Direction SD4, which relates to reliability.

SPEAKER_04: SMUD was in compliance for both generation and transmission availability.

SPEAKER_04: SMUD's generation and transmission system met customers' energy needs 100 percent of the time through a combination of SMUD generation and purchase power.

SPEAKER_04: The transmission availability was at 100 percent for the year.

SPEAKER_04: SMUD was in compliance for both system average interruption duration index, or SADI, which measures average outage frequency, and system average interruption frequency index, or SAVI, which measures average outage duration.

SPEAKER_04: This is item number five on tonight's consent calendar.

Unknown: The second discussion item was to approve proposed revisions to Strategic Direction 4, which is on reliability, and it sets reliability standards for electric service, including measurable targets for SAVI and SADI.

SPEAKER_04: In 2009, SD4 was modified to update targets to distinguish between periods, including and excluding major events.

SPEAKER_04: Major events are defined as events caused by earthquake, fire, or severe storms that result in a government-declared state of emergency.

SPEAKER_04: Without a state of emergency, natural disasters are excluded until they affect more than 15 percent of system facilities or 10 percent of customers, whichever is less.

Unknown: Considering challenges posed by climate change, staff reviewed our reliability metrics and benchmarked them against peer utilities facing similar conditions.

Unknown: Staff proposed that the SADI target, including major events, be updated based on the 10-year average from 2016 to 2025.

SPEAKER_04: This revision allows us to set more realistic expectations while continuing to drive improvements in grid resilience and customer service.

SPEAKER_04: This is item number six on tonight's consent calendar.

Unknown: The third discussion item was to allow the board of directors and executive staff an opportunity to discuss and evaluate existing policies.

Unknown: We reviewed Board Linkage 6, Evaluation of the CEO's Performance, Board Linkage 7, Delegation to the CEO, and Board Linkage 8, Delegation to the CEO with respect to procurement.

SPEAKER_04: The first informational item was a presentation on the Board Work Plan. This concludes my report.

SPEAKER_13: Thank you, Director Herber. And now, Director Rose, chair of the Finance and Audit Committee, will give the report of the June 16, 2026 meeting.

Unknown: Thank you, President Spi

SPEAKER_12: The Finance and Audit Committee met on Tuesday, June 16, 2026. There were three discussion items and two informational items.

SPEAKER_12: The first discussion item was to authorize the chief executive officer and general manager to negotiate and award a contract to NV5 Geospatial Inc. for LIDAR Remote Sensing and Data Analytics Professional Services for a five-year term from June 19, 2026 to June 18, 2031, not to exceed $11 million.

SPEAKER_12: This is item number seven on tonight's consent calendar.

Unknown: The second discussion item was to authorize the CEO and general manager to negotiate and award contracts to AECOM Technical Services, Kleinfelder, Geo Syntech Consultants, Parsons Transportation Group, and Brown and Caldwell for on-call remediation and environmental services for the five-year period from July 1, 2026 to June 30, 2031,

SPEAKER_12: with one optional three-year extension for a total amount not to exceed $35 million across the contracts.

SPEAKER_12: This is item number eight on the consent calendar.

Unknown: The third discussion item was to approve the issuance of SMUD's 2026 Series P Electric Revenue Bonds and SMUD's 2026 Series G Subordinated Electric Revenue Bonds and authorize the distribution of the preliminary official statement.

SPEAKER_12: This item also authorized the CEO and general manager to execute the necessary documents to complete the transaction, including the bond, purchase agreement, or agreements.

SPEAKER_12: This is item number 10 and on tonight's discussion calendar.

Unknown: The first informational item was to provide the board with the quarterly procurement report for the first quarter of 2026.

SPEAKER_12: And the second informational item was to provide the board with SMUD's financial results from the four-month period ending April 30, 2026.

SPEAKER_12: And a summary of SMUD's current power supply costs.

SPEAKER_12: And this concludes the report.

SPEAKER_12: Thank you.

Unknown: Thank you, Director Rose and now Director Bowie-Thompson, Chair of the Energy Resources and Customer Services Committee, will give the report of the June 17, 2026 meeting.

SPEAKER_13: Thank you.

SPEAKER_18: There was one discussion item and one informational item.

SPEAKER_18: The discussion item was an update on the proposed adoption of SMUD's 2026 utility security plan, which is required by the California Public Utilities Commission for certain covered distribution assets that serve critical public safety and community facilities.

SPEAKER_18: The CPUC requires utilities to complete a five-year security planning process that includes identifying covered facilities, assessing risks, developing and validating a security plan, and presenting it to the board for adoption.

SPEAKER_18: An independent third-party review was completed by ARCHER, which recommended onsite reviews of each covered asset and additional measures to help SMUD deter, detect, delay, assess, communicate, and respond to physical security threats.

SPEAKER_18: The Sacramento County Sheriff's Department Security Service Division reviewed and validated the plan, confirming it adequately addresses the identified security requirements.

SPEAKER_18: This is item number nine on tonight's consent calendar.

SPEAKER_18: The informational item was a presentation by our Chief Financial Officer Scott Martin on large load policies and considerations for cost recovery.

SPEAKER_18: The presentation provided background on SMUD's current approach to large loads and reviewed both local jurisdiction process and SMUD's process for evaluating and serving these types of customers.

SPEAKER_18: The presentation noted that SMUD has a legal obligation to serve, that some customers are currently served through economic development rates or customer tailored agreements.

SPEAKER_18: Existing tariffs, rules, and rate structures for standard loads do not fully address customers with large loads of 50 megawatts or more.

SPEAKER_18: And key elements for those customers, including rate schedules, infrastructure costs, treatment, and non-standard service needs, are still to be determined.

SPEAKER_18: Staff will bring a proposed large load policy that protects existing customers from increased costs related to serving large load customers back to the board for further discussion and consideration by the end of the year.

SPEAKER_18: This concludes my report.

Unknown: Thank you, Director Buie-Thompson.

SPEAKER_13: At this time, we'll take comments from the public on the consent calendar.

SPEAKER_13: Do we have any requests to speak on that item?

Unknown: I do not have any requests on the consent calendar now.

SPEAKER_13: Okay, thank you.

SPEAKER_13: So our consent calendar consists of the following items.

SPEAKER_13: Item number three is to approve board member compensation for service rendered at the request of the board for the period of May 16, 2026 through June 15, 2026.

SPEAKER_13: Item number four is the approval of the minutes of the meeting of May 21, 2026.

SPEAKER_13: Items number five and number six were reviewed at the policy committee of June 10, 2026.

SPEAKER_13: Items number seven and number eight were reviewed at the finance and audit committee of June 16, 2026.

SPEAKER_13: Item number nine was reviewed at the ERCS committee of June 17, 2026.

SPEAKER_13: If there are no corrections, changes, or additions, I'll entertain a motion to approve the consent calendar.

Unknown: So moved.

Unknown: Second.

Unknown: Okay, moved by Director Herbers, seconded by Director Bowie-Thompson.

SPEAKER_13: Directors, please vote.

Unknown: The consent calendar is approved with all directors voting yes.

Unknown: All right.

Unknown: Thank you.

SPEAKER_13: Now we'll move on to our discussion calendar.

SPEAKER_13: Item number 10 is to approve the issuance of SMUD 2026 Series P electric revenue bonds and SMUD 2026 Series G subordinated electric revenue bonds,

SPEAKER_13: authorize the distribution of the preliminary official statement,

SPEAKER_13: and authorize the CEO and general manager to execute documents necessary to complete the transaction or transactions,

SPEAKER_13: including the bond purchase agreement or agreements.

SPEAKER_13: And our presenter is Jennifer Restivo, Director of Treasury and Revenue Strategy.

SPEAKER_13: Take it away, Jennifer.

Unknown: Thank you, President, to my own.

SPEAKER_19: Thank you, Board members.

SPEAKER_19: I'm here tonight to ask for Board approval to issue $250 million in green bonds.

Unknown: So this will fund our capital needs, boost our liquidity, and refund $50 million of green commercial paper that we issued in May.

Unknown: So we'll be issuing $125 million in put bonds and $125 million in long-term fixed rate bonds.

Unknown: This financing is part of our broader approach to make sure that we have the resources we need to invest in the system,

SPEAKER_19: serve our customers reliably, and maintain financial strength over time.

Unknown: So reliable service depends on having enough cash to manage our obligations,

SPEAKER_19: and so we manage that liquidity through revenue from our customers,

Unknown: discipline capital planning, and also accessing the capital markets through issuing debt.

Unknown: So our goal is to maintain at least 150 days cash, which helps us stay financially flexible and prepared for changing conditions.

Unknown: We use both short-term and long-term borrowing as part of our balanced financial strategy.

SPEAKER_19: Short-term borrowing gives us the opportunity to get money quickly if we need it when timing is important,

SPEAKER_19: and long-term borrowing allows us to match that payment, repayment of that debt with the long-lived assets that we're borrowing for,

SPEAKER_19: which is how customers benefit from them.

Unknown: So we're proposing to do both the fixed rate and put bonds because each serves a different purpose in our overall financial strategy.

SPEAKER_19: The put bonds give us a lower borrowing cost and add flexibility for this.

SPEAKER_19: They can be a good fit when we want to take advantage of current market conditions.

SPEAKER_19: They do introduce future refinancing risk, which we manage carefully,

SPEAKER_19: and we use the subordinate lien for the put bonds because it gives us clarity for a more complex step.

Unknown: The fixed rate bonds give us long-term certainty and predictable debt service.

SPEAKER_19: They lock in our current rates and reduce our exposure to future market changes,

SPEAKER_19: and they're similar to a mortgage in that the payment is level over time.

Unknown: And the senior lien is for the fixed rate bonds because those are simpler and minimize interest expense.

Unknown: So this issuance is consistent with our financial strategy and our long-term approach to responsible capital planning.

Unknown: So our target remains to fund approximately 60% of our capital through cash from our customers and 40% through borrowing.

SPEAKER_19: So we've evaluated the impact of this transaction on our budget.

SPEAKER_19: We had assumed $260 million of borrowing.

SPEAKER_19: We have budget authorization to do up to $400 million.

SPEAKER_19: This transaction will be $250 million, and this will reimburse capital, prior capital spending,

SPEAKER_19: and gives us some flexibility in the timing in which we do our bond issuances in 2027.

Unknown: So as we always talk about, strong credit ratings are very important when we need to access the credit markets,

SPEAKER_19: and we were just taken off of negative watch from Standard & Poor's, which is a very positive sign for SMUD.

Unknown: And our double A rating definitely helps keep our borrowing costs lower and supports our continued access to markets.

Unknown: And maintaining strong credit is a really important part of protecting our customer value and keeping our financing costs as low as possible.

Unknown: So I think everyone's aware the market's pretty volatile right now,

SPEAKER_19: and so because of that, we want to move forward now to secure the financing before conditions change even more.

Unknown: This will help us lock in those rates.

SPEAKER_19: We're continuing to monitor pricing daily, so we do have some flexibility in the timing of when this transaction will close,

SPEAKER_19: and we do the pricing based on that.

SPEAKER_19: The good news is total interest cost for this transaction is currently based on current market conditions just under 3%, which is really good.

SPEAKER_19: And the issuance cost is about $1 million, which is less than we have budgeted.

SPEAKER_19: So the board has reviewed and been provided the official statement and related bond documents.

SPEAKER_19: There are some amendments in those documents.

SPEAKER_19: Those have been approved by all existing bondholders, and they are beneficial to SMUD.

Unknown: And board approval today will help us finalize the resolution and complete the transaction.

Unknown: We know that you want to make sure that local investors have an opportunity to invest,

SPEAKER_19: and so we're also making this available to local investors.

SPEAKER_19: They're called retail investors, so individual investors, not large institutions.

SPEAKER_19: It could be SMUD customers, local residents, or anyone with an investment account at a participating firm.

SPEAKER_19: And we have several banks working as underwriters, and we have a selling group as well, so that broadens the exposure.

SPEAKER_19: And the retail order period will give priority to California investors.

SPEAKER_19: And so there was a question on Tuesday night when I did this presentation,

SPEAKER_19: Director Herbert asked how we were going to get the word out on this.

Unknown: And so we will be doing an ENN next week, and we will be doing a news release once the documents are posted to EMA.

Unknown: And underwriters obviously do a lot of outreach because they want to sell all the bonds.

SPEAKER_19: So that will be happening next week.

SPEAKER_19: And so in summary, this financing really helps us maintain our liquidity,

SPEAKER_19: supports our capital program, and manage our borrowing costs responsibly.

Unknown: And so we're asking for the board to approve so we can move forward under the current conditions

SPEAKER_19: and continue delivering long-term value for our customers.

SPEAKER_19: Any questions?

Unknown: Director Sander.

Unknown: I just wanted to say thank you again, and just love the green bonds, thrilled that we're doing it again,

SPEAKER_20: and that the public's going to be able to participate.

SPEAKER_20: But I do want to clarify for the public, since you said we had that negative rating removed,

SPEAKER_20: it wasn't anything we had done.

SPEAKER_20: It was just that we were in a high-fire area that sort of wants us.

SPEAKER_20: But I just want the public to know we were just kind of lumped in with other entities,

SPEAKER_20: but it wasn't us, and so they took us off the negative rating.

SPEAKER_20: Correct.

SPEAKER_19: S&P put seven California utilities on negative outlook March of last year in response to the fires.

SPEAKER_19: Right.

SPEAKER_19: So we finally got off negative.

Unknown: Anything else from the rest of the board members?

Unknown: Do we have anything, any requests from the public?

SPEAKER_13: I don't have any cards.

SPEAKER_13: No, we do not.

SPEAKER_06: Okay.

SPEAKER_13: Before we move on to vote, I just wanted to mention to the –

SPEAKER_13: because I know we have a number of folks from the public, and this is actually kind of a big thing,

SPEAKER_13: but we discussed this pretty thoroughly a couple of days ago.

SPEAKER_13: That's sort of our normal thing.

SPEAKER_13: We do most of our discussion in committee meetings, so we don't have a lot of discussion here tonight.

SPEAKER_13: So that being said, if there's no further discussion, I'll entertain a motion to approve discussion calendar item 10.

Unknown: So moved.

Unknown: I'll second.

Unknown: Okay.

SPEAKER_13: That's moved by Director Herber, seconded by Director Sanborn.

SPEAKER_13: Directors, please vote.

Unknown: The motion is approved.

SPEAKER_06: Is all directors voting yes?

Unknown: All right.

SPEAKER_13: So at this time, we allow the public to comment on items not on the agenda but within our jurisdiction.

SPEAKER_13: And I do have – I know that we have several people that have requested to speak.

SPEAKER_13: So over the last few days, we've received several written comments from the public related to the proposed Twin Cities solar and battery project,

SPEAKER_13: and received several requests to speak on that topic.

SPEAKER_13: I'd like to thank you, members of the public, for coming here tonight to share your thoughts,

SPEAKER_13: and also those who attended our public scoping meeting last week.

SPEAKER_13: The project isn't on tonight's agenda, so we as the Board can engage in a discussion of the matter.

SPEAKER_13: But I've asked our CEO, Paul Lau, to provide a brief statement about the status of the project

SPEAKER_13: and the process for continued public support.

SPEAKER_13: And following Paul's comment, you'll have an opportunity to speak.

SPEAKER_13: So go ahead, Paul.

Unknown: Thank you so much, President Zavio.

SPEAKER_01: And really, thank you to the members of the community for being here and sharing your thoughts

SPEAKER_01: and concerns about the proposed Twin Cities project with us.

SPEAKER_01: Now, we're very early in the development and the ERR process for this project.

SPEAKER_01: The scoping meeting was held last week.

SPEAKER_01: It's a very early phase of the environmental review process.

SPEAKER_01: Now, it's intended to gather public input about the type of environmental impact that can result from projects

SPEAKER_01: so we can address them in detail in the ERR report.

SPEAKER_01: Now, because we're very early in the development of the process, we don't have answers to everything right now.

SPEAKER_01: So we really value the Heron community, and we're committed to working with you through an open and transparent process.

SPEAKER_01: Now, we've extended the public comment period to October 16, 2026, to allow time for additional public meetings this fall

SPEAKER_01: before the ERR impact report is drafted.

SPEAKER_01: Now, our staff has reached out to those who attended last week's meeting to let them know about the additional public meetings this fall,

SPEAKER_01: the extension to the public comment periods, and provide links to the project information and resources on our website.

SPEAKER_01: And we'll continue to update those resources and communicate with the community throughout the process.

SPEAKER_01: Again, thank you for being here tonight.

SPEAKER_13: All right.

SPEAKER_13: So I'm going to, as I call you up, please come to the podium and state your name for the record.

SPEAKER_13: Please don't move the microphone as it's designed to pick up your voice at a distance.

SPEAKER_13: Remember to direct your comments to the Board.

SPEAKER_13: If you have written materials you wish to provide to the Board, please hand them to MUD Security to distribute.

SPEAKER_13: And our first speaker is going to be Darlene Westfall, followed by Jacques, and please correct me on the spelling of your last name, Jacques Pichot or Payasha.

SPEAKER_13: Pichot.

SPEAKER_13: Okay.

SPEAKER_13: And then following Jacques will be Scott Slauterbeck and Paul Weidman.

SPEAKER_03: Good evening.

SPEAKER_03: My name is Darlene Westfall.

SPEAKER_03: I am a former resident of Clay East Road, which would border the Twin Cities Solar Project.

SPEAKER_03: My husband worked for SMUD.

SPEAKER_03: He's retired and deceased for substations, transmission and distribution.

Unknown: This is a response to the preliminary notice of preparation of an environmental report for the Twin Cities Solar Project.

Unknown: I'm responding to the NOP with background information, specific impacts to be mediated, and the need to expand the sphere of influence or impact for local residents within a 96-square-mile service radius, as noted by Harold Fire and our Coee School District boundaries.

Unknown: The census in 2024 estimates the population to be 1,521 residents.

Unknown: In reviewing page 14 of this draft for environmental justice, it referred to an area in the region that might increase their sensitivity level, as noted on SMUD's website,

SPEAKER_03: Sustainable Communities Resources Priorities Map.

Unknown: There is a color-coded key indicating levels of sensitivity for each ward.

SPEAKER_03: Word 2 includes Harold, and it's identified as low sensitivity.

SPEAKER_03: This map refers to metropolitan areas as high sensitivity due to socioeconomic factors that cause inequality of services in municipal areas within the region.

Unknown: Since the entire region is used as a sphere of influence, providing cheap electrical energy to it, my contention is, Ward 2 has been unjustly neglected and underserved.

SPEAKER_03: Harold has no municipal resources such as public transportation, flood protection, a full-service fire department, and when we had Rancho Seco nuclear plant, we did have a fire department fully staffed on site.

SPEAKER_03: Police, road improvements, access to funding such services as a full-service fire department, not a volunteer fire department.

SPEAKER_03: Nor is the funding of our one rural school district receives funding from municipal sources.

SPEAKER_03: Ms. Westfall, your three minutes are up, but if you want to take another 30 seconds, just go to finish.

SPEAKER_13: At this juncture in planning for the future, SMUD, Sacramento County, and business partnerships are what's needed to improve infrastructure and provide equitable community access to resources enjoyed by the rest of the region.

SPEAKER_03: It's time for SMUD to recognize the vital role this community plays in powering the future.

Unknown: I look forward to promoting the mediation of these impacts on our neighbors and the community. Thank you.

Unknown: Thank you very much.

Unknown: Jacques Piché.

SPEAKER_13: Did I get it right that time?

Unknown: Piché.

SPEAKER_10: Yeah, my name's Jacques Piché.

SPEAKER_10: I'd like to start off before I begin, I'd like to apologize to the board. I'm not very comfortable speaking in the public.

SPEAKER_10: So I'm going to read an email I sent to someone asking me what were my major issues opposing the Twin Cities solar and battery storage project.

SPEAKER_10: This was written yesterday morning. Things have changed.

Unknown: I'm not sure how familiar you are with the project or if you've had an opportunity to read SMUD's NOP.

SPEAKER_10: I've been extremely busy working on informing the community of the scoping meeting, what an NOP is, and the EIR process in general.

SPEAKER_10: SMUD had only notified people living within 1,000 feet, granted per CEQA about 25 people of the intended scoping meeting, not the hundreds of people living along and south of Clay East Road that are now outraged.

Unknown: The whole process, or the whole proposal and process so far has been a life-changing train wreck for this area.

SPEAKER_10: It started by being blindsided with the NOP and less than two weeks' notice of the scoping meeting.

SPEAKER_10: This meeting was a farce. SMUD had no verbal presentation prepared, only cardboard explanations, and no intention of allowing public comments.

SPEAKER_10: They requested we speak one-on-one with the representatives. This was not acceptable to the standing room-only crowd that demanded proper protocol for a public meeting.

SPEAKER_10: SMUD then allowed public comments but had no recording or anybody taking any minutes to document the questions and concerns.

Unknown: The major concerns were glaring solar panels. I estimated 860,000 more than 2.5 square miles of photovitalic panels all facing south into our community.

Unknown: Traffic issues, traffic safety, noise, no emergency planning regarding lithium-iron battery storage, our volunteer fire department, homeowner fire insurance,

SPEAKER_10: property values, our right to live in a rural lifestyle, our viewscape, our nightscape, complete overburden of land and suffering of this community we have endured.

SPEAKER_10: Decades of Rancho Seco nuclear power plant saga, solar one and three modifications that consumed this power plant.

SPEAKER_10: Storage of spent fuel radioactive rods in our neighborhood, high pressure gas pipeline along Clay East Road, and currently 500,000 photovitalic panels in Solar 2 Project facing our community.

SPEAKER_10: And now SMUD wants to take away the beauty of our community for the benefit of the greater good.

Unknown: SMUD needs to also quit shoving the argument down our throat that it has to be built here due to existing infrastructure.

SPEAKER_10: And my to believe SMUD anticipated an exponential increase of power production when Rancho Seco was built and has all this unused, outdated equipment waiting.

Unknown: I'm sorry for going on and on. I personally lived on Clay East Road for nearly 30 years and I have now retired and have no desire to move. I could not live here if this project moves forward.

Unknown: A number of us are going to request to speak at tomorrow's board meeting just to put a face to our protest. I am almost done.

SPEAKER_10: We are also diligently writing responses to the NOP hoping to get an answer on alternative sites. None were given at the scoping meeting.

SPEAKER_10: And address all the concerns in the draft EIR. We have until June 26th. Once again, I'm sorry for the lengthy narrative, but it truly is a life-changing event.

SPEAKER_10: Any advice or comments would be greatly appreciated.

SPEAKER_10: Thank you.

SPEAKER_13: Thank you, sir. All right. Our next speaker is Scott Slatterbeck.

Unknown: Yes, hello. My name is Scott Slatterbeck. I wanted to talk today about carbon capture and carbon sequestration,

SPEAKER_14: which is mentioned in your clean energy goals for 2030 and beyond. This is another matter, I think, that SMUD needs to reevaluate in the future.

SPEAKER_14: As we all know, the level of carbon dioxide in the atmosphere has led to climate change, and this is an admirable goal for SMUD to engage in lowering the amount of carbon that the district emits into the atmosphere.

SPEAKER_14: But I don't think that carbon capture and sequestration is really the way to go. I don't think it's adequate. For example, we have gas turbine that is right now generating electricity for SMUD customers.

SPEAKER_14: That obviously is a fossil fuel that obviously emits carbon into the atmosphere. So you're putting yourself in a bad position when you are looking for having a carbon neutral outlook.

Unknown: I think we ought to move beyond carbon neutral and go into carbon negativity, for lack of a better term.

SPEAKER_14: There are technologies now coming that utilize atmospheric CO2 to generate the production of fuels and other industrial products.

SPEAKER_14: This is a rapidly maturing industry. Technology is growing fantastically, and I think that SMUD ought to explore getting some grants to capture atmospheric CO2 and utilize it rather than just trying to capture it and then bury it in the ground where it probably will escape to the environment eventually anyway.

SPEAKER_14: We're doing a little bit of research. Methane and methanol are products that are readily available using atmospheric CO2. Methanol can be used either as M85 petroleum fuel or as a fuel itself. Right now, methanol is costing between $3 and $6 a gallon, which 20 years ago seemed like a lot of money.

SPEAKER_14: But right now, it doesn't seem that bad at all. And I think that SMUD needs to be looking at not just taking CO2 out of industrial processes and its own gas turbines and burying it, but getting something useful out of it. Thank you.

Unknown: Thank you very much, Mr. Slatterbeck. Our next speaker is Paul Wideman.

Unknown: Hi, I'm Paul Wideman. I live in Harold. My daughter and son-in-law moved out there in 2020, and my wife and I followed in 2021. I'm a retired engineer.

SPEAKER_11: We live less than half a mile from where this project is going to be. We got no notification. If my wife wasn't active on Facebook, we'd have no clue.

SPEAKER_11: So I think the communication process needs work. Reading your 2030 plan, I've started to dig into the 63 pages of it. I see that there were seven informational meetings with stakeholders.

SPEAKER_11: I don't think anyone out in Harold back at the time in January of 2020 was contacted. And you're going to put something in our backyard. I think that it's really important to get our input. Let us know.

Unknown: There's an awful lot more opportunity for discussion, planning, and incorporation of good ideas if you get the input early. And I think that's just a shame.

Unknown: I'm very concerned about we're creating a heat island out there that possibly there's additional fire hazards, and there's no money to provide our firefighters, our volunteer firefighting force, with any additional equipment needed.

SPEAKER_11: This is going to probably impact our property values considerably, and not just the people of the Long Clay East. It'll ripple out there.

SPEAKER_11: Also, we're very concerned. I heard one of the directors mention about our bond ratings, how we had this negative rating because of fire.

Unknown: Well, we live in a fire hazard area, and we're very concerned about our insurance rates. If we have to go on the state plan, that's going to quadruple our insurance costs. So we're very concerned about things like that.

SPEAKER_11: Also, I'd be very interested in seeing requirements. I said I'm a retired engineer. I've done 11 years of program management, 6 years of engineering management up to director level.

SPEAKER_11: So when I asked some of the SMUD personnel requirements, what are those? I mean, you had 275 megawatts and battery backed. Got a lot of questions about that.

SPEAKER_11: Where are those? If you were going to give a statement of work to someone and say, we'd like you to consider bidding on this project long term. There's a process here, and I'm not familiar with SMUD's process.

SPEAKER_11: I'd like to learn a little bit more about it, but you have to have a set of requirements to give them beyond. Well, we want some solar and some batteries and 275 megawatts.

Unknown: Can I get that, please? Be very interested. And I'd just like to echo a lot of what Jacques had to say. I just, you know, give that a big harrumpf. Thank you, sir. And thank you all for your time.

SPEAKER_13: Chief legal officer, do we have any requests to speak online?

Unknown: Yes, we do have one hand raised from Mark.

SPEAKER_09: Good evening, SMUD board. This is Mark Graham. Can you hear me?

Unknown: Yes.

Unknown: Excellent. Well, thank you for the opportunity to speak. You know, I didn't really know anything about this solar project until I heard about it just now in the public comments, but.

Unknown: And I don't know about the ins and outs of the project, but it really sounds like SMUD has fallen short in the public outreach process, both the notice to the community and that scoping meeting where at first you weren't even going to allow any public comments because you told the attendees to speak one on one with SMUD staff, and then you finally allowed to speak.

SPEAKER_09: And I don't know about public comments, but then recorded. You can do better and you know it and please do. All right. I want to talk to you about H.R. 2289, the American Broadband Deployment Act of 2025.

SPEAKER_09: I sent you an email about this on Wednesday, June 10th, and hopefully you were, you each received it.

SPEAKER_09: Long story short, the telecommunications lobby is trying to, through their friends and allies in Congress, trying to pass through a bill that would be an enormous power grab, and they're taking the regulatory authority away from public power and away from local and state government over what happens on their property.

SPEAKER_09: So, and then one of the letters I attached was from the U.S. Conference of Mayors. It's a joint letter, National League of Cities, National Association of Counties, and NTOA, which is telecommunications officers.

SPEAKER_09: Anyway, and I hope you read it. They're strongly opposed. So I asked SMUD to oppose this legislation.

Unknown: Now, Ms. Lewis replied, your counsel and legislative affairs director, and the gist of her reply was, well, thank you for bringing this up to our attention. We've been monitoring this bill and we share the goal of having broadband for everybody.

SPEAKER_09: But, and what Ms. Lewis said is that there was an exemption that was written into the bill for public power. All right. Two things about that.

SPEAKER_09: I looked for that exemption. It's in supposedly in section 102 and I could not find it. And so I would ask the board, please, to follow up on this.

SPEAKER_09: Probably Ms. Lewis is going to follow up on this anyway, but, you know, just got her hands full. And I just, we just had this discussion by email in the last couple of days.

SPEAKER_09: I don't think that there's been an exemption added to this bill. And as such, here's what it would do. SMUD and all of its employees, you wouldn't be working for the telecommunications companies, but you'd be working under them.

SPEAKER_09: And if they wanted to stick a cell antenna on your poles and your equipment, they could do it. They could give you a short arbitrary time to review their application, even if it wasn't enough time because they submitted 40 applications on the same day.

SPEAKER_09: It would be deemed approved if you couldn't finish reviewing it in the adequate amount of time. And as Ms. Lewis noted, that could create safety hazards.

SPEAKER_09: All right. The second proposal is just too long to get into, but I think that there should be times when you support, when you oppose legislation, because it's detrimental to local government, even if it's not directly detrimental to SMUD.

SPEAKER_09: And I'm recommending that you adopt a new strategic direction to accomplish that. Thank you very much.

SPEAKER_09: Thank you, Mr. Graham. Our next speaker will be Paula Selby. And before you start, I just wanted to just mention to Mr. Graham that we've had a long-standing opposition to taking control of our lines and just ceding authority to put telecommunications in place.

SPEAKER_13: And we're going to be doing some work on our facilities and just bypassing all our safety reviews. So it's a long-standing policy, and it's actually very consistent with what you're asking for.

SPEAKER_13: Thank you very much. Thank you for your patience, Ms. Selby.

Unknown: My name is Paula Selby, and I've been a resident of the Harold Wilton area for about 23 years. In fact, I had Mr. Pichai's kids in my class, as I worked at our Coee school.

SPEAKER_05: So I understand our community. And I just want to put a human face on this for you, because you guys sit there in your chairs, and I don't even know if you've ever even been out to our community.

SPEAKER_05: Have you taken a drive down Twin Cities Road? Have you driven our streets, well, the potholes out there, to understand our community? Because this is going to have a huge impact on us.

Unknown: I can tell you, if you had attended that meeting last week, that nobody wants this out there. And it seems like this project just is like moving along.

SPEAKER_05: And I know there's an environmental impact review, and there's all these things. And to me, that's out there. Because what you need to understand is how you're impacting individual lives.

SPEAKER_05: And you know what? Sometimes the great are good. That's not worth it to us. We've invested a lot of money in our homes out there, in our way of life out there, and plop this solar project out there, and pretty much destroy that for us.

Unknown: And the affordability for fire insurance. And how our kids grow up in our area out there.

Unknown: And I just feel like you don't really get it. I'm just watching this project march on down the road, and it's like, well, have you guys... They didn't want our feedback last week.

SPEAKER_05: And in spite of our feedback, it just feels like, well, this is going to happen. I mean, a carbon neutral goal for 2030 is admirable, but you're balancing it on the backs of the residents of Harold.

Unknown: It's going to power 70,000 homes. Well, and that energy goes into the grid. What percentage of homes is that by that solar farm out there?

SPEAKER_05: It's probably .00 something for the state of California, and you're balancing on the backs of people's property values, their way of life, our roads, our insurance.

Unknown: If you would hear the voices of our community, you would know that this is not a good thing for us, for our community out there. This is heartbreaking for us.

Unknown: And I listen to everybody here, and it's like, well, we need this power, and we need to be carbon neutral, and we need to do all this.

SPEAKER_05: But you're balancing on the backs of the residents of Harold. On us, on our children, on some of us who have our grandchildren living on our properties out there, it's going to affect all of us.

SPEAKER_05: And you know what those people who get that power? They don't know what the cost is to those of us living in the community of Harold, and I would like you to think about something.

SPEAKER_05: If your home was within 1,000 feet of this project, how would you feel? Does that guarantee you wouldn't be able to sit back there and go, oh, yeah, but this is a really great thing for the state of California?

SPEAKER_05: No, you'd be on this side saying, we don't want this in our community.

SPEAKER_05: Ms. Shelby, I'm going to ask you to-

SPEAKER_05: Just hope that you hear us. Thank you.

SPEAKER_05: Thank you for your comments. I just wanted to reiterate that as our CEO mentioned, we're just at the very beginning of the process to gather information such as you shared with us tonight to consider how this might be.

SPEAKER_13: And we haven't moved forward, so very early in the process, we've extended the time for commenting on it and for gathering information about the impacts of this project.

SPEAKER_13: But thank you very much for taking the time to come here and to share your information and your thoughts and your perspective.

SPEAKER_13: I will share that a number of board members do plan to come out there and look around, as you suggested, and see what the community is and see the setting for this.

SPEAKER_13: And I would imagine most of us will get out there in the next few months.

SPEAKER_13: But anyway, thank you very much for coming tonight. I appreciate your patience. Did you have something?

SPEAKER_06: Just on the virtual public comment, we did have a hand raised by LaCharles James. It's no longer raised, but I just wanted to make sure that there was not one more virtual comment online.

SPEAKER_06: So I just want to give a minute for LaCharles to speak if he's intense to now. I see he's not even- Oh, there he is. Okay. His hand's raised now.

Unknown: Hello, everybody. My name's LaCharles James. I'm the president of the Herald Fire Prevention Council. I noticed the reason why I took my hand down is that the comment I had was a comment about something you had on the agenda regarding LIDAR.

SPEAKER_02: We had been looking for a LIDAR study of Herald for a long time, and I just saw it on your agenda, and I wanted to ask you, would it be possible to include Herald on that LIDAR study?

Unknown: The reason why I'm asking is that we only have old maps of fuel zones, and we'd really like to know where the excess fuel is other than what we can see from the road and old maps.

SPEAKER_02: I've done several grants to get some money for fuel reduction, and we have the CCC coming to our community July 1st, our first target as the Sears to remove the fuel loads on their properties.

SPEAKER_02: So the LIDAR would give us a real good feel of the resources we need to bring to bear to reduce that danger zone. Thank you so much for letting me speak.

SPEAKER_13: Do we have any other requests to speak?

SPEAKER_13: No, I don't see any more hands.

SPEAKER_06: All right. Well, thank you very much. That concludes our public comment for items not on the agenda, and we'll move on to our Director's Report.

SPEAKER_13: We provide directors an opportunity to report on their activity on behalf of SMUD, and we'll begin with a report from Director Rose in Ward 1 and continue in ward order with the President's report as the final item. Director Rose.

Unknown: Yeah, thank you, President Tamayo. Let me run through a few things. I do want to thank everybody for coming out tonight and sharing your thoughts with us, even though it's not on the agenda, so we won't discuss this in detail.

SPEAKER_12: A couple of really sort of interesting events. We have the Orange Valley Fair Oaks Community Foundation and the Day of Service.

SPEAKER_12: So we ran out there to the Orange Valley Community Center, and we planted a bunch of trees with the SMUD staff, and we laid an enormous quantity of mulch all over the community center.

SPEAKER_12: So that was a lot of fun. I want to thank the staff for coming out and volunteering their Saturday for that.

SPEAKER_12: I had an opportunity to get to SMUD for our MURG, our Military Employees Resource Group, and their Memorial Day presentation.

SPEAKER_12: Some of our veterans had some very touching and moving words about their experiences, and I wanted to thank them for sharing those stories.

SPEAKER_12: They were intense, but I think they're very important to make sure that those stories are told. So thank you for that.

SPEAKER_12: And other things, I thought by the elected officials' reception for the Slavic Chamber of Commerce as well.

Unknown: I also got to the Telugu Association of Greater Sacramento. We had the full SMUD crew, a couple dozen people, come out with all of our different programs and talking about rebates and ways people can save money.

SPEAKER_12: That was a lovely evening.

SPEAKER_12: And then the other thing I was able to get out to in the last month or so was the Connectus Economic Development Summit.

SPEAKER_12: This has grown out of our Business Advisory Council over the years. So it was out in Citrus Heights, and they focused on the Sunrise Tomorrow Project, which is this comprehensive plan to redevelop the Sunrise Mall space.

SPEAKER_12: And so we had a whole bunch of really interesting speakers talking about what's going on and where that vision is headed to.

SPEAKER_12: So I'm glad SMUD has continued to work closely and partner with them and see that vision move forward as well.

SPEAKER_12: And then I think just to wrap up, I got out to our safety fair up at Fresh Pond over the weekend. It was sort of a mini-open house.

SPEAKER_12: And that was sort of exciting. They brought the helicopter out, they used the survey, the lines, got the seed, the machine shop, and talked with some of our staff, got a full review of some of the telecom services.

SPEAKER_12: I said we see these in the budget, we read them in the operations report, but it's fun to actually come out and see and talk to the actual staff working on this stuff day to day.

SPEAKER_12: And so with that, that is my report. I'll turn it over.

SPEAKER_12: Thank you.

Unknown: Thank you. I spoke at several Galt City events. I had the opportunity to introduce the mayor at the State of the City luncheon.

SPEAKER_18: I also attended their Galt Chamber of Commerce Awards night to see some great local leaders, and the community Galt is a very active, yet mighty, it's a small community, but they have a lot of very active business leaders.

SPEAKER_18: It was nice to see them get recognized for all their hard work making Galt the great place that it is.

SPEAKER_18: I also had the opportunity to attend the Los Rios College Foundation to say goodbye, and thank you to Brian, who's been a long leader, I think over 20 years there in the district.

SPEAKER_18: It was good to see many years of service to Los Rios and our community.

SPEAKER_18: And then last, many of us attended the SMUD Recognition Gala. It's one of my favorite events of the year.

SPEAKER_18: I spend time, I try to go to most of the tables around to say thank you.

SPEAKER_18: It's amazing to see people that have the range of five years to 44 years as their CO, and still the excitement is there till the very end.

SPEAKER_18: So thank you to all our employees who make this organization as great as it is.

Unknown: I think it's my turn. I also wanted to address the people who have come to address the board tonight. Thank you. It's not easy.

SPEAKER_08: It's not close to where you live. We appreciate your comments. You're early in the process. I have been out in your community.

SPEAKER_08: I grew up in a rural area, not very different from where you are, so I think I get it a little bit.

SPEAKER_08: And just thank you for coming.

Unknown: A couple of events that I've been at recently. I got to say a few words at an event celebrating our first solar and battery installation at a nonprofit.

SPEAKER_08: And it was installed at a school, a very special school called the Children's Choice for Hearing and Talking, the chat center.

SPEAKER_08: And this is a school that helps children who are hearing impaired or deaf, but that have either cochlear implants or hearing aids.

Unknown: And they're children that actually need to learn how to use these devices and communicate with them. In many cases, it's the first time they've been able to hear.

SPEAKER_08: And so for somebody to put a solar system and battery storage system at that site helps the nonprofit save a little bit of money.

SPEAKER_08: And it was just really inspirational to see the work that they're doing there.

SPEAKER_08: I also went to the celebration for Brian King, the Legacy of Hope celebration, and what a remarkable career.

SPEAKER_08: Congratulations to Brian as he retires from the Los Rios colleges as the chancellor.

SPEAKER_08: I got to also say a few words and participate in another key ceremony for Habitat for Humanity.

SPEAKER_08: This was in Citrus Heights, and I filled in for Director Rose, who was unavailable for some reason.

SPEAKER_08: What a great event. This was the first eight homes that they're dedicating on Sayonara Drive in Citrus Heights.

SPEAKER_08: 26 total will be built there. Of course, Habitat requires 500 hours of sweat equity from each of these families.

SPEAKER_08: Only the first eight were immigrant families, and they've just poured their heart and soul into these homes.

SPEAKER_08: I've done a few of these, and it always just gets you. It's really a special thing.

SPEAKER_08: Smud Recognition Gala was also great. And again, congratulations to all the employees who were recognized there.

SPEAKER_08: And then finally, last Saturday I attended the American Cancer Society Cultivate event.

SPEAKER_08: It's a culinary campaign to end cancer, and some of the best chefs in town were there providing food samples,

SPEAKER_08: but it's also the American Cancer Society fundraiser, so they can provide additional funds to families that have somebody who's suffering from cancer.

SPEAKER_08: Maybe they need additional treatment. Maybe they need places to stay. Maybe they need travel assistance.

SPEAKER_08: And so to help raise a bunch of money for that was a great night.

SPEAKER_08: And they're also very definitely linking food to cancer, and saying if we eat healthy, we can reduce the instances of cancer.

SPEAKER_08: And so it's kind of this full circle look at how to beat cancer, and it was a nice event. That's all I got.

SPEAKER_08: Okay, I think I'm next. Several things. One is we had a really great Smud Recognition Gala.

SPEAKER_04: I loved going from table to table and seeing old friends who are now old as me, and they're retiring.

SPEAKER_04: It just blows me away. We also had great entertainment, and it's very inspiring to see the folks who are retiring in their years at Smud,

SPEAKER_04: and the executives up on the stage who know them so well. It really makes you feel good about the fact that Smud cares about its employees,

SPEAKER_04: and Smud employees love to work here.

SPEAKER_04: Also had the opportunity to be the Grand Marshal at the Sacramento LGBTQ Center's Pride March, and that was amazing. There were so many people there.

SPEAKER_04: And I got to ride in this cute little white convertible, which even was a boat. You could drive it into the water.

SPEAKER_04: So the car got a lot of attention, let me tell you. People were asking all about it, and I just want to thank David Heitzerman for the opportunity to be the Grand Marshal.

SPEAKER_04: Also attended a workshop with the American Leadership Forum on Artificial Intelligence, and it was really interesting.

SPEAKER_04: Two experts there giving the presentation asked all of us, how many of you out there believe that AI is going to destroy the world?

Unknown: And give us a percentage, you know, 100%, you think it, 50, whatever.

SPEAKER_04: And most of the people who attended the workshop thought that it'd be 50% or more, and our instructors then proceeded to talk about AI and give us more insight,

SPEAKER_04: and they both believe that, you know, it's less than 10% that AI is going to destroy the world.

SPEAKER_04: So it just opened my eyes to the fact that, you know, these tools are available to help all of us be smarter.

SPEAKER_04: There do need to be controls on AI, but I'm much more excited about what it might be able to do for us in the future.

SPEAKER_04: Also went to the Earth Day Art Competition reception, where a lot of young people, they drew pictures to celebrate the Earth and to conserve energy,

SPEAKER_04: and it was just inspiring, you know, young people who care about our planet and who want to make a difference.

SPEAKER_04: It was just very touching.

SPEAKER_04: And then last but not least, I met with a woman named Maria Medrano, who has developed an app that helps young people figure out what they need to do in order to go.

SPEAKER_04: She's a very good person to go through different schooling programs, and she is very excited about this and is starting to use it in different places.

SPEAKER_04: And I found it really helpful to look at real concrete data that will help students know what they have to do.

SPEAKER_04: And one of them is, you know, if you want to be an electrician or a line person, these are the things you need to do.

SPEAKER_04: So I'm glad that that's out there, and I hope that it brings us more line people.

SPEAKER_04: And with that, that's the end of my report.

Unknown: Thanks. I'm up next to Rob Kurth from Ward 5. And I just have one event I would like to talk about. It was a very busy month, but there's just one key event which I look forward to every year.

SPEAKER_17: And I want to encourage people to pay attention to this, and that is the State Fair.

SPEAKER_17: I was able to join the multiple chambers of commerce who have a State Fair preview day to hear all the great things that are going on.

SPEAKER_17: They're, of course, always making changes. And I believe we have a SMUD day at the State Fair almost every year.

SPEAKER_17: I haven't seen it on the calendar yet, but I assume it's there, too.

SPEAKER_17: And so if the event with the chambers is any indication, they had to turn people away from the door because they had too many folks attending.

SPEAKER_17: So I look forward to the State Fair again this year. And with that, thanks.

Unknown: Thank you. I do want to start off by thanking the people of Harold that came and spoke today, and I will be going down to see the site for myself.

SPEAKER_20: And I do appreciate all your comments, and just because I'm going to talk about things that are joyful, I know that I felt your stress, so I just want you to know that.

Unknown: And then to Director Herber, if there's a 10 percent chance that AI is going to take over the world, I'm now more concerned than ever.

Unknown: I don't know what happened there, but now that's – I'll talk to you about that later.

SPEAKER_20: So the Kiwanis Club of Carmichael, I was excited to go to the Taste of Carmichael.

SPEAKER_20: We have a wonderful center called the Milagra Center, and we have just this amazing group of food.

SPEAKER_20: It's like a food court in a building, and it's just beautiful if you haven't been there. It's at the corner of El Camino and Fair Oaks.

SPEAKER_20: And they had a sampling of food from there and other places in Carmichael.

SPEAKER_20: But I just want to thank the – if you haven't been to GB Gelato, the gentleman is actually from Europe, and he hand-makes this gelato that's sourced from local farmers, and it's absolutely incredible, different flavors.

SPEAKER_20: Apricot was my favorite.

SPEAKER_20: Rayleigh's, I Love Pie, Saratela's River City Brewing, Taiko Sushi.

SPEAKER_20: It's incredible if you get to go and enjoy it.

SPEAKER_20: The Rechargeree. I did go to see the Rechargeree, a brand new charging center.

SPEAKER_20: It's called Iona, and it's right at 7775 Stockton Boulevard, right off of Highway 5.

SPEAKER_20: They're all level 3 chargers, and I've been saying for years, we need to make charging just like it is for fueling a car with gas.

SPEAKER_20: It has to be convenient. There have to be restrooms. There have to be amenities.

SPEAKER_20: We have to make it nice for people and feel for myself.

Unknown: I don't feel safe alone in a parking lot in the middle of nowhere in the night in a charging station.

SPEAKER_20: So I was thrilled to see this right by Coffee Shop and some stores, and they're very cool, retro-looking, and it's started by eight automakers.

SPEAKER_20: You'll see them all over the country now, and they're kind of this cool retro orange and teal.

SPEAKER_20: BMW, GM, Honda, Hyundai, Kai, Mercedes, Toyota, and Stellaris.

SPEAKER_20: They're all working together, and they're putting them all over the country.

SPEAKER_20: This is the first in our county, but I'm hoping to see a lot more of these and thank them for what they did to install that charging center down off Stockton Boulevard.

Unknown: Then I went to 916, Inc., their annual extravaganza fundraiser.

SPEAKER_20: I did not know what they were. It's a wonderful organization, a nonprofit, that actually teaches kids how to read and uses creative writing to teach them how their reading skills and get them better at their literacy.

SPEAKER_20: It was a wonderful event, and it's an art-based group, and I just loved what they did.

Unknown: Then I did go to Verde Exchange in Los Angeles, and I was there all day on the 1st of June, and we had energy commissioners, the chair, David Hochschild, was there, Siva Gunda, the vice chair, was there.

SPEAKER_20: It was a whole array of people, but two things I brought back to staff were that I identified a company that's actually doing wind blade recycling.

SPEAKER_20: We do have a wind system out at Solano, and we found, thankfully, people in touch be to reuse the blades this time, but the day will come when those big blades that are football field long are going to need to come down.

SPEAKER_20: Now there's a new company out of Canada that has figured out how to take that fiberglass and break it down and make it into new building materials.

SPEAKER_20: I've passed that on to staff, and it's very exciting to see those innovations.

Unknown: I also passed on a company out of Canada that's taking waste aluminum that's too contaminated to make it into clean aluminum cans or other products, and they can make power out of it.

SPEAKER_20: I am not an engineer, so I will not venture to explain how they do it, but I have passed it on to our R&D staff, who hopefully can look into that.

SPEAKER_20: So lots of neat innovations going on out there.

SPEAKER_20: I did also attend the North State Building Industry Association reception, which was wonderful to meet with our builders, and I want to thank them for their homemade program, a nonprofit where they actually go out and do home projects for free, and they support the children receiving home, which I'm on the board of.

Unknown: They're actually going to help us put in new kitchens into the dorms.

Unknown: The way the federal government is reimbursing us, we're struggling financially.

SPEAKER_20: We cannot make it work to take the little kids, but what we can do is put kitchens in and take the kids from American River College who are sleeping in their cars and getting them into those dorms and having them a place to eat.

SPEAKER_20: They'll be supported with mental health care and other supports to find permanent housing, and we're very excited for that, and I want to thank the Building Industry Authority Association for that.

Unknown: And then the Gala, of course, is always a spectacular event.

SPEAKER_20: I just want to thank everybody from staff who put it on, and thank you to all the staff for all their many years.

SPEAKER_20: I've never been to an event where you see so many people that have worked at a place 30, 35, 40 years, and it's really because we're one smud.

SPEAKER_20: So thank you to all the team.

Unknown: All right. Thank you.

SPEAKER_13: So I did a number of things the last month.

SPEAKER_13: One really cool thing was out in Rancho Cordova, they have a brand new food hub.

SPEAKER_13: It's not quite open yet, but we contributed quite a bit towards their HVAC and lighting, I believe, and they had other community partners that invested in this.

SPEAKER_13: And it's a unique facility in that people, it's like it's a type of food bank, but people go in and they just shop, and they don't get just a bag of whatever they happen to get.

SPEAKER_13: They're able to shop just as in a regular store and get what they actually want.

SPEAKER_13: So that was actually very well attended and very joyous event.

Unknown: I want to mention again the art competition we had for the calendar, for the smud calendar with all the kids.

SPEAKER_13: They were here about a month ago, and we recognized them, and that was just a lot of fun.

Unknown: I had a great time at the Catalyst graduation.

SPEAKER_13: Catalyst is a leadership program that's run by, and I'm sorry, I forget the name of the foundation.

SPEAKER_13: I think it's Cal-Asian Foundation, which is sort of a branch off of the Asian Chamber.

SPEAKER_13: And that was just really great to see all these graduates, they all spoke for a couple of minutes and talked about their experience and learned a little bit about what they're doing.

SPEAKER_13: And then Jesus Tarango of the Wilton Rancheria had a very nice talk about his journey, growing up and then also becoming a leader in not only his community, but also the broader community of Native Americans throughout California and what it takes and what the rewards are of being a leader in those groups.

SPEAKER_13: He was actually very inspirational, so thank you to him.

SPEAKER_13: I had the opportunity to do a business walk on Gerber and near Power End, so I got to meet with a number of business owners.

SPEAKER_13: It was actually one of the more successful business walks that I've been on.

SPEAKER_13: It was organized by the Economic Development Department of the County of Sacramento.

SPEAKER_13: They did a great job of leading that and pairing us with each team had one of their folks so that I was with them.

SPEAKER_13: And it was great to hear what they were doing and then also to chime in with the types of things that SMUD has to offer business owners.

SPEAKER_13: And thankfully there were quite a few owners that were there, so we were able to talk to quite a few of them.

SPEAKER_13: And then I had a very nice interview with a group called Coppwa Conversations.

SPEAKER_13: It's a group of young Filipino Americans that are working to get the youth of the Filipino community,

SPEAKER_13: and really just youth in general, API youth, engaged in civic matters.

SPEAKER_13: And so they're interviewing various community leaders, politicians, business leaders, things like that,

SPEAKER_13: and finding out about our journeys and our ideas of how young people might plug in,

SPEAKER_13: and also getting to hear from the young people about what they think is important.

SPEAKER_13: So I think that will end up being a podcast and I'll let folks know so you can grade my performance if you have nothing better to do.

SPEAKER_13: I wanted to point out that next week the City of Sacramento is receiving a delegation from the City of Morelia,

SPEAKER_13: which they have a sister city agreement that they're going to adopt the City of Sacramento's resolution,

SPEAKER_13: similar to what happened when we visited.

SPEAKER_13: I was part of Sacramento's delegation to Morelia a couple of months ago, so they're coming here,

SPEAKER_13: and they do have an item coming up at City Hall next Thursday at 1 o'clock, which I plan to attend.

SPEAKER_13: I shared that with the rest of the board and the executive team.

SPEAKER_13: And then I don't have their full schedule, but I'll want to get that, make sure that people are aware of the types of things that we may be able to participate in.

SPEAKER_13: So if you get a chance, the mayor of Morelia will be there.

SPEAKER_13: He's actually the president of the municipality of Morelia, and a number of his secretaries and business leaders will be there.

SPEAKER_13: So it should be pretty interesting and a great opportunity to practice your Spanish, although many of them are very fluent in English as well.

SPEAKER_13: So don't let that deter you.

SPEAKER_13: So that being said, I want to hand it over to Paul Lau, our CEO, and see what you have to say, Paul.

Unknown: Well, thank you so much, President Tamayo.

SPEAKER_01: So I'd like to start tonight's report by recognizing June as Pride Month.

SPEAKER_01: Now, separating Pride Month promotes acceptance, equality, and awareness of the issues that the LGBTIQ plus community faces.

Unknown: I'm proud of the work we're doing to foster diversity, equity, inclusion, and belonging at SMUD.

SPEAKER_01: At the same time, I recognize there's more to be done to create communities that are truly inclusive and equitable.

SPEAKER_01: Now, Team SMUD has been busy this month with Pride celebrations, including the Sacramento Pride Festival and March this weekend.

SPEAKER_01: Now, thank you so much for attending and supporting Pride, and thank you to Director Herber for your participation in this wonderful event.

SPEAKER_01: Now, Juneteenth is also being celebrated tomorrow.

SPEAKER_01: As you know, Juneteenth commemorates the freedom finally granted to more than 250,000 enslaved black people in Texas in 1865.

SPEAKER_01: Now, by honoring this history with occasions like Juneteenth, we remember the millions who were enslaved, the need to share, the rich and often painful history of people of color in this country is critical.

SPEAKER_01: Thank you to our SMUD team members who will be out in the community at events this week in recognition of Juneteenth.

SPEAKER_01: Thank you to our Pride SMUD Employee Resource Group and the Black Employee Resource Group for the work they do all year long.

Unknown: Next, I'm excited to share that the SMP recently upgraded SMUD's revenue bond outlook to stable.

SPEAKER_01: Now, Team successfully demonstrated to SMP that SMUD's wildfire mitigation plan, robust vegetation management, strong insurance protection, and liquidity and discipline financial management are helping to reduce our wildfire related risk.

SPEAKER_01: SMP also affirmed a strong short and long term bonds rating, unchanged since 2017 at AA, helping us to continue to borrow at lower costs and maintain affordable rates for our customers.

SPEAKER_01: So this is a special thanks to our CFO and also for Laurel's group in terms of getting a wildfire plan and really addressing the concern that SMP has about really all the utilities in California.

SPEAKER_01: I think you heard Jennifer talk about earlier about last year all seven utilities, big utilities was downgraded because of the negative outlook because of the concern about wildfire in California.

SPEAKER_01: So kudos to the team.

SPEAKER_01: So last month, annual SMUD Care Golf Tournament was a big success for the participants and for our community.

SPEAKER_01: More than 250 golfers swung for a cost, raising $8,000 for the Firefighters Burn Institute, the chosen nonprofit of both winning teams.

SPEAKER_01: And a special thanks, Kewd, goes out to everyone who made the SMUD Care Golf Tournament a success this year.

SPEAKER_01: And a special thanks to Director Bowie Thompson for attending and your ongoing support of SMUD Care and in rare form.

SPEAKER_01: I mean, Director Bowie Thompson did not win the women's long drive this year.

Unknown: She have a new competitor now, you know, in Director Kirsten.

Unknown: Now, as well, awards, congratulations to our safety coordinator, Dwayne Chapelle, on being named as one of three recipients nationwide to receive the 2026 Safety and Action Icon Award from DECRA.

Unknown: DECRA is a global organization offering workplace safety solutions and services.

Unknown: Dwayne, including the work of our SCORCH program, which stands for Safety Conducted Observation Reduced Common Hazards,

SPEAKER_01: will honor for a dedicated commitment to driving behavioral-based safety awareness at work and at home.

SPEAKER_01: And again, I really want to say a big thank you for our staff for really driving down that for the last decade.

SPEAKER_01: 90% of the injuries that we see at work.

SPEAKER_01: So, special kudos to COO Frankie McDermott, which I know has a huge part to play in really keeping our employees and also the community safe every day.

SPEAKER_01: So, thank you.

Unknown: And finally, to let videos give a behind-the-scenes look at the work of our High Voltage Testing Team.

Unknown: This team plays a critical role in keeping our crews and our community safe every day.

SPEAKER_01: You get a look inside the lab, where the team rigorously tests every piece of insulated equipment and a variety of equipment we rely on in the field.

Unknown: They certify that the equipment is ready for safe operations before it is put in use.

SPEAKER_01: Now, very few utilities perform this work in-house, and the skill and dedication of a team allows SMUD to maintain our high safety standards and reliability for our customers.

SPEAKER_01: Now, this video will run on our social media channels, and I want to thank the team as well as our communications staff who helped produce this video for showcasing the craftsmanship, position, and pride that goes into this essential work.

SPEAKER_01: And before I conclude, you know, before I look at the—oh, let's go ahead and look at the video.

Unknown: As someone who works on SMUD's social media team, I get to see our field crews in action all the time.

SPEAKER_00: But that has me thinking, who are the employees who make sure our equipment is safe and reliable?

SPEAKER_00: And instead of telling you about them, I say we go on a field trip.

SPEAKER_00: Today, we're over at the East Campus.

Unknown: As I walk by all these tools, I start to hear this weird sound.

Unknown: But before we investigate that, let me introduce you to someone.

Unknown: Let me introduce you to the one and only Ashley.

Unknown: Our field crews use a lot of gloves.

SPEAKER_00: Ashley examines every glove in detail because even the smallest hole could be a big issue.

SPEAKER_00: I'm learning quick that this team is very hands-on, and they want to make sure I get my hands dirty.

Unknown: After we check the gloves for punctures, it's time to electrocute them because they test them for everything.

SPEAKER_00: And while the gloves get tested, crews come in and out to hand in equipment that need to be tested.

Unknown: While Ashley helps him, let me introduce you to the super cool Adam.

Unknown: Today, Adam has a big task.

SPEAKER_00: He's changing the heads on all these C-clamps.

SPEAKER_00: And there's like a lot. Like, a lot, a lot.

SPEAKER_00: These C-clamps are extremely important.

SPEAKER_00: They make sure that all electricity is grounded while the crews work.

SPEAKER_00: Every clamp is individually tested.

SPEAKER_00: With Adam's hands being full, let's head on over to meet the awesome Josh.

SPEAKER_00: Josh is working on the grip-all clamp sticks, also known as a shotgun.

SPEAKER_00: These super cool tools allow our crews to pick up anything.

SPEAKER_00: That includes live wires.

SPEAKER_00: Josh cleans and also electrifies them.

SPEAKER_00: He also suggests that I give it a go.

SPEAKER_00: And as much as I make this look super, super easy, I can assure you, it is not.

SPEAKER_00: Before I embarrass myself even more, let's head on over to the substation room.

SPEAKER_00: This is where we get to meet the guy with the super cool entrance.

SPEAKER_00: That would be Elliot.

SPEAKER_00: He's here to make sure that our equipment is ready to go out in the field.

SPEAKER_00: From large transformers for businesses, to small ones you might see in your neighborhood.

SPEAKER_00: He does the testing to make sure equipment can withstand the most extreme conditions.

Unknown: Since Elliot has his hands full, earlier I did mention we would investigate that noise.

SPEAKER_00: And show me why they're really called high voltage.

Unknown: This small but mighty team works so hard to make sure that our crews are safe out in the field.

SPEAKER_00: And when I was interviewing Josh, he said something that I think would be the best closer for this video.

SPEAKER_15: Most of us that work in here have been out in the field and we've had to use this equipment on lifelines.

SPEAKER_15: So we know the importance of making sure that everything is in tip top shape.

SPEAKER_15: I mean, we have friends and family out there we care about.

SPEAKER_15: And we try really hard to make sure that everything is here in the best condition possible.

Unknown: And this concludes the video.

SPEAKER_01: But before I conclude my report today, I really want to say a special thanks to somebody that we love, Deeluya Smud.

SPEAKER_01: Chief Communications and Marketing Officer, Ferris Everly, who's in the audience today.

SPEAKER_01: Who is retiring this month.

SPEAKER_01: This is his last board meeting.

SPEAKER_01: So I think Ferris, this is probably your 5600 meetings that actually you've attended since your career here at Smud.

SPEAKER_01: And on board, I think I got it right.

SPEAKER_01: Great.

Unknown: I just want to say thank you.

SPEAKER_01: I think Ferris has been an absolute pleasure to work with.

SPEAKER_01: And he really is a big drive in terms of making Smud, giving us reputation locally, statewide and also nationally.

SPEAKER_01: And he's also really, for those of you who don't know,

SPEAKER_01: he is really the one, the initial concept that we need to have a board video once a month.

Unknown: So again, congratulations to Ferris and best of luck to you and Maria in your retirement.

SPEAKER_01: Thank you.

Unknown: And that concludes my report.

SPEAKER_01: And back to you, President Tamayo.

SPEAKER_13: Yeah, thank you.

SPEAKER_13: And I did give Ferris fair warning that we're going to expect him to sing at this meeting.

SPEAKER_13: So you've got three minutes up at the mic there, Ferris.

SPEAKER_13: So don't disappoint us.

SPEAKER_13: So do we have any summary to note for the record?

SPEAKER_13: I do not have anything now.

SPEAKER_06: All right.

SPEAKER_13: Thank you.

SPEAKER_13: And do we have any requests to speak on the closed session agenda?

Unknown: No, we do not.

SPEAKER_06: All right.

SPEAKER_13: Well, first of all, let me say thank you very much, Ferris.

SPEAKER_13: Really appreciate all the work that you've done and also the videos.

SPEAKER_13: I didn't know that was your brainchild, but I knew that you were behind the execution of them.

SPEAKER_13: But I think it's a great body of work.

SPEAKER_13: I mean, obviously, that's not the only part of your body of work, but those are really cool.

SPEAKER_13: So I'll think of them now.

SPEAKER_13: I'll think of you out fishing somewhere while I'm watching the videos.

SPEAKER_13: So anyway, have a great retirement.

SPEAKER_13: I hope to go out fishing with you sometime.

SPEAKER_13: And you got a raft trip from me at some point when you come back from your – I guess it's not a honeymoon.

SPEAKER_13: It's a retirement trip.

SPEAKER_13: It's like, it's a extravaganza.

SPEAKER_13: Thank you.

Unknown: Yeah, go ahead, Greg.

SPEAKER_13: And if any of the other directors wanted to say something.

Unknown: Ferris, as you know, I was a PIO here at SMUD long before you actually started here.

SPEAKER_08: And I pretend like I know something about communications once in a while.

Unknown: And I just want to say thank you for reining me in at times and keeping me within the rails.

Unknown: And I appreciate the work that you've done.

SPEAKER_08: You've got a great team.

SPEAKER_08: And we're going to miss you.

SPEAKER_08: But yeah, enjoy getting your line wet a little bit and have fun.

Unknown: Anybody else on the chair, man?

SPEAKER_13: Go ahead, Heidi.

SPEAKER_13: I'll just say thanks, Ferris.

SPEAKER_20: I mean, sometimes I would drop like – I always have the crazy ideas, like, you know, do the powered by SMUD stickers for people's cars.

SPEAKER_20: And you did that.

SPEAKER_20: And then the idea about, you know, focusing on the health impacts of stoves, since gas stoves, it's like, you know, people love their gas stoves.

SPEAKER_20: And you did that.

SPEAKER_20: And we made it a medical issue.

SPEAKER_20: And people didn't know that.

SPEAKER_20: So I just want to say thank you.

SPEAKER_20: You did a great job.

SPEAKER_20: The billboard's everything.

SPEAKER_20: I mean, we have such a great reputation.

SPEAKER_20: But a lot of it is because of what you put out there.

SPEAKER_20: So enjoy your retirement.

SPEAKER_20: And hopefully we'll see you rafting or fishing.

SPEAKER_20: Crazy ideas on the best side.

SPEAKER_13: Go ahead.

SPEAKER_04: Well, I have to say something, too, because, you know, the board's on a roll now.

Unknown: And I don't know if many of you know, but Ferris was my boss for many, many years.

SPEAKER_04: And I have to say that he's just a tremendous man.

SPEAKER_04: You know, he was fair.

SPEAKER_04: Not a whole lot of people can control me.

SPEAKER_04: And he did a good job.

SPEAKER_04: But the reason why is that he was such a good man.

SPEAKER_04: And you could tell that he wasn't going to try to rip you off or, you know, get something by you.

SPEAKER_04: And so I'm very grateful that you made my time at SMUD a good time.

SPEAKER_04: So thank you, Ferris.

SPEAKER_04: I'm really sad that you're leaving.

SPEAKER_04: But I know you and Maria deserve this time together.

SPEAKER_04: So my heart goes out to you, my friend.

Unknown: Well, now I'm going to insist that we have lunch so that I can learn how to control Rosanna.

SPEAKER_13: Anybody on this?

SPEAKER_13: That might take dinner.

Unknown: Thank you.

Unknown: So as Ferris, thanks for keeping us on message all these years and for being able to reach out to people and explain SMUD in a way that's understandable.

Unknown: It's not easy what we do here.

SPEAKER_17: And so much of it gets taken for granted.

Unknown: And we kind of like being taken for granted, you know, just the light's on, the rate's low, and always dependable.

Unknown: But there's nothing simple in any of that.

SPEAKER_17: And explaining it to folks is hard.

SPEAKER_17: So thank you.

SPEAKER_17: And just to confirm, I did send out a message to all my fish friends that they need to lay low because Ferris has got some extra time on his hands now.

SPEAKER_17: Thanks so much.

Unknown: So, Ferris, you've been here as long as I have.

SPEAKER_18: I think you started in 2008, right before I was elected.

SPEAKER_18: And it's been quite an honor and just the experience of seeing you grow, right?

SPEAKER_18: Started as a supervisor and ending as an executive.

SPEAKER_18: And I talked to you at the retirement gala.

SPEAKER_18: You know, a lot of people, SMUD becomes a family.

SPEAKER_18: It becomes a part of your life.

SPEAKER_18: And sometimes it's hard to know when to leave and to say, this is time for myself and my family.

SPEAKER_18: So I'm glad you're doing it while you can still trudge.

SPEAKER_18: And I know you're a great fly fisherman from Paul talking to you about it and some of the secret little holes around.

SPEAKER_18: And, you know, this is for everybody here, too.

SPEAKER_18: You give a lot, but you also have to give to your family.

SPEAKER_18: And so I love that you're retiring while you're still healthy and you have this great life ahead of you with Marie.

SPEAKER_18: And hope to see you around.

SPEAKER_18: You know, out there, I love the trout derby.

SPEAKER_18: It's not quite your speed, but thank you for your service and excited for you and all the great free time that you'll fill up with all your things.

Unknown: I'll just be brief, but thank you, Farris.

SPEAKER_12: I know that the truck is gassed up and you're ready to get the road.

SPEAKER_12: So have a wonderful retirement.

SPEAKER_12: All right.

Unknown: Thank you very much.

SPEAKER_13: And so now we're going to be entering into closed session to discuss the following items.

SPEAKER_13: Announcement of closed session agenda of public employment pursuant to section 54957B1 of the government code, employment of CEO and general manager.

SPEAKER_13: No further business appearing.

SPEAKER_13: The board will now adjourn into closed session.

SPEAKER_13: Thank you very much.