1 The September 18, 2025,
Regular Meeting of the
Finance and Risk
Management Committee
will Begin Shortly
[email protected]
2 Finance and Risk
Management Committee
Regular Meeting
September 18, 2025
3 Welcome and Call to Order
4 Roll Call
55 6
Land Acknowledgement
7 Items to be Withdrawn or
Reordered on the Agenda
8 Public Comment on non-Agenda Items
9 Consent
Calendar
1 Approve August 21, 2025, Regular Meeting Minutes
10 Public Comment on Consent Calendar
11 Regular
Agenda
Recommend Board Adoption of Resolution No. 2025-
__, Authorizing the Investment of Monies in Local
Agency Investment Fund (LAIF)
2 3
Treasurer’s Report for Fiscal Year Ending June 30, 2025 4 5
Recommend Board Adoption of Resolution No.
2025__, Approving Revisions to the Non-Energy
Procurement Policy
Recommend Board Adoption of Resolution No.
2025__, Approving Revisions to the Delegated
Contract Authority Policy and Rescinding Resolution
No. 2022-10
5 Recommend Board Adoption of Resolution No.
2025__, Approving Revisions to the Delegated
Contract Authority Policy and Rescinding Resolution
No. 2022-10
12 Item No. 2
Treasurer’s Report for
Fiscal Year Ending June
30, 2025
Recommendation:
Receive and File Treasurer’s Report for Fiscal
Year Ending June 30, 2025.
Presenter:
Dr. Eric Washington, Chief Financial Officer/Treasurer
13 Results for the period overperformed overall
compared to the amended budget:
• Net operating revenues 1.6 percent over
budget.
• Operating expenses came in
(5.0) percentage points under budget.
Financial results for the YTD FY25:
• $1,241.3M in net operating revenues
• $1,129.2M in total expenses (includes
energy costs of $1,083.6M or 87% of net
revenues)
• $112.0M change in YTD net position
YTD FY25 Budget v. Actual
Item 1: Treasurer’s report
Budget Comparison
YTD FY25 as of 6/30/25
(12 months)
FY25 YTD Budget
Amended Budget Variance ($) Budget (%)
Net Operating Revenues $ 1,241,251,729 $ 1,221,258,173 $ 19,993,556 101.6% Total Expenses $ 1,129,216,882 $ 1,187,090,170 $ (57,873,288) 95% Change in Net Position $ 112,034,847 $ 34,168,003 $ 77,866,844 $-
$200,000,000
$400,000,000
$600,000,000
$800,000,000
$1,000,000,000
$1,200,000,000
$1,400,000,000
Net Operating Revenues Total Expenses Change in Net Position YTD FY25 Results v. Budget
YTD FY25 as of 6/30/25 (12 months) FY25 YTD Budget Amended 14 $M $50M $100M $150M $200M
$M $200M $400M $600M
$112M
Reserve
Contribution
FY 2024-25 YTD
$576M
Total Liquidity
FY 2024-25 YTD
$0M
Outstanding
Debt
FY 2024-25 YTD
63%
Percent Reserve
Goal Met
FY 2024-25
CONTRIBUTION RESERVES
GOAL DEBT
Reserve contribution
for the fiscal year
Outstanding loans
FY25 YTD
Total available
liquidity FY25 YTD
$575M 180-DCOH
Reserve Target FY25
$575M
$112M Actual
FYTD $34M Budget
FYTD
$364M
Cash + Investments
$212
LOC
$M $20M $40M $60M
Item 1: Treasurer’s report
15 114
Days
Cash on Hand
180
Days
Cash on Hand with
Total Liquidity
Item 1: Treasurer’s report
16 Item 1: Treasurer’s report
17 INVESTMENT REPORT
San Diego Community Power | As of June 30, 2025
CHANDLER ASSET MANAGEMENT | chandlerasset.com
Chandler Team:
For questions about your account, please call (800) 317-4747, or contact [email protected]
Information contained herein is confidential. We urge you to compare this statement to the one you receive from your qualified custodian. Please see Important Disclosures at the end of the statement. 18 ECONOMIC UPDATE
19 -400
-200
0 200
400
600
800
1,000
MOM Change In Thousands (000's)
Nonfarm Payroll (000's)
Non-farm Payroll (000's)
3-month average (000's)
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
Unemployment Rate
Underemployment Rate (U6)
Unemployment Rate (U3)
Rate (%)
The U.S. economy added 147,000 jobs in June, exceeding consensus expectations, and the last two months were revised up by 16,000.
Gains were primarily driven by state and local government education, while job growth in service sectors languished. The three-month moving average and six-month moving average payrolls totaled 150,000 and 130,000 respectively. The unemployment rate declined to
4.1% in June from 4.2% in May, due to a shrinking labor force. The labor participation rate dipped to 62.3%, remaining below the pre-pandemic level of 63.3%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons dropped to 7.7% in June. Average hourly earnings fell slightly, marking a 3.7% year-over-year increase.
Source: US Department of Labor Source: US Department of Labor
EMPLOYMENT
20 10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Consumer Price Index (CPI)
CPI YOY % Change
Core CPI YOY % Change
YOY (%) Change
10.0%
9.0%
8.0%
7.0%
6.0%
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Personal Consumption Expenditures (PCE)
PCE Price Deflator YOY % Change
PCE Core Deflator YOY % Change
Fed Target
YOY (%) Change
In June, the Consumer Price Index (CPI) increased 0.3% month-over-month and rose 2.7% year-over-year, while the Core CPI rose 0.2% month-over-month and 2.9% year-over-year. The Personal Consumption Expenditures (PCE) price index increased 0.1% month-over-month and rose 2.3% year-over-year in May. The Core PCE deflator, which excludes food and energy and is the Fed’s preferred gauge, increased
0.2% month-over-month and 2.7% year-over-year, up from April’s 2.6% year-over-year increase. Although inflation has trended toward the Federal Reserve’s 2% target, the overall impact of tariff policy has not yet fully flowed through to the US economy.
Source: US Department of Labor Source: US Department of Commerce
INFLATION
21 Source: Federal Reserve Source: Bloomberg
10,000,000
9,000,000
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0 Federal Reserve Balance Sheet Assets
Recession
In $ millions
As broadly anticipated, the Federal Open Market Committee (FOMC) left the Federal Funds Rate unchanged at the range of 4.25 - 4.50% at the June meeting. In the Summary of Economic Projections (SEP), Federal Reserve officials continued to pencil in two rate cuts in 2025, while downgrading estimates for economic growth and raising forecasts for both unemployment and inflation this year. The statement indicated that uncertainty about the economic outlook remained elevated but had diminished. The monthly redemption cap on Treasuries will remain at $5 billion, while the cap on agencies and mortgage-backed securities will be maintained at $35 billion. Since the Fed began its Quantitative Tightening campaign in June 2022, securities holdings have declined by about $2.2 trillion to approximately $6.7 trillion.
FEDERAL RESERVE
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Effective Federal Funds Rate
Recession
Yield (%)
22 Source: Bloomberg Source: Bloomberg
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Note Yields
2-Year
5-Year
10-Year
Yield (%)
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
US Treasury Yield Curve
Jun-25
Mar-25
Jun-24
Yield (%)
At the end of June, the 2-year Treasury yield was 103 basis points lower, and the 10-Year Treasury yield was 17 basis points lower, year-over-year. The spread between the 2-year and 10-year Treasury yield points on the curve edged up to +51 basis points at June month-end versus +50 basis points at May month-end. The recent yield curve inversion which began in July 2022 was historically long. The average historical spread (since 2005) is about +99 basis points. The spread between the 3-month and 10-year Treasury yield points on the curve was -7 basis points in June, versus -6 basis points in May.
BOND YIELDS
23 ACCOUNT PROFILE
24 OBJECTIVES
Investment Objectives
The investment objectives of the San Diego Community Power are first, to provide safety of principal to ensure the preservation of capital in the overall portfolio;second, to provide sufficient liquidity to meet all disbursement requirements; and third, to earn an acceptable rate of return afterfirst considering safety of principal and liquidity.
Chandler Asset Management Performance Objective
The performance objective forthe portfolio isto earn a totalrate of return through a market cycle that is equal to or above the return on the benchmark index.
Strategy
In orderto achieve this objective, the portfolio investsin high-quality fixed income securities that comply with the investment policy and all regulations governing the funds. 25 PORTFOLIO CHARACTERISTICS
San Diego Community Power ConsAgg | Account #11452 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 0.61 2.74
Average Modified Duration 0.51 2.27
Average Purchase Yield 3.30% 4.27%
Average Market Yield 3.24% 4.18%
Average Quality** AA AA+
TotalMarket Value 375,401,149 71,846,114
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 26 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg| Account #11452| As of June 30, 2025 RulesName Limit Actual Complianc e
Status
Notes
AGENCY MORTGAGE SECURITIES (CMOS)
Max% (MV) 100.0 2.2 Compliant
Max% Issuer (MV) 30.0 2.2 Compliant
Max Maturity (Years) 5.0 5.0 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
ASSET-BACKED SECURITIES (ABS)
Max% (MV) 20.0 1.7 Compliant
Max% Issuer (MV) 5.0 0.1 Compliant
Max Maturity (Years) 5.0 4.8 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
BANKERS' ACCEPTANCES
Max% (MV) 40.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 180.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant
CERTIFICATE OF DEPOSIT PLACEMENT SERVICE
Max% (MV) 50.0 40.9 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
COLLATERALIZED BANK DEPOSITS
Max% (MV) 100.0 29.2 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
COLLATERALIZED TIME DEPOSITS
(NON- NEGOTIABLE CD/TD)
Max% (MV) 100.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1) 0.0 0.0 Compliant
COMMERCIAL PAPER
Max% (MV) 25.0 0.0 Compliant
27 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg| Account #11452| As of June 30, 2025 RulesName Limit Actual Complianc e
Status
Notes
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Days) 270.0 0.0 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
CORPORATE MEDIUM TERM NOTES
Max% (MV) 30.0 4.7 Compliant
Max% Issuer (MV) 5.0 0.3 Compliant
Max Maturity (Years) 5.0 4.9 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
FDIC INSURED TIME DEPOSITS (NON-NEGOTIABLE
CD/TD)
Max% (MV) 100.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
FEDERAL AGENCIES
Max% (MV) 100.0 0.2 Compliant
Max% Issuer (MV) 30.0 0.1 Compliant
Max Maturity (Years) 5.0 2.1 Compliant
Min Rating (A-1 by 1,A- by 1) 0.0 0.0 Compliant
LOCAL AGENCY INVESTMENT FUND (LAIF)
Max% (MV) 100.0 0.0 Compliant
MONEY MARKET MUTUAL FUNDS
Max% (MV) 20.0 0.2 Compliant
Max% Issuer (MV) 20.0 0.2 Compliant
Min Rating (AAA by 2) 0.0 0.0 Compliant
MORTGAGE-BACKED SECURITIES (NON-AGENCY)
Max% (MV) 20.0 0.0 Compliant
Max% Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
28 STATEMENT OF COMPLIANCE
San Diego Community Power ConsAgg | Account #11452 | As of June 30, 2025 RulesName Limit Actual Complianc
e
Status
Notes
MUNICIPAL SECURITIES (CA, LOCAL AGENCY)
Max % (MV) 30.0 0.2 Compliant
Max % Issuer (MV) 5.0 0.2 Compliant
Max Maturity (Years) 5.0 4.3 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
MUNICIPAL SECURITIES (CA, OTHER STATES)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A- by 1) 0.0 0.0 Compliant
NEGOTIABLE CERTIFICATES OF DEPOSIT (NCD)
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 5.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (A-1 or A- by 1) 0.0 0.0 Compliant
SRI PROHIBITED INVESTMENTS
Prohibited Investment - Fossil Fuels 0.0 0.0 Compliant
SUPRANATIONAL OBLIGATIONS
Max % (MV) 30.0 0.0 Compliant
Max % Issuer (MV) 10.0 0.0 Compliant
Max Maturity (Years) 5.0 0.0 Compliant
Min Rating (AA- by 1) 0.0 0.0 Compliant
U.S. TREASURIES
Max % (MV) 100.0 9.9 Compliant
Max Maturity (Years) 5.0 4.9 Compliant
Min Rating (A-1 by 1, A- by 1) 0.0 0.0 Compliant
29 PORTFOLIO CHARACTERISTICS
San Diego Community Power | Account #11293 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 3.18 2.93
Average Modified Duration 2.67 2.45
Average Purchase Yield 4.29% 4.36%
Average Market Yield 3.99% 3.84%
Average Quality** AA AA+
TotalMarket Value 72,406,555 61,415,076
*Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index **The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 30 SECTOR DISTRIBUTION
San Diego Community Power | Account #11293 | As of June 30, 2025 Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
US Treasury 51.91% 53.70%
Corporate 24.40% 23.09%
Agency CMBS 11.29% 11.57%
ABS 8.91% 7.78%
Agency 1.25% 2.30%
Muni Bonds 1.22% 1.42%
Money Mkt Fd 1.00% 0.14%
31 QUALITY DISTRIBUTION
Rating 06/30/2025 03/31/2025
AAA 8.42% 15.46%
AA 64.71% 58.96%
A 22.39% 20.65%
BBB 1.29% 1.49%
NA 3.19% 3.44%
Rating 06/30/2025 03/31/2025
AAA 8.62% 64.55%
AA 66.01% 5.26%
A 21.23% 27.44%
NA 4.13% 2.75%
Rating 06/30/2025 03/31/2025
AAA 14.24% 20.61%
AA 67.43% 63.21%
A 9.69% 9.11%
NA 8.63% 7.07%
San Diego Community Power | Account #11293 | As of June 30, 2025 S&P Rating Moody’sRating Fitch Rating
32 0-.25 .25-.5 .5-1 1-2 2-3 3-4 4-5 5-7 7+
Portfolio 1.0% 0.0% 2.5% 29.4% 27.6% 27.1% 12.4% 0.0% 0.0% ICE BofA 1-5 YearUnsubordinated US Treasury
& Agency Index 0.0% 0.1% 2.6% 34.9% 27.8% 23.4% 11.1% 0.0% 0.0%
DURATION DISTRIBUTION
San Diego Community Power | Account #11293 | As of June 30, 2025 Portfolio Compared to the Benchmark
33 3 Months 12 Months 2 Years 3 Years 5 Years 10 Years Since Inception
TOTAL RATE OF RETURN
San Diego Community Power 1.51% 2.96%
Benchmark 1.36% 2.60%
*Periods over 1 year are annualized.
Benchmark: ICE BofA 1-5 Year Unsubordinated US Treasury & Agency Index Total rate of return: A measure of a portfolio’s performance over time. It isthe internal rate of return, which equates the beginning value of the portfolio with the ending market value; it includes interest earnings, realized and unrealized gains and losses in the portfolio.
INVESTMENT PERFORMANCE
San Diego Community Power | Account #11293 | As of June 30, 2025 Total Rate of Return : Inception | 10/01/2024
34 PORTFOLIO CHARACTERISTICS
San Diego Community Power Reporting | Account #11451 | As of June 30, 2025 6/30/2025
Portfolio
3/31/2025
Portfolio
Average Maturity (yrs) 0.00 --
Average Modified Duration 0.00 --
Average Purchase Yield 3.06% --
Average Market Yield 3.06% --
Average Quality** NA --
TotalMarket Value 302,994,594 --
*Benchmark: NO BENCHMARK REQUIRED
**The credit quality is a weighted average calculation of the highest of S&P, Moody’s and Fitch. 35 SECTOR DISTRIBUTION
San Diego Community Power Reporting | Account #11451 | As of June 30, 2025 Sector as a Percentage of Market Value
Sector 06/30/2025 03/31/2025
Placement Service Deposit 50.59% --
Collateralized Bank Deposit 36.09% --
Cash 13.32% --
36 IMPORTANT DISCLOSURES
2025 Chandler Asset Management, Inc, An Independent Registered Investment Adviser.
Information contained herein is confidential. Prices are provided by ICE Data Services Inc (“IDS”), an independent pricing source. In the event IDS does not provide a price or if the price provided is not reflective of fair market value, Chandler will obtain pricing from an alternative approved third party pricing source in accordance with our written valuation policy and procedures. Our valuation procedures are also disclosed in Item 5 of our Form ADV Part 2A.
Performance results are presented gross-of-advisory fees and represent the client’s Total Return. The deduction of advisory fees lowers performance results. These results include the reinvestment of dividends and other earnings. Past performance may not be indicative of future results. Therefore, clientsshould not assume that future performance of any specific investment or investment strategy will be profitable or equal to past performance levels. All investment strategies have the potential for profit or loss. Economic factors, market conditions or changes in investment strategies, contributions or withdrawals may materially alter the performance and results of your portfolio.
Index returns assume reinvestment of all distributions. Historical performance results for investment indexes generally do not reflect the deduction of transaction and/or custodial charges or the deduction of an investment management fee, the incurrence of which would have the effect of decreasing historical performance results. It is not possible to invest directly in an index.
Source ICE Data Indices, LLC (“ICE”), used with permission. ICE permits use of the ICE indices and related data on an “asis” basis; ICE, its affiliates and their respective third party suppliers disclaim any and all warranties and representations, express and/or implied, including any warranties of merchantability or fitness for a particular purpose or use, including the indices, index data and any data included in, related to, or derived therefrom. Neither ICE data, its affiliates or their respective third party providers guarantee the quality, adequacy, accuracy, timeliness or completeness of the indices or the index data or any component thereof, and the indices and index data and all components thereof are provided on an “asis” basis and licensee’s use it at licensee’s own risk. ICE data, its affiliates and their respective third party do not sponsor, endorse, or recommend chandler asset management, or any of its products or services.
Thisreport is provided for informational purposes only and should not be construed as a specific investment or legal advice. The information contained herein was obtained from sources believed to be reliable as of the date of publication, but may become outdated or superseded at any time without notice. Any opinions or views expressed are based on current market conditions and are subject to change. Thisreport may contain forecasts and forward-looking statements which are inherently limited and should not be relied upon as indicator of future results. Past performance is not indicative of future results. Thisreport is not intended to constitute an offer,solicitation, recommendation or advice regarding any securities or investment strategy and should not be regarded by recipients as a substitute for the exercise of their own judgment.
Fixed income investments are subject to interest, credit and market risk. Interest rate risk: the value of fixed income investments will decline as interest rates rise. Credit risk: the possibility that the borrower may not be able to repay interest and principal. Low rated bonds generally have to pay higher interest rates to attract investors willing to take on greater risk. Market risk: the bond market in general could decline due to economic conditions, especially during periods of rising interest rates.
Ratingsinformation have been provided by Moody’s, S&P and Fitch through data feeds we believe to be reliable as of the date of thisstatement, however we cannot guarantee its accuracy.
Security level ratingsfor U.S. Agency issued mortgage-backed securities (“MBS”)reflect the issuer rating because the securities themselves are not rated. The issuing U.S. Agency guarantees the full and timely payment of both principal and interest. 37 BENCHMARK DISCLOSURES
Benchmark Disclosure
ICE BofA 1-5 Yr Unsubordinated US
Treasury &Agency Index
The ICE BofA 1-5 Year UnsubordinatedUS Treasury & Agency Index tracks the performance of US dollar denominated US Treasury and nonsubordinated US agency debt issued in the US domestic market. Qualifying securities must have an investment grade rating (based on an average of Moody’s, S&P and Fitch). Qualifying securities must have at least one year remaining term to final maturity and less than five years remaining term to final maturity, at least 18 monthsto maturity at time of issuance, a fixed coupon schedule, and a minimum amount outstanding of $1 billion forsovereigns and $250 million for agencies.
38 Public Comment on
Item No. 2
39 Item No. 2
Committee Members
Comments or
Questions
Treasurer’s Report for Fiscal
Year Ending June 30, 2025
Recommendation:
Receive and file Treasurer’s Report
for Fiscal Year Ending June 30,
2025.
40 Item No. 3
Recommend Board Adoption
of Resolution No. 2025-__,
Authorizing the Investment
of Monies in Local Agency
Investment Fund (LAIF)
Presenter:
Dr. Eric Washington, Chief Financial Officer/Treasurer
Recommendation: Receive and file
Community Power’s revisions to the existing
Net Energy Metering Tariff/Program (NEM)
and to the existing Net Billing Tariff (NBT) and
Community Power’s establishment of the new
Net Billing Tariff Virtual (NBT-V) and a Net
Billing Tariff Aggregation (NBT-A) for all new
customers who elect this and who have
installed onsite generation on or after
February 15, 2024 that qualifies for the tariff
and for existing customers transitioning out of
the Virtual Net Energy Metering Tariff (VNEM)
or the Net Energy Metering Aggregation Tariff
(NEMA) following the conclusion and/or
termination of their 20-year VNEM or NEMA
legacy period.
Recommendation:
Recommend the adoption of Resolution No.
2025-__ Authorizing investment of monies in
the Local Agency Investment Fund (LAIF).
41 Local Agency Investment Fund (LAIF)
Risk Management
Established in 1977 under Section 16429.1 et
seq. of the California Government Code,
Created by State of CA to offer local agencies
safe and convenient way to invest reserves.
LAIF is permissible under Community Power’s
Investment Policy.
LAIF Background
Benefits Metrics
Allows Community Power to invest monies in
a secure and liquid investment vehicle.
Funds deposited in LAIF are pooled with
funds from other local agencies and managed
by the State Treasurer’s investment staff.
Oversight is provided by the Pooled Money
Investment Board (PMIB).
PMIB includes the State Treasurer, Director
of Finance, and State Controller.
Through July 2025, LAIF serves over 2,300
participants with assets totaling $22.3
billion.
San Diego County participates in LAIF. San
Diego County Water Authority often include
LAIF as part of their investment strategy
42 LAIF Parameters
Maximum Amount
$75,000,000
LAIF accounts
are subject to a
$75 million cap
Monthly Transactions
15 Maximum
No more than 15
transactions are
allowed per month
43 Public Comment on
Item No. 3
44 Item No. 3
Committee Members
Comments or
Questions
Recommend the adoption of
Resolution No. 2025-__
Authorizing investment of
monies in the Local Agency
Investment Fund (LAIF)
Recommendation:
Recommend the adoption of Resolution No.
2025-__ Authorizing investment of monies
in the Local Agency Investment Fund (LAIF).
45 Item No. 4
Recommend Board
Adoption of Resolution No.
2025__, Approving
Revisions to the Non-Energy
Procurement Policy
Recommendation:
Recommend Board Adoption of Resolution
No. 2025__, Approving Revisions to the Non-Energy Procurement Policy Presenters:
Tim Manglicmot, Director of Finance
Christopher Stephens, Procurement Manager
46 Current Non-Energy Public Contracting Policy
What is the Non- Energy Public
Contracting Policy
Purpose: Establishes competitive
solicitation and procurement
standards for non-energy goods and
services.
Methods: Includes use of:
• No Bids (Contracts under $10K)
• Informal Quotes
• Formal Solicitations (RFPs/RFQs)
Includes exceptions for emergencies,
sole source procurements, and inter-agency agreements
What is the CEO’s
Delegated
Expenditure Authority
Board-Approved Delegation:
• CEO has authority to approve
contracts up to $125,000.
• CEO has authority to increase
existing non-energy contracts by
up to 10% of their original Not-to-Exceed amount.
• Delegate authority up to $50,000
to senior staff.
Additional Powers:
• CEO has authority to approve
scope changes up to 25% of the
original scope.
Why Do These
Policies Need to Be
Updated?
Last updated in July 2022
• Thresholds have not kept pace
with:
• SDCP’s growth and increased
contract volume
• Inflation and rising market costs
• The need for greater agility and
efficiency
Impacts:
• Increased administrative burden
• Slower procurement cycles
• Barriers for small and local
businesses
47 Proposed Policy Updates
• Key Highlights
o New structure separates competitive, non-competitive, and sole-source procurement sections for easier reference.
o RFP or RFQ now required for contracts
over $150,000 (previously the threshold
was over $125,000).
o Written quotes now required for
contracts over $10,000 (previously
allowed verbal quotes up to $49,999.99).
o Clarified rules against split purchases to
avoid threshold circumvention.
o Added Protest Procedure for vendor
challenges.
o Clearer criteria and documentation
standards for sole-source awards.
Procurement of Goods & General Services
Competitive Solicitation Type Current Policy Proposed Update No competitive solicitation required
Contracts less than $10,000
Renting or Leasing Equipment
Approved Sole Source Request
Emergency Contracts
Contracts less than $10,000
Renting or Leasing Equipment
Approved Sole Source Request
Emergency Contracts
Legal Services Agreements
Request for Verbal Quotes or Bids Contracts between $10,000 and $49,999
Consolidated into Written quote
category
Request for Written Quotes or Bids Contracts between $50,000 and $125,000
Contracts between $10,000 and
$150,000
RFP or RFQ Contracts Exceeding $125,000 Contracts Exceeding $150,000 Cooperative Procurement N/A No competitive procurement is required
Piggybacking Procurement N/A No competitive procurement is required
Sole Source Authorized Authorized - additional clarity
provided
48 Public Comment on
Item No. 4
49 Item No. 4
Committee Members
Comments or
Questions
Recommend Board Adoption of
Resolution No. 2025__, Approving
Revisions to the Non-Energy
Procurement Policy
Recommendation:
Recommend Board Adoption of Resolution No.
2025__, Approving Revisions to the Non-Energy
Procurement Policy
50 Item No. 5
Recommend Board Adoption
of Resolution No. 2025__,
Approving Revisions to the
Delegated Contract Authority
Policy and Rescinding
Resolution No. 2022-10
Recommendation:
Recommend Board adoption of Resolution
No. 2025-__, approving revisions to the
delegated contract authority policy and
rescinding Resolution No. 2022-10.
Presenters:
Tim Manglicmot, Director of Finance
Christopher Stephens, Procurement Manager
51 Policy Review
Internal Policy
Review
Joint Powers
Agreement
Policy
Recommendations
Section 3.2.12
The Board may adopt rules, regulations,
policies, bylaws and procedures
governing operations.
Section 4.5.5
One of the general purposes of the
Board is to set policy.
Community Power did an internal
review of policies to determine
policy gaps.
Community Power conducted a holistic internal review of policies to determine gaps and subsequent policy recommendations to the Board.
The analysis of policies identified
the need to adopt a policy
governing the disposal of surplus
property.
52 Recommended Revisions
1. Non-dollar value
agreements –
delegated to CEO
or designee
2. Allow staff to apply
for grant funding
3. CEO signature
authority
delegation to
executive team
4. Delegated contract
authority to CEO
increased to
$150,000
5. Rename policy to
Delegated Contract
and Signature
Authority Policy
6. Clarifying and
Administrative edits
53 Public Comment on
Item No. 5
54 Recommendation:
Recommend Board Adoption of Resolution No.
2025__, Approving Revisions to the Delegated
Contract Authority Policy and Rescinding Resolution
No. 2022-10
Item No. 5
Committee Members
Comments or
Questions
Recommend Board Adoption of
Resolution No. 2025__, Approving
Revisions to the Delegated Contract
Authority Policy and Rescinding
Resolution No. 2022-10
55 Committee Member Announcements
56 Adjournment
57 Next Regular Finance and
Risk Management
Committee Meeting
October 16, 2025
[email protected]
58 We are experiencing technical difficulties.
Please be assured that we are working to
resolve the issue and meeting will
resume shortly.
Thank you.