MEETING MINUTES
BOARD OF DIRECTORS MEETING
THURSDAY, JULY 6, 2023
9:00 A.M.
___________________________________________________________
CALL TO ORDER
(9:05 a.m. - Video Time Stamp: 00:06:51)
Chair Fudge called the meeting to order.
Board Members present: Chair Fudge, Vice Chair Hopkins, and Directors Bagby, Ford, Barnacle, Elward, Rogers, Zollman, Farrar-Rivas, Strong, and Gjerde.
Staff present: Geof Syphers, Chief Executive Officer; Michael Koszalka, Chief Operating Officer; Stephanie Reynolds, Director of Internal Operations; Kate Kelly, Director of Public Relations and Marketing; Neal Reardon, Director of Regulatory Affairs; and Josh Nelson, Special Counsel.
BOARD OF DIRECTORS CONSENT CALENDAR
(9:06 a.m. - Video Time Stamp: 00:11:23)
1. Approve June 1, 2023, Draft Board of Directors Meeting Minutes
2. Receive Geothermal Opportunity Zone Update
3. Adopt Resolution Authorizing Investment of Monies in the Local Agency Investment Fund
Public Comment: None
Motion to approve the June 1, 2023, Board of Directors Consent Calendar by Director Barnacle
Second: Vice Chair Hopkins
AYES: Bagby, Ford, Barnacle, Elward, Rogers, Zollman, Farrar-Rivas, Strong, Fudge, Gjerde, Hopkins
BOARD OF DIRECTORS REGULAR CALENDAR
4. Receive Internal Operations and Monthly Financial Report and Provide Direction as Appropriate
(9:08 a.m. - Video Time Stamp: 00:13:39)
Stephanie Reynolds, Director of Internal Operations, introduced Zechariah Jones SCP’s new Customer Service Associate. She announced that SCP had been named a Gold Level Bicycle Friendly Business. Ms. Reynolds announced that the Town of Windsor voted to transition all accounts to EverGreen. Geof Syphers, CEO, discussed SCP’s Community Needs Assessments and stated that a presentation of the results would be held at a future meeting.
Director Zollman requested a list of interviewees for the transportation and mobility needs assessment.
Kate Kelly, Director of Public Relations and Marketing, discussed SCP’s community outreach and events, highlighting Sonoma County’s Pride Event, Adopt-a-Road trash removal, Cloverdale’s Friday Night Lights, Country Summer, and the upcoming Sonoma County Fair Hall of Flowers.
Director Elward recommended that the SCP team help at local foodbanks and CEO Syphers invited the Board to help as well. Director Farrar-Rivas added that she would like Sonoma Overnight Support added to the list.
CEO Syphers shared financial news stating that for the current fiscal year energy costs are trending lower. He discussed resource adequacy and stated that on June 6, 2023, the CPUC fined SCP $442,012 for being 1.5% short in the year-ahead filing for the month of July 2023 and 11% short for the month of August. This fine was levied because – even though SCP eventually completely filled its entire regulatory obligation – it was after the year-ahead deadline.
Director Ford asked if the cost to be compliant with the filing would have been higher than the penalty fine. CEO Syphers responded yes – in theory, however SCP was unable to purchase sufficient capacity at any cost for those months.
Public Comment: None
5. Receive Legislative and Regulatory Updates, Provide Direction and Approve Positions on Bills as Appropriate
(9:38 a.m. - Video Time Stamp: 00:43:40)
Neal Reardon, Director of Regulatory Affairs, discussed the Federal Energy Regulatory Commission (FERC) decision to allow PG&E to sell a minority 49% stake of its generating assets to an investor.
Director Bagby asked if the Potter Valley hydroelectric system was included in the decision and Director Reardon answered that it was. CEO Syphers added that PG&E would only be selling a minority interest which would allow PG&E to maintain control, likely meaning this deal would not significantly impact the outcome of the Potter Valley system. Director Rogers asked if this was another indicator of PG&E’s financial insolvency and CEO Syphers responded that it certainly indicated PG&E’s difficulty in raising cash to maintain its infrastructure. Director Rogers then asked if there is any impact to the current Wildfire Victims Trust and Director Reardon responded that it would help PG&E raise more capital without relying solely on issuing new equity and lowering the value of the Wildfire Victims Trust. Director Gjerde asked what the estimate for the PCIA buyout would generate in capital for PG&E and CEO Syphers responded that SCP had run the numbers during the last bankruptcy, and it was $17B at that time, while noting that the value today would be far lower.
CEO Syphers introduced Katherine Brandenburg, the Brandenburg Group, to give the legislative update. Ms. Brandenburg announced that the Governor’s Office and the Legislature reached a $310B budget deal and the Legislature had until September 15, 2023, to pass remaining bills. She said that Senator Dodd, Assembly Member Connelly, and Assembly Member Wood have been amazing to work with regarding CCA legislation. She said AB 50 (Wood) regarding public utilities would be heard the following week and AB 1373 (Garcia) had portions that would harm CCAs removed and was now in the Senate. CEO Syphers added that Senator McGuire really worked hard for CCAs in this legislative session.
Vice Chair Hopkins asked how SCP could be on the offense in support of CCAs and CEO Syphers responded that the good news is CCAs now have the ability to build legislative coalitions. Director Farrar-Rivas asked about the new Speaker of the Assembly’s knowledge of CCAs and Ms. Brandenburg responded that he has a lot of knowledge.
Public Comment: None
No bill positions were presented during the discussion therefore no vote of the Board was required for this item.
BOARD OF DIRECTORS MEMBER ANNOUNCEMENTS
(10:07 a.m. - Video Time Stamp: 01:12:27)
Director Barnacle announced that Petaluma would have the Petaluma Music Festival on July 29, 2023. Director Ford announced Cotati’s Kids Day.
Director Farrar-Rivas mentioned that the City of Sonoma was given a presentation regarding electrifying fire vehicles. Chair Fudge stated that the Sonoma Marin Area Rail Transit (SMART) has set ridership records and secured funding for the expansion to Healdsburg. Director Rogers added that the Youth Rider Free Program for SMART has added to the increase.
PUBLIC COMMENT ON MATTERS NOT LISTED ON THE AGENDA
(10:10 a.m. - Video Time Stamp: 01:15:38)
Public Comment: None
CLOSED SESSION
(10:11 a.m. - Video Time Stamp: 01:16:22)
Public Comment: None
10:11 a.m. Director Ford was replaced by Alternate Director Lemus.
The Board of Directors of the Sonoma Clean Power Authority will consider the following in closed session:
6. Conference with Labor Negotiators – Agency Designated Representatives:
Chair Fudge, Vice Chair Hopkins; Unrepresented Employee: Chief Executive Officer (Gov’t Code Section 54957.6)
No reportable action.
7. Public Employee Performance Evaluation – Chief Executive Officer (Gov’t Code Section 54957)
No reportable action.
ADJOURN
(10:12 a.m. - Video Time Stamp: 01:16:03)
The meeting was adjourned by unanimous consent to Closed Session. 11:56 a.m. Closed Session was adjourned.
Respectfully Submitted,
Darin A. Bartow, JD, Clerk of the Board