Board Policy Committee Meeting and Special SMUD Board of Directors' Meetin'g Date: Wednesday, April 18, 2018 Time: Scheduled to begin at 5:30 p.m. Location: SMUD Customer Service Center, Rubicon Room 6301 S Street, Sacramento, CA Powering forward. Together. *SMUff AGENDA BOARD POLICY COMMITTEE MEETING AND SPECIAL SMUD BOARD OF DIRECTORS MEETING Wednesday, April 18, 2018 SMUD Customer Service Center, Rubicon Room 6301 S Street, Sacramento, California Scheduled to begin at 5:30 p.m. This Committee meeting is noticed as a joint meeting with the Board of Directors for the purpose of compliance with the Brown Act. In order to preserve the function of the Committee as advisory to the Board, members of the Board may aftend and participate in the discussions, but no Board action will be taken. The Policy Committee will review, discuss and provide the Committee's recommendation on the following: DISCUSSION ITEMS 1. Jim Alves a. Accept the monitoring report for Strategic Direction SD-13, Economic Development Policy. b. Discuss, with possible amendment, Strategic Direction SD-13, Economic Development Policy. Presentation- 15 minutes Discussion.- 10 minutes 2. Maria Veloso Koenig a. Accept the monitoring report for Strategic Direction SD-14, System Enhancement. b. Discuss, with possible amendment, Strategic Direction SD-14, System Enhancement. Presentation- 10 minutes Discussion- 10 minutes 3. Bill Slaton Board monitoring: BL-1, Board-Chief Executive Officer and General Manager Relationship; BL-2, Board-Chief Legal Officer and General Counsel Relationship; BL-3, Board- Internal Auditor Relationship; BL-4, Board-Special Assistant Relationship. Presentation- 5 minutes Discussion: 5 minutes 4. Claire Rogers Approve revisions to Board-Staff Linkage BL-3, Board-internal Auditor Relationship. Presentation- 5 minutes Discussion: 5 minutes Board Policy Commiftee and Special SMUD Board of Directors Meeting Agenda Page 2 April 18, 2018 INFORMATIONAL ITEMS 5. Gregg Fishman Board Work Plan. Discussion: 5 minutes 6. Public Comment. 7. Bill Slaton Summary of Commiftee Direction. Discussion: 1 minute Members of the public wishing to address the Committee should complete a sign-up form available at the table outside of the meeting room. Members of the public shall have up to three (3) minutes to provide public comment. The total time allotted to any individual speaker shall not exceed nine (9) minutes for the entire Committee meeting time. Members of the public wishing to inspect public documents related to agenda items may call 916- 732- 7143 to arrange for inspection of the documents at the SMUD Customer Service Center, 6301 S Street, Sacramento, Califomia. NOTE: Accommodations are available for the disabled public. If you need a hearing assistance device or other aid, please call 916-732-6147 in advance of this Committee Meeting. SSS No. CEDEE 18-002 Committee Meeting & Date BOARD AGENDA ITEM Policy Committee STAFFING SUMMARY SHEET April 18, 2018 Board Meeting Date April 19, 2018 TO TO 1 Claire Rogers 6. Jennifer Davidson 2. Erica Manuel 7. 3. Farres Everly 8. 4. Nicole Howard 9. Legal 5. Paul Lau 10. CEO & General Manager No If no, Consent schedule a No (If no, explain in CostIBudgeted Yes Budgeted Yes Calendar dry run section) e ntation. MAIL DATE FROM (IPR) ]tPA`RTMENTsen a" EXT. STOP SENT Jim Alves EConomic Development A353 5477 4/6/2018 NARRATIVE: Requested Accept the monitoring report for Strategic Direction SD- 13, Economic Development. Action: Discuss, with possible action amendment, Strategic Direction SD- 13, Economic Development. Summary: The annual Economic Development Report summarizes accomplishments and status of SD- 13 performance by SMUD for the period of January I — December 31, 2017. Board Policy: SD-13 Economic Development policy states: "Promoting the economic vitality of our region and the growth (Number & Title) of our customer base is a key value of SMUD. Therefore, SMUD shall exercise strategic leadership and actively participate in regional economic development." Benefits: Provides information on SMUD's overall compliance with Economic Development to the Board of Directors and Executive Team so they can evaluate compliance with specific Board Policy; Provides an opportunity to make recommendations or policy revisions, as necessary. Cost/Budgeted: N/A Alternatives: Provide the Board with written reports and communication through the CEO & General Manager. Affected Board of Directors, Executive Team & staff. Parties: Coordination: Economic Development. The report includes updates primarily through key contacts in Customer & Community Services, Grid Assets, Local Govemment Relations, Resource Planning and Pricing, Research and Development; Workforce Development Presenter: Jim Alves, Economic Development Representative Additional Links: SACRAMENTO MUNICIPAL UTILITY DISTRICT OFFICE MEMORANDUM TO: Board of Directors DATE: April 11, 2018 FROM: Cliaire Rogers ~;), SUBJECT: Audit Report No. 28006764 Board Monitoring Report; SD-13: Economic Development Audit and Quality Services (AQS) reviewed the SD-13 Board Strategic Direction on Economic Development 2017 Annual Monitoring Report. AQS performed the following review steps: • Reviewed the information presented in the monitoring report to determine the possible existence of material misstatements', • Interviewed report contributors and verified the methodology used to prepare the monitoring report; and • VaJidated the reasonableness of a selection of the report's statements and assertions. During the course of the review, nothing came to the auditor's aftention that would suggest the report did not fairly represent the source data available at the time of the review. cc .. Arlen Orchard Board Monitoring Report 2017 SMUD SD-13, Economic Development * 1. Purpose & Background Strategic Direction 13 (SD-1 3) Economic Development states that, "Promoting the economic vitality of our region and the growth of our customer base is a key value of SMUD. Therefore, SMUD shall exercise strategic leadership and actively participate in regional economic development. Specifically: a) SMUD shall promote innovation while maintaining rate affordability and balancing the other strategic directions. b) SMUD shall align its economic development activities with regional economic development initiatives. c) SMUD shall assist in retaining, recruiting and growing commercial and industrial rate-paying customers. d) SMUD shall offer economic development rates and program incentives. e) SMUD shall offer a contracting program for certified small businesses who are rate-paying customers." 2. Executive summary SMUD is in compliance with SD-13, Economic Development. SMUD continues to be a nationally recognized leader in corporate citizenship for our long standing commitment to the economic health of the greater Sacramento region. In 2017, we continued our history of visible support for and engagement with the business community, with a focus on playing a greater role in policy discussions and strengthening relationships with local leaders. We developed key partnerships to further a shared vision, delivering greater collective impact. Our strategy to enhance the economic vitality of the Sacramento region is comprehensive. Key tactics to engage, inform and support the regional business community include: Supporting business formation, attraction, retention and expansion efforts. Providing business development resources for entrepreneurs. Improving the Supplier Education and Economic Development (SEED) contracting program for local small businesses. Continuing to offer economic development rates. Providing program incentives and rebates. GM 18-076 Board Monitoring Report — SD 13 Economic Development Page 1 of 16 Expanding partnerships with local agencies and non-profits to facilitate community development. Supporting the developer community. Broadening support of the region's emerging innovation ecosystem. Recognizing that innovation drives productivity in all industry sectors, we continued to engage with the region's emerging innovation ecosystem. Our important partnerships with Hacker Lab and InnoGrove continued, and we reestablished a partnership with CleanStart. We also continued exploring ways in which we could partner with 1/0 Labs and the iHub. In addition to supporting entrepreneurs and startups and local and regional innovation efforts, these partnership also complement SMUD's research and development program and the Innovation Generator partnerships while balancing other Strategic Directions, such as maintaining rate affordability. Through outreach and education, SMUD's SEED team teaches local small businesses how to contract with SMUD and positively impact their bottom line. In 2017, the SEED program partnered with Supply Chain Services, conducting a variety of outreach and education events and awarding 22.9% of SMUD's contracts to SEED-certified small businesses, exceeding the annual goal of 20%. 195 SEED contracts were awarded in 2017, totaling $58,150,545. SMUD works with numerous local economic development organizations to enhance regional economic vitality. Our leadership roles in the Greater Sacramento Economic Council, Sacramento Metro Chamber, Sacramento Hispanic Chamber, Sacramento Black Chamber, Valley Vision, Sacramento Asian Pacific Chamber, SacPACand many others help ensure our activities support the region's efforts to attract, retain and expand companies in our service area. It also means SMUD has a seat at the table early on in economic development conversations. Other major tactics to