A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the District offices, 1200 Fort Vancouver Way, Vancouver, Washington, on Tuesday, the 12th day of April at the hour of 9:00 a.m. Present: President Nancy Barnes, Vice President Jane Van Dyke, Secretary Jim Malinowski, Commissioners; CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Water Doug Quinn, Director of Operations Dan Krebs, Director of Customer Service Lisa Fix, Director of Engineering Cal Morris, Director of Information Services Mike Harris, Director of Energy Resources Dan Bedbury, Corporate Communications Manager Erica Erland, Materials and Purchasing Manager Cathy Wannamaker, Civil Engineer-Water Russ Knutson, Civil Engineer – Water Barry Lovingood and Assistant to CEO/General Manager Margaret Anderson.
Press Representatives: None
Others Present: Mike Lyons, Rick Syring, Steve Howland, Robert Schaefer and Cassi Marshall (Materials A)
The order of business recorded below reflects the published agenda (Materials B)
At 9:00 a.m., President Barnes called the meeting to order for the transaction of formal business.
Consideration of the Minutes of March 22, 2016
There were no changes or corrections.
Consideration of Accounts Payable
The Board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated April 12, 2016 from the District Auditor:
Electric Revenue Fund – $23,633,413.59
Water Revenue Fund – $213,173.68
Generating System Fund – $1,065,386.26
For a total of $24,911,973.53
Consideration of Resolution Regarding Initiative 732
CEO/General Manager Wayne Nelson reviewed the resolution prepared by staff regarding Initiative 732 “The Carbon Pollution Tax Act” (Materials C). This draft resolution was created at the request of the Commissioners. Mr. Nelson added that the utility worked with the High Tech Council during the legislative session regarding the Initiative process and the High Tech Council recently had a resolution drafted and signed by their board in opposition to the Initiative.
Legal council representative for the High Tech Council Mr. Robert Schaefer took the podium, read their resolution, and urged the Clark Public Utilities Board of Commissioners to do the same in signing a resolution opposing Initiative 732.
Following discussion the board agreed they would like to consider a resolution but needed more time to review the prepared resolution presented. They deferred possible action to the next board meeting on Tuesday, April 26 and will forward comments to Mr. Nelson prior to that meeting.
Commissioner Malinowski would like the utility to do some additional outreach to organizations that might also be interested in the Board’s action as it relates to Initiative 732.
Consideration of Intent to Establish LUD Nos. 1244 and 1247
Director of Engineering Cal Morris addressed the Board regarding the Intent to Establish Local Utility District Nos. for street lighting.
Resolution No. 7260 – LUD No. 1244 – Winston Estates
Resolution No. 7261 – LUD No. 1247 – Pleasant View Estates PH 1
After the presentation by Mr. Morris, Commissioner Barnes opened for comment. There being no public comment, a motion was made by Commissioner Malinowski, seconded by Commissioner Van Dyke and it was unanimously carried that Resolution Nos. 7260 and 7261 be adopted and a public hearing was set for May 10, 2016 (Materials D).
Consideration of Resolution for Sole Source Designation Itron
Materials and Purchasing Manager Cathy Wannamaker reviewed a memo dated April 12, 2016 (Materials E). The request by the Water Services Department is for a sole source designation for the purchase of 100W+ ERT’s (Encoder, Receiver, Transponder) modules manufactured by Itron, Inc. Water Services has determined that the Itron 100W+ ERT endpoint modules are the only units compatible with the utility’s existing water meters, meter reading equipment and software. For this reason staff is requesting the board approve sole source designation for Itron. Commissioner Van Dyke made a motion to grant sole source designation to Itron for the purchase of 100W+ ERT modules; it was seconded by Commissioner Barnes, and unanimously carried that Resolution No.7259 be adopted.
Consideration of Bid Award No 984 – Substation Power Transformer
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated April 12, 2016, which detailed the bid results (Materials F). Commissioner Malinowski moved to recommend that Bid No. 984 be awarded to Virginia Transformer Corporation for the purchase one 115kV, 20/27/33 MVA with Reinhausen RMV-II Load Tap Chanter in the amount of $$496,684.00. This would include a fixed amount of $12,500.00 for field service assembly and testing when the unit is put into service. The total contract award will be $509,184.00. Commissioner Van Dyke seconded the motion. The motion passed unanimously.
Consideration of Bid Award No 985 – NE 119th St & NE 172nd Ave Water Main Replacement Project
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated April 12, 2016, which detailed the bid results (Materials G). Commissioner Van Dyke moved to recommend that Bid No. 985 be awarded to Tapani, Inc. in the amount of $333,333.33 plus applicable taxes. Commissioner Malinowski seconded the motion. The motion passed unanimously.
Consideration of 2015 Revolving Funds
Director of Finance Rick Dyer addressed the board, (Materials H). Mr. Dyer led a discussion regarding the 2015 surplus revenue and rate stabilization fund with the board. Currently the fund holds $50.4 million, an amount staff is comfortable with in the event of unforeseen events that would affect cash flow.
There remains nearly $14.5 million of surplus at the close of books for 2015 that is currently not allocated. Staff is recommending those funds be carried into 2016 to cover anticipated capital costs (allowing us to postpone a bond issue until later in 2016), and self-funded insurance operating reserves.
After further discussion by the board, Commissioner Malinowski moved to keep funds in our revolving account for the following designated purpose: $9.1 million for capital requirements, $1.5 million be designated to be used for self-funded insurance operating reserves, and the balance to remain as working capital in the revolving fund. Commissioner Van Dyke seconded the motion and it passed unanimously.
Mr. Dyer then reviewed the new requirements surrounding the utility’s pension accounting, and the new standard that recognizes current and future pension obligations. Staff recommended that Clark Public Utilities recognize the expense and record it using regulatory accounting treatment. Commissioner Van Dyke moved to approve staff recommendation of using regulatory accounting treatment when recognizing current and future pension obligations, Commissioner Malinowski seconded the motion it passed unanimously.
Commissioner Reports and Comments
Commissioners Malinowski and Van Dyke reported they would be attending the Washington PUD Association meetings later in the week. Commissioner Barnes reported on her attendance at the Public Power Council meetings.
Director of Information Services Mike Harris gave an update on cyber-security and the utility’s defense measures, noting that it is a continual process but one that is managed aggressively and proactively (Materials I).
Other Business before the Board
Member of the public Steve Howland addressed the board concerning the construction of his family’s new home and the planned installation of underground service as opposed to overhead service. Mr. Howland had concerns surrounding the cost and need to go underground. CEO/General Manager Wayne Nelson and Director of Engineering Cal Morris agreed to meet with Mr. Howland directly following the meeting to work out the details of the construction plan.
There being no further business before the Board, the meeting was adjourned at 11:25 a.m.