Meeting of Commissioners
Public Utility District No. 1 of Clark County, Washington
August 23, 2016

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 23rd day of August 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 Operations Dan Krebs, Director of Energy Resources Dan Bedbury, Director of Customer Service Lisa Fix, Materials and Purchasing Manager Cathy Wannamaker, Water Office Supervisor Lori Wyrick, Civil Engineer – Water Russ Knutson, Energy Resource Manager Terry Toland, Manager of Energy Planning and Operations Tom Haymaker, Corporate Communications Manager Erica Erland, and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: Sid Sutherland

Others Present: Mike Lyons, (Materials A)

At 9:00 a.m., President Barnes called the meeting to order for the transaction of formal business and the board approved the agenda as the order of business. (Materials B).

Consideration of the Minutes of August 9, 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 August 23, 2016, from the District Auditor:

Electric Revenue Fund – $15,941,841.35
Water Revenue Fund – $332,876.12
Generating System Fund – $381,815.45

For a total of $16,656,532.92

July Service Award Presentation
CEO/General Manager Wayne Nelson introduced John Eldridge, Senior Legal Counsel. John was recognized for 20 years of service with the utility (Materials C).

Service Remodel Update
Director of Customer Service Lisa Fix gave the board an overview of the upcoming customer service and ComCare remodel (Materials D). Commissioners were shown design plans and a summary of the associated costs. Ms. Fix explained that in addition to improvements to the work space, aesthetically and functionally, the remodel will also improve employee safety and the overall customer service experience.

The new ComCare space is expected to open to customers in early 2017.

Consideration of Bid Award 993 – Electric Center Renovation
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated August 23, 2016, detailing the bid results (Materials E). Commissioner Malinowski moved to recommend that Bid No. 990 be awarded to TEAM Construction LLC in the amount of $482,499 plus applicable taxes. Commissioner Van Dyke seconded the motion, it passed unanimously.

Consideration of Bid Award 991 – Residential Revenue Meters
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated August 23, 2016, detailing the bid results (Materials F). Commissioner Van Dyke moved to recommend that Bid No. 991 be awarded to Landis+Gyr Technology, Inc. for the purchase of 2S and 12S residential revenue meters in the amount of $306,600 plus applicable taxes. Commissioner Malinowski seconded the motion, it passed unanimously.

Consideration of Bid Award 996 NE 258th St. Water Transmission Main
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated August 23, 2016, detailing the bid results (Materials G). Commissioner Malinowski moved to recommend that Bid No. 996 be awarded to Tapani, Inc., in the amount of $555,555.55 plus applicable taxes. Commissioner Van Dyke seconded the motion, it passed unanimously.

Consideration of Bid Award 997 – Clark2: OH Reconductor
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated August 23, 2016, detailing the bid results (Materials H). Commissioner Van Dyke moved to recommend that Bid No. 997 be awarded to Magnum Power, LLC., in the amount of $409,000 plus applicable taxes. Commissioner Malinowski seconded the motion, it passed unanimously.

River Road Generating Plant Maintenance Recap
Energy Resource Manager Terry Toland provided a recap of the annual River Road Generating Plant maintenance activities (Materials I). Mr. Toland noted that there have been two vibration issues since the restart of the plant. One has been addressed and realigned under warranty and the other is slated for repair at the end of September.

July Financials
Director of Finance Rick Dyer addressed the board (Materials J). July had slightly cooler, wetter weather resulting in electric revenue above forecast. Mr. Dyer reported that both system sales and off system sales were above budget for the month. July residential sales were 98.9% of budget; commercial sales were 102.1% and industrial sales were 99.2% of budget.

July ended with a loss of $253,000 net income, compared to a budgeted loss of $1.9 million. To date the annual net income for the Electric System is $15.5 million, compared to $6.4 million in the budget.

The Water System has added 475 new customers year to date resulting in a growth rate of 2.45%. The net income in June was $453,000 against a budgeted net income of $350,000. To date the annual net income for the Water System is $367,000, compared to a budgeted loss of $477,000.

July Wholesale Operations
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials K). Slice performed below both prompt month forecast and budget forecast. Loads were right on budget forecast as cooling degree days were very near normal for the month. Prices started to show volatility at the end of the month.

Mr. Haymaker provided commissioners with an energy transaction update.

Consideration of Adoption of the Integrated Resource Plan
Manager of Energy Planning and Operations Tom Haymaker reviewed the final updates to the Integrated Resource Plan (Materials L). Mr. Haymaker reported the only feedback came from Northwest Power and Conservation Council. Commissioner Malinowski suggested a few edits to items related to net metering, solar and voltage.

Commissioner Malinowski moved for approval of the Integrated Resource Plan for submission to the state of Washington by September 1. Commissioner Van Dyke seconded the motion, it passed unanimously.

Commissioner Reports
Commissioner Malinowski reported on recent events at Energy Northwest.

Commissioners would like to see a communication piece go out with the community solar incentive checks. Corporate Communications Manager Erica Erland noted that an annual community solar report was near completion and would be provided to community solar participants.

Staff Reports
CEO/General Manager Wayne Nelson reported on his recent meeting with the Department of Ecology.

Other Business before the Board
There being no further business before the Board, the meeting was recessed at 12:00 p.m. to executive session to discuss personnel matters, with no formal action taken. At 12:35 p.m. Commissioner Barnes reconvened the public meeting and there being no further business to come before the board, the meeting was adjourned at 12:35 p.m.