Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
December 13, 2016

A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the Operations Center, 8600 NE 117th Ave., Vancouver, Washington, on Tuesday, the 13th day of December 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 Engineering Cal Morris, Director of Communications Lena Wittler, Director of Water Doug Quinn, Director of Information Services Mike Harris, Director of Energy Resources Dan Bedbury, Director of Customer Service Lisa Fix, Materials and Purchasing Manager Cathy Wannamaker, Energy Resource Manager Terry Toland, Fleet Manager Paul Chamberlain, Engineering Manager – Water Eric Beck, Customer Accounts & Energy Reporting Services Manager Debbie DePetris and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Todd Gatewood, Rick Syring and Sherry Erickson (Materials A)

At 9:00 a.m., President Barnes called the meeting to order for the transaction of formal business.

Consideration of the Meeting Agenda
There were no changes or corrections (Materials B).

Public Comment on Non Agenda Items
There were no public comments.

Consideration of the Minutes of November 22, 2016
There were no changes or corrections.

The board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated December 13, 2016, from the District Auditor:

Electric Revenue Fund – $9,607,118.50
Water Revenue Fund – $815,752.77
Generating System Fund – $809,636.41

For a total of $11,232,507.68

Leadership Award Presentation – GE Plant Manager
Energy Resource Manager Terry Toland presented River Road Generating Plant Manager Todd Gatewood with a Leadership Award. Mr. Toland thanked Mr. Gatewood for the excellent performance during the maintenance outage, which proved to be one of the most difficult and complex ones on record.

The board thanked both Mr. Toland and Mr. Gatewood for the excellent work they do at the plant.

Consideration of Resolutions of Establishment of LUD Nos. 1252 and 1259
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1257, 1265, 1266 and 1267 for street lighting.

Resolution No. 7314 – LUD No. 1257 – Firestone Park Estates
Resolution No. 7315 – LUD No. 1265 – Pleasant View Estates PH 2&3
Resolution No. 7316 – LUD No. 1266 – Creekwood Townhomes PH 2
Resolution No. 7317 – LUD No. 1267 – Creekwood Townhomes PH 3

After the presentation by Mr. Morris, Commissioner Barnes opened the public hearing for comment. There being no public comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Malinowski and unanimously carried that Resolution Nos. 7314 – 7317 (Materials C) be adopted.

Consideration of Intent to Establish LUD Nos. 1262, 1268 and 1269
Director of Engineering Cal Morris addressed the board regarding the Intent to Establish Local Utility District Nos. 1262, 1268 and 1269 for street lighting.

Resolution No. 7318 – LUD No. 1262 – Klineline Townhomes
Resolution No. 7319 – LUD No. 1268 – The Meadows at Whipple Creek
Resolution No. 7320 – LUD No. 1269 – Legacy Place 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. 7318 – 7320 be adopted and a public hearing set for January 10, 2017 (Materials D).

Consideration of Resolution Revising Loan Fees for Energy Efficiency Loan Program
Customer Accounts & Energy Reporting Services Manager Debbie DePetris presented the updated resolution to the board (Materials E). After some discussion the board changed the wording to more accurately reflect their intentions.

The resolution will be changed to read as follows: The District shall charge the actual loan fees assessed for processing Residential Energy Efficiency Loans. If those fees change the District will adjust the fees to recover the actual costs without further Board action.

Commissioner Van Dyke moved to approve the resolution with the changes made to the resolution as discussed. Commissioner Malinowski seconded the motion, and it passed unanimously.

Consideration of Disposal of Surplus Equipment
Materials and Purchasing Manager Cathy Wannamaker addressed the board regarding the disposal of surplus equipment (Materials F). Staff is requesting that a 2004 H60XM model forklift be declared as surplus and is recommending disposing of the forklift through a transfer of ownership to the Wahkiakum School District for a fair market value of $6,500.

Commissioner Van Dyke moved to transfer ownership of the 2004 H60XM model forklift to the Wahkiakum School District for a fair market value of $6,500. Commissioner Malinowski seconded the motion, and it passed unanimously.

Public Hearing on the Proposed 2017 Budgets for the Electric, Generating and Water Systems
Commissioner Barnes opened the public hearing on the proposed 2017 budgets for the Electric, Generating and Water systems. Director of Finance Rick Dyer addressed the board (Materials G) with a review of the budget timeline and the outstanding budget decisions the board will need to make.

Staff adjusted the low income tax credit use per the direction of the board following the discussion at the budget workshop. The board also asked for some additional options for the proposed water meter replacements. Water staff put together three options for review and after discussion CEO/General Manager Wayne Nelson suggested using some of the Water Utility’s net income from 2015 and 2016 to start the meter replacement program. This would not require the utility to borrow money to start the meter replacement program.

Commissioners thanked Mr. Nelson for the additional option for the water meter replacement program. Commissioner Barnes asked if there was any feedback or comment from the public, and there being none, the public meeting was closed.

Consideration of Adoption of the 2017 Budgets for the Electric, Generating and Water Systems
Director of Finance Rick Dyer addressed the board (Materials H). After presentation of the proposed budgets for 2017 Commissioner Van Dyke moved to adopt the adjusted tax credit use as presented in the public hearing. Commissioner Malinowski seconded the motion, and it passed unanimously.

Commissioner Van Dyke moved to adopt the 2017 Electric System budget as presented. Commissioner Malinowski seconded the motion, and it passed unanimously.

Commissioner Malinowski moved to adopt the 2017 Generating System budget as presented. Commissioner Van Dyke seconded the motion, and it passed unanimously.

Commissioner Van Dyke moved to adopt the 2017 Water System budget, version two as presented, and it passed unanimously.

Water Utility staff will come before the board at a later date to present potential use of net income from 2015 and 2016 to use for the meter replacement program.

Commissioner Reports
Commissioner Van Dyke reported on her attendance at the Public Power Council meetings.

Commissioners Barnes and Van Dyke reported on their attendance at the Legislative Breakfast.

Commissioner Malinowski and Barnes reported on their attendance at the Washington PUD Association meetings that were held in Vancouver.

Staff Reports
There were no staff reports.

Other Business before the Board

There being no further business before the Board, the meeting was recessed at 10:23 a.m.

The board reconvened for an information only tour of the ilani Resort in La Center, WA at 2:30 pm where no action was taken. The tour and meeting was adjourned at 3:45 pm.