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 22nd day of December at the hour of 9:00 a.m.
Present: President Jim Malinowski, Vice President Nancy Barnes, Secretary Jane Van Dyke Commissioners, CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Operations Dan Krebs, Director of Energy Resources Dan Bedbury, Director of Communications Lena Wittler, Director of Water Doug Quinn, Director of Engineering Cal Morris, Director of Customer Service Lisa Fix, Corporate Communications Manager Erica Erland, NERC Compliance Manager Jack Stamper, Manager of Energy Planning and Operations Tom Haymaker and Assistant to CEO/General Manager Margaret Anderson.
Others Present: John Aarhus, James R. Nielsen (Materials A)
The order of business recorded below reflects the published agenda. (Materials B)
At 9:00 a.m., President Malinowski called the meeting to order for the transaction of formal business.
Consideration of the Minutes of December 8, 2015
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 December 22, 2015 from the District Auditor:
Electric Revenue Fund – $7,167,820.68
Water Revenue Fund – $817,532.50
Generating System Fund – $620,865.03
For a total of $8,606,218.21
Consideration of Board Reorganization
Commissioner Malinowski stated that reorganizing board offices is an annual process and that it generally follows a set rotation of board officers. With that, Commissioner Van Dyke made a motion nominating Commissioner Barnes as President, herself as the Vice President and Commissioner Malinowski as the Secretary. The motion was seconded by Commissioner Barnes, and passed unanimously. (Attachment C).
Consideration of Resolution for Establishment of LUD Nos. 1237 and 1239
Director of Engineering Cal Morris addressed the Board regarding the Establishment of Local Utility District Nos. 1237 and 1239 for street lighting.
Resolution No. 7235 – LUD No. 1237 – Granton Park PH3
Resolution No. 7236 – LUD No. 1239 – Neilsen 113th Subdivision
After the presentation by Mr. Morris, Commissioner Malinowski opened the public hearing for comment. There being no public comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Barnes, and unanimously carried that Resolution Nos. 7235 and 7236 (Materials D) be adopted.
The board thanked members of the public Mr. Aarhus and Mr. Nielsen for attending the public hearing regarding their subdivision.
Consideration of Intent to Establish LUD Nos. 1235, 1241 and 1242
Director of Engineering Cal Morris addressed the Board regarding the Intent to Establish Local Utility District Nos. 1235, 1241 and 1242 for street lighting.
Resolution No. 7237 – LUD No. 1235 – Abbey Glen
Resolution No. 7238 – LUD No. 1241 – Creekwood North PH4
Resolution No. 7239 – LUD No. 1242 – 103rd East/West Infill Short Plat
After the presentation by Mr. Morris, Commissioner Malinowski opened for comment. There being no public comment, a motion was made by Commissioner Barnes, seconded by Commissioner Van Dyke and it was unanimously carried that Resolution Nos. 7237, 7238 and 7239 be adopted and a public hearing was set for January 26, 2016 (Materials D).
Consideration of Resolution to Update the Internal Compliance Program Document
NERC Compliance Manager Jack Stamper addressed the board (Materials E). Mr. Stamper reviewed the history of the Internal Compliance Program (ICP) and the updates to the documentation that supports it. Clark is required to update its ICP each year and bring it to the board for approval.
Commissioner Van Dyke moved to approve the updated Internal Compliance Program document as presented, Commissioner Barnes seconded the motion and it passed unanimously.
Consideration of Adoption of the Washington Department of Commerce Advisory Opinion
Director of Energy Resources Dan Bedbury addressed the board (Materials F). Mr. Bedbury presented the board with a plan to purchase renewable energy credits (REC’s) from Cosmo Specialty Fibers. The purchase would help the utility meet its long-term compliance requirements for I-937. This purchase requires the board to adopt the Washington Department of Commerce advisory opinion granting Cosmo Specialty Fibers as an eligible renewable resource.
After review of the opinion, Commissioner Van Dyke moved to adopt the Department of Commerce Advisory Opinion Letter granting Cosmo Specialty Fibers eligibility as a renewable resource. Commissioner Barnes seconded the motion and it passed unanimously.
Consideration of Remittance Processing Interlocal Agreements
Director of Finance Rick Dyer addressed the board (Materials G). Mr. Dyer stated that currently we have existing agreements to do remittance processing with the City of Vancouver, the Tualatin Valley Water District, the City of Camas, the Clark Regional Water District, the Eugene Water and Electric Board, Cowlitz PUD and the City of Longview. The City of Kelso has asked Clark to do their remittance processing as well, with that request legal staff advised an updated board motion occur.
Commissioner Barnes moved to approve interlocal agreements with the City of Kelso, the City of Vancouver, the Tualatin Valley Water District, the City of Camas, the Clark Regional Water District, the Eugene Water and Electric Board, Cowlitz PUD and the City of Longview. Commissioner Van Dyke seconded the motion is passed unanimously.
November Financials
Director of Finance Rick Dyer addressed the board to report November financials (Materials H).
For the month of November, the Electric System reported a net income of $5.6 million compared to a projected net income of $2.6 million. As end of year net income continues to increase, staff will come before the board in the first quarter of 2016 with recommendations regarding those funds.
The Water System reported a net income of $1.3 million in November compared to the budgeted net income loss of $46,000. The increase in net income in November was due primarily to grant funding that arrived in November instead of October. To date the system is ahead of the $2.4 million net income budgeted, with a net income of $4.1 million.
November Wholesale Operations
Energy Planning and Operations Manager Tom Haymaker addressed the board (Materials I). Slice still under performing compared to budget but coming in closer to the prompt month forecast. Loads were above budget forecast due to colder weather late in the month. Despite the colder weather, prices remained stable.
Forward heat rates suggest that the River Road Generating Plant will remain on-line through April, but the plant has been displaced in the month of June. Continued attention will be paid to heat rates in April as that month continues to fluctuate.
Commissioner Reports and Comments
Commissioner Barnes thanked staff for the information regarding the energy efficiency loan history.
Commissioner Van Dyke reported on her attendance at the Columbia River Economic Development Council meeting that included an update on their budget.
Staff Reports
Director of Operations gave an update on the outage and restoration progress since Monday’s storm.
Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 10:45 am.