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

December 27, 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 27th 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 Engineering Cal Morris, Director of Water Doug Quinn, Corporate Communications Manager Erica Erland, Materials and Purchasing Manager Cathy Wannamaker, Senior Legal Counsel John Eldridge and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: None (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 December 13, 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 December 27, 2016, from the District Auditor:

Electric Revenue Fund – $22,482,674.67

Water Revenue Fund – $112,432.22

Generating System Fund – $554,813.61

For a total of $23,149,911.50

Consideration of Board Reorganization for 2017

Commissioner Barnes stated that reorganizing board offices is an annual process and that it generally follows a set rotation of board officers. With that, Commissioner Malinowski made a motion nominating Commissioner Van Dyke as President, himself as the Vice President and Commissioner Barnes as the Secretary, effective January 1, 2017. The motion was seconded by Commissioner Van Dyke, and passed unanimously (Attachment C).

Consideration of Bid Award No. 502 – Outdoor Metal-Clad Switchgear

Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated December 27, 2016, detailing the bid results (Materials D). The first two low apparent bidders did not meet bid requirements as outlined. After staff evaluation and discussions with references it was determined that the third low apparent bidder Crown Technical Systems, Inc. met the needs of the bid. Commissioner Van Dyke moved to recommend that Bid No. 502 be awarded to Crown Technical Systems, Inc. in the amount of $861,258.38 plus applicable taxes. Commissioner Malinowski seconded the motion and it passed unanimously.

Consideration of Applicant Agents for Federal Emergency Management Agency

Director of Finance Rick Dyer addressed the board (Materials E). Mr. Dyer explained the purpose of this designation is to authorize a representative to apply for funds with the Federal Emergency Management Agency (FEMA) in the event of a disaster.

Commissioner Van Dyke moved to appoint Director of Finance Rick Dyer as the applicant agent and Director of Operations Dan Krebs as the alternate applicant for FEMA. Commissioner Malinowski seconded the motion and it passed unanimously.

Consideration of Appointment of Deputy Treasurer

Director of Finance Rick Dyer addressed the board (Materials F). Jacqueline Maddux was recently awarded an Accounting Manager position at the utility, a role that is historically designated as a deputy treasurer for the utility. In an effort to continue providing continuity and internal control depth, Mr. Dyer requested appointment of Ms. Maddux as the second deputy treasurer.

Commissioner Malinowski moved to appoint Jacqueline Maddux as deputy treasurer, Commissioner Van Dyke seconded the motion and it passed unanimously.

November Financials

Director of Finance Rick Dyer addressed the board (Materials G). November had warmer, wetter weather resulting in electric revenue below forecast. Mr. Dyer reported that system sales were below budget but off system sales were above budget for the month. November residential sales were 83.4% of budget; commercial sales were 97.9% and industrial sales were 108.4% of budget.

November ended with $4.0 million in net income, compared to a budgeted net income of $2.7 million. To date the annual net income for the Electric System is $16.8 million, compared to a $2.8 million budget.

The November conservation update shows the utility has spent 72% of the budget and is not likely to spend the full budget in 2016.

The Water System has added 726 new customers year to date resulting in a growth rate of 2.4%. The net income loss in November was $6,000 against a budgeted net income loss of $70,000. To date the annual net income for the Water System is $2.4 million, compared to a budgeted net income of $1.22 million.

November Wholesale Operations

Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials H). Mr. Haymaker updated the board on power supply noting that Slice performed right on prompt month predictions and above budget forecasts. Loads were well below budget and there was a large volume of sales in November. Prices remained relatively stable through the month but localized gas prices began showing some strength at the end of the month.

Staff continues to monitor the vibrations at the River Road Generating Plant (RRGP); the colder weather reduced the level. RRGP is expected to be off-line February 2017-June 2017, staff is closely monitoring January.

Commissioner Reports

Commissioner Van Dyke reported on her attendance at the Columbia River Economic Development Council meeting.

Commissioner Malinowski asked if other board members and Mr. Nelson had been receiving updates regarding the outage at Columbia Generating Station. All had indicated they knew about the outage and were looking forward to hearing the details.

Staff Reports

CEO/General Manager Wayne Nelson brought up the concern of a member of the public regarding the timing of our Commission meetings. Commissioner Van Dyke asked if we might consider moving to the first and third Tuesday of each month in order to avoid conflicts with the Port of Vancouver meetings. Commissioner Barnes and Malinowski agreed to consider it once timing of other meetings in the county have been verified.

Other Business before the Board

There being no further business before the Board, the meeting was recessed to executive session at 10:20 am to discuss a personnel matter. The executive session was expected to last until approximately 11:00 am and no formal action was taken.

At 11:40 am Commissioner Barnes reconvened the public meeting, reporting that no formal action was taken during executive session, and the public meeting was adjourned at 11:41 am.