Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
February 20, 2018
A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the Operations Education Center, Vancouver, Washington, on Tuesday, the 20th day of February 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 Communications Lena Wittler, Director of Engineering Cal Morris, Director of Water Doug Quinn, Director of Customer Service Lisa Fix, Director of Energy Resources Dan Bedbury, Manager of Energy Planning and Operations Tom Haymaker, Materials and Purchasing Manager Cathy Wannamaker, and Assistant to CEO/General Manager Margaret Anderson.
Press Representatives: None
Others Present: (Materials A)
At 9:00 a.m., President Malinowski called the meeting to order for the transaction of formal business.
Consideration of the Minutes of February 6, 2018
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 February 20, 2018, from the District Auditor:
Electric Revenue Fund – $10,861,209.45
Water Revenue Fund – $568,386.01
Generating System Fund – $317,954.81
For a total of $11,747,550.27
Consideration of Resolutions of Establishment of LUD Nos. 1305 and 1312
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1305 and 1312.
Resolution No. 7431 – LUD No. 1305 – Fields Hollow PH 1&2
Resolution No. 7432 – LUD No. 1312 – Hidden Crest PH 3 & 5-9
After the presentation by Mr. Morris, Commissioner Malinowski opened the public hearing for comment. There being no comment, a motion was made by Commissioner Barnes, seconded by Commissioner Van Dyke and unanimously carried that Resolution Nos. 7431 and 7432 be adopted (Materials C).
Consideration of Declaration of Surplus Property, a Portion of Shipyard Substation as a Boundary Line Adjustment
Director of Engineering Cal Morris reviewed the memo dated February 14, 2018 outlining the proposed boundary line adjustment at the Shipyard Substation (Materials D). With the proposed boundary line adjustment staff is recommending declaring the adjusted portion as surplus and exchanging the property with Delta Management for a payment of $174,830.00 for the property and expenses related to the transaction.
Commissioner Barnes moved to declare a portion of Tax Lot 283 (Serial #310410000) surplus and approve the property exchange by boundary line adjustment and authorize CEO/General Manager Wayne Nelson to sign the deed and boundary line adjustment documents on behalf of Clark Public Utilities. Commissioner Van Dyke seconded the motion and it passed unanimously.
Consideration of Bid Award No. 528 – Outdoor Metal-Clad Switchgear
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated February 20, 2018 detailing the bid results (Materials E). Commissioner Barnes moved to recommend that Bid No. 528 be awarded to the low evaluated bidder, Crown Technical Systems, Inc. in the amount of $769,161.30 plus applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.
Consideration of Bid Award No. 532 – Line Clearance View Substation Feeders #1, #2 & #4
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated February 20, 2018 detailing the bid results (Materials F). Commissioner Van Dyke moved to recommend that Bid No. 532 be awarded to the low evaluated bidder Kemp West, Inc., in the amount of $346,750.00 plus applicable taxes. Commissioner Barnes seconded the motion, and it passed unanimously.
Director of Finance Rick Dyer addressed the board (Materials G). December had cooler and drier weather resulting in electric revenue above forecast. Mr. Dyer reported that both system sales and off system sales were above budget for the month. December residential sales were 107.1% of budget, commercial sales were 96.1% and industrial sales were 110.0% of budget. December ended with a net income of $7.5 million compared to a budgeted loss of $1.9 million. Year-to-date net income is $38.4 million ahead of budget.
Mr. Dyer provided an update on conservation spending, 2017 spending was 87% of budget; however, energy savings is greater than projected. Several projects that were budgeted in 2017 will be completed in 2018. Electric System capital spending ended the year $827,000 below budget and the Generating System capital spending was $763,000 below budget. These unused budgeted dollars will be carried into 2018.
Commissioner Malinowski asked about plans for revenue surplus. CEO/General Manager Wayne Nelson said with multiple unknown potential expenses he felt it was too early to make a decision. Commissioner Van Dyke asked if staff could provide a list of potential expenses to the board that could impact the utility financially. Mr. Dyer said he would put together a list for the board.
The Water System ended 2017 with 1,140 new customers, resulting in a growth rate of 3.28%. The net income for December was a loss of $140,000 compared to a budgeted net income loss of $214,000. Year to date, the Water System is showing an annual net income of $4.0 million compared to a budgeted net income of $941,000. Water System capital spending ended 2017 $3.7 million under budget, these funds will be moved to 2018.
Mr. Dyer provided a review of the rate stabilization fund, showing contributions and expenditures dating back to 2004, the current balance is $50.4 million.
December 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 29 aMW above prompt month and 37 aMW above budget forecasts. Temperatures a bit below normal contributed to load growth. Mr. Haymaker provided a preliminary summary of the load increase that separated the impacts of weather and load growth. Power prices in December were between $20 and $30 for most of the month.
River Road Generating Plant was offline sporadically for short periods due to power supply failure on the control system.
Commissioner Reports and Comments
Commissioner Barnes reported on her attendance at the Washington PUD Association meetings.
Commissioner Van Dyke reported on her attendance at the Columbia Springs Board meeting.
Commissioner Malinowski reported on his attendance at the Washington PUD Association meetings and the continued progress with the Energy Northwest nuclear expert board position.
Wayne provided an update on the Carbon Tax bill. Staff is waiting for the updated bill, once that bill is made available it may be necessary to arrange for a special meeting to review it with the board.
Other Business before the Board
There being no further business before the Board, the meeting adjourned at 11:58 a.m.