Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
February 18, 2020
A meeting of Commissioners of Public Utility District No. 1 of Clark County was held at the Electric Center, 1200 Fort Vancouver Way, Vancouver, Washington, on Tuesday, February 18, 2020.
Present: President Jane Van Dyke and Vice President Jim Malinowski Commissioners, CEO/General Manager Lena Wittler, Director of Finance Melissa Ankeny, Director of Engineering Cal Morris, Director of Water Doug Quinn, Director of Energy Resources Dan Bedbury, Director of Information Services Mike Harris, Director of Operations Gene Morris, Director of Customer Service Lisa Fix, Director of Employee Resources Nichole Reitzenstein, Director of Communications Erica Erland, Water Engineering Manager Russ Knutson, Water Quality Manager John Roth, Materials and Purchasing Manager Cathy Wannamaker, Energy Resource Manager Terry Toland, Manager of Energy Planning and Operations Tom Haymaker, General Counsel John Eldridge, Senior Communications Manager Heather Allmain, Media Specialist Dameon Pesanti, Heavy Equipment Operator Mark Burk and Finance Executive Assistant Abby Olbrich.
Press Representatives: None
Others Present: Rick Marshall, Marcella Chandler, Terry Oliver (Materials A)
At 9:00 a.m., President Jane Van Dyke called the meeting to order for the transaction of formal business. Commissioner Van Dyke noted a quorum was present and the agenda (Materials B) was approved as submitted. Commissioner Barnes was excused from the meeting.
Consideration of the Minutes of February 4, 2020
There were no corrections.
Public Comment – Non Agenda Items
Member of the public Rick Marshall shared his concerns regarding fossil fuel as it relates to River Road Generating Plant.
Member of the public Terry Oliver shared his concern regarding gas leakage from River Road Generating Plant and his thoughts on flexible load.
Consideration of Accounts Payable
The board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated February 18, 2020 from the District Auditor (Materials C):
Electric Revenue Fund – $11,541,677.97
Water Revenue Fund – $697,582.24
Generating System Fund – $1,805,154.86
For a total of $14,044,415.07
Employee Service Award
Director of Operations Gene Morris recognized Heavy Equipment Operator Mark Burk for 20-years of employment (Materials D).
Consideration of Bid Award No. 589 – CO Catalyst for River Road Generating Plant
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated February 18, 2020, detailing the bid results (Materials E). Commissioner Malinowski moved to recommend that Bid No. 589 be awarded to the low evaluated bidder Catalytic Combustion Corporation in the amount of $397,737.00, plus applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.
Consideration of Declaring Meadow Glade Well #2 Surplus
Director of Water Doug Quinn provided the board with the history and current state of the Meadow Glade Well #2 (Materials F). Staff recommended the board declare this parcel (tax serial #193575) surplus and authorize transfer of this parcel via quit claim deed to Jacob Rab. Mr. Rab will assume all liability associated with the well facilities, the condition of the land and the structure at that location.
Commissioner Malinowski moved to authorize the CEO/General Manager to sign the quit claim deed declaring the Meadow Glade Well #2 as surplus. Commissioner Van Dyke seconded the motion and it passed unanimously.
Consideration of Interlocal Agreement with the City of Woodland
Director of Water Doug Quinn reviewed the memo dated February 11, 2020 (Materials G), which outlines the satellite water system that was constructed in the vicinity of Hayes Road and Bridge Road. Due to this system’s remote location, Clark is not able to serve it directly from our existing water distribution network, which is costly to the utility. Staff is recommending Clark enter into an Interlocal Agreement with the City of Woodland to provide a water supply for the Bridge Road Water System through an intertie, which over time will reduce utility costs.
Commissioner Malinowski moved to authorize the CEO/General Manager to sign the Interlocal Agreement with the City of Woodland in order to provide water to the Bridge Road Water System through an intertie. Commissioner Van Dyke seconded the motion and it passed unanimously.
Consideration of Interlocal Agreement with the City of Vancouver
Director of Engineering Cal Morris reviewed the memo dated February 18, 2020 (Materials H), which outlined the details of the Interlocal Agreement with the City of Vancouver. This agreement summarizes the construction and payment responsibilities for the utility’s work related to overhead relocation as part of the Mill Plain Boulevard Improvement project. The projected cost is $196,120.00 with $71,658.00 of that to be reimbursed by the City of Vancouver.
Commissioner Malinowski moved to give the CEO/General Manager the authority to sign the Interlocal Agreement between Clark Public Utilities and the City of Vancouver. Commissioner Van Dyke seconded the motion and it passed unanimously.
Director of Finance Melissa Ankeny addressed the board (Materials I). December was warmer and drier than normal which resulted in electric revenues coming in below forecast. Ms. Ankeny reported that system sales were below budget and off system sales were above budget for the month. December residential sales were 93.7% of budget, commercial sales were 99.2% and industrial sales were 95.2% of budget. December ended with a net income of $5.5 million compared to a budgeted net income of $6.2 million. Year-to-date net income is $40.7 million compared to a budgeted net income of $22.2 million.
Ms. Ankeny provided year-to-date updates on the utility’s net income to revenue requirement, conservation spending and capital spending.
The Water System ended 2019 with 953 new customers which is a growth rate of 2.59%. There was a net income loss of $405,000 for December, compared to a budgeted net income of $1.3 million. Year-to-date net income is $2.3 million compared to a budgeted net income of $3.4 million.
December Wholesale Operations
Manager of Planning and Operations Tom Haymaker addressed the board (Materials J). Mr. Haymaker updated the board on power supply noting that Slice performed below prompt month by 12 aMW and 3 aMW below budget forecasts. Clark’s monthly load was 32 aMW below budget, the one-hour peak was also low compared to normal. Power and gas prices were steady now that the Canadian gas pipeline is back to full capacity. The current runoff is averaging 91% of normal.
Mr. Haymaker reported that bringing Slice to load proved to be challenging in December and he outlined how River Road was instrumental in filling the gap.
A forward commitment trade recap was provided to the commissioners.
Commissioner Reports and Comments
Commissioners Van Dyke and Malinowski reported on their attendance at the Washington PUD Association meetings.
CEO/General Manager Lena Wittler reported on the PUD Day on the Hill.
Energy Resource Manager Terry Toland provided an update on capital projects at the River Road Generating Plant.
There were no public comments.
Other Business before the Board
There being no further business to come before the Board, the meeting was adjourned at 10:20 a.m.