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 24th day of February at the hour of 9:00 a.m.
Present: President Jim Malinowski, Vice President Nancy Barnes, Secretary Jane Van Dyke, Commissioners; Director of Water Doug Quinn, Director of Finance Rick Dyer, Director of Energy Resources Pat McGary, Director of Customer Service Lisa Fix, Director of Engineering Cal Morris, Director of Information Services Mike Harris, Director of Communications Lena Wittler, Director of Operations Dan Krebs, Corporate Communications Manager Erica Erland, Risk and Power Manager Lynn Latendresse, Senior Manager of Customer Accounts and Energy Services Larry Blaufus, Materials and Purchasing Manager Cathy Wannamaker, Manager of Energy and Planning Operations Tom Haymaker, Customer Service Manager Robert Hill, Energy Services Project Manager Matt Babbitts, Manager of Systems Engineering and Planning Curt McNeal, Senior Applications Analyst/Developer Darryl Luther and Assistant to CEO/General Manager Margaret Anderson.
Press Representatives: None
Others Present: Steve Kern (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 February 10, 2015
Commissioner Malinowski asked that his comments in Commissioner Reports and Comments section reflect the outage at Columbia Generating Station will be for refueling not repairs as it states now. The correction was made and minutes were approved.
Consideration of Accounts Payable
The Board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated February 24, 2015 from the District Auditor:
Electric Revenue Fund – $7,681,440.16
Water Revenue Fund – $445,527.75
Generating System Fund – $287,580.23
For a total of $8,414,548.14
Consideration of Resolution for Establishment of LUD No. 1198
Director of Engineering Cal Morris addressed the Board regarding the Establishment of Local Utility District No. 1198 for street lighting.
Resolution No. 7164 – LUD No. 1198 – Cosgrove Short Plat
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 Barnes, seconded by Commissioner Van Dyke and unanimously carried that Resolution No. 7164 (Materials C) be adopted.
Consideration of Intent to Establish LUD No. 1201
Director of Engineering Cal Morris addressed the Board regarding the Intent to Establish Local Utility District No. 1201 for street lighting.
Resolution No. 7165 – LUD No. 1201 – Cougar Creek Villas PH 2
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 unanimously carried that Resolution Nos. 7165 (Materials D) be adopted and the public hearing was set for March 24, 2015.
Consideration of Bid Award #957 – Power Transformers
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated February19, 2015, which detailed the bid results (Materials E). Commissioner Barnes asked if the October delivery date would accommodate our replacement plans. Director of Engineering Cal Morris said that delivery timeframe would be fine and the vendor said they could ship earlier if needed. Commissioner Malinowski was surprised to see so many competitive responses to the bid; he also asked if this transformer could be rebuilt. Mr. Morris said that it is not cost effective to rebuild a transformer of this size. Commissioner Barnes moved to recommend that Bid No. 957 be awarded to Virginia Transformer Corporation, in the amount of $625,239.00 plus applicable taxes. Commissioner Van Dyke seconded the motion. The motion passed unanimously.
Consideration of Bid Award #965 – Photovoltaic System Installation #4
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated February 20, 2015, which detailed the bid results (Materials F). Commissioner Barnes moved to recommend that Bid No. 965 be awarded to A and R Solar in the amount of $234,290.00 plus applicable taxes. Commissioner Van Dyke seconded the motion. The motion passed unanimously.
Year End Uncollectable Accounts Report
Customer Service Manager Robert Hill addressed the board regarding the uncollectable debt for the second half of 2014 (Attachment G). Mr. Hill stated that recoveries continue to increase; they are up 7% from 2013 and up 42% from 2011. The percentage of net losses from closed accounts to revenue is well under .50%, which is below the industry standard of .83%. Mr. Hill reported on debt trends: gross debt should remain steady over the next 12 months, bankruptcy totals are trending downward and GOSP adjustments are down for 2014. Clark continues to compare favorably across the industry with account delinquency. Following the presentation, staff recommended the board approve charging $883,448.00 to uncollectable debt for the second half of 2014. Commissioner Van Dyke moved to transfer $883,448.00 to uncollectable debt for the second half of 2014. The motion was seconded by Commissioner Barnes and passed unanimously.
January Financial Report
Director of Finance Rick Dyer addressed the board (Materials H). January had warmer and drier weather resulting in electric revenue well below forecast and power supply costs coming in below forecast. January residential sales were 91.3% of budget; commercial sales 96.2% of budget and industrial sales were right on target as compared to budget for the month. Residential growth for January was 1.43%.
For the month of January, the Electric System had net income of $6.8 million compared to a budgeted income of $4.2 million. The increase in net income is partially attributed to off system sales coming in above budget and power supply costs coming in below budget.
The Water System added 40 new customers in January resulting in a growth rate of 1.49%. Net income for January came in at $63,000.00 against a budgeted income loss of $58,000.00.
January Wholesale Power Operations Report
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials I). For the month of January, the Slice product was well above prompt month forecast and budget. Loads in January were well below forecast due to record high temperatures during the month. January recorded the 11th lowest number of heating degree days in the past 74 years. Prices remained stable at relatively low levels throughout the month. Despite the low snow levels locally Mr. Haymaker reported run off is projecting to be 97% of normal.
River Road Generating Plant (RRGP) remained on line for the month of January but was taken off line on February 4 for economic reasons. Staff continues to watch the implied heat rate for the upcoming months for RRGP in order to take advantage of any economic opportunities related to the plant.
Commissioner Reports and Comments
Commissioner Van Dyke reported on her attendance at the CREDC Executive Meeting and on her attendance at the Washington PUD Association meetings in Olympia. She completed her required Commissioner training with WPUDA last week and attended the legislative reception while there. Commissioner Van Dyke and Director of Communications Lena Wittler were able to sit in on the coal by wire hearing which was interesting.
Commissioner Malinowski reported he also attended the WPUDA meetings in Olympia last week as well as the legislative reception. He was glad to see the Grange had a booth at the reception.
There were no staff reports, there was a brief discussion of legislative activities staff continues to monitor the activity.
Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 10:30 a.m.