Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
July 18, 2017

A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the Electric Center, 1200 Fort Vancouver Way, Vancouver, Washington, on Tuesday, the 18th day of July at the hour of 9:00 a.m.

Present: President Jane Van Dyke, Vice President Jim Malinowski, Secretary Nancy Barnes Commissioners, CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Operations Dan Krebs, Director of Communications Lena Wittler, Director of Water Doug Quinn, Director of Customer Service Lisa Fix, Director of Engineering Cal Morris, Director of Information Service Mike Harris, Materials and Purchasing Manager Cathy Wannamaker, Corporate Communications Manager Erica Erland, Manager of Energy Planning and Operations Tom Haymaker, Senior Legal Counsel John Eldridge, Communications Services Manager Heather Allmain, Transmission and Distribution Manager Ben Feliz, Water Operations Manager Oscar Maciel, Foreman Dave Eccleston, Desktop Support Technician Mike Andone, Senior Customer Service Representative Judy Boehning, Senior Customer Service Representative Karen Mathison and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Carl Templin, Johansson Architecture (Materials A)

At 9:00 a.m., President Van Dyke 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 comments.

Consideration of the Minutes of June 20, 2017
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 July 18, 2017, from the District Auditor:

Electric Revenue Fund – $27,755,679.07
Water Revenue Fund – $2,918,006.45
Generating System Fund – $4,036,829.35

For a total of $34,710,514.87

June and July Service Award Presentation
Director of Operations Dan Krebs introduced Dave Eccelston, Foreman. Dave was recognized for 35 years of service.

Director of Customer Service Lisa Fix introduced Judy Boehning, Senior Customer Service Representative. Judy was recognized for 35 years of service with the utility.

Director of Customer Service Lisa Fix introduced Karen Mathison, Senior Customer Service Representative. Karen was recognized for 25 years of service with the utility.

Director of Information Services Mike Harris introduced Mike Andone, Desktop Support. Mike was recognized for 20 years of service with the utility (Materials C).

Consideration of Resolutions of Establishment LUD Nos. 1278, 1279, 1293 and 1294
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1278, 1279, 1293 and 1294, for street lighting.

Resolution No.7382 – LUD No. 1278 – Avalon Grand PH 6
Resolution No.7383 – LUD No. 1279 – Avalon Grand PH 9
Resolution No.7384 – LUD No. 1293 – Heritage Commons
Resolution No.7385 – LUD No. 1294 – Kaci Heights

After the presentation by Mr. Morris, Commissioner Van Dyke opened for comment. There being no public comment, a motion was made by Commissioner Barnes, seconded by Commissioner Malinowski, and it unanimously carried that Resolution Nos. 7382 – 7385 be adopted (Materials D).

Consideration of Water Utility Automated Meter Reading Project
Director of Finance Rick Dyer presented the board with staff’s recommendation to increase the 2017 capital budget by $1.5 million to begin the Water Automated Meter Reading (AMR) project. Following Mr. Dyer’s presentation, Director of Water Doug Quinn, provided the board with an overview of the timeline for the Encoder Receiver Transmitter installation (ERT) (Materials E). Mr. Quinn’s goal is to have 5,000 – 6,000 meters fitted with an ERT by December 2018. This accounts for nearly 20% of the Water Utility’s total meters.

Following the presentation, Commission Malinowski moved to increase the 2017 Water Utility budget by $1.5 million in order to fund the AMR project. Commissioner Barnes seconded the motion and it passed unanimously.

Consideration of Resolution of Property Condemnation at 29001 NW 11th Ave., Ridgefield, WA
Senior Legal Counsel John Eldridge presented the board with a request for property condemnation (Materials F). Mr. Eldridge explained to the board that the property owner at 29001 NW 11th Ave., Ridgefield, WA has been non-responsive to Clark Public Utilities’ attempts to settle the easement agreement. This easement is required for completion of the Enterprise Transmission Line project and is one of two remaining easements that are unsettled. This resolution will start the legal condemnation process but would not preclude the utility from settling with the property owner outside of condemnation.

Commissioner Barnes moved to proceed with the condemnation of the easement at 29001 NW 11th Ave., Ridgefield, WA. Commissioner Malinowski seconded the motion and it passed unanimously.

May Financials
Director of Finance Rick Dyer addressed the board (Materials G). May had warmer 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. May residential sales were 104.6% of budget; commercial sales were 101.8% and industrial sales were 105.2% of budget. May ended with $3.9 million in net income, compared to $1.1 million in the budget. Year-to-date conservation spend is on track at 54% of planned expenditures.

The Water System has added 364 new customers year to date resulting in a growth rate of nearly 2.57%. The net income was $84,000 ahead of budget for the month of May, ending with a net revenue of $216,000 against a budgeted net loss of $132,000.

May 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 above prompt and budget forecasts. Loads continued to remain above budget for the month of May, which makes six months in a row. Power prices in May were volatile due to oversupply and temperature spikes.

River Road Generating Plant came back online July 7 for economic purposes.

Review Customer Service Remodel Phase II
Director of Customer Service Lisa Fix addressed the board regarding phase two of the customer service remodel (Materials I). The presentation included a cost overview, design plan and construction schedule. The bid documents will be prepared to encompass all items presented, and items may be modified or removed once the bids are received. Staff will come before the board at a future meeting with bid results and plan modifications as needed.

Ms. Fix shared that this project will begin in 2017 and will require additional capital funding in 2018 with board approval.

Commissioner Reports and Comments
Commissioner Malinowski reported on his attendance at the Energy Northwest meetings. Energy Northwest board members are still asking for utilities to support nuclear power through a resolution.

Commissioner Van Dyke reported on her attendance at the Public Power Council meetings.

The board congratulated the utility on winning the J.D. Power award for the 10th consecutive year with its highest score yet.

Staff Reports
Director of Finance Rick Dyer reviewed with the board the Moss Adams memo regarding the recent audit.

Other Business before the Board
There being no further business before the Board, the meeting recessed to executive session at 11:40 to discuss personnel matters where no formal action will be taken: the public meeting is expected to reconvene at 12:00 p.m. Commissioner Van Dyke called the public meeting to order at 12:00 p.m., and citing no further business to come before the board the meeting was adjourned at 12:01 pm.