June 5, 2018

Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
June 5, 2018

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, June 5 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 Energy Resources Dan Bedbury, Director of Water Doug Quinn, Corporate Communications Manager Erica Erland, Manager of Energy Planning and Operations Tom Haymaker, Transmission and Distribution Manager Ben Feliz, Manager of Energy Services Debbie DePetris, ComCare Manager Gretchen Alexander, Manager of Engineering and System Planning Ryan Kerr, Engineering Executive Assistant Anna Bickford, Office Services Supervisor Dawn Daline, Senior Buyer Shiree Smith, Program Coordinator Cameron Daline, Energy Services Support Representative Brittany Thomas, and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Rick Syring, Mike Lyons, Teresa Hagns-Northwest Pipe, Judy Chipman and Sherry Erickson (Materials A)

At 9:00 a.m., President Malinowski called the meeting to order for the transaction of formal business noting a quorum was present and the agenda (Materials B) was approved as submitted.

Consideration of the Minutes of May 15, 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 June 5, 2018, from the District Auditor:

Electric Revenue Fund – $29,623,943.64
Water Revenue Fund – $503,707.29
Generating System Fund – $1,326,480.22

For a total of $31,454,131.15

Consideration of Resolutions of Establishment of LUD Nos. 1304, 1315, 1316, 1319 and 1334
Engineering Executive Assistant Anna Bickford addressed the board regarding the Establishment of Local Utility District Nos. 1304, 1315, 1316, 1319 and 1334.

Resolution No. 7454 – LUD No. 1304 – Cedar 49 Subdivision
Resolution No. 7455 – LUD No. 1315 – Hidden Vista
Resolution No. 7456 – LUD No. 1316 – Glenwood Hollow PH 2
Resolution No. 7457 – LUD No. 1319 – Fraser Downs PH 2
Resolution No. 7458 – LUD No. 1334 – Adam’s Glen

After the presentation by Ms. Bickford, Commissioner Malinowski opened the public hearing for comment. There being no comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Barnes and unanimously carried that Resolution Nos. 7454 through 7458 be adopted (Materials C).

Consideration of Resolutions of Establishment of LUD Nos. 1311, 1335, 1336 and 1337
Engineering Executive Assistant Anna Bickford addressed the board regarding the Establishment of Local Utility District Nos. 1311, 1335, 1336 and 1337.

Resolution No. 7459 – LUD No. 1311 – Urban Point Subdivision
Resolution No. 7460 – LUD No. 1335 – Peacock Manor
Resolution No. 7461 – LUD No. 1336 – Velvet Acres PH 2
Resolution No. 7462 – LUD No. 1337 – Kelly Square Townhomes

After the presentation by Ms. Bickford, Commissioner Malinowski opened the public hearing for comment. There being no comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Barnes and unanimously carried that Resolution Nos. 7459 through 7462 be adopted (Materials D).

Consideration of Bid Award No. 533 – Substation Power Transformers
Manager of Engineering and System Planning Ryan Kerr reviewed the memo dated June 5, 2018 detailing the bid results (Materials E). Commissioner Barnes moved to recommend that Bid No. 533 be awarded to the low evaluated bidder, Anixter, Inc. in the amount of $623,675.00 for the base bid amount. This includes the substation power transformer and field service assembly, testing and commission and applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.

Consideration of Bid Award No. 536 – OH and UG Distribution Work NE 119th St. Road Project
Transmission and Distribution Manager Ben Feliz reviewed the memo dated June 5, 2018 detailing the bid results (Materials F). Commissioner Van Dyke moved to recommend that Bid No. 536 be awarded to the low evaluated bidder, DJ’s Electrical Inc. in the amount of $378,000.00 plus applicable taxes. Commissioner Barnes seconded the motion, and it passed unanimously.

Consideration of Extension of Gas Transportation Contract
Manager of Planning and Operations Tom Haymaker provided a review of the utility’s current gas transportation portfolio (Materials G). The review outlined current transportation rights with NW Pipe, risks associated with not extending the contract and the benefits associated with extending the contract through 2030.

Commissioner Barnes moved to authorize Wayne Nelson, CEO/General Manager or his designee to sign an extension of contract number 132246 with NW Pipe (Williams) changing the current expiration date from October 31, 2020 to December 31, 2030. Commissioner Van Dyke seconded the motion, and it passed unanimously.

Community Energy Efficiency Program Overview and Preliminary Review of Limited Income Thermostat Program
Program Coordinator Cameron Daline and Energy Services Support Representative Brittany Thomas reviewed the Community Energy Efficiency Program (CEEP) with the board (Materials H). Mr. Daline provided a summary of CEEP and the programs previous achievements along with an outline of the residential ductless heat pump and weatherization goals for the 2018-2019 program. Ms. Thomas outlined the commercial lighting program for the coming year that will focus on non-profits in the county.

Manager of Energy Services Debbie DePetris provided the board with a preliminary review of the Limited Income Thermostat Program that is targeted to start in October of this year. The board thanked them for the presentation and expressed excitement for the start of the thermostat program.

April Financials
Director of Finance Rick Dyer addressed the board (Materials I). April had warmer and wetter weather resulting in electric revenue above forecast. Mr. Dyer reported that both system sales and off system sales were above budget for the month. April residential sales were 101.3% of budget, commercial sales were 99.4% and industrial sales were 102.7% of budget. April ended with a net income of $2.2 million compared to a budgeted net income of $526,000. Year-to-date net income is $8.8 million ahead of budget.

The Water System ended April with 326 new customers resulting in a growth rate of 2.79%. The net income for April was a loss of $93,000 compared to a budgeted net income loss of $137,000. Year to date, the Water System is showing an annual net income of $208,000 compared to a budgeted net income loss of $600,000.

April Wholesale Operations Report
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials J). Mr. Haymaker updated the board on power supply, noting that Slice performed 19 aMW above prompt month and 40 aMW above budget forecasts. Despite below average heating degree days, loads were a bit above budget. Mr. Haymaker also noted that power prices are showing signs of weakness due to high run-off, lower loads and more solar build out.

River Road Generating Plant returned from maintenance with testing over the April 28 weekend. During maintenance it was discovered that four original welds will require repair. This should be corrected by the end of June in time to restart the unit.

Mr. Haymaker provided the board with a trading recap.

Commissioner Reports and Comments
Commissioners Barnes and Malinowski reported on their attendance at the Northwest Public Power Association annual meeting.

Commissioner Malinowski reported that he had been elected to the Participants Review Board with Energy Northwest.

Staff Reports
Director of Finance Rick Dyer provided an update on the recently completed Moss Adams audit.

Public Comment
Mike Lyons commented on our Bid Award 533, he would like to have seen it awarded to a company that manufactured transformers in the United States.

The board recessed to executive session at 11:11 a.m. in accordance with the Open Public Meeting Act, RCW 42.30.110 (1)(g) – to evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. It was noted that no action would be taken and the session would last until 11:45 a.m.
Commissioner Malinowski reconvened the public meeting at 11:47 a.m.

Other Business before the Board
There being no further business to come before the Board the was meeting adjourned at 11:48 a.m.