Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
March 21, 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 21st day of March 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 Engineering Cal Morris, Director of Communications Lena Wittler, Director of Water Doug Quinn, Director of Information Service Mike Harris, Director of Energy Resources Dan Bedbury, Corporate Communications Manager Erica Erland, Manager of Energy Planning and Operations Tom Haymaker, Communications Services Manager Heather Allmain and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Don Steinke, Anthony Vendetti – CRESA (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
Member of the public Don Steinke provide a statement regarding climate change and his desire to see local agencies make changes now and not wait for the Federal Government to act (Materials C).

Consideration of the Minutes of March 7, 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 March 21, 2017, from the District Auditor:

Electric Revenue Fund – $7,566,071.39
Water Revenue Fund – $745,601.75
Generating System Fund – $52,739.54

For a total of $8,364,412.68

January Service Award Presentation
Director of Communications Lena Wittler introduced Heather Allmain, Communications Services Manager. Heather was recognized for 20 years of service with the utility (Materials D).

Consideration of Resolutions of Intent to Establish LUD No. 1284
Director of Engineering Cal Morris addressed the board regarding the Intent to Establish Local Utility District No. 1284, for street lighting.

Resolution No. 7354 – LUD No. 1284 – Fishwood Subdivision

After the presentation by Mr. Morris, Commissioner Van Dyke opened for comment. There being no public comment, a motion was made by Commissioner Malinowski, seconded by Commissioner Barnes, and it unanimously carried that Resolution Nos.7354 be adopted and a public hearing was set for April 18, 2017 (Materials E).

Consideration of Resolutions of Establishment for LUD Nos. 1236, 1274, 1276, 1280, 1281, 1282 and 1283
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1236, 1274, 1276, 1280, 1281, 1282 and 1283 for street lighting.

Resolution No. 7355 – LUD No. 1236 – White Clover
Resolution No. 7356 – LUD No. 1274 – Philbrook Farms PH 1
Resolution No. 7357 – LUD No. 1276 – Fifth Plain Creek PH 1
Resolution No. 7358 – LUD No. 1280 – Avalon Grand PH 7
Resolution No. 7359 – LUD No. 1281 – Avalon Grand PH 10
Resolution No. 7360 – LUD No. 1282 – Avalon Grand PH 8
Resolution No. 7361 – LUD No. 1283 – NW 114th Street

After the presentation by Mr. Morris, Commissioner Van Dyke opened the public hearing for comment. There being no public comment, a motion was made by Commissioner Barnes, seconded by Commissioner Malinowski and unanimously carried that Resolution Nos. 7355 – 7361 (Materials F) be adopted.

Consideration of Hazard Mitigation Plan
Director of Operations Dan Krebs and Anthony Vendetti from Clark Regional Emergency Services Agency (CRESA) updated the board on hazard mitigation planning the utility has done (Materials G). The planning has been done in collaboration with local emergency management and other stakeholders. The highest priority natural hazards in the planning for the utility are earthquake and storm preparedness; this plan will be used as a guiding document to help in prioritization of mitigation activities.

Commissioner Malinowski moved to approve the resolution adopting the Clark regional natural hazard mitigation plan as presented. Commissioner Barnes seconded the motion and it passed unanimously.

Recap of Water Bond Sale
Director of Finance Rick Dyer provided a summary of the recent Water System revenue bond sale (Materials H). Mr. Dyer reported $35.8 million in bonds issued, carrying a true interest cost of 3.09% with an all in true interest cost of 3.15% including expenses of issuance. The average life of the bonds issued is 9.2 years.

The bond proceeds will fund ongoing capital improvements.

February Financials
Director of Finance Rick Dyer addressed the board (Materials I). February had cooler 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. February residential sales were 110% of budget; commercial sales were 104.1% and industrial sales were 102.4% of budget. February ended with a $3.9 million in net income, compared to $1.4 million in the budget.

The Water System has added 77 new customers year to date resulting in a growth rate of nearly 1.4%. The net income was $17,000 better than budget for the month of February, ending with a loss of $142,000 against a budgeted net loss of $159,000. The Water System is forecasted to operate at a loss until August.

February Wholesale Operations
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 well above prompt and budget forecasts. Loads continued to remain above budget for the month of February.

Mr. Haymaker noted that December through February combined for the fifth highest number of heating degree days in the past 77 years. Despite the record breaking weather, pricing was relatively muted and market heat rates remain low.

River Road Generating Plant came off line on February 4 and maintenance started mid-month; current economics call for the plant to remain off line through July.

Commissioner Reports and Comments
Commissioner Van Dyke reported on her attendance at Columbia River Economic Development Council (CREDC) meetings. Ms. Van Dyke thanked staff for their work with the CREDC on project Quantum.

Commissioners Barnes thanked staff for their hard work and quick turn around on the March one-time bill credit for our customers.

Staff Reports
CEO/General Manager Wayne Nelson asked commissioners for topics they would like to see covered at the fifth Tuesday meeting on May.

Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 10:35 a.m.