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 March at the hour of 9:00 a.m. 

Present: President Jim Malinowski, Vice President Nancy Barnes, Secretary Jane Van Dyke, Commissioners;  Director of Finance Rick Dyer, Director of Energy Resources Pat McGary, Director of Water Doug Quinn, Director of Engineering Cal Morris, Director of Operations Dan Krebs, Director of Communications Lena Wittler, Director of Information Services Mike Harris, Director of Customer Service Lisa Fix, Corporate Communications Manager Erica Erland, Risk and Power Manager Lynn Latendresse, Senior Manager of Customer Accounts and Energy Services Larry Blaufus, Manager of Energy Planning and Operations Tom Haymaker, Materials and Purchasing Manager Cathy Wannamaker, Civil Engineer Water Barry Lovingood, and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: George Caan, Diana Thompson, 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 March 10, 2015
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 10, 2015 from the District Auditor:
     Electric Revenue Fund – $9,354,877.04
     Water Revenue Fund – $708,126.54
     Generating System Fund – $635,992.84

For a total of $10,698,996.42

Washington Public Utility Association (WPUDA) Update
President of WPUDA Diana Thompson thanked the board and Clark Public Utilities for their membership and participation with the association.

Executive Director of WPUDA George Caan provided the board with a WPUDA budget update as well as a review of current legislative activities the association is tracking. Mr. Caan shared that he is very proud of the governance changes that the association has made during his tenure adding that the alliances made with Northwest Public Power Association, Public Power Counsel and American Public Power Association have been very important.  

Commissioner Barnes complimented Mr. Caan on the work he has done for the last four years, and inquired about any existing debt the association has currently. Mr. Caan reported WPUDA is debt free, the building is fully leased and they have a sufficient reserve account for building maintenance. 

The board thanked Mr. Caan and the association for work over the past four years on behalf of PUDs in the state. 
Consideration of Resolution for Establishment of LUD No. 1201
Director of Engineering Cal Morris addressed the Board regarding the Establishment of Local Utility District No. 1201 for street lighting. 

     Resolution No. 7170 – LUD No. 1201 – Cougar Creek Villas PH 2
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 Van Dyke, seconded by Commissioner Barnes, and unanimously carried that Resolution No. 7170  (Materials C) be adopted. 

Consideration of Intent to Establish LUD Nos. 1191 and 1192
Director of Engineering Cal Morris addressed the Board regarding the Intent to Establish Local Utility District Nos. 1191 and 1192 for street lighting. 

     Resolution No. 7171 – LUD No. 1191 – Clear Sky Estates
     Resolution No. 7172 – LUD No. 1192 – Ershar Subdivision 
After the presentation by Mr. Morris, Commissioner Malinowski opened for comment. There being no public comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Barnes and unanimously carried that Resolution Nos. 7171 and 7172 (Materials D) be adopted. 

Consideration of Bid Award #966 – Ludlum Reservoir Welded Steel Reservoir Fabrication and Construction
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated March 18, 2015, which detailed the bid results (Materials E). Commissioner Van Dyke moved to recommend that Bid No. 966 be awarded to T Bailey, Inc. in the amount of $1,699,000 plus applicable taxes. Commissioner Barnes seconded the motion. The motion passed unanimously. 

February Financial Report
Director of Finance Rick Dyer addressed the board (Materials F). February had warmer and wetter weather resulting in electric revenue and power supply costs below forecast, with off system sales coming in above forecast. February residential sales were 80.4% of budget; commercial sales 96.4% of budget and industrial sales were right on target as compared to budget for the month. Residential growth for February was 1.10%. 

For the month of February, the Electric System had net income of $2.6 million compared to a budgeted income of $1.6 million. The increase in net income can be attributed to higher off system sales and lower power supply costs compared to budget. 

The Water System added 74 new customers in February resulting in an annual growth rate of 1.38%. February showed a net income loss of $91,000.00 against a budgeted income loss of $157,000.00. 

2014 Financial Review and Liquidity Analysis
Director of Finance Rick Dyer addressed the board, (Materials G). Mr. Dyer led a discussion regarding the 2014 surplus revenue and rate stabilization fund with the board. Currently the fund holds about $50 million, an amount staff is comfortable with in the event of unforeseen events that would affect cash flow. 

There remains nearly $15 million of surplus at the close of books for 2014 that is currently not allocated. Staff is recommending those funds be carried into 2015 and 2016 to cover anticipated capital costs of $6.0 million and power supply rate increases of $8.0 million. This is in place of adding more to the rate stabilization fund. Mr. Dyer said that there would be a separate line item added into the current and future budgets to track expenditures against these additional funds, and that the board would be required to approve these expenditures. 

After further discussion by the board, Commissioner Van Dyke moved to keep funds in our revolving account for the following designated purpose, $6.0 million for unplanned capital, $8.0 million in deferred revenue for power supply rate increases and the balance to remain in our revolving fund. Net income for 2014 to be restated as $14.9 million. Commissioner Barnes seconded the motion and it passed unanimously. 

February Wholesale Power Operations Report
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials H). For the month of February, the Slice product was well above prompt month forecast and budget. Loads in February were well below forecast due to record high temperatures during the month. December through February have been the warmest months on record. Prices remained stable at relatively low levels throughout the month. Mr. Haymaker reported January – July runoff forecast at The Dalles at 92% of normal but that April – September runoff is forecasted at only 82% of normal.

River Road Generating Plant (RRGP) was brought back online March 2 with only a minor software ramping issue. Staff continues to watch the implied heat rate for the upcoming months for RRGP and are now planning to be online in April and June but will remain off for maintenance in May.

Energy Northwest Review
Due to time restraints, the topic was moved to a future board meeting. 

Commissioner Reports and Comments
Commissioner Van Dyke reported on her attendance at the CREDC meeting. 

Commissioner Malinowski reported on his attendance at the WPUDA meetings, and brought back some training documents for Commissioners Barnes and Van Dyke. 

Commissioner Malinowski wanted to personally thank journeyman lineman Clif Campbell for volunteering to help install a large quilt block replica on the Mountain Valley Grange building in Amboy. He said his skill maneuvering the bucket while hanging the block was impressive. 

Staff Reports
There were no staff reports. 

Other Business before the Board 

Member of the public Steve Kern thanked the utility for such a great response to the recent outage. He also offered some feedback regarding our online outage map when accessing it with a mobile device. 

There being no further business before the Board, the meeting was adjourned at 11:45 a.m.