Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
March 3, 2020
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, March 3, 2020.
Present: President Jane Van Dyke (via conference call), Vice President Jim Malinowski, Secretary Nancy Barnes Commissioners, CEO/General Manager Lena Wittler, Director of Finance Melissa Ankeny, Director of Engineering Cal Morris, Director of Water Doug Quinn, Director of Energy Resources Dan Bedbury, Director of Information Services Mike Harris, Director of Operations Gene Morris, Director of Customer Service Lisa Fix, Director of Employee Resources Nichole Reitzenstein, Water Engineering Manager Russ Knutson, Water Quality Manager John Roth, Materials and Purchasing Manager Cathy Wannamaker, Energy Resource Manager Terry Toland, Manager of Energy Planning and Operations Tom Haymaker, General Counsel John Eldridge, Senior Communications Manager Heather Allmain, Media Specialist Dameon Pesanti, Heavy Equipment Operator Mark Burk and Finance Executive Assistant Abby Olbrich.
Press Representatives: None
Others Present: Pat Freiberg and Don Steinke (Materials A)
At 9:00 a.m., Vice President Malinowski called the meeting to order for the transaction of formal business. Commissioner Malinowski noted a quorum was present and the agenda (Materials B) was approved as submitted.
Consideration of the Minutes of February 18, 2020
There were no corrections.
Public Comment – Non Agenda Items
Member of the public Don Steinke shared his thoughts on the Low Carbon Fuel Standards.
Consideration of Accounts Payable
The board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated March 3, 2020 from the District Auditor (Materials C):
Electric Revenue Fund – $24,670,698.89
Water Revenue Fund – $928,310.24
Generating System Fund – $563,404.73
For a total of $26,162,413.86
Consideration of Labor Agreement with IBEW Local 125
CEO/General Manager Lena Wittler thanked the team that worked with IBEW Local 125 through the contract negotiation process. Director of Operations Gene Morris reviewed the memo dated February 20, 2020 (Materials D). Mr. Morris provided a historical view of negotiations and the current letters of agreement and memos of understanding that are a part of the contract.
The agreement that was ratified is a 3-year labor agreement effective retroactively from March 1, 2020 through February 28, 2022. The wage-only adjustment will increase wages 4% the first year, 3.25% the second year, and 3% the third year. This ratification also includes a plan to update and incorporate letters of agreement and memos of understanding into the new contract.
Commissioner Barnes moved to authorize the CEO/General Manager to sign the contract with IBEW as presented. Commissioner Van Dyke seconded the motion and it passed unanimously.
Consideration of Resolutions of Intent for LUD Nos. 1386 and 1390
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1386 and 1390.
Resolution No. 7589 – LUD No. 1386 – Minnehaha Meadows
Resolution No. 7590 – LUD No. 1390 – Weibold Short Plat
After the presentation by Mr. Morris, Commissioner Malinowski opened for public comment. There being no comment, a motion was made by Commissioner Barnes, seconded by Commissioner Van Dyke, and unanimously carried that Resolution Nos. 7589 and 7590 be adopted and a public hearing was set for April 7, 2020 (Materials F).
Consideration of Resolutions of Intent for LUD Nos. 1379 and 1387
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1379 and 1387.
Resolution No. 7589 – LUD No. 1379 – LaLonde Creek Estates
Resolution No. 7590 – LUD No. 1387 – Cody Property
After the presentation by Mr. Morris, Commissioner Barnes opened for public comment. There being no comment, a motion was made by Commissioner Barnes, seconded by Commissioner Van Dyke, and unanimously carried that Resolution Nos. 7589 and 7590 be adopted. (Materials F).
Consideration of Bid Award No. 5890 – Underground Cable Injection Treatment
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated, March 3, 2020 detailing the bid results (Materials E). Commissioner Barnes moved to recommend that Bid No. 5890 be awarded to the low evaluated bidder Novinium Inc. in the amount of $591,609.00, plus applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.
Consideration of Transfer of Uncollectable Debt
Director of Customer Service Lisa Fix presented an overview of uncollectable debt for the second half of 2019 (Materials F). Ms. Fix stated the percentage of net losses from closed accounts to revenue is .34% for the second half of 2019. Net losses to revenue is down nearly 25% compared to the previous five-year average. The utility continues to compare favorably across the industry in regard to account delinquency.
Following the presentation, Commissioner Barnes moved to transfer $621,886 to uncollectable debt for the second half of 2019. The motion was seconded by Commissioner Van Dyke and it passed unanimously.
Director of Finance Melissa Ankeny addressed the board (Materials J). January was warmer and wetter than normal which resulted in electric revenues coming in below forecast. Ms. Ankeny reported that system sales were below budget and off system sales were above budget for the month. January residential sales were 91.3% of budget, commercial sales were 95.8% and industrial sales were 94.5% of budget. January ended with a net income of $4.8 million compared to a budgeted net income of $6.8 million.
The Water System ended January with 84 new customers, which is a growth rate of 2.73%. There was a net income loss of $183,000 for January, compared to a budgeted net income loss of $213,000.
January Wholesale Operations
Director of Energy Resources Dan Bedbury addressed the board (Materials K). Mr. Bedbury updated the board on power supply noting that Slice performed above prompt month by 17 aMW and 7 aMW above budget forecasts. The utility’s monthly load was 46 aMW below budget, the one-hour peak was also low compared to normal.
Power and gas prices showed a little strength mid-month but improving water and mild temperatures drove pricing down mid-month.
Commissioner Reports and Comments
Commissioner Van Dyke reported on her attendance at the American Public Power Legislative rally held in Washington D.C.
CEO/General Manager Lena Wittler provided an update on the current state legislative session. Ms. Wittler also reviewed current staffing plans being put into place with regard to COVID-19.
There were no public comments.
Other Business before the Board
There being no further business to come before the Board, the meeting was adjourned at 10:38 a.m.