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 May at the hour of 9:00 a.m.
Present: President Nancy Barnes, Vice President Jane Van Dyke, Secretary Jim Malinowski, Commissioners; CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Operations Dan Krebs, Director of Water Doug Quinn, Director of Customer Service Lisa Fix, Director of Engineering Cal Morris, Director of Communications Lena Wittler, Director of Energy Resources Dan Bedbury, Director of Information Services Mike Harris, Corporate Communications Manager Erica Erland, Manager of Energy Planning and Operations Tom Haymaker, Materials and Purchasing Manager Cathy Wannamaker, Civil Engineer – Water Barry Lovingood, Customer Service Manager Robert Hill, Work Group Leader Sharon Williamson, Manager of Construction Design David Tetz, Substation Working Foreman Travis Hefely, Senior Legal Counsel John Eldridge, Senior Policy and Contracts Analyst Brenna Moore, Construction Coordinator Ellen Smart, Serviceman Arvo Heiskari, Water Quality Specialist John Roth, and Assistant to CEO/General Manager Margaret Anderson.
Press Representatives: None
Others Present: Mike Lyons, John Nelson, Bob Cone (Materials A)
The order of business recorded below reflects the published agenda (Materials B)
At 9:00 a.m., President Barnes called the meeting to order for the transaction of formal business.
Consideration of the Minutes of May 10, 2016
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 May 24, 2016 from the District Auditor:
Electric Revenue Fund – $18,990,619.13
Water Revenue Fund – $256,461.92
Generating System Fund – $871,953.76
For a total of $20,119,034.81
Recognition of Employee Service Awards
Director of Engineering Cal Morris introduced Travis Hefley, Substation Working Foreman. Travis was recognized for 35 years of service with the utility.
Director of Operations Dan Krebs introduced Arvo Heiskari, Serviceman. Arvo was recognized for 35 years of service with the utility.
Director of Customer Service Lisa Fix introduced Robert Hill, Customer Service Manager. Robert was recognized for 25 years of service with the utility. Ms. Fix also introduced Sharon Williamson, Work Group Leader. Sharon was recognized for 25 years of service with the utility.
The board thanked all the employees for their service to the utility (Materials C).
Consideration of Bid Award #987 – Paradise Point Water Transmission Main
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated May 24, 2016, which detailed the bid results (Materials D). Commissioner Malinowski moved to recommend that Bid No. 987 be awarded to Rotschy Inc., in the amount of $1,137,891.50 plus applicable taxes. Commissioner Van Dyke seconded the motion. The motion passed unanimously.
Consideration of Interlocal Agreement with the Cowlitz Tribe for Electric Services
Director of Engineering Cal Morris reviewed the Intergovernmental Agreement between the Cowlitz Tribal Gaming Authority/Cowlitz Tribe and Clark Public Utilities (Materials E). The agreement covers the installation and modification of the utility’s electric facilities to serve the Cowlitz Tribe’s new casino, currently under construction. The Cowlitz Tribe will pay for a share of each of the projects as outlined in the agreement totaling an estimated $4.7 million.
Commissioner Van Dyke moved to approve the Power Services Intergovernmental Agreement with the Cowlitz Tribal Gaming Authority/Cowlitz Tribe and authorize the General Manager to execute the agreement. Commissioner Malinowski seconded the motion and it passed unanimously.
Consideration of Interlocal Agreement with the Cowlitz Tribe for Water Services
Director of Water Doug Quinn reviewed the Intergovernmental Agreement between the Cowlitz Tribal Gaming Authority/Cowlitz Tribe and Clark Public Utilities (Materials F). The agreement covers property access and the installation of water facilities necessary for the utility to serve the Cowlitz Tribe’s new casino, currently under construction. Overall cost of the system improvements is estimated at $4 million with the Cowlitz Tribe contributing an estimated $3.5 million.
Commissioner Malinowski moved to approve the Water Services Intergovernmental Agreement with the Cowlitz Tribal Gaming Authority/Cowlitz Tribe and authorize the General Manager to execute the agreement. Commissioner Van Dyke seconded the motion and it passed unanimously.
The board thanked staff for their years of hard work on this large project, and for interacting with the Cowlitz Tribe in a positive manner. CEO/General Manager Wayne Nelson also thanked staff for their diligence throughout the process to provide Electric and Water services to the property.
Review of 2014 I-937 Renewable Energy Compliance Report
Senior Policy and Contracts Analyst Brenna Moore addressed the board (Materials G). Ms. Moore reported that the State Auditor finalized the review of our 2014 renewable resource targets on April 20, 2016. Following that review, the utility will submit a revised report to the Department of Commerce on June 1, 2016 that reflects changes to our Renewable Energy Credit retirement sequence.
Consideration of 2016 Renewable Targets
Senior Policy and Contracts Analyst Brenna Moore reviewed the memo dated May 20, 2016, outlining Clark Public Utilities’ 2016 annual reporting under Renewable Energy Target requirements of the Washington State Energy Independence Act (Materials H). Ms. Moore reviewed the three compliance options; Clark Public Utilities will use the 4% cost cap option for 2016.
Commissioner Van Dyke moved to approve the policies, data and methodology for Clark Public Utilities’ reporting compliance for 2016 under Renewable Energy Target requirements of the Washington State Energy Independence Act, RCW 19.285. Commissioner Malinowski seconded the motion and it passed unanimously.
Consideration of Bonneville Power Administration Block or Slice Product
CEO/General Manager Wayne Nelson recapped previous BPA contract conversations with the board and stated that staff had nothing new to report on this topic. Commissioner Malinowski moved to affirm that the utility will continue with the Bonneville Power Administration Slice/Block product. Commissioner Van Dyke seconded the motion and it passed unanimously.
Consideration of Transfer of Uncollected Debt
Customer Service Manager Robert Hill addressed the board regarding the uncollectable debt for the second half of 2015 (Attachment I). Mr. Hill stated that recoveries continue to increase; they are up 14% compared to a five year average. The percentage of net losses from closed accounts to revenue is .37%, which is below the industry standard of .87%. Mr. Hill reported on debt trends: gross debt should remain steady over the next 12 months, bankruptcy totals are trending downward, and GOSP adjustments are down for 2015. Clark continues to compare favorably across the industry with account delinquency. Following the presentation, staff recommended the board approve charging $830,273 to uncollectable debt for the second half of 2015. Commissioner Van Dyke moved to transfer $830,273 to uncollectable debt for the second half of 2015. The motion was seconded by Commissioner Malinowski and passed unanimously.
Director of Finance Rick Dyer addressed the board (Materials J). April had warmer and drier weather on average. System sales were below budget, and off system sales were above budget. April residential sales were 85.4% of budget; commercial sales 101.8% of budget and industrial sales were 103% of budget. Residential sales in the month of April proved to be the lowest in four years.
For the month of April, the Electric System showed a net income of $1.1 million compared to a budgeted net income loss of $302,000. Residential customer growth for April was 2.38%. Mr. Dyer provided an update on conservation spending to date, noting that a large project coming in later in the year is expected to take up the bulk of the funds.
The Water System has added 295 new customers year to date resulting in a growth rate of 2.67%. There was a net income loss in April of $143,000 against a budgeted net income loss of $318,000.
April Wholesale Operations
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials K). Slice performed above both prompt month forecast and budget forecast. Loads were below budgeted forecast due to mild temperatures. Prices showed a little volatility and some negative pricing for the first time this year. The scheduled maintenance at River Road Generating Plant is running behind schedule and the plant will likely restart in mid-June.
Mr. Haymaker also reported that Combine Hills scheduling has been moved to be included in our current contract with The Energy Authority which will likely save us a significant amount of money. Lastly, he noted that Clark Public Utilities is required to update its Integrated Resource Plan this year, and Mr. Haymaker reviewed a timeline for that process.
Commissioner Malinowski reported on his attendance at the Northwest Public Power Administration Annual Meetings.
Commissioner Van Dyke reported on her attendance at the Columbia River Economic Development Council where a local consulting firm provided a presentation regarding I-732.
There were no staff reports.
Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 10:50 a.m.