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 26th day of May 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 Pat McGary, Director of Operations Dan Krebs, Director of Water Doug Quinn, Director of Communications Lena Wittler, Materials and Purchasing Manager Cathy Wannamaker, Risk and Power Manager Lynn Latendresse, Manager of Energy Planning and Operations Tom Haymaker, Civil Engineer – Water Russ Knutson and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: 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 May 12, 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 May 26, 2015, from the District Auditor:
     Electric Revenue Fund – $19,463,279.46
     Water Revenue Fund – $512,610.04
     Generating System Fund – $266,878.44

For a total of $20,242,767.94

Consideration of Resolution of Establishment for LUD No. 1215
Director of Engineering Cal Morris addressed the Board regarding the Establishment of Local Utility District No. 1215 for street lighting. 

    Resolution No. 7191 – LUD No. 1215 – Fieldstone Estates 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. 7191  (Materials C) be adopted. 

Consideration of Bid 970 for Carol J. Curtis Iron & Manganese Removal System
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated May 20, 2015, which detailed the bid results (Materials D). Commissioner Barnes moved to recommend that Bid No. 970 be awarded to ATEC System Associates, Inc. in the amount of $467,960.00 plus applicable taxes. Commissioner Van Dyke seconded the motion. The motion passed unanimously. 

Consideration of Extension of Gas Transportation Contracts 
Manager of Energy Planning and Operations Tom Haymaker reviewed with the board the current contract agreements in place and outlined the extension request through 2026 (Materials E). 
Currently the Internal Risk Oversight Committee requires board approval for terms longer than six years. Given  that requirement, staff is requesting an extension of the gas pipeline transportation capacity contracts as described through 2026. Commissioner Van Dyke moved to approve the gas pipeline transportation capacity contracts through 2026, Commissioner Barnes seconded the motion and it passed unanimously. 

Consideration of 2015 Renewable Targets (F)
Risk and Power Manager Lynn Latendresse reviewed the memo dated May 26, 2015, outlining Clark Public Utilities 2015 annual reporting under Renewable Energy Target requirements of the Washington State Energy Independence Act (Materials F). 

Ms. Latendresse reviewed the three compliance options; Clark Public Utilities will use the path of no load growth with 1% cost cap using our calculation methodology. Commissioner Malinowski asked what our requirement would be if our calculation were to be challenged during an audit. Ms. Latendresse said we would be required to retire more REC’s.  

Commissioner Van Dyke moved to approve the policies, data and methodology for Clark Public Utilities’ reporting compliance for 2015 under Renewable Energy Target requirements of the Washington State Energy Independence Act, RCW 19.285. Commissioner Barnes seconded the motion and it passed unanimously. 

April Financial Report 
Director of Finance Rick Dyer addressed the board (Materials G). April had warmer and drier weather resulting in electric revenue, power supply costs and off system sales all coming in above forecast. April residential sales were 101.1% of budget; commercial sales 97.6% of budget and industrial sales 96.4% of budget. Residential growth for March was 1.53%. 

For the month of April, the Electric System reported net income of $1.8 million compared to a budgeted loss of $888,000. The increase in net income can be attributed to higher off system sales including profits related to operating the River Road Generating Plant, which was not originally budgeted. To date the system is roughly $5 million ahead of budget for net income, a trend that is expected to continue.

The Water System has added 197 new customers year to date resulting in an annual growth rate of 1.83%. April showed a net income loss of $89,000 against a budgeted income loss of $194,000. To date the system is ahead of budget with losses year to date of $179,000, which is well below the budgeted year to date loss of $661,000.00. 

April Wholesale Operations Report
Manager of Energy Planning and Operations Tom Haymaker addressed the board (Materials H). Slice results were below prompt month and budget forecast loads were near the average forecast, as temperatures were average for the first time in quite some time. Pricing remained stable.

The River Road Generating Plant maintenance outage began May 1, and went as expected. The plant was back on line May 23 without incident. 

Run-off forecasts are starting to fall off a bit. January through July at The Dalles is at 84% of normal and April through September is forecasting at 71% of normal. These forecasts continue to be some of the lowest run off in 55 years. Slice results will start showing the impact of the low expected run off in the coming months. 

Commissioner Reports and Comments 
Commissioners Barnes and Van Dyke reported on their attendance of the Northwest Public Power Association meeting held in Anchorage Alaska. Both found the sessions to be very informative.  

Commissioner Van Dyke requested the board compose and send a letter to Clark County Council members in support of CREDC receiving state funding by being named Associate Development Organization for Clark County. Commissioner Barnes made a motion to have a letter drafted for review by the board, and once approved be sent to the council members. Commissioner Van Dyke seconded the motion and it passed unanimously. 

Commissioner Malinowski reported that Columbia Springs has signed the new contract and will now be working with Fish and Wildlife to update their contract with them.

Staff Reports
Manager of Energy Planning and Operations Tom Haymaker provided the board with an update of recent energy trading activities. 

Other Business before the Board 

There being no further business before the Board, the meeting was adjourned at 10:32 a.m.