Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
May 7, 2019
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, May 7, 2019.
Present: President Nancy Barnes, Vice President Jane Van Dyke, Secretary Jim Malinowski Commissioners, CEO/General Manager Wayne Nelson, Director of Communications and Employee Resources Lena Wittler, Director of Finance Melissa Ankeny, Director of Water Doug Quinn, Director of Engineering Cal Morris, Director of Operations Gene Morris, Director of Information Services Mike Harris, Director of Energy Resources Dan Bedbury, Director of Customer Service Lisa Fix, Senior Manager of Large Industrial and Conservation Larry Blaufus, Loss Control Manager Sharon Crouch, Senior Legal Counsel John Eldridge, Corporate Communications Manager Erica Erland, Materials and Purchasing Manager Cathy Wannamaker, Key Account Manager Bart Hansen, Joint Use Specialist Jason Nemjo, Purchasing Administrative Assistant Adrienne Friesen, Civil Engineer-Water Barry Lovingood, Communications Services Manager Heather Allmain, Shift Superintendent Frank Billington and Assistant to CEO/General Manager Margaret Anderson.
Press Representatives: Jeff Mize-Columbian
Others Present: Rick Syring, Judy Malinowski, Terry Oliver, Patty Page and Steve Andersen-EES Consulting (Materials A)
At 9:00 a.m., President Barnes called the meeting to order for the transaction of formal business. Commissioner Barnes noted a quorum was present and the agenda (Materials B) was approved as submitted.
Consideration of the Minutes of April 16, 2019
There were no changes or corrections.
Public Comment – Non Agenda Items
There were no public comments.
Consideration of Accounts Payable
The board, by a unanimous vote, approved the following payment amounts as listed on the Letter of Transmittal dated May 2, 2019 from the District Auditor (Materials C):
Electric Revenue Fund – $24,299,415.56
Water Revenue Fund – $189,465.16
Generating System Fund – $262,860.24
For a total of $24,751,740.96
Employee Service Awards
Director of Engineering Cal Morris recognized Joint Utilities Specialist Jason Nemjo for 20 years of service.
Director of Energy Resources Dan Bedbury recognized Key Accounts Manager Bart Hansen for 20 years of service (Materials D).
Consideration of Resolutions of Establishment of LUD Nos. 1354, 1362 and 1363
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1354, 1362 and 1363.
Resolution No. 7535 – LUD No. 1354 – NE 117th Avenue Mixed Use PH 1
Resolution No. 7536 – LUD No. 1362 – 14th Avenue Short Plat
Resolution No. 7537 – LUD No. 1363 – Goshawk Hollow
After the presentation by Mr. Morris, Commissioner Barnes opened for public comment. There being no comment, a motion was made by Commissioner Malinowski, seconded by Commissioner Van Dyke, and unanimously carried that Resolution Nos. 7535 through 7537 be adopted (Materials E).
Consideration of Resolutions of Intent to Establish LUD Nos. 1234, 1364 and 1367
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1234, 1364 and 1367.
Resolution No. 7538 – LUD No. 1234 – Gordon Short Plat
Resolution No. 7539 – LUD No. 1364 – Kensington Lane Short Plat
Resolution No. 7540 – LUD No. 1367 – Tamarack Terrace
After the presentation by Mr. Morris, Commissioner Barnes opened for public comment. There being no comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Malinowski, and unanimously carried that Resolution Nos. 7538 through 7540 be adopted and a public hearing was set for June 4, 2019 (Materials F).
Consideration of Bid Award No. 576 – OH Conductor: 795 AAC for Enterprise Transmission Line
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated May 7, 2019, detailing the bid results (Materials G). Commissioner Van Dyke moved to recommend that Bid No. 576 be awarded to the low evaluated bidder, General Pacific, Inc., in the amount of $143,649.00 plus applicable taxes. Commissioner Malinowski seconded the motion, and it passed unanimously.
Consideration of Bid Award No. 577 – Iron and Manganese Filters Paradise Point Treatment Plant
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated May 7, 2019, detailing the bid results (Materials H). Commissioner Malinowski moved to recommend that Bid No. 577 be awarded to the low evaluated bidder, ATEC Systems Associates, LLC. In the amount of $560,000.00 plus applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.
Consideration of Bid Award No. 579 – UG Cable Replacement: Boulder Creek Rd.
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated May 7, 2019, detailing the bid results (Materials I). Commissioner Malinowski moved to recommend that Bid No. 579 be awarded to the low evaluated bidder, Magnum Power, LLC. For the base bid, plus the additive work, in the amount of $474,211.41 plus applicable taxes. Commissioner Van Dyke seconded the motion, and it passed unanimously.
Consideration of 2017 Final Renewable Target and 2019 Established Target
Steve Andersen with EES Consulting reviewed the memo dated May 7, 2019, outlining Clark Public Utilities’ 2019 annual reporting under Renewable Energy Target requirements of the Washington State Energy Independence Act (Materials J). Mr. Andersen reviewed the three compliance options; Clark Public Utilities will use the 4% cost cap option for 2019.
Commissioner Van Dyke moved to approve the policies, data and methodology for reporting Clark Public Utilities’ compliance for 2019 under Renewable Energy Target requirements of the Washington State Energy Independence Act, RCW 19.285. Commissioner Malinowski seconded the motion and it passed unanimously.
Mr. Andersen also reviewed the final compliance year 2017 renewable targets which is due to the Department of Commerce by June 3, 2019.
Consideration of 2019 Conservation Report for Compliance Year 2018
Senior Manager of Large Industrial/Conservation Planning Larry Blaufus presented the 2018-2019 Conservation Achievement Report (Materials K). The report, required by the Energy Independence Act, detailed the utility’s conservation results as they compared to the biennial target adopted in 2017. The utility’s 2019 conservation target of 9.79 aMW was established using the Utility Analysis Option.
For the 2016-2017 biennium, Clark Public Utilities will report a total electricity savings of 18.70 aMW in addition to utility expenditures of $19,988,168.00. This savings is well above the target of 7.74 aMW.
Commissioner Van Dyke moved to approve the 2018 annual conservation report to document the utility’s progress to meet the 2016-2017 conservation targets and instructed staff to submit the report to Commerce by the reporting deadline of June 1, 2019. Commissioner Barnes seconded the motion and it passed unanimously.
March Financials
Director of Finance Melissa Ankeny addressed the board (MaterialsLK). March had cooler and drier weather resulting in electric revenues coming in above forecast. Ms. Ankeny reported that both system sales and off system sales were above budget for the month. March residential sales were 107.2% of budget, commercial sales were 105.7% and industrial sales were 100.2% of budget. March ended with net income of $6.3 million compared to a budgeted net income of $3.6 million. Year-to-date net income is $6.9 million ahead of budget.
Ms. Ankeny provided an update on capital spending and conservation spending to-date.
The Water System ended March with 195 new customers, which is a growth rate of 2.2%. There was a net income loss of $47,000 for March, compared to a budgeted net income loss of $266,000.
March Wholesale Operations
Director of Energy Resources Dan Bedbury addressed the board (Materials M). Mr. Bedbury updated the board on power supply noting that Slice performed above prompt month by 8 aMW but 5 aMW below budget forecasts. Loads were 31 aMW above budget for the month of March. Power and gas prices were volatile and showed signs of stress.
March had a good pickup on the run-off forecast but mid-April it is showing signs of trailing off, the forecast is at budget for the remainder of the year.
River Road Generating Plant returned to service on March 13.
Home and Garden Idea Fair Re-Cap
Communication Services Manager Heather Allmain highlighted the success of the 28th annual Home & Garden Idea Fair (Materials N). She noted that while the event has evolved over the years, the goals have remained the same and staff continues to focus on engaging with customers, providing information about utility programs and building loyalty and trust through in-person interaction. This year changes were made to the utility display space, the space offered a place for fairgoers to rest and recharge (with device charging stations) and learn more about Clark Public Utilities.
Ms. Allmain shared that the Communications team is constantly evaluating the fair, the plant sale and the vendor set up, and she expects to see some updates to each of these areas next year.
Without the more than 200 employee-volunteers, full support from utility leaders and the committee of staff from departments across the utility, the event would not be possible. The Board thanked the Communications team and the entire staff for their work on the Home & Garden Idea Fair.
Consideration of Selection of CEO/General Manager
Commissioner Barnes thanked all the applicants for spending time with the board during the interview process. All the members of the board stated they enjoyed getting to know more about each of them. Commissioner Van Dyke moved to select Director of Communications and Employee Resources Lena Wittler as the CEO/General Manager, Commissioner Malinowski seconded the motion and it passed unanimously. Commissioner Barnes indicated the board would recess to executive session with Ms. Wittler to discuss the details of the appointment at the end of the meeting.
Commissioner Reports and Comments
Commissioner Barnes reported on her attendance at the Columbia Springs Board meeting and the Public Power Council meeting.
Commissioner Van Dyke reported on her attendance at the Pacific Northwest Utility Conference Committee.
Commissioner Malinowski reported on his attendance at the Energy Northwest meetings.
Staff Reports
There were no staff reports.
The board recessed to executive session at 11:20 a.m. in accordance with the Open Public Meeting Act, RCW 42.30.110 (1)(g) – to evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. It was noted that no action would be taken and the session would last until 11:40 a.m.
Commissioner Barnes reconvened the public meeting at 11:40 a.m.
Introduction of Resolution to Appoint CEO/General Manager
Commissioner Barnes introduced the resolution appointing Director of Communications and Employee Resources as the next CEO/General Manager (Materials O).
Public Comment
There were no additional comments.
Other Business before the Board
There being no further business to come before the Board, the meeting adjourned at 11:55 a.m.