Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
December 5, 2017
A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the Operations Education Center, Vancouver, Washington, on Tuesday, the 5th day of December at the hour of 9:00 a.m.
Present: President Jane Van Dyke, Vice President Jim Malinowski, Secretary Nancy Barnes Commissioners, CEO/General Manager Wayne Nelson, Director of Operations Dan Krebs, Director of Finance Rick Dyer, Director of Communications Lena Wittler, Director of Information Services Mike Harris, Director of Water Doug Quinn, Director of Customer Service Lisa Fix, Director of Energy Resources Dan Bedbury, Director of Engineering Cal Morris, Corporate Communications Manager Erica Erland, Manager of Energy Planning and Operations Tom Haymaker, Materials and Purchasing Manager Cathy Wannamaker, Energy Resource Manager Terry Toland, Engineering Manager – Water Russ Knutson, Energy Services Project Manager Matt Babbitts, Customer Service Representative Josh Vincent and Assistant to CEO/General Manager Margaret Anderson.
Press Representatives: None
Others Present: Sherry Erickson, Therese Hampton-Executive Director Public Generating Pool (Materials A)
At 9:00 a.m., President Van Dyke called the meeting to order for the transaction of formal business.
Consideration of the Meeting Agenda
There were no changes or corrections (Materials B).
Public Comment on Non Agenda Items
There were no comments.
Consideration of the Minutes of November 21, 2017
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 December 5, 2017, from the District Auditor:
Electric Revenue Fund – $15,753,482.68
Water Revenue Fund – $263,716.40
Generating System Fund – $481,678.96
For a total of $16,498,878.04
Washington PUD Association Award Recognition
Director of Customer Service Lisa Fix introduced Customer Service Representative Josh Vincent; he was recently awarded the Washington PUD Association Good Samaritan Award. The board thanked Mr. Vincent for his actions that turned out to be life saving for a customer.
Consideration of Resolutions of Establishment of LUD Nos. 1299, 1302, 1306 and 1307
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1299, 1302, 1306 and 1307.
Resolution No. 7411 – LUD No. 1299 – Whipple Creek Village PH 1&2
Resolution No. 7412 – LUD No. 1302 – Rivendell PH 2
Resolution No. 7413 – LUD No. 1306 – Oak Meadows
Resolution No. 7414 – LUD No. 1307 – Skyview Heights East and West
After the presentation by Mr. Morris, Commissioner Van Dyke opened the public hearing for comment. There being no comment, a motion was made by Commissioner Barnes, seconded by Commissioner Malinowski and unanimously carried that Resolution Nos. 7411 – 7414 be adopted (Materials C).
Consideration of Sole Source Designation Resolution for Itron
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated December 5, 2017 (Materials D). The Water Services Department is requesting to migrate to the latest evolution of the Encoder, Receiver, Transponder (ERT) technology available from Itron, the 500W. Itron has indicated that they plan to phase out the 100W+ modules within the next 2-3 years; the 100W+ module was covered in the current Itron sole source, Resolution No. 7381.
Staff is recommending the Board repeal Resolution No. 7381 and approve a new sole source designation for the purchase of 500W ERT modules direct from Itron.
Commissioner Barnes moved to approve the waiving of the competitive bidding requirements for the purchase of 500W Encoder, Receiver, Transponders (ERTs). Commissioner Malinowski seconded the motion and it passed unanimously. This Resolution will repeal and replace Resolution No. 7381.
Consideration of Sole Source Designation Resolution for PCE Pacific
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated December 5, 2017 (Materials E). Ms. Wannamaker stated that the River Road Generating Plant has a sole source designation for the two (2) 16 inch triple offset rotary valves manufactured by Vanessa, which provide steam to the low pressure steam turbine. The current sole source Resolution for this part is with Pentair, however, Emerson Automated Solutions acquired Pentair and will now be distributing these parts through PCE Pacific.
Based on these factors, staff recommends the Board repeal Resolution 7189 and authorize a new sole source designation for the purchase of these replacement parts from PCE Pacific. Commissioner Malinowski moved to approve the waiving of the competitive bidding requirements for the purchase of replacement parts for the River Road Generating Plant’s existing low pressure steam stop/control valves. Commissioner Barnes seconded the motion and it passed unanimously. The Resolution will repeal and replace Resolution No. 7189.
Consideration of Bid Award No. 522 – Water Meter Changeout 2018
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated December 5, 2017, detailing the bid results for work on water meter replacement (Materials F). Commissioner Barnes moved to recommend that Bid No. 522 be awarded to the low evaluated bidder, Glacer Industries, LLC., in the amount of $224,334.00 plus applicable taxes. Commissioner Malinowski seconded the motion, and it passed unanimously.
Consideration of Bid Award No. 524 – Below Grade Switchgear
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated December 5, 2017, detailing the bid results (Materials G). Commissioner Malinowski moved to recommend that Bid No. 524 be awarded to the low evaluated bidder, S&C Electric Company for a total annual estimated contract amount of $338,500.00 plus applicable taxes. Commissioner Barnes seconded the motion, and it passed unanimously.
Consideration of Bid Award No. 527 – Underground Cable Injection
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated December 5, 2017, detailing the bid results for underground cable injection services (Materials H). Commissioner Barnes moved to recommend that Bid No. 527 be awarded to the low evaluated bidder, S&C Electric Company for a total annual estimated contract amount of $338,500.00 plus applicable taxes. Commissioner Malinowski seconded the motion, and it passed unanimously.
Consideration of Adoption of the 2017 Budgets for the Electric, Generating and Water Systems
Director of Finance Rick Dyer provided the board with a review of the proposed 2018 Electric, Generating and Water System budgets (Materials I). During the presentation, the board agreed to allocate low income tax credit as recommended by staff. Commissioner Van Dyke proposed that the utility not renew its membership with Pacific Northwest Waterways. CEO/General Manager Wayne Nelson let the board know the annual dues for the organization are $4,170.00, after discussion with the board and Mr. Nelson it was decided that the utility would renew the membership for 2018 and reevaluate membership during the 2019 budget discussion.
Commissioner Barnes moved to recommend adoption of the 2018 Electric System operating and capital budgets as presented and to accept the recommended use of the low income tax credit. Commissioner Malinowski seconded the motion, Commissioners Malinowski and Barnes voted in favor of the motion, Commissioner Van Dyke voted in opposition. The motion passed.
Commissioner Malinowski moved to recommend adoption of the 2018 Generating System operating and capital budgets as presented. Commissioner Barnes seconded the motion and it passed unanimously.
Commissioner Barnes moved to recommend the adoption of the 2018 Water System operating and capital budgets as presented. Commissioner Malinowski seconded the motion and it passed unanimously.
Low Carbon Scenario Analysis
Public Generating Pool (PGP) Executive Director Therese Hampton provided the board with a review of the findings from the report done by E3 (Materials J). Ms. Hampton shared that PGP asked E3 to develop an analytical framework for the northwest to address policies that would support a least-cost approach to carbon emissions and its effect on the northwest resource portfolio.
The analysis that Ms. Hampton reviewed focused on the electric sector, but she stressed there is a lot of interest in a collaboration to develop a multi-sector framework.
Consideration of Renewable Energy Certificate Sales Agreement
Energy Services Project Manager Matt Babbitts addressed the board regarding the Green Lights contract with the Bonneville Environmental Foundation (Materials K). Staff is requesting a two-year contract renewal that retains the current $1.00 per block and a funding shift of 60/40 for renewable energy credits and support of the educational C.E. Program.
Commissioner Barnes moved to approve the two-year contract for Green Lights with the Bonneville Environmental Foundation, Under the new agreement, Green Lights blocks will remain at $1.00 with $.60 for renewable energy credits and $.40 in support of the educational C.E. Program. Commissioner Malinowski seconded the motion and it passed unanimously.
Commissioner Reports and Comments
Commissioners Van Dyke, Malinowski and Barnes all reported on their attendance at the Washington PUD Association Annual meeting held in Spokane.
Commissioner Malinowski reported on his attendance at the Energy Northwest meetings.
Staff Reports
There were no staff reports.
Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 11:53 am.