Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
February 21, 2017

A meeting of Commissioners of Public Utility District No. 1 of Clark County was held in the Electric Center, 1200 Fort Vancouver Way, Vancouver, Washington, on Tuesday, the 21st day of February at the hour of 9:00 a.m.

Present: President Jane Van Dyke, Vice President Jim Malinowski, Commissioners, CEO/General Manager Wayne Nelson, Director of Finance Rick Dyer, Director of Operations Dan Krebs, Director of Engineering Cal Morris, Director of Communications Lena Wittler, Director of Water Doug Quinn, Director of Information Service Mike Harris, Director of Energy Resources Dan Bedbury, Director of Customer Service Lisa Fix, Corporate Communications Manager Erica Erland, Materials and Purchasing Manager Cathy Wannamaker, Energy Resource Manager Terry Toland, Senior Customer Service Representative Michelle Russell, Facilities Worker Dave Spencer and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Rick Syring, Darren Wertz, Roy Koegen, Debbi Haskins, Chris Roberts (Materials A)

At 9:00 a.m., President Van Dyke called the meeting to order for the transaction of formal business.

Commissioner Barnes was excused from the meeting.

Consideration of the Meeting Agenda
There were no changes or corrections (Materials B).

Public Comment on Non Agenda Items
There were no public comments.

Consideration of the Minutes of February 7, 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 February 21, 2017, from the District Auditor:

Electric Revenue Fund – $23,563,119.49
Water Revenue Fund – $706,318.69
Generating System Fund – $443,534.84

For a total of $24,712,973.02

January Service Award Presentation
Director of Customer Service Lisa Fix introduced Michelle Russell, Senior Customer Service Representative. Michelle was recognized for 25 years of service with the utility.

Director of Operations Dan Krebs introduced Dave Spencer, Facilities Worker. Dave was recognized for 20 years of service with the utility (Materials C).

Consideration of Interlocal Agreement with Clark County – Weatherization Intake Appointments
Director of Customer Service Lisa Fix reviewed with the board the updates to the Weatherization Intake Appointment Interlocal Agreement with Clark County (Materials D). After review, Commissioner Malinowski moved to approve the agreement as presented, Commissioner Van Dyke seconded the motion and it passed unanimously.

Consideration of Resolutions of Intent to Establish LUD Nos. 1236, 1274, 1276, 1280, 1281, 1282 and 1283
Director of Engineering Cal Morris addressed the board regarding the Intent to Establish Local Utility District Nos. 1236, 1274, 1276, 1280, 1281, 1282 and 1283 for street lighting.

Resolution No. 7341 – LUD No. 1236 – White Clover
Resolution No. 7342 – LUD No. 1274 – Philbrook Farms PH 1
Resolution No. 7343 – LUD No. 1276 – Fifth Plain Creek PH 1
Resolution No. 7344 – LUD No. 1280 – Avalon Grand PH 7
Resolution No. 7345 – LUD No. 1281 – Avalon Grand PH 10
Resolution No. 7346 – LUD No. 1282 – Avalon Grand PH 8
Resolution No. 7347 – LUD No. 1283 – NW 114th Street

After the presentation by Mr. Morris, Commissioner Van Dyke opened for comment. There being no public comment, a motion was made by Commissioner Malinowski, seconded by Commissioner Van Dyke, and it unanimously carried that Resolution Nos.7341 – 7347 be adopted and a public hearing was set for March 21, 2017 (Materials E).

Consideration of Resolutions of Establishment for LUD Nos. 1270, 1272, 1273, 1275, and 1277
Director of Engineering Cal Morris addressed the board regarding the Establishment of Local Utility District Nos. 1270, 1272, 1273, 1275 and 1277 for street lighting.

Resolution No. 7348 – LUD No. 1270 – Hockinson Park Estates
Resolution No. 7349 – LUD No. 1272 – Glenwood Hollow PH 1
Resolution No. 7350 – LUD No. 1273 – Fraser Downs PH 1
Resolution No. 7351 – LUD No. 1275 – Salmon Creek Manor
Resolution No. 7352 – LUD No. 1277 – Glenwood Pointe

After the presentation by Mr. Morris, Commissioner Van Dyke opened the public hearing for comment. There being no public comment, a motion was made by Commissioner Malinowski, seconded by Commissioner Van Dyke and unanimously carried that Resolution Nos. 7348 – 7352 (Materials F) be adopted.

Consideration of Interlocal Agreement with Clark County for the Overhead Electric Line Relocation – NE 10th Ave Road Project
Director of Engineering Cal Morris addressed the board (Materials G). Mr. Morris reviewed the agreement with Clark County with the board, specifically the impacts of the Buy America requirements on this project. This interlocal agreement outlines construction and payment responsibilities for any work performed by Clark Public Utilities and any rework required due to the Buy America requirements. Commissioner Malinowski moved to approve the interlocal agreement with Clark County for the overhead electric line relocation – NE 10th Avenue road project as presented. Commissioner Van Dyke seconded the motion and it passed unanimously.

Consideration of Interlocal Agreement with the City of Vancouver for the 18th Street Road Project
Director of Engineering Cal Morris shared with the board that the interlocal agreement (Materials H) with the City of Vancouver for the 18th Street road project. This agreement contains the same provisions for construction, payment responsibilities and Buy America rework requirements. Commissioner Malinowski moved to approve the interlocal agreement with the City of Vancouver for the 18th Street road project as presented. Commissioner Van Dyke seconded the motion and it pass unanimously.

Consideration of Bid Award No. 504 – OH Line Relocation for NE 18th Street Road Project
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated February 21, 2017, detailing the bid results (Materials I). Commissioner Malinowski moved to recommend that Bid No. 504 be awarded to DJ’s Electrical, Inc. in the amount of $487,200.00 plus applicable taxes. Commissioner Van Dyke seconded the motion and it passed unanimously.

Consideration of Bid Award No. 507 – LED Cobrahead Changeout
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated February 21, 2017, detailing the bid results (Materials J). Commissioner Malinowski moved to recommend that Bid No. 507 be awarded to DJ’s Electrical, Inc. in the amount of $925,300.00 plus applicable taxes. Commissioner Van Dyke seconded the motion and it passed unanimously.

Consideration of Bid Award No. 508 – Photoelectric Luminaire Controls
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated February 21, 2017, detailing the bid results (Materials K). Commissioner Malinowski moved to recommend that Bid No. 508 be awarded to General Pacific Inc. for photoelectric luminaire controls manufactured by Sun-Tech in the amount of $146,359.50 plus applicable taxes. Commissioner Van Dyke seconded the motion and it passed unanimously.

Consideration of Bid Award No. 509 – HEPA Inlet Filters
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated February 21, 2017, detailing the bid results (Materials L). Commissioner Malinowski moved to recommend that Bid No. 509 be awarded to Donaldson Company, Inc. in the amount of $143,783.20 plus applicable taxes. Commissioner Van Dyke seconded the motion and it passed unanimously.

Sole Source Designation – Ametek
Materials and Purchasing Manager Cathy Wannamaker reviewed the memo dated February 21, 2017 (Materials M). The River Road Generation Plant (RRGP) is requesting this designation due to the need for replacement parts compatible with the 250 VDC (volt direct current) battery chargers. These chargers are used in the event of a power interruption at the RRGP and Ametek is the sole supplier of these products. Commissioner Malinowski moved to approve the sole source designation with Ametek as presented, Commissioner Van Dyke seconded the motion and it passed unanimously.

Consideration of the Water System Revenue and Refunding Bond
Director of Finance Rick Dyer addressed the board (Materials N). Mr. Dyer explained the purpose of the bonds would be to fund long term capital-related investments, refund a portion of outstanding bonds, fund the debt service reserve account and pay expenses of the bond sale. The presentation outlined the not to exceed amounts for the bond sale including a principal amount of $40.0 million, a true interest rate cost of 5% and net present value savings of at least 4%.

Staff recommended the board authorize the sale of bonds and delegate authority to the CEO/General Manager and Director of Finance to sign bond purchase agreements. Commissioner Malinowski moved to authorize the sale of bonds and delegate authority as presented. Commissioner Van Dyke seconded the motion and it passed unanimously.

Consideration of Electric, Generating and Water Systems Line of Credit
Director of Finance Rick Dyer reviewed the memo dated February 13, 2017 (Materials O), summarizing the line of credit renewals for the Electric System, Generating System and the Water System. Staff recommended the board delegate authority to the CEO/General Manager and Director of Finance to complete negotiations for the lines of credit as presented.

Commissioner Malinowski moved to delegate authority to the CEO/General Manager and Director of Finance to complete the negotiations and sign agreements for the 2017 Electric, Generating and Water System lines of credit with US Bank. Commissioner Van Dyke seconded the motion and it unanimously carried that Resolution Nos. 7338 – 7340 be adopted.

Consideration of March Customer Refund Review
CEO/General Manager Wayne Nelson had asked staff to put together a proposal to return surplus funds from 2016 to our customers in order to offset unusually high winter bills. Director of Finance Rick Dyer reviewed with the board his presentation outlining the details of the proposal (Materials P).

Mr. Dyer reported that in 2016 the Electric System realized a cash surplus from lower operating costs and increased sales due to lower than normal temperatures beginning in mid-December and continuing into January. Staff is recommending that the utility allocate $10 million in surplus funds in 2016 to provide customers with a one-time bill credit in the month of March. The funds allocated are specifically $8 million held over from 2014 and previously designated for potential increased operating costs that were never realized in 2015 or 2016, and $2 million in surplus from lower power supply costs in 2016.

Commissioner Malinowski moved to approve the allocation of $10 million in 2016 surplus funds to provide customers with a one-time bill credit in March as presented. Commissioner Van Dyke seconded the motion and it passed unanimously.

The board thanked Mr. Nelson and staff for the hard work that put the utility in a position to be able to credit some of the higher bill costs back to the customer-owners of the utility following this abnormally cold winter.

Commissioner Reports and Comments
Commissioner Malinowski reported on his attendance at the Washington PUD Association meetings and his completion of the required Open Public Records training.

Commissioner Malinowski also shared with the board and CEO/General Manager Wayne Nelson a copy of the resolution that the Columbia Generating Station executive board wants member utilities to pass in support of their continued operation.

Commissioner Van Dyke reported on her attendance at the Columbia River Economic Development Council meeting.

Staff Reports
Joint Processing Remittance Center Review
Director of Finance Rick Dyer reviewed the agreement with Clark County and the other clients that the remittance center currently serves (Materials Q). Mr. Dyer reported that in conjunction with Clark County, the utility did a full review of the joint remittance processing center. After the review it was determined that the joint processing center no long provides a significant enough financial benefit to the utility or the county. Because of this, both entities have recommended a discontinuation of the joint processing center over the next 18 months.

Commissioner Van Dyke wanted to be sure the other clients had been or would be notified of this action, Mr. Dyer reported they had already been notified this was a possibility.

Originally not listed as an action item, Commissioners decided to take action today. Commissioner Malinowski moved to approve the discontinuation of the joint processing center and the serving of external clients no later than June 30, 2018. Commissioner Van Dyke seconded the motion and it passed unanimously.

Other Business before the Board
There being no further business before the Board, the meeting was adjourned at 11:20 a.m.