Meeting of Commissioners of
Public Utility District No. 1 of Clark County, Washington
September 13, 2016

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 13th day of September 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 Water Doug Quinn, Director of Information Services Mike Harris, Director of Engineering Cal Morris, Director of Customer Service Lisa Fix, Materials and Purchasing Manager Cathy Wannamaker, Customer Accounts and Energy Reporting Manager Debbie DePetris, Fleet Manager Paul Chamberlain, Civil Engineer – Water Russ Knutson and Assistant to CEO/General Manager Margaret Anderson.

Press Representatives: None

Others Present: Mike Lyons, Marc Rappaport, Sandra Foltz, Rick Syring, Nancy Newell (Materials A)

At 9:00 a.m., President Barnes called the meeting to order for the transaction of formal business and the board approved the agenda as the order of business. (Materials B).

Member of the public Marc Rappaport addressed the board (Materials C). He complimented the utility on its Community Solar project and encouraged the utility to add similar programs in the future such as solar systems for schools and public buildings.

Consideration of the Minutes of August 23, 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 September 13, 2016, from the District Auditor:

Electric Revenue Fund – $12,521,080.12
Water Revenue Fund – $486,970.88
Generating System Fund – $451,294.89

For a total of $13,459,345.89

Consideration of Bid Award 995 – 37’ Aerial Service Trucks
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated September 13, 2016, detailing the bid results (Materials D). Commissioner Malinowski moved to recommend that Bid No. 995 be awarded to Versalift Northwest, LLC for all six (6) aerial units based on Versalift Northwest, LLC’s ability and willingness to provide a resolution to each of the expectations identified. The additional cost of $18,444.00 for Parker brand hydraulic hoses for all six (6) units bringing the total bid award to $769,726.00 plus applicable taxes. Commissioner Van Dyke seconded the motion, it passed unanimously.

Consideration of Bid Award 998 – NE 70th Ave Waterline
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated September 13, 2016, detailing the bid results (Materials E). Commissioner Van Dyke moved to recommend that Bid No. 998 be awarded to Tapani, Inc. in the amount of $222,222.22 plus applicable taxes. Commissioner Malinowski seconded the motion, it passed unanimously.

Disposal of Surplus Vehicles and Equipment
Materials & Purchasing Manager Cathy Wannamaker reviewed the memo dated September 13, 2016 (Materials F) which summarized the vehicles and equipment to be declared surplus. Commissioner Malinowski moved to that the vehicles and equipment outlined in the presentation be declared surplus and that a public auction be held using JJ Kane Auctioneers. Commissioner Van Dyke seconded the motion, it passed unanimously.

Consideration of Resolutions of Establishment of LUD Nos. 1251, 1254 and 1255
Director of Engineering Cal Morris addressed the Board regarding the Establishment of Local Utility District Nos. 1251, 1254 and 1255 for street lighting.

Resolution No. 7285 – LUD No. 1251 – McLeod Infill
Resolution No. 7286 – LUD No. 1254 – Marbella Subdivision
Resolution No. 7287 – LUD No. 1255 – NE 124th Avenue Subdivision

After the presentation by Mr. Morris, Commissioner Barnes opened the public hearing for comment. There being no public comment, a motion was made by Commissioner Van Dyke seconded by Commissioner Malinowski, and unanimously carried that Resolution Nos. 7285 – 7287 (Materials G) be adopted.

Consideration of Intent to Establish LUD Nos. 1256, 1258 and 1260
Director of Engineering Cal Morris addressed the Board regarding the Intent to Establish Local Utility District Nos. for street lighting.

Resolution No. 7288 – LUD No. 1256 – Sunrise Ridge PH 2
Resolution No. 7289 – LUD No. 1258 – Parkridge 2 Short Plat
Resolution No. 7290 – LUD No. 1260 – Windmill Terrace PH 2

After the presentation by Mr. Morris, Commissioner Barnes opened for comment. There being no public comment, a motion was made by Commissioner Van Dyke, seconded by Commissioner Malinowski, and it was unanimously carried that Resolution Nos. 7288 – 7290 be adopted and a public hearing set for October 11, 2016 (Materials H).

Consideration of Amendment to CLEAResults Simple Steps, Smart Savings Contract
Customer Accounts and Energy Reporting Manager Debbie DePetris addressed the board (Materials I). A review of the Simple Steps, Smart Savings Program outlined the current budget, projected trends and year-end savings. Following the review staff recommended that effective September 1, 2016 rebates for CFLs be discontinued and Clark Public Utilities increase 2016 incentives for LED sales as projected.

Commissioner Malinowski moved to approve the CLEAResult contract amendment to increase the Simple Steps, Smart Savings 2016 budget by $920,000 and to discontinue rebating CFLs effective September 1, 2016. Commissioner Van Dyke seconded the motion and it was passed unanimously

Review of Proposed LED Streetlight Rate
Director of Finance Rick Dyer and Director of Engineering Cal Morris addressed the board regarding revised updates to street lighting rates (Materials J). At the June 28, 2016 board meeting commissioners asked staff to have discussions with local municipalities regarding the updated rates. Following those discussions staff is recommending some minor changes to the rate structure that was presented earlier.

Staff is recommending that the revised LED rate schedule and retirement of the pilot rate program with an effective date of August 1, 2016 be considered for approval at the board meeting on September 27, 2016. The board agreed to consider that rate change resolution at the next board meeting. This will allow for representatives from local municipalities to attend the public hearing and make comment if they would like.

Lastly Mr. Morris then reviewed an LED street light upgrade project for Clark Public Utilities owned lighting. Staff will be requesting funding for this project in the 2017 budget process.

Bond Sale Update
Director of Finance Rick Dyer reviewed with the board the results of the bond sale that occurred on August 25, 2016 (Materials K). Mr. Dyer reported we received very favorable interest rates which will provide for great savings on the utility’s debit service for the Electric and Generating Systems.

The Electric System bonds will be used for long term capital related investments, refund of a portion of outstanding bonds and expenses related to the bond sale. The Generating System bonds will be used for the same purposes, but will also replay line of credit draws used for maintenance related items in 2016.

Commissioner Reports
Commissioners Van Dyke and Barnes reported on their attendance at the Public Power Council meeting.

Staff Reports
There were no staff reports.

Other Business before the Board
Member of the public Nancy Newell commented on the wild fires near Energy Northwest and her concerns for the safety of the nuclear plant.

There being no further business before the Board, the meeting was adjourned at 11:00 a.m.