* Items Taken Out of Order **Non-Agenda Items

Transcription

1 SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT Regular Meeting August 21, 2018 The Regular Meeting was convened by President Kathleen Vaughn at 9:00 a.m. in the Commission Meeting Room. Those attending were Sidney Logan, Vice President; Tanya Olson, Secretary; Interim CEO/General Manager Anne Spangler; Interim General Counsel Kristin Hall; Assistant General Managers Tom DeBoer, John Haarlow, Glenn McPherson, James West, and Brant Wood; Chief Information Officer Dean Galvez; other District staff; members of the public; Clerk of the Board Melissa Collins; and Deputy Clerks of the Board Allison Morrison and Lela Wall. * Items Taken Out of Order **Non-Agenda Items 1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media. Communications & Marketing Director Julee Cunningham reported on District related articles and showed a KING 5 news clip of District crews returning from the California wildfires. 2. Community Engagement. Government and External Affairs Director Jessica Matlock provided at places, by reference made a part of the packet, a copy of the Electric Vehicle (EV) brochure that will be handed out at the Evergreen State Fair. Executive Account Manager Doug O'Donnell mentioned projects the District is working on with the City of Lynnwood and responded to Board questions regarding the substation that will serve the Sound Transit Light Rail project. 3. Other. Principal Engineer Bob Anderson provided an update on the Property Acquisition for the North County 230 kv Addition and noted that the related Resolution would be postponed until an additional environmental property evaluation could be completed. Commissioner Logan requested a deeper dive into the capacity data and metrics used when capital projects are approved, and the due diligence that goes along with that. Interim CEO/General Manager Anne Spangler and Assistant General Manager Distribution & Engineering Services John Haarlow both suggested that reliability statistics and standards, for where projects fit into the forecast and capital plan, be shown during the five-year plan and annual budget presentations. B. Cyber Insurance Update Senior Manager Treasury, Risk Management and Supply Chain Jim Herrling provided Cyber Insurance recommendations for the District.

2 Regular Meeting 2 August 21, 2018 Next steps included working with a broker to formalize the quote and return on September 4, 2018, for Board consideration of a Resolution authorizing the CEO/General Manager or Treasurer to bind coverage. Insurance broker Van Vong with Marsh Inc. further explained the recommended coverage and, in response to Commissioner Logan's inquiry on premiums and the way the insurance industry looks at utilities, mentioned the application process. C. Energy Risk Management Report 2 nd Quarter 2018 Senior Manager Rates, Economics & Energy Risk Management Brian Booth provided an overview of the second quarter of Generally above average hydro production was good for Supply, while Demand came in close to planned. Since utilizing a new model, the Demand Annual Average Forecast Error dropped substantially and continued to perform well. Market Prices decreased due to an overall additional water supply and low demand for heat and load during the warmer periods. Forward Prices remained stable. The Credit Limit Analysis, Financial Load Resource Imbalance Test, and Price Volatility Test had no violations this quarter. A discussion ensued about Climate Change impacts and where the District would be if there was a pump storage above Jackson and what the cost ratio would be to sell off the excess water. D. Water Supply Update Short-Term Power Trader Mike Shapley provided a presentation on Water Year 2018 (WY' 18), October 2017 through September The agenda included the WY' 18 forecast update and summary, Henry M. Jackson Hydroelectric Project (Jackson) and Slice generation, short-term price forecast and resource balance, and a look ahead. Mr. Shapley noted that Jackson Hydro's Generation was 106 percent of average and precipitation was 100 percent of average. There were no violations, as Spada Lake Elevation was within license requirements. This lead to a discussion about Federal Energy Regulatory Commission (FERC) required temperature conditioning. The meeting recessed at 10:42 a.m. and reconvened at 10:56 a.m. E. Washington Paid Family and Medical Leave Assistant General Counsel Branda Andrade provided information on the upcoming new law for Paid Family and Medical Leave (PFML) enacted by State Legislature. The presentation included the background of the law, phases of the Rulemakings, Benefits, Eligibility, and Interaction with Other Paid Leave, and how the new law could affect Collective Bargaining Agreements (CBAs).

3 Regular Meeting 3 August 21, 2018 Senior Employee Resources Consultant Sharon Reijonen mentioned the next steps, which included the District analyzing the effects of this law. Staff will bring that information to the Board at an October meeting. Commissioner Vaughn requested a sheet listing the pros and cons, regarding the recommendation made. Ms. Reijonen responded that the recommendation will be supported by a business case that contained the requested information. F. Customer Experience Assistant General Manager Customer & Energy Services Jim West provided an update on the 2018 Customer Experience Roadmap presentation from April 24, 2018, that included what the District has learned, as well as the plan moving forward to improve the Customer Experience. A completed analysis summary identified the following key areas to address gaps: Voice of the Customer, customer focused surveys and creating a strategy for improved customer and employee engagement; Design & Delivery, returning in November with a recommendation to award a vendor contract that would offer more enhanced tools, continuous website functionality, outage communication improvements, frequent upgrades, and more self-service options; and Leadership, Culture, & Organization, customer service experience initiatives and customer-centric training. The Board requested to review the questions being asked on the upcoming customer satisfaction surveys, the final reports of other customer focused surveys, and the data comparing winter bi~monthly billing versus monthly billing Business Services Representative Becky Wright inquired how Customer Service Reps could be more involved in providing exceptional customer service and Mr. West suggested Ms. Wright speak with her Call-Center manager, as the work being done was being communicated to the teams. The meeting recessed at 12: 17 p.m. RECONVENE REGULAR MEETING The Regular Meeting was convened by President Kathleen Vaughn at 1:30 p.m. in the Commission Meeting Room. Those attending were Sidney Logan, Vice President; Tanya Olson, Secretary; Interim CEO/General Manager Anne Spangler; Interim General Counsel Kristin Hall; Assistant General Managers Tom DeBoer, John Haarlow, Glenn McPherson, James West and Brant Wood; Chief Information Officer Dean Galvez; other District staff; members of the public; Clerk of the Board Melissa Collins and Deputy Clerks of the Board Allison Morrison and Lela Wall. * Items Taken Out of Order **Non-Agenda Items

4 Regular Meeting 4 August 21, COMMENTS FROM THE PUBLIC David Chan, Everett, was impressed that the Warm Beach financial impact statement was posted per his request. Mr. Chan also complimented Commissioner Vaughn for her institution knowledge. Mr. Chan spoke of the complexity of the rate structure, being an environmentalist, and addressed cyber security concerns. 3. CONSENT AGENDA A. Approval of Minutes for the Special Meeting of May 31, 2018 B. Bid Awards, Professional Services Contracts and Amendments Public Works Contract Award Recommendations Over $25,000: Request for Proposal No. Doc with Michels Power, a division of Michels Corp. Formal Bid Award Recommendations $60,000 and Over: Professional Services Contract Award Recommendations $200,000 and Over: Miscellaneous Contract Award Recommendations $200,000 and Over: Cooperative Purchase Recommendations: Contracts: Amendments: Sole Source Purchase Recommendations: Emergency Declarations, Purchases and Public Works Contracts: Purchases Involving Special Facilities or Market Condition Recommendations: Formal Bid and Contract Amendments: Miscellaneous No with Benefitfocus.com Inc. Professional Services Contract No. CW with Leslie Kennedy Contract Acceptance Recommendations: C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers D. Consideration of a Resolution Approving Amendment No. 4 to the Collective Bargaining Agreement Between the Public Utility District No. 1 of Snohomish County and the International Brotherhood of Electrical Workers, Local No. 77, for the Period of April 1, 2017, through March 31, 2020

5 Regular Meeting 5 August 21, 2018 A motion passed approving Agenda Item 3A - Approval of Minutes for the Special Meeting of May 31, 2018, with Commissioner Olson abstaining. A motion unanimously passed approving Agenda Item 3B -Bid Awards, Professional Services Contracts and Amendments; 3C - Certification/Ratification and Approval of District Checks and Vouchers; and 3D-Resolution No approving Amendment No. 4 to the Collective Bargaining Agreement between the Public Utility District No. 1 of Snohomish County and the International Brotherhood of Electrical Workers, Local No. 77, for the period of April 1, 2017, through March 31, ITEMS FOR INDIVIDUAL CONSIDERATION A Budget Notice of Public Hearing A motion unanimously passed approving the proposed Notice of Public Hearings for the 2019 Preliminary Budget as presented in the packet (October 1, November 6, November 20, and December 4, 2018). 5. COMMISSION BUSINESS A. Commission Reports The Board reported on the Arlington Microgrid Groundbreaking Ceremony. Commissioner Vaughn mentioned that she would like to attend the ribbon-cutting event for this project. 6. GOVERNANCE PLANNING A. Governance Planning Calendar Interim CEO/General Manager Anne Spangler noted the following topics for staff to follow up on: the customer satisfaction surveys; a deep dive into the District's capital plan; and how growth is planned. The rate restructure discussion has been rescheduled to November 6, EXECUTIVE SESSION The Regular Meeting recessed at 1 :53 p.m., and reconvened into Executive Session at 2:02 p.m. to discuss the performance of a public employee and to review the qualifications of an applicant for public employment, under the terms set forth in the Open Public Meetings Act. It was anticipated the Executive Session would last approximately 3 hours, with no public announcements. Those in attendance were Commissioners Kathleen Vaughn, Sidney Logan, Tanya Olson; Lanie Mycoff of Mycoff, Fry & Prouse; and Clerk of the Board Melissa Collins. The Commission immediately adjourned the Regular Meeting upon conclusion of the Executive Session.

6 Regular Meeting. 6 August 21, 2018 ADJOURNMENT There being no further business or discussion to come before the Board, the Regular Meeting of August 21, 2018, adjourned at 4: 18 p.m. An audio file of the meeting is on file in the Commission Office and available for review..k_.