SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF COMMISSIONERS REGULAR MEETING Everett Headquarters Building, 2320 California Street

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1 SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF COMMISSIONERS REGULAR MEETING Everett Headquarters Building, 2320 California Street January 22, 2019 CONVENE REGULAR MEETING - 9:00 a.m. - Commission Meeting Room 1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media 2. Legislative 3. Community Engagement 4. Other B NERC/WECC Audit C. Energy Risk Management Report 4 th Quarter 2018 D. Water Supply Update EXECUTIVE SESSION - Recess into Executive Session to Discuss Current or Potential Litigation Training Center Room 1 RECONVENE REGULAR MEETING - 1:30 p.m. - Commission Meeting Room 2. COMMENTS FROM THE PUBLIC 3. CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of January 8, 2019 B. Bid Awards, Professional Services Contracts and Amendments C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers D. Consideration of a Resolution Approving Amendment No. 6 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 E. Consideration of a Resolution Approving Amendment No. 7 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, COMMISSION BUSINESS A. Commission Reports 5. GOVERNANCE PLANNING A. Governance Planning Calendar ADJOURNMENT January 28, 2019: CleanTech Alliance CleanTech Day (Olympia, Washington) January 31, 2019: Economic Alliance of Snohomish County State of Everett (Angel of the Winds Arena, Everett, Washington) The next scheduled regular meeting is February 5, 2019 Agendas can be found in their entirety on the Snohomish County Public Utility District No. 1 web page at The public is invited to attend. Parking and meeting rooms are accessible for persons with disabilities. Contact the Commission Office at for special accommodations or additional information. 1/129

2 BUSINESS OF THE COMMISSION Meeting Date: January 22, 2019 Agenda Item: 1 TITLE: CEO/General Manager s Briefing and Study Session SUBMITTED FOR: Briefing and Study Session CEO/General Manager John Haarlow 8473 Department Contact Extension Date of Previous Briefing: N/A Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Executive Limitations, EL-9, Communications and Support to the Board the CEO/General Manager shall...marshal for the board as many...points of view, issues and options as needed for fully informed Board choices. List Attachments: CEO/General Manager s Briefing and Study Session attachments 2/129

3 Snohomish PUD Detail Report High Priority Bills Bill Details Status Sponsor Position Clean energy H Env & Energy Tarleton Concerns Supporting Washington's clean energy economy and transitioning to a clean, affordable, and reliable energy future. HB 1211 (SB 5116) Establishes the Washington clean energy transformation act. Addresses the elimination of coal-fired electricity and the transition of the state's electricity supply to one hundred percent carbon neutral by Provides that it is the policy of the state that all retail sales of electricity to the state's customers be greenhouse gas neutral by January 1, Requires the department of commerce to convene an energy and climate policy advisory committee to develop recommendations to the legislature for the coordination of existing resources, or the establishment of new ones, to: (1) Examine the costs and benefits of energy-related policies, programs, functions, activities, and incentives; and (2) Conduct other energy-related studies and analyses as may be directed by the legislature. Requires the department of health to conduct a cumulative impact analysis to designate the communities highly impacted by fossil fuel pollution and climate change. Requires 100% of carbon emitting resources be eliminated from utility resources by January 1, This bill is continuing the momentum from HB 2995 ( 100% bill) introduced in the 2018 session. This incorporates work done over the interim. It is Governor request legislation. Clean energy S Environment, E Carlyle Concerns Supporting Washington's clean energy economy and transitioning to a clean, affordable, and reliable energy future. SB 5116 (HB 1211) Establishes the Washington clean energy transformation act. Addresses the elimination of coal-fired electricity and the transition of the state's electricity supply to one hundred percent carbon neutral by Provides that it is the policy of the state that all retail sales of electricity to the state's customers be greenhouse gas neutral by January 1, Requires the department of commerce to convene an energy and climate policy advisory committee to develop recommendations to the legislature for the coordination of existing resources, or the establishment of new ones, to: (1) Examine the costs and benefits of energy-related policies, programs, functions, activities, and incentives; and (2) Conduct other energy-related studies and analyses as may be directed by the legislature. Requires the department of health to conduct a cumulative impact analysis to designate the communities highly impacted by fossil fuel pollution and climate change. Requires 100% of carbon emitting resources be eliminated from utility resources by January 1, This bill is continuing the momentum from HB 2995 ( 100% bill) introduced in the 2018 session. This incorporates work done over the interim. It is Governor request legislation. SB 5223 Electrical net metering S Environment, En Palumbo Concerns Concerning net metering. Increases net metering threshold to 4% of peak 1996 demand. Modifies certain net metering of electricity provisions regarding the cumulative generating capacity available; unused kilowatt-hour Detail Report January 18, 2019 Page 1 of 6 3/129

4 credits used to assist qualified low-income residential customers; and kilowatt-hours of electricity consumed for the most recent twelve-month period required on customer billing statements. Requires the state building code council, in consultation with the department of commerce and local governments, to conduct a study of the state building code and adopt changes necessary to encourage greater use of renewable energy systems. Requires the department of commerce to convene a work group to identify issues and laws associated with the future of net metering. Provides a June 30, 2021, expiration date for the work group. Snohomish has held several conversations about the future of net metering with environmental, solar, and utility stakeholders throughout the interim. This begins the conversation and incorporates some utility-input seen in the 2018 session. Medium Priority Bills Bill Details Status Sponsor Position HB 1006 Underground facilities H Env & Energy Appleton Adopting new requirements for locating underground facilities, including positive response, minimum marking standards, adopting a new process for coordinating large projects, and requiring new and replacement facilities to be locatable. Revises underground facilities provisions regarding the requirements of facility operators and excavators and the one-number locator service. This bill incorporates some efforts by Seattle City Light and Tacoma Public Utilities to address desired changes to dig law. It currently does not have a lot of momentum. HB 1102 (SB 5134) Capital budget H Cap Budget Tharinger Concerning the capital budget. Funds capital projects. HB 1108 (SB 5154) Supp. operating budget H Approps Ormsby Making biennium second supplemental operating appropriations. Makes biennium second supplemental operating appropriations. HB 1109 (SB 5153) Operating budget H Approps Ormsby Making biennium operating appropriations. Makes biennium operating appropriations. HB 1110 Greenhouse gas/transp. fuels H Env & Energy Fitzgibbon Reducing the greenhouse gas emissions associated with transportation fuels. Supports the deployment of clean transportation fuel technologies through a carefully designed Detail Report January 18, 2019 Page 2 of 6 4/129

5 program that reduces the carbon intensity of fuel used in the state, in order to: (1) Reduce levels of conventional air pollutants from diesel and gasoline that are harmful to public health; (2) Reduce greenhouse gas emissions associated with transportation fuels, which are the state's largest source of greenhouse gas emissions; and (3) Create jobs and spur economic development based on innovative clean fuel technologies. Requires the joint legislative audit and review committee to: (1) Analyze, by December 1, 2027, the impacts of the initial five years of clean fuels program implementation; and (2) Submit a report to the legislature that summarizes the analysis. This is otherwise referred to as the Low Carbon Fuel Standard. This became a politically divisive issue during the 2015 legislative session. Though this policy proposal has been introduced over the years since, it gained momentum in the 2018 session and even more this year with after the results of the election. There have been several stakeholder meetings and work sessions on this legislation over the interim. Distributed energy H Env & Energy Morris Concerns Enabling electric utilities to prepare for the distributed energy future. HB 1126 Declares that the policy of the state, that a distributed energy resources planning process engaged in by an electric utility, should accomplish the following: (1) Identify the data gaps that impede a robust planning process as well as any upgrades; (2) Propose monitoring, control, and metering upgrades; (3) Identify potential programs and tariffs to fairly compensate customers for the value of their distributed energy resources; (4) Forecast the growth of distributed energy resources on the utility's distribution system; (5) Provide a ten-year plan for distribution system investments and an analysis of nonwires alternatives for major transmission and distribution investments; and (6) Include the distributed energy resources in the plan in the utility's integrated resource plan. Requires the legislature to, by January 1, 2023, conduct an initial review of the state's policy pertaining to distributed energy resources planning. This is an introduction of last year s DER planning bill. It appears in the same form as we ve previously seen. Transp. electrification H Env & Energy Morris Concerns Concerning the electrification of transportation. HB 1127 Authorizes the governing authority of an electric utility, formed under chapter RCW (municipal utilities), and the commission of a public utility district to adopt a transportation electrification plan. Requires the department of commerce to arrange for a study of utility capital expenditures projected to be driven by growth in distributed resources, including photovoltaic systems, electric vehicles, and other customer-owned technologies identified as likely to cause a shift in capital expenditures. Requires the study to survey each of the state's utilities and include a low and high adoption scenario for each resource. Provides that this act is null and void if appropriations are not approved. This is a reintroduction of language seen during the 2018 session. This foregoes stakeholder input provided over the interim and is not the desired vehicle for this policy. HB 1129 Customer-sited electricity H Env & Energy Morris Concerns Concerning customer-sited electricity generation. Authorizes an electric utility to: (1) Offer to make net metering available to eligible customergenerators with large net metering systems or small net metering systems; (2) Offer an alternative to Detail Report January 18, 2019 Page 3 of 6 5/129

6 net metering for customer-generators with large net metering systems or small net metering systems in all or certain increments of the utility's distribution system; and (3) Use net metering credits to assist qualified low-income residential customers of the electric utility in paying their electricity bills. Places responsibility on a customer-generator for the purchase of a production meter and software if it is required by the electric utility to provide meter aggregation. Requires customer billings issued by certain light or power businesses or gas distribution businesses to include the total amount of kilowatt-hours of electricity consumed for the most recent twelve-month period. This is a reintroduction of language seen during the 2018 session. This foregoes stakeholder input intensely worked on over the interim and is not the desired vehicle for this policy. HB 1187 Fish habitat projects H RDev, Ag&NR Dent Revising hydraulic project eligibility standards under RCW for conservation districtsponsored fish habitat enhancement projects. Allows a fish habitat enhancement project to be approved by conservation districts as conservation district-sponsored fish habitat enhancement or restoration projects in order to receive a permit review and approval process. HB 1222 (SB 5191) PUD contracting H Local Govt Griffey Support Concerning public utility districts' contracts for work or materials. The PUD was part of contributing to constructing language and pathways in this bill. Contracting thresholds ( bid limits ) have not been addressed at the legislative level in roughly ten years. HB 1226 Clean energy H Env & Energy DeBolt Encouraging investment in and reducing the costs of transitioning to the clean energy future. This bill roughly mirrors Rep. DeBolt s clean energy proposal seen in the 2018 session, HB It is not viewed as the benchmark policy pathway for carbon policy during the 2019 session, however, may become a larger part of the conversation as it takes a different approach. HB 1257 (SB 5293) Energy efficiency H Env & Energy Doglio Concerning energy efficiency. This proposal is by request of the Governor to address building energy usage (residential and commercial building usage making up the second largest sector of carbon emissions). Provisions of this proposal place utilities in the position to interact with customers on these programs, similar to the Washington State University solar production incentive program. Broadband internet access S Environment, E McCoy Providing access to broadband internet services. SB 5085 Authorizes a unit of local government or other subdivision of the state to provide broadband services when approved by the utilities and transportation commission pursuant to certain requirements. This approach does not mandate local governments to participate in these services. Detail Report January 18, 2019 Page 4 of 6 6/129

7 Appliance efficiency S Environment, E Carlyle Support Concerning appliance efficiency standards. SB 5115 Modifies provisions regarding efficiency standards for appliances. The general approach of this legislation mirrors many of Snohomish s principles around efficiency and grid integration. SB 5134 (HB 1102) Capital budget S Ways & Means Frockt Concerning the capital budget. Funds capital projects. SB 5153 (HB 1109) Operating budget S Ways & Means Rolfes Making biennium operating appropriations. Makes biennium operating appropriations. SB 5154 (HB 1108) Supp. operating budget S Ways & Means Rolfes Making biennium second supplemental operating appropriations. Makes biennium second supplemental operating appropriations. SB 5191 (HB 1222) PUD contracting S Environment, E Takko Support Concerning public utility districts' contracts for work or materials. Addresses a public utility district's contracts for work or materials. SB 5213 (HB 1161) Supp. transportation budget S Transportation Hobbs Making supplemental transportation appropriations. Makes supplemental transportation appropriations. SB 5214 (HB 1160) Transportation budget S Transportation Hobbs Making transportation appropriations for the fiscal biennium. Makes transportation appropriations for the fiscal biennium. SB 5280 Community solar gardens S Environment, E McCoy Concerning community solar gardens. The general intent of this legislation is to open opportunities to low income and other individuals to participate in purchasing and consuming solar electricity. Detail Report January 18, 2019 Page 5 of 6 7/129

8 SB 5293 (HB 1257) Energy efficiency S Environment, E Carlyle Concerning energy efficiency. SB 5305 (HB 1334) Electric util wildland fires S Ag/Water/Natur Van De Wege Concerning electric utility wildland fire prevention. This is a WPUDA-centric proposal that has had some input from Snohomish staff before its introduction. SB 5336 Electric transportation S Environment, E Palumbo Advancing electric transportation. This is a package proposal that addresses multiple vehicle electrification issues. It does incorporate electric vehicle authority language, though not the same version as worked on by key stakeholders over the interim. This will likely be addressed soon. Detail Report January 18, 2019 Page 6 of 6 8/129

9 2018 NERC/WECC Audit Public Utility District No.1 of Snohomish County (SNPD) John D. Martinsen, P.E. Senior Manager, Transmission Management/NERC Compliance 9/129 Officer January 22, 2019

10 2 SNPD Overview 1. Background 2. Audit 3. Results 4. Success Factors 10/129

11 3 1. Background FERC Federal Energy Regulatory Commission NERC North American Electric Reliability Corporation WECC Western Electricity Coordinating Council 11/129

12 4 1. Background cont. Mandatory Compliance and National Energy Power Act of 2005 On August 8, 2005, President Bush signed H.R. 6, The Energy Policy Act of 2005, into law. Title XII-Electricity, contains the reliability provisions authorizing the creation of a self-regulatory Electric Reliability Organization (ERO) with FERC oversight in the United States. On July 20, 2006, FERC issued an order certifying NERC as the ERO for the United States. Mandatory compliance with the initial Reliability Standards was effective June 18, /129

13 5 1. Background continued Florida Reliability Coordinating Council (FRCC) Midwest Reliability Organization (MRO) Northeast Power Coordinating Council (NPCC) ReliabilityFirst (RF) SERC Reliability Corporation (SERC) Midwest Reliability Organization (MRO) Western Electricity Coordinating Council (WECC) 13/129

14 6 1. Background - continued WECC staff conducted the SNPD audit. The audit is used to confirm compliance with NERC Reliability Standards. The audit focused on Critical Infrastructure Protection (cyber/physical) and Operations & Planning Standards. The audit is typically scheduled for two weeks. five days off-site five days on-site SNPD received a reduced scope due to historically strong performance. Approximately 15% of the Reliability Standards applicable to SNPD were included in the audit. SNPD was prepared to address all applicable Standards. Currently, SNPD must meet over 800 applicable 14/129 Requirements.

15 7 2. Audit SNPD received the Audit Notification Letter on July 31, The off and on-site audit was scheduled from October 29, 2018 November 8, There were: 41 data requests 15 WECC audit team members 5 on-site and 10 off-site Previous audits were conducted in January of 2012 and /129

16 8 3. Results SNPD passed its third WECC on-site audit of NERC Reliability Standards with No Potential Noncompliance. SNPD completed the on-site portion of the audit in four days. SNPD started work on its 2018 on-site audit immediately after the 2015 audit was concluded. Internal reviews, gap analysis, and mock audits are conducted in-between on-site audits. 16/129

17 9 3. Results continued Cover page of the Draft WECC Audit Report. No Potential Noncompliance findings 17/129

18 10 4. Success Factors Support from the NERC Compliance Steering Team. Includes the General Manager/CEO, General Counsel, AGMs with compliance obligations. Coordination and collaboration with the NERC Compliance Coordination Workgroup. Includes management, subject matter experts and Compliance Department staff. Comprehensive documented Internal Compliance Program ("ICP"). Knowledgeable and trained staff committed to meeting compliance with the mandatory NERC Reliability Standard requirements. 18/129

19 11 Questions? 19/129

20 Energy Risk Management Committee Quarterly Report to the Commission Fourth Quarter 2018 January 22, 2019 Brian Booth Senior Manager - Rates, Economics, & Energy Risk Management 20/129

21 A Little Background Snohomish County PUD engages in transactions in order to meet customer loads in a dependable, safe and responsible manner These transactions include buying, selling, and scheduling of electric power, options for electric power, or other energy commodities as necessary to meet load and mitigate risk In 2008, the commission updated the policy to include financial hedges based on the prices of underlying physical energy 21/129 2

22 Risk Management The PUD operates a comprehensive risk management program designed to address all facets of power supply risk. These include: Volume Risk Lost Opportunity (Regret) Risk Market Risk Liquidity Risk Operational (Execution) Risk Event Risk Credit Risk 22/129 3

23 10/1/ /4/ /7/ /10/ /13/ /16/ /19/ /22/ /25/ /28/ /31/ /3/ /6/ /9/ /12/ /15/ /18/ /21/ /24/ /27/ /30/ /3/ /6/ /9/ /12/ /15/ /18/ /21/ /24/ /27/ /30/2018 Slice, amw Supply Actual Relative to Planned Q4 October November December Slice 99% 91% 106% 99% Wind 84% 65% 93% 92% Jackson 108% 72% 127% 106% TOTAL 99% 87% 108% 99% Actual Planned 23/129 4

24 1-Oct-18 4-Oct-18 7-Oct Oct Oct Oct Oct Oct Oct Oct Oct-18 3-Nov-18 6-Nov-18 9-Nov Nov Nov Nov Nov Nov Nov Nov-18 3-Dec-18 6-Dec-18 9-Dec Dec Dec Dec Dec Dec Dec Dec-18 Load, amw Temperature, Degrees Fahrenheit Actual Relative to Planned Loads Demand Q4 October November December Forecast Actual TOTAL 99% 100% 98% 99% Load, Actual Load, Planned Maximum Temperature, Actual Average Temperature, Actual Maximum Temperature, Historical Average Temperature, Historical 24/129 5

25 Forecast Demand Over Time 18% SnoPUD Historical Month-Ahead Forecasting Error 16% 14% 12% New Model 10% 8% 6% 4% 2% 0% Monthly Forecast Error Annual Average Forecast Error 25/129 6

26 $ / MWh Market Prices $ $ $80.00 $60.00 $40.00 $20.00 $0.00 Real-Time Prices Day-Ahead Prices 26/129 7

27 01/04/18 01/14/18 01/24/18 02/03/18 02/13/18 02/23/18 03/05/18 03/15/18 03/25/18 04/04/18 04/14/18 04/24/18 05/04/18 05/14/18 05/24/18 06/03/18 06/13/18 06/23/18 07/03/18 07/13/18 07/23/18 08/02/18 08/12/18 08/22/18 09/01/18 09/11/18 09/21/18 10/01/18 10/11/18 10/21/18 10/31/18 11/10/18 11/20/18 11/30/18 12/10/18 12/20/18 12/30/18 $/MWh Forward Prices December 2019, Heavy Load Hour Calendar Year 2020, Heavy Load Hour 27/129 8

28 Tests 28/129

29 Credit Limit Analysis The District has approximately 35 approved trading counterparties Each counterparty is rated on a scale from A (high) to D (low), and sales and purchases are allowed to be made in declining terms and amounts $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 PUD TRADING COUNTERPARTY CREDIT NO Violations during the quarter. $- CURRENT PUD COUNTERPARTIES AS OF JAN 2019 Current Exposure Remaining Credit 29/129 10

30 Purchases Sales Financial Load Resource Imbalance Test Risk limits for this test apply to our net power position using Slice and Wind generation at critical conditions $40.0 $30.0 F O R W A R D M A R K E T V A L U E O F O P E N P O S I T I O N S ( $ I N M I L L I O N S ) P25 Critical No open position is allowed to have a market value greater than: $20.0 $10.0 $6.2M in any one-month $0.0 $13.6M for one-quarter ($10.0) $30.8M for one-year ($20.0) $39.8M in total for all positions added together NO Violations during the quarter ($30.0) ($40.0) AS OF JAN /129 11

31 Price Volatility Test Our net long or short positions are subject to risk through, among other things, movements in market prices Risk limits for this test apply for possible one-day and five-day price movements Possible price movements are calculated on the basis of currently observed price volatility in forward markets One Week Increase in Value of Short Positions One Week Limits One Week Increase 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 Risk Limit exceeded on 11/15/18 AS OF 11/15/18 31/129 12

32 What Happened Power 32/129 13

33 Questions? 33/129

34 Water Supply Update Snohomish County PUD Mike Shapley, Short-Term Power Trader Commission Meeting January 22, /129

35 Agenda: PUD energy resource portfolio. WY (water year) 19 existing conditions. Hydro update: PUD owned resources and Slice generation. Weather forecast. Short term price forecast and load resource balance. A look ahead. 35/129 2

36 PUD energy resource portfolio: Over 85% of PUD resources rely on water supply 36/129 3

37 WY 19 current conditions: We began the WY with drier than average soil conditions and below average reservoir content. The water supply forecast is below average but not critical. Canadian headwater snow is near average. 37/129 4

38 WY 19 weather summary: Oct 18 Jan 19 Seasonal precipitation is mixed. Wetter to the north, dryer to the south. Warmer temperatures have not been good for snow pack. We like to see blue in the winter months. 38/129 5

39 WY 19: Reservoir storage vs. 5 year average. 6 39/129

40 WY 19 PUD owned Hydro: January 19 The Spada Lake reservoir is in a State 3 operation which allows discretionary generation if needed. Spada Lake is within the license required elevation. Rainfall: 81 % of avg. Generation: 105 % of avg. Spada Basin snow: 71% avg. PUD run of river small Hydro (Young s Creek, Hancock and Calligan): Operational and generating as planned. 7 40/129

41 Slice generation: The importance of water supply. 41/129 8

42 WY 19 ENSO forecast: Existing sea surface temperatures compared to average: Temps are elevated however atmospheric conditions have not led to stronger El Nino conditions. Weakening El Nino probabilities. Temperatures favoring warmer conditions Jan May. Precipitation anomalies are less predictable. 42/129 9

43 WY 19 weather forecast: Three month forecast: Temperature, Feb - Apr Three month forecast: Precipitation, Feb - Apr 43/129 10

44 Short-term forward prices: In addition to water supply the Mid-Columbia trading hub responds to prices and conditions in adjacent states and province's (California, British Columbia, Alberta). Southern California: Natural gas infrastructure disruptions (storage and pipeline), gas generation retirements and influx of renewables has created greater price volatility in winter and summer months. 44/129 11

45 WY 19 Load Resource Balance: 45/129 12

46 A look ahead: Northwest water supply forecast: Conditions in the water supply basin are mostly below average with the upper Columbia near average. Critical snow accumulation months of February and March will increase or decrease water supply conditions. Reservoir storage: The BC hydro group is below average while the Mid-Columbia hydro group is near average. Concerning but not critical. California: Hydro reservoir group is above average. Hydro is a small portion of California's energy portfolio but provides capacity during peak loads. Natural gas curtailments remain a concern for the June September period. Weather: Weak El Nino conditions exist. El Nino probabilities weaken as we approach the spring. Equal chance of neutral and El Nino conditions are forecast as we approach June. Future probabilities are not guaranteed. Water supply position: The PUD remains in a good position with BPA forecasted slice generation at P25 conditions (75% probability generation will be higher). 46/129

47 E X E C U T I V E S E S S I O N Tuesday, January 22, 2019 Discussion of Current or Potential Litigation - Approximately 45 Minutes 47/129

48 COMMENTS FROM THE PUBLIC 48/129

49 BUSINESS OF THE COMMISSION Meeting Date: January 22, 2019 Agenda Item: 3A TITLE Approval of the Minutes for the Regular Meeting of January 8, 2019 SUBMITTED FOR: Consent Agenda Commission Melissa Collins 8616 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4) a non-delegable, statutorily assigned Board duty as defined under RCW minutes. List Attachments: Preliminary Minutes 49/129

50 PRELIMINARY SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT Regular Meeting January 8, 2019 The Regular Meeting was convened by President Sidney Logan at 9:00 a.m. in the Commission Meeting Room. Those attending were Tanya Olson, Vice President; CEO/General Manager John Haarlow; General Counsel Anne Spangler; Assistant General Managers Tom DeBoer, Glenn McPherson, and Brant Wood; Chief Information Officer Dean Galvez; other District staff; members of the public; Clerk of the Board Melissa Collins; and Deputy Clerk of the Board Allison Morrison. * Items Taken Out of Order **Non-Agenda Items 1. Commission Business A. Oath of Office Rebecca J. Wolfe, Commissioner District 2 Rebecca Wolfe took her Oath of Office for the position of Commissioner District 2. Prior to taking her seat at the dais, Ms. Wolfe spoke about her gratitude and resolutions for her term on the Board. 2. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media. Communications & Marketing Director Julee Cunningham reported on District related articles. CEO/General Manager John Haarlow commented on the recent success and improvement of the District s storm restoration process. 2. Community Engagement. Executive Account Manager Shelley Pattison provided updates on the status of the Electrify America funded, Level 2 electric vehicle charging stations; the Renewable Rate Pilot for the City of Edmonds; the District s 2019 City Fact Sheets; and the plans for staff tours of Paine Field. 3. Other. There were no other updates. B. King County Master License Agreement Project Manager Maureen Moe Nave provided a brief presentation on the District s Master License Agreement (MLA) with King County, which would expire on January 13, Ms. Nave noted that King County proposed installing Microwaves and ground equipment, for an Emergency Response System, at the Three Lakes Communication Tower site. A resolution was to be brought for Board consideration, at the afternoon session, to authorize execution of a new proposed MLA with King County. 50/129

51 Regular Meeting 2 January 8, 2019 C. Open Government Training General Counsel Anne Spangler provided training on the Open Public Meetings Act, the Public Records Act, and records retention requirements, all of which are State required for elected officials and public records officers. Training materials from the Attorney General and State Archivist were used. In response to clarifying questions from the Board, Ms. Spangler stated that she would confirm the approximate costs to the District for public records requests and whether fees are charged for non-profit organizations. Ms. Spangler also stated that she would check to see if there was still information available on the District s 2007 Climate Change Policy, at Commissioner Wolfe s request. The training lasted approximately an hour and twenty minutes. Those in attendance included Commissioner Sidney Logan; Commissioner Tanya Olson; Commissioner Rebecca Wolfe; CEO/General Manager John Haarlow; Assistant General Managers Tom DeBoer, Glenn McPherson, and Brant Wood; Chief Information Officer Dean Galvez; Senior Manager Pam Baley; Government and External Affairs Director Jessica Matlock; Communications and Marketing Director Julee Cunningham; Clerk of the Board Melissa Collins; Deputy Clerk of the Board Allison Morrison. **X. COMMENTS FROM THE PUBLIC Jenny Young, with the Snohomish County Energy Assistance Program, provided a handout at places, by reference made a part of the packet. Ms. Young updated the Board on the 2018/2019 season of the Low Income Energy Assistance Program. Lora Cox, Lake Forest Park spoke about the California wildfires, regarding Pacific Gas and Electric Company (PG&E); inquired about the status of the Sunset Falls property; and asked if there would be a presentation to the Board, prior to the Arlington solar kick-off. The date provided for that presentation was February 5, Mr. Haarlow responded that staff would take the Sunset Falls property question as an action item for follow up. Mary Rollins, spoke about the challenges for ratepayers on fixed-incomes. The meeting recessed at 10:46 a.m. 51/129

52 Regular Meeting 3 January 8, 2019 RECONVENE REGULAR MEETING The Regular Meeting was reconvened by President Sidney Logan at 1:30 p.m. in the Commission Meeting Room. Those attending were Tanya Olson, Vice President; Rebecca Wolfe, Secretary; CEO/General Manager John Haarlow; General Counsel Anne Spangler; Assistant General Managers Tom DeBoer, Glenn McPherson, and Brant Wood; Chief Information Officer Dean Galvez; other District staff; members of the public; Clerk of the Board Melissa Collins; and Deputy Clerk of the Board Allison Morrison. * Items Taken Out of Order **Non-Agenda Items 3. RECOGNITION/DECLARATIONS A. Employee of the Month for January Maurice Santos Maurice Santos was recognized as Employee of the Month for January. 4. COMMENTS FROM THE PUBLIC James Deal, Lynnwood, provided handouts at places, made a part of the packet and spoke in opposition of Smart Meters. 5. CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of November 20, 2018, the Regular Meeting of December 4, 2018, the Special Meeting of December 11, 2018, the Regular Meeting of December 18, 2018, and the Special Meeting of December 28, 2018 B. Bid Awards, Professional Services Contracts and Amendments Public Works Contract Award Recommendations Over $25,000: Request for Proposal No. Doc with A & R Solar Formal Bid Award Recommendations $60,000 and Over: None Professional Services Contract Award Recommendations $200,000 and Over: None Miscellaneous Contract Award Recommendations $200,000 and Over: None Cooperative Purchase Recommendations: Contracts: None Amendments: Contract No. CW with En Pointe Technologies Sole Source Purchase Recommendations: 52/129

53 Regular Meeting 4 January 8, 2019 None Emergency Declarations, Purchases and Public Works Contracts: None Purchases Involving Special Facilities or Market Condition Recommendations: None Formal Bid and Contract Amendments: Public Works Contract No. CW with Pellco Construction, Inc. Public Works Contract No. CW with Stanley Roofing Company, Inc Miscellaneous Contract No with Acxiom Corporation Contract Acceptance Recommendations: None C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers An amended page 1 for the Regular Meeting Minutes of December 18, 2018, was provided at places, by reference made a part of the packet. A motion unanimously passed approving Agenda Items 5A Approval of Minutes for the Regular Meeting of November 20, 2018, the Regular Meeting of December 4, 2018, the Special Meeting of December 11, 2018, the Regular Meeting of December 18, 2018, as amended, and the Special Meeting of December 28, 2018; 5B Bid Awards, Professional Services Contracts and Amendments; 5C - Certification/Ratification and Approval of District Checks and Vouchers. 6. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consideration of a Resolution Declaring a Portion of the Arlington Microgrid Project to be Special Facilities for Purposes of RCW A motion unanimously passed approving Resolution No declaring a portion of the Arlington Microgrid Project to be Special Facilities for purposes of RCW B. Consideration of a Resolution Authorizing the Assistant General Manager, Distribution and Engineering Services, of Public Utility District No. l of Snohomish County to Execute a Master License Agreement with King County Establishing Terms and Conditions Regarding the Licensing of Wireless Communication Facilities on District Property Project Manager Maureen Moe Nave and David Mendel, King County Director of Emergency Radio Communications Division, clarified the details of the agreement. A motion unanimously passed approving Resolution No authorizing the Assistant General Manager, Distribution and Engineering Services, of Public Utility District No. l of Snohomish County to execute a Master License Agreement with King County establishing terms and conditions regarding the licensing of wireless communication facilities on District property. 53/129

54 Regular Meeting 5 January 8, COMMISSION BUSINESS A. Commission Reports There were no Commission reports. B. Discussion of Organization or Committee Representatives for 2019 Representative for 2019 were proposed as follows: American Public Power Association Delegate: Sidney (Sid) Logan (APPA) & Legislative Resolutions Alternate No. 1 Tanya (Toni) Olson Committee Energy Northwest (ENW) Delegate: Sidney (Sid) Logan Alternate No. 1 Rebecca Wolfe Northwest Public Power Association Delegate: Rebecca Wolfe (NWPPA) Alternate No. 1 Tanya (Toni) Olson A motion unanimously passed adopting representatives to organizations and committees for 2019, as proposed. 8. GOVERNANCE PLANNING A. Governance Planning Calendar There were no changes to the Governance Planning Calendar. Clerk of the Board Melissa Collins noted that some items would be removed from the Governance Calendar, to be scheduled as future workshops. Ms. Collins also noted there was a Board Retreat tentatively scheduled for January 30, Government & External Affairs Director Jessica Matlock responded to Commissioner Logan s inquiry on when Community Choice Aggregation would be scheduled. General Manager John Haarlow noted that information on the Sunset Falls property would be brought back to the Board at a future meeting, along with staff s recommendation. 54/129

55 Regular Meeting 6 January 8, 2019 ADJOURNMENT There being no further business or discussion to come before the Board, the Regular Meeting of January 8, 2019, adjourned at 2:23 p.m. An audio file of the meeting is on file in the Commission Office and available for review. Approved this 22 nd day of January Secretary President Vice President 55/129

56 BUSINESS OF THE COMMISSION Meeting Date: January 22, 2019 Agenda Item: 3B TITLE CEO/General Manager's Report of Public Works Contract Award Recommendations; Formal Bid Award Recommendations; Professional Services Contract Award Recommendations; Miscellaneous Contract Award Recommendations; Cooperative Purchase Recommendations; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations SUBMITTED FOR: Consent Agenda Contracts/Purchasing Clark Langstraat 5539 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description, GP-3(4) non-delegable, statutorily assigned Board duty Contracts and Purchasing. The CEO/General Manager's Report of Public Works Contract Award Recommendations Over $25,000; 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; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations contains the following sections: Public Works Contract Award Recommendations Over $25,000 (Page 1); Request for Proposal No. Doc with Kemp West, Inc. 56/129

57 Formal Bid Award Recommendations $60,000 and Over (Page 2); Request for Quotation No. Doc with General Pacific, Inc., proposing GE- Alstom Grid Solutions Professional Services Contract Award Recommendations $200,000 and Over (Page 3); Professional Services Contract No. CW with Goldfarb & Huck, Roth Riojas, PLLC Miscellaneous Contract Award Recommendations $200,000 and Over; None Cooperative Purchase Recommendations; Contracts: None Amendments: None Sole Source Purchase Recommendations; None Emergency Declarations, Purchases and Public Works Contracts; None Purchases Involving Special Facilities or Market Condition Recommendations; None Formal Bid and Contract Amendments (Page 4); Professional Services Contract No with Golfarb & Huck Roth Riojas, PLLC Contract Acceptance Recommendations; None List Attachments: January 22, 2019 Report 57/129 Page 2

58 Public Works Contract Award Recommendation(s) Over $25,000 January 22, 2019 RFP No. Doc East Marysville Circuit 12-2 Transmission and Distribution Line Clearance No. of Bids Solicited: 7 No. of Bids Received: 3 Project Leader & Phone No.: Josh Perez X5056 Estimate: $275, This contract work consists of providing all labor, materials and equipment necessary to trim, cut, treat, remove, clear, and dispose of trees and brush, as well as perform application of herbicides under and along approximately 24.8 pole miles of the District s Transmission and Distribution System. The location of the work to be performed commences at the East Marysville Substation and heads north along the City of Marysville s Bayview Trail, then east along 84th Street NE in the vicinity of Marysville, Snohomish County, Washington. Contractor Subtotal (tax n/a) Award To Kemp West, Inc. $270, Davey Tree Surgery Company $291, Asplundh Tree Expert, LLC $319, Summary Statement: Staff recommends award to Kemp West, Inc. the low evaluated bidder, in the amount of $270, tax n/a. Page 1 58/129

59 Formal Bid Award Recommendation(s) $60,000 And Over January 22, 2019 RFQ No. Doc Twelve (12) Transformer Instrument Voltage EMVT s No. of Bids Solicited: 4 No. of Bids Received: 3 Project Leader & Phone No.: Sanjeev Farwaha x5502 Material Estimate: $100, These Transform Instrument Voltage EMVT s will be installed at Swamp Creek Switching Station. These EMVTs provide voltage sensing to line protection relays and are used for 115kV line connections to the switching station ring bus. Vendor Subtotal (w/o tax) Award To: General Pacific Incorporated proposing GE-Alstom Grid Solutions $79, Anixter, Incorporated proposing GE-Alstom Grid Solutions $81, Summit Sales Incorporated, representing ABB, Incorporated $94, Page 2 59/129

60 Professional Services Contract Award Recommendation(s) $200,000 And Over January 22, 2019 PSC No. CW Tort Litigation No. of Bids Solicited: Competitive Waiver No. of Bids Received: N/A Project Leader & Phone No.: Paul McMurray, x8639 Contract Term: 1/2/19 12/31/21 Description: Counsel will represent and advise the DISTRICT in various legal matters and issues. The areas of legal services Counsel will provide, but not limited to, are litigation defense and prosecution, contracts, employee and business legal issues. Consultant Not-to-Exceed Amount (tax n/a) Award To Goldfarb & Huck, Roth Riojas, PLLC $350, Summary Statement: Staff recommends award to Goldfarb & Huck Roth Riojas, PLLC in the amount of $350, to allow Counsel to continue to advise and represent the District with various ongoing litigation matters. Page 3 60/129

61 Formal Bid and Contract Amendment(s) January 22, 2019 PSC No Legal Advice and Litigation Representation Contractor/Consultant/Supplier: Golfarb & Huck Roth Riojas, PLLC Project Leader & Phone No.: Paul McMurray x8639 Amendment No.: 9 Amendment: $200, Original Contract Amount: $ 50, Present Contract Amount: $550, Original Start/End: 7/8/13 12/31/14 Amendment Amount: $200, Present Start/End: 1/1/2018 1/31/19 New Contract Amount: $750, New End Date: N/A Summary Statement: Staff recommends approval of Amendment No. 9 to increase the contract value by $200,000.00, so that Goldfarb & Huck Roth Riojas, PLLC may continue to represent and advise the District with ongoing employment and tort litigations. Upcoming expenses are: deposition costs; different expert fees & Counsel fees. Summary of Amendments: Amendment No. 1 dated December 12, 2014, extended term to December 31, Amendment No. 2 dated December 18, 2015, extended term to December 31, Amendment No. 3 dated February 16, 2016, increased contract value by $50, Amendment No. 4 dated June 9, 2016, increased contract value by $50, Amendment No. 5 dated February 13, 2018, increased contract value by $300, Amendment No. 6 dated November 6, 2017, extended term to December 31, Amendment No. 7 dated July 7, 2018, Change firm name to Goldfarb & Huck Roth Riojas, PLLC. Amendment No. 8 approved by the Commission December 18, 2018, increased the contract value by $100, and extended the term to January 31, 2019, so that Goldfarb & Huck Roth Riojas, PLLC may continue to represent and advise the District with ongoing employment and tort litigations Page 4 61/129

62 BUSINESS OF THE COMMISSION Meeting Date: January 22, 2019 Agenda Item: 3C TITLE: Consideration of Certification/Ratification and Approval of District Checks and Vouchers SUBMITTED FOR: Consent Agenda General Accounting &Financial Systems Julia Anderson 8027 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4)(B)(2)a non-delegable, statutorily assigned Board duty to approve vouchers for all warrants issued. The attached District checks and vouchers are submitted for the Board's certification, ratification and approval. List Attachments: Voucher Listing 62/129

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64 Detailed Disbursement Report Workers' Compensation Payment Date Payment Ref Nbr Payee Amount 1/2/ SOUND VOCATIONAL SERVICES INC $1, /9/ SSMC CASE MANAGEMENT $ Total: $2, /129 Page: 2/34

65 Detailed Disbursement Report Workers' Compensation - Time Loss Payment Date Payment Ref Nbr Payee Amount 12/31/ SAMANTHA LEE $ /31/ HENRY M SCHULLER $2, /31/ LAREN J MONSON $1, /31/ AUSTIN T GRANT $1, /31/ SUELLEN M CLARK $1, /31/ WILLIAM S ALINEN $1, /31/ RONALD E CHRISTOPHER $1, /31/ LINDA K BUNNEY $ /31/ LISA A MURR $1, /31/ LUCIEN M MASTERS $1, /31/ BARRY V CHRISMAN $3, /31/ MICHELLE L TORRENCE $3, /31/ ALAN G BURKE $6, Total: $27, /129 Page: 3/34

66 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 1/2/ SHIRLEY SHELTON $1, /2/ KRISTALL DRIGGER $ /2/ ZACHARY DUNCAN $ /2/ YUE YIN $ /2/ SRIKANTH VORUGANTI $ /2/ EDMONDS MEDICAL CENTER $ /2/ AMERI-CADD INC $ /2/ RYAN SAVILLE $ /2/ RAYMOND WEBER $5.06 1/2/ GRETA KAAS-LENT $7.46 1/2/ ARISA THAWEESKULCHAI $ /2/ ANUP TRIVEDI $ /2/ KANTHINY NADARAJAH $ /2/ PROJECT PRIDE $3, /2/ ANTONIO INDELICATO $ /2/ DAVID EMMEL $ /2/ GORDON REYKDAL $ /2/ GRAN INC $ /2/ RITHESH ALORA $ /2/ MIDAS MULLIGAN LLC $ /2/ ASHLEY LOVETT $ /2/ ESTATE OF ELIZABETH J NICKERSON $ /2/ ERIC BAKER $ /2/ BEAGLE ASSOCIATES $ /2/ HOWARD TUCKER $ /2/ KELP CONSTRUCTION, INC. $8.05 1/2/ MARK KREUTZ $ /2/ ALLYSON NELSON $ /2/ GEMMA KIRKMAN $ /2/ EDGE PEST CONTROL SEATTLE NORTH LLC $ /2/ CARLTON TOLLIVER $ /3/ JEFF WHETZEL $ /129 Page: 4/34

67 Detailed Disbursement Report Revolving Fund - Customer Refunds, Incentives and Other Payment Date Payment Ref Nbr Payee Amount 1/3/ TAMARON RANCH $ /3/ MIRANDA FREDERICKSEN $ /3/ LANI LANDIS $ /3/ JONATHAN PHILLIPS $ /3/ R SMITH $ /3/ SHELLAH IMPERIO $ /3/ ROBYN MORIN $ /3/ JOSUE VILLEDA MENCIA $ /3/ SARAH HEINZL $ /3/ EUNICE VALLEJO $ /3/ JUDY LILLIE $ /3/ NANI SKRINSKI $ /3/ UNDERWOOD GARTLAND JOHNSON 63 LLC $9, /3/ ROBERT TURNER $ /3/ EDWARD BOS $ /3/ AMY DERKSEN $ /3/ KRISTINE ROSETTI $ /3/ VINTAGE AT EVERETT $ /3/ PO LLC $ /3/ RAJAN BUDHATHOKI $ /3/ DAVID HOFFMAN $ /3/ RAYMOND WEBER $ /3/ ALYSSA BROWN $ /3/ JOSEPHINE NJUGUNA $ /3/ YWCA REGIONAL CENTER $ /3/ YWCA REGIONAL CENTER $ /3/ DENISE VIDAILLET $ /3/ KAFFEEHAUS LLC $ /3/ BAILY ENTRIKIN $ /3/ VRATI VIKRANT $ /3/ CHONGWEN CONG $ /3/ YUANMING ZHANG $ /129 Page: 5/34