SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT

Transcription

1 SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT Regular Meeting March 6, 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; CEO/General Manager Craig Collar; General Counsel Anne Spangler; 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 Clerk of the Board Lela Wall. Tanya Olson, Secretary was absent. * Items Taken Out of Order **Non-Agenda Items 1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media. Communications and Marketing Director Julee Cunningham shared District related articles and showed three District video advertisements featuring conservation incentive promotions. 2. Community Engagement. Local Government and External Affairs Associate Brenda White provided an update regarding community activities and local government agenda items of interest to the District. 3. Legislative. State Government and External Affairs Associate Clark Mclsaac (telephonically) provided an update on the State Legislative session and discussed high priority bills. *4. Other. Assistant General Manager Generation, Power, Rates, and Transmission Management Tom DeBoer spoke about the District's conditional contract termination with Peak Reliability. B. FCRPS (Federal Columbia River Power System) Spill Update Assistant General Counsel Jeff Kallstrom provided information on the impacts of recent court mandated spill requirements for the Federal Columbia River Power System (FCRPS), specifically the four lower Snake River and four lower Columbia River Dams. The expected outcome for the District was reduced electric generation at the District's eight projects. Less energy would be received from Slice product and lower secondary revenues would be received from Block product. In addition, for the Bonneville Power Administration (BP A) to recover the costs that were a result of the reduced generation, a Spill Surcharge will be added to the District's bill, which would cause an estimated impact of $1-2 million.

2 Regular Meeting 2 March 6, 2018 Mr. Kallstrom said that the spill decision has been appealed. The federal agencies appealed to the Ninth Circuit Court of Appeals. Assuming the Ninth Circuit does not overturn, a decision should be reached shortly after the oral arguments scheduled for March 20, Dam removal was mentioned as an alternative that will be examined in the environmental impact statement. Mr. Kallstrom said that the District provided comments to state that, if Dam removal was studied by the National Environmental Policy Act (NEPA), the District would want a full and complete comprehensive study. Next Steps included federal agencies appealed spill injunction to the Ninth Circuit Court of Appeals, with oral argument scheduled for March 20, 2018, and the Ninth Circuit decision expected in April. District staff will participate in BPA's Spill Surcharge process, monitor the Biological Opinion and the National Environmental Policy Act (NEPA) processes, and actively participate in regional fish and wildlife processes. The meeting recessed at 10: IO a.m. and reconvened at 10: 17 a.m. C. Hancock and Calligan Creeks Completion Update Manager Generation Engineering Scott Spahr summarized, from progress steps to operation, the completion of the Hancock and Calligan Creeks projects. The estimated total project costs were $25.7 million for Calligan Creek and $30.8 million for Hancock Creek, escalated to 2018, not including Allowance for Funds Used During Construction (AFUDC). Commercial operation began February 16, 2018, and a ribbon cutting is scheduled for May 31, D. Cost Management Savings 2017 Budget and Financial Planning Manager Sarah Bond presented the 2017 results for Cost Management Savings, a program that represents being a good steward of the District's funds and falls under the Strategic Priority of Responsible Cost & Fiscal Management. Ms. Bond shared examples collected from soliciting ways that District employees and departments pursued cost management opportunities. A Cost Management Dashboard will be maintained using the estimated savings, with future years being a reflection of the items believed to have permanent savings. An award called the Golden Piggy Bank was established this year to recognize achievements in savings and/or efficiencies and examples of good stewardship with the District's funds. The presentation concluded with mention of the first award recipients. The Regular Meeting recessed at 11: 10 a.m.

3 Regular Meeting 3 March 6, 2018 RECONVENE REGULAR MEETING The Regular Meeting was reconvened by President Kathleen Vaughn at 1:30 p.m. in the Commission Meeting Room. Those attending were Sidney Logan, Vice President; CEO/General Manager Craig Collar; General Counsel Anne Spangler; 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 Clerk of the Board Lela Wall. Tanya Olson, Secretary was absent. * Items Taken Out of Order **Non-Agenda Items 2. RECOGNITION/DECLARATIONS A. Employee of the Month for March - Chelsea Holte Chelsea Holte was recognized as Employee of the Month for March. 3. COMMENTS FROM THE PUBLIC Lora Cox, Gold Bar, provided a letter at places, by reference made a part of the packet regarding the Tulalip Tribes withdrawing from settlement negotiations for the Sunset Falls Hydro project. Ms. Cox requested a status update on the Integrated Resource Plan (IRP) process. CEO/General Manager Craig Collar explained that the IRP was scheduled to be presented to the Board at the March 27, 2018, Commission meeting. Commissioner Vaughn requested a presentation on Sunset Falls at the April 10, 2018, Commission meeting. Commissioner Logan concurred. 4. CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of December 19, 2017 B. Bid Awards, Professional Services Contracts and Amendments Public Works Contract Award Recommendations Over $25,000: Request for Proposal No. Doc with Interwest Construction, Inc. Formal Bid Award Recommendations $60,000 and Over: Request for Quotation No LED Luminaire 50W NOM Type II 3000K with Leotek Electronics USA, LLC Professional Services Contract Award Recommendations $200,000 and Over: Miscellaneous Contract Award Recommendations $200,000 and Over:

4 Regular Meeting 4 March 6, 2018 Cooperative Purchase Recommendations: Contracts: Purchase Order No 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 Contract No with Origami Risk, LLC Contract Acceptance Recommendations: C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers A motion passed approving Agenda Item 4A -Approval of Minutes for the Regular Meeting of December 19, 2017; 4B - Bid Awards, Professional Services Contracts and Amendments; and 4C - Certification/Ratification and Approval of District Checks and Vouchers. 5. PUBLIC HEARING AND ACTION A. Disposal of Surplus Property-1 st Quarter 2018 Supplement President Vaughn opened the public hearing. There being no questions or comments from the public, the public hearing was closed. Based on staff's recommendation that the items are no longer necessary or useful to the District, a motion passed approving those items listed on the Exhibit A Supplement of the Surplus Property Recommendation Report be declared surplus and be sold for high bid or disposed of according to policy in the first quarter of B. Consideration of a Resolution Amending the District's Water Utility Wholesale Rates for the City of Arlington and the City of Granite Falls President Vaughn opened the public hearing. There being no further questions or comments, the public hearing was closed. A motion passed approving Resolution No amending the District's Water Utility Wholesale Rates for the City of Arlington and the City of Granite Falls.

5 Regular Meeting 5 March 6, COMMISSION BUSINESS A. Commission Reports Commissioner Logan and Commissioner Vaughn attended the American Public Power Association (APPA) Legislative Rally in Washington D.C. Commissioner Vaughn reported on a recent Energy Northwest (ENW) meeting and attendance at a workshop on strengthening ENW' s financial health. B. Consideration of a Resolution Approving a Salary Adjustment for the CEO/General Manager, Effective March 16, 2018 A motion passed approving Resolution No approving a salary adjustment for the CEO/General Manager, effective March 16, GOVERNANCE PLANNING A. Governance Planning Calendar Commissioner Logan requested an update on the District's Anti-Discrimination and Harassment programs. Commissioner Vaughn concurred. ADJOURNMENT There being no further business or discussion to come before the Board, the Regular Meeting of March 6, 2018, adjourned at 2:05 p.m. An audio file of the meeting is on file in the Commission Office and available for review. Approved this 8 th day of May Secretary (ahaent)