SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT Regular Meeting December 19, 2017 The Regular Meeting was convened by Vice President Kathleen Vaughn at 9:00 a.m. in the Commission Meeting Room. Those attending were Tanya Olson, President (telephonically); Sidney Logan, Secretary; 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; and Deputy Clerks of the Board Jenny Rich and Lela Wall. * Items Taken Out of Order **Non-Agenda Items Changes to the agenda were as follows: Add an Executive Session at the end of the Briefing and Study Session to discuss the Legal Risks of a Current or Proposed Action. 1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media. Communications and Marketing Director Julee Cunningham reported on District related articles and shared a Live Wire video segment that focused on the District's 2017 accomplishments. A discussion amongst CEO/General Manager Craig Collar, Ms. Cunningham, and the Board took place regarding District responses to Opinion Letters in the Everett Herald. 2. Other. There were no other updates. B. Customer Service Update Senior Manager Customer Experience Pam Baley and Manager Customer Service Derek Hermann discussed how safety, employee development, and assisting customers in need are ways to encourage great customer service. Mr. Hermann spoke about their Quality Program as a positive growth opportunity for employees. The feedback driven program has call and evaluation guidelines established with employee input. Calibration Sessions are used by the Quality Analysts, leads, and managers to keep call evaluations consistent with the established standard. Recognition and celebrating success were mentioned as important results achieved from the call evaluation feedback. Provided were call statistics, which showed a ten percent decrease in call volume attributed to the Quality Program's goal to provide first call resolution, Interactive Voice Response (IVR) Self Service improvements, and monthly meter reading.
Regular Meeting 2 December 19, 2017 The Customer Service department assists customers in need by helping customers utilize monetary assistance programs. Customer Service Representatives (CSRs) process Low-Income Discount Program applications and serve customers at the Snohomish County Energy Assistance office. Improvement to the debt collection process were reviewed and Ms. Baley listed the department goals related to the each of the District's Strategic Priorities. Peer-to-peer recognition was mentioned as a way to encourage great performance. Commissioner Olson asked what the employee turn, in terms of external hiring, was on an annual basis and the timeframe to get a new employee on board. Ms. Baley said she would need to get the turn information, but was able to respond that the recruitment to training period is about two to four months. In response to a question from Commissioner Logan, the typical call experience was described and the types of calls received were mentioned. The meeting recessed at 9:58 a.m. and reconvened at 10:06 a.m. C. North County System Improvement Project Government and External Affairs Director Jessica Matlock provided a brief history of the system improvement project, now consolidated under one comprehensive approach. Designed to address reliability issues, the improvement project includes replacing the North Stanwood Substation, upgrade and install additional transmission lines to Camano Island, upgrade the Stimson Crossing Substation, and upgrade the Camano Substation. Additional team members spoke about the analysis and planning that was done for the transmission and distribution systems and provided the transmission and substation estimated dates of completion. The District's Vegetation Management Line Clearance Program was discussed and mentioned was the creation of a sustainable public process for public comment, permitting, public notice, construction, and tree trimming. Next steps include meeting with the City of Stanwood to provide a project update and benefits overview; determine the best option for the Twin City Substation location. Once determined, develop site plan, begin distribution design, and conduct route study of Transmission line; and begin planning Camano Substation upgrades and second transmission line. Start Distribution planning and continue easement work. D. District Cash and Reserves Assistant General Manager Finance & Treasurer Glenn McPherson provided the first in-depth review of the District's Reserve Policy, since adoption in 2007, as part of staff's Strategic Priorities objectives for the year.
Regular Meeting 3 December 19, 2017 The main reasons for maintaining cash reserves is being able to mitigate financial risks. The District's current reserve policy under Resolution No. 5319 was reviewed, and it was noted that policy deficiencies included not addressing or providing guidance for all of the District's cash reserves. The District's risk profile has changed, resulting in a need to update the policy. Banking and Fiscal Coordinator Angela Johnston detailed the cash accounts for the Electric System, most of which were not addressed by the reserve policy resolution. Provided were the cash account details for the Water System and the Generation System, neither of which were specifically addressed in the prior resolution. Staff recommendations included being more conservative for the Operating Reserve; transferring funds from overages and from separate reserves, no longer considered necessary to Operating Reserves; and periodically reviewing reserve funds to allow for staff to make recommendations to the Board, when needed, regarding restoration strategies. Mr. McPherson mentioned that large and stable cash reserves contribute to a higher bond rating. The District's decrease in amount of days of cash on hand is not considered favorable, but staff believes current levels are in excess of the District's risk based needs. The cash reserve levels will remain the same; however, reserves will be moved to different categories, which could potentially be used over a number of years, which is prudent, given the District's risk profile. Next steps include following up on suggestions from the Board and prepare a resolution in the first quarter to capture the presented recommendations. Commissioner Olson requested that there be an analysis and report back to the Board every five years captured in the resolution. The Board concurred. **EXECUTIVE SESSION Due to time constraints, the added Executive Session was moved to the end of the afternoon session. The meeting recessed at 12: 12 p.m. RECONVENE REGULAR MEETING The Regular Meeting was reconvened by Vice President Kathleen Vaughn at 1:30 p.m. in the Commission Meeting Room. Those attending were Tanya Olson, President (telephonically); Sidney Logan, Secretary; 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; and Deputy Clerks of the Board Jenny Rich and Lela Wall.
Regular Meeting 4 December 19, 2017 * Items Taken Out of Order **Non-Agenda Items Changes to the agenda were made as follows: Add the Executive Session from the morning session to the end of the Regular Meeting. 2. COMMENTS FROM THE PUBLIC There were no comments from the public. 3. CONSENT AGENDA A. Bid Awards, Professional Services Contracts and Amendments Public Works Contract Award Recommendations Over $25,000: Formal Bid Award Recommendations $60,000 and Over: Request for Quotation No. 10209 with Signature Systems Group LLC Request for Quotation No. Docl 153654981 with Cenveo Corporation Professional Services Contract Award Recommendations $200,000 and Over: Professional Services Contract No. CW2231345 with Burns & McDonnell Engineering Company, Inc. Miscellaneous Contract Award Recommendations $200,000 and Over: Miscellaneous Contract No. CW2232311 with Pattern Recognition Technologies, Inc. Cooperative Purchase Recommendations: Contracts: Purchase Order Number 4500030825 with Altec Industries, Inc. Purchase Order Number 4500031165 with RWC International, Ltd. 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: Public Works Contract No. CW2228687 with Burke Electric, LLC Professional Services Contract No. CW2223450 with Advantage Staffing Group, LLC Miscellaneous Contract No. CW2229346 with Sampsa M. Wright, dba Sam's Tree Care
Regular Meeting 5 December 19, 2017 Contract Acceptance Recommendations: Public Works Contract No. CW2230397 with PumpTech, Inc. B. Consideration of Certification/Ratification and Approval of District Checks and Vouchers C. Consideration of a Resolution Approving Amendment No. 1 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 D. Consideration to Prequalify Contractors as Bidders for Electrical Line Work for the District During 2018 An amended page 6 of the Bid Report Cooperative Purchase Recommendations was provided at places, by reference made a part of the packet. A motion unanimously passed approving Agenda Item 3A - Bid Awards, Professional Services Contracts and Amendments, as amended; 3B - Certification/Ratification and Approval of District Checks and Vouchers; 3C-Approval of Resolution No. 5832 Approving Amendment No. 1 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; and 3D - Consideration to Prequalify Contractors as Bidders for Electrical Line Work for the District During 2018. 4. PUBLIC HEARING AND ACTION A. Disposal of Surplus Property - 1st Quarter 2018 Based on staff's recommendation that the items are no longer necessary or useful to the District, a motion unanimously passed approving those items listed on Exhibits A and B of the Surplus Property Recommendations Report be declared surplus and sold for high bid or disposed of according to policy in the first quarter of 2018. B. Consideration of a Resolution Adopting the 2018 Budget for Public Utility District No. 1 of Snohomish County, Washington A motion unanimously passed approving Resolution No. 5833 adopting the 2018 Budget for the Public Utility District No. 1 of Snohomish County, Washington.
Regular Meeting 6 December 19, 2017 C. Consideration of a Resolution Adopting Two-Year Conservation Targets for 2018-2019 and a Ten-Year Conservation Potential Estimate for the District to Comply with Requirements of the Energy Independence Act A motion unanimously passed approving Resolution No. 5834 adopting two-year conservation targets for 2018-2019 and a ten-year conservation potential estimate for the District to comply with requirements of the Energy Independence Act. D. Consideration of a Resolution Ordering, Approving, Ratifying, and Confirming the Construction and Installation of the Plan or System of Additions to the District's Water Utility, as Adopted on November 21, 2017, and Applicable to the Local Utility District Hereinafter Described, Forming Local Utility District No. 60 of Snohomish County, Washington, and Confirming the Final Assessment Roll A motion unanimously passed approving Resolution No. 5835 ordering, approving, ratifying, and confirming the construction and installation of the plan or system of additions to the District's Water Utility, as adopted on November 21, 2017, and applicable to the Local Utility District hereinafter described, forming Local Utility District No. 60 of Snohomish County, Washington, and confirming the final assessment roll. 5. COMMISSION BUSINESS A. Commission Reports Commissioner Logan and Commissioner Vaughn reported on their attendance at the American Public Power (APP A) Forward Summit in San Francisco, California. Mr. Logan spoke at the Marysville Rotary Club and attended the Public Power Council (PPC) Annual Meeting in Portland, Oregon. Ms. Vaughn reported on recent Energy Northwest (ENW) meetings. 6. GOVERNANCE PLANNING A. Adoption of the 2018 Governance Planning Calendar A motion unanimously passed adopting the 2018 Governance Planning Calendar.
Regular Meeting 7 December 19, 2017 *EXECUTIVE SESSION The Regular Meeting recessed at 1 :50 p.m., and reconvened into Executive Session at 1:56 p.m. to discuss the legal risks of a current or proposed action, under the terms set forth in the Open Public Meetings Act. It was anticipated the Executive Session would last approximately 20 minutes, with no public announcements. Those in attendance were Commissioners Tanya Olson (telephonically), Kathleen Vaughn, and Sidney Logan; CEO/General Manager Craig Collar; General Counsel Anne Spangler; Assistant General Managers Tom DeBoer and Glenn McPherson; and other District staff. At 2:16 p.m., the Executive Session was extended 25 minutes. The Commission immediately adjourned the Regular Meeting upon conclusion of the Executive Session. ADJOURNMENT There being no further business or discussion to come before the Board, the Regular Meeting of December 19, 2017, adjourned at 2:39 p.m. An audio file of the meeting is on file in the Commission Office and available for review. Approved this 6th day of March 2018. (absent) Secretary