SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT Regular Meeting October 16, 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 John Haarlow; General Counsel Anne Spangler; Assistant General Managers Tom DeBoer, Glenn McPherson, Teresa D' Alessio (Interim), 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. Secretary Tanya Olson was absent. * 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 mentioned a KING 5 news clip, featuring the Microgrid. Commissioner Vaughn requested the clip be shown at the next Commission meeting. 2. Community Engagement. Local Government and External Affairs Associate Brenda White advised the Board that the District was a Silver Sponsor for the Washington Solar Summit and will host an information table at the event. Ms. White provided a handout, at places, by reference made a part of the packet, with information on Key PUD investments in North Snohomish County, and spoke about an upcoming presentation being presented at the Stanwood-Camano Chamber of Commerce. 3. Other. Assistant General Manager Generation Power Rates & Transmission Management Tom DeBoer updated the Board on a ruptured gas pipeline located in British Columbia, Canada. Short-Term Power Trader Mike Shapley explained the effects of the rupture on the natural gas market. B. Energy Risk Management Report 3 rd Quarter 2018 Senior Manager Rates, Economics, and Energy Risk Management Brian Booth provided an overview of the 3 rd quarter of 2018. Supply came in less than expected, due to a warm dry summer and Demand was almost on target. Forecast Demand tracked higher than last year. Market prices increased, in part due to gas restraints in California. Forward prices have seen an upward trend, but remained stable on a historical basis. The Credit Limit Analysis, Financial Load Resource Imbalance Test, and Price Volatility Test had no violations this quarter. When the Credit Limit Analysis results were mentioned, Commissioner Logan asked if the peak of the credit would look much different and whether
Regular Meeting 2 October 16, 2018 that is something that should be looked at quarterly. Mr. Booth responded that he did not think it would look significantly different this quarter, but it can be looked at. C. H2O Supply Update Short-Term Power Trader Mike Shapley provided a presentation on Water Year 2019 (WY' 19), October 2018 through September 2019, which highlighted the WY' 19 early forecast update and summary, Henry M. Jackson Hydroelectric Project and Slice generation, short-term price forecast, and load resource balance. The forecast was for dryer than average soil conditions, and below average basin-wide reservoir content and water supply. Below average hydro generation was expected and planned for October through January, due to a wait for inflows and some maintenance to the generation sources. Mentioned were concerns about California's decreased generation. Weak El Nifio conditions were probable for the winter, which could bring uncertainty for the 2019 spring and summer water supply. D. Washington Paid Family Medical Leave Recommendation Interim Employee Resources Director Sharon Reijonen provided the recommended schedule and premium information for the upcoming Washington Paid Family Medical Leave (WPFML) insurance program, enacted by the State Legislature. Next steps included continuing education and discussions about the possibility of future voluntary program(s), evaluation of how current District programs coordinate and compare with W APFML, and collective bargaining agreement (CBA) negotiations for an April 1, 2020, contract. A resolution will be brought for Board consideration November 6, 2018, followed by payroll/accounting/it implementations, a communication plan for District employees and the implementation of payroll and stat reporting requirements beginning January 1, 2019. E. North County 230 kv Addition Senior Manager Planning, Engineering and Technical Services Jason Zyskowski presented a recommendation to expand the North County area transmission system, with the purchase of 58 Acres (2 Parcels) in Arlington, for the future North County 230kV Addition. The presentation included property site information provided by Manager Real Estate Services Maureen Barnes. Revisions to the presentation were provided at places, by reference made a part of the packet. The total acquisition cost would be $1,082,800 for both parcels, to be purchased in the final quarter of 2018. A discussion ensued about the price of the property acquisition and inflation. Professional Engineer Jeff Colon advised the Board that these were preliminary designs and layouts of what the future site will cost.
Regular Meeting 3 October 16, 2018 Resolutions for Board consideration will be presented on November 6, 2018, to authorize purchase of the 2 Parcels for future use as a District 115kV switching station, 230/115 kv transmission substation, and other possible uses. The meeting recessed at 10:44 a.m. and reconvened at 10:55 a.m. F. Wireless Attachments on District Facilities Professional Engineer Anders Dahl introduced the presentation, designed to educate on the topic of 5G and other technologies that included the District's Fiber System, existing cellular technology, and small cells. The following staff provided further information: Project Manager Moe Nave explained the history of the District's Joint Use/pole attachments for wire line and wireless; Local Government and External Affairs Associate Brenda White provided a Local Overview; State Government and External Affairs Associate Clark Mclsaac mentioned associated state and federal regulations and legislative activity; and Government and External Affairs Director Jessica Matlock spoke of related bills currently going through Congress. A future Commission presentation will include the background of Joint Use rates, rate study and discussion of methodologies, current and historical rates, and proposed rate adjustments. The meeting recessed at 12:04 p.m. 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 John Haarlow; General Counsel Anne Spangler; Assistant General Managers Tom DeBoer, Glenn McPherson, Teresa D' Alessio (Interim), 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. Secretary Tanya Olson was absent. * Items Taken Out of Order **Non-Agenda Items 2. RECOGNITION/DECLARATIONS A. Consideration of a Resolution Authorizing the CEO/General Manager to Recognize the Weeks of November 11, 2018, Through November 30, 2018, for the Charitable Giving Campaign A motion passed approving Resolution No. 5872 authorizing the CEO/General Manager to recognize the weeks of November 11, 2018, though November 30, 2018, for the Charitable Giving Campaign.
Regular Meeting 4 October 16, 2018 3. COMMENTS FROM THE PUBLIC Steven Keeler, Edmonds, provided a handout at places, and made a part of the packet, a New York Times article on Climate Change and spoke about the article. Bruce King, Arlington, provided a handout at places, and made a part of the packet. Mr. King expressed concerns about the North County 230kV Addition, questioned information on the Wireless Attachments on District Facilities presentation, and commented regarding submissions from Public Comment. 4. 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. Docl438803759 with Anixter, Inc. Request for Quotation No. Docl451279759 with Anixter, Inc. 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 Contract No. 70049 with West Interactive Services Corp. dba Twenty First Century Communications, Inc. Contract Acceptance Recommendations:
Regular Meeting 5 October 16, 2018 B. Consideration of Certification/Ratification and Approval of District Checks and Vouchers A motion passed approving Agenda Item 4A - Bid Awards, Professional Services Contracts and Amendments; and 4B - Certification/Ratification and Approval of District Checks and Vouchers. 5. ITEMS FOR INDIVIDUAL CONSIDERATION A Consideration of a Resolution Authorizing the CEO/General Manager of Public Utility District No. 1 of Snohomish County to Execute an Interlocal Agreement with the City of Marysville Regarding the Relocation of Electrical Distribution Facilities Associated with the Construction of the City's First Street Bypass Project A motion passed approving Resolution No. 5873 authorizing the CEO/General Manager of Public District No. 1 of Snohomish County to execute an Interlocal Agreement with the City of Marysville regarding the relocation of electrical distribution facilities associated with the construction of the City's First Street Bypass Project. 6. COMMISSION BUSINESS A. Commission Reports Commissioner Logan took a tour of the Hancock Creek and Calligan Creek Hydroelectric Projects near North Bend, Washington; and attended a Snohomish County Leadership Breakfast. 7. GOVERNANCE PLANNING A. Governance Planning Calendar Commissioner Logan motioned to correct the motion from the October 1, 2018 (Commissioner Logan said 2019) meeting to continue the Public Hearing on the 2019 Proposed Budget to November 6, 2018 at 1:30 p.m., to include a public hearing at 6:30p.m. A motion passed to correct the motion from the October 1, 2018, meeting to continue the Public Hearing on the 2019 Proposed Budget to November 6, 2018 at 1:30 p.m., to include a public hearing at 6:30 p.m.
Regular Meeting 6 October 16, 2018 ADJOURNMENT There being no further business or discussion to come before the Board, the Regular Meeting of October 16, 2018, adjourned at 1:53 p.m. An audio file of the meeting is on file in the Commission Office and available for review. Approved this 18 th day of December 2018. Secretary (absent)