PUBLIC UTILITY DISTRICT NO. 1 OF BENTON COUNTY Date: December 13, 2016 Time : 9:00a.m. Place: 2721 West loth Avenue, Kennewick, Washington Attendees: Commissioners Sanders, Bush and HaJI General Manager Bartram Assistant General Manager Hunter Legal Counsel Hultgrenn Senior Director of Engineering and Power Management Dunn Director of Finance Meyer Director of Customer Programs and Services Ball Manager of Power Resources Johnson Manager of Human Resources Wenner Manager of Information Technology Folta Manager of Communications and Governmental Relations Miller Manager of Contracts and Purchasing Ochweri Supervisor of Risk Management & Treasury White Supervisor of Executive Administration Cole Supervisor of Accounting Zirker Financial Analyst Pryor Electrical Engineer Flores The Pledge of Allegiance was given. Treasurer's Report Supervisor of Risk Management & Treasury reviewed the November 2016 Treasurer's Report. The Commission accepted the November 2016 Treasurer's Report. The cash investment summary and counterparty and credit sector reports were distributed and briefly reviewed. Management Report General Manager: 1. The consent agenda includes a staff recommendation to cancel the December 27, 2016 commission meeting. Assistant General Manager: 1. An update was provided on the electrical system due to the upcoming extreme tern peratu res. Page I of9
2. Assistant General Manager and the Commission congratulated Electrical Engineer Flores on earning the designation of Professional Engineer. Manager of Communications and Governmental Relations: 1. An update was provided on a meeting held in Portland with federal agencies on dam issues. Various articles from the media were distributed. Senior Director of Engineering and Power Management: 1. An update was provided on the Electric Vehicle Infrastructure Transportation Alliance (EVITA). Other entities are expressing their interest in joining EVITA. EVITA received four responses to the request for information issued in October 2016. The next step is to issue a request for proposals in order to select a vendor to partner with on a Washington State Department of Transportation (WSDOT) grant application. The WSDOT grant program is expected to be kicked off in January 2017. Director of Customer Programs and Services/Manager of Communications: 1. Milestones and key dates for the NISC project were distributed and reviewed. Manager of Communications reviewed customer communications plans. 2. An update was provided on the Helping Hands donation promotion since it began at the end of November 2016. It was noted the promotion has already been very successful. 3. In follow-up to an earlier Commission request, staff has continued to work with Community Action Connections (CAC) to identify criteria in which the past due requirement can be waived when disbursing Helping Hands funds to customers. Staff presented a list of criteria developed jointly with CAC, and the Commission approved the recommended criteria, with a suggested addition. President Lori Sanders discussed the possibility of using Helping Hands funds to facilitate other types of assistance, such as a Habitat for Humanity housing event, and Director of Customer Programs and Services stated the Helping Hands RCW limits the use of donated funds. Staff will continue to look at other opportunities to assist those in need. 4. Director of Customer Programs and Services shared a draft letter to be sent to small irrigation customers informing them of the proposed rate changes. The timeline for customer comment and feedback to the Commission was also shared. Manager of Information Technology: 1. The Commission was updated on a Northwest Public Power Association (NWPPA) cyber security conference. General Manager stated he received great feedback about the Manager of Information Technology's knowledge and presentation at the conference. Consent Agenda Motion by Barry Bush, seconded by Jeff Hall to approve the Consent Agenda as follows: a) Approving the minutes of the regular commission meeting of November 29, 2016. b) Approving Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing made available to the Commission. As of this date, the Commission does approve the following for payment: Accounts Payable Electronic Fund Page 2 of9
Transfer (WIRE) payments 4003-4009 in the total amount of $6,655,184.97, Warrants (CHK) 70001-70017 70018-70042 in the total amount of $137,686.09, Automated Clearing House (DD) payments 1-25 in the total amount of $468,505.92; Residential Conservation Rebates: Credits on customer accounts in the total amount of $130.00; Payroll Direct Deposit 12/01/16 60162-60322 in the total amount of $328,414.25, for a grand total of $7,589,921.23. For November 2016 voided checks in the total amount of $146.57 were included in the report. c) Cancelling the District's regular commission meeting scheduled for 9:00 a.m. on December 27, 2016, and directing the General Manager to provide notification to the public of such cancellation. d) Authorizing the General Manager, on behalf of the District, to close Benton PUD's doors to the public on January 16, 2017, to allow for a staff day on safety and records management, and directing the General Manager to provide notification to the public of such closure. e) Adopting Resolution No. 2388, approving the 2017 Prequalification of Contractors. f) Authorizing the General Manager, on behalf of the District, to sign Change Order No. 3 of Contract No. 14-18-01 with Sensus Metering Systems, to extend the term of the contract to December 31, 2017, and increasing the not-to-exceed amount by $84,000, bringing the new not-to-exceed amount to $308,000. g) Authorizing the General Manager, on behalf of the District, to sign a three year contract with Sensus Metering Systems, Contract No. 17-18-01, to provide annual software maintenance and support services, along with monthly metering services, for a not-to-exceed amount of $298,800, with an expiration date of December 31, 2019. h) Authorizing the General Manager, on behalf of the District, to sign Change Order No. 2 of Contract No. 13-32-02 with Tyndale Company, to modify Appendix B, extending the term of the contract to December 31, 2017, and increasing the not-to-exceed amount by $52,220, bringing the new not-to-exceed amount to $148,670. i) Authorizing the General Manager, on behalf of the District, to sign Change Order No. 3 of Contract No. 13-38-02 with Ecolights Northwest, LLC, to extend the term of the contract to December 31,2017 and increasing the not-to-exceed amount by $10,000, bringing the new notto-exceed amount to $60,000. j) Authorizing the General Manager, on behalf of the District, to sign Change Order No. 5 of Contract No. 11-07, with Coleman Oil, extending the term to December 31, 2017 and increasing the not-to-exceed amount by $200,000, bringing the new not-to-exceed amount of the contract to $1,200,000. k) Awarding the Contract for Highlands Bay 3-15kV Metalclad Switchgear, Contract No. 16-24, to Powergrid Solutions, Inc. of Oshkosh, Wisconsin, for the total amount of $286,470, plus Washington State sales tax in accordance with RCW 54.04.080. I) Authorizing the General Manager, on behalf of the District, to sign Change Order No. 1 of Contract No. 16-13 with DJ's Electrical, Inc., increasing the not-to-exceed amount by $66,827, bringing the new not-to-exceed amount of the contract to $682,181, plus Washington State sales tax in accordance with RCW 54.04.080. m) Authorizing the General Manager, on behalf of the District, to sign Change Order No. 17 of Contract No. 06-51-11 with The Energy Authority, to establish the 2017 Consulting Task Order, substantially in the form presented, in a not-to-exceed amount of $118,000,-payable as $10,000/month with true-up at the end of the year. December 13, 2016 Page 3 of9
n) Authorizing the General Manager, on behalf of the District, to sign a three year contract with NAES Corporation, Contract No. 16-18-06, to provide North America Electric Reliability Corporation (NERC) Critical Infrastructure Protection (CIP) Compliance consulting, for a not-toexceed amount of $75,000, with an expiration date of December 31, 2019. o) Reviewing Jobs Report to Commission dated December 1, 2016. At 10:10 a.m., President Lori Sanders announced the commission meeting would recess for 10 minutes. At 10:20 a.m., President Lori Sanders announced the commission meeting would reconvene into regular open public session. Resolution No. 2389, Adopting the 2017 Budget Supervisor of Treasury and Risk Management recommended the Commission adopt a resolution approving the 2017 budget. The final 2017 budget includes an overall revenue action of 2.9% on September 1, 2017, for planning purposes only. This results in a $364,000 reduction in budgeted retail revenue from the Preliminary Budget. The budget assumption for a revenue action was lowered in conjunction with the reduction of Bonneville Power Administration's proposed power rate increase from 4.0% to 3.5%. Motion by Jeff Hall, seconded by Barry Bush adopting Resolution No. 2389 approving the 2017 budget. 2017 Affiliations List Supervisor of Treasury and Risk Management recommended the Commission adopt a resolution approving the 2017 Affiliations List. Motion by Barry. Bush, seconded by Jeff Hall approving memberships, estimated dues and fees associated with District affiliations as presented at the December 13, 2016 commission meeting for a one-year term from January 1, 2017 through December 31, 2017. Designation of Representatives to Various Organizations for 2017 Motion by Barry Bush, seconded by Jeff Hall that effective January 1, 2017 the Public Utility District No. 1 of Benton County shall be represented at the named organizations by the person(s) designated herein for the year 2017: American Public Power Association Representative: Lori Sanders Jeff Hall American Public Power Association Legislative & Resolutions Committee Representative: Lori Sanders Alternates: Jeff Hall/Karen Miller Page 4 of9
Benton City Economic Development Association Representative: Christie McAloon Lori Sanders Bonneville Power Administration SLICE Implementation Group Representative: Chris Johnson The Energy Authority (TEA) Central Washington Public Utilities {CWPU) Representative: Chad Bartram Steve Hunter Energy Northwest Full Board Representative: Lori Sanders Barry Bush Energy Northwest Nine Canyon Wind Project Purchaser's Committee Representative: Chris Johnson Rick o'unn Energy Northwest Packwood Purchaser's Committee Representative: Chris Johnson Rick Dunn Northwest Open Access Network Representative: Jeff Hall Chad Bartram Northwest Public Power Association, Inc. Representative: Barry Bush Lori Sanders Pacific Northwest Utilities Conference Committee {PNUCC} Representative: Chad Bartram Jeff Hall Participants Review Board 2017 (casting of votes) Representative: Barry Bush Jeff Hall (For the purpose of casting votes for the 2017 Participants Review Board elections) Prosser Chamber of Commerce Representative: Pat Sullivan Alternates: Jeff Hall/Christie McAloon Prosser Economic Development Association Representative: Jenny Sparks Alternates: Jeff Hall/Pat Sullivan Prosser Tower Site, Inc. Representative: Pat Sullivan Public Power Council {PPC) Representative: Chad Bartram Chris Johnson Page 5 of9
Public Utility Risk Management Services Representative: Lori Sanders Kevin White Tri-City Regional Chamber of Commerce Representative: Karen Miller Lori Sanders Visit Tri-Cities Board of Directors Representative: Karen Miller Washington Public Utility Districts Association (WPUDA) Representative: Jeff Hall Barry Bush Western Electricity Coordinating Council Representative: Rick Dunn Blake Scherer White Creek, LLC./White Creek Public, LLC. Representative: Chris Johnson Rick Dunn Motion by Barry Bush, seconded by Jeff Hall that effective January 1, 2017 the following named representative(s) of Benton PUD are authorized to act in the following capacity to the organizations listed for the year 2017: American Public Power Association Policy Makers Council Board Member: Jeff hall Benton County Emergency Services Executive Board Board Member: Steve Hunter John Schafer Central Washington Public Utilities Vice-Chair: Chad Bartram Central Washington Public Utilities- Unified Insurance Program Trustee: Melina Wenner Alternate Trustee: Jody George Energy Northwest Executive Board Board Member: Lori Sanders, Secretary Northwest Open Access Network Board Board Member: Rick Dunn Pacific Northwest Utilities Conference Committee (PNUCC) Board of Directors Board. Member: Chad Bartram Prosser Tower Site Board Member: Pat Sullivan Prosser Chamber of Commerce Board Member: Pat Sullivan December 13, 2016 Page6of9
Public Utilities Risk Management Services President: Lori Sanders Chairperson: Kevin White, Operations Committee Public Power Council Executive Committee Alternate Board Member: Chad Bartram Tri-City Regional Chamber of Commerce Board Member: Karen Miller TRIDEC Board of Directors Board Member: Chad Bartram Washington State University Power Systems Engineering Program Advisor Board Representative: Rick Dunn Election of Officers for 2017 Motion by Jeff Hall, seconded by Lori Sanders that effective January 1, 2017, Barry Bush be nominated and elected President of the Commission, Jeff Hall be nominated and elected Vice President of the Commission, and Lori Sanders be nominated and elected Secretary of the Commission. October 2016 Financial Statements Supervisor of Accounting reviewed the October 2016 financial statements. Pending Sale of Distribution Facilities Associated with Badger Mountain Irrigation District and Portion of Hidden Hills Subdivision to City of Richland Senior Director of Engineering and Power Management briefly discussed the terms and conditions of an Electrical Service Area and Facilities Purchase Agreement entered into in May of 2005 with the City of Richland. Senior Director stated that the transfer of distribution lines and facilities associated with serving the Badger Mountain Irrigation District and Hidden Hills distribution lines is being planned for February 1, 2017 and March 1, 2017 respectively. A public hearing on the surplus, sale and transfer of the District's assets is expected to occur at the January 10, 2017 commission meeting. District and Richland staff will be working together to communicate with affected customers. Draft inter-local Cooperation Agreement with the City of Richland for Sunset Road-to-Reata 115 kv Transmission Line Senior Director of Engineering and Power Management discussed planning efforts with the City of Richland Energy Services (RES) Division to jointly construct a substation and an opportunity to jointly develop a 115 kv transmission line. The District and RES are planning to hold a public meeting in January of 2017 to invite property owners located adjacent to the proposed 115 kv transmission line right-of-way to learn about the joint projects and provide any feedback. Page 7 of9
Resolution No. 2390, Adopting Revised Wholesale Customer Service Policy, Rates, Terms and Conditions of Service for Telecommunications, including a New Access Internet Service Offering and a Line Extension Promotional Credit As discussed in the prior Commission meeting, Senior Director of Engineering recommended the Commission adopt a resolution adding a new access internet service offering and a pilot program for a limited time promotional line extension credit. The pilot program has been identified as a tool to meet the needs of the District's broadband customers, assist the District in identifying how the market responds to market promotions, and potentially can generate net positive cash flows over time. Senior Director reviewed metrics that can be utilized to provide for lessons learned from the pilot program. Motion by Jeff Hall, seconded by Barry Bush adopting Resolution No. 2390 approving the revised wholesale customer service policy, rates, terms and conditions of service for telecommunications, including a new access internet service offering and a pilot program offering a limited time promotional line extension credit. Other Business General Manager discussed his recent authority granted by the Commission to amend the lnterlocal Cooperative Agreement (EVITA) to include Energy Northwest, and stated that other entities are continuing to show interest. Motion by Jeff Hall, seconded by Barry Bush authorizing the General Manager, on behalf of the District, to periodically amend the lnterlocal Cooperative Agreement for Installation of Electric Vehicle Charging Stations (EVITA), Contract No. 16-21-23, to include other agencies as they are identified, contingent upon Commission approval if substantive changes to the Agreement are require.d. Future Planning Commissioners discussed the American Public Power Association (APPA) Legislative Rally in early 2017 and the legislative tour of the Northwest Public Power Association (NWPPA). Executive Session At 10:55 a.m., President Lori Sanders announced that the Commission would go into executive session with legal counsel for 25 minutes to discuss potential litigation. At 11:20 a.m., President Lori Sanders announced that the Commission would reconvene into regular open public session. Page 8 of9
Open Session Director of Customer Programs and Services reported on the status of the meter upgrade project. General Manager and Supervisor of Executive Administration reviewed a draft resolution on providing guidelines for public participation at commission meetings. The final draft will be brought for commission consideration in January 2017. The Commission held a discussion with the General Manager on a subscription to the Wall Street Journal. Hearing no objection, President Lori Sanders adjourned the Commission Meeting at 12:05 p.m. Lori Kays-Sanders, Secretary Page 9 of9