MINUTES OF THE MEETING OF THE COMMISSION. June 9, 2015

Transcription

1 MINUTES OF THE MEETING OF THE COMMISSION June 9, 2015 The regular meeting of the Board of Commissioners of Public Utility District No. 1 of Whatcom County was called to order at 8:00 a.m. by Commissioner Jeff McClure. Said meeting was open to the public and notice thereof had been given as required by law. Those present included Commissioner Mike Murphy, Commissioner Paul Kenner and Legal Counsel Jon Sitkin. Staff: Steve Jilk, General Manager; Ann Grimm, Administrative Assistant; Annette Smith, Director of Finance; Brian Walters, Director of Utility Operations; Rebecca Schlotterback, Contracts and Regulatory Compliance Manager; Duane Holden, Facilities and Construction Manager; Paul Siegmund, Manager, Automation and Technology; Mike Macomber, IT/SCADA Technician; Lew Gaskill, Accountant I; and Alec Strand, Project Manager; Public attending: Greg Brown, Max and Carole Perry, citizens; Dave Olson, Cornerstone Management; and Rick Maricle, Phillips66 + Public Comment None made. + Approval of the Meeting Minutes and Claims The Commissioners were presented with the Minutes of the Regular Meeting held May 26,2015, and the following Claims of June 9, 2015: VENDOR NAME 3-D CORPORATION AIR COMPRESSOR SERVICE APPLIED DIGITAL IMAGING ARGO INTERNATIONAL CORPORATION BAKER SEPTIC TANK PUMPING BAY CITY SUPPLY BELLINGHAM HERALD BIRCH EQUIPMENT COMPANY CHMELIK SITKIN & DAVIS CORNERSTONE MANAGEMENT, INC. CULLIGAN NORTHWEST FERGUSON ENTERPRISES, INC FERNDALE ACE HARDWARE FERNDALE READY MIX AND GRAVEL, INC FRONTIER GATEWAY CONTROLS HACKER, RONALD G HARDWARE SALES, INC. HD FOWLER CO, INC HEALTH PROMOTIONS NORTHWEST INDUSTRIAL SUPPLY, INC KAMAN FLUID POWER LLC KCDA PURCHASING COOPERATIVE MANAGEMENT SERVICES NW MORTIMER, TOM MURRAY SMITH & ASSOCIATES NORTHWEST FENCE, INC NORTHWEST MOWING & GARDENING PLATT ELECTRIC SUPPLY CO PROBUILD - OSO LUMBER PUGET SOUND ENERGY, INC REGENCE BLUE SHIELD REISNER DISTRIBUTION, INC RICOH USA SCHWEITZER ENGINEERING LABS SMITH, ANNETTE SSC - SANITARY SERVICE COMPANY UTILITIES UNDERGROUND LOCATION VERIZON WIRELESS WA ST DEPT OF LABOR & INDUST PERMITS WASHINGTON DENTAL SERVICE WASHINGTON ENVIRONMENTAL WASHINGTON TEAMSTERS WELFARE WHATCOM JANITORIAL AMOUNT 1, , , , , , , , , , , , , , , , , , Page 1 of5

2 XEROX CORPORATION GRAND TOTAL $153, ACTION: Commissioner Kenner motioned to approve the Minutes of the Regular Meeting held May 26, 2015, and the Claims of June 9, Commissioner Murphy second the motion. Motion passed unanimously. Approve Work Order No.2 with Electric Power Systems, Inc. for Engineering Services CIP Project E-6 (115kV Electric Transmission Line for Engineering Services executed with EPS March 30, The work to be performed at Whatcom PUD's request includes assessment of the PUD's two 115 kv transmission lines. One is the main line running from BPA's Bellingham substation to the PUD's Refinery substation, which was originally constructed in the 1950's. The second one is the tie line connected to the main line and running to the PUD's Ferndale Pump substation, which serves Water Treatment Plant No.1. This line was constructed in EPS will assess existing line conditions, including conductors and structures, and analyze the data obtained to determine if the lines meet Whatcom PUD design requirements and NESC requirements for minimum clearances and structural strength. As an example, the District has transmission lines which cross over Puget Sound Energy transmission lines. This will help detect whether there is proper clearance. Further, EPS will assess, through data collection and analysis, whether the ampacity of the existing conductors provides sufficient capacity for both existing power flows and possible future mcreases, Director of Utility Operations Walters explained that to facilitate and inform EPS's study, LiDAR surveying technology will be employed as well. LiDAR stands for Light Detection and Ranging, is a remote sensing method that uses light in the form of a pulsed laser to measure ranges (variable distances). This method is typically utilized by larger companies; however, costs have come down significantly. A LiDAR contractor working under EPS supervision will utilize LiDAR equipment and conduct an aerial survey of the two lines. Software associated with this technology will allow a three dimensional view of the structures and conductors. A complete baseline analysis will be possible. The work performed will assist Whatcom PUD staff in determining what improvements need to be made to the 115 kv lines in order to continue providing safe, reliable electric service and to remain in compliance with federal standards (NERC) for utility electric operations. There is no fiscal impact with the approval of Work Order No.2, as the project and expenditures are included in Whatcom PUD's approved 2015 CIP Budget (E-6), which is included in the overall 2015 Annual Budget. ACTION: Commissioner Murphy motioned to approve Task Order No.2 with Electric Power Systems Inc. (EPS) for Engineering Services associated with Whatcom PUD's CIP Project E-6 (115 kv Electric Transmission Line) for a work order budget amount not to exceed $93,300 and authorize the PUD's General Manager to execute the task order. Commissioner Kenner second the motion. Motion passed unanimously. Approve Work Order No.3 with Pacific Surveying and Engineering, Inc. for Surveying and Engineering Services Associated with CIP IS-3 (Trigg Road Entrance Improvements) for Surveying and Engineering Services executed with PSE on May 12,2015. At Whatcom PUD's request, PSE will provide surveying, engineering, and design services associated with upgrading the current dead ending of Trigg Road at the entrance to the PUD's property with a modified turn around that could facilitate vehicle turn-around at the end of Trigg Road and movement of larger vehicles into and out of the PUD' s driveway and provide a higher level of security for the entrance to the District's property. The entrance improvements were originally planned as a part of the Plant 2 Redesign but were later separated from that project. There is $143,000 budgeted for the project, however, this preliminary work being done by PSE will provide a firmer cost estimate. Jilk said that the entrance improvements will provide for an electronic gate for greater security for the administration building area and a turn-around access for school buses and fire department vehicles. As it stands now, there is about 60 feet of right-ofway where the road comes to a dead-end and it is difficult for school buses, larger vehicles and even delivery trucks to either make the turn into the District's driveway or turn around in general. Holden stated when the District receives a delivery of chemicals or large equipment; the trucks have a difficult time maneuvering the existing 90-degree turn into the driveway. The issues surrounding the existing access are lack of security (into the office and plant area), problems with the school bus traffic, providing better/safer access for large delivery trucks and equipment access to the District property. Page 2 of5

3 PSE will assist Whatcom PUD in preparing a final design and bid documents for the project, including construction specifications and drawings. Approval of Work Order No.3 with PSE has no financial impact on the District, as the project and expenditures are included in Whatcom PUD's approved 201S CIP Budget (IS-3), which is included in the overa1l201s Annual Budget. Commissioner McClure asked that once the study is complete and costs are analyzed, he would like an update and to revisit the project. Commissioner Murphy inquired if it would be a conflict of interest for him to participate in the vote because he is employed by the Ferndale School District and is also a Fire Commissioner. Sitkin said it would not be a conflict of interest as there is nothing that is personally related to Murphy - the District would consult with other school district officials and the Fire Marshal for turnaround dimensions and other roadway related information. ACTION: Commissioner Kenner motioned to approve Work Order No.3 with Pacific Surveying and Engineering Inc. (PSE) for surveying and engineering work associated with CIP IS-3 (Trigg Road Improvements) for a work order budget amount not to exceed $43,740 and authorize the PUD's General Manager to execute the task order. Commissioner McClure second the motion. Motion passed, Commissioners McClure and Kenner voted aye and Commissioner Murphy abstained from the vote. Approve Pipe Attachment and Water Transmission Agreement with Meadowbrook Water Association Background: Through the use of several grants, including a "Jobs Act Now" grant, received from the Washington State Department of Health, the PUD was able to assist three north county water associations, Meadowbrook, Northwood and Northwood Park, to consolidate their systems and construct short pipelines, under Badger Road to intertie these systems. The funding for the construction of the two pipelines had to be used by a Public Agency and the pipes constructed had to be owned by the Public Agency receiving the funds. The construction of the pipes is complete and in order to allow the water association to use the pipes and access to them, a use agreement with the PUD is required, not only to meet all grant requirements but to also cover liability. Sitkin explained the uniqueness is the fact that the PUD is charging the right to use the pipe and Meadowbrook will be responsible for maintenance. The recommended agreement, developed by PUD staff provides for the user, Meadowbrook, to use the pipes at a minimum cost while assuming responsibility for maintenance, insurance etc., while having the PUD retain ownership under the rules ofthe grant program and retains control of the pipe by the owner, the PUD. This was a very successful project in using state grants to resolve a very challenging water quality and water rights issue. There is no fiscal impact to the District. All costs of the project and administrative costs to the PUD are covered in the grants from DOH. ACTION: Commissioner Murphy motioned to approve the Pipe Attachment and Water Transmission Agreement with Meadowbrook Water Association and authorize the General Manager to sign. Commissioner Kenner second the motion. Motion passed unanimously. Approve Work Order No.1 with RH2 Engineering, Inc. for Engineering Consulting Services associated with Updating the Industrial Water System Capital Improvements Plan for Engineering Services executed with RH2 on May 18, 20 IS. The Water Supply Comprehensive Plan (WSCP) for Whatcom PUD was last updated in Since the time of the last WSCP, the operating conditions of the PUD's system have changed due to several factors, including a reduction in contract demands, the upgrades at Water Treatment Plant No.2, as well as other system improvements. An update to the 2010 WSCP is necessary to address these changes and to develop a current Capital Improvement Program (CIP) that prioritizes future projects and increases the reliability of the water system. Walters said that the 2010 Water Supply Comprehensive Plan has often been confused with the District's Water System Plan, which primarily addresses the PUD's potable water system and is submitted to the State Department of Health. As such, the updated plan will be titled Industrial Water System Capital Improvements Plan. This title more accurately depicts what the document actually represents. Another name confusion brought up by Commissioner McClure is the word "retail", as identified in Task No.2, Section 2.Sa states"... existing, retail, and future industrial water service area."... Jilk replied that the definition of "retail" means the District sells directly to the customer. There is also "retail" service for potable water, which has to be called out in the Comprehensive Water Plan. Similar to how the District's describes the sale of "raw" industrial water. Technically, the water is not raw - there is a primary treatment, which lowers turbidity levels and a minimal amount of chlorinating is done to prevent algae Page 3 of5

4 growth in the settling basins. It was also noted that the title of "Task 1" was omitted on page 2, under Scope of Services. Walters noted the correction. The Phase 1 Scope of Services under this work order outlines tasks necessary to begin the Whatcom PUD's 2010 WSCP update process. The tasks include an initial pre-planning meeting and data collection. The Phase 2 Scope of Services will be finalized after the pre-planning meeting and will include tasks to update the WSCP and identify improvements to increase the capacity and reliability of the water system to meet the Whatcom PUD's existing and future water supply commitments. This Phase 1 Scope of Services is intended to allow work to begin on the update of the WSCP as the full scope of services for Phase 2 are being considered and approved by the Whatcom PUD. There is no fiscal impact on the District as the project and expenditures are included in the PUD's 2015 Annual Budget. ACTION: Commissioner Kenner motioned to approve Work Order No.1 with RH2 Engineering Inc. (RH2) for engineering consulting services associated with the Update of What com PUD's Industrial Water System Capital Improvements Plan for a work order budget amount not to exceed $24,072 and authorize the PUD's General Manager to execute the task order. Commissioner Murphy second the motion. Motion passed unanimously. + Approve Interlocal Agreement for Financial Contribution to Whatcom County Public Works for River and Flood Division Proposed Project Located within Diking District No.4 Background: At the April 14, 2015 Commission Meeting, the Commissioners voted to approve a financial contribution of$10,000 to Whatcom County Public Works River and Flood Division for a proposed levee restoration project located within Diking District No.4. Whatcom County has developed the Interlocal Agreement what will allow for the disbursements of funds from the District to the County. More issues for the agreement are pending legal counsel review, and as such, this agenda item has been tabled until the next Commission Meeting. ACTION: No action taken. Item tabled until next meeting on June Manager's Report Pilot Program with State Department of Health Update Jilk has received the revised draft of the scope of work and is in the process of reviewing it for the proposed two-year Interlocal Agreement pilot program with the State Department of Health for the District to offer ongoing services to local water systems. This program would provide funding for services to be identified by DOH and the District and provided by the District. There are not many significant changes to the revised draft and he hopes to have the Interlocal Agreement ready for approval/finalization at the next Commission Meeting. WPUDA Attomey's Meeting Sitkin attended the recent WPUDA Attomey's meeting as this year's chair. Highlights included: The case regarding engineering and construction involving the City of Sedro Woolley's 1300-foot sewer line and manhole trenchless replacement project. There were several construction issues which resulted in a 70% out-of-grade sewer line installation, leading to expensive cut and fill rework and a year's delay in the project's completion; Municipal Disclosure Review; Okanogan PUD - audit issues and the condemnation of State Department of Natural Resources land; Grant/Chelan Counties PUDs - On-Call work for summertime tree trimming was reviewed; SEP AlHousekeeping items regarding service contracts and transfer assets. Strategic Planning Session The next Strategic Planning Session will be held in conjunction with the June 23rd Commission Meeting. + Executive Session Jilk requested an Executive Session to discuss potential water rights litigation. Jilk stated no formal action will be expected to either be taken or asked of following the Executive Session. He estimated the time for Executive Session to be approximately 30 minutes. There being no further business for the regular meeting, the Commission adjourned at 8:45 a.m. to Executive Session. Executive Session Adjourn There being no further business for the Executive Session, the Commission meeting at 9:19 a.m. reconvened to the regular Page 4 of5

5 Adjourn There being no further business for the regular meeting, the Commission 9:20 a.m. adjourned the regular meeting at Secretary/Commissioner Page 5 of5