PUBLIC UTILITY DISTRICT NO. 1
of Jefferson County
March 3, 2015

REGULAR MEETING
MINUTES
The Regular Meeting of the Public Utility District No.1 of Jefferson County was called to order by the President of the Board of Commissioners at 5:01 p.m.   Commissioners and staff present were:

Wayne King, President
Kenneth Collins, Vice-President
Barney Burke, Secretary
James Parker, District Manager
Kevin Streett, District Electrical Superintendent
Bill Graham, District Resource Manager
Malcolm Harris, Legal Counsel, via telephone
Don McDaniel, Consultant
Kate Pike, Brisa Services

AGENDA 
The Agenda was approved with addition of customer suggestion to be heard under discussion.

APPROVAL OF MINUTES
MOTION:  By Commissioner Burke, Second by Commissioner Collins, carried unanimously, to approve the Regular Meeting Minutes of February 17, 2015.

APPROVAL OF VOUCHERS
MOTION:  By Commissioner Collins, Second by Commissioner Burke, carried unanimously, to approve payment of:
	Warrants No. 107591 through 107710 in the amount of   $    424,332.72
	Warrants No.  70025 through  70029 in the amount of             13,997.59
			      	        Total Warrants                                   $      438,330.31
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1.  Leo Boyd, North Olympic Peninsula Data Centers, commented on the letter in correspondence from NoaNet regarding its relationship with J-Net (Jamestown Networks).

COMMISSIONER REPORTS
Commissioner  Burke
February 19:  Attended the WAPUDA energy meeting via telephone
February 24:  Participated in webinar  on climate adaptation project regarding climate change in Jefferson and Clallam Counties
February 25:  Attended meeting of Jefferson County/Port Townsend Climate Action Committee
February 28:  Attended Home & Garden Expo 
March 2:  Attended meeting of 20/20 Energy Action Group
March 3:  Attended JPUD Special Meeting Workshop to overview employee benefits
March 9:  Expect to attend meeting of JPUD Citizen Advisory Board
March 17:  Expect to attend Jefferson County Energy Lunch
Commissioner Collins
February 18-19:  Attended WPUDA meetings
February 26:  Attended meeting of North Olympic Development Council (a merger between the Peninsula Development District and the North Olympic Peninsula Resource Conservation & Development Council)
March 3:  Attended JPUD Special Meeting Workshop to overview employee benefits
March 17:  Expect to attend strategic planning meeting of the North Olympic Development Council 
Commissioner King
February 21:  Attended celebration of life for Moe Moser, Quilcene Fire Rescue Deputy Chief
February 23:  Attended interview with Chief Financial Officer candidate
February 25:  Attended bid opening for transformer purchase
February 27:  Attended interview with Chief Financial Officer candidates
February 27:  Assisted in set up of JPUD booth for Home & Garden Expo
February 28:  Attended Home & Garden Expo
February 28:  Attended  Quilcene Community meeting
March 3:  Attended JPUD Special Meeting Workshop to overview employee benefits

EXECUTIVE SESSION
At 5:30 p.m. the Board adjourned, with legal counsel, from the Regular Meeting to Executive Session for evaluation of complaint brought against a public official or employee, to evaluate qualifications of an application for public employment, and to discuss litigation or potential litigation with legal counsel.  No ACTION was taken.

At  5:50 p.m. the Regular Meeting was again called to order.

ACTION ITEMS
a)  Award of Purchase of Substation Transformer
The Manager presented bid evaluation for purchase of a transformer for the Irondale substation.  Ten bids were received with CG Power Systems, considering product and delivery, being the lowest.  After brief discussion, the Board took the following ACTION:
MOTION:  By Commissioner Burke, Second by Commissioner Collins, carried unanimously, to award bid for purchase of a transformer for the Irondale substation to CG Power Systems.
b)  Award of RFP for Feasibility Study for Water/Sewer System
The Manager presented a Request for Qualifications for civil engineering consulting for the restructuring of the Olympic Water and Sewer System, Inc. Water System (currently a subsidiary of Port Ludlow Associates, LLC) under the ownership and management of JPUD.  JPUD has received a Department of Health grant to conduct a feasibility study for acquisition of the system.  Also submitted was a statement of qualifications from HDR Engineering, Inc.  After discussion the Board took the following ACTION:
MOTION:  By Commissioner Collins, Second by Commissioner Burke, carried unanimously, to direct the Manager to negotiate a contract with HDR Engineering, Inc. for consulting for the restructuring of the Olympic Water and Sewer System, Inc. water system under the ownership and management of JPUD. Engineering, Inc. 
c)  Recommendation for new CFO Position
Applications were reviewed and interviews were held for the position of Chief Financial Officer.  The applicant selected for candidacy was Robert C. Caprye of Port Townsend, Washington.  After brief discussion the Board took the following ACTION:
MOTION:  By Commissioner Burke, Second by Commissioner Collins, carried unanimously, to authorize the Manager to negotiate terms of employment with Robert C. Caprye for the position of Chief Financial Officer.

DISCUSSION ITEMS
a)  EV Discussion - Federal Grant
The Manager presented a memorandum concerning charging stations for electric vehicles and support of federal grant funding to support the National Park Service for providing electric vehicle infrastructure for electric vehicle drivers' access to the Olympic National Park.  Local 2020 of Port Townsend is organizing a proposal to fund fast DC charging stations on routes to the park.  Tom Engel addressed the Board regarding this proposal.  After discussion the Board took the following ACTION:
MOTION:  By Commissioner Burke, Second by Commissioner Collins, carried unanimously, to offer support for the proposal and directed the Manager to send appropriate correspondence.
b)  PUD Policy - Drugs in Workplace
The Manager presented the Jefferson County PUD policy on a drug free workplace.  There was also discussion concerning appropriate professionals to evaluate specific employee needs. Further discussion on implementation will follow.  
c)  Avian Protection Plan
The Manager presented information on an Avian Protection Plan, a utility-specific program designed to reduce operational and avian risks resulting from avian interaction with electric utility facilities, with a goal of reducing avian mortality.  There was some discussion regarding local advice and both the National Audubon Society and Washing State Department of Fish & Wildlife were mentioned.  
d)  Meter Reading Adjustment
The Manager presented a memorandum regarding a customer request to review billing on a water account with zero read on a meter due to damage by rodents.  JPUD back billed at its low rate for consumption through the meter during the year of zero read; however, the customer does not agree.  JPUD policy has been that, in such an event billing would go back for six months.  The Board agreed and the Manager will address.
e)  Energy Efficiency Program Update
Bill Graham updated the Board on the state of the Bonneville Power Administration Energy Efficiency Action Plan budget funding.  Concerning non-residential projects, several are completed or close, including Port Townsend Commons, Jefferson County Historical Society Museum and U.S.Navy.  Port Townsend Paper Corporation, due to change in ownership, has an uncertain schedule.  A JPUD lighting contingency project scoping, recommended by the Citizen Advisory Board, is in progress.  The Energy Smart Grocer program is nearly spent, with future projects for next rate period being identified.  Regarding residential, over 250 rebates have been processed to date.  Habitat for Humanity projects for low income are being determined for eligibility and for a retroactive eligibility.  Also regarding residential low income, a Washington State University Cooperative Extension/Department of Commerce contract to fund low income assessment is being finalized.  Olympic Community Action Program (OlyCAP) is an initial target market;  first job invoices are due and two additional jobs in progress. The first low income weatherization program participant is pending.  There was discussion regarding the PUD Lighting Project locations.  It was noted that approximately $100-120 thousand is needed to finish for residential, but could increase with more low income weatherization projects.  Not include in the budget are the Cascadia Consulting contract nor BPA performance payment for commercial/industrial/federal measures.  Approximately $72,500 is unspent for residential projects.

MANAGER REPORT
The Manager reported that, regarding personnel, an additional lineman has been hired, advertisement for a right-of-way/staking engineer/vegetation manager closes this week, and a candidate for District Financial Director has been chosen.  EES will continue the rate study pending update of financial information and new Financial Director hire. Cost of survey for Indian Island fiber repair is pending. Four Corners' temporary building is on location.  Completion of drainfield must occur prior to occupancy.  

CORRESPONDENCE
1.  NoaNet Letter on JNET(Jamestown Networks) and Fort Worden Public Development Authority and provision of retail provision of broadband.