PUBLIC UTILITY DISTRICT O of Whatcom County · to meet its forecast loads. Whatcom PUD’s electric load forecasts used in the Plan for the 5 and 10 Whatcom PUD’s electric load

PUBLIC UTILITY DISTRICT NO. 1 of Whatcom County

1705 Trigg Road Ferndale, WA 98248

P: (360) 384-4288 F: (360) 384-4849

Memo To: Commissioners Kenner, McClure and Murphy

From: Brian Walters – Director of Utility Operations

Date: September 13, 2016

Re: Approve Update of Whatcom PUD’s Resource Plan Submitted to the Washington State

Department of Commerce

Requested Action – Approve the update of Whatcom PUD’s Resource Plan as submitted to the

Washington State Department of Commerce.

Background – During its 2006 session, the State Legislature passed a bill requiring every electric

utility in the State to prepare a plan that includes their forecasts of future electric loads and what

energy resources they plan to use to meet those loads. The bill was signed by the Governor and

became RCW 19.280. Under the new law, each utility, both public and investor-owned had until

September 1, 2008 to prepare and file its initial plan. The plan must be updated every two years.

Utilities with 25,000 or more customers must prepare and update a comprehensive integrated resource

plan (IRP). Utilities, such as Whatcom PUD, that have fewer than 25,000 customers, only have to

prepare and update a resource plan (RP) sheet that lists forecast electric loads five and ten years in the

future and the energy resources, including conservation and renewables, that the utility plans on using

to meet its forecast loads. Whatcom PUD’s electric load forecasts used in the Plan for the 5 and 10

year forward years are based on the BPA load forecast for the same years.

A Plan update was required to be filed in draft by September 1, 2016. Staff complied with this

requirement pursuant to RCW 19.280. The updated Plan uses a base year of 2015 (actual load) and

forecasts loads and resources for the years 2020 and 2025. Included with this memo is the RP cover

sheet, which was submitted to the Washington State Department of Commerce. The Resource Plan

filed is not final until approved by Whatcom PUD’s Commission.

Staff recommends approval of the Resource Plan, as submitted.

Fiscal Impact – The Resource Plan has no fiscal impact on Whatcom PUD.

Recommended Action – Approve the update of Whatcom PUD’s Resource Plan as submitted to the

Washington State Department of Commerce.

AGENDA ITEM # 7

September 13, 2016

P.U.D. No.1 of Whatcom County << Utility Name

Washington State Utility Resource Plan Year 2016

Prepared by: Brian Walters

Base Year 5 Yr. Est. 10 Yr Est.

Estimate Year BPA FY 2015

Period Annual Annual Annual

Units (MWa) (MWa) (MWa)

Loads 25.12 26.78 26.98

Resources:

Future Conservation/Efficiency 0.60 0.60

Demand Response

BPA Tier 1 (include BPA PF) 25.12 26.18 26.38

BPA Tier 2 0.00 0.00 0.00

Non BPA:

Co-generation

Hydro (critical water)

Wind

Other Renewables

Thermal-Natural Gas

Thermal-Coal

Market Purchase (non BPA)

Other

Distributed Generation

Undecided

Total Resources 25.12 26.78 26.98

Load Resource Balance 0.00 0.00 0.00 This row will be zeros if loads and resources balance.

Date of Board/Commission Approval September-16 (mm/yy)

Notes: Explain resource choices other than conservation / Use of renewable energy credits in planning / Distributed Generation Sources

One way of commenting is to enter the

line number of the resource title and type

the comment following the number. For

example: "Line 24: Our Distributed

Generation sources are landfill gas and

solar.

To review your Utility's 2012 Cover

Sheet click here to download; they are in

alpha order.

Plan uses annual periods based on BPA Fiscal Year (FY), which runs October 1 through September 30 of the

following year.

http://www.commerce.wa.gov/Documents/Electric-Utility-Resource-Planning-2012-Report.pdf



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Staff believes, based on the demonstration conducted, that the use of the Drone platform for aerial inspectionof facilities utilizing cameras for real-time observations, photography, and thermography will greatly enhanceour ability to assess the condition of both electric and water facilities. Also, use of this technology will befaster and less expensive than the traditional means of doing these field surveys.

With the above in mind, staff arranged for a new Bellingham area company, Eagle Eye Aerial Solutions todemonstrate the capabilities of its aerial services, utilizing a Drone platform for visual inspecting transmissionstructures. Staff was impressed by the technology and the ability of the Drone to do close-in and top-downinspections relatively quickly. To staffs knowledge, it is the only organization in the Northwest that has acommercial license to conduct such work.

Regulatory requirements, particularly on the electric system side require regular inspections and evidence thatsystem facilities are being maintained to industry standards

Damage assessment following a storm event (i.e. high winds, ice) is constrained by a number of factors,including (1) availability of third party line crews to perform the work; (2) access to the transmission linecorridors (electric and water); and, (3) time required to do the assessments.

Background - From time to time, as needed, the District has retained engineering and technical consultingservices to evaluate the condition of its electric and water utility facilities. Both aerial and ground-based fieldinspections have been utilized as part of this ongoing effort. On the electric system side, past aerialinspections have included the use of a helicopter to visual inspection, photograph, and thermograph bothtransmission structures and lines. On the ground, District electric staff have conducted their own visualinspections and third party line crews have been retained to do bucket-truck in-the air inspections. Theseefforts are time consuming and relatively expensive.

Requested Action - Approve a ProfessionalConsultingServicesAgreement ("PSA") with Eagle-EyeAerialSolutionsfor Aerial ServicesRelated to Field Surveysof DistrictElectric andWater SystemFacilities,andauthorize the General Manager to execute the PSA.

To: Commissioners Kenner, McClure and Murphy

From: Brian Walters, DirectorUtilityOperations

Date: September 13,2016Re: Approve ProfessionalConsulting ServicesAgreement with Eagle-EyeAerial Solutions forAerial

ServicesRelated to Field Surveysof DistrictElectric and Water Utility System Facilities

AGENDA ITEM # 8September 13, 2016Memo

PUBLIC UTILITY DISTRICT No.1of Whatcom County

1705 Trigg Road. Ferndale, WA 98248P: (360) 384-4288 • F: (360) 384-4849

Page2 of2

Recommended Action - Approve Professional Consulting ServicesAgreement with Eagle-Eye AerialSolutions,LLC for Aerial Services InvolvingField Surveys of Electric and Water Utility System Facilitiesandauthorize the General Manager to execute the PSA.

Fiscal Impact - There is no fiscal impact associated with execution of the PSA. The District's current2016 CIP Budget, under line item E-6, includes sufficient remaining budget to cover the initial scope ofwork anticipated under a work order.

The use of a Drone would seem to be particularly well suited for damage assessments after a storm event(high winds, floods, etc.) versus the use of traditional land-based vehicles.

September 2016PSAWhatcom PUD/Eagle-EyeAerial Solutions

1. Scope of Services. The specific assignments for the Consultant will be identifiedfrom time to time by Whatcom PUD. The Consultant will prepare and submit to Whatcom PUDa proposed Work Order which shall include the proposed scope of services and fee estimate forthe proposed assignment. If acceptable, Whatcom PUD will execute the Work Order for thespecific assignment. The scope of Work Orders is hereinafter referred to as "Work". Services ofthe Consultant shall conform with the standard of care applicable to professionals providingsimilar such services in the State of Washington. All Work Orders must be approved in writingand approved in advance by the Commission and/or General Manager of Whatcom PUD. Theterms and conditions of this Agreement shall apply in all Work Orders approved by the WhatcomPUD, unless a Work Order contains terms and conditions different than those provided herein.Any Work Order and this Agreement shall be interpreted to give full meaning to all provisions.In the event that any provision of this Agreement is in conflict with any provision of an approved

NOW, THEREFORE, for and in consideration of the promises and the mutualcovenants set forth herein, the parties agree as follows:

WHEREAS, the selection of the consultants, and the Consultant herein, were made afterthe completion of a process that complied with all provisions of Federal, State, and local lawsconcerning selection of professional services.

WHEREAS, the Consultant herein is licensed to perform such services in compliancewith current applicable provisions of Federal, State, and local laws; and

WHEREAS, Consultant has expertise in providing such services and desires to performsuch services for Whatcom PUD; and

WHEREAS, Whatcom PUD wishes to obtain technical consulting services related toaerial field surveys of its electric and water utility facilities; and

Consultant's general scope of services will include the performance of field surveytasks focused on aerial inspection & analysis of electric and water utility facilities to

assist District staff in identifying items requiring maintenance, repair, and/orreplacement. Aerial survey may include, but are not inclusive, photography, video,infrared "hot spot" thermography. Consultant will utilize Drone technology as the

aerial observation platform.

THIS AGREEMENT ("Agreement") is made and entered into this day of September2016, by and between the PUBLIC UTILITY DISTRICT NO.1 of WHAT COM COUNTY,1705 Trigg Road Ferndale, WA 98248, hereinafter called the "Whatcom PUD," and EAGLEEYE AERIAL SOLUTIONS, LLC, having a mailing address of P.O. Box 31272; Bellingham,WA 98226, hereinafter called "Consultant," for a project generally described as:

STANDARD AGREEMENTFOR PROFESSIONAL CONSULTING SERVICES

September 2016PSAWhatcom PUO/Eagle-EyeAerial Solutions

4.1 The Consultant shall submit monthly statements, including project budget status anda narrative progress description of services rendered in a form and in such detail as requested byWhatcom PUD. Whatcom PUD shall make prompt monthly payments for work completed to theWhatcom PUD's satisfaction and billed before the first day of the month. Whatcom PUD shallreview and consider for approval all bills submitted one week prior to a regularly scheduledmeeting of Whatcom PUD Commissioners. After approval of the Consultant's statement of bill,Whatcom PUD shall forward the approval to the County Treasurer for payment in the normal

4. Compensation and Payment. Whatcom PUD shall pay the Consultant only forcompleted Work and for services actually rendered which are described in each Work Order.Such payment shall be full compensation for Work performed or services rendered, including,but not limited to, all labor, materials, supplies, equipment and incidentals necessary to completethe Work. The Consultant shall obtain the prior written approval of Whatcom PUD for anycharges for additional services by the Consultant, the additional services of others retained by theConsultant, or the furnishing of additional supplies, materials or equipment. The Consultantshall not be entitled to compensation for any such additional charges incurred in violation of thisparagraph.

2. Term. The term of this Agreement shall commence on execution of this Agreementuntil all tasks associated with the scope of services herein, as may be amended, have beencompleted by Consultant or December 31, 2018, whichever is sooner, unless terminated earlieras provided herein.

3. Termination. Whatcom PUD reserves the right to terminate this Agreement at anytime by sending written notice of termination to the Consultant. The notice shall specify atermination date at least fourteen (14) calendar days after the date the notice is issued. The noticeshall be effective upon the earlier of either actual receipt by the Consultant (whether by fax, mail,delivery or other method reasonably calculated to be received by the Consultant in a reasonablyprompt manner) or three (3) calendar days after issuance ofthe notice. Upon the notice date, theConsultant shall immediately commence to end the Work in a reasonable and orderly manner.Unless terminated for the Consultant's material breach, the Consultant shall be paid orreimbursed for: (a) all hours worked and eligible expenses incurred up to the notice date, less allpayments previously made; and (b) those hours worked and eligible expenses incurred after thenotice date, but prior to the termination date, that were reasonably necessary to terminate theWork in an orderly manner. The notice shall be sent by the United States Mail to theConsultant's address provided herein, postage prepaid, certified or registered mail, return receiptrequested, or by hand delivery. In addition, the notice may also be sent by any other methodreasonably believed to provide the Consultant actual notice in a timely manner, such as fax.Whatcom PUD does not by this Section waive, release or forego any legal remedy for anyviolation, breach or non-performance of any of the provision of this Agreement. At its soleoption, Whatcom PUD may deduct from the final payment due the Consultant (a) any damages,expenses or costs arising out of any such violations, breaches, or non-performance and (b) anyother back charges or credits.

Work Order, the more specific shall control, and if a conflict still exists, then the Work Ordershall control the specific conflicting provision

9.1 The foregoing insurance policies shall name Whatcom PUD as an additional insured.Consultant shall provide two (2) certificates of insurance and, if requested, copies of any policy

c. Workers Compensation Insurance as required by law.

b. Automobile Liability Insurance covering all owned and non-ownedautomobiles or vehicles used by or on behalf of Consultant. The limits of liability shallbe not less than One Million Dollars ($1,000,000) for each occurrence and in theaggregate unless Whatcom PUD approves in writing a lesser limit.

a. Comprehensive general liability policy covering all claims for personalinjury (including death) and/or property damage arising out of Consultant's services. Thelimits ofliability shall be not less than OneMillion Dollars ($1,000,000) for eachoccurrence and in the aggregate unless Whatcom PUD approves in writing a lesser limit.


9. Insurance. Consultant shall procure and maintain during the term of this Agreementthe following insurance:

8. Conflict of Interest. Consultant covenants that it presently has no interest and shallnot acquire an interest, directly or indirectly, which would conflict in any manner or degree withits performance under this Agreement. Consultant further covenants that in the performance ofthis Agreement, no person having such interest shall be employed by it or any of itssubcontractors.

7. Recordation of Documents Affecting Title. Prior to the execution or recordation ofany documents affecting title to any property, the said document shall be reviewed by WhatcomPUD. Whatcom PUD shall be responsible for all costs associated with such review.

6. Project Management. Whatcom PUD's designated representative may at any timeissue written directions within the general scope of this Agreement. If any such direction causesan increase or decrease in the cost of this Agreement or otherwise affects any other provision ofthis Agreement, the Consultant shall immediately notify the designated representative in writingand take no further action concerning those written directions until such time as the parties haveexecuted a written change order. No additional work shall be performed or charges incurredunless and until Whatcom PUD approves in writing the change order and the increased costthereof. Any work done in violation of this paragraph shall be at the sole expense of theConsultant.

5. Compliance With Laws. All Federal, State and local laws applicable in the renderingof the services by the Consultant shall be complied with in all respects by the Consultant, as shallall rules and regulations of What com PUD and any other governmental agency. The Consultantshall register, as required by RCW 23B.15.010, to do business in the State of Washington andprovide proof of the same to Whatcom PUD.

course of events. In no event shall Whatcom PUD be charged interest on payments due under thisAgreement. Whatcom PUD shall not be obligated to pay for services deemed unsatisfactory.


13. Electronic Transmission. All electronically transmitted output must be compatiblewith existing District software and must be accompanied by at least one (1) copy of written

12. Property of District. All Plans, Reports, Documents, Photographs, Drawings, andSpecifications that are generated by the Consultant for Whatcom PUD under this contract are andshall remain the property of What com PUD whether the Project for which they are made isexecuted or not. The Consultant assumes no liability for any use of the Drawings andSpecifications other than that originally intended for this Project. The Consultant shall retainoriginals during the performance of the Services and reproducible copies shall be provided asrequested by Whatcom PUD. Upon completion of the work, the originals of all Plans, Drawingsand Specifications shall be delivered to Whatcom PUD.

11. Confidentiality. Any reports, documents, questionnaires, records, information ordata given to or prepared or assembled under this Agreement which Whatcom PUD requests tobe kept confidential shall not be made available by the Consultant to any individual ororganization without prior written approval of Whatcom PUD, except as may be ordered by acourt of competent jurisdiction. The provisions of this section shall survive the expiration orearlier termination of this Agreement. No reports, records, questionnaires, software programsprovided by Whatcom PUD or other documents produced in whole or in part by the Consultantunder this contract shall be the subject of an application for copyright by or on behalf of theConsultant.

10. Indemnification. Consultant shall indemnify and hold Whatcom PUD harmless fromand against all costs and losses, and all claims, demands, suits, actions, payments and judgments,arising from personal injury or otherwise, brought or recovered against Whatcom PUD by reasonof any negligent act or omission of Consultant, its directors, officers, agents or employees in theperformance and execution of the Services hereunder, including any and all expenses, legal orotherwise, incurred by Whatcom PUD or its representatives in the defense of any claim or suit.

9.2 IfConsultant fails to procure and maintain the insurance described above, WhatcomPUD shall have the right, but not the obligation, to procure and maintain substitute insurance andto pay the premiums. Consultant shall pay to Whatcom PUD upon demand the full amount paidby Whatcom PUD, or Whatcom PUD may offset such premiums against amounts to be paid toConsultant.

to Whatcom PUD. Receipt of such certificate or policy by Whatcom PUD does not constituteapproval by Whatcom PUD of the terms of such policy. Furthermore, the policy of insurancerequired herein shall: (i) be written as a primary policy; (ii) expressly provide that suchinsurance may not be materially changed, amended or canceled with respect to Whatcom PUDexcept upon forty-five (45) days prior written notice from the insurance company to WhatcomPUD; (iii) contain an express waiver of any right of subrogation by the insurance companyagainst Whatcom PUD and Whatcom PUD's elected officials, employees, or agents; (iv)expressly provide that the insurance proceeds of any loss will be payable notwithstanding any actor negligence of Consultant which might otherwise result in a forfeiture of said insurance; and(v) in regard to physical property damage coverage, expressly provide that all proceeds shall bepaid jointly to Whatcom PUD and Consultant.


20. Litigation/Arbitration. In the event either party herein finds it necessary to bring anaction against the other party to enforce any of the terms, covenants or conditions hereof or anyinstrument executed pursuant to this Agreement by reason of any breach or default hereunder orthereunder, the party prevailing in any such action or proceeding shall be paid all costs andattorneys' fees incurred by the other party, and in the event any judgment is secured by such

19. Understanding of Agreement. Each party acknowledges that such party has readthis Agreement and understands its contents, that such party has had the opportunity to have thisAgreement reviewed by an attorney of such party's choice, and that such party either hasconsulted with an attorney or voluntarily has chosen not to consult with an attorney beforesigning this Agreement.

18. Discrimination. In connection with the performance of this Agreement, theConsultant shall not discriminate against any employee or applicant for employment because ofrace, color, religion, sex, national origin, age, marital status, or being handicapped, adisadvantaged person, or a disabled or Vietnam era veteran. The Consultant shall takeaffirmative action to ensure that the employees are treated during employment without regard to,their race, color, religion, sex, national origin, age, marital status, or being handicapped, ordisadvantaged person, or disabled or Vietnam era veteran.

17. Subconsultants. Contractor shall notify Whatcom PUD in writing of allsubconsultants hired or utilized by Consultant. At the time of project completion, the Consultantagrees to certify to Whatcom PUD that all sub consultants have been paid in full. Consultantshall be solely responsible for the performance of any sub-consultant. All such subconsultantsshall possess all licenses and insurance as required by the laws of the State of Washington.

16. Industrial Insurance Act Defense Waiver. The Consultant expressly waives anyclaim of defense against Whatcom PUD as may be provided by the Industrial Insurance Act,RCW 51.04.010 et seq. for any claim asserted by any person (or relative or estate thereof) forinjury or death sustained during the course of the Contract work.

15. No Employment Relation Created. Consultant is an independent contractor, whowill provide services to Whatcom PUD. The Parties are not "partners" and this Agreement doesnot create a partnership, joint venture relationship or an employer-employee relationship. Therelationship between Whatcom PUD and the Consultant is not and shall not be construed to be anemployment relationship under any circumstance, and shall be construed only to be anindependent contractor relationship with Whatcom PUD.

14. Contamination. For the purpose of this clause, contamination conditions shall meanthe actual or alleged existence, discharge, release or escape of any irritant, pollutant,contaminant, or hazardous substance into or upon the atmosphere, land, groundwater, or surfacewater of or near the property. Consultant will promptly notify Whatcom PUD of contaminationconditions, if identified.

reports, Consultant shall check with Whatcom PUD for software application and systemcompatibility .


22. Amendment. No modification, termination or amendment of this Agreement maybe made except by written agreement signed by all parties, except as provided herein.

or to such other address as the foregoing parties hereto may from time-to-time designate inwriting and deliver in a like manner. All notices shall be deemed complete upon actual receipt orrefusal to accept delivery. Facsimile transmission of any signed original document andretransmission of any signed facsimile transmission shall be the same as delivery of an originaldocument.

Sam AdamsEagle-Eye Aerial Solutions, LLCP.O. Box 31272Bellingham, WA 98226

Consultant:

Stephan Jilk, General ManagerPublic Utility District No. 1 of Whatcom County1705 Trigg Road/PO Box 2308Ferndale, WA 98248-2308

District:

21. Notices. All notices, demands, requests, consents and approvals which mayor arerequired to be given by any party to any other party hereunder shall be in writing and shall bedeemed to have been duly given if delivered personally, sent by facsimile, sent by a nationallyrecognized overnight delivery service, or if mailed or deposited in the United States mail andsent by registered or certified mail, return receipt requested, postage prepaid to:

prevailing party all such costs and attorneys' fees of collection shall be included in any suchjudgment. In the event of any dispute arising between the parties to this Agreement, any suchdispute shall be submitted to binding arbitration as provided herein. The parties shall select anindependent and unbiased arbitrator who is not affiliated directly or indirectly with either partywithin ten (10) days after any party demands arbitration. If the parties fail to select or cannotagree upon an arbitrator within this time, then they shall make application to the Superior Courtof Whatcom County, pursuant to RCW 7.04 et seq., for an order appointing an arbitrator. Suchapplication may be made at any time after the ten (10) day period has expired. Upon applicationto the court for an arbitrator, the Court shall select an arbitrator who shall render his/her decisionno later than sixty (60) days after his/her appointment. If the arbitrator requests a hearing prior torendering his/her decision, such hearing shall be held in Whatcom County, Washington withinthirty (30) days of the arbitrator's appointment. The arbitrator's decision shall be binding onboth parties. Each party shall bear its own expenses associated with the arbitration but shallshare equally the costs of the arbitrator. RCW Chapter 7.04 and Rules 5.2 through 5.4 oftheMandatory Arbitration Rules for Superior Court ("MAR") shall govern the arbitration. In theevent of any inconsistencies between the Binding Arbitration Clause, RCW Chapter 7.04, andMAR 5.2 through 5.4, the terms of the Binding Arbitration Clause shall take precedence overRCW Chapter 7.04 and MAR 5.2 through 5.4; and RCW Chapter 7.04 shall take precedence overMAR 5.2 through 5.

30. Entire Agreement. The entire agreement between the parties hereto is contained inthis Agreement and the exhibits hereto, and this Agreement supersedes all of their previousunderstandings and agreements, written and oral, with respect to this transaction. This Agreementmay be amended only by written instrument executed by the parties subsequent to the datehereof. The Consultant specifically understands that no District employees other than the projectmanager or his/her supervisors are authorized to direct the work of the Consultant and/or amendthis Agreement.

29. Time of Performance. Time is specifically declared to be of the essence of thisAgreement and of all acts required to be done and performed by the parties hereto.

28. Governing Law. This Agreement and the right of the parties hereto shall begoverned by and construed in accordance with the laws of the State of Washington.

27. Neutral Authorship. Each of the provisions of this Agreement has been reviewedand negotiated and represents the combined work product of all parties hereto. No presumptionor other rules of construction which would interpret the provisions of this Agreement in favor ofor against the party preparing the same shall be applicable in connection with the construction orinterpretation of any of the provisions of this Agreement.


26. Counterparts. This Agreement may be executed in any number of counterparts, andeach such counterpart hereof shall be deemed to be an original instrument, but all suchcounterparts together shall constitute but one agreement.

25. Severability. In case anyone or more of the provisions contained in this Agreementshall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity,illegality or unenforceability shall not affect any other provision hereof, and this Agreement shallbe construed as if such invalid, illegal or unenforceable provision had never been containedherein.

24. Captions. The captions of this Agreement are for convenience and reference onlyand in no way define, limit, or describe the scope or intent of this Agreement.

23. Waiver. No failure by any of the foregoing parties to insist upon the strictperformance of any covenant, duty, agreement, or condition of this Agreement or to exercise anyright or remedy consequent upon a breach thereof shall constitute a waiver of any such breach orany other covenant, agreement, term or condition. Any party hereto, by notice and only by noticeas provided herein, may, but shall be under no obligation to, waive any of its rights or anyconditions to its obligations hereunder, or any duty, obligation or covenant of any other partyhereto. No waiver shall affect or alter this Agreement, and each and every covenant, agreement,term and condition of this Agreement shall continue in full force and effect with respect to anyother then existing or subsequent breach thereof.


Date signed: __

By: __Title: --------------------------Firm's EIN: ---------------------

CONSULTANT:

Date signed: __

By: __Title: General Manager

PUBLIC UTILITY DISTRICTNO.1 OF WHATCOM COUNTY

DISTRICT:

IN WITNESS WHEREOF, the parties hereto execute this Agreement.