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2018-05-23 Meeting to discuss Tacoma PowerMeeting to discuss Tacoma Power May 23, 2018 3:01 p.m. Present: Commissioner Fund, Commissioner Jackson, Commissioner Stamper, Becky Butler, Larry Grove, Steve Walton, Ross Petersen, Laura Berg, Dianne Dorey, Steve Mansfield, Arny Davis Recorder: Rieva Lester Ross Petersen noted that Tacoma Power has followed through with many of its promises, such as emergency planning at the dam. He said Tacoma Power also has kept Community Development apprised of its efforts. Ross said he was surprised to learn that Tacoma Power owns roughly 2 percent of all land in Lewis County. Commissioner Jackson left at 3:07 p.m. Assessor Dianne Dorey noted that Tacoma Power owns 30,579 acres in Lewis County. Of that, 13,448 acres in the lake. She said 17,131 acres is mitigated. Dianne noted that Tacoma Power is exempt from paying property taxes on land it owns. She noted that the county also cannot collect harvest taxes. She said the county is missing out on B&O tax as well as employment for the individuals doing the forest work. Dianne said it appears much of the acreage owned by Tacoma Power is used for projects other than the dam. Ross noted that it’s unclear what the PILT funds represent. Dianne noted that Tacoma Power also owns two rail lines in Lewis County. She said Tacoma Power gets payments for use of its rail lines but that the county doesn’t. Ross said Tacoma Power runs the two hatcheries and four parks in Lewis County. Dianne noted that the state bought hundreds of acres off Teitzel Road to mitigate work along the freeway. Laura Berg said it seems that the county should get prior notification regarding DNR trust lands. Ross noted that Tacoma Power has increased its payment 2 percent annually over the past few years. He said the agreement dictates that the amount should increase 2 percent to 5 percent annually. TO-DO LIST / RECAP Ross Petersen: Check to see if there’s anything that indicates that mitigation should take place in the county in which the project takes place. Ross and Becky Butler: Review FERC agreement. Group: Review Fish and wildlife settlement, check for the presence of an agreement with PUD. Commissioner Stamper: Check for contract agreement with schools. Ross: Look into becoming an “intervener.’ Dianne noted that Tacoma Power’s payment has increased at a rate that is much lower than what property taxes, etc. have increased over a 20-year period. Commissioner Fund left at 3:29 p.m. Laura Berg said that when Pend Oreille County renegotiated with Tacoma Power, Pend Oreille County based its request on kilowatt-hours. Commissioner Fund returned at 3:33 p.m. Laura suggested addressing road costs, etc. too. Steve Mansfield discussed the need to reestablish a communication link with Tacoma Power. Ross said negotiation would be the first step and mediation would be the second. He said arbitration would be the next stop. He said the “loser” would pay the bill for arbitration. Ross said the negotiation route is 10 days. He said mediation is 30 days. He said arbitration and litigation would have no time limit. Becky said Tacoma Power’s second-quarter payment should arrive within the next week or so. She suggested not doing anything until the county receives that. Laura discussed the help the state offered when her county entered into renegotiations with Tacoma Power. Meeting ended at 4:14 p.m.