agenda regular commission meeting · october 25, 2016; to resume at the cochrane substation located...

PUBLIC UTILITY DISTRICT NO. 1 OF FRANKLIN COUNTY

AGENDA REGULAR COMMISSION MEETING

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November 8, 2016 – 1 PM 1411 W Clark St, Pasco, WA

Guiding Principles: Safety First Rates Reliability Relationships

AGENDA ITEM PRESENTER

1. Employee Safety Minute

2. Comments from the Public

3. Commissioner Reports

4. Consent Agenda

5. Re-opening the 2017 Budgets Public Hearing, Presenting Updated Preliminary 2017 Operating and Capital Budgets, and Recessing the Public Hearing ... Scarano

6. Adopting a Resolution Authorizing the General Manager or his Designee to Use a Portion of the Net Proceeds from the Dissolved Rural Economic Development Program Funds to Pay Costs of a Qualifying Project and Superseding Resolution 1243. .......................................................................................... Dohrman

7. Approving the 2017 Organization Representation List ................................ Nies

8. Appointing the 2017 Board of Commission Officers ..................................... Nies

9. Approving the 2017 Regular Commission Meeting Schedule ...................... Nies

10. Claims

11. General Manager’s Report

12. Staff Reports

13. Executive Session, if needed

14. Future Agenda Items

CONSENT AGENDA REGULAR COMMISSION MEETING

November 8, 2016

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1. To approve the minutes of the Special Commission Meeting of October 25, 2016

and the Regular Commission Meeting of October 25, 2016. 2. To approve payment of expenditures for October 2016, as audited and certified by the

auditing officer as required by RCW 42.24.080, and as reviewed/certified by the General Manager as required by RCW 54.16.100, and expense reimbursement claims certified as required by RCW 42.24.090 and made available to the Commission for inspection prior to this action, amounting to $6,703,875.52

a) Automated, EFT and Refund vouchers as listed on the Warrant Register

in the amount of $1,683,376.04, b) Voids – No voids for this period, and c) Wire transfers totaling $5,020,499.48 to the following:

To: For Payment of: Amount

UMPQUA BANK DIRECT DEPOSIT PAYROLL $421,927.07

BONNEVILLE POWER ADMINISTRATION POWER $2,972,315.00

BP CORPORATION NA INC POWER SWAP $2,976.00

EDF TRADING NORTH AMERICA GAS SWAP $16,740.00

EFTPS - PAYROLL TAXES PAYROLL TAXES $87,336.66

FREDERICKSON POWER LP ENERGY $469,034.14

LL&P WIND ENERGY INC WIND ENERGY $161,835.36

MACQUARIE ENERGY LLC GAS SWAP $8,370.00

MORGAN STANLEY CAPITAL GROUP INC GAS SWAP $22,752.00

POWER SWAP $4,836.00

POWEREX CORP FREDERICKSON GAS $373,404.81

PUD ADVANCE TRAVEL PUD ADVANCE TRAVEL $4,822.74

THE ENERGY AUTHORITY CONSULTING $86,855.33

WA STATE DEPT OF RETIREMENT SYSTEMS

PERS $110,769.20

WA STATE DEPT OF REVENUE EXCISE TAX $276,525.17

Total $5,020,499.48

3. To declare a final acceptance of the work completed and as inspected by the District;

to authorize release of available retainage; and to approve final payment in the amount of $2,590.09 for work completed by American Building Maintenance, Co.; under Contract 8606, Janitorial Services.

THE BOARD OF COMMISSIONERS OF PUBLIC UTILITY DISTRICT NO. 1 OF FRANKLIN COUNTY

MINUTES OF OCTOBER 25, 2016

SPECIAL COMMISSION MEETING The Board of Commissioners of Public Utility District No. 1 of Franklin County held a special meeting at 1411 West Clark, Pasco, Washington, on October 25, 2016 at 10:30 a.m. Those present from the District were Commissioner Roger Wright, President; Commissioner Stu Nelson, Secretary; Tim Nies, General Manager; Duane Sams, Director of Engineering; and Rosario Viera, Executive Assistant. Additional staff present for all or part of the meeting were Barry Balvitsch, Transmission and Distribution Superintendent; Elena Ramirez, Public Records Officer; Einar Offerdahl, Engineering Manager; Darrel Brown, System Engineer; and Dave Reed, Substation Electrician Foreman. Public present for all or part of the meeting was Tyson Fellman, District customer. Commissioner Wright called the special meeting to order at 10:30 a.m. and welcomed those in attendance. He reported that Commissioner Gordon was excused and would not be attending. Commissioner Wright reported that the purpose of the special meeting was to have a demonstration and discussion on the District’s mobile substation. At 10:31 a.m., Commissioner Wright adjourned the special meeting until 10:50 a.m., October 25, 2016; to resume at the Cochrane Substation located at 5151 Argent Rd., Pasco, WA. No public comment was taken at the special meeting. At 10:50 a.m., Commissioner Wright resumed the special meeting at the noted location and reported that the purpose of the special meeting was to have a demonstration and discussion on the District’s mobile substation. MOBILE SUBSTATION DEMONSTRATION AND DISCUSSION Commissioner Wright called on Mr. Sams to address the Commission. Mr. Sams introduced the other District staff present and briefly reported on their responsibilities regarding the mobile substation. Mr. Sams reported that the mobile substation was initially included in the 2015 Capital Budget and carried over to 2016. He

Minutes of Franklin PUD October 25, 2016 Special Commission Meeting

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noted the cost of the mobile substation was approximately $2 million and provided further details on the mobile substation. Mr. Sams reported on the need for and the benefits of having a mobile substation, noting that it could be used during routine maintenance of existing substations and emergency outages. Mr. Sams reported that 10 of the District’s existing substations are designed to allow the necessary clearance for the use of the mobile substation. He noted that staff is finalizing installation plans and procedures for the use of the mobile substation at all of the existing District substations that are compatible. He noted that four existing substations are not compatible. There was discussion during the demonstration. The Commission asked various questions and staff provided the information. The Commission thanked staff for the demonstration. MEETING ADJOURNED With no further business to come before the Commission, Commissioner Wright adjourned the special meeting at 11:07 a.m. The District will hold its next regular meeting on October 25, 2016 at 1:00 p.m. at the District’s Auditorium.

________________________________

Roger Wright, President ________________________________ William Gordon, Vice President ________________________________ Stuart Nelson, Secretary

THE BOARD OF COMMISSIONERS OF PUBLIC UTILITY DISTRICT NO. 1 OF FRANKLIN COUNTY

MINUTES OF THE OCTOBER 25, 2016

REGULAR COMMISSION MEETING The Board of Commissioners of Public Utility District No. 1 of Franklin County held a regular meeting at 1411 West Clark, Pasco, WA, on October 25, 2016 at 1:00 p.m. Those present from the District were Commissioner Roger Wright, President; Commissioner Bill Gordon, Vice President; Commissioner Stu Nelson, Secretary; Tim Nies, General Manager; Vic Scarano, Director of Administrative Services; Carrie Locke, Human Resources Manager; Holly Dohrman, Director of Power Management; and Rosario Viera, Executive Assistant. Other staff present for all or part of the meeting were Todd Blackman, Energy Services Specialist; Einar Offerdahl, Engineering Manager; and Linda Esparza, Energy Services Manager. Public present for all or part of the meeting were Tyson Fellman, District customer; and Matt Backlund, Vice President of Commercial Banking, Umpqua Bank. Commissioner Wright called the meeting to order at 1:02 p.m. and welcomed those in attendance. Commissioner Wright reported that the special meeting held earlier today was informative. He noted that given the amount of capital investment at District substations staff should research installing video surveillance. EMPLOYEE SAFETY MINUTE The Commission called Mr. Blackman and asked for his overall rating on the safety culture at the District and for concerns or suggestions to improve safety. Mr. Blackman gave the District’s safety culture an 8 out of 10 mark, noting there can always be improvement. Mr. Blackman reported that employees at the operations site are required to have more safety training due to the nature of their job and that administrative employees do participate in safety events as offered by the District. He reported that focusing on a smaller list of safety goals would be more palatable for employees. Mr. Blackman noted that he appreciated the safety training being provided, in particular the recent active shooter training because it had provided defensive guidelines. He noted that employee awareness of their surroundings was the key to safety. The Commission asked what they could do to increase safety awareness or improve the general work environment at the District. Mr. Blackman reported that the importance of

Minutes of the Franklin PUD October 25, 2016 Regular Commission Meeting

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safety has to be passed down, enforced by policy and allowed the appropriate budget to provide for what is needed to keep employees safe. Mr. Blackman reported that he enjoys working at the District, however he was of the opinion, that internal customer service needs to be improved. The Commission thanked Mr. Blackman for attending. The Commission requested that in addition to CPR training, “first aid” be available to employees. Ms. Viera noted that training on heat exhaustion, diabetic shock, seizure, minor burns, choking hazards and other first aid training are offered to employees. PUBLIC COMMENT Commissioner Wright called for public comment and there was none. Commissioner Wright re-ordered the agenda items to accommodate the public present and moved to the approval of the consent agenda. CONSENT AGENDA The Commissioners reviewed the Consent Agenda. Mr. Scarano noted that the Write Off report included the pole attachment account that was uncollectible. Commissioner Nelson moved and Commissioner Gordon seconded to approve the Consent Agenda as follows: 1. To approve the minutes of the Regular Commission Meeting of September 27, 2016. 2. To approve payment of expenditures for September and October 2016, as audited

and certified by the auditing officer as required by RCW 42.24.080, and as reviewed/certified by the General Manager as required by RCW 54.16.100, and expense reimbursement claims certified as required by RCW 42.24.090 and made available to the Commission for inspection prior to this action, amounting to $7,946,921.45

a) Automated, EFT and Refund vouchers as listed on the Warrant Register

in the amount of $1,615,301.82, b) Voids in the amount of $102,555.50 and c) Wire transfers totaling $6,434,175.13 to the following:

To: For Payment of Amount

UMPQUA BANK DIRECT DEPOSIT PAYROLL $675,777.14

BONNEVILLE POWER ADMINISTRATION POWER $3,053,433.00

TRANSMISSION $453,265.00

BP CORPORATION NA INC GAS SWAP $33,012.00


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CITIGROUP ENERGY INC OPTION PREMIUM $35,100.00

EDF TRADING NORTH AMERICA GAS SWAP $3,204.00

EFTPS - PAYROLL TAXES PAYROLL TAXES $282,553.37

FORTIS BC ENERGY INC CANADIAN GST $102,076.71

CANADIAN GST $102,076.71

FREDERICKSON POWER LP ENERGY $476,850.27

ICMA 401 DEFERRED COMPENSATION $36,901.67

ICMA 457 DEFERRED COMPENSATION $39,011.77

LL&P WIND ENERGY INC WIND ENERGY $142,416.78

MORGAN STANLEY CAPITAL GROUP INC GAS SWAP $69,079.20

POWEREX CORP FREDERICKSON GAS $399,879.79

PUD ADVANCE TRAVEL PUD ADVANCE TRAVEL $9,924.82

THE ENERGY AUTHORITY CONSULTING $92,189.45

WA STATE DEPT OF RETIREMENT SYSTEMS PERS $121,260.00

WA STATE DEPT OF REVENUE EXCISE TAX $306,163.45

Total $6,434,175.13

3. To approve Write-Offs as listed on the Write-Off Report dated September 30, 2016 in

the amount of $23,745.00.

4. To declare final acceptance of the work completed as inspected by the District; to authorize release of available retainage; and to approve final payment in the amount of $128,529.02 for work completed by Paramount Communications, Inc.; under Contract 8921, Snake River Substation Cell Tower Build Out.

The motion passed unanimously. RE-OPENING THE 2017 BUDGETS PUBLIC HEARING, PRESENTING UPDATED PRELIMINARY 2017 OPERATING AND CAPITAL BUDGETS, AND RECESSING THE PUBLIC HEARING. Commissioner Wright re-opened the budgets public hearing. Mr. Scarano introduced this agenda item, reporting that this was the second of four budget public hearings scheduled for the 2017 Operating and Capital Budgets. Mr. Scarano reviewed the changes in the 2017 Operating Budget crosswalk (Attachment A) and noted that there were no changes to the 2017 Capital Budget crosswalk (Attachment B). He presented the detail for the crosswalk changes on Attachment A for Commission review and public comment.


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The Commission asked various questions related to the BPA Funded Conservation and Utility Funded Conservation. Mr. Scarano noted that when the Commission closes the final hearing in December, staff will recommend that the Commission adopt the 2017 Operating and Capital Budgets. Staff recommended that after hearing any public comment and after review and discussion, the Commission recess the public hearing to the November 8, 2016 regular Commission meeting. Commissioner Wright called for public comment and there was none. Commissioner Nelson moved and Commissioner Gordon seconded to recess the 2017 Operating and Capital Budgets public hearing until the November 8, 2016 regular Commission meeting. The motion passed unanimously. ADOPTING A RESOLUTION ESTABLISHING A LINE OF CREDIT TO SECURE LETTERS OF CREDIT AND PROVIDING FOR THE ISSUANCE AND SALE OF AN ELECTRIC SYSTEM REVENUE NOTE OF THE DISTRICT IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,000,000 TO EVIDENCE THE LINE OF CREDIT; PROVIDING THE FORM, TERMS, AND COVENANTS OF THE NOTE AND SUPERSEDING RESOLUTION 1237. Mr. Scarano presented this agenda item and reviewed the background information as reported in the Agenda Item Summary included in the packet. He reported that a requirement of various power and natural gas purchase and sale contracts was for the District to have the ability to post collateral in the form of a Letter of Credit (LOC) to secure its obligations. Mr. Scarano noted that the current LOC is provided by Bank of the West, the previous banking services provider, and will expire October 31, 2016. He reported that in September 2014, Umpqua Bank was awarded the contract to provide banking services to the District. Mr. Scarano noted that not having a banking services relationship with Bank of the West increases the risk of the probability that the cost for the LOC will go up or that Bank of the West can choose not to offer an unsecured LOC in the future. He noted that staff worked with Umpqua Bank to obtain a new LOC that will satisfy the power contract requirements and called on Mr. Backlund to address the Commission. Mr. Backlund reported that Umpqua is able to provide a $3 million non-revolving line of credit to support the standby letters of credit when needed. He reviewed the terms and provisions in providing the LOC to the District and noted that the LOC will be secured by electric revenue streams with lien rights that are junior to the District’s electric revenue bonds. He reported that interest on any draws taken on the LOC will be at Prime plus 1%, which is determined at the time of the draw. The LOC will have a one-year term that will begin November 1, 2016 and end October 31, 2017 at a cost of $15,000 per year. The LOC will have the option to be renewed for up to three additional one-year terms


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upon mutual approval. Mr. Scarano noted that adopting the Resolution will also authorize the General Manager or his designee to execute the renewals provided the principle amount of $3 million is not exceeded. Discussion ensued. Mr. Backlund thanked the Commission for the opportunity and noted he looked forward to providing banking services to the District. The Commission thanked Mr. Backlund for attending the meeting. Staff recommended that the Commission adopt Resolution 1265 as presented. Commissioner Nelson moved and Commissioner Gordon seconded to adopt Resolution 1265 as presented. The motion passed unanimously. ADOPTING A RESOLUTION APPROVING THE REVISED RULES AND REGULATIONS FOR ELECTRIC SERVICE AND SUPERSEDING RESOLUTION 1223. Mr. Scarano presented this agenda item and reviewed the background information as reported in the Agenda Item Summary included in the meeting packet. He noted that Attachment A showed the substantive changes made to the current Rules and Regulations for Electric Service (Rules and Regulations) since first presented to the Commission in September. He noted that the Rules and Regulations presented at the September meeting included an adjustment to the small irrigation rate structure to bill for Kilowatt (KW) demand charge instead of Horsepower charges. Mr. Scarano noted that after additional research and to avoid frequent rate structure changes, staff proposed leaving the small irrigation rate structure as is. He noted that having one rate schedule for small and large irrigation will be discussed at the next Rate Advisory Meeting. Discussion ensued. The Commission concurred to leaving the small irrigation rate structure and the corresponding language in the Rules and Regulations as originally included. The Commission requested that staff research and provide an analysis on the impact of having one rate schedule for both small and large irrigation. They noted it was important to have a clear understanding of the impact this change could have on all customers and requested this be discussed at the next RAC meeting. The Commission stressed the importance of providing the customers under the small and large irrigation rate schedules up front information on any potential changes. Staff reported that adopting Resolution 1264 also authorizes the General Manager or his designee to approve administrative changes to the Rules and Regulations needed to keep the document current. All substantive changes or changes to rate schedules will continue to require Commission approval. Staff recommended that the Commission adopt Resolution 1264 as presented.


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Commissioner Gordon moved and Commissioner Nelson seconded to adopt Resolution 1264 as presented. The motion passed unanimously. AUTHORIZING THE GENERAL MANAGER OR HIS DESIGNEE TO EXECUTE A RESTATED BROADMOOR SUBSTATION INTERCONNECTION AND USE OF FACILITIES AGREEMENT WITH BIG BEND ELECTRIC COOPERATIVE. Mr. Nies presented this agenda item and reviewed the background information as reported in the Agenda Item Summary included in the meeting packet. Mr. Nies reported that in 2003, the District and Big Bend Electric Cooperative (Big Bend) entered into an agreement to build the Broadmoor Substation (substation) and have shared use of a single 115-12.47kV power transformer and ownership of the facilities at the substation site. He noted that the District is in need of additional capacity from the Broadmoor Substation and that staff negotiated a Restated Broadmoor Substation Interconnection and Use of Facilities Agreement (Restated Agreement) to increase the substation’s capacity through the installation of a second 115-12.47kV power transformer. The District will have ownership and primary use of half of the substation and Big Bend will have ownership and primary use of the other half of the substation. Mr. Nies reviewed the cost and responsibilities for the installation of the second transformer, ownership and use of the existing substation facilities, Capital and Operation and Maintenance, and the terms of the lump sum buyout as included in the Restated Agreement. He noted that the lump sum buyout will be based on the remaining balance on equipment amortization schedules and will not exceed $502,000. The payment for the lump sum buyout will be triggered when the power transformer is energized. The initial term will be for 50 years with an option to negotiate future extensions. Discussion ensued. The Commission requested to view the Restated Agreement and staff noted they would provide a copy. Staff recommended that the Commission authorize the General Manager or his designee to execute a Restated Broadmoor Substation Interconnection and Use of Facilities Agreement with Big Bend Electric Cooperative. Commissioner Nelson moved and Commissioner Gordon seconded to authorize the General Manager or his designee to execute a Restated Broadmoor Substation Interconnection and Use of Facilities Agreement with Big Bend Electric Cooperative in an amount not to exceed $502,000. The motion passed unanimously. AUTHORIZING THE GENERAL MANAGER OR HIS DESIGNEE TO EXECUTE A PUBLIC PARTICIPATION AT COMMISSION MEETINGS POLICY. Mr. Nies presented this agenda item and reviewed the background information as reported in the Agenda Item Summary included in the meeting packet. He reported that


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all public meetings of the Commission and the District are governed by the Washington Open Public Meetings Act (the Act, RCW 42.30) and open to the general public. Mr. Nies noted that most utilities have such a policy in place to provide a balance between public participation and timely consideration of Commission business that needs to be conducted at Commission meetings. He reviewed the Public Participation at Commission Meetings (Attachment A) with the Commission. The Commission reported that public participation at Commission meetings is welcomed and valued. The Commission reported that having this policy was beneficial for all. Staff recommended that the Commission authorize the General Manager or his designee to execute Administrative Policy 56, Public Participation at Commission Meetings. Commissioner Nelson moved and Commissioner Gordon seconded to authorize the General Manager or his designee to execute Administrative Policy 56, Public Participation at Commission Meetings. The motion passed unanimously. COMMISSIONER REPORTS Commissioner Nelson reported that: He attended the Pasco Chamber and Tri-City Hispanic Chamber luncheons. He attended PPC and noted there was discussion on fish costs and the efforts being

done by Northwest River Partners to save the dams.

Mr. Nies reported that federal agencies have begun the process for the Columbia River System Operations Environmental Impact Statement (EIS). He provided information on the EIS meetings being held in the northwest region and noted the importance of attending the meetings. Commissioner Gordon reported that: He did not attend any meetings since the September Commission meeting. Commissioner Wright reported that: He attended the October NoaNet meeting and noted that NoaNet paid off a debt

associated with a Line of Credit. He reported that there was discussion on NoaNet paying for future travel expenses incurred by its members to attend NoaNet meetings.

He attended a Fiber for the New Economy Conference in Minneapolis. He reported the conference was fast paced and offered small seminars on various fiber topics. He noted that having fiber to the home services increases a home’s resale value, facilitates the leasing of apartments and provided other statistics on fiber. Commissioner Wright reported that there was an opportunity to help the community and engage in a discussion with local businesses, schools, medical providers, law enforcement and Retail Service Providers to find out what their broadband/fiber needs are and what the District can do to help. Discussion ensued.


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An error by county staff caused his candidacy information to be omitted from the 2016 Voter’s Guide. He noted that, although, he was running un-opposed he wanted to clarify that the required candidacy documentation was properly filed.

CLAIMS Mr. Nies reported there were no claims to report. GENERAL MANAGER’S REPORT Mr. Nies reported that: He attended a cyber-security training provided by Energy Northwest and noted that the

main message was providing good training for employees to avoid intentional or accidental compromises.

He and other District staff attended a CWPU meeting and noted that an agreement in principle was reached with the local union. He noted that the proposal has been put out to ballot to the represented group and votes will be counted on November 2.

He attended the PPC and PNUCC monthly meetings and provided a summary of topics discussed.

There has been an increase in requests for information on new large load customers from various sources. He noted that this is a subject that will be discussed at the WPUDA Managers Meeting. He reported that the current rate schedule for these types of loads is not based on capacity and that staff will research this further. The Commission reported that these loads impact all customers and research or analysis done should be brought to a future Commission for review and discussion.

The following 2016-17 Operating Plan goals have been completed since the last formal update provided in July:

o 3B – Review rating agency requirements and meet with bond rating agencies and evaluate bond refunding/sale opportunities and execute if favorable.

The Commission requested staff provide a list of capital projects to be funded with bond proceeds.

o 4A – Develop and approve Customer Privacy Policy and Procedure consistent with current legislations.

o 4B - Review and update the Rules and Regulations for Electric Service. o 5B – Develop a facilities plan to address District growth. o 5C - Explore and assess options for storage of physical records.

Additionally, Mr. Nies provided a brief update on: o 3C- Present a District wide Enterprise Risk Model (ERM) and initiate

implementation. He noted that staff presented the ERM model, upper management is taking the ERM training, and that staff will bring for Commission approval in December. He reported that the goal should be completed by the next formal update.

EVITA will issue the Request for Information (RFI) proposal for the installation of electric vehicle charging stations this week. He noted that the current ILA may potentially be amended to include Energy Northwest as a collaborator.


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Staff is working with a facilitator to provide additional team building workshops for upper management.

He met with Mr. Brent Ridge from Energy Northwest to discuss the Employee Excellence Model. He noted that staff is working on the specifics of what the purpose and goal of the model should be.

In past years, management has hosted a Christmas breakfast for employees. He noted that management wants to increase employee participation and is proposing a lunch. He noted that the lunch is tentatively set for December 6 at the operations site. He reported that the Commission will be notified as the details are finalized.

For his audit he reported that a query was run to find how many residential customers have multiple meters at the same location. He reported that there are roughly 300 customers and noted that this was less than 2% of the residential customers. The Commission requested that the research and information that has been completed by staff regarding the impact of the District’s current residential Basic Charge on low income/low usage customers and residential customers with multiple meters be provided to the Commission for review and discussion. Staff reported they will bring the information to the Commission in advance of the RAC meeting.

The non-bargaining group requested alternate work schedules. Mr. Nies reported that he is researching the impact on employees and customers, coverage issues, and additional costs incurred before any decision is made. He noted that offering alternate work schedules would have to demonstrate a benefit to District customers and at no additional costs. Discussion ensued.

Mr. Nies reported on behalf of Mr. Palmer that: Staff researched the information provided in a Franklin County Graphic article that

indicated the recent fire in the Kahlotus area was caused by a BPA contractor. Mr. Nies noted that this was not the same fire that had caused the outage reported in August.

Mr. Palmer will provide the scrap value of the Pasco CT at the November meeting.

STAFF REPORTS Mr. Scarano reported that: The meeting packet included the operating budget status, capital, and broadband

reports for the month of September. He reviewed the reports noting the highlights of each report. The Commission requested that future reports include the “bond fund balance” in the ending reserves.

He attended the WPUDA Finance Officer meeting. The Broadband department is in the process of installing the MPLS equipment

purchased last year. The Payment Industry Card (PCI) self-assessment was successfully completed and

passed largely due to the IT departments efforts. The NISC conversion is on schedule. The Accounting department is finalizing the required documentation for the recent

bond issue.


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The Customer Service department received over 5,800 customer calls last month, IT department closed over 135 tickets, and provided the key indicators for the other Administrative Services departments. The Commission requested Mr. Scarano provide his departments key indicators as part of the board packet every month.

The Commission had requested to see the proposed 2017 Capital Budget with the dollars associated to the percentages and he provided the information. Mr. Scarano reported that the change in methodology used for labor dollars in 2017 Operating budget was due to how personal leave was accounted for.

In follow up to the Commission’s request, he will provide more information on adjustments made to customer accounts once he completes his analysis of the data.

For his audit, he reported that surprise cash drawer counts are done for Customer Service Cashiers. He noted that seven surprise cash drawer counts have been completed in the last six months and noted there were no discrepancies.

Ms. Dohrman reported that: The District crossed the 25,000 customer threshold in October and noted that staff

completed the required notification to the Department of Commerce. Discussion ensued.

Selected members of the Low Carbon Prosperity group met at the first of the month to review draft language for a proposed re-write of Initiative 937. She noted the draft language replaces the existing threshold targets and focuses on all new load growth being met by a broader definition of clean energy.

Energy Services staff will provide a winter weatherization workshop for District customers on November 15.

The meeting packet included the September monthly power management report. She reviewed the monthly run-off, temperatures, pricing and load vs. resources information for the month, as well as the Key Performance Indicators. She reviewed the types, quantity, and dollars associated with conservation rebates completed in August.

For her audit, she reported that she included the September 2016 information in the comparison for the Frederickson CT net costs to market purchases YTD and compared it to 2015.

Ms. Locke reported that: There have been 26 staffing changes since January 2016 and provided a summary

sheet of the current job openings, positions posted, and filled YTD. The District’s benefits open enrollment meetings are scheduled for this week and

provided the benefit packet information to the Commission. Staff partnered with Benton PUD to facilitate health screenings and flu shots for

employees. She attended the labor management meeting on October 17 and noted that a new

business agent has been assigned to the District. She reported on the discussions from the meeting.

She attended NWPPA’s Labor and Employee Relations Group Annual meeting and provided a summary of topics discussed.


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Mr. Rob Richmond and she are co-chairing the United Way Campaign for the District. She provided the campaign’s goal and other details on upcoming meetings. She noted that participation was voluntary.

The list of policies and procedures included the Public Participation at Commission Meetings approved today, and the Customer Privacy Policy approved last month. She reviewed the current status and progress of the other policies.

For her audit, she reported that she continues to review the wellness checks for vision and dental for employees that qualifies the employee for HRA/VEBA 2017 wellness event.

Commissioner Wright called on Mr. Offerdahl for comment. Mr. Offerdahl provided an update on current capital projects being worked on by the engineering staff and the District’s SCADA system.

MEETING ADJOURNED With no further business to come before the Commission, Commissioner Wright adjourned the meeting at 3:44 p.m. The District’s next regular meeting will be November 8, 2016 at 1 p.m. at the District’s Auditorium.

________________________________

Roger Wright, President ________________________________ William Gordon, Vice President ________________________________ Stuart Nelson, Secretary

Item Check # Vendor # Payee Date Amount Description1 26856 00087 ALTEC INDUSTRIES INC 10/13/2016 $5,365.36 WAREHOUSE MATERIALS & SUPPLIES2 26857 13380 ANIXTER INC 10/13/2016 $75,753.93 WAREHOUSE MATERIALS & SUPPLIES3 26858 09927 ARAMARK UNIFORM & CAREER APPAREL GRP INC 10/13/2016 $123.69 MATS AND COVERALLS4 26859 00179 BENTON FRANKLIN CAC 10/13/2016 $329.70 HELPING HANDS5 26860 04565 BIG BEND ELECTRIC COOPERATIVE INC 10/13/2016 $62.88 UTILITY SERVICES6 26861 13079 CANON SOLUTIONS AMERICA INC 10/13/2016 $842.18 HARD/SOFTWARE MAINTENANCE7 26862 00515 CONSOLIDATED ELECTRICAL DIST INC 10/13/2016 $2,913.04 WAREHOUSE MATERIALS & SUPPLIES8 26863 00354 CITY OF CONNELL 10/13/2016 $70.73 UTILITY SERVICES9 26864 12961 CITY OF RICHLAND 10/13/2016 $270.00 FIBER LEASE10 26865 12903 CITY OF RICHLAND 10/13/2016 $135.36 FIBER SERVICES11 26866 02334 DATABAR INC 10/13/2016 $100.00 MAILING SERVICES12 26867 13232 DIVERSIFIED INSPECTIONS/ ITL INC 10/13/2016 $6,115.00 TRUCK INSPECTIONS13 26868 13464 ENGLISH HAY COMPANY INC 10/13/2016 $7,951.00 ENERGY SERVICES14 26869 12862 ELECTRIC RESEARCH & MANUFACTURING 10/13/2016 $80,738.67 WAREHOUSE MATERIALS & SUPPLIES15 26870 00197 FEDERAL EXPRESS CORPORATION 10/13/2016 $7.51 FEDEX16 26871 03040 FIRE PROTECTION SPECIALISTS LLC 10/13/2016 $647.81 PROFESSIONAL SERVICES17 26872 00206 KATHERAN L VALDEZ 10/13/2016 $55.80 FRANKLIN COUNTY GRAPHIC - ADVERTISING18 26873 03509 FRANKLIN COUNTY INFO SERVICES 10/13/2016 $37.74 INTERNET CONNECTION-FRIS19 26874 07290 FRANKLIN PUD 10/13/2016 $191.90 REIMBURSEMENT FROM EMPLOYEE20 26875 00216 GENERAL PACIFIC INC 10/13/2016 $1,737.60 WAREHOUSE MATERIALS & SUPPLIES21 26876 13640 MENDENHALL RESTAURANTS LLC 10/13/2016 $710.00 ENERGY SERVICES22 26877 00622 IWI INSULATION INC 10/13/2016 $31.50 ENERGY SERVICES23 26878 03554 JACOBS & RHODES INC 10/13/2016 $800.00 ENERGY SERVICES24 26879 13350 KEVIN E WRIGHT 10/13/2016 $1,308.96 SOLAR PRODUCTION CREDIT25 26880 00321 M CAMPBELL & COMPANY INC 10/13/2016 $2,000.00 ENERGY SERVICES26 26881 13244 CURVATURE LLC 10/13/2016 $5,821.50 NETWORK HARDWARE27 26882 00452 ORKIN EXTERMINATING INC 10/13/2016 $205.42 PEST CONTROL28 26883 00392 OTIS ELEVATOR CO INC 10/13/2016 $482.80 ELEVATOR MAINTENANCE29 26884 00426 POWER CITY ELECTRIC INC 10/13/2016 $133,705.37 PROJECT WORK30 26885 13445 RELIABLE EQUIPMENT & SERVICE COMPANY, INC 10/13/2016 $1,168.05 OPERATING SUPPLIES31 26886 07211 RESER'S FINE FOODS INC 10/13/2016 $3,004.40 ENERGY SERVICES32 26887 13208 TRICOMP INC DBA SENIOR TIMES 10/13/2016 $375.00 ADVERTISING33 26888 00826 SMITH INSULATION INC 10/13/2016 $692.64 ENERGY SERVICES34 26889 00195 STAPLES CONTRACT & COMMERCIAL INC 10/13/2016 $753.67 OFFICE SUPPLIES35 26890 11533 STRATTON SURVEYING & MAPPING PC 10/13/2016 $570.00 PROFESSIONAL SERVICES36 26891 00478 THE MCCLATCHY COMPANY 10/13/2016 $516.74 ADVERTISING37 26892 11471 VERIZON WIRELESS SERVICES LLC 10/13/2016 $841.24 METER READING & PHONE SERVICES

Public Utility District No. 1 of Franklin County

Warrant Register - November 08, 2016 Commission Meeting

Revised 11.01.16 11.08.16 Commission Meeting Page 1 of 4

Item Check # Vendor # Payee Date Amount Description



38 26893 13373 VISIONARY COMMUNICATIONS INC 10/13/2016 $402.09 FIBER SERVICES39 26894 00285 WA STATE SUPPORT REGISTRY 10/13/2016 $219.34 SUPPORT PAYMENT40 26895 13571 YOKES FOODS INC 10/13/2016 $14,132.00 ENERGY SERVICES41 26924 12956 ABM JANITORIAL SERVICES 10/20/2016 $2,590.09 JANITORIAL SERVICE42 26925 13380 ANIXTER INC 10/20/2016 $87,230.78 WAREHOUSE MATERIALS & SUPPLIES43 26926 09927 ARAMARK UNIFORM & CAREER APPAREL GRP INC 10/20/2016 $123.69 MATS AND COVERALLS44 26927 00171 BASIN DISPOSAL INC 10/20/2016 $1,105.56 UTILITY SERVICES45 26928 00174 COLUMBIA BASIN LLC 10/20/2016 $29.31 UTILITY SERVICES46 26929 00179 BENTON FRANKLIN CAC 10/20/2016 $2,803.95 HELPING HANDS47 26930 13005 THE BERRY COMPANY LLC 10/20/2016 $82.25 ADVERTISING-YELLOW PAGES48 26931 04565 BIG BEND ELECTRIC COOPERATIVE INC 10/20/2016 $23,337.49 USE OF FACILITY CHARGES/ MUTUAL AID REIMBURSEMENT49 26932 00187 BOB RHODES HEATING & AIR COND INC 10/20/2016 $1,000.00 ENERGY SERVICES50 26933 11474 BRUCE INC 10/20/2016 $3,000.00 ENERGY SERVICES51 26934 10786 CCR TRI CITIES III LLC 10/20/2016 $1,324.80 ADVERTISING52 26935 13072 CDW LLC 10/20/2016 $630.12 HARD/SOFTWARE MAINTENANCE53 26936 12936 QWEST CORPORATION 10/20/2016 $1,649.39 PHONE SERVICES54 26937 12949 QWEST COMMUNICATIONS COMPANY LLC 10/20/2016 $206.51 PHONE SERVICES55 26938 13636 CITI CARDS 10/20/2016 $39.66 PURCHASING CARDS56 26939 00354 CITY OF CONNELL 10/20/2016 $93,859.48 UTILITY SERVICES57 26940 00358 CITY OF KAHLOTUS 10/20/2016 $1,658.35 OCCUPATION/UTILITY TAX58 26941 00362 CITY OF PASCO 10/20/2016 $367,057.35 OCCUPATION/UTILITY TAX59 26942 00360 CITY OF PASCO 10/20/2016 $448.08 UTILITY SERVICES60 26943 00387 COLUMBIA RURAL ELECTRIC ASSOC 10/20/2016 $57.95 UTILITY SERVICES61 26944 03560 CONAGRA FOODS LAMB WESTON INC 10/20/2016 $25,393.90 ENERGY SERVICES62 26945 00344 CONNELL GRANGE SUPPLY CO INC 10/20/2016 $87.23 OPERATING SUPPLIES63 26946 02334 DATABAR INC 10/20/2016 $8,269.12 MAILING SERVICES64 26947 00001 DAYCO INC 10/20/2016 $1,000.00 ENERGY SERVICES65 26948 01487 DELTA HEATING & COOLING INC 10/20/2016 $2,000.00 ENERGY SERVICES66 26949 13455 EATON CORPORATION 10/20/2016 $3,822.72 OPERATING SUPPLIES67 26950 00138 ELECTRICAL CONSULTANTS INC 10/20/2016 $5,779.58 PROFESSIONAL SERVICES68 26951 00443 FRANKLIN COUNTY 10/20/2016 $73.00 RECORDING FEES - DEEDS69 26952 03509 FRANKLIN COUNTY INFO SERVICES 10/20/2016 $37.74 INTERNET CONNECTION-FRIS70 26953 13270 GARDAWORLD 10/20/2016 $441.91 ARMORED CAR SERVICE71 26954 00321 M CAMPBELL & COMPANY INC 10/20/2016 $9,000.00 ENERGY SERVICES72 26955 00452 ORKIN EXTERMINATING INC 10/20/2016 $389.52 PEST CONTROL73 26956 00394 OXARC INC 10/20/2016 $51.02 NITROGEN74 26957 00638 PERFECTION GLASS INC 10/20/2016 $1,055.85 ENERGY SERVICES





75 26958 13438 PITNEY BOWES INC 10/20/2016 $1,000.00 MAIL MACHINE & POSTAGE76 26959 00405 LORI COMBS FOR PUD REVOLVING FUND 10/20/2016 $545.06 PETTY CASH77 26960 12377 SPX CORP 10/20/2016 $306.89 TOOL REPAIR78 26961 05424 RJM EQUIPMENT SALES. INC 10/20/2016 $5,920.87 WAREHOUSE MATERIALS & SUPPLIES79 26962 06825 SEBRIS BUSTO JAMES 10/20/2016 $9,548.00 CWPU EXPENSE80 26963 00195 STAPLES CONTRACT & COMMERCIAL INC 10/20/2016 $311.11 OFFICE SUPPLIES81 26964 01108 TOTAL ENERGY MANAGEMENT 10/20/2016 $2,200.00 ENERGY SERVICES82 26965 00283 NW ONE CALL SUBSURFACE WARNING SYSTEM 10/20/2016 $445.06 LOCATES83 26966 11471 VERIZON WIRELESS SERVICES LLC 10/20/2016 $217.41 METER READING & PHONE SERVICES84 26967 00290 WASHINGTON PUBLIC UTILITY DIST ASSOC 10/20/2016 $8,741.00 DUES & MEMBERSHIP85 26968 04325 WA STATE EMPLOYMENT SECURITY DEPT 10/20/2016 $4,648.00 UNEMPLOYEMENT ASSESSMENT86 26969 00242 WAGNER-SMITH COMPANY 10/20/2016 $160.63 TOOLS87 26970 04105 WATER SOLUTIONS INC 10/20/2016 $418.11 WATER COOLER RENTAL88 26971 13626 WATER STREET PUBLIC AFFAIRS LLC 10/20/2016 $3,000.00 CONSULTING SERVICES89 26972 00300 WELLS FARGO BANK, NA 10/20/2016 $133,513.19 INSURANCE PREMIUM

$1,167,802.35

90 EFT001319 00130 MOON SECURITY SERVICES INC 10/14/2016 $135.76 SECURITY MAINTENANCE91 EFT001320 00178 BENTON COUNTY PUD 10/14/2016 $4,749.90 WAREHOUSE MATERIALS & SUPPLIES92 EFT001321 00245 INTERNATIONAL BROTHERHOOD 10/14/2016 $5,223.14 DUES93 EFT001322 00277 UNITED WAY OF BENTON & FRANKLIN COUNTIES 10/14/2016 $655.99 UNITED WAY94 EFT001323 00303 WESCO DISTRIBUTION INC 10/14/2016 $450.69 WAREHOUSE MATERIALS & SUPPLIES95 EFT001324 00390 CULVER COMPANY LLC 10/14/2016 $1,312.67 ADVERTISING96 EFT001325 00448 LAWSON PRODUCTS INC 10/14/2016 $856.88 WAREHOUSE MATERIALS & SUPPLIES97 EFT001326 02263 TYNDALE COMPANY INC 10/14/2016 $579.71 FIRE SAFETY CLOTHING98 EFT001327 02533 THOMPSON COBURN LLP 10/14/2016 $833.92 PROFESSIONAL SERVICES99 EFT001328 02842 ENERGY NORTHWEST 10/14/2016 $217,174.88 PACKWOOD & NINE CANYON100 EFT001329 03316 A W REHN & ASSOCIATES INC 10/14/2016 $1,024.59 FLEX PLAN101 EFT001330 04189 H2 PRE-CAST INC 10/14/2016 $14,118.00 WAREHOUSE MATERIALS & SUPPLIES102 EFT001331 12722 VANTAGEPOINT TRANSFER AGENTS-457 10/14/2016 $13,689.73 DEFERRED COMPENSATION103 EFT001332 12723 VANTAGEPOINT TRANSFER AGENTS-401 10/14/2016 $12,328.78 DEFERRED COMPENSATION104 EFT001333 12724 A W REHN & ASSOCIATES INC 10/14/2016 $182.00 COBRA NOTIFICATION/FLEX FEE105 EFT001334 12913 COPIERS NORTHWEST INC 10/14/2016 $128.08 HARD/SOFTWARE MAINTENANCE106 EFT001335 12981 GREEN ENERGY TODAY LLC 10/14/2016 $45,988.13 ESQUATZEL DAM PROJECT107 EFT001336 13159 HERCULES INDUSTRIES INC 10/14/2016 $136.01 OPERATING SUPPLIES108 EFT001337 13294 PARAMOUNT COMMUNICATIONS 10/14/2016 $31,383.07 FIBER DOCK CREW

Warrant Total





109 EFT001338 13299 HRA VEBA TRUST 10/14/2016 $97,159.82 VEBA110 EFT001339 01254 POWER MONITORS INC 10/14/2016 $330.75 HARD/SOFTWARE MAINTENANCE111 EFT001340 025 TODD D BLACKMAN 10/14/2016 $774.58 EMPLOYEE REIMBURSEMENT112 EFT001341 069 LINDA R ESPARZA 10/14/2016 $176.75 EMPLOYEE REIMBURSEMENT113 EFT001342 070 TIMOTHY M NIES 10/14/2016 $505.47 EMPLOYEE REIMBURSEMENT114 EFT001343 093 STUART J NELSON 10/14/2016 $296.11 EMPLOYEE REIMBURSEMENT115 EFT001344 150 VICTOR SCARANO 10/14/2016 $1,390.88 EMPLOYEE REIMBURSEMENT116 EFT001345 12824 DAVEY'S TREE INC 10/17/2016 $13,676.70 TREE TRIMMING117 EFT001346 00178 BENTON COUNTY PUD 10/21/2016 $18,011.67 MUTUAL AID REIMBURSEMENT118 EFT001347 00303 WESCO DISTRIBUTION INC 10/21/2016 $1,416.14 WAREHOUSE MATERIALS & SUPPLIES119 EFT001348 02361 UNUM LIFE INSURANCE CO OF AMERICA 10/21/2016 $8,856.86 INSURANCE PREMIUM120 EFT001349 13226 WALKER AND ASSOCIATES, INC. 10/21/2016 $5,136.92 WAREHOUSE MATERIALS & SUPPLIES121 EFT001350 13227 TTB, LLC 10/21/2016 $118.00 VEHICLE WASHES122 EFT001351 13463 EPICOR SOFTWARE CORPORATION 10/21/2016 $2,406.25 HUMAN RESOURCES SOFTWARE123 EFT001352 13168 PORTLAND GENERAL ELECTRIC COMPANY 10/21/2016 $5,358.24 COB INTERTIE124 EFT001353 05132 TRI CITIES SUNRISE ROTARY CLUB 10/21/2016 $201.00 DUES & MEMBERSHIP125 EFT001354 140 CARRIE ANN LOCKE 10/21/2016 $759.87 EMPLOYEE REIMBURSEMENT126 EFT001355 150 VICTOR SCARANO 10/21/2016 $346.09 EMPLOYEE REIMBURSEMENT127 EFT001356 154 HOLLY DOHRMAN 10/21/2016 $738.13 EMPLOYEE REIMBURSEMENT

$508,612.16

Date Amount Description10/12/2016 $2,539.95 REFUNDS10/19/2016 $4,421.58 REFUNDS

$6,961.53

$1,683,376.04

Refund Total

Grand Total

Check # Payee26833 - 26855 VARIOUS CUSTOMERS26896 - 26923 VARIOUS CUSTOMERS

EFT Total


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AGENDA ITEM 5

FRANKLIN PUD: AGENDA ITEM SUMMARY

Presenter: Victor Scarano, Director of Administrative Services Date: 11/08/2016

REPORT DISCUSSION ACTION REQUIRED 1. OBJECTIVE:

Re-opening the 2017 Budgets Public Hearing, Presenting Updated Preliminary 2017 Operating and Capital Budgets and Recessing the Public Hearing.

2. BACKGROUND: On September 27, 2016, the Commission President opened, and after the presentation of the preliminary budgets, and a discussion and comment period, recessed the 2017 Operating and Capital Budgets public hearing to October 25, 2016.

On October 25, 2016, the Commission President re-opened, and after the presentation of the preliminary budgets, discussion and comment period, staff addressed questions. The Commission then recessed the 2017 Operating and Capital Budgets hearing to the November Commission meeting. Proposed changes since the last Commission meeting are noted on the 2017 Operating and Capital Budgets Crosswalks, Attachments A and B, for Commissioner review. Staff will review the changes and address questions from the Commission. Staff recommends that after hearing any public comment, and after Commissioner review and discussion, the Commission recess the public hearing to the December 13, 2016 Commission meeting.

3. SUGGESTED MOTION:

I move to recess the 2017 Operating and Capital Budgets hearing until the December 13, 2016 Commission meeting.

Increase %September October * November * (Decrease) Change

1 Revenues:2 Retail Energy Sales:3 Residential $33,536,829 $33,536,829 $33,536,829 $0 0%4 Small General 8,649,457 8,649,457 8,649,457 0 0%5 Medium General 8,295,915 8,295,915 8,295,915 0 0%6 Large General 11,695,882 11,695,882 11,695,882 0 0%7 Industrial 10,674,169 10,674,169 10,674,169 0 0%8 Small Irrigation 4,663,365 4,663,365 4,663,365 0 0%9 Large Irrigation 3,823,724 3,823,724 3,823,724 0 0%

10 Street Lighting 358,291 358,291 358,291 0 0%11 Security Lighting 98,704 98,704 98,704 0 0%12 Total Retail Energy Sales 81,796,336 81,796,336 81,796,336 0 0%1314 Broadband Revenues 1,410,449 1,410,449 1,410,449 0 0%15 Other Operating Revenues 568,592 568,592 568,592 0 0%16 Gas & Transmission Sales 306,552 306,552 306,552 0 0%17 Sales for Resale 6,572,657 6,572,657 6,572,657 0 0%18 Total Operating Revenues 90,654,586 90,654,586 90,654,586 0 0%1920 Other Revenues 2,086,810 2,102,410 a 2,102,410 0 0%21 Total Revenues 92,741,396 92,756,996 92,756,996 0 0%2223 Operating Expenses:24 Power Supply:25 Purchased Power/BPA 37,264,354 37,264,354 37,264,354 0 0%26 BPA Funded Conservation 1,400,000 1,400,000 1,400,000 0 0%27 Utility Funded Conservation 250,000 250,000 250,000 0 0%28 BPA Conservation Reimbursement (1,400,000) (1,400,000) (1,400,000) 0 0%29 Residential Exchange Credit (1,120,567) (1,120,567) (1,120,567) 0 0%30 Market Related Power Purchases 3,982,563 3,982,563 d 3,982,563 0 0%31 Frederickson CT 6,303,982 6,303,982 6,303,982 0 0%32 Renewables 5,212,554 5,212,554 5,212,554 0 0%33 Transmission / Ancillary Services 6,594,588 6,594,588 6,594,588 0 0%34 Total Power Supply 58,487,474 58,487,474 58,487,474 0 0%35 Labor & Benefits 11,622,067 11,622,067 11,622,067 0 0%36 Supplies 510,530 510,530 510,530 0 0%37 Outside Services 1,505,121 1,510,421 b 1,517,921 e 7,500 0%38 Other Charges 1,974,958 1,974,958 1,974,958 0 0%39 Taxes 4,773,193 4,773,193 4,773,193 0 0%40 Transportation 857,345 857,345 857,345 0 0%41 Total Non-Power Expenses 21,243,214 21,248,514 21,256,014 7,500 0%4243 Total Operating Expenses 79,730,688 79,735,988 79,743,488 7,500 0%4445 Net Revenues Available for Debt Service 13,010,708 13,021,008 13,013,508 (7,500) (0%)4647 Bond Interest 2,662,196 2,371,692 c 2,371,692 0 0%48 Bond Principal 3,051,667 3,220,000 c 3,220,000 0 0%49 Total Debt Service 5,713,863 5,591,692 5,591,692 0 0%5051 Net Revenues After Debt Service 7,296,845 7,429,316 7,421,816 (7,500) (0%)5253 Debt Service Coverage 2.28 2.33 2.33 (0.00) (0%)a: Increased to reflect earnings credit from the bank.b: Armored Car services included in bank fees in previous years, now billed seperately.c: Changes in bond interest and principal due to bond sale in September 2016.d: Change title from "Non-BPA Power Purchases" to "Market Related Power Purchases." e: Increased for off-site storage of physical records.

Public Utility District No. 1 of Franklin County 2017 Operating Budget Crosswalk

Attachment A, Agenda Item 5


September October NovemberIncrease

(Decrease)1 Broadband $1,055,000 $1,055,000 $1,055,000 $0 23 Building $365,000 $365,000 $365,000 $0 45 Information Handling $465,000 $465,000 $465,000 $0 67 Tools $61,000 $61,000 $61,000 $0 89 System Construction - New Customers $2,450,000 $2,450,000 $2,450,000 $0 1011 System Construction - Reliability & Overloads $5,535,000 $5,535,000 $5,535,000 $0 1213 Vehicles $504,000 $504,000 $504,000 $0 1415 Special Projects $100,000 $100,000 $100,000 $0 1617 Total $10,535,000 $10,535,000 $10,535,000 $0

Category

Public Utility District No. 1 of Franklin County2017 Capital Budget Crosswalk

Attachment B, Agenda Item 5


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AGENDA ITEM 6


Presenter: Holly Dohrman, Director of Power Management Date: 11/08/2016


Adopting a Resolution Authorizing the General Manager or his Designee to Use a Portion of the Net Proceeds from the Dissolved Rural Economic Development Program Funds to Pay Costs of a Qualifying Project and Superseding Resolution 1243.

2. BACKGROUND: At the initiation of the Community Solar Project the Commission approved, at the July 28, 2015 Commission meeting, a contribution from the Rural Economic Development fund (REDF) of approximately $155,000, which was estimated by the Bonneville Environmental Foundation. The bid submitted by A&R Solar (A&R), in November 2015, was considerably lower than estimated, due in part to allowing Grade B panels to be used. As a result, a formal request for a smaller REDF contribution of $75,000 was approved by the Commission through Resolution 1243. Soil testing performed prior to construction revealed soil conditions that made the use of spread footings necessary, which increased the A&R contract from $303,810 to $348,733, which was still $40,000 less than the next highest bid. Two additional small change orders increased A&R’s total contract to $353,986 (before sales tax). The total project costs to date, including sales tax and a reserve for future insurance and maintenance, is $478,995.16, which is $134,000.00 more than the amount collected from participants ($345,000) and higher than the $75,000 approved in Resolution 1243. The amount the District will receive from the 75% sales tax refund provided for in RCW 82.08.962 on “machinery and equipment used directly in generating electricity or producing thermal heat using qualified renewable energy sources” has not been confirmed. Staff believes the refund will be approximately $21,000, which would reduce the REDF contribution to approximately $113,000.

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In September 2016, the Commission authorized staff to dissolve the REDF. At this time there is a net balance of $262,026.52 in the dissolved REDF program fund that is available for granting to a qualifying project such as the District’s Community Solar Project. The exact amount of the 75% sales tax refund will not be known until the State Department of Revenue (DOR) approves the District’s application. The DOR application cannot be submitted until all project disbursements, including A&R’s retention, have been made. The retention cannot be paid until a release has been received from the Employment Security Department (ESD). That is not expected to occur until January 2017 because ESD is now only approving Notices of Completion quarterly. Staff recommends the Commission adopt Resolution 1266 authorizing the use of a portion of the net proceeds from the District’s dissolved Rural Economic Development Program Funds for a qualifying project in an amount not to exceed $134,000.00, less the sales tax refund to be paid by the State of Washington and supersede Resolution 1243.

3. SUGGESTED MOTION: I move to adopt Resolution 1266 as presented.

RES 1266, Page 1 of 2

RESOLUTION 1266

A RESOLUTION OF THE BOARD OF COMMISSIONERS OF PUBLIC UTILITY DISTRICT NO. 1 OF FRANKLIN COUNTY

AUTHORIZING THE GENERAL MANAGER OR HIS DESIGNEE TO USE A PORTION

OF THE NET PROCEEDS FROM THE DISSOLVED RURAL ECONOMIC DEVELOMENT PROGRAM FUNDS TO PAY COSTS OF A QUALIFYING PROJECT

AND SUPERSEDING RESOLUTION 1243

WHEREAS, the Washington state legislature passed Engrossed Substitute

House Bill 2260 (ESHB 2260) during its 1999 regular session which, among other

things, authorized electric utilities in rural counties to offset public utility tax to help

establish revolving fund programs to be used for economic development and job

creation; and

WHEREAS, qualifying projects defined in ESHB 2260, per RCW 82.16.0491,

include renewable energy development; and

WHEREAS, the Board of Commissioners (the Commission) of Public Utility

District No. 1 of Franklin County (the District) authorized the establishment of a Rural

Economic Development Fund by motion on July 11, 2000; and

WHEREAS, the District has constructed a solar parking canopy at its

administrative office located at 1411 W. Clark Street in Pasco, which is a utility-owned

community solar project (the canopy) as defined in RCW 82.16.110(2)(a)(ii); and

WHEREAS, the canopy was funded in part by participants who are District

customers; and

WHEREAS, on December 8, 2015 by Resolution 1243, the Commission

determined that the canopy is a qualifying project as defined in RCW 82.16.0491(a)(ii)

and authorized the use of up to $75,000 of the District’s Rural Economic Development

Fund for the cost of the canopy not funded by customer participants; and

RES 1266, Page 2 of 2

WHEREAS, unforeseen circumstances resulted in the cost of the canopy being

higher than estimated in December 2015; and

WHEREAS, at the September 27, 2016 regular meeting the Commission

authorized staff to dissolve the District’s Rural Economic Development Fund, now

therefore

BE IT RESOLVED the Commission finds the canopy to be a qualifying project as

defined in RCW 82.16.0491(a)(ii); and,

BE IT FURTHER RESOLVED that the General Manager or his designee is

authorized to use a portion of the net proceeds from the District’s dissolved Rural

Economic Development Program Funds for the cost of the canopy not funded by

customer participants in the amount of $134,000.00, less the amount of a 75% sales tax

refund from the State of Washington as provided in RCW 82.08.962; and

BE IT FURTHER RESOLVED that Resolution 1243 is superseded.

ADOPTED by the Board of Commissioners of Public Utility District No. 1 of

Franklin County, Washington at an open public meeting this 8th day of November, 2016.

_____________________________ Roger Wright, President

_____________________________ William Gordon, Vice President

_____________________________ Stuart Nelson, Secretary

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AGENDA ITEM 7


PRESENTER: Tim Nies, General Manager DATE: 11/08/16

REPORT DISCUSSION ACTION REQUIRED

1. OBJECTIVE: Approving the 2017 Organization Representation List.

2. BACKGROUND: At the end of each year, the Commission approves the appointment of Commissioners and staff to represent the District on external organizations’ boards and committees for the coming calendar year. Attachment A is the current Organization Representation List which has been redlined to show the proposed changes for 2017. Staff recommends the Commission approve the Organization Representation List for 2017 with the changes shown on Attachment A.


I move to approve the 2017 Organization Representation List as presented.


Revised 11.02.16 Page 1 of 1

20176 Organization Representation List

Organization Delegate Alternate

American Public Power Association

Legislative & Resolutions Committee B. Gordon

Policy Makers Council (PCM) B. Gordon

S. Nelson

Conservation and Renewable Energy Systems (CARES) S. Palmer T. Nies

Columbia REA R. Wright J. Grad

Columbia-Snake River Irrigators (CSRIA) R. Wright R. Sargent

Energy Northwest (ENW)

Board of Directors B. Gordon S. Nelson

Participant’s Review Board (PRB) S. Nelson

NoaNet

Board Member R. Wright B. Hooper

Member Representative B. Hooper V. Scarano

Pacific Northwest Waterways Association (PNWA) D. Bone-Harris R. Wright

Public Power Council (PPC)

Executive Committee T. Nies

Northwest Public Power Association (NWPPA)

Board of Directors S. Nelson D. Bone-Harris

Government Relations Committee D. Bone-Harris

Accounting & Finance Committee V. Scarano

WPUDA

Board of Directors S. Nelson R. Wright

Managers Committee T. Nies S. Palmer

Government Relations/Communications Committee D. Bone-Harris

Energy Committee T. Nies S. Nelson

Telecommunications Committee R. Wright V. Scarano

Finance and Audit Committee V. Scarano

Budget Committee – The Committee is inactive at this time and participation is appointed by WPUDA.

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AGENDA ITEM 8


Presenter: Tim Nies, General Manager Date: 11/8/2016


Appointing the 2017 Board of Commission Officers.

2. BACKGROUND: Pursuant to RCW 54.12.090, at the end of each year, the Board of Commissioners appoints new officers for the coming calendar year. The 2016 Commission Officers are Roger Wright, President; Bill Gordon, Vice President; and Stu Nelson, Secretary. Staff recommends that the Commission appoint new Commission Officers for 2017 according to the customary rotation. The appointment for 2017 Commission Officers would be: Bill Gordon, President; Stu Nelson, Vice President; and Roger Wright, Secretary.


I move to appoint the District Commission Officers for 2017, effective January 1, 2017, as follows: Bill Gordon, President; Stu Nelson, Vice President; and Roger Wright, Secretary.

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AGENDA ITEM 9


Presenter: Tim Nies, General Manager Meeting Date: 11/8/2016


Approving the 2017 Regular Commission Meeting Schedule.

2. BACKGROUND: At the end of each year the Commission approves the regular monthly meeting schedule for the following calendar year. The schedule sets meetings in accordance with the District’s adopted Organizational Statement, for 1:00 p.m. on the second and fourth Tuesdays of each month in the Auditorium at the Pasco administration office, 1411 West Clark Street. As a matter of practice, throughout the year, the Commission will meet on the fourth Tuesday of every month and only on the second Tuesday of the month if there is business to transact. However, in November and December of 2017, the Commission will meet on the second Tuesday, and only meet on the fourth Tuesdays if there is business to transact. Staff recommends that the Commission approve Attachment A, the proposed 2017 Regular Commission meeting schedule.

3. SUGGESTED MOTION: I move to approve the 2017 Regular Commission meeting schedule as presented.


Month Regular Regular, If Needed

1 January 1/24/2017 1/10/2017

2 February 2/28/2017 2/14/2017

3 March 3/28/2017 3/14/2017

4 April 4/25/2017 4/11/2017

5 May 5/23/2017 5/9/2017

6 June 6/27/2017 6/13/2017

7 July 7/25/2017 7/11/2017

8 August 8/22/2017 8/8/2017

9 September 9/26/2017 9/12/2017

10 October 10/24/2017 10/10/2017

11 November 11/14/2017 11/28/2017

12 December 12/12/2017 12/26/2017

2017 Commission Meeting Dates

These meetings are open to the public. Public attending these meetings are requested to adhere to the District's Public Participation at Commission Meetings Policy. The Policy is available at www.franklinpud.com.


Revised 10.24.16 1 of 1

Public Utility District No. 1 of Franklin County AGENDA ITEMS PROPOSED FOR FUTURE COMMISSION MEETINGS

Revised 10.19.16 Page 1 of 1

December 13, 2016

Regular Commission Meeting Description: Presenter

1. Re-opening the 2017 Budgets Public Hearing, Presenting Final 2017 Operating and Capital Budgets, Closing the Public Hearing and Adopting a Resolution Approving the 2017 Operating and Capital Budgets ................................................................Scarano

2. Authorizing the General Manager or his Designee to Execute a Contract for Tree Trimming Services for Broadband ...........................................................................Scarano

3. Authorizing the General Manager or his Designee to Execute a Change Order for Contract 8927, Construction Services for the Completion of the Blanton Road Extension Build Out Project ..............................................................................................................Scarano

4. Authorizing the General Manager or his Designee to Execute a Contract Extension with Paramount Communications Inc., for Miscellaneous Fiber Dock Crew Projects ..........................................................................................................Scarano

5. Approving a District Wide Enterprise Risk Management Model .............................Sams

6. Adopting a Resolution Approving the Pre-Qualification of Electrical Contractors for Calendar Year 2017 ................................................................................................Palmer

7. Authorizing the General Manager or his Designee to Execute a Task Order with The Energy Authority for 2017 Consulting Services ................................................Dohrman

‘ 8. Adopting a Resolution Authorizing the General Manager or his Designee to

Execute a 2017-2020 Collective Bargaining Agreement and Rescinding Resolution 1217 ....................................................................................Nies

9. Authorizing the General Manager or his Designee to Execute an Amended Interlocal Cooperative Agreement with Benton PUD and the City of Richland for the Study and Possible Installation of Electric Vehicle Charging Stations ...............Nies

January 2017 Regular Commission Meeting

Description: Presenter

1. Authorizing the General Manager or his Designee to Execute an Interlocal Cooperative Agreement Relating to Emergency Response ....................................Nies

agenda regular commission meeting · october 25, 2016; to resume at the cochrane substation located...

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