draft agenda - skagit pud homepage - skagit pud agenda... · self service upgrade paymentus ebill...

PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY COMMISSIONERS’ MEETING

DRAFT AGENDA September 26, 2017

4:30 PM

PLEDGE OF ALLEGIANCE

CONSENT AGENDA 1. Approval of Agenda 09/26/17 2. Approval of Minutes 09/19/17 3. Approval of Vouchers 09/26/17 4. Ratification of Vouchers 09/05; 09/19

AUDIENCE COMMENTS

OLD BUSINESS

5. Manager’s Report

NEW BUSINESS

6. IT Planning – Discussion

7. 2018 Budget – Financial Planning Debt Scenarios - Discussion

MISCELLANEOUS

COMMISSIONER COMMENTS

EXECUTIVE SESSION – Approximate Duration of 30-60 Minutes Per RCW 42.30.110(g)

ADJOURNMENT

JUDY RESERVOIR ELEVATION

Commission Meeting 1 September 19, 2017

MINUTES OF THE REGULAR MEETING OF THE COMMISSION PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY, WASHINGTON

September 19, 2017

The regular meeting of the Commission of Public Utility District No. 1 was held in the Aqua Room of the utility located at 1415 Freeway Drive, Mount Vernon, Washington, on September 19, 2017.

The meeting was called to order at 4:30 PM. Those Commissioners in attendance were: Robbie Robertson, President; Eron Berg, Vice President; and Al Littlefield Secretary. Also in attendance were: George Sidhu, General Manager; Sally Saxton, Finance Manager/Treasurer; Peter Gilbert, Attorney; and Catherine Price, Administrative Assistant; Audience: Judy Littlefield, Loren Tvedt. District Employees: Mike Fox, Kathy White, Gary Chrysler, Luis Gonzalez, Mark Semrau and Kurt VanBurkleo.

Commissioner Littlefield led the Pledge of Allegiance.

Commissioner Littlefield moved to approve the Consent Agenda for September 19, 2017: 1. Approval of Agenda 09/19/17 2. Approval of Minutes 09/12/17 3. Approval of Vouchers 09/19/17 4. Project Acceptance – Woodside Division 3, 4 & 5 (Mount Vernon) 5. Agreement for Professional Services-Accent Business Services, Inc. –

Enterprise Content Management Document Management, Imaging and Archiving Email Archiving and Management Digital Texting Management Systems

Commissioner Berg requested that item 5 be moved to new business. Commissioner Littlefield moved to approve the Consent Agenda as amended. The motion passed.

Under New Business:

5 Agreement for Professional Services-Accent Business Services, Inc. – Enterprise Content Management Document Management, Imaging and Archiving Email Archiving and Management Digital Texting Management Systems Manager Sidhu reviewed the agreement. He described the need for a firm to assess our document management system needs. A brief discussion ensued including the many benefits: document retrieval, enhancing security, auto-retention, searching for documents, public records requests, and more.

Commissioner Berg made a motion to table the agreement pending further discussions, more research and a presentation to the Commission.

The motion to table the agreement passed.

Audience Comments: None

Agenda Item #2


Under Old Business:

6. Manager’s Report - Manager Sidhu reported on the following items:

• The 2018 Budget Hearing is scheduled for Monday, October 2.

• A Work Session is scheduled after today’s meeting to discuss Fleet Management and Financing CIP options with regard to the 2018 Preliminary Budget.

• An open house of the District’s Division Street Tank and Booster Pump Station Project for neighboring property owners had a good turnout with positive feedback. DN Tanks is on site now and will be conducting a tour on Tuesday, October 3, details and invitations to come.

• I will be attending a telecommunication meeting on September 21 in Olympia.

• Commissioner Robertson would be attending the Skagit Watershed Council meeting on 09/21 from 11:30-2:00 PM.

Under New Business:

7. Resolution No. 2249-17 Granting the General Manager Authority to Enter into the Real Estate Purchase and Sale Agreement with Weyerhaeuser Company for Purchase of Property in the Cultus Mountain Watershed – Action

Manager Sidhu presented the purchase and sale agreement with a brief summary and requested authorization to sign said agreement.

Commissioner Berg moved to authorize the General Manager to sign Resolution No. 2249-17, granting the General Manager Authority to Enter into the Real Estate Purchase and Sale Agreement with Weyerhaeuser Company for Purchase of Property in the Cultus Mountain Watershed as presented.

The motion passed.

Commissioner Littlefield thanked Engineering Supervisor Trueman for his work on this project.

Under Commissioner Comments, Commissioner Littlefield reported on his recent attendance at the WPUDA meeting in Wenatchee.

Commissioner Berg apologized for not being more prepared for the meeting by thoroughly reviewing the packet in advance.

Commissioner Robertson reported on his recent attendance at the SCOG meeting in Lyman on September 20. He apologized for his tone at last week’s budget workshop.

At this time, President Robertson recessed the regular meeting to go into executive session per RCW 42.30.110(g) for an approximate duration of 15-30 minutes. The meeting was recessed at 5:06 PM.

President Robertson convened the executive session at 5:10 PM.

Agenda Item #2


President Robertson reconvened the regular meeting of the Commission at 5:45 PM.

Having no further business to come before the Board, Commissioner Littlefield moved for adjournment. The motion passed and the meeting of September 12, 2017 was adjourned at 5:52 PM. Respectfully submitted: Catherine Price, Administrative Assistant

Agenda Item #2

Agenda Item #6

9/25/17, 9:37:59 AM 1 of 13

Agenda Item #6

9/25/17, 9:37:59 AM 2 of 13

Agenda Item #6

StandaloneSystems

Y2KUpgrades

Orcom HandReceiptScanner

RadioReadTouchRead

CentralReceiptPrinter

ActiveSoftware

ProjectSoftware

LUDProgramStandalone

9/25/17, 9:37:59 AM 3 of 13

Agenda Item #6

StandaloneSystems


SkagitPUDWebsite

ArcGISStandalone

TokayStandalone

StreamsWebsite

FileServer(s)

OrcomAutomatedReceiptandCheckScanner

RadioReadAMR

WorkstationReceiptPrinters

ActiveSoftware

ProjectSoftware

9/25/17, 9:37:59 AM 4 of 13

Agenda Item #6

9/25/17, 9:37:59 AM 5 of 13

Agenda Item #6

StandaloneSystems


SkagitPUDWebsite

TokayStandalone

StreamsWebsite

FileServer(s)

ActiveSoftware

Interface

Interface

AutomatedReceiptand

CheckScanner

Cayenta

CognosReporting

Cityworks ArcGISInterface

CrystalReportsReporting

WorkOrderIntegration

NorthstarCIS

RadioReadAMRInterface

SubstantialCompletion

ApprovedSoftware

9/25/17, 9:37:59 AM 6 of 13

Agenda Item #6

9/25/17, 9:37:59 AM 7 of 13

Agenda Item #6

StandaloneSystems

WebsiteLink

PaymentusOnlineBillPay

IVR

GISAssetRefreshProcessInterface(InHouseDevelopmentbyVivian)

WOIntegration

Kaye-SmithBillPrinting,Notices,etc.(UploadData)

CayentaUpgrade

EmployeeSelfService

CognosCoreReportsUpgrade

InterfaceMigration


SkagitPUDWebsite

TokayStandalone

StreamsWebsite

FileServer(s)

MeetingRecordings

Interface

Interface

Interface

Interface

AutomaticBill

Scanning

NorthstarCIS

CityworksUpgrade

ArcGISUpgrade

CrystalReportsReporting

MigrateLegacyORCOMDatatoSQLServer

AS-400

ZENNERAMR

PilotProjectZennerCloudService

ZennerInterfaceProcessRadioRead

AMR

ActiveSoftware

ApprovedProjects

9/25/17, 9:37:59 AM 8 of 13

Agenda Item #6

StandaloneSystems

WebsiteLink

PaymentusOnlineBillPay

GISAssetRefreshProcessInterface(InHouseDevelopmentbyVivian)

Kaye-SmithBillPrinting,Notices,etc.(UploadData)


SkagitPUDWebsite

TokayStandalone

StreamsWebsite

FileServer(s)

MeetingRecordings

ZENNERAMR

PilotProjectZennerCloudService

ZennerInterfaceProcess

ActiveSystems

ApprovedProjects

9/25/17, 9:37:59 AM 9 of 13

Agenda Item #6

StandaloneSystems

PaymentusIVR

CayentaUpgrade

EmployeeSelfService

CognosCoreReportsUpgrade

InterfaceMigration


SkagitPUDWebsite

TokayStandalone

StreamsWebsite

FileServer(s)

MeetingRecordings

Interface CityworksUpgrade

ArcGISUpgrade

MigrateLegacyORCOMDatatoSQLServer

AS-400

ActiveSystems

ApprovedProjects

9/25/17, 9:37:59 AM 10 of 13

Agenda Item #6

StandaloneSystems

Interface

WebsiteLink

NorthstarCIS

LUDProgramming

CustomerConnect

Cayenta

(GLModel)

EmployeeSelfServiceUpgrade

PaymentuseBill

Cognos(CoreReports)

CityworksServiceOrderInterface

TokayServerwithCIS

Integration

UpgradeSchedulingCarryOverCompletionQ12018

ServiceOrderInterfaceTokayInterface

SkagitPUDWebsite

StreamsWebsite

FileServer(s)

MeetingRecordings

RadioReadAMR

SoftwareUpgrade

ActiveSystems

ApprovedProjects

ProposedProjects

MobileWorkOrdersMobileServiceOrdersMobileBackFlowManagement

MobileFireHydrantProgram

(withMVFD)

9/25/17, 9:37:59 AM 11 of 13

Agenda Item #6

Northstar

BillImageScanning

MeetingRecordings

MobileDeviceManagement

EmailServer

Texting

WebsitePublishedData

CayentaHumanResourcesEmployeeSelf

Service

CityworksArcGIS

OperationsandWTP

Finance

EngineeringandConstruction

Administration

Scanner

DigitalDocuments(FileServers)

EnterpriseContent

Management

DocumentManagement

ActiveSystems

ApprovedProjects

ProposedProjects

9/25/17, 9:37:59 AM 12 of 13

Agenda Item #6

Major Minor

Tools

MinorSoftware

Infrastructure

(NotReplacements)

CIS

2-4YearsFeatureDependent

ReportingSystems

2-4Years

CoreFinancialsandRelatedSoftware

2-4YearsFeatureDependent

MobileDeviceManagement

AsNeeded

EmailServerAsNeeded2-3Years

CellPhonePlanReview

Annually

Website***

NeedsAttention

HumanResourcesEmployeeSelf

Service2-4Years

FeatureDependent

CityworksArcGIS2-4Years

EnterpriseContentManagement

DocumentManagement2-4Years

CoreServerReplacements

7Years

CoreNetworkEquipment

Replacements7-10Years

NetworkSecurityAppliance

Replacements5-7Years

CoreStorageReplacements

7Years

TelephonyReplacements10Years

PC’s,Tablets,Laptops,CellPhones,3- 5Years

MajorTools7-15YearsOrAsNeeded

MinorToolsAsNeeded

MonitorsandLargeScreens

5Years

UPSHardware10Years3YearsonBatteries

BuildingCabling

+/- 20Years

FiberCabling50+Years

OnlineBillPaymentBillOutsourcing

eBill,IVRCloudServicesVendorManaged

MicrosoftOffice7Years

(Shouldbe5)

AutoCAD2Years

ArcGISDesktopSoftware2-Years

InfoWater2Years

TelephoneReplacements10Years

SCADAHMI

2-4Years

AccessControl

2-4Years

SecuritySystemSoftware

2-4Years

SecurityCamerasandSoftware

10Years

*MajorSoftwareUpgradesareconsideredonacasebycasebasesandaredrivenbynecessarybusinessprocessfeatures,technologyrequirements,orbyregulation.Theydon’t“wearout.”

9/25/17, 9:37:59 AM 13 of 13

Agenda Item #6

Agenda Item #7

Skagit PUD No. 1Capital Improvement Program Version: Preliminary Budget

Project Costs and O&M Impacts in Year: 2017 Constant Dollars

No. DescriptionTotal 2017‐27 (Constant $)

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

Department Capital:1 Finance 66,000$ 25,000$ 41,000$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ 2 Computer Software/ IT 5,588,000 529,000 559,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 3 Customer/ Meter 70,373 15,000 55,373 4 Equipment/Ops 4,144,500 526,000 1,118,500 600,000 400,000 600,000 150,000 150,000 150,000 150,000 150,000 150,000 5 Water Treatment Plant 7,303,000 1,984,000 819,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6 Engineering 2,274,000 254,000 220,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 7 Major Capital:8 Transmission Pipelines:9 Josh Wilson Road Improvements 65,000 65,000

10 Div St. Tank, Booster and N. 30th Piping 8,000,000 6,500,000 1,500,000 11 Transmission Line, Judy ‐ MV Phase 2 27,000,000 2,100,000 2,500,000 11,200,000 11,200,000 12 Judy SW Transmission Phase 2 6,100,000 1,000,000 5,100,000 13 Judy SW TransmissionPhase 3 17,200,000 1,300,000 1,700,000 13,200,000 1,000,000 14 Judy SW Transmission Phase 4 4,800,000 1,000,000 3,800,000 15 Pipelines:16 Burklund Road Pipeline 4,700,000 250,000 750,000 3,700,000 17 Conway I‐5 Crossing 1,200,000 200,000 1,000,000 18 McLean Road Pipeline 7,500,000 200,000 500,000 6,800,000 19 Best Road Pipeline 5,200,000 50,000 5,150,000 20 North Fork Skagit River Crossing 9,600,000 1,000,000 8,600,000 21 Fiber:22 Josh Wilson Fiber ‐ 23 Burlington Hill Fiber ‐ 24 PUD Campus Fiber from Burlington ‐ 25 Old 99 and Cook Rd. Fiber to Sedro Woolley ‐ 26 PUD Campus Fiber from 9th and Highland 100,000 30,000 70,000 27 Division St Fiber from 9th and Highland 100,000 30,000 70,000 28 Division St Fiber from Waugh Road Booster 40,000 20,000 20,000 29 Division St Fiber to Eagle's Nest 100,000 30,000 70,000 30 Cascade Ridge Fiber Segment 1 250,000 50,000 200,000 31 Cascade Ridge Fiber Segment 2 150,000 30,000 120,000 32 Cascade Ridge Fiber Segment 3 300,000 50,000 250,000 33 Cascade Ridge Fiber Segment 4 175,000 50,000 125,000 34 Duke's Hill Tank Fiber 175,000 50,000 125,000 35 Reservoirs:36 E Division Reservoir, Pump Station and Piping ‐ 37 Cascade Ridge Reservoir 50,000 50,000 38 Big Lake Reservoir 50,000 50,000 39 Pleasant Ridge Area Reservoir 100,000 100,000 40 N Sedro Woolley Reservoir 250,000 250,000 41 Burlington Reservoir ‐ 42 Mount Vernon‐County Reservoir ‐ 43 Land:44 Gilligan Creek Watershed Land Purchase 1,590,000 1,590,000 45 Operations and Maintenance:46 Cedar Hills Booster Pump ‐ 47 WTP Chemical Feed System Replacement 850,000 850,000 48 WTP Dry Scrubber Retrofit 450,000 450,000 49 Raw Water PS Pump Analysis (RH2) 200,000 125,000 75,000 50 Raw Water Pump Station Upgrade 3,800,000 100,000 1,500,000 1,200,000 1,000,000 51 Document Management Software 500,000 500,000 52 Badger ORION 5/8 Meter Transmitter Replace 2,500,000 2,500,000 53 Cayenta and City Works 240,000 180,000 60,000 54 Mandated by Other Agencies 4,110,000 600,000 810,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 55 Other:56 Mountain View Consolidation 1,500,000 300,000 1,200,000 55 Annual Pipe Replacement 45,000,000 3,500,000 3,500,000 3,500,000 4,000,000 4,000,000 4,000,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000

Total Capital Projects 173,390,873 19,223,000 20,107,873 20,760,000 22,480,000 14,645,000 13,175,000 11,650,000 19,350,000 10,650,000 14,750,000 6,600,000

Total from November 2016 Financial Plan 174,256,000 19,878,000 23,540,000 15,190,000 11,682,000 10,408,000 17,326,000 17,434,000 10,593,000 25,744,000 18,961,000 3,500,000 Increase/(Decrease) from November 2016 (8,168,127) (655,000) (3,432,127) 5,570,000 10,798,000 4,237,000 (4,151,000) (5,784,000) 8,757,000 (15,094,000) (4,211,000) 3,100,000

6‐Year Average Annual CIP 2017‐2022 11‐Year Average Annual CIP 2017‐2027Per November 2016 Financial Plan 16,337,333 Per November 2016 Financial Plan 15,841,455 Revised August 2017 18,398,479 Revised August 2017 15,762,807 Increase/(Decrease) from November 2016 2,061,146 Increase/(Decrease) from November 2016 (78,648)

Agenda Item #7

Skagit PUD No. 1Financial PlanScenarios Summary

Baseline Scenario: 8.5%/yr Tapering to 2%/yr by 2026 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total

2018-2027 Difference in Debt

Rate Increases 8.50% 8.50% 8.50% 8.00% 5.00% 5.00% 4.50% 4.00% 4.00% 2.00% 2.00% 64.83%Avg Monthly Bill 47.81$ 51.70$ 55.93$ 60.24$ 63.15$ 66.21$ 69.10$ 71.78$ 74.57$ 76.03$ 77.51$ Increase in Monthly Bill 3.89$ 4.22$ 4.31$ 2.91$ 3.06$ 2.89$ 2.68$ 2.79$ 1.45$ 1.48$

Debt Funding 4,200,000$ 10,192,500$ 13,500,000$ 15,000,000$ 7,000,000$ 5,500,000$ -$ 10,700,000$ -$ 5,500,000$ -$ 67,392,500$

Scenario 1 - Baseline with 15% Increase in 2018 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total



Debt Funding 4,200,000$ 10,192,500$ 10,500,000$ 13,200,000$ 6,300,000$ -$ -$ 5,900,000$ -$ -$ -$ 46,092,500$ (21,300,000)$

Scenario 2 - Baseline with 10% Increases in 2018 and 2019 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total



Debt Funding 4,200,000$ 10,192,500$ 12,300,000$ 14,200,000$ 5,900,000$ 3,100,000$ -$ 10,100,000$ -$ - - 55,792,500$ (11,600,000)$

Scenario 3 - Increases of 15%, 10%, 8%, 8%, 8%, then Baseline 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total



Debt Funding 4,200,000$ 10,192,500$ 10,100,000$ 12,800,000$ 3,000,000$ -$ -$ -$ -$ -$ -$ 36,092,500$ (31,300,000)$

Scenario 4 - Increases of 12%, 9%, 8%, 8%, 8%, then Baseline 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total



Debt Funding 4,200,000$ 10,192,500$ 11,650,000$ 13,900,000$ 5,400,000$ -$ -$ 3,500,000$ -$ -$ -$ 44,642,500$ (22,750,000)$

Scenario 5 - Increases of 9% for 5 Years, then Baseline Increases 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total



Debt Funding 4,200,000$ 10,192,500$ 13,000,000$ 14,500,000$ 6,150,000$ -$ -$ 4,100,000$ -$ -$ -$ 47,942,500$ (19,450,000)$

PREPARED BY FCS GROUP, INC.(425) 867-1802

ScenariosGS TEST Skagit Financial Plan Scenarios 9-11-2017.xlsx Page 1