MONTH IN REVIEW. For the reporting period of January 2019

Transcription

1 MONTH IN REVIEW For the reporting period of January 2019 Issued February 20, 2019

2 TABLE OF CONTENTS Executive Summary...3 Financial Viability...4 Overview... 4 Financial Performance... 5 Investment Performance... 9 Purchasing and Contracts Activities > $25, Payment Trends Water Supply Water Resource Adequacy Water Quality Customer Service Community Sustainability District Assets Infrastructure Stability Information Technology Risk Management Employee and Leadership Development Communications & Public Affairs Outreach & Engagement Stakeholder Support Appendix Investment Related Information Consultant Report CIP PROJECT DESCRIPTIONS ary Financial Statements OPEN CAPITAL PROJECTS REPORT TVWD Month in Review Page 2 January 2019

3 EXECUTIVE SUMMARY NOTABLE EVENTS FROM THE REPORTING PERIOD The District began calendar year 2019 with continued strong financial performance. For the biennium through January, cumulative water sales (both fixed and volume charges) revenue had a favorable variance of over $11.7 million. January s water sales resulted in a 10% favorable variance of $460,000. These strong water sales plus operating expenditures that were about $377,000 below plan in January contributed to an increase in the District s fund balances of approximately $2.1 million to $127.9 million. The District earned 2.30% on its investments in January and the projected yield on its portfolio increased to 2.37%, up 0.04% from the prior month. The Local Government Investment Pool (LGIP) earnings rate remained unchanged at 2.75% in January. The District completed the compliance process for residential backflow assembly testing in January to continue protecting public health and water quality. With this process, the District achieved a near 100-percent compliance rate for the 2018 reporting year. This was aided in large part from the District s new backflow tracking software and the increased success of the contract testing program. NOTABLE EXCEPTIONS IN REPORTING DATA Late payment reminder notices shot up by 5% but urgent notices remained relatively steady after the winter holidays. Shut offs also jumped to 4% of total bills issued. Customer Service continues to use phone and notifications for impending shut offs to help limit the shut off rate. KEY EVENTS TO ANTICIPATE IN THE NEAR FUTURE The District submitted its formal application for its Water Infrastructure Finance and Innovation Act (WIFIA) loan in early February. The EPA s WIFIA program will begin its review of the application and request additional information, as may be needed. In addition, the District completed its engagement with S&P Global Ratings to prepare an indicative rating as required by the WIFIA loan. Based on the plan of finance submitted to support the WIFIA loan, S&P indicated that it would expect the District s loan to receive an AA+ rating. Staff will continue to work with the District s investment advisor to monitor market conditions and the recent volatility that has affected the future direction of interest rates. With $8 million of the District s portfolio maturing during the remainder of the first quarter of 2019, along with a favorable LGIP yield of 2.75%, the District remains well positioned to take advantage of reinvestment opportunities. The roof is complete for the Grabhorn Reservoir Replacement project. DN Tanks will mobilize in February to perform final wire wrapping and shotcreting of the reservoir walls. Final roofing, HVAC, electrical, and mechanical piping work in the valve house are nearing completion. Construction of the off-site piping is also nearing completion. Work for on-site piping will be done in the coming months. TVWD Month in Review Page 3 January 2019

4 FINANCIAL VIABILITY OVERVIEW The District began calendar year 2019 with continued strong financial performance. Expenditures continued to be under budget while total resources exceeded budget. The District s water sales (both fixed and volume charges) in January resulted in a 10% favorable variance of $460,000. For the biennium through January, cumulative water sales revenue has a favorable variance of over $11.7 million. System development charge (SDC) revenue in January returned to favorable performance after unfavorable performance in December and November; SDC revenue in January was $617,000 during the month, providing a favorable variance of almost $177,000. On a biennium-to-date basis, SDC revenue has a favorable variance of almost $1.3 million. This swing in SDC revenue demonstrates the volatility of this revenue source. It is still too early to draw conclusions about the pace of future development and associated SDC revenue. Operating and capital expenditures for the month continue the trend of being lower than planned. Capital expenditures are expected to increase as the District moves toward the end of its biennium. Operating expenditures may also increase to reflect increases in the cost of general system maintenance, including responses to main breaks and other seasonal maintenance activities. The District submitted its formal application for its Water Infrastructure Finance and Innovation Act (WIFIA) loan in early February. The EPA s WIFIA program will begin its review of the application and request additional information, as may be needed. In addition, the District completed its engagement with S&P Global Ratings to prepare an indicative rating as required by the WIFIA loan. Based on the plan of finance submitted to support the WIFIA loan, S&P indicated that it would expect the District s loan to receive an AA+ rating. The District s investment portfolio decreased by $1.6 million in January. This decrease in the portfolio s value resulted from decreases in available cash, cash flow from operations and payments received from regional partners for the Willamette Water Supply System. The investment portfolio is valued at $127.2 million. TVWD Month in Review Page 4 January 2019

5 FINANCIAL PERFORMANCE OPERATING BUDGET VARIANCE & CASH POSITION (BIENNIUM ) Monthly Variance Cumulative Variance Millions $3.0 $2.5 Favorable Unfavorable Millions $25.0 $20.0 Favorable Unfavorable $2.0 $1.5 $1.0 $15.0 $10.0 $0.5 $5.0 $0.0 $0.0 Mar-19 Millions May-19 Mar-19 May-19 $140 $120 $100 $80 $60 $40 $20 Cash Position (by fund) General Fund Capital-Related Other COMMENTS: The District continued to experience strong financial performance in January on both revenues and expenditures. Water sales revenue (fixed and volume charges) were over $460,000 above plan. Operating expenditures were about $377,000 below plan. The District s fund balances increased by approximately $2.1 million to $127.9 million. $0 Mar-19 May-19 TVWD Month in Review Page 5 January 2019

6 GENERAL FUND OPERATING REVENUE VARIANCE REPORTING (BIENNIUM ) $140 Cumulative Revenues Actual $14.0 Cumulative Revenue Variance Favorable Unfavorable Millions $120 $100 Millions $12.0 $10.0 $80 $8.0 $60 $6.0 $40 $4.0 $20 $2.0 $- $0.0 Mar-19 Millions May-19 Mar-19 May-19 $2.0 $1.5 $1.0 $0.5 $0.0 -$0.5 -$1.0 -$1.5 -$2.0 Monthly Rate Revenue Variance (Volume + Fixed Charges) Favorable Unfavorable Mar-19 May-19 COMMENTS: Water sales in January (revenue from both fixed charges and volume charges) show a favorable variance of 10% or $460,000. On a biennium-to-date basis, the District has a favorable variance in water sales of 12% or over $11.7 million. Except for October 2018, the District has had a favorable water sales variance in each month of the biennium. These strong sales are contributing significantly to the District s strong financial performance. Volume Charges Variance Fixed Charges Variance Favorable Unfavorable Favorable Unfavorable Millions $2.0 $1.5 $1.0 $2.0 $1.5 $1.0 $0.5 $0.5 $0.0 $0.0 -$0.5 -$0.5 -$1.0 -$1.0 -$1.5 -$1.5 -$2.0 -$2.0 Mar-19 May-19 Mar-19 May-19 Millions TVWD Month in Review Page 6 January 2019

7 OPERATING EXPENDITURE VARIANCE REPORTING (BIENNIUM ) Cumulative Expenditures Cumulative Expenditure Variance Actual Favorable Unfavorable Millions $90 $80 $70 $60 $50 $40 $30 $20 $10 $- Mar-19 May-19 Millions $0.0 -$1.0 -$2.0 -$3.0 -$4.0 -$5.0 -$6.0 -$7.0 -$8.0 -$9.0 -$10.0 Mar-19 May-19 Millions $2.0 $1.5 $1.0 $0.5 $0.0 -$0.5 -$1.0 -$1.5 Monthly Expenditure Variance (Purchased Water & Power + Other Distrct Exp.) Favorable Unfavorable COMMENTS: Personnel Services were under budget in January by 18% and by 14% for the biennium-to-date. Materials and Services (M&S), excluding purchased water and pumping power, had a favorable variance of approximately $374,000. Purchased water had a small favorable variance of $3,000 for January. After the supplemental budget adopted by the Board in November, ROW Fees are in line with the budget. -$2.0 Millions Mar-19 May-19 $2.0 $1.5 $1.0 $0.5 $0.0 -$0.5 -$1.0 Purchased Water & Power Expenditure Variance Favorable Unfavorable Favorable Unfavorable $2.0 $1.5 $1.0 $0.5 $0.0 -$0.5 -$1.0 -$1.5 -$2.0 -$1.5 -$2.0 Mar-19 May-19 Mar-19 May-19 Millions Other District Expenditure Variance TVWD Month in Review Page 7 January 2019

8 CAPITAL-RELATED REVENUE AND EXPENDITURE VARIANCE (BIENNIUM ) Cumulative System Dev. Charge (SDC) Revenue Cumulative Capital Expenditure Millions $12 $10 $8 $6 Actual Millions $200 $175 $150 $125 $100 Actual $4 $2 $75 $50 $25 $0 $0 Mar-19 May-19 Mar-19 May-19 Monthly System Dev. Charge (SDC) Variance Cumulative Capital Expenditure Variance Thousands $1,000 $750 $500 $250 $0 -$250 -$500 -$750 Favorable Unfavorable Millions $0.0 -$10.0 -$20.0 -$30.0 -$40.0 -$50.0 -$60.0 -$70.0 Favorable Unfavorable -$1,000 -$80.0 Mar-19 May-19 Mar-19 May-19 COMMENTS: SDC revenue recovered in January with a favorable variance of $177,000; these results follow the decreased SDC revenue trend since November. The recovery of performance with SDC revenue in January demonstrates the volatility of SDC revenue. On a biennium-to-date basis, the District s SDC revenue has a favorable variance of over $1.3 million. The District continued to realize lower-than-planned capital expenditures in January. Through the end of January, the District has underspent its capital expenditures plan for the biennium by approximately $68.9 million. For the balance of the biennium, staff anticipates that capital expenditures for the WWSP and in- District projects (e.g., Grabhorn Reservoir Replacement Project) may bring expenditures closer to plan. Also, staff has started work on two urgent capital projects that are not in the current CIP; the Board was briefed on these important new projects at the work session on January 29, TVWD Month in Review Page 8 January 2019

9 INVESTMENT PERFORMANCE The District earned 2.30% on its investments in January, an increase of 0.06% from the prior month. The Local Government Investment Pool (LGIP) earnings rate remained unchanged at 2.75%. The District s projected yield on its portfolio increased to 2.37%, up 0.04% from the prior month. The District had one maturity on January 16, a $4 million Federal Home Loan Bank security, which was reinvested in the LGIP at the attractive yield of 2.75%. At its January 30 meeting, the Federal Open Market Committee (FOMC) moderated its stance on monetary policy and left its benchmark Federal Funds rate unchanged at 2.25% to 2.50%. This outcome was expected after the equity markets experienced a very difficult 4 th quarter of 2018, particularly during December. Interest rates dropped dramatically as investors sought safe havens in US government securities. The FOMC announced that further gradual increases in short-term interest rates are no longer necessary and that the Fed will be patient as it determines what future adjustments are needed. This move to patience has been interpreted by the financial markets as a pause in the steady increases in interest rates over the past few years, including four increases in the Federal Funds rate during Staff will continue to work with the District s investment advisor to monitor market conditions and the recent volatility that has affected the future direction of interest rates. With $8 million of the District s portfolio maturing during the remainder of the 2019 first quarter, along with a favorable LGIP yield of 2.75%, the District remains well positioned to take advantage of reinvestment opportunities. As of January 31, 2019, the District s portfolio was valued at $127.2 million, a decrease of $1.6 million from the prior month. Please see the reports in the Appendix Investment Portfolio Analysis, Investment Call Schedule and Monthly Investment Activity as of January 31, 2019 for additional information. Monthly Yield % 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% Investment Performance Monthly Yield LGIP Benchmark 1 YR T-Note Benchmark Market Value (Millions) $140 $120 $100 $80 $60 $40 $20 Portfolio Allocation Core Investments Liquid Investments 0.0% Jan-15 Apr -15 Jul-15 Oct-15 Jan-16 Apr -16 Jul-16 Oct-16 Jan-17 Apr -17 Oct-17 Apr -18 Oct-18 $0 Jan-15 Apr -15 Jul-15 Oct-15 Jan-16 Apr -16 Jul-16 Oct-16 Jan-17 Apr -17 Oct-17 Apr -18 Oct-18 TVWD Month in Review Page 9 January 2019

10 PURCHASING AND CONTRACTS ACTIVITIES > $25,000 VENDOR/CONTRACTOR AWARDED CONTRACTS AND PURCHASES DEPARTMENT TYPE AND DESCRIPTION US Environmental Protection Agency Finance Fee for WIFIA Loan Application, $100,000. AAC Utility Partners, LLC Customer Service Agreement for Customer Information System (CIS) Software Selection and Project Management Services, $277,440. City of Hillsboro Engineering Reimbursement for Waterline Work on NE Century Blvd., $131,461. Hoss Paving Inc. Engineering/OPS Paving Services on Walker Road, $124,245. Special Dist. Insurance Services Trust Risk/HR TVWD General Liability and Property Insurance Premium, $202,493. Signature Paving Services Engineering/OPS Paving Services on NW Avalon Drive, $39,171. Cyberlock Inc. Eng./Asset Mgmt. Electronic Locks for District Facilities, $41,099. CH2M/Jacobs Engineering Engineering Elec. Design and Const. Support for Catlin Crest - Viewmont Pump Station, $25,000. National Meter & Automation Engineering/OPS Purchase of Badger Meters in various sizes, $31,264. CONTRACT AMENDMENTS DEPARTMENT DESCRIPTION CESNW Inc. Engineering Increase in Scope of Work for Task Order No. 2 North Road Stabilization Project, $51,200. Cable Huston, LLP Administration Increase in Purchase Order (PO) for Legal Services, $85,000. Portland General Electric Engineering/OPS Increase in PO for electrical utility payments for pumping power, $25,000. Dynamic Backflow, LLC Engineering/WQ Increase in PO for backflow testing, $60,000. City of Tigard Finance Increase in PO for Right-of-Way Fees, $40,000. City of Beaverton Finance Increase in PO for Right-of-Way Fees, $50,000. City of Hillsboro Finance Increase in PO for Right-of-Way Fees, $110,000. HDR Engineering WWSP Amendment 1 to Agreement for Real Estate Services for additional services, $175,778. SOLICITATIONS DEPARTMENT DUE DATE RFP for Advanced Meter Infrastructure (AMI)/Automatic Meter Reading (AMR) Business Case Analysis Customer Service Feb. 12, 2019 BIDDER INTEGRITY REVIEWS VENDOR SUMMARY No bidder integrity reviews were conducted in the month of January TVWD Month in Review Page 10 January 2019

11 PAYMENT TRENDS Late payment reminder notices shot up by 5% but urgent notices remained relatively steady after the winter holidays. Shut offs also jumped to 4% of total bills issued. Customer Service continues to use phone and notifications for impending shut offs to help limit the shut off rate. Late Payment Reminders (as a % of total # of bills) Shut-offs (Shut-offs % = as a % of total # of bills) 25% Reminder % Urgent % 1400 Total Shut-offs Shut-offs % 10% 20% 15% % 6% 10% 5% 0% % 2% 0% Jan-17 Mar-17 May-17 Jan-17 Mar-17 May-17 TVWD Month in Review Page 11 January 2019

12 WATER SUPPLY WATER RESOURCE ADEQUACY WATER INVENTORY REPORT COMMENTS: Average total supply for January was MGD. Average supply from Portland was MGD, of which MGD was from the District s guaranteed purchase quantity and 4.63 MGD was interruptible. Average supply from JWC was 2.91 MGD. The total amount of water stored in the District s reservoirs increased by 3.13 million gallons, or 0.10 MGD. The average of recharge water stored in ASR was 1.54 MGD, resulting in a total of 1.64 MGD in stored water. When subtracted from the total average daily supply of MGD, the resulting average net demand was approximately MGD. Water Year 2019 operations at Grabhorn ASR began January 7. A total of MG (1.54 MGD) was recharged into the aquifer during the month of January. Current useable storage at Grabhorn is MG. TVWD Supplies PDX Base PDX Int. JWC ASR 2-Yr Avg Total Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 MGD TVWD Month in Review Page 12 January 2019

13 RESERVOIR LEVELS JWC Barney Reservoir (ac-ft): January 16, 2018 JWC Scoggins Reservoir (ac-ft): January 17, 2018 PWB Bull Run Reservoirs (MG): Following an extended drawdown season in 2018, Portland s Bull Run Reservoirs were refilled in December. An updated drawdown curve of storage in the Bull Run reservoirs will be included following the start of the 2019 drawdown season. TVWD Month in Review Page 13 January 2019

14 ASR UPDATES ASR Activites (MG) Recharge WY 2019 Net Recovery Last Yr Net ASR Stored Water Volume (MG) WY 2019 ASR Volume Oct-18 Dec-18 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-18 Dec-18 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 WILLAMETTE WATER SUPPLY PROGRAM UPDATE In January, the WWSP leadership team briefed Westside Economic Alliance members on the benefits of the Willamette Water Supply System, including partnerships, WIFIA and the benefit of contracting to local businesses and services. January s Willamette Water Supply Program Monthly Progress Report is available online for additional information. WATER QUALITY WATER QUALITY HIGHLIGHTS January activities for the Water Resources Division included: The District completed the compliance process for residential backflow assembly testing in January to continue protecting public health and water quality. With this process, the District has achieved a near 100-percent compliance rate for the 2018 reporting year. This was aided in large part from the District s new backflow tracking software and the increased success of the contract testing program. All 152 microbiological samples collected throughout the distribution system in January were total coliform and E. coli negative. System data gathering and initial evaluation continued in January as TVWD began the first steps of the long-term, comprehensive Water Supply Integration project for the new Willamette Water Supply System, marking an important step in making a successful transition to the new supply in TVWD Month in Review Page 14 January 2019

15 SUPPLY & DEMAND INDICATOR TRENDS Supply Trends: January 2014 January Temperature AVG DAILY HIGH TEMP HISTORICAL AVG DAILY HIGH TEMP (10-yr rolling monthly avgs.) Jan -14 Mar- 14 May-14 Jul-14 Sep-14 Nov-1 4 Jan -15 Mar- 15 May-15 Jul-15 Sep-15 Nov-1 5 Jan -16 Mar- 16 May-16 Jul-16 Sep-16 Nov-1 6 Jan -17 Mar- 17 May-17 Nov-1 7 Jan -18 Mar- 18 Nov-1 8 Jan Rainfall TOTAL INCHES: "RAIN YEAR" HISTORICAL NORM (10-yr rolling mont hly avgs.) Jan -14 Mar- 14 May-14 Jul-14 Sep-14 Nov-1 4 Jan -15 Mar- 15 May-15 Jul-15 Sep-15 Nov-1 5 Jan -16 Mar- 16 May-16 Jul-16 Sep-16 Nov-1 6 Jan -17 Mar- 17 May-17 Nov-1 7 Jan -18 Mar- 18 Nov-1 8 Jan -19 Demand Trends: January 2014 January Daily System Demand including ASR (MG) DAILY AVERAGE MONTH PEAK Jan -14 Mar- 14 May-14 Jul-14 Sep-14 Nov-1 4 Jan -15 Mar- 15 May-15 Jul-15 Sep-15 Nov-1 5 Jan -16 Mar- 16 May-16 Jul-16 Sep-16 Nov-1 6 Jan -17 Mar- 17 May-17 Nov-1 7 Jan -18 Mar- 18 Nov-1 8 Jan Consumption Rate per Capita (Residential Customers only) DAILY GALS PER CAPITA 80 Jan -14 Mar- 14 May-14 Jul-14 Sep-14 Nov-1 4 Jan -15 Mar- 15 May-15 Jul-15 Sep-15 Nov-1 5 Jan -16 Mar- 16 May-16 Jul-16 Sep-16 Nov-1 6 Jan -17 Mar- 17 May-17 Nov-1 7 Jan -18 Mar- 18 Nov-1 8 Jan -19 TVWD Month in Review Page 15 January 2019

16 CUSTOMER SERVICE COMMUNITY SUSTAINABILITY CONSERVATION PROGRAM Millions of Gallons Monthly Conservation Water Savings (Estimate based on 1 year of use) YR Average Millions of Gallons Cumulative Conservation Water Savings (Estimate based on 1 year of use) YR Average Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun EMERGENCY ASSISTANCE PROGRAM Online contributions increased to $350 in January, up $100 from December, and disbursements increased to $1,200. Ten TVWD and/or joint customers received assistance during the January reporting period. The City of Beaverton and Clean Water Services had 3 and 7 assisted customers, respectively. $15,000 $12,000 $9,000 $6,000 $3,000 Historic Emergency Assistance Customer Contributions by Fiscal Year Actual Projected $15,000 $12,000 $9,000 $6,000 $3,000 Historic Emergency Assistance Disbursements by Fiscal Year Actual Projected $ $ TVWD Month in Review Page 16 January 2019

17 DISTRICT ASSETS INFRASTRUCTURE STABILITY CIP SUMMARY (KEY PROJECTS) COMMENTS: The following is a brief update for the major ongoing capital improvement projects: Miller Hill ASR: Staff is currently assessing potential options and next steps. Grabhorn Reservoir Replacement: The reservoir roof is complete, and DN Tanks will mobilize in February to perform final wire wrapping and shotcreting of the reservoir walls. Final roofing, HVAC, electrical, and mechanical piping work in the valve house are nearing completion. Construction of the off-site piping is also nearing completion. Work for on-site piping will be done in the coming months. Catlin Crest & Viewmont Pump Station Replacement: Civil and electrical design is in-progress. SW 119 th Cornell to Coleman: Plan to bid in February Construction is scheduled for summer 2019 to avoid traffic impacts with the school. Final plans and specifications are being prepared inhouse. Metzger 498 N-S Fire Flow Improvement (P-156): Design activities have commenced starting with a routing study. Additional mains replacement projects by District construction crews are on-going. Construction work was completed on NW Avalon. Construction on NW Perimeter and Ridgetop will be done in February. The following charts summarize CIP expenditures for the biennium. The charts do not include the costs of WWSP projects. FY 2019 Remaining CIP vs. Expenditures to Date Remaining Expenditures to date Biennium Remaining CIP vs. Expenditures to Date Remaining Expenditures to date $8,758,460 $8,277,546 $18,400,811 $20,211,153 TVWD Month in Review Page 17 January 2019

18 Source Projects C12414 Miller Hill Road ASR Manager: Est. Completion CPC: 143% SPC: 100% Phase: Construction Type: Source Boone, Pete 10/30/2015 $0.0M $1.0M $2.0M $3.0M $4.0M $5.0M $6.0M $7.0M $8.0M Storage Projects C12503 Grabhorn Reservoir Replacement Manager: Est. Completion CPC: 81% SPC: 86% Phase: Design Type: Storage Barrett, Andrew 6/30/2019 $0.0M $2.0M $4.0M $6.0M $8.0M $10.0M $12.0M Pump Station Projects C12557 Catlin Crest/Viewmont Pump Station Replacement Manager: Est. Completion CPC: 3% SPC: 63% Phase: Design Type: Pump Stations Smith, Ryan 6/30/2019 $0.0M $0.1M $0.2M $0.3M $0.4M $0.5M $0.6M $0.7M $0.8M $0.9M NOTES: Pipeline Projects CPC = Cost % Complete, SPC = Schedule % Complete = Actual Cost to date = ed Cost C12555 SW 119th - Cornell to Coleman - Mainline Replacement Manager: Est. Completion CPC: 8% SPC: 65% Phase: Design Type: Pipeline Barrett, Andrew 9/1/2019 $0.0M $0.1M $0.2M $0.3M $0.4M $0.5M $0.6M $0.7M $0.8M $0.9M C12590 Metzger 498 N-S Fire Flow Improvement Manager: Est. Completion CPC: 0% SPC: 28% Phase: Design Type: Pipeline Barrett, Andrew 6/30/2020 $0.0M $1.0M $2.0M $3.0M $4.0M $5.0M $6.0M $7.0M C19999 Mains Replacement Projects Manager: Est. Completion CPC: 79% SPC: 81% Phase: All Phases Type: Pipeline Alton, Sarah 6/30/2019 $0.0M $0.5M $1.0M $1.5M $2.0M $2.5M $3.0M $3.5M NOTES: CPC = Cost % Complete, SPC = Schedule % Complete = Actual Cost to date = ed Cost Note: Project Descriptions are in the Report Appendix. TVWD Month in Review Page 18 January 2019

19 ENGINEERING ACTIVITY 140 Engineering Activity - New Services (Yearly Cumulative Totals) Total Service Availability Requests Total Plan Review and Approval Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 Feb-16 Apr-16 Jun-16 Aug-16 Oct-16 Dec-16 Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 Feb-19 GPS LOCATES GPS Locate Program Progress Total Asset Locates Percent Complete 120, ,000 Total Known in System Total Locates Completed 100% 90% 80% 70% 80, , % 50% 40% 40, % 20, % 10% 0 0% Jan-17 Mar-17 May-17 Jan-17 Mar-17 May-17 FIELD LOCATE REQUESTS Field Locates (TVWD only) Feb-17 Mar-17 Apr-17 May-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 TVWD Month in Review Page 19 January 2019

20 SYSTEM GROWTH System Development Charges SDC ERUs SOLD IN MONTH 12 MONTH ROLLING AVERAGE Jan-14 Mar -14 May -14 Jul-14 Sep-14 Nov-14 Jan-15 Mar -15 May -15 Jul-15 Sep-15 Nov-15 Jan-16 Mar -16 May -16 Jul-16 Sep-16 Nov-16 Jan-17 Mar -17 May -17 Mar -18 May Meters Installed (cumulative) Biennium Biennium Biennium Jul (Yr 1) Aug (Yr 1) Sep (Yr 1) Oct (Yr 1) Nov (Yr 1) Dec (Yr 1) Jan (Yr 1) Feb (Yr 1) Mar (Yr 1) Apr (Yr 1) May (Yr 1) Jun (Yr 1) Jul (Yr 2) Aug (Yr 2) Sep (Yr 2) Oct (Yr 2) Nov (Yr 2) Dec (Yr 2) Jan (Yr 2) Feb (Yr 2) Mar (Yr 2) Apr (Yr 2) May (Yr 2) Jun (Yr 2) VALVE MAINTENANCE ACTIVITIES TVWD Month in Review Page 20 January 2019

21 INFORMATION TECHNOLOGY The status of projects prioritized by the Information Management Oversight Committee (IMOC): IMOC prioritized projects in the planning or execution phase including: ESRI Geographic Information System (GIS) software upgrade, Cityworks CMMS software upgrade, implementation of the Planning Standards application, the Customer Information System software project, and support for implementation of the Beaverton IGA. In addition to key projects, activities in January included technology assessments and roadmap development in support of the budget process, and initial cyber security work in preparation for compliance with the AWIA act. Operationally, IT completed a full network equipment refresh for the District s SCADA environment. This refresh included replacing all network firewalls, cabling, switches, DSL modems, authentication process, and configuration. The new network has been incredibly stable, and provides new features that include better monitoring and cyber security tools. Progress on the Cityworks and ESRI upgrade included installation of all new servers, initial installation of software, and planning for the next phase of the project. RISK MANAGEMENT Risk Management continues to support safety, emergency management, security and risk programs for the District. Notable recent activities include: Construction safety management on the Grabhorn Reservoir project. Developing scope of work for professional services to conduct a vulnerability assessment for the District in compliance with America s Water Infrastructure Act of Regional emergency exercise planning: Push Partner Reviewing physical capacity requirements for the District s heaviest positions. Conduct First Aid/CPR/AED; Asbestos Cement Pipe Refresher; Fire Prevention and Working Alone training. WWSP: o RWF_1.0 Design Progress Meeting o WTP_1.0 workshops o PMO Monthly Safety Meeting o Monthly Employer Safety Meeting TVWD Month in Review Page 21 January 2019

22 EMPLOYEE AND LEADERSHIP DEVELOPMENT STAFFING ACTIVITY Action Position Employee Name Hire CS & Billing Specialist Graeme Stillie Hire Engineering Associate Zach Lemberg Hire & Term Seasonal Maintenance Worker - 2 wks Gary Lepschat Hire & Term Temp CS & Billing Specialist Audra Payton-Smith Term CECOP - 6 mos Kaitlin Irwin Transfer Maintenance Engineering Supervisor Ryan Smith Open Positions for current month Pending Admin Assistant - WWSP Recruiting CEO Recruiting Controller Recruiting Engineering Associate EMPLOYEE DEVELOPMENT ACTIVITY Speaking Engagements Group Presentation Presenter Westside Economic Alliance Breakfast WWSP Mark Knudson, Dave Kraska, Mike Britch Finance Officers Group WIFIA Paul Matthews Conferences Attended Conference National Association of Government Archives and Records Administrators Winter Regional Forum Finance Officers Group Conference Attendee(s) Debbie Carper Paul Matthews TVWD Month in Review Page 22 January 2019

23 COMMUNICATIONS & PUBLIC AFFAIRS OUTREACH & ENGAGEMENT OUTREACH & ENGAGEMENT ACTIVITIES Number of Students Reached Monthly Mar-19 May-19 Jul Cumulative Number of Students Reached (One School Year) Students Reached 2 Year Average Oct-18 Dec-18 Feb-19 Mar-19 Apr-19 May-19 Jun-19 Jul-19 Aug-19 MEDIA & WEBSITE The website was updated with the following information: TVWD Fee Changes for Plan Review and Inspections Services TVWD Selected for Low Cost Loans TVWD Month in Review Page 23 January 2019

24 SOCIAL MEDIA ACTIVITY January 2019 Twitter Facebook YouTube Nextdoor Instagram Number of new Followers (Twitter, Facebook and Nextdoor); Subscribers (YouTube) Number of total Followers (Twitter, Facebook and Nextdoor); Subscribers (YouTube) Number of Profile Visits (Twitter) or Page Views (Facebook/YouTube) Number of TVWD generated posts and reposts or tweets , , Tweet Impressions 22, Tweet/Instagram Mentions Number of Facebook Post Engagements (Likes, comments, clicks, shares); Nextdoor (thanks and comments), Instagram (likes) Total Reach (Number of people that saw posts) , Nextdoor Personal Messages Legend: Tweets: Number of Tweet messages posted Tweet impressions: Number of times Twitter users can view the District s messages in timeline, search results, or from TVWD s profile (or total number of potential Tweet impressions that can be seen) Profile visits: Number of times followers visited the District s profile page Mentions: Number of was mentioned in all Tweets New followers: Number of new followers gained TVWD Month in Review Page 24 January 2019

25 STAKEHOLDER SUPPORT KEY CUSTOMER HIGHLIGHTS 1/4/2019 Shared water quality update regarding Portland Water Bureau s treatment changes and a detection of Cryptosporidium with all key customers. 1/24/10 Shared water quality update regarding Portland Water Bureau s detection of Cryptosporidium with all key customers. PUBLIC RECORDS REQUESTS Public Records Requests by Month Requests Fulfilled COMMENTS: The requests this month related to a current shutoff list, a competing firm s successful proposal and certified payroll and inspection reports for a company working on a WWSP project. 1 0 Feb-18 Apr-18 Jun-18 Aug-18 Oct-18 Dec-18 CUSTOMER AND PARTNER FEEDBACK Pats on the Back: There were three pats on the back awarded in January: Tong Yi, Tomas Hinsley and Josh Ayres. TVWD Month in Review Page 25 January 2019

26 APPENDIX INVESTMENT RELATED INFORMATION INVESTMENT CALL SCHEDULE January 31, 2019 Purchase Date Description Rate to Maturity Market Value Next Coupon Coupon Rate Maturity Date Next Call Date Par 7/1/84 Local Government State Pool 2.750% $ 44,534,242 $ 44,534,242 5/24/18 US Treasury Note 2.450% $ 2,969,640 3/15/ % 9/15/19 No Call $ 3,000,000 5/16/84 US Treasury Note 2.320% $ 2,977,740 7/31/ % 7/31/20 No Call $ 3,000,000 7/22/16 FFCB-Fixed Rate Note 0.923% $ 2,998,350 2/15/ % 2/15/19 No Call $ 3,000,000 3/27/19 FHLB-Fixed Rate Note 1.380% $ 4,993,400 3/18/ % 3/18/19 No Call $ 5,000,000 7/26/16 FNMA-Fixed Rate Note 1.100% $ 4,965,850 7/26/ % 7/26/19 No Call $ 5,000,000 4/26/17 FHLMC-Fixed Rate Note 1.500% $ 4,975,550 7/26/ % 7/26/19 4/26/19 $ 5,000,000 11/15/16 FFCB-Fixed Rate Note 1.130% $ 4,945,400 5/15/ % 11/15/19 Anytime $ 5,000,000 12/11/17 FHLB-Fixed Rate Note 1.890% $ 4,991,400 12/13/ % 12/13/19 No Call $ 5,000,000 1/12/18 FNMA-Fixed Rate Note 2.040% $ 3,964,360 1/21/ % 1/21/20 No Call $ 4,000,000 12/10/17 FHLMC-Fixed Rate Note 2.687% $ 3,999,560 4/23/ % 4/23/20 No Call $ 4,000,000 9/17/18 FHLB-Fixed Rate Note 2.740% $ 5,009,100 5/28/ % 5/28/20 No Call $ 5,000,000 11/1/18 FHLB-Fixed Rate Note 2.900% $ 2,010,900 3/11/ % 9/11/20 No Call $ 2,000,000 12/17/18 FHLB-Fixed Rate Note 2.810% $ 4,021,800 3/11/ % 9/11/20 No Call $ 4,000,000 12/11/17 FHLMC-Fixed Rate Note 1.978% $ 1,972,080 3/29/ % 9/29/20 No Call $ 2,000,000 10/31/17 FFCB-Fixed Rate Note 1.810% $ 2,960,430 4/26/ % 10/26/20 No Call $ 3,000,000 11/30/18 FFCB-Fixed Rate Note 2.910% $ 5,036,350 5/16/ % 11/16/20 No Call $ 5,000,000 5/3/18 FFCB-Fixed Rate Note 2.728% $ 5,976,780 2/12/ % 2/12/21 No Call $ 6,000,000 7/20/18 FNMA-Fixed Rate Note 2.720% $ 2,910,960 2/17/ % 8/17/21 No Call $ 3,000,000 11/1/18 FFCB-Fixed Rate Note 2.970% $ 3,033,780 4/19/ % 10/19/21 No Call $ 3,000,000 12/17/18 FHLB-Fixed Rate Note 2.860% $ 2,015,980 6/10/ % 12/10/21 No Call $ 2,000,000 3/27/17 Berkshire Hathway 1.570% $ 2,997,540 3/15/ % 3/15/19 No Call $ 3,000,000 11/30/18 Apple Inc % $ 2,954,250 2/9/ % 2/9/22 No Call $ 3,000,000 $ 127,215,442 $ 127,534,242 TVWD Month in Review Page 26 January 2019

27 MATURITY MARKET VALUE % OF PORTFOLIO DAYS $ 50,530, % DAYS $ 14,934, % 6 months to 1 year $ 16,870, % 1 to 2 years $ 27,987, % 2-3 years $ 13,937, % 3-5 years $ 2,954, % TOTAL ` $ 127,215, % AVERAGE YEARS TO MATURITY INCLUDING POOL 0.81 AVERAGE YEARS TO MATURITY EXCLUDING POOL* 1.25 *INVESTMENTS MAY BE CALLED PRIOR TO MATURITY LAST MATURITY DATE 2/9/2022 OUTSTANDING INVESTMENT STATUS REPORT BY TYPE TUALATIN VALLEY WATER DISTRICT INVESTMENT PORTFOLIO ANALYSIS AS OF JANUARY 31, 2019 AVERAGE EARNINGS YIELD JANUARY, % PROJECTED WEIGHTED AVERAGE YIELD 2.369% WTD AVG YLD WITHOUT POOL ACCOUNT 2.163% STATUS DATE JANUARY 31, 2019 MARKET VALUE STATE POOL $ 44,534, % US TREASURY NOTES $ 5,947, % FEDERAL PAPER FEDERAL HOME LOAN BANKS $ 23,042, % FEDERAL FARM CREDIT BANKS $ 24,951, % FEDERAL HOME LOAN MORTGAGE CORPORATION $ 10,947, % FEDERAL NATIONAL MORTGAGE ASSOCIATION $ 11,841, % FEDERAL PAPER SUBTOTAL $ 70,782, % CORPORATE NOTES Apple Inc. $ 2,954, % BERKSHIRE HATHWAY $ 2,997, % CORPORATE NOTES SUBTOTAL $ 5,951, % RECAP TOTAL $ 127,215, % TVWD Month in Review Page 27 January 2019

28 MONTHLY INVESTMENT ACTIVITY TUALATIN VALLEY WATER DISTRICT TOTAL PORTFOLIO HOLDINGS (MARKET VALUE) AS OF JANUARY 31, 2018 $127.2 MILLION MONTHLY INTEREST PAYMENTS DATE AMOUNT SECURITY /16/2019 $ 25,000 FHLB 1/21/2019 $ 32,500 FNMA 1/26/2019 $ 27,500 FNMA 1/26/2019 $ 37,500 FHLMC 1/30/2019 $ 30,000 UST 1/31/2019 $ 97,415 LGIP TOTAL $ 249,915 MONTHLY INVESTMENT TRANSACTIONS DATE CALL DATE TRANSACTION TYPE DATE AMOUNT SECURITY BROKER/DEALER ISSUER PURCHASED DATE MATURES YIELD DURING JANUARY --- MATURED 1/16/2019 $ 4,000,000 FHLB DEUTSCHE FHLB 12/16/2016 N/A 1.35% DURING FEBRUARY PENDING --- BOUGHT 2/11/2019 $ 3,028,188 TOYOTA RAYMOND TOYOTA N/A 1/8/ % NET TO (FROM) POOL (DOES NOT INCLUDE DAILY CASH REQUIREMENT OR INTEREST EARNED TRANSACTIONS) IN JANUARY --- $4,000,000 TVWD Month in Review Page 28 January 2019

29 TUALATIN VALLEY WATER DISTRICT INVESTMENT TRANSACTIONS ABBREVIATIONS APPLE INC. BANK OF AMERICA/MERRILL LYNCH BERKSHIRE HATHAWAY CASTLE OAK SECURITIES CITIGROUP GLOBAL MARKETS, INC. CREDIT SUISSE SECURITIES DEUTSCHE BANK SECURITIES FEDERAL FARM CREDIT BANK FEDERAL HOME LOAN BANK FEDERAL HOME LOAN MORTGAGE CORP. FEDERAL NATIONAL MORTGAGE ASSOC. INTERNATIONAL BUSINESS MACHINES INTERNATIONAL FC STONE JP MORGAN OREGON LOCAL GOVERNMENT INVESTMENT POOL MICROSOFT MORGAN STANLEY NOMURA PIPER JAFFRAY & CO RAYMOND JAMES RBC CAPITAL MARKETS TD SECURITIES TOYOTA MOTOR CREDIT CORP. UNITED STATES TREASURY NOTE WELLS FARGO SECURITIES ABBREV APPLE BAML BERKSHIRE CASTLE OAK CITI CREDIT SUISSE DEUTSCHE FFCB FHLB FHLMC FNMA IBM FC STONE JPM LGIP MSFT MS NOMURA PIPER RAYMOND RBC TD TOYOTA UST WFS TVWD Month in Review Page 29 January 2019

30 Consultant Report Tualatin Valley Water District Consultant Report for the Period January, 2019 Vendor Name Reference -to-date Total Professional Services BARNEY & WORTH WILLAMETTE WATER SUPPLY PROGRAM OUTREACH 15, $ 356, CAROLLO ENGINEERS INC ON CALL ENGINEERING SERVICES $ 47, TVWD MASTER PLAN $ 67, CFM BEAVERTON STRATEGY $ 51, FCS GROUP INDIRECT COST STUDY $ 17, TVWD-CAP AND ENG FEE STUDY $ GOVERNMENT PORTFOLIO ADVISORS FINANCIAL ADVISORY SERVICES $ 28, GROVE, MUELLER & SWANK REVIEW OF WRWC FINANCIAL STATEMENTS $ 3, HAWKINS, DELAFIELD & WOOD BOND COUNSEL SERVICES 1, $ 13, HDR ENGINEERING WATER RATE STUDY $ 1, HR ANSWERS PAY EQUITY EVALUATION 2, $ 6, MOSS ADAMS FINANCIAL AUDIT-TVWD $ 58, FINANCIAL AUDIT-WIF $ 1, MATRIX CONSULTING ORGANIZATION, STAFFING & EFFECTIVENESS STUDY $ 20, NYHART GASB 75 FULL VALUATION $ 8, OBEC INSPECTION & STRUCTURE ANALYSIS GOYAK PUMP STN & ING RSVR $ 15, THOMPSON RESERVOIR 4, $ 23, INGLEWOOD RESERVOIR REPAIRS AND MODIFICATIONS $ 36, OXENFORD SOP COOPERATIVE $ 3, PILLAR TO POST HOME INSPECTION FOR ROSANDER $ - PORTLAND STATE UNIVERSITY POPULATION RESEARCH $ PFM MUNICIPAL ADVISORY SERVICES 5, $ 19, ROBINSON, STAFFORD & RUDE VALUE ENGINEERING STUDY - WWSP $ - STANTON GLOBAL COMMUNICATIONS TVWD BRAND STRATEGY AND DESIGN $ - TEAM HR TEAM BUILDING $ 1, VIRTUAL INFORMATION EXECUTIVES INTERIM CIO SERVICES $ 39, WATER SYSTEMS CONSULTING WATER MAIN DESIGN $ 6, WORKPLACE SOLUTIONS NW HUMAN RESOURCES CONSULTING SERVICE $ - Professional Services -to-date Total $ 29, $ 830, TVWD Month in Review Page 30 January 2019

31 Tualatin Valley Water District Consultant Report for the Period January, 2019 Vendor Name Reference -to-date Total Legal Services CABLE HUSTON BENEDICT & HAAGENSEN BEAVERTON AGREEMENT $ 22, FLUORIDE $ 1, GENERAL TVWD $ 2, HOWARD & HANNAH PARK $ 1, GRABHORN CONSOLIDATION $ MILLER HILL ROAD ASR 28, $ 73, PREPARE PURCHASE & SALE AGREEMENT - PARK $ 2, RIDGEWOOD RESERVOIR 25, $ 726, RESERVOIR SITE CONDEMNATION $ 4, TANABE DEED $ WATER SUPPLY ADMINISTRATION GOVERNANCE $ 2, WRWTP PROPERTY ACQUISITION $ 8, WWSP/WGG $ WWSP CONTRACTING $ WWSP GENERAL 12, $ 184, WWSP RIGHT OF WAY $ SUBTOTAL $ 66, $ 1,033, BULLARD SMITH JERNSTEDT WILSON 401K PLAN $ 1, BULLARD SMITH JERNSTEDT WILSON EMPLOYEE ISSUES $ 4, CHRISTOPHER SOELLING STELLAR J ARBITRATION $ 3, MILLER NASH GRAHAM & DUNN LLP STELLAR J ARBITRATION $ 10, Legal Services -to-date Total $ 66, $ 1,052, Telemetry Services S&B INC MODIFICATIONS TO TVWD'S 385 ZONE $ 8, WWSP PLANNING, DESIGN, PROGRAMMING & FLD SVCS 44, $ 97, Telemetry Services -to-date Total $ 44, $ 106, TVWD Month in Review Page 31 January 2019

32 Tualatin Valley Water District Consultant Report for the Period January, 2019 Vendor Name Reference -to-date Total Contract Projects Consultants AECOM RIDGEWOOD VIEW PARK RESERVOIR & PUMP STATION $ 13, AKS ENGINEERING SERVICES FLORENCE LANE $ 1, FARMINGTON RD $ 19, RIDGEWOOD VIEW $ 6, ST, 153RD, CIRCLE A, AND HARTUNG FARMS $ 24, BARNES RD $ 16, BLACK & VEATCH DESIGN & SERVICES DURING CONSTRUCTION FOR RWF 1.0 $ 2,552, BROWN AND CALDWELL WWSP-PIPE ROUTING & FEASIBILITY $ 72, PLE 1.0 $ 957, WWSP-DESIGN, BIDDING PHASE, AND SERVICES DURING CONSTR. $ 1,165, ORENCO WOODS DESIGN $ 79, PLM , $ 120, CAPITAL PROGRAM MANAGEMENT SERVICES WWSP-PROGRAM MGMT ADVISORY SERVICES $ 15, CDM SMITH WTP 1.0 DESIGN 314, $ 705, CESNW NORTH ROAD STABILIZATION 1, $ 53, CFM WWSP-PUBLIC AFFAIRS AND COMMUNICATIONS 10, $ 142, TVWD-PUBLIC AFFAIRS AND COMMUNICATIONS $ 18, CH2M HILL INC SW KINSMAN RD PIPELINE FINAL DESIGN $ 10, GEOTECHNICAL EXPLORATION-FARMINGTON AND 209TH $ 50, DESIGN, BIDDING, AND SDC FOR PLM , $ 3,346, DAVID EVANS AND ASSOCIATES INC WTP SITE SURVEY & MAPPING SERVICE $ 6, WWSP PERMITTING $ 328, PROGRAM LAND SURVEYING 5, $ 64, EMERY & SONS DESIGN BUILD - GRABHORN RESERVOIR $ 1,035, WILLAMETTE WATER SUPPLY ENVIRONMENTAL PERMITTING $ 648, GREENWORKS PC PUBLIC OUTREACH $ 7, GEOSYNTEC TEMPERATURE MODELING FOR 401 PERMIT $ 34, HYDROGEOPHYSICS RIDGEWOOD VIEW GEOPHYSICAL INVESTIGATION $ 19, HDR ENGINEERING REAL ESTATE SUPPORT SERVICES 182, $ 678, TH TRANSMISSION PIPELINE DESIGN 15, $ 144, CORROSION CONTROL 13, $ 41, PLM 1.0 $ 1,230, KEARNS & WEST WILLAMETTE GOVERNANCE FACILITATION $ 40, KENNEDY JENKS WWSP PLW 1.0 $ 1,737, KIEWITT INFRASTRUCTURE RWF 1.0 CONSTRUCTION MGMT $ 90, LAND ACQUISITION STRATEGIES WWSP-REAL ESTATE SUPPORT SERVICES $ 5, MCMILLEN JACOBS SEISMIC CONSULTATION SERVICES $ 64, RESERVOIR SITE GEOTECHNICAL INVESTIGATING AND REPORTING $ 70, NORTHWEST GEOTECH / TESTING TESTING FOR PLW 1.1 $ 63, GRABHORN RESERVOIR REPLACEMENT STUDY $ 34, NORTHWEST HYDRAULICS CONSULTANTS WWSP PHYSICAL MODEL STUDY $ 75, PETERSON STRUCTURAL ENGINEERS INC COOPER MOUNTAIN PUMP HOUSE $ 3, PORTLAND ENGINEERING SCADA CONTROL PRE-DESIGN & INTEGRATION $ 4, RH2 ENGINEERING JENKINS RD/CEDAR MILL CREEK WATERLINE CROSSING $ 11, SHANNON & WILSON ORENCO WOODS GEOTECHNICAL EXPLORATIONS $ SOFTSOURCE CONSULTING IT WORK RELATED TO CROSS CONNECTION SOFTWARE $ 72, STANTEC CONSULTING WWSP PROGRAM MGMT $ 6,806, METZGER-NORTH SOUTH FIRE FLOW $ WEST YOST ASSOCIATES RESERVOIR REPLACEMENT PROJECT $ 56, Contract Projects Consultants -to-date Total $ 783, $ 22,750, Grand Total $ 924, $ 24,739, TVWD Month in Review Page 32 January 2019

33 CIP PROJECT DESCRIPTIONS Logos Project No. Project Type Project Name Project Description C12414 Source Miller Hill Road ASR 2 MGD Aquifer Storage and Recovery (ASR) facility on Cooper Mountain on Miller Hill Road. C12503 Storage Grabhorn Reservoir Replacement Replacement of the existing 5 MG Grabhorn Reservoir which includes new piping and abandonment of an old valve vault which has been a safety concern. C12557 Pump Station Ora-Murphy Pump Station (Catlin Crest and Viewmont Pump Station Replacement) This new pump station is a consolidation of the aging Catlin Crest and Viewmont Pump Stations. The existing pump stations are aging and undersized for fire-flow as identified in the 2015 Master Plan. The new pump station includes both the new pump station and additional piping improvements to account for fire flow deficiencies. The location is expected to be on the old Teufel reservoir site and will allow for future space planning for a new reservoir at the site. The new pump station is being designed with added safety features with no confined space entry. C12555 Pipeline SW 119 th Cornell to Coleman Mainline Replacement Installation of 2400-LF of 12 DIP to replace the 40- year old high-pressure line. C12590 Pipeline Metzger 498 N-S Fire Flow Improvement (P- 156) This project was identified as critical in the 2015 Master Plan to provide additional fire flow to the southern portion of the Metzger service area, and consists of approximately 10,000 feet of 18, 12, and 8- inch piping. Mains Replacement Program Pipeline Various There are many pipelines within the District which require replacement due to age and corrosion related issues. These are evaluated, prioritized, and replaced given available information. TVWD Month in Review Page 33 January 2019

34 BUDGETARY FINANCIAL STATEMENTS GENERAL FUND (BIENNIUM ) Tualatin Valley Water District General Fund (Fund 01) For the biennial budget period ending June 30, 2019 For the month ending January 31, 2019 Activity for the Month Unaudited Actual Variance Resources To date Actual Variance Remaining Revenues $ 3,350,565 $ 3,650,797 $ 300,232 Water Commodity Sales $ 97,022,280 $ 79,327,400 $ 88,854,698 $ 9,527,298 $ 8,167,582 1,291,020 1,450, ,939 Water Sales Fixed Charges 25,252,720 19,292,744 21,500,007 2,207,263 3,752,713 4,641,585 5,101, ,172 Total Water Sales 122,275,000 98,620, ,354,704 11,734,560 11,920,296 80,297 64,509 (15,788) ROW Fees 1,760,350 1,347,880 1,337,466 (10,414) 422,884 31,936 25,675 (6,261) Administrative Service Fees 1,210, , ,615 39, ,915 53,391 74,850 21,459 Interest Earnings 1,631,800 1,364, ,673 (560,172) 827, , ,450 13,857 Contract Reimbursements 2,760,600 2,028,314 2,297, , , , ,878 (1,735) Overhead charged to construction 7,163,988 5,565,921 6,734,629 1,168, ,359 - (222,877) (222,877) Other Revenues/Expenses, net 459, , ,789 52,389 (52,389) 591, ,485 (211,345) Total Other Revenues 14,986,668 11,668,255 12,628, ,902 2,358,511 5,233,415 5,482, ,827 Total Revenue 137,261, ,288, ,982,861 12,694,462 14,278, , , ,747 Transfers In (Joint Venture accounting) 5,460,289 4,487,999 3,015,243 (1,472,756) 2,445,046 24,902,484 49,833,892 24,931,408 Beginning Fund Balance 33,270,658 33,270,658 31,369,790 (1,900,868) 1,900,868 $ 30,330,357 $ 55,611,339 $ 25,280,982 Total Resources $ 175,992,615 $ 148,047,056 $ 157,367,895 $ 9,320,839 $ 18,624,720 Requirements $ 1,714,102 $ 1,406, ,114 Personnel Services $ 40,052,081 $ 31,416,827 $ 26,892,436 4,524,391 $ 13,159,645 1,310,436 1,293,355 17,081 Materials & Services 36,384,982 28,982,048 25,165,796 3,816,252 11,219,186 6,666-6,666 Capital Outlay 602, ,970 73, , ,065 3,031,204 2,700, ,860 Subtotal 77,039,363 60,967,845 52,131,467 8,836,378 24,907,896 2,709,749 2,708,333 1,416 Transfers to other funds 67,334,000 53,785,255 53,768,335 16,920 13,565,665 5,740,953 5,408, ,276 Subtotal 144,373, ,753, ,899,802 8,853,298 38,473,561 80,272 64,442 15,830 Special Payments 1,760,350 1,347,824 1,329,873 17, , Contingency 14,729,000 7,437,000-7,437,000 14,729,000 5,821,225 5,473, ,106 Total Expenditures 160,862, ,537, ,229,675 16,308,249 53,633,038 Fund Balance 24,509,132 50,138,220 (25,629,088) Ending Fund Balance 15,129,902 24,509,132 50,138,220 (25,629,088) (35,008,318) $ 30,330,357 $ 55,611,339 $ (25,280,982) Total Requirements $ 175,992,615 $ 148,047,056 $ 157,367,895 $ (9,320,839) $ 18,624,720 These statements unaudited and are preliminary for fiscal year ending June 30, This statement includes the effects of the November 2018 supplemental budget TVWD Month in Review Page 34 January 2019

35 GENERAL FUND EXPENSES BY DEPARTMENT (BIENNIUM ) Tualatin Valley Water District Administrative Services Expense Report For the biennial budget period ending June 30, 2019 For the month ending January 31, 2019 Activity for the Month Department Actual Variance Division To date Actual Variance Remaining Administrative Services Department(Dept. 10) General Services (Div. 01) $ 57,345 $ 62,205 $ (4,860) Personnel Services $ 1,450,330 $ 1,134,822 $ 1,115,060 $ 19,762 $ 335,271 35,915 3,378 32,537 Materials & Services 867, , , , , Capital Outlay 25,000 25,000 13,316 11,684 11,684 93,260 65,583 27,677 Total Division Expenses 2,342,643 1,843,560 1,679, , ,680 Human Resources (Div. 11) 50,210 44,554 5,656 Personnel Services 1,269, , ,615 89, ,571 4,064 29,582 (25,518) Materials & Services 239, ,522 96,782 98, ,665 54,274 74,136 (19,862) Total Division Expenses 1,508,633 1,188,455 1,000, , ,236 Risk Management (Div. 12) 27,968 33,925 (5,957) Personnel Services 705, , ,212 77, ,794 29,912 29, Materials & Services 747, , , , ,131 57,880 63,277 (5,397) Total Division Expenses 1,452,826 1,152, , , , , ,996 2,418 Total Department Expenses 5,304,102 4,184,118 3,650, ,857 1,653,841 Department Recap Administrative Services Department (Dept. 10) 135, ,684 (5,161) Total Personnel Services 3,424,522 2,678,883 2,491, , ,635 69,891 62,312 7,579 Total Materials & Services 1,854,580 1,480,235 1,145, , , Total Capital Outlay 25,000 25,000 13,316 11,684 11, , ,996 2,418 Total Department Expenses 5,304,102 4,184,118 3,650, ,857 1,653,841 These statements unaudited and are preliminary for fiscal year ending June 30, TVWD Month in Review Page 35 January 2019

36 Tualatin Valley Water District Customer Services Department Expense Report For the biennial budget period ending June 30, 2019 For the month ending January 31, 2019 Activity for the Month Department Actual Variance Division To date Actual Variance Remaining Customer Services Department (Dept. 20) General Service (Div. 01) $ 37,139 $ 33,712 $ 3,427 Personnel Services $ 938,562 $ 734,227 $ 608,536 $ 125,691 $ 330,026 17,506 9,037 8,469 Materials & Services 551, , , , , Capital Outlay ,645 42,749 11,896 Total Division Expenses 1,490,373 1,181, , , ,319 Customer Service (Div. 21) 109,223 95,083 14,140 Personnel Services 2,743,792 2,142,856 1,915, , ,188 74,040 64,756 9,284 Materials & Services 1,519,193 1,161,401 1,094,425 66, , Capital Outlay , ,839 23,424 Total Division Expenses 4,262,985 3,304,257 3,010, ,228 1,252,956 Field Customer Service (Div. 22) 139, ,115 14,100 Personnel Services 3,500,644 2,734,689 2,415, ,163 1,085,118 4,297 (5,496) 9,793 Materials & Services 226, , ,147 27,767 83, Capital Outlay , ,619 23,893 Total Division Expenses 3,727,177 2,905,603 2,558, ,931 1,168,505 Communication (Div.24) 35,900 32,562 3,338 Personnel Services 905, , , , ,992 14,191 2,146 12,045 Materials & Services 385, ,185 69, , , Capital Outlay ,091 34,707 15,384 Total Division Expenses 1,291,111 1,022, , , , , ,915 74,597 Total Department Expenses 10,771,646 8,413,717 7,069,777 1,343,940 3,701,869 Department Recap Customer Services Department (Dept. 20) 321, ,472 35,005 Total Personnel Services 8,088,969 6,320,225 5,534, ,581 2,554, ,034 70,442 39,592 Total Materials & Services 2,682,677 2,093,492 1,535, ,359 1,147, Total Capital Outlay (Equipment) , ,915 74,597 Total Department Expenses 10,771,646 8,413,717 7,069,777 1,343,940 3,701,869 These statements unaudited and are preliminary for fiscal year ending June 30, TVWD Month in Review Page 36 January 2019

37 Tualatin Valley Water District Engineering & Water Resources Department Expense Report For the biennial budget period ending June 30, 2019 For the month ending January 31, 2019 Activity for the Month Department Actual Variance Division To date Actual Variance Remaining Engineering Services & Operations Department (Dept. 35) General Service (Div. 01) $ 23,152 $ 20,291 $ 2,861 Personnel Services $ 505,742 $ 401,902 $ 362,127 $ 39,775 $ 143,615 69,553 31,602 37,951 Materials & Services 992, , , , , Capital Outlay 113, ,800 50,905 62,895 62,895 92,705 51,892 40,813 Total Division Expenses 1,612,032 1,278, , , ,852 System Operations (Div. 31) 205, ,643 24,577 Personnel Services 4,524,070 3,592,677 3,298, ,700 1,225,093 29,487 14,950 14,537 Materials & Services 795, , , , , Capital Outlay , ,592 39,115 Total Division Expenses 5,319,110 4,202,977 3,755, ,891 1,564,024 Engineering Services (Div. 32) 134, ,087 33,612 Personnel Services 2,951,345 2,340,679 1,985, , , (37) Materials & Services 27,500 25,516 11,085 14,431 16, Capital Outlay , ,203 33,575 Total Division Expenses 2,978,845 2,366,195 1,996, , ,051 Water Resources (Div. 33) 68,987 55,588 13,399 Personnel Services 1,497,739 1,185,311 1,037, , ,614 8,268 7,086 1,182 Materials & Services 843, , ,056 (48,463) 157, Capital Outlay ,255 62,674 14,581 Total Division Expenses 2,341,464 1,822,904 1,723,181 99, ,283 Asset Management (Div.34) 116,435 90,845 25,590 Personnel Services 2,549,790 2,020,756 1,752, , ,676 72,003 96,567 (24,564) Materials & Services 1,762,850 1,377,288 1,278,704 98, , Capital Outlay , ,412 1,026 Total Division Expenses 4,312,640 3,398,044 3,030, ,226 1,281,822 Water Operations (Div. 35) 45,254 19,196 26,058 Personnel Services 989, , , , ,918 4,651 11,296 (6,645) Materials & Services 120,330 97, ,299 (16,892) 6,031 - Capital Outlay ,905 30,493 19,412 Total Division Expenses 1,110, , , , ,949 Construction & Maintenance (Div. 36) 198, ,428 51,042 Personnel Services 4,329,311 3,430,554 2,797, ,847 1,531,604 23,846 74,600 (50,754) Materials & Services 733, , ,259 (198,360) (15,159) Capital Outlay , , Total Division Expenses 5,062,411 3,980,453 3,545, ,486 1,516,444 1,000, , ,810 Total Department Expenses 22,736,722 17,930,676 15,526,297 2,404,379 7,210,425 Department Recap Engineering Services & Operations Department (Dept. 35) 792, , ,139 Total Personnel Services 17,347,887 13,756,261 11,796,732 1,959,529 5,551, , ,216 (28,329) Total Materials & Services 5,275,035 4,060,615 3,678, ,956 1,596, Total Capital Outlay 113, ,800 50,905 62,895 62,895 1,000, , ,810 Total Department Expenses 22,736,722 17,930,676 15,526,297 2,404,379 7,210,425 These statements unaudited and are preliminary for fiscal year ending June 30, TVWD Month in Review Page 37 January 2019