CANBY UTILITY REGULAR BOARD MEETING AUGUST 8, :00 P.M.

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1 CANBY UTILITY REGULAR BOARD MEETING AUGUST 8, :00 P.M. I. CALL TO ORDER AGENDA I. AGENDA Additions, Deletions or Corrections to the Meeting Agenda II. III. IV. CONSENT AGENDA Approval of the August 8, 2017 Agenda Approval of Regular Board Meeting Minutes of June 13 and July 11, 2017 (pp. 1-10) Approval of Write-Offs Approval of Payment of Water and Electric Bills CITIZEN INPUT ON NON-AGENDA ITEMS RESOLUTION NO 291 Revising Canby Utility s Water System Development Charges Carol Sullivan, Finance Manager (pp ) V. BOARD REPORT Chairman Comments Board Member Comments VI. VII. STAFF REPORTS Operations Manager: SW 13 th Avenue Water Main Break Operations Center Annual Clean-Up Day Customer Service Supervisor: Annual Aging Report (pp ) General Manager Updates: ADJOURN

2 CANBY UTILITY REGULAR BOARD MEETING MINUTES JUNE 13, 2017 Board Present: Staff Present: Others Present: Chairman Potter; Members Maxwell, Daniels, Brito, and Wagner Daniel P. Murphy, General Manager; Barbara Benson, Board Secretary; Carol Sullivan, Finance Manager; Sue Arthur, Purchasing Agent; Dee Anne Wunder, Customer Service Supervisor ; and Jim Stuart, Operations Manager Tim Dale, City Council Liaison Chairman Potter called the Regular Board Meeting to order at 7:00 p.m. Chairman Potter presented the meeting agenda for consideration. He asked for any additions, deletions or corrections to the meeting agenda and there were none. Chairman Potter presented the consent agenda for approval. Member Brito made the *MOTION to Approve the Consent Agenda, Consisting of the Meeting Agenda, Regular and Executive Session Meeting Minutes of May 9, 2017, Write-Offs in the Amount of $816.78, Payment of the Electric and Water Department Bills in the Amount of $917,435.88, with Carry-Ins in the Amount of $121,656.63, for a Total of $1,039, Member Daniels seconded, and the motion passed unanimously. Chairman Potter asked for citizen input on non-agenda items and there was none. Finance Manager Carol Sullivan presented the fiscal year 2018 electric and water fund operating and capital budgets for approval. Sullivan thanked staff for their efforts to help develop the budget. Sullivan began her presentation with the electric budget executive summary that highlighted the proposed changes from fiscal year 2017 to The total electric sales are increasing 3.13%, while the total other electric energy revenues are decreasing. The decrease in other revenues is due to lower BPA conservation program funding. The operating revenues are increasing as a result of the 3% growth factor. Sullivan stated that the total operating expenses are decreasing mostly due to more capitalized labor and removing a vacant lineman position from the department. Sullivan stated that the budget decreases are offset by the increases in costs for rent for the existing downtown office building, wholesale power, transmission, franchise taxes, and computer software auditing. The operating income is projected to increase due to growth and more capitalized labor. Sullivan stated that the line item for Total Non- Operating Revenues and Expenses is increasing due to higher reserve balances and slightly increased interest rates. The total capital contributions are also increasing due to more contributions as additional developable land is annexed into the city limits. Sullivan reviewed the proposed changes in net assets as a result of capital contributions, growth factors, capitalized labor, and eliminating a position. The total projected change in net assets for the new fiscal year

3 Canby Utility Regular Board Meeting Minutes June 13, 2017 Page 2 of 6 is $2,004,000. At the end of fiscal year 2018, the total cash reserves are expected to be at $7,158,791. Member Maxwell asked about the new building construction budgeted contingencies. General Manager Dan Murphy explained that the contingencies are set at 12%; however, the approved project budget amount is reflected in the capital budget. Actual costs for construction won t be known until the bidding process is complete. Chairman Potter asked about the lineman position being eliminated from the budget. Sullivan explained that last year we added an apprentice lineman position to the department and a journeyman lineman position was being held open for an injured worker, but the worker was unable to return to the job. The apprentice lineman is expected to reach journeyman status later this year. Member Wagner asked about the proposed new distribution Feeder G/Feeder 4 Intertie and other needs to address future growth in the Pioneer Industrial Park. Operations Manager Jim Stuart explained the benefits of the proposed capital project. The project will provide back-feed capability and increased system reliability, but it is not necessarily needed for growth. Canby Utility s substations have enough available capacity to sufficiently meet any growth needs. Member Brito asked if the city s growth is impacting Canby Utility s workforce. Murphy stated that with the type of growth taking place within the city, existing staffing levels are adequate. Murphy noted that there is ample capacity to meet expected demand growth for water as well. Sullivan then reviewed the water budget executive summary and explained the proposed changes from fiscal year 2017 to The total water usage sales are expected to increase based on a 3% growth factor that was incorporated into the budget. Sullivan noted that the 12.8% budget increase reflects a post-budget rate increase in fiscal year The operating expenses are expected to increase due to hiring an additional utility worker, rent for the existing downtown office building, depreciation, franchise tax, and the Veolia Water contractual cost of living increase. The operating income increased with having the growth factor covering an increase in operation expenses. Sullivan stated that the line item for Total Non-Operating Revenues and Expenses are decreasing due to higher reserve balances and slightly increased interest rate, as well as lower interest payments on bonds. The total capital contributions are significantly increasing due to more contributions, as additional developable land is annexed into the city limits and increased system development charges for residential and multi-family dwellings. Sullivan noted there are 161 residential connections and 123 multi-family dwelling connections budgeted. Sullivan reviewed the changes in net assets as a result of increased system development charges and contributions from others. The total proposed change in net assets for the year is $1,333,673. The total cash reserves are expected to be $4,597,468 at end of fiscal year Sullivan then reviewed the personnel costs for the next fiscal year. Next to the cost of payroll, PERS is impacting Canby Utility the most. The projected total PERS costs are $464,981. In fiscal year 2017, the cost for PERS was lower than health benefits. The health benefit costs are lowering due to a change in healthcare coverage as a result of the Affordable Care Act s Cadillac Tax impacts on the existing plan. Sullivan stated that the electric personnel costs are decreasing as a result of eliminating the journeyman lineman position, and the water personnel costs are increasing due to adding a utility worker position.

4 Canby Utility Regular Board Meeting Minutes June 13, 2017 Page 3 of 6 Sullivan reviewed the PERS fiscal year 2018 cost breakdown. The Tier 1/Tier 2 member rate is increasing 4.46% to a total of 27.86%, and the new OPSRP member rate is increasing 2.95% to a total of 20.18%. Sullivan presented a chart that compared the previous PERS rate to the new rates. Canby Utility has eight employees in Tier 1/Tier 2 and 18 employees in OPSRP. Sullivan also reviewed the PERS calendar contributions as a percentage of wages and the PERS fiscal year rate history. Chairman Potter stated that he requested Sullivan provide this PERS information in order to help board members understand the impacts of the PERS rate increases and the potential impacts that could have on our customers. He also stated that the savings in healthcare premiums will help to offset the net impact of the PERS costs for the current fiscal year. Sullivan then recommended that the board approve the budgets as presented since there were no changes. Member Daniels made the *MOTION to approve the proposed fiscal year 2018 electric and water operating and capital budgets as presented. Member Maxwell seconded the motion and the roll call ballot was as follows: Member Brito, aye; Member Daniels, aye; Member Maxwell, aye; Member Wagner, aye; and Chairman Potter, aye. The motion passed 5 to 0. General Manager Dan Murphy presented a resolution for consideration that would adopt a new written backflow prevention plan. Murphy stated the proposed new written backflow prevention plan was drafted in response to a request from the Oregon Health Authority s Drinking Water Services Department (OHA-DWS). OHA-DWS is satisfied with everything Canby Utility has done to date in administering its backflow prevention plan, but they are asking all water providers to put their plan into writing to ensure the providers understand the law. In April 2016, the Oregon Revised Statutes and the Oregon Administrative Rules (OAR) changed and they moved the list of identified hazards to a different table number that resulted in needed revisions. Murphy noted the table references were now off. Murphy stated he worked with OHA-DWS to craft the proposed written plan. OHA-DWS has recommended the Canby Utility Board adopt the plan. Murphy stressed to the board that this written plan is completely consistent with how we are presently managing our backflow prevention plan. Murphy added that there have been administrative changes in our approach to complying with the OARs, and these changes are reflected in the plan document. But again, no changes have been made to the program or to the compliance elements in the current program. Member Daniels asked if the list of approved certified backflow testers will continue to be available. Murphy replied that we will continue to maintain a list for the convenience of our customers, but added that not all backflow devices require testing. Chairman Potter stated that the OHA has approved this plan and feels it s an important step. He complemented staff on their efforts to accomplish this task. Potter also noted that this resolution reaffirms Resolution Nos. 84 and 179, which OHA-DWS considers to be the utility s enabling ordinances. Member Daniels made the *MOTION to approve Resolution No. 290, adopting the new written Backflow Prevention Plan. Member Brito seconded the motion and the roll call ballot was as follows: Member Brito, aye; Member Daniels, aye; Member Maxwell, aye; Member Wagner, aye; and Chairman Potter, aye. The motion passed 5 to 0.

5 Canby Utility Regular Board Meeting Minutes June 13, 2017 Page 4 of 6 Chairman Potter commended Sullivan and staff for the work that went into developing the fiscal year budgets. He also expressed his appreciation to Murphy on the revisions to Canby Utility s backflow program plan. Operations Manager Jim Stuart reported that in accordance with Water Master Plan, sections of deteriorating water mains are being replaced. Canby Utility is planning to make significant progress this year on this work project. Currently we are replacing 370 feet of 6-inch water mains with an 8-inch main along 16 th Avenue, between Manzanita and Maple Streets. The project began one week ago and will be completed this week. Canby Utility contracted with GT Excavation to do the work. Several similar projects are planned for in the next fiscal year. Stuart also reported that we have extended an offer of employment to Lisa Berent to fill the Office Specialist/Customer Service Representative position at the operations center. Stuart spoke briefly about her background. Her first day will be July 10. Stuart reported that on May 31 and June 1, we experienced two minor power outages that were caused by squirrels. Stuart stated that although the Canby Utility installs engineered devices to prevent animal caused outages, on occasion they are able to get around the devices and make contact with a conductor that results in an outage. The duration of the outages lasted no more than 30 minutes. One outage impacted one customer and the other outage impacted six customers. Murphy encouraged the Board to ask questions regarding the water main replacement projects. Chairman Potter stated that it is his understanding that staff is aggressively addressing projects, but in a prudent manner. He noted the efforts to update the Water Master Plan (plan), pursuing projects that have been identified as weak areas, and that the fiscal year 2018 budget reflects that desire to address concerns. Murphy stated that Potter was correct in his understanding, and went on to explain what activities are performed to complete these projects. Murphy noted that the current water reserves are healthy enough to move forward with some of the projects the plan identified. Last year Murray, Smith & Associates, the engineering firm who developed the plan for Canby Utility, moved the growth factor out ten years based on current population growth data. This allows staff more time to focus on system improvement projects. Potter commented on the need for creating a balance between how much of the work is to be done using current staff versus hiring contractors. Stuart stated he anticipates that we will use contractors for the majority of the main line replacement projects. Our crew spends much of their time working on maintenance, including service leaks, meter replacements, and service installations, in addition to inspecting the work performed by contractors. Member Brito asked about the overall progress in replacing water mains. Stuart stated that we are in the early stages of replacing our aging infrastructure and would estimate that we have completed only 10-15% to date. Murphy reported on the new building progress. He stated that the project design is finished and is now able to be bid out. Mackenzie previously planned to follow a two-step process, bidding the project out to potential contractors by developing a short list of qualified contractors and then inviting those qualified contractors to bid on the project. During a legal review of the pre-

6 Canby Utility Regular Board Meeting Minutes June 13, 2017 Page 5 of 6 qualification packet, Board Attorney David Doughman determined that we would not qualify for the required exception that would allow us to pre-qualify contractors. Mackenzie has the ability to disqualify any contractor that does not meet the qualifications required for the project by listing qualification criteria in the bid documents. This unexpected change in the bidding process does not impact the schedule and the Invitation to Bid will be posted on June 15. Mackenzie is holding a pre-bid conference for contractors on July 10. Bids will be due July 26 along with a public bid opening process. Staff will present the board with a recommendation for the award of the project at the regular August board meeting. Groundbreaking is planned for mid-september. Member Daniels asked if staff had any information on the status of the city block development project. Murphy stated that we haven t heard anything more and staff has noticed that the building demolition has ceased at the moment. Murphy reported that BBC Steel requested a fire protection system tap. BBC Steel is planning an expansion of its plant and requested new taps and modifications to their water services this past winter. Due to BBC Steel being located outside the city limits, Murphy was uncertain if Canby Utility could grant the request without first annexing into the city limits. Murphy stated that the company informed him that the project will not require expansion of their existing water supply tap that has served them since before the formation of Canby Utility in A new 6- inch fire protection system tap is needed for the project to move forward and will not cause any increase in water consumption except in the event of a fire. Murphy stated that based on this information, he has granted the request. Potter noted that the key points are that BBC Steel has been a customer for a long time, their request won t result in additional water needs, and that there are no adverse system impacts. Murphy reported that OMEU Board of Directors has hired Jennifer Joly as Executive Director. Murphy reviewed her background that qualified her for this role. Murphy stated that her experience should serve us well as the OMEU Executive Director. Most of Joly s experience has been based in Washington, but Murphy feels she will adjust quickly. Murphy completed the performance evaluations in this past month on the Administration/Human Resources Manager and the Finance Manager. Member Maxwell made the *MOTION to go into Executive Session according to ORS (2)(d), (i) to discuss labor negotiations and performance of a public employee. Member Brito seconded, and the motion passed unanimously. The regular meeting was recessed at 8:17 p.m. Staff, with the exception of Dan Murphy, Jim Stuart, and Barbara Benson, was excused for the remainder of the meeting. The regular meeting was reconvened at 9:22 p.m. At this time, Barbara Benson was the only staff member who was present.

7 Canby Utility Regular Board Meeting Minutes June 13, 2017 Page 6 of 6 Chairman Potter stated that the Board has completed its review of General Manager Dan Murphy s job performance for the past year. The Board desires to increase Murphy s annual vacation leave accrual by eighty (80) hours. The Board also desires that Murphy seek Board Chair approval if his vacation will extend beyond 80 hours at one time. Member Daniels made the *MOTION to grant the general manager an additional 80 hours of annual vacation leave and require Board Chair approval if the duration of the vacation extends beyond 80 hours at one time. Member Brito seconded the motion and the roll call ballot was as follows: Member Brito, aye; Member Daniels, aye; Member Maxwell, aye; Member Wagner, aye; and Chairman Potter, aye. The motion passed 5 to 0. Member Maxwell made the *MOTION to Adjourn the Meeting. Member Daniels seconded, and the motion passed unanimously. There being no further business, the meeting was adjourned at 9:24 p.m. Gary Potter, Chairman Robert Maxwell, Member Jack Brito, Member Walt Daniels, Member Todd Wagner, Member Barbara Benson, Board Secretary

8 CANBY UTILITY REGULAR BOARD MEETING MINUTES JULY 11, 2017 Board Present: Board Absent: Staff Present: Others Present: Chairman Potter; Members Maxwell, Daniels, and Brito Member Wagner Daniel P. Murphy, General Manager; Barbara Benson, Board Secretary; Carol Sullivan, Finance Manager; Sue Arthur, Purchasing Agent; Dee Anne Wunder, Customer Service Supervisor ; and Jim Stuart, Operations Manager Tim Dale, City Council Liaison Chairman Potter called the Regular Board Meeting to order at 7:00 p.m. Chairman Potter presented the meeting agenda for consideration. He asked for any additions, deletions or corrections to the meeting agenda and there were none. Chairman Potter presented the consent agenda for approval. Member Brito made the *MOTION to Approve the Consent Agenda, Consisting of the Meeting Agenda, Executive Session Meeting Minutes of June 13, 2017, Write-Offs in the Amount of $493.80, Payment of the Electric and Water Department Bills in the Amount of $887,359.45, with Carry-Ins in the Amount of $2,751.13, for a Total of $890, Member Daniels seconded, and the motion passed unanimously. Chairman Potter asked for citizen input on non-agenda items and there was none. Chairman Potter then asked for any board member comments and there were none. Operations Manager Jim Stuart reported on a mainline water leak that occurred June 30 on 13 th Avenue, between Oak and Pine Streets. Stuart explained the steps his crew took to repair the line. The repair was made while the line was under pressure, which eliminated any need to issue a boil water recommendation to residents. The leak was reported to Canby Utility at approximately 2:30 p.m. and repairs were complete by 6:30 p.m. Member Maxwell asked about the cause of the leak. Stuart explained this section of pipe is a 6 steel line that over the years has deteriorated. The interior and exterior lining of the pipe wears down, exposing the steel to water. Once this occurs, corrosion begins. The steel pipe had two holes about the size of a quarter in diameter that were close together. Chairman Potter asked if this section of the mainline is scheduled for replacement. Stuart stated that it was expected to be replaced in the future, but as a result of the pipe s deteriorated condition, he now plans to move up the

9 Canby Utility Regular Board Meeting Minutes July 11, 2017 Page 2 of 4 replacement to this fiscal year. This project can be swapped with another one that was planned in the current capital budget that is comparable in cost. Stuart also reported on the quarterly system reliability. He stated that the electric system is in fantastic shape due to the utility s commitment to a solid preventative maintenance program. Stuart stated that the outage history has been outstanding, with the exception of one PGE outage to Westcott Substation in May, during a high wind event that caused the loss of the 57kV transmission feed to the substation. Canby Utility s consumer outage experience has been minimal and well below the typical industry standards. Stuart reported that Lisa Berent, our new Office Specialist/Customer Service Representative, started on Monday, July 10. Stuart noted that Berent has already demonstrated that she possesses competent skills and he believes she ll be a strong asset to Canby Utility. Finance Manager Carol Sullivan presented the third-quarter Executive Financial Summary through March Sullivan reviewed the profit resulting from operations and capital contributions year to date. The electric operating profit was $1,969,677 and the capital contributions were $637,929, for a total net income for the electric department of $2,607,606. The water operating profit was $458,788 and the capital contributions were $800,724, for a total net income for the water department of $1,259,512. Sullivan then compared the operations with capital contributions to budget. The electric fund net income was over budget $2,163,878. Sullivan noted the reasons for this budget variance. The operating revenue is slightly over budget and the non-operating revenue is over budget due to the $900,000 sale of the office building. The operation expenses are under budget due to lower purchase power and transmission costs, more labor being capitalized because of construction projects, the vacancy of the Operations Manager and Journeyman Lineman positions, and lower customer conservation payments. She noted capital contributions are over budget due to there being more projects than budgeted. The water fund was over budget $907,665. Sullivan noted the reasons for this budget variance. The operating revenue is above budget due to higher water consumption than what was budgeted. Sullivan noted she uses a low consumption year for the bases of developing the budget. The operating expenses are under budget mainly due to more distribution labor being capitalized and the vacancy of the Operations Superintendent and Utility Worker positions. The capital contributions are over budget mainly due to more water system development charges being collected due to construction of a large multi-family apartment complex. Sullivan stated that the electric fund reserves are over target by $2,011,338 and the water fund reserves are over target by $1,157,002, she then provided a brief explanation for the reason each fund is over target. Administration/Human Resources Manager Barb Benson presented the Board planning calendar for the new fiscal year. The calendar includes known dates for activities such as scheduled board meetings, office holiday closures, and the employee recognition event. This calendar is in draft format and is subject to change throughout the year. Benson asked for any changes to the draft but there were none. Chairman Potter invited board members to contact Benson directly with

10 Canby Utility Regular Board Meeting Minutes July 11, 2017 Page 3 of 4 any items they would like to see included in the calendar, otherwise it will be considered approved. General Manager Dan Murphy reported the progress of the new building on the city block. Mary Hanlon sent Murphy an today stating that they have received their construction permit and will proceed with construction of the new development. The demolition work that has been underway was under a separate permit. Hanlon stated that Canby Utility will soon have access to use the drive-through within the next few days, after having been blocked off due to the construction work being done. Murphy and Adam Olsen of Mackenzie Architects held a pre-bid conference on June 28. There were seven general contractors in attendance and Olsen was pleased with the level of interest. In Olsen s experience it is typical for the number of bids submitted to exceed the number of contractors who attend the pre-bid conference, and it was encouraging that there will be good competition in the bidding process. Murphy noted that Mackenzie has been receiving a lot of inquiries from contractors since the bid packet has been distributed, which indicates the good level of activity in the bidding process. Murphy stated that the bidding deadline is going to be extended three weeks. The reason for the extension is due to not having received feedback from Clackamas County on the structural design review from the building application process. This information must be given to the contractors in order for them to prepare their bids. The deadline has been moved from July 26 to August 16. The new deadline will push back the selection and board approval to the regular September 12 board meeting. Groundbreaking for the project and the completion date will also change. Mackenzie is working with Board Attorney David Doughman to update the bid documents to address the extension. The county s review is anticipated to be completed next week. Member Maxwell asked if we are required to take the lowest-cost bid, and Murphy stated that we would accept the lowest bid as long as the contractor meets the required qualifications necessary for the project. Discussion ensued about the county s review timeline, our ability to remain in this existing location for as long as needed, and the nature of the questions during the pre-bid conference. Murphy also reported there were two large expenditures by Veolia Water in the June accounts payable report. One expense for $17,682 was to rebuild a large raw water intake pump that is used to deliver river water to the treatment plant. In December, it was discovered that the motor was experiencing excess vibration and was taken out of service. Testing and analysis on the motor determined it was necessary for the pump to be rebuilt. Murphy noted that the pump rebuild needed to be completed before we reach our peak water demands to ensure we were up to full capacity for drawing water from the river. This work was not anticipated but necessary to ensure enough capacity for the summer months. The other large expenditure was for a SCADA software and hardware upgrade. This project was originally planned for in fiscal year 2016 but had not yet been addressed. It is also identified in the Water Master Plan. The SCADA upgrade maintains our licensing and insures that that the system continues to be supported. Murphy noted that the project was completed at a cost of $19,822, which is actually less than what the Water Master Plan anticipated.

11 Canby Utility Regular Board Meeting Minutes July 11, 2017 Page 4 of 4 Murphy reported that effective July 17, 2017 we are making a change to our after-hours dispatch service. Answer Ally, based out of Sandy, Oregon, will take over answering our after-hours dispatch calls for Business Connections. Purchasing Agent Sue Arthur and Operations Manager Jim Stuart met with Answer Ally and were impressed with their experience, as well as their upgraded software and equipment. Answer Ally s manager has extensive experience in utility dispatching, including dispatching for PGE. Their company training program includes teaching dispatchers how to thoroughly vet calls to gather complete details on the reason for the call and gage the level of urgency. This practice will likely eliminate unnecessary overtime. In addition to that potential cost savings, the monthly service charge is expected to be lower than that of the current answering service. Stuart noted that Business Connection had been contacting our employees after normal work hours for more than what was necessary based on the nature of the calls. A brief discussion ensued regarding the differences between the two companies. Member Daniels made the *MOTION to Adjourn the Meeting. Member Maxwell seconded, and the motion passed unanimously. There being no further business, the meeting was adjourned at 7:33 p.m. Gary Potter, Chairman Robert Maxwell, Member Jack Brito, Member Walt Daniels, Member Todd Wagner, Member Barbara Benson, Board Secretary

12 MEMORANDUM August 3, 2017 TO: FROM: SUBJECT: Chairman Potter, Member Maxwell, Member Daniels, Member Brito, and Member Wagner Carol Sullivan, Finance Manager Water System Development Charge Annual Inflationary Adjustment Recommendation: Adopt Resolution 291 adjusting Canby Utility s Water System Development Charges by the prescribed inflationary amount effective September 1. Background: Each year the Board is presented with a staff recommendation regarding Canby Utility s Water System Development Charges (SDC) based on an inflationary index adjustments. SDC s account for new development impacts on water infrastructure needs and planning. When a new water connection is made residential or commercial the SDC must be paid to buy-in to the existing infrastructure and the capital reserves planning for future water needs. Infrastructure costs, both existing and future, are calculated in our 2010 Water Master Plan. The amount of a SDC paid corresponds to the size of meter requested, based on water consumption needs calibrated to a single dwelling unit equivalent (DUE). Canby Utility s SDC methodology allows for an annual inflation adjustment to the charges using the Engineering News Record s Construction Cost Index. The Fiscal Year 2018 inflation factor increase is 3.87% for one DUE or $143. Please see the attached Resolution 291 Exhibit A. Staff has notified a list of interested parties regarding the recommendation to adjust the SDC s, giving them an opportunity to comment, and an invite to the August 8 th Board meeting. Staff will be available to answer questions.

13 RESOLUTION NO. 291 A RESOLUTION OF THE CANBY UTILITY BOARD ADOPTING REVISED WATER SYSTEM DEVELOPMENT CHARGES REFLECTING ANNUAL ADJUSTMENTS FOR INFLATION, REPEALING RESOLUTION NO The CANBY UTILITY BOARD resolves as follows: Section 1. The 2004 Water System Development Charge methodology contains a method of annual adjustment of Water System Development Charges (SDCs) to account for inflation as determined by a known and recognized index, the Engineering News Record Construction Cost Index (CCI). Section 2. The purpose of this Resolution is to apply this index to reflect changes in the index as a proxy for construction-related inflation between now and the last Water Master Plan update in Section 3. Applying the CCI index change to the current SDC schedule results in inflationindex adjusted Water SDCs as reflected in Exhibit A attached hereto and incorporated herein by reference. The adjusted Water SDCs are set forth in Exhibit B attached hereto and incorporated herein by reference. Section 4. Resolution No. 285 is hereby repealed. Section 5. Effective date. This Resolution shall become effective on the 1st day of September, THIS RESOLUTION IS ADOPTED BY THE CANBY UTILITY BOARD THIS DAY OF AUGUST, 2017 Gary Potter, Chair Todd Wagner, Member Walt Daniels, Member Jack Brito, Member Robert Maxwell, Member Barbara Benson, Board Secretary RESOLUTION NO. 285

14 RESOLUTION NO. 291 Exhibit A System Development Charge - Proposed Adjustment Summary Class / Current Proposed % Meter Size DUEs SDC SDC Change Change Residential 5/8 x 3/4 Inch 1.0 $ 3,694 $ 3,837 $ % 1 Inch 1.6 5,910 6, % Non Residential 5/8 x 3/4 Inch 1.1 $ 4,063 $ 4,221 $ % 1 Inch 2.3 8,496 8, % 1.5 Inch ,407 14, % 2 Inch ,724 36,068 1, % 3 Inch ,347 53,334 1, % 4 Inch ,358 78,275 2, % Irrigation 5/8 x 3/4 Inch 1.6 $ 5,910 $ 6,139 $ % 1 Inch ,686 21, % 1.5 Inch ,578 20, % 2 Inch ,291 31,463 1, % 3 Inch ,347 53,334 1, % Multi Family (SDC Per DUE) 0.7 $ 2,586 $ 2, % Qualifying Small-lot Planned Unit Development (SDC Per DUE) 0.7 $ 2,586 $ 2,686 $ % Note: The Water System Development Charge will increase by $143 for a 1.0 Dwelling Unit Equivalent (DUE) and by a factor of that amount for all customer classes and meter sizes based upon results of the Red Oak Consultant's study.

15 RESOLUTION NO. 291 Exhibit B System Development Charge - Recommended Adjustment Summary Class Residential Non Residential Irrigation Meter Size SDC 5/8 x 3/4 Inch $ 3,837 1 Inch 6,139 5/8 x 3/4 Inch $ 4,221 1 Inch 8, Inch 14,964 2 Inch 36,068 3 Inch 53,334 4 Inch 78,275 5/8 x 3/4 Inch $ 6,139 1 Inch 21, Inch 20,336 2 Inch 31,463 3 Inch 53,334 Multi-Family SDC per Dweling Unit $ 2,686 Qualifying Small-lot Planned Unit Development SDC per Dwelling Unit $ 2,686

16 MEMORANDUM August 8, 2017 TO: FROM: SUBJECT: Chairperson Potter, Member Maxwell, Member Daniels, Member Brito, and Member Wagner. Dee Anne Wunder, Customer Service Supervisor Annual Customer Account Aging Report I have attached the Annual FY17 Aging Report for your review. This report includes a 13 month history from June 2016 through June I will answer any questions the Board may have at the meeting. 154 NW First Avenue PO Box 1070 Canby OR Tel: Fax:

17 AGINGS-PRIOR 13 MONTHS JUNE 2017 Category/ 1-30 % of % of % of % of Over 121 % of Total Balance % of Date days old Total days old Total days old Total days old Total days old Total Total Electric: June 2017 $ 472, % $ 144, % $ 16, % $ 3, % $ 1, % $ 636, % May 2017 $ 421, % $ 94, % $ 13, % $ 2, % $ % $ 533, % Apr 2017 $ 485, % $ 155, % $ 13, % $ 1, % $ % $ 656, % March 2017 $ 585, % $ 144, % $ 16, % $ 1, % $ % $ 748, % Feb 2017 $ 559, % $ 137, % $ 8, % $ % $ % $ 705, % Jan 2017 $ 665, % $ 143, % $ 5, % $ 1, % $ % $ 814, % Dec 2016 $ 477, % $ 80, % $ 10, % $ % $ % $ 569, % Nov 2016 $ 431, % $ 94, % $ 6, % $ 1, % $ % $ 534, % Oct 2016 $ 394, % $ 133, % $ 9, % $ % $ % $ 538, % Sept 2016 $ 346, % $ 93, % $ 5, % $ % $ % $ 446, % Aug 2016 $ 415, % $ 101, % $ 6, % $ 1, % $ % $ 524, % July 2016 $ 452, % $ 126, % $ 5, % $ 1, % $ % $ 586, % June 2016 $ 404, % $ 70, % $ 7, % $ % $ % $ 482, % Water: June 2017 $ 154, % $ 35, % 2, % $ % $ % $ 191, % Mary 2017 $ 93, % $ 21, % 1, % $ % $ % $ 116, % Apr 2017 $ 98, % $ 34, % 1, % $ % $ % $ 135, % March 2017 $ 108, % $ 26, % 2, % $ % $ % $ 138, % Feb 2017 $ 94, % $ 23, % 1, % $ % $ % $ 120, % Jan 2017 $ 98, % $ 27, % 1, % $ % $ % $ 128, % Dec 2016 $ 71, % $ 18, % 4, % $ % $ % $ 95, % Nov 2016 $ 93, % $ 26, % 2, % $ % $ % $ 123, % Oct 2016 $ 128, % $ 36, % 4, % $ % $ % $ 169, % Sept 2016 $ 128, % $ 36, % 2, % $ % $ % $ 167, % Aug 2016 $ 184, % $ 36, % 2, % $ % $ % $ 223, % July 2016 $ 213, % $ 50, % 1, % $ % $ % $ 265, % June 2016 $ 120, % $ 21, % 1, % $ % $ % $ 142, % DWunder