PLEDGE OF ALLEGIANCE PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY COMMISSIONERS MEETING ELECTION OF COMMISSION OFFICERS DRAFT AGENDA January 8, 2019 4:30 PM DESIGNATION OF COMMISSION REPRESENTATIVES Washington PUD Association (WPUDA) Public Utility Risk Management Services (PURMS) and Enduris Skagit Council of Governments (SCOG) CONSENT AGENDA 1. Approval of Agenda 01/08/19 2. Approval of Minutes 12/11/18 Commission Meeting 3. Ratification of Vouchers 12/18/18; 12/26/18 4. Approval of Vouchers 01/08/19 5. Project Acceptance South Norris Street, Burlington Freeway Storage (Burlington) YMCA Fire Line South LaVenture Road (Mount Vernon) 6. Modification to Existing ESRI GIS Mapping Software Licensing Agreement TREASURER S REPORT November 2018 AUDIENCE COMMENTS OLD BUSINESS 7. Manager s Report 8. Quarterly Report Customer Service Department NEW BUSINESS 9. Policy #1002 Final Short Term Disability Benefit - Ratify 10. Water Policy Manual Housekeeping Revisions Appendix A, Tables A-1 through A-9; Section 4.2.3 - Ratify 11. Port of Skagit County Invoice-Fiber Optic Cable Size Increase (Chuckanut Interchange) MISCELLANEOUS COMMISSIONER COMMENTS ADJOURNMENT JUDY RESERVOIR ELEVATION
Agenda Item #2 MINUTES OF THE REGULAR MEETING OF THE COMMISSION PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY, WASHINGTON December 11, 2018 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 December 11, 2018. 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; Peter Gilbert, Attorney, Mark Handzlik, Engineering Manager, Sally Saxton, Treasurer and Kim Carpenter, Clerk of the Board; Audience: Judy Littlefield, Diane Robertson, Les Walker; Jason & Haley Graham; District Employees: Mike Fox, Kathy White, Gary Chrysler, Kevin Tate, Mark Semrau, Brian Henshaw, Bill Trueman, Chris Shaff, Chris Zemp and Luis Gonzalez. Commissioner Littlefield led the Pledge of Allegiance. Commissioner Littlefield moved to approve the Consent Agenda for December 11, 2018: 1. Approval of Agenda 12/11/18 2. Approval of Minutes 11/27/18 Commission Meeting 3. Ratification of Vouchers 12/04/18 No. 2831 Voucher Nos. 14189-14259 ($154,863.16) 4. Approval of Vouchers 12/11/18 No. 2832 Voucher Nos. 14260-14324, Payroll Check Nos. 25164-25246 ($553,852.50) No. 2833 Voucher No. 14325 ($22,841.75) 5. Project Acceptance Woodside Division 6 &7 (Mount Vernon) Washington Street Waterline, Pat Wardell (Mount Vernon) Mount Vernon YMCA Hoag Road and YMCA Off-site Water Improvement (Mount Vernon) Bentley Place Multi-family, North Township Road (Sedro-Woolley) The motion passed. There were no audience comments. Under Old Business: 6. Manager s Report - Manager Sidhu reported on the following: The Drinking Water Task Force met in the Aqua Room yesterday for the last meeting of the year. DOE proposed four studies to better define where issues are with exempt wells and to allow the Task force to focus on solutions. The group discussed meeting again prior to the beginning of the legislative session on January 14. Discussion ensued. District fees and charges itemized in Appendix A of the Water Policy Manual are being revised. Construction Cost Index (CCI) will be 0.8% Commission Meeting 1 December 11, 2018
Agenda Item #2 after originally being estimated at 7%. The appendix will be updated and brought before the Commission for ratification at the Commission meeting of January 8. 7. Quarterly Report Human Resource Department HR Manager White presented the quarterly report for Human Resources including updates regarding staffing, bargaining unit negotiations, policy and AP&P revisions, goals, upcoming safety policies, employee training day and in house scheduling of Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis, and updating job descriptions. Commissioner Berg asked what time employee training day begins; HR Manager White replied 8:00 AM. 8. SkagitNET, LLC Operating Agreement Update Manager Sidhu stated that items sent to the Commission for review included a letter proposed reversing the roles of Treasurer and Auditor, the updated Operating Agreement and proposed Interlocal with the Port of Whitman and asked if the Commission had any comments. Commissioner Littlefield stated that item #8 6.4 in the agreement did not read right and suggested a change. Commissioner Berg moved to approve the SkagitNET Plan of Operations Document. The motion passed. Commissioner Berg moved to authorize the General Manager to sign the change in Treasurer/Auditor roles document. The motion passed. Manager Sidhu stated that if the Commission has any other comments to get back to him and he will pass them along to IT Manager Chrysler and Sara Young, Port Director of Planning and Facilities. Under New Business: 9. Software Project Schedule and Contract Modification with Harris Computers Systems Manager Sidhu reviewed the project schedule and proposed contract modification. Commissioner Berg moved to authorize the General Manager to execute a contract modification with Harris Computer Systems for configuration work related to the conversion of the District s fixed assets in the amount of $82,220.68. The motion passed. 10. Short Term Disability Benefit Policy Revisions Action Manager Sidhu stated that the policy revisions were presented and adopted at the last meeting and submitted to the state. The state replied with comments and requested revisions which are included in the updated draft in Commission meeting notebooks. Manager Sidhu requested authority outside of this meeting to finalize the policy by year end and subject to ratification at a meeting in January. Commissioner Littlefield moved to approve and authorize the General Manager to sign Policy #1002 Short Term Disability Benefit with minor material changes requested by the State Employment Security Department (ESD), subject to ratification at the next regular Commission meeting in January. The motion passed. 11. Resolution No. 2260-18 Establishing Positions and Salary Ranges Action Manager Sidhu presented Resolution No. 2260-18, A RESOLUTION OF THE COMMISSION OF PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY, Commission Meeting 2 December 11, 2018
Agenda Item #2 WASHINGTON, ESTABLISHING POSITIONS AND SALARY RANGES FOR NON-UNION STAFF AND SUPERVISING EMPLOYEES. Commissioner Berg moved to adopt Resolution No. 2260-18 as presented. The motion passed. 12. System Development Fund (SDF) Request Veteran s Park Park Development Manager Sidhu presented a request for use of SDF for conduit installation in conjunction with the Veteran s Park Development Project for future Supervisory Control and Data Acquisition (SCADA) needs of the District. Commissioner Berg moved to authorize the use of up to $8,500 from SDF for the installation of 3-inch HDPE fiber optic conduit in conjunction with water system line extension improvements required of the Veteran s Park Project in Sedro-Woolley. The motion passed. 13. Hearing-Customer Service Issue Jason Graham Manager Sidhu stated that Mr. Graham requested a hearing under the Water Policy Manual Section 2.8 to dispute a decision requiring installation of a RPBA device on his plumbing system his property which contains a laundromat and residential units. Commissioner Berg stated that the Commission decision under 2.8 is binding and the burden of proof is on Mr. Graham. Mr. Graham presented his position Engineering Manager Handzlik presented a rebuttal on behalf of the District. Discussion ensued regarding various issues associated with cross connection control protection and access to the premises by District staff for inspection. Commissioner Berg moved to table the issue until January 8 to allow for inspection of the property and that the compliance timeframe be similarly extended in the letter to reflect the stay of this process for completion of the inspection. The motion passed. 14. Recognition of Commissioner Robertson s 18 Years of Service at Skagit PUD Manager Sidhu thanked Commissioner Robertson on behalf of the District s customers and employees for his 18 years of service and highlighted the significant District projects he has been involved with. He stated the District will miss his depth of knowledge, not just about the District but regarding issues on the state level as well. Commissioners Littlefield and Berg commented positively regarding serving with Commissioner Robertson and his passion and dedication to the District. Commissioner Robertson thanked everyone and stated that he is proud to have been involved with long term planning for the District. Although the Commission sets policy he commended the work and effort of employees, as plans could not come to fruition without the employees, regardless of who sits in his chair. Commissioner Berg asked that Commissioner Robertson not be shy, but to come back periodically. Manager Sidhu presented Commissioner Robertson with a glass service award in honor of his service. At this time, President Robertson recessed the regular meeting to go into executive session per RCW 42.30.110(b) regarding acquisition of real estate for an approximate duration of 10-15 minutes. He stated that there may be a decision made when the meeting reconvenes, if audience members would like to return. Commission Meeting 3 December 11, 2018
Agenda Item #2 The executive session convened at 6:32 PM in Manager Sidhu s office. President Robertson reconvened the regular meeting of the Commission at 6:39 PM in the Aqua Room. Commissioner Littlefield moved to authorize the General Manager to acquire the necessary easements for the Judy Reservoir to Mount Vernon Transmission Pipeline from Raymond Sundstrom and Vicki Tisdel for the negotiated amount of $10,000. The motion passed. Having no further business to come before the Board, Commissioner Robertson moved for adjournment. The motion passed and the meeting of December 11, 2018 was adjourned at 6:40 PM. Respectfully submitted: Kim Carpenter Clerk of the Board Commission Meeting 4 December 11, 2018
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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Interest Rate PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY TREASURER REPORT AS OF NOVEMBER 30, 2018 Balance of District Funds Investment of District Funds % 32% General Revenue Fund $6,195,697 Local Govt Investment Pool $16,083,465 83% 1% Capital Project Fund 220,324 Cash 821,670 4% 36% Construction Fund 7,024,943 Govt Agencies/ Securities 2,500,000 13% 18% System Development Fund 3,408,117 0% 6% Debt Service Fund 1,133,986 7% Bond Funds 1,422,068 100% Total Funds $19,405,135 Total Funds $19,405,135 100% District Fund Segments General Revenue Fund Bond Funds Capital Project Fund Debt Service Fund System Development Fund Construction Fund Investment of District Funds Govt Agencies/ Securities Cash Local Govt Investment Pool ## Rates of Investment Interest Received Market Value vs. Face Value of Government Securities 2.5 2 1.5 1 0.5 FFCB FNMA LGIP FHLMC RFC FNMA 1,000,000 990,000 980,000 970,000 960,000 500,000 490,000 480,000 470,000 460,000 Fed Farm Credit Bank (mat 2/18) Fed Home Loan Mtg Corp (mat 7/18) Fed Natl Mtg Assn (mat 10/19) Resolution Funding Corp (mat 7/20) Face Value 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 950,000 450,000 Fed Natl Mtg Assn (mat 2/19) $500,000
PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY TREASURER REPORT For the month ending November 30, 2018 2017 2016 2015 SYSTEM REVENUE FUND DEVELOPMENT CAPITAL PROJECT FUND FUND DEBT SERVICE FUND Capital Projects Restricted Debt Reserve Bond Sinking Bond Reserve COMBINED COMBINED COMBINED COMBINED Resources: External Revenue: Water Customer Receipts 1,933,109 1,933,109 1,595,325 1,606,284 1,402,487 System Development Fees 58,380 58,380 218,978 98,567 28,700 Capital Contributions 55,810 55,810 102,531 141,494 36,148 Grants 0 0 0 0 0 LUD Assessments, Interest, Penalties 20,847 20,847 14,246 21,508 27,699 Investment Income 5,388 404 14,384 5,863 2,982 78 1,837 30,935 8,124 3,326 1,064 Non-Operating Revenues 118,482 118,482 2,342 29,371 9,603 Total External Revenue 2,112,789 404 14,384 64,243 2,982 20,925 1,837 2,217,564 1,941,546 1,900,550 1,505,701 Debt Proceeds: Debt Proceeds - DWSRF Loan Draws 0 0 0 0 Debt Proceeds - Dept. of Ecology Loan 0 0 0 0 0 Debt Proceeds - Bonds 0 4,200,000 0 0 Total Debt Proceeds 0 0 0 0 0 0 0 0 4,200,000 0 0 Transfers from Other Funds 1,000,920 0 0 0 252,348 0 0 1,253,267 263,132 285,981 259,894 Total Revenue 3,113,709 404 14,384 64,243 255,329 20,925 1,837 3,470,831 6,404,678 2,186,531 1,765,595 Operating Expenditures: Operations and Maintenance 997,806 997,806 941,018 918,589 832,903 Utility and Excise Taxes 107,201 107,201 102,606 85,345 83,454 Total Operating Expenditures 1,105,006 0 0 0 0 0 0 1,105,006 1,043,624 1,003,934 916,357 Capital Expenditures: Capital Projects 151,026.29 0 821,983 973,009 1,212,401 1,655,057 250,481 Total Capital Expenditures 151,026 0 821,983 0 0 0 0 973,009 1,212,401 1,655,057 250,481 Debt Service Payments: Interest Expense 234,695 234,695 0 0 0 Federal Tax Credit for 2009B Bonds 0 0 0 0 0 Principal Payments 766,225 766,225 0 0 0 Total Debt Service Payments 1,000,920 0 0 0 0 0 0 1,000,920 0 0 0 Transfers to Other Funds 252,348 0 0 0 1,000,920 0 0 1,253,267 263,132 285,981 259,894 Total Expenditures 2,509,300 0 821,983 0 1,000,920 0 0 4,332,203 2,519,157 2,944,972 1,426,732 Increase (Decrease) in Fund Balance 604,409 404 (807,599) 64,243 (745,591) 20,925 1,837 (861,372) 3,885,521 (758,441) 338,863 Services sold: ERU's 12 25 22 7 Services 12 28 20 6 Re-Activations (under 10 years) 1 3 8 1 Re-Activations (over 10 years) 0 0 0 0
PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY TREASURER REPORT For the eleven months ending November 30, 2018 91.67% YTD 2017 YTD 2016 YTD 2015 REVENUE FUND SYSTEM PERCENTAGE ANNUAL DEVELOPMENT OF BUDGET CAPITAL PROJECT FUND COMBINED BUDGET FUND DEBT SERVICE FUND REALIZED Capital Projects Restricted Debt Reserve Bond Sinking Bond Reserve COMBINED COMBINED COMBINED connections: 25,878 25,575 25,394 25,142 Resources: External Revenue: Water Customer Receipts 21,289,659 21,289,659 22,889,533 93.01% 19,717,763 17,172,261 16,552,302 System Development Fees 1,562,741 1,562,741 1,100,000 142.07% 1,487,216 1,212,085 1,161,801 Capital Contributions 1,487,131 1,487,131 1,319,000 112.75% 1,458,047 1,209,886 985,850 Grants 412,950 412,950 427,500 96.60% 0 87,341 0 LUD Assessments, Interest, Penalties 172,093 172,093 113,400 151.76% 240,813 187,603 253,990 Investment Income 55,183 2,041 137,832 49,236 27,603 1,230 12,568 285,693 78,200 365.34% 108,265 53,138 8,903 Non-Operating Revenues 177,798 177,798 45,000 395.11% 189,373 133,151 183,171 Total External Revenue 23,422,721 2,041 137,832 1,611,977 27,603 173,323 12,568 25,388,065 25,972,633 97.75% 23,201,477 20,055,465 19,146,017 Debt Proceeds: Debt Proceeds - DWSRF Loan Draws 2,962,410 2,962,410 300,000 987.47% 3,984,027 824,664 528,286 Debt Proceeds - Dept. of Ecology Loan 1,148,849 1,148,849 1,192,500 96.34% 0 0 0 Debt Proceeds - Bonds 0 2,694,507 0.00% 4,200,000 6,300,000 0 Total Debt Proceeds 1,148,849 0 2,962,410 0 0 0 0 4,111,259 4,187,007 98.19% 8,184,027 7,124,664 528,286 Transfers from Other Funds 3,975,410 220,000 0 0 3,501,440 0 895,510 8,592,360 6,154,796 139.60% 6,670,273 7,159,120 5,712,726 Total Revenue 28,546,980 222,041 3,100,242 1,611,977 3,529,043 173,323 908,078 38,091,684 36,314,436 104.89% 38,055,777 34,339,249 25,387,029 Uses: Operating Expenditures: Operations and Maintenance 11,822,232 11,822,232 12,328,385 95.89% 9,829,223 10,554,850 10,733,301 Utility and Excise Taxes 1,072,735 1,072,735 1,158,120 92.63% 1,001,864 882,897 843,944 Total Operating Expenditures 12,894,967 0 0 0 0 0 0 12,894,967 13,486,505 95.61% 10,831,087 11,437,747 11,577,245 Capital Expenditures: Capital Projects 5,554,951 1,717 3,018,566 248,556 8,823,790 19,900,373 44.34% 11,946,583 7,877,690 6,453,189 Total Capital Expenditures 5,554,951 1,717 3,018,566 248,556 0 0 0 8,823,790 19,900,373 44.34% 11,946,583 7,877,690 6,453,189 Debt Service Payments: Interest Expense 604,684 604,684 866,300 69.80% 410,523 393,192 245,610 Federal Tax Credit for 2009B Bonds (31,601) (31,601) (63,201) 50.00% (33,058) (33,093) 0 Principal Payments 3,447,408 3,447,408 3,416,669 100.90% 2,934,306 2,395,941 1,370,941 Total Debt Service Payments 4,020,491 0 0 0 0 0 0 4,020,491 4,219,768 95.28% 3,311,771 2,756,040 1,616,551 Transfers to Other Funds 4,396,950 0 0 220,000 3,812,410 163,000 0 8,592,360 6,154,796 139.60% 6,670,273 7,159,120 5,712,726 Total Expenditures 26,867,359 1,717 3,018,566 468,556 3,812,410 163,000 0 34,331,608 43,761,442 78.45% 32,759,714 29,230,597 25,359,711 Increase (Decrease) in Fund Balance 1,679,621 220,324 81,676 1,143,421 (283,367) 10,323 908,078 3,760,076 5,296,063 5,108,652 27,318 Services sold: ERU's 356 335 231 274 Services 261 274 216 232 Re-Activations (under 10 years) 50 79 82 18 Re-Activations (over 10 years) 0 9 3 0
SKAGIT PUD DEBT REPAYMENT AMOUNTS AS OF NOVEMBER 30, 2018 Senior Lien Bond Debt Department of Ecology Loan Debt Public Works Trust Fund Loan Debt Drinking Water State Revolving Fund Loan Debt Coupon Rates Current Rate Mature Date Beg Bal Interest Rates Mature Date Beg Bal Interest Rates Mature Date Beg Bal Interest Rates Mature Date Beg Bal 2008 Refunding 3.5% - 4.25% 4.25% Jul 2018 $8,835,531 Gilligan Cr Property 2.00% Oct 2038 $1,148,849 2001 SRD 0.50% Jul 2021 $10,000,000 2000 Clearwell 1.50% Oct 2021 $1,803,360 2009B BAB 2.7%* - 3.79%* 3.66% Jul 2029 $3,660,000 2002 WTP Controls 0.50% Jul 2022 $10,000,000 2000 SVV Distribution 1.50% Oct 2021 $704,070 2016 Revenue 2.65% - 10.00% 2.65% Jul 2036 $6,300,000 2012 Josh Wilson Rd 0.25% Jun 2031 $3,342,154 2000 SVV Controls 1.50% Oct 2021 $64,619 2017 Revenue 2.65% - 10.00% 2.65% Jul 2037 $4,200,000 2014 Division St Tank Design 1.00% Jun 2018 $300,000 2001 Transmission Line 1.50% Oct 2022 $1,758,480 2001 WTP Controls 1.50% Oct 2022 $77,520 2015 Division St Tank Const 1.50% Oct 2037 $10,004,050 2018 Mountain View Consol 1.50% $1,224,221 Year Principal Interest Interest Rate Range Principal Interest Interest Rate Principal Interest Interest Rate Range Principal Interest Interest Rate Total *(after 35% tax credit) 2018 0 0 2.65% 4.25% 0 0 0.25% 1.00% 0 0 1.50% $0 2019 660,997 383,541 2.65% 3.72% 13,101 22,977 2.00% 1,281,201 25,115 0.25% 0.50% 766,224 156,264 1.50% $3,309,422 2020 681,615 365,842 2.65% 3.79% 49,626 22,530 2.00% 1,281,201 19,150 0.25% 0.50% 766,225 144,775 1.50% $3,330,963 2021 703,905 344,087 2.65% 3.79% 50,687 21,469 2.00% 1,281,201 13,185 0.25% 0.50% 766,224 133,281 1.50% $3,314,039 2022 720,832 322,318 2.65% 3.79% 51,705 20,450 2.00% 738,777 7,220 0.25% 0.50% 615,909 121,784 1.50% $2,598,995 2023 748,079 300,038 2.65% 3.79% 52,745 19,411 2.00% 176,282 3,966 0.25% 500,202 112,546 1.50% $1,913,271 2024 770,094 277,424 2.65% 3.79% 53,753 18,403 2.00% 176,282 3,526 0.25% 500,203 105,043 1.50% $1,904,727 2025 793,555 252,985 2.65% 3.79% 54,885 17,271 2.00% 176,282 3,085 0.25% 500,203 97,539 1.50% $1,895,805 2026 816,816 228,368 2.65% 3.79% 55,989 16,167 2.00% 176,282 2,644 0.25% 500,202 90,036 1.50% $1,886,506 2027 840,433 203,015 3.79% 10.00% 57,114 15,042 2.00% 176,282 2,204 0.25% 500,203 82,533 1.50% $1,876,826 2028 869,002 177,332 3.79% 10.00% 58,223 13,933 2.00% 176,282 1,763 0.25% 500,203 75,030 1.50% $1,871,768 2029 893,763 149,889 3.79% 10.00% 59,432 12,724 2.00% 176,282 1,322 0.25% 500,203 67,527 1.50% $1,861,143 2030 563,508 122,084 10.00% 60,627 11,529 2.00% 176,282 881 0.25% 500,203 60,024 1.50% $1,495,138 2031 578,648 106,944 10.00% 61,845 10,311 2.00% 176,282 441 0.25% 500,202 52,521 1.50% $1,487,195 2032 593,945 91,647 10.00% 63,062 9,093 2.00% 500,202 45,018 1.50% $1,302,968 2033 610,153 75,439 10.00% 64,356 7,800 2.00% 500,203 37,515 1.50% $1,295,466 2034 626,547 59,045 10.00% 65,650 6,506 2.00% 500,203 30,012 1.50% $1,287,962 2035 643,381 42,211 10.00% 66,969 5,187 2.00% 500,202 22,509 1.50% $1,280,459 2036 660,599 24,993 10.00% 68,304 3,852 2.00% 500,203 15,006 1.50% $1,272,956 2037 267,064 7,176 10.00% 69,688 2,468 2.00% 500,202 7,503 1.50% $854,101 2038 2039 71,088 1,067 2.00% $72,155 $13,042,935 $3,534,378 1,148,849 258,191 6,168,922 84,502 $10,417,620 $1,456,468 $36,111,865 Total Principal Outstanding: $30,778,326 $ Change from previous month: $1,000,920 Drinking Water Loans payments Total Interest Outstanding: 5,333,539 Total Debt Repayment: $36,111,865 2018 Weighted Interest Rate: 2.09%
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