AGENDA. Regular Meeting - 2 September 2014

Transcription

1 Board of Commissioners Barney Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 AGENDA James G. Parker, Manager Regular Meeting - 2 September CALL TO ORDER 2. AGENDA 3. APPROVAL OF MINUTES 3.01 Minutes Regular Meeting of 19 August APPROVAL OF VOUCHERS 4.01 Voucher/Payroll Summary Sheet 4.02 Payment of PUD#1 of Jefferson County Vouchers/Warrants 4.03 Payment of PUD#1 of Jefferson County Payroll 5. ITEMS FROM THE FLOOR that are not listed on the Agenda. 6. COMMISSIONER REPORTS: 7. ACTION ITEMS: 7.01 Citizen Advisory Board succession plan 7.02 PUD BOC motion to terminate RUS Loan Application (B8) 7.03 Temporary building purchase 8. DISCUSSION ITEMS: 8.01 NoaNet PUD working relationship 8.02 Resolution Cancel Warrant 8.03 PUD Budget Power Boost Challenge 8.05 VERA Visit Recommendations/ Discussion 8.06 PUD monetary support of groups, associations, agencies 8.07 Energy Efficiency Program Update PH (360) FX (360) Operations Center & Mailing Address Four Corners Road, Port Townsend, WA Administration Building Chimacum Road Port Hadlock, WA customerservice@jeffpud.org

2 9. MANAGER REPORT 10. COMMISSIONER CALENDAR 11. CORRESPONDENCE Energy Northwest Member Update August Harris Ltr - Gift of Public Funds Mats View Comment Ratepayers Win in DOE Settlement with EN for Fuel Storage August 2014 CAB Minutes 12. ADJOURNMENT PH (360) FX (360) Operations Center & Mailing Address Four Corners Road, Port Townsend, WA Administration Building Chimacum Road Port Hadlock, WA customerservice@jeffpud.org

3 PUBLIC UTILITY DISTRICT NO. 1 of Jefferson County DRAFT August 19, 2014 REGULAR MEETING MINUTES The Regular Meeting of the Public Utility District No.1 of Jefferson County was called to order by the President of the Board of Commissioners at 5:16 p.m. Meeting was held at Olde Quaker Church, Quilcene, Washington Commissioners and staff present were: Wayne King, President Ken McMillen, Vice-President Barney Burke, Secretary James Parker, District Manager Bill Graham, District Resource Manager Kevin Streett, District Electrical Superintendent Michael Legarsky, District Finance Director Kate Pike, Brisa Services AGENDA After introductions the Agenda was approved as submitted. APPROVAL OF MINUTES MOTION: By Commissioner McMillen, Second by Commissioner Burke, carried unanimously, to approve the Regular Meeting Minutes of August 5, 2014 as submitted and distributed. APPROVAL OF VOUCHERS MOTION: By Commissioner McMillen, Second by Commissioner Burke, carried unanimously, to approve payment of: Warrants No through in the amount of $ 388, Warrants No through in the amount of 75,609.08

4 Voided Warrants: , , For a Total Warrant Amount of $ 464, PUBLIC COMMENT (for items not listed on the Agenda) None COMMISSIONERS REPORTS Commissioner King August 8, 9,10: Participated in Jefferson County Fair PUD booth August 13-14: Attended, with District Resource Manager, NoaNet workshop August 17: Attended Jefferson County Community Picnic August 21: Expect to attend Jefferson County Fair wrap-up meeting with District personnel August 21: Expect to attend, with District Manager and District Electrical Superintendent, meeting of Quilcene Fire Department Commissioner Burke August 8, 9,10: Participated in Jefferson County Fair PUD booth August 11: Attended meeting of PUD Citizen Advisory Board August 19: Attended Jefferson County Energy Lunch Energy Efficiency Workshop presentation by Mark Miller of the Bonneville Power Administration on how BPA markets power to different kinds of customers. August 19: Attended conservation workshop with District Resource Manager and Cascadia Consulting Group August 27: Expect to attend meeting of Jefferson County/Port Townsend Climate Action Committee August 28: Expect to attend meeting of Peninsula Development District Commissioner McMillen August 8, 9,10: Participated in Jefferson County Fair PUD booth August 19: Attended Jefferson County Energy Lunch Energy Efficiency Workshop August 19: Attended meeting of a Port Townsend group who would like to get production of energy, particularly biomass, moving forward. ACTION ITEMS None DISCUSSION ITEMS a) Quilcene Water Project

5 The Manager presented a memorandum providing information concerning use of Jefferson County Public Infrastructure Funds (PIF) for new water tank construction in Quilcene. The PIF funds, contingent on receipt of matching funds, is being requested as a source for expansion of the existing Quilcene distribution system. While JPUD does not have matching funds, a possibility of State and Federal funding may exist. A proposed water distribution system extension plan and a cost estimate were also submitted. Additionally, the State of Washington has determined that maintenance of fire hydrants can again be done by utility districts. The Manager presented a sample Fire Control Facility Maintenance and Testing Responsibilities Agreement for use with fire protection facilities associated with public water systems. b) PUD Draft Budget The Manager presented the District's 2015 preliminary draft budget, mandated to be on file in the District Office by September 1, There was discussion of the pending rate study, meeting USDA Rural Utilities Service Timed Interest Earned Ratio, discounts for low-income and disabled customers, "levelized" payment plans, and customer service. c) Future PUD Building The Manager presented information on expansion of the Four Corners facility to accommodate staff. Any actual building construction must follow planning, permitting, financing and organizational processes, expected to last until A temporary building is being considered for the interim. Estimates from several temporary building providers was also provided. There was Board discussion on septic needs, the current site plan and on use of solar systems. d) Citizen Advisory Board Succession Plan The Manager presented the current succession plan for the PUD Citizen Advisory Board, as submitted by CAB member Peter Lauritzen at the August 5, 2014 Regular Meeting. With minor revisions, the document will be submitted to the Board for approval at the scheduled September 2, 2014 Regular Meeting. e) PUD Outreach Meeting Schedule The Manager presented a press release noting Regular Meetings to be held other than at the PUD Office. They are: August 19: Quilcene Community Center September 16: Port Townsend Recreation Center October 21: Kala Point Community Center November 18: Port Ludlow Bay Club

6 f) Labor Union Contract Amendment The Manager presented a memo for record regarding modification of the Laborers Local 252 and JPUD due to hirings for positions negotiated between JPUD and IBEW Local No. 77. After discussion the Board took the following ACTION: MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to authorize modification of the Contract between Laborers Local 252 and Jefferson PUD No. 1, clarifying procedures for pay out of Negotiated Benefits. g) Sparling 3 Treatment Project The Manager presented a memo for record regarding a Notice to Proceed (NTP) for the Sparling Treatment Plant construction. Said NTP is to be awarded to JMG Construction LLC upon receipt of all necessary documents. Public Comment None CORRESPONDENCE 1. Letter from legal counsel Malcolm S. Harris to Ted Knauss, Peninsula Law Firm, regarding Mats View Terrace water tank 2. Notice from LeeAnne Bell, NISC Analysis Facilitator, regarding analysis meeting 3. Satisfaction of Judgement by Defendant against Plaintiffs Ted Shoulberg and Charles Haniford EXECUTIVE SESSION The Regular Meeting was adjourned at 6:45 p.m. with Executive Session regarding acquisition of real estate and personnel issues. The Executive Session was adjourned at 7:15 p.m. No ACTION was taken. ADJOURNMENT MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to adjourn the Regular Meeting at 7:16 p.m.

7 September 2 nd, 2014 VOUCHER CLAIM FORMS FOR BILLS TO BE PAID: WARRANTS AMOUNT DATE Accounts Payable: # to # $ 298, /03/2014 Payroll : # to # $ 86, /29/2014 TOTAL BILLS TO BE PAID $ 384, VOIDED CHECKS WIRE TRANSFERRED AMOUNTS AMOUNT DATE N/A TOTAL WIRES N/A

8 PAYROLL APPROVAL PUBLIC UTILITY DISTRICT NO 1 OF JEFFERSON COUNTY 8/29/2014 NUMBER VENDOR NAME AMOUNT DONALD HUBBARD $ KIMBERLY COTTIER-HOLT $ 1, ALYSON DEAN $ 1, DAVID ELIAS $ 1, JEFFREY GORDON $ JANEL GRABNER $ WILLIAM GRAHAM $ 1, ANNETTE JOHNSON $ 1, MARIANNE KLINE $ MICHAEL LEGARSKY $ 2, KRISTOFFER LOTT $ 2, RONAJEAN MCCONNELL $ 1, JAMES PARKER $ 3, TAMARA RUMPEL $ 1, NATHALIA TANTUM $ 1, MARYLOU TATUM $ 2, GERRITT VANOTTEN $ MAUREEN WHIPPY $ 1, LISA YOBBAGY-KELLER $ 1, ADAM YORK $ 1, DYLAN BRACKNEY $ 1, CALEB CHAKOS $ 3, JOSHUA DARLING $ 3, DAVID ELIAS $ 1, CASEY FINEDELL $ 3, BRADLEY FLUX $ 4, TOBY HOWARD $ 1, JORDAN LEAVITT $ 3, BO LEE $ 2, ROBERT PHILLIPS $ 2, ERIK PRYOR $ 1, DONALD STREETT $ 3, ERIC THARALDSEN $ 2, BRIAN VAN NESS $ 2, GERRITT VANOTTEN $ COLTON WORLEY $ 2, RANDALL CALKINS $ 1, JOSE ESCALERA-ESTRADA $ 1, DOUGLAS REEDER $ 2,700.05

9 JERRY RUBERT $ 1, ERIC STOREY $ 3, BERNARD BURKE $ 1, WAYNE KING $ 1, KENNETH MCMILLEN $ DONALD HUBBARD $ TOTAL PAYROLL $ 86,428.35

10 VOUCHER APPROVAL PUBLIC UTILITY DISTRICT NO 1 OF JEFFERSON COUNTY 9/2/2014 NUMBER VENDOR NAME AMOUNT DESCRIPTION JEFFERSON COUNTY TREASURER $ 93, JULY EXCISE TAX JEFFCO EFTPS-BANK OF AMERICA $ PAYROLL TAXES EMPLOYMENT SECURITY $ PAYROLL DEDUCTION BYRON HOWELLS $ 3, ELECTRIC CONSULTING JEFFCO EFTPS-BANK OF AMERICA $ 33, P/R TAX PENINSULA CREDIT UNION $ 1, EMPLOYEE DEPOSITS A T AUTO REPAIR $ VEHICLE MAINTENANCE A+ EQUIPMENT RENTALS $ EQUIPMENT RENTAL CDW GOVERNMENT $ COMPUTER EQUIPMENT CENTURYLINK $ PHONE BILLS CHS $ MISC SUPPLIES CORRECT EQUIPMENT $ MISC SUPPLIES KIM COTTIER HOLT $ SUPPLY REIMBURSEMENT RICHARD/PATRICIA DALEY $ CUSTOMER REFUND DISCOVERY BAY GROUP LLC $ 1, AUGUST CONSULTING DOUBLE "D" ELECTRIC, INC. $ POWER TROUBLESHOOT FERGUSON ENTERPRISES, INC. NW $ MISC SUPPLIES FLUID $ 7, CONSERVATION-FAIR GE CAPITAL $ RICOH RENTAL GENERAL PACIFIC INC $ 14, MISC SUPPLIES GRAINGER $ MISC SUPPLIES GREENTREE COMMUNICATIONS CO INC $ VEHICLE MAINTENANCE H D SUPPLY POWER SOLUTIONS $ 13, MISC SUPPLIES HABITAT FOR HUMANITY $ 9.21 CUSTOMER REFUND HADLOCK BUILDING SUPPLY, INC. $ MISC SUPPLIES JUDITH HAGEN $ CUSTOMER REFUND HENERY HARDWARE $ MISC SUPPLIES TOBY HOWARD $ EQUIPMENT ALLOWANCE IBEW LOCALUNION NO 77 $ 1, UNION DUES-SEPTEMBER INFOSEND, INC $ 5, DATA PROCESSING ELAINE JACOBSEN $ CUSTOMER REFUND JEFFERSON COUNTY PUD $ DEPOSIT REFUND ANNETTE JOHNSON $ TRAVEL REIMBURSEMENT SANDI LEMMON $ DEPOSIT REFUND CASSANDRA LOBATO $ CUSTOMER REFUND SARAH MARTIN $ CUSTOMER REFUND NESCO LLC $ 5, VEHICLE PAYMENTS NEWSDATA CORPORATION $ 1, SUBSCRIPTION RENEWAL NW LABORERS 252 (DUES) $ UNION DUES-SEPTEMBER OFFICE DEPOT $ MISC SUPPLIES OLYMPIC EQUIPMENT RENTALS $ MISC SUPPLIES PACIFIC GROUNDWATER GROUP $ PROFESSIONAL SERVICES

11 PACIFIC UNDERWRITIERS CORP. $ DEDUCTIBLES-CLAIMS SPENCER PATTERSON $ DEPOSIT REFUND PETRICK'S LOCKSMITHS $ KNOB REPAIR PETTY CASH $ REPLENISH ACCOUNT PLATT ELECTRIC SUPPLY $ MISC SUPPLIES PROGLASS, INC $ 1, MISC SUPPLIES PUD #1 $ 1, UTILITY BILLS PURMS JOINT SELF INSURANCE FUND $ LIFE/LTD-SEPTEMBER QUILCENE HENERYS HARDWARE $ MISC SUPPLIES RAIN NETWORKS $ 44, COMPUTER/SERVER EQUIP AARON REED $ DEPOSIT REFUND SHELBY KAY RIERSON $ DEPOSIT REFUND BUAPANG RUDOLPH $ CUSTOMER REFUND SECURITY SERVICES NW, INC. $ ALARM REPAIRS SHOLD EXCAVATING INC $ 5, EXCAVATING DANIEL SMITH $ CUSTOMER REFUND SOLOMON CORPORATION $ 27, MISC SUPPLIES SOS PRINTING $ BUSINESS CARDS MARYLOU TATUM $ UNION DUES REIMBURSE TOYOTA LIFT NORTHWEST $ TRUCK REPAIR TWISS ANALYTICAL LABORATORIES, INC. $ TESTING USA BLUEBOOK $ MISC SUPPLIES UTILITIES UNDERGROUND LOCATION CENTER $ LOCATES MARILYN VALLE $ CUSTOMER REFUND GERRITT VANOTTEN $ UNION DUES REIMBURSE KEN WALL $ CUSTOMER REFUND WESCO RECEIVABLES CORP $ 21, MISC SUPPLIES WESTBAY AUTO PARTS, INC. $ MISC SUPPLIES TOTAL PAYABLES $ 298,438.18

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13 PUD Jefferson County Public Utility District August 29, 2014 Board of Commissioners Barn ey Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 James G. Parker, Manager MEMO FOR PUD BOC SUBJECT: Citizen Advisory Board (CAB) Succession 1. The purpose of this memo is to submit to the PUD BOC an updated version of the CAB succession plan submitted by Pete Lauritzen at the Last PUD Board Meeting (5 August 2014) and reviewed by the PUD BOC at their regular Board Meeting of 19 August 2014 at Quilcene. 2. Facts. a. PUD BOC established a Citizen Advisory Board through resolution b. The CAB has been performing continually since it start-up and has proven to be a very valuable instrument for the PUD BOC. c. Pete Lauritzen has submitted a proposed method for succession of the CAB. d. The PUD BOC reviewed this plan at its 5 and 19 August 2014 regular PUD Board Meeting, with some suggested changes. e. Additions to the plan that were discussed include dismissals, resignations, and open positions 3. Assumption. a. The PUD Board wishes to continue the CAB, but needs to provide for continuity of the CAB, but at the same time allowing for turnover.. b. The PUD Board approved of the proposed succession plan with minor changes. c. The Manager has incorporated those changes on the attached plan. 4. Point of Contact for this memo is the undersigned. Manager Encl 1. Proposed update 2. Resolution Resolution PH (360) FX (360) Chimacum Road/P.O. Box 929, Port Hadlock, WA customerservice@ieffpud.org 310 Four Corners Road, Port Townsend, WA 98368

14 Enclosure 1 (Citizens Advisory Board (CAB) Succession Plan) MEMO FOR RECORD SUBJECT: Succession Plan for PUD Citizens Advisory Board (CAB) 1. The purpose of this memo is to record the amended PUD Citizen Advisory Board CAB Policy for the continued operations and the succession of members. 2. Resolution No , establishes the PUD Citizen Advisory Board "CAB", and Resolution Established PUD policy for establishment of citizen Boards. 3. Resolution No , signed 20 November 2012, provided that the CAB would be established for one year with an automatic renewal for one year and then sunset. 4. Following review the Board has determined they wish for the CAB to continue for an indefinite period of time and therefore wants to provide the following additional conditions and terms for the CAB: a. Term: CAB will be extended for an indefinite period of time or until which time the PUD BOC decides to terminate it. b. Membership terms: 3 years with 1/3 from each District chosen for re-appointed each year. c. Service terms align with the calendar year: January - December d. Initial terms: If a current CAB member desires to quit they can assigned a one year term, otherwise the order for rotation is decided among the three persons in each district. If no decision is made the commissioner of that district will decide. e. Application for new and continuing applicants should be in by November 15 or six weeks before the start of a new year. Existing CAB members up for rotation must reapply in the same manner as new applicants. f. The CAB Chair and Vice-Chair positions are to be elected each January for oneyear terms 5. This extension of the CAB and its member succession plan was passed by rn:otion of the PUD BOC on the 2nd of September 2014 at a regularly scheduled PUD Board Meeting. cnkj~ l%:!r PH (360) FX (360) Chimacum Road/P.O. Box 929, Port Hadlock, WA customerservice@jeffpud.org 310 Four Comers Road, Port Townsend, WA 98368

15 PUBLIC UTILITY DISTRICT NO.l OF JEFFERSON COUNTY, WASHINGTON RESOLUTION NO A RESOLUTION of the Board of Commissioners to establish a Citizen Advisory Board to support the PUD Board of Commissioners WHEREAS, PUD#l of Jefferson County is a Municipal Corporation organized under RCW 54 that desires to improve the way the public relates to it and howthe PUD reaches out to encourage citizen involvement; and WHEREAS, PUD Board feels that the establishment of citizen committees, boards, liaisons, blue ribbon work groups and citizen task forces will accomplish that goal; and WHEREAS, the PUD Board has established procedures and policies governing committees, boards, liaisons, blue ribbon work groups and citizen task force groups established by the PUD Board of Commissioners (Resolution ); and NOW, THEREFORE, the Board of Commissioners of Public Utility District No. I of Jefferson County, Washington does authorize the formation of a Citizen Advisory Board following the following guidance: I) The purpose of the PUD Citizen Advisory Board will be to provide recommendations to the PUD Board of Commissioners on subjects selected by the PUD Board of Commissioners such energy conservation, green energy, citizen outreach and other energy-related topics. 2) This Board would initially be established for one year with an automatic one year extension, after which it would sunset. 3) Membership. Each PUD Board member will assign 3 individuals from their district. to participate on the Board. A forinal process of advertising for volunteers will be instituted. 4) Terms of Office. Initially a one year term of all members, automatically extended to two years should the PUD Board of Commissioners so decide at a regularly scheduled PUD BOC meeting. 5) Relationship to the PUD Board. The Citizen Committee will report directly to the PUD Board. 6) PUD liaison with the committee. PUD Board members will rotate to be in attendance at all Citizen Advisory Committee meetings.

16 7) Time Frame for action. The committee will report quarterly to PUD Board of Commissioners at a regularly scheduled PUD Board meeting. 8) PUD Board Action. The Citizen Advisory Board is strictly advisory. 9) Staffing and Expenses. PUD will provide location for the committee to meet (PUD office) and will provide a minute taker, given enough notice is provided prior to the meeting. A PUD BOC Commissioner will represent the PUD at the meeting and provide support. 10) Meetings of the Citizen Advisory Board are subject to Washington State laws on open meetings and pubic records. ADOPTED by the Commission of Public Utility District No. lof Jefferson County, Washington, at a regular open meeting held this 20th day of November <SZ-~J Barn,~Y Burke President

17 PUBLIC UTILITY DISTRICT N0.1 OF JEFFERSON COUNTY, WASHINGTON RESOLUTION NO A RESOLUTION of the Board of Commissioners to establish a policy for the establishment of citizen boards, liaisons, blue ribbon work groups and citizen task forces. WHEREAS, PUD#l of Jefferson County is a Municipal Corporation organized under RCW 54 desires to improve the way the public relates to it and how the PUD reaches out to encourage citizen involvement; and WHEREAS, PUD Board feels that the establishment of citizen committees, boards, liaisons, blue ribbon work groups and citizen task forces will accomplish that goal; and WHEREAS, the PUD desires to establish procedures and policies governing committees, boards, liaisons, blue ribbon work groups and citizen taskforce groups established by the PUD Board of Commissioners; and WHEREAS, the PUD# 1 Board of Commissioners have reviewed and approved Attachment A to Resolution (COMMITTEES, BOARDS, WORK GROUPS & COMMISSIONS). NOW, THEREFORE, the Board of Commissioners of Public Utility District No. 1 of Jefferson County, Washington does hereby adopt Attachment A to Resolution (COMMITTEES, BOARDS, WORK GROUPS & COMMISSIONS) as the PUD policy for the formation. and operation of PUD Committees. ADOPTED by the Commission of Public Utility District No. lof Jefferson County, Washington, at a regular open meeting held this 1st day of October 2012 Wayne G. King Vice President

18 ATTACHMENT A to PUD Resolution COMMITTEES, BOARDS, WORK GROUPS & COMMISSIONS SECTION 1 Committees. PUD#l of Jefferson County is a Municipal Corporation organized under RCW 54 that has adopted a committee structure to improve the way the public relates to it and how the PUD reaches out to encourage citizen involvement. The procedures governing committees of the PUD, and all boards, liaisons, blue ribbon work groups and citizen taskforce groups established by the PUD Board of Commissioners shall be as follows: (a) All standing committees shall be established or provided by PUD resolution. (Note: these committees are subject to change. No committees are required by state law) (b) All PUD committees, boards, liaisons, blue ribbon work groups and citizens' task force groups and rules or operating procedures thereof shall be established by PUD directive. Such committees shall be subject to periodic review so as to determine whether the committee and its function continue to be appropriate and necessary. (c) Committees, boards, liaisons, work groups and citizen's task force groups shall make a recommendation, when appropriate, on proposed services policies, resolutions and motions within their area of responsibilities or interest, before action is taken recommendation(s) which could lead to final action during the discussion of the business item on the PUD agenda. (d) Appointments shall be made by the PUD Board members subject to PUD Board confirmation. General Rules Applicable to Citizen Advisory Boards SECTION2 Definitions An "Advisory Board" means any Committee or Commission created by the PUD Board to give advice on subjects and perform such other functions as prescribed by the PUD Board. Advisory Board also includes task forces, informal committees, or working groups formed by the PUD Board resolution for short periods of time or for specific tasks. Resolution Attachment A -1 PUD Committees

19 SECTION3 Purpose and Applications The purpose of this section is to establish general provisions applicable to all Advisory Boards. The provision of this resolution shall govern Advisory Boards unless otherwise specifically provided by motion or resolution of the PUD Board, or as may be required by stet law. In establishing an Advisory Board, the PUD Board of Commissioners shall consider the following: 1. Scope of work, and clear task description 2. Term of board- sunset provision 3. Membership, nomination and confirmation process, and residency or other special member requirements 4. Terms of office 5. Relationship of the Board to the PUD Commission (who does Board report to) 6. PUD Board member liaison (if any) 7. Time frames for Board action on tasks 8. Time frames for PUD Board action; for example, periodic review or interim reports 9. Staffing (if any) and expenses, and which PUD Department bears any staffing responsibility or expense for Board 10. Any other matters appropriate to the board's work SECTION 4 Scopes of Work A. Each Advisory Board, when it is formed, will have a specific statement of purpose and function, which will be re-examined periodically by the PUD Board to determine it effectiveness. This statement of purpose, as well as other information regarding duties and responsibilities, will be made available to all members when appointed. B. The PUD Board may determine any specific guidelines or tasks to be referred to the Advisory Board by motion or resolution C. Each Advisory Board shall develop a scope of work, within the jurisdiction and area ofresponsibility consistent with the PUD Board resolution forming the Board. Resolution Attachment A-2 PUD Committees

20 SECTION 5 Memberships, Nomination and Confirmation Process, and Residency Requirements. The number of members and any specific qualifications of each Advisory Board shall be set forth by resolution of the PUD Board of Commissioners. Unless otherwise specifically provided by applicable resolution or motion, or as may be required by state law, the following procedures and requirements shall apply to all members of each Advisory Board. A. Each person at the time of nomination and continuing uninterrupted thereafter while servicing on a Advisory Board, shall be a resident of and /or work in Jefferson County B. Each person to be appointed shall be nominated by a PUD Board of Commission Commissioner for a specific numbered position on each Advisory Board. C. Each person shall be deemed appointed and shall commence service after confirmation by the PUD Board of Commissioners or on the effective date of the previous member's resignation, or on the expiration of the existing term for the position, as applicable. D. Each confirmation motion by the PUD Board of Commissioners shall include ending date and term for the position to which the person is appointed and such information shall be entered into the Council minutes E. At the expiration of a member's term, the member may hold over and continue to serve as a member until the member or a successor is appointed and confirmed by the PUD Board of Commissioners SECTION6 Officers - Identification and Election Each Advisory Board shall elect from its membership a presiding officer who shall be referred to as chairman, chairwoman, or chairperson, as determined appropriate by the Advisory Board, and such officer shall serve for one year, or until the Board discontinues its operation, whichever is shorter. The Advisory Board may elect other officers as it deems necessary and such officers shall be set forth in rules of procedure adopted by the Advisory Board. SECTION7 Quorums, Transaction Business A majority of the appointed members of the Advisory Committee shall constitute a quorum for the transaction of business. An affirmative vote of the majority of a quorum in attendance at any meeting shall be necessary to transact business or carry any proposition Resolution Attachment A-3 PUD Committees

21 SECTIONS Terms of Office and Vacancies Appointments to boards shall be provided for in the resolution establishing or providing for a board. Vacancies shall be filled by the Board of Commissioners for the unexpired term in the same manner as the original appointment. Membership vacancies other than through expiration of term shall be filled for the unexpired term. Any member may be removed by the PUD Board action based on PUD Board decision that removal is in the best interests of the PUD. Removal should not occur for disagreement with an official recommendation of the board or its members. SECTION9 Conflicts of Interest If any members of an Advisory Board conclude that they have a conflict of interest or an appearance of fairness problem with respect to a matter pending before the Advisory Board so that they cannot discharge their duties on such an Advisory Board, they shall disqualify themselves from participating in the deliberations and the decision-making process with respect to the matter. SECTION 10 Liaisons and Representatives PUD Commissioners representative may be available to each Advisory Board for the purpose of providing a constructive relationship between the PUD Board and the Advisory Board without implying direction, review, or oversight of the activities of the Advisory Board. SECTION 11 Procedures, Records, and Minutes Rules of order not specified by statute or PUD resolution shall be governed by Robert's Rules of Order, as the same may be amended or updated. The Advisory Board may adopt supplemental rules of procedure. The Advisory Board shall provide for the taking of minutes and maintaining the records of all regular and special meetings. Any Advisory Board may establish standing or ad hoc committees comprised of Board members to assist in accomplishing its duties and responsibilities. Committee minutes shall be filed with the PUD within 10 days of approval. SECTION 12 Meetings Each Advisory Board shall hold regular public meetings at such times and places as it deemed advisable or as provided for in the resolution establishing the board. All meetings of the entire body and of any subcommittee or taskforce of the Advisory Board shall be subject to all requirements of the Washington Open Public Meetings Act, and shall be open to the public, and shall be held at a public place at a regularly scheduled time, or at a special meeting time following notice as set by the PUD Manager. Notice of all meetings shall be provided for publication. No meeting shall be scheduled without at least 48 hours notice to the PUD's office unless special arrangements are otherwise made with the PUD Manager. Resolution Attachment A -4 PUD Committees

22 SECTION 13 Communications to the PUD Board of Commissioners. Expressions of an Advisory Board's position, recommendation or request for any action shall be in the form of a resolution, motion, or other written communication, setting forth the reasons, facts, policies, and/or findings of the body supporting the communication, and shall be directed to the PUD Board of Commissioners and Manager. Communications from such boards, commissions and bodies to the PUD Board shall be acknowledged by the Board President, who shall state: "So noted for the record", and thereafter the PUD Minute recorder shall make an appropriate notation in the minutes. Should any member of the PUD Board of Commissioners determine that any such communication be officially answered by the PUD Board of Commissioners, the PUD Board President shall place the matter on the agenda under New Business for the cun-ent meeting or any subsequent meeting. SECTION 14 Compensation and Reimbursement of Expenses Members of Advisory Boards shall serve without compensation. Members shall be reimbursed for authorized travel expenses incidental to that service, which are authorized by the PUD Manager or by the PUD Board of Commissioners resolution or motion. Members should seek pre-authorization for any proposed expense. SECTION 15 Lobbying Efforts Lobbying efforts by any Advisory Board on legislative or political matters should first be checked for consistency with existing PUD policy by contacting the PUD Manager. In the event a position is taken that differs from that of the PUD's policy, an Advisory Board cannot represent that position publicly or before another body, for example, the State Legislature or the Board of County Commissioners. An Advisory Body is free to communicate positions to the PUD Board on matters pertaining to the Body's purpose and function. A member of the Advisory Board is not authorized to speak for the Board, unless the Board has expressly authorized the member's communication. An individual member is free to voice a position, oral or written, on any issue as long as it is made clear that the member is not speaking as a representative of the PUD, or as a member of the Advisory Board. Resolution Attachment A-5 PUD Committees

23 September 2, 2014 Board of Commissioners Barney Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 James G. Parker, Manager Mr. Joseph Badin, Director USDA Rural Development Northern Regional Division Stop 1566 (Room 0243, South Building) 1400 Independence Avenue, S.W. Washington D.C Dear Mr. Badin: The purpose of this letter is to formally withdraw our most recent FFB loan request ( B8 ). The PUD had earlier submitted a Guaranteed FFB loan request ( B8 ) in the amount of $5,221,000 to finance remaining project costs for the same period as the previous A8 loan including deficiency amounts for projects underway, along with new projects. The PUD has made major steps to being an effective RUS borrower. We have purchased and are in the process of implementing most modules of the NICS software. Being a water/sewer utility in the pass, and a satisfied RUS borrower, we did not need and were unfamiliar with all the requirements of the electrical industry. We feel that the NISC product will assist in that area. Additionally, because of the cool winter our first year revenues were stronger that anticipated, combined with our RUS principle deferment has allowed us to proceed with improvements without the need to borrow and increase our debt. This may not continue however for now the Board desires to continue without with our own funding. In the future, when we reevaluate our goals and objectives, we will probably have need for another RUS loan, at which time we will submit another application. We apologize and what to thank your staff for taking time to evaluate our B8 application and for their continued patience with our growing pains. If you have any questions, please contact our manager, Jim Parker at Wayne G. King President of the Board PH (360) FX (360) Chimacum Road, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

24 September 2, 2014 Board of Commissioners Barney Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 James G. Parker, Manager MEMO FOR PUD BOC SUBJECT: Cancellation of the RUS B8 Application 1. The purpose of this memo is to propose the PUD BOC that we decline our current B8 loan request with RUS. 2. Facts. a. The PUD made a supplemental loan request of RUS for approximately 5,000,000 dollars for on-going and future improvements. b. When the PUD was conducting its 3 year capital improvement plan it was expected we would need 5,000,000 dollars to make upgrades to the system. Those upgrades include: i. SCADA ii. Coyle 3 phase line iii. Replacement of transformers and poles iv. New transformer/ replacement c. At that time the PUD had minimal reserves and revenue projection was not solid. 3. Assumptions. a. If we requested RUS would forward the funds, however, if we do not do so immediately we are in danger of having to redo. b. If we accept funds will get good terms 28 years 4 percent or less. c. We would be more entrenched in RUS accounting and record keeping d. We would increase our debt and therefore our TIER and other RUS debt ratios, that could result in higher rates. e. The PUD BOC will develop and maintain reserves sufficient to provide for normal operations, emergency operations, and capital replacement. f. Current revenues can meet the requirements of the above. g. The PUD can apply later for additional RUS funds, however, interest rates may be higher, and standards of proof could be higher. h. PUD, due to its large debt, would have to pay higher interest rates if it borrows monies in the future through bonds or loans. i. PUD will want to expend funds in the future on: transformers, reclosers, SCADA, meters, equipment, line replacement. j. PUD will continue to manage the PUD so as to meet RUS requirements and to support system improvements. 4. Discussion. PH (360) FX (360) Chimacum Road/P.O. Box 929, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

25 a. I do not recall a response from you to my August 4 and would like to follow up regarding JPUD s intentions with respect to the B8 loan application. As previously indicated, RUS is supportive of JPUD no matter how you decide to proceed, but we would very much like to close our file on this loan application by the end of the Government s Fiscal Year on September 30. I will be out of the office from September 1 through September 10, so I would appreciate it if you could at least give me an indication of which way you are leaning prior to September 1 so that I can plan my workload for the remainder of September. b. Thank you for your prompt response. If JPUD wishes to withdraw its loan application at this time, I will need a formal letter to that effect signed by your Board President or a board resolution. However, if you still want to proceed with the additional financing I can try to get the requirement for the current financials waived if you provide me a letter explaining why you are not able to produce them at the current time. Whichever way you decide to proceed is fine with us. Overall, JPUD has been a success story as far as RUS is concerned and we will be more than happy to work with you in the future if you have additional financing needs. c. Best of luck to JPUD going forward. RUS will be there to assist in any financing needs you might have in the future. I know your plate is full as it is, but we have a new Energy Efficiency Loan Program where we make a loan to the utility and it can relend the funds to its consumers to make energy efficiency improvements to their homes or businesses. Just something to keep in mind for the future. d. The PUD currently has about 9 to 10 million in our account with the County Treasurer. Most of this is ear marked for projects, reserves, etc.. With the warm weather and our billing format we are just stating even right now. However, with the weather getting cooler our revenues will go back up. I think we can provide good value to our customers and make capital improvements without the RUS monies. If we need later, I would recommend we determine at that time how to proceed. PH (360) FX (360) Chimacum Road/P.O. Box 929, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

26 5. Recommendations. a. PUD BOC sends a formal letter to RUS requesting they stop processing our B8 loan. (see enclosure) b. PUD continues to manage it funds so as to limit rate increases, meet citizen expectations, and develops reserves. 6. POC this Memo is the undersigned James G. Parker, PE Manager Enclosure as PH (360) FX (360) Chimacum Road/P.O. Box 929, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

27 August 29, 2014 Subject: Locate and get quotes for a Mobile Office for 310 Four Corners Road personnel. Objective: Mobile Office will be used to provide a meeting room, break room, and informal office for the line crew personnel. Additionally, 2 each 12' x 12' and 1 each 12' x 24' private offices for support staff will be provided at each end. A single men's and a single women's restroom will be included. I contacted Mobile Mini, Mod Space and Pacific Mobile for bids. Mobile Mini and ModSpace responded with quotes for a 24' x 60' portable office comprising of two 12' x 60' units connected in the middle to form the single building. Included in the quotes are: New paint (inside and outside). Shampooed carpet. Thorough cleaning. Steel steps and landing for each door. Skirting around exterior (below floor grade). Delivery. Building erection and installation. Anchored to ground surface to code. Each unit has a Bard central air system. Miscellaneous fees. ModSpace price complete, not including permits was $65, including tax. Mobile Mini price complete, not including permits was $83, including tax for quote #1. Mobile Mini price complete, not including permits was $104, including tax for quote #2. Rating the three units for wear and tear as they sat before cleaning, painting and shampooing would be: ModSpace-rating would be 7. Mobile Mini #1-rating would be 8. Mobile Mini #2- rating would be 9.

28 If a decision is made to purchase one of these units; a contract would be sent to PUD for signature by our responsible party. Work would begin to prepare unit for delivery (any repairs, painting, shampooing, etc.). This would take 2 weeks to complete. Units would be delivered and erected and installed in place. Units would be tied down and skirting would be installed. Sign off by PUD responsible party when all items are approved. Invoice would be submitted for payment by PUD at next regular meeting. Photos were hard to take, because the units are parked close to each other and many similar units in a big yard. Attached pictures are of the lower priced unit from Mod Space. Monthly rental of any of these units would be approximately $ per month with a One Time charge of $13, for delivery and removal. My recommendation would be to purchase the lower priced unit because of the cost savings, bid laws and that it is not that different than the other units. Please see attachments. Bob.

29 '~ ~ Mods Jace This Offer Created For: JeffersonCounty PUD Date: 08/ Offer#: Offer Expires: 11/6/ Customer JeffersonCounty PUD P. 0. Box 929 WA, Port Hadlock Contact : Bob Phillips Phone : (360) PO No Project No Project Name: : bphillips@jeffpud.org ModSpace Service Center WA-Seattle East Valley Highway Kent, WA Contact : Mark Wissmann Phone : (253) Fax : (253) Mark.Wissmann@modspace.com )_ D 6 ~ 1 ~ D - IO ~1 Delivery Address old PSE yard Port Townsend, WA Offer Type: Fleet Sale Only Modspace Offers You The Ultimate Confidence Pledge Sale Price Asset#: Asset# Asset# SN: A SN: B Sale Price: $ 49, Total Asset Sale price: $ 49, Delivery, Installation & Removal (One-Time Items) Quantity Description Delivery Fuel Surcharge Transportation of Building Transportation of other Installation Anchor Installation Building Installation Sale of Steps Total Amount 2 aluminum stairs Vinyl Skirting Installation Other Seller Processing Fee State Transfer Fee $ $22.50 $24.50 $22.50 $49.00 Setup and Delivery Charges: Total One-Time: Total Tax: $10, $5, Total: $65, Tax rates vary and are determined by the state, local, federal and/ or provincial tax jurisdictions, they are subject to change at any time without notice. Taxes are estimated and will be finalized based upon either the actual delivery address or in accordance with the laws of the various jurisdictions. ' If sales tax exempt, proof of exempt status is required and must be validated by ModSpace prior to contract finalization. Prevailing/ Davis-Bacon Wage Applicable: I No Badging or Access Requirements Applicable: I No Union Labor: I No Page 1

30 ma/j11e Hllillinc. Branch Location: th Ave SE Monroe, WA Phone: Ext Fax: Salesperson: Steve Martin Quotation Page 1 of 2 ma/jile minlinc. The Storage & Office Solution Specialists m! l!ll.!j :... ~ ;:;;;;::.==::::;=:I i: J--r ' ' ' '., - -~~ - -~--,.. : 1.c-~ Customer: Deliver To: Quotation: Sales Order Fleet Sales Jefferson County PUD Jefferson County PUD Number: Four Corners Rd. 310 Four Corners Rd. Date: Port Townsend, WA Port Townsend, WA Ex pi res: Personal Property Expense Double Wide 2 Mobile Office Stairs 2 Delivery/with Pilot Cars Conjoin/Block/level/tie-downs Install Skirting Fuel Surcharge Delivery Delivery one time one time 0.00 one time 0.00 one time Total Price Sales Tax Total Initial Charges y y y y y N N Clarifications: This Quotation is based on the standard terms and conditions of the Mobile Mini Rental or Sale Agreement. Customer is responsible for all taxes, permits, fees, licenses, utiltiy connections, foundation engineering, and the preparation of a level, compact 2000psf soil bearing capacity and accessible site. Mobile Mini does not warrant that the equipment meets any local or state code not specifically listed. Customer must insure all Mobile Mini leased equipment. One period equals four weeks. When scheduling a PICK-UP, we request 10 business days notice.

31 malia RI/Oline. i.com Branch Location: th Ave SE Monroe, WA Phone: Ext Fax: Salesperson: Steve Martin Quotation Page 2 of 2 8' x 20' MOBILE OFFICE 10' or 12' x 44' MOBILE OFFICE 12' x 60' MOBILE OFFICE 12' x 44' DESIGNER SERIES 12' x 60' DESIGNER SERIES 24' x 60' DOUBLE WI DE OFFICE Options: Steps Ramps Awnings Skirting Furniture Security Screens Standard Features Include: Private Offices Entry Lockset and Deadbolt with Latchguard Plate Interior Security Bars Healing, Ventilation and Air Conditioning System Exterior Phone/Data Access Hydraulic Door Closures Fluorescent Lighting Mini Blinds Carpet or Vinyl Flooring Restrooms (see floorplans) Exterior Lights at Doors Recessed French Doors (Designer Serles) Wood Paneled Walls (Mobile Office) Vinyl Wrap Walls (Designer Serles & Double Wide) 1110/Ji/e lllinlinc. The Storage & Office Specialists! mobile ofc

32 1110/Jile minlinc. Branch Location: th Ave SE Monroe, WA Phone: Ext Fax: Salesperson: Steve Martin Quotation Page 1 of 2 m11/jile minlinc. --- mj! The Storage & Office Solution Specialists -- Customer: Deliver To: Jefferson County PUD Jefferson County PUD 310 Four Corners Rd. 310 Four Corners Rd. Port Townsend, WA Port Townsend, WA Quotation: Sales Order Fleet Sales Number: Date: Expires: Qty 60' X 24' Modular office Personal Property Expense Double Wide 2 Mobile Office Stairs 2 Delivery/with Pilot Cars Conjoin/Block/level/tie-downs Install Skirting Delivery Fuel Surcharge Delivery per period one time one time one time 0.00 one time 0.00 one time Total Price Sales Tax Total Initial Charges y y y y y N N Clarifications: This Quotation is based on the standard terms and conditions of the Mobile Mini Rental or Sale Agreement. Customer is responsible for all taxes. permits, fees, licenses. utiltiy connections, foundation engineering, and the preparation of a level, compact 2000psf soil bearing capacity and accessible site. Mobile Mini does not warrant that the equipment meets any local or state code not specifically listed. Customer must insure all Mobile Mini leased equipment. One period equals four weeks. When scheduling a PICK-UP, we request 10 business days notice.

33 ma/jile minlinc. Branch Location: th Ave SE Monroe, WA Phone: Ext Fax: Salesperson: Steve Martin Quotation Page 2 of 2 8' x 20' MOBILE OFFICE.a. I l O' or 12' x 44' MOBILE OFFICE 12' x 60' MOBILE OFFICE 12' x 44' DESIGNER SERIES 12' x 60' DESIGNER SERIES 24' x 60' DOUBLE WIDE OFFICE Options: Steps Ramps Awnings Skirting Furniture Security Screens Standard Features Include: Private Offices Entry Lockset and Deadbolt with Latchguard Plate Interior Security Bars Healing, Ventilation and Air Conditioning System Exterior Phone/Data Access Hydraulic Door Closures Fluorescent Lighting Mini Blinds Carpet or Vinyl Flooring Restrooms (see floorplans) Exterior Lights at Doors Recessed French Doors (Designer Serles) Wood Paneled Walls (Mobile Office) Vinyl Wrap Walls (Designer Serles & Double Wide) llld/ji/e lllill/inc_ The Storage & Office Specialists! mobile ofc

34 m11lia Branch Location: th Ave SE Monroe, WA Phone: Ext Fax: Salesperson: Steve Martin smartin@mobilemini.com Rl/Rlinc. Quotation Page 1 of 2 ma/jile minlinc. The Storage & Office Solution Specialists Customer: Deliver To: Quotation: Rental Mobile Offices Jefferson County PUD Jefferson County PUD Number: Four Corners Rd. 310 Four Corners Rd. Date: Port Townsend, WA Port Townsend, WA Expires: Glty 60' X 24' Modular office per period y Personal Property Expense Double Wide per period y 2 Delivery w/pilot cars one time y 2 Pickup w/pilot Cars one time y 2 Mobile Office Stairs 0.00 per period y Coinjoin, set one time y Knockdown/Prep for Pickup one time y Install Skirting one time y Remove Skirting one time y Fuel Surcharge Delivery Mobile Office 0.00 one time N Security Deposit 0.00 one time N Loss Limitation Waiver per period y Fuel Surcharge Pick Up Mobile Offc 0.00 one time N Total Rental Charges $ Total One Time Charges $ Sales Tax $ Total Initial Charges $ (\\ o i'ji"l< L y F i fl S'"l l'\f\or-l'n.l Clarifications: This Quotation is based on the standard terms and conditions of the Mobile Mini Rental or Sale Agreement. Custo.mer is responsible for all taxes, permits, fees, licenses, utiltiy connections, foundation engineering, and the preparation of a level, compact 2000psf soil bearing capacity and accessible site. Mobile Mini does not warrant that the equipment meets any local or state code not specifically listed. Customer must insure all Mobile Mini leased equipment. One period equals four weeks. When scheduling a PICK-UP, we request 10 business days notice.

35 m11/jia minlinc. Branch Location: th Ave SE Monroe, WA Phone: Ext Fax: Salesperson: Steve Martin Quotation Page 2 of 2 8' x 20' MOBILE OFFICE l O' or 12' x 44' MOBILE OFFICE 12' x 60' MOBILE OFFICE 12' x 44' DESIGNER SERIES 12' x 60' DESIGNER SERIES 24' x 60' DOUBLE WIDE OFFICE Options: Steps Ramps Awnings Skirting Furniture Security Screens Standard Features Include: Private Offices Entry Lockset and Deadbolt with Latchguard Plate Interior Security Bars Heating, Ventilation and Air Conditioning System Exterior Phone/Data Access Hydraulic Door Closures Fluorescent Lighting Mini Blinds Carpet or Vinyl Flooring Restrooms (see floorplans) Exterior Lights al Doors Recessed French Doors (Designer Serles) Wood Paneled Walls (Mobile Office) Vinyl Wrap Walls (Designer Serles & Double Wide) ma/jils minlinc. The Storage & Office Specialists! mobile ofc

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41 September 2, 2014 Board of Commissioners Barney Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 James G. Parker, Manager MEMO FOR RECORD SUBJECT: NoaNet 1. The purpose of this memo is to provide a framework for the PUD BOC to work from for making a decision on how we proceed with our role in telecom in Jefferson County 2. Facts. a. Workshop earlier today. b. Legally PUDs can not sell retail telecom c. PUD uses fiber for its SCADA system d. PUD is member of NoaNet and owns BTOP infrastructure in Jefferson County e. PUD has agreement with NoaNet to operate the PUD infrastructure for 5 years from start of the agreement 3. Assumptions. a. PUD is preoccupied with its water, sewer, and electrical businesses at this time b. PUD will take on responsibility in future. c. PUD and NoaNet can work out terms of management and operations between the two agencies. 4. Discussion 5. Recommendations 6. POC this memo is the undersigned James G. Parker, PE Manager PH (360) FX (360) Chimacum Road/P.O. Box 929, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

42 Dave Siburg President of the Board Linda Gott Vice President of the Board NoaNet Members; As an outcome of the NoaNet Member Workshop held August 13 th and 14 th in Tacoma, Board President and Workshop Facilitator Dave Siburg asked me to put together a questionnaire for members on the Organizational Structure of NoaNet. Tim Nies Secretary of the Board Ernie Bolz Director Rick Dunn Director John Jordan Director Wayne King Director Doug Miller Director Fred Mitchell Director Don Queen Director Greg L. Marney Chief Executive Officer Dave Spencer Chief Operating Officer William R. Kopp Chief Technical Officer Mike Henson Chief Security Officer NoaNet currently has ten members and each is a public utility district or a joint operating agency. Each of the ten members has a designated position on the Board of Directors as well as a Member Representative. The members have a percentage share in NoaNet. Please address the following questions at your entity and come prepared to report during the September 10, 2014 NoaNet Board of Directors Meeting in Tukwila. 1. Is your Utility or JOA satisfied with the existing NoaNet organizational structure (ten public entities, each having a position on the Board, and each member having a percentage share in NoaNet)? 2. If not, would you like to change the one position for each member on the Board arrangement? Please offer your thoughts for reorganization. 3. If the answer to number 1 was no, is the concern your percentage share in NoaNet and if so, would you be willing to sell a portion of your share to one or more of the current members? To new members? 4. If an existing member decides they would like to sell, in a manner yet to be worked out, a portion of their percentage share in NoaNet, would your entity be willing to purchase all or a portion of that amount? 5. Does your entity have any interest in adding other public utility district s (new or returning) as a member of NoaNet, specifics to be worked out later if there is a majority interest from existing members? 6. Does your public utility district or JOA have any interest in adding other public entities such as cities, towns, counties, etc. as a member of NoaNet, specifics to be worked out later if a majority interest from existing members? Thanks for your help in working through these questions and coming prepared at the next NoaNet Board of Directors meeting to provide a report. Doug Miller, NoaNet Board of Directors Financial address: 7195 Wagner Way, Suite 104, Oak Harbor, WA Business address: 5802 Overlook Ave NE, Tacoma, WA Telephone: mobile: gmarney@noanet.net

43 PUBLIC UTILITY DISTRICT NO.1 OF JEFFERSON COUNTY RESOLUTION NO A RESOLUTION of the Board of Commissioners of Public Utility District No. 1 of Jefferson County, Washington ("the PUD"), authorizing Jefferson County Treasurer to cancel an outstanding warrant. WHEREAS, warrants of any municipal corporation not presented within one year of their issue dates shall be canceled by the passage of a resolution of the governing body (RCW ). WHEREAS, the Jefferson County Treasurer has requested authorization to cancel PUD issued Warrant No ; Issue Date: 3/26/13; in the Amount of: $ NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Public Utility District #1 of Jefferson County, Washington, that the Jefferson County Treasurer is authorized to cancel Warrant No in the amount of $ ADOPTED at a Regular Meeting of the Board of Commissioners of the Public Utility District No. 1 of Jefferson County, Washington, held this 23rd day of September, 2014 PUD NO. 1 OF JEFFERSON COUNTY Wayne G King Barney Burke Ken McMillen President Commissioner Commissioner 1

44 IN WITNESS WHEREOF I have hereunto set my hand and affixed the seal of the Corporation this 23 rd day of September 2014 (Corporate Seal) Barney Burke, Secretary 2

45 l SefT U>lt PUD 2015 Preliminary Draft Budget Assumptions This budget is the managers first cut and will be refined based on more accurate informaton and PUD BOC Workshop 1 Same revenues as last year 31 July 2013 to 1 June 2014 Note: see temperture comparison 2 PUD will not change rates prior to end of year; will use COS study and Rate Study to amend budget in future 3 PUD staffing will remain close to its existing configuration, need to review assumptions - see org chart 4 PUD will develop required reserves over a 5 year period - 5 PUD must meet minimum TIER (times Interest Earn Ratio) or they will require rate increase or reduced budget last year was 1.6 coverage, minimum is 1.05; but perfer 1.5 to Notes: possible BPA rate increase Oct 2015 etimated 7%; also possible change of TOCA 7 PUD Goals: provide the best utility service at the lowest cost No longer use property tax as a source of funds promote local control: employees, materials, envolvement PUD st DRAFT BUDGET delta Operating Revneues Real Property taxes Timber Tax lnterfund Loan Payments Interest income Miscellaneouse Revenues $555,000 $22,000 $530,000 $20,000 -$25,000 -$2,000 $0 $0 $0 decrease by 25,000 dollars Water Utility sales and service fees Water Other charges for services Water Other operaing revenues $1,883, $23, $1,961,506 $32,473 $77, $9, $0.00 No rate change Elec. Utility sales and service fees Elec Other charges for services Elec Other operaing revenues BPA conservation Funds $27,225,541 $0 $0 $35,000,000 $25,000 $0 $480,000 $7,774,459 $25,000 $0 $0 very temperture dependant no rate change Total PUD revenues $29,709,197 $37,568,979 $7,859,782 1

46 Operating Expenses 2014 General Fund Wages $79,920 Employee taxes and benefits $24,853 County IT Services $84,000 State Auditor $20,000 Comunicaitons - Phones,network $52,298 Debt Service $81,818 capital outlay - computer equipment $41,000 Telecom system expansion $0 PUD Dues, Memberships $0 total operating expenses $383,889 Water & Sewer $2,015 $117,180 $61,000 $0 $30,000 $5,000 $175,000 $0 $35,000 $128,660 $551,840 delta $37,260 Note PUD BOC Commissioner Wages, Plus estimated 6 meetings per month $36,147 Note: includes per diem and travel estimated at 3400/year/commissioner -$84,000 No longer contracted with County $10,000 annual audit -$47,298 I pads, recorders, etc for BOC, meetings $93,182 Peterson Lake principle and interest -$41,000 moved to under operations $35,000 Extension of Fiber to support Jefferson County fiber build out $128,660 PUDA, PCC, clearing up,nwppa,nwpwa $167,951 Purchased Water $16, Operations $1,031, Maintenance $142, Customer accounts $61, Custoner service, informaton, advertising $29, Administractive & general $85, Mainteance of general Plant $0.00 Depreciation $580, Taxes other than income $84, total operating expenses $2,029, Electrical Purchased Power $13,039,697 $16,000 $450,000 $360,000 $118,853 $130,000 $107,184 $60,000 $580,000 $94,545 $1,916,582 $15,187,500 $0.00 City of?t -$581, salaries and benefits (5 FTE) $217, power, chemicals, fuel, repairs $57, FTE $100, Billing; software; credit cards; bank; utility; training $21, FTE $60, Pump house upgrades $0.00 $10, B&O -$113, $2,147,803 power and transmission Operations $2,050,300 Maintenance $978,028 Customr accounts $759,545 Custoner service, informaton, advertising $40,000 Administractive & general $1,344,132 Mainteance of general Plant $0 Depreciation $4,300,000 Taxes other than income $1,912,707 City of PT Tax $0 Total Operating Expenses $24,424,409 $2,662,021 $1,880,000 $800,000 $0 $1,344,132 $465,445 $4,300,000 $2,103,500 $540,000 $29,282,599 $611,721 salaries and benefits $901,972 materials, contractors, equipment, school $40, FTE - $ $40,000 $0 5 FTE - $532,349 $465,445 materials $0 $190,793 $640,000 6% $4,958,190 Total operating expenses $26,838,151 $31,751,021 $5,012,870

47 Non-Operating Expenses/ Income Debt Interest 2014 Water/Septic Electrical -$2,986,760 $2,015 delta -$450,000 -$5,800,000 $100,000 Principle and interest Principle and interest (note missing one RUS principle Assume 2 million in RUS account@ 5 percent evenues in Excess of Expenditures -$115,714 -$332,042 -~

48 PUD#l of Jefferson County Organization Chart -September 2014 Existing D LI "" BILLING (4 ~~ I T DISTRICT AUDITCR F'INANCE r: 0 T BOC MANAGER ADMIN/ ASST RESOURCE MANAGERJ CDNSERVATIDNJ \IATERJ POVERJ COHHUNICATIDN - NDANET COUNTY TREASURER HR COMM I ~ LJ I 'WATER SE'w'ER \ITPO LEAD ~~ I dtlzm o.dvlsory boql"d 1 ~!,9'".. r I M TEIOWI 6~;cTRIC H AdMln Super I PURCHASING ENGR TECH - GIS I I I LINEMAN (6) Asst. Contro.cted ~ Interview D Existing Contro.ct lvo.co.nt Advertised D I Sub Sto.tlon Mo.Int D D r-f.eeter I ~~d~ electrlc::o.l I LOCATES I ENGINEERING SUB- ~ ~ STATION LJ LJ LAND SCAPING VEHICLE I ~ISPATCHINC MECH '--- troundman I I I Review and approved at PUD Board Meeting 2 September

49 Public Utility District NO. 1 of Jefferson County Payroll & Benefits Summary I A B Department FTE c Current Salary D E F G H Salary Premium COLA Salary Medical with COLA Pays & Premiums FICA +VEBA I Pension J K L M LTD, Basic L&I Insurance Total Non Utility Funds Commissioners ,260 "117, , 180 8,964 51, ,068 Administration 6.00 ' 472, , ,008 37,256 65,435 44,853 2,253 2, ,533 Total General Fund = , , ,188 46, ,715 44,853 2,253 3, ,602 Enterprise Funds Electric Utility - Operations & Maintenance ,370,523 1,411, ,920 1,660, , , ,899 43,069 7,033 2,283,616 Electric Utility - Customer Services & Acct , ,429 12, ,797 33,262 78,497 40,045 3, ,038 Electric Utility - Admin & General , , ,386 31,012 54,468 37,336 1,875 2, ,349 Electric Subtotal ,174,227 2,239, ,288 2,500, , , ,280 48,382 9,304 3,4-06,003 Water Utility - Operations & Maintenance , ,787 21, ,965 24,095 39,292 29,008 10,492 1, ,344 Water Utility - Customer Services & Acct ,620 85,099 2,490 87,589 6,701 15,805 8, ,853 Water Utility - Admin & General ,244 81,621-81,621 6,244 10,967 7, , 184 Water Subtotal , ,507 23, ,175 37,039 66,064 44,593 11,562 1, ,382 Telecommunications - Broadband ' Total Enterprise Funds = ,621,321 2,699, ,956 2,984, , , ,872 59,943 11,254 4,051,384 I Grand Totals $3, 176,404 $3,304,149 $544,956 $3,588,685 $274,534 $609,219 $319,726 $62,196 $14,626 $4,868,986 i I ) ) ~ --" '"'--=-- --' ""~"' o,-,r~,-,nnol Qhootc: rir<>it c:.t<>rt A?7?01L1An P:::ivrnll 8. RP.nP.fits Summarv

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51 N EIGHBORS HELPING NEIGHBORS WITH A BOOST DOUBLE your donation with PT Rotary MATCH challenge! A donation to this program is tax deductible. As an organization exempt from federal income tax, the PUD is qualified as a charitable organization with the Internal Revenue Service I NSTRUCTIONS: P LEASE FILL OUT THE FORM ON THE BACK AND RETURN TO ONE OF OUR LOCAL OFFICES, BY MAIL, FAX OR LOCATIONS: Four Corners Operations Center 310 Four Corners Road Administration Building 230 Chimacum Road MAIL TO: Power Boost Jefferson PUD 310 Four Corners Road Port Townsend, WA Power Boost just got an unexpected boost! The PUD Power Boost program provides assistance to lowincome residential customers having difficulty paying their electric bills. Port Townsend Rotary Club has stepped up to match $20,000 - dollar for dollar - for all donations starting September 1, Proceeds go directly to customers via OlyCAP. You can help your neighbors in need by donating to this fund and doubling your contribution to local families. You can make a onetime contribution by adding it to the amount on your PUD bill or choose to have it automatically added to your bill every month. Please enclose this flier with your PUD payment or contact us via our website at power-boost or at powerboost@jeffpud.org. Phone: (360) Fax: (360) powerboost@jeffpud.org web:

52 Neighbors helping neighbors Occasionally there are those around us who need a helping hand. The Power Boost program provides assistance to qualified low-income residential customers in paying their electric bills. The PUD does not deduct any administrative costs and gives 100% of the contributions directly to the local Olympic Community Action Program (OlyCAP). Funds are used to assist families in Jefferson County in emergency situations. You can help your neighbors in need by donating to this fund. Indicate below how you would like to contribute. Please enclose this flier with your PUD payment or bring it in to the PUD office with your payment. Only one payment is necessary to cover both your contribution and your PUD bill. NAME ACCOUNT # ADDRESS PHONE I WOULD LIKE TO PARTICIPATE IN THE Power Boost PROGRAM. MY PARTICIPATION WILL BE AS FOLLOWS: I PREFER TO BE BILLED AS FOLLOWS: PLEASE BILL $ EVERY MONTH UNTIL I CONTACT THE PUD TO CANCEL. I PREFER A ONE TIME CONTRIBUTION OF $ ALL CONTRIBUTIONS WILL GO TO THE OLYMPIC COMMUNITY ACTION PROGRAM DIRECTLY TO SUPPORT FAMILIES IN JEFFERSON COUNTY FOR EMERGENCY SITUATIONS. SIGNATURE DATE

53 September 2, 2014 Board of Commissioners Barney Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 James G. Parker, Manager MEMO FOR PUD BOC SUBJECT: Change in Procedures as result of VERA visit 1. Purpose of this memo is to summarize the recent visit by the Billing Clerk from VERA irrigation District and to make some recommendations to our procedures and policies. 2. VERA is an Irrigation District near Spokane with approximately 11,000 Electrical Connections and 8,000 water connections. They have a staff of 33, plus 5 District Commissioners and a service area of 12 square miles. They have lien authority and as such bills stay with the property (no deposits, arrangements through land lords, etc.), similar to PUD prior to power and exiting City of PT. 3. As result of the visit we will be making numerous internal changes to our billing, collections and metering procedures, see enclosure 1. Additionally, we will be making changes that will require PUD BOC approval as they will be affecting charges and fees. 4. We are going to start sending out late notices separate from the Billing, currently it is a stuffer within the bill following being late for more than a month. This bill will be done separately and in general will be after the normal monthly mailing. VERA charges $2.25 for that late mailing, EES may recommend a different rate (I think most are closer to $4.00). Billing will not produce the late notice that will be done by collections, with aid of the CSRs. 5. One change we will implement soon is the requirement to pay the new customer fee up front, it will be billed in the future. And we will read every meter to insure accuracy the day following the transfer. Also we will be sending out a welcome pamphlet once a month to new customers. Additionally we are looking at our deposit policy, may reduce number of people requiring deposits but we may also want to go to a two month average bill method for those in red. Currently we are not enforcing the requirement for a full deposit if you were disconnected, but should relook that policy also. 6. Budget payment plans will be reevaluated every 6 months, versus a year, and we will not recalculate we will simply roll over to the next period. PH (360) FX (360) Chimacum Road/P.O., Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

54 7. Internally, our CSRs will close their batches daily, but will not commit, that will be done by Michaels representative the next day. This provides more accountability and safeguards, however, it will cause a delay with Paymentus. We will have to add a statement that we post payments the day we get them, but they may not show on Paymentus for up to 4 days later, if you have a question please call at (I will make sure we have at least 4 or more CSRs to answer the phones). 8. Collections will go out after 90 day delete status. First round is paid to us and is at no additional cost. Collections will handle, the next round will go directly to collections and accounting will manage. 9. To make these changes I have implemented a change in the PUD organization chart which you saw under the budget discussion. We need to develop a severance program to recognize changes in PUD organization. 10. POC this memo is the undersigned. James G Parker Manager PH (360) FX (360) Chimacum Road/P.O., Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

55 Enclosure 1 to Change in Procedures Memo 1. The purpose of this memo is to provide clearer guidance on how the PUD billing, customer service and collections will operate in the future. 2. New, closed, transfer accounts: a. New customer can call, , or come in person to change account information. b. CSR will start a service request and obtain all the needed information, plus let the customer know there will be a 20 dollars customer charge. This will be billed with the first bill. It is important to get move in and move out dates. c. Credit Check will be run if there is a need for a deposit we must have that prior to establishing the new account. This can be done via? d. The closer will each morning collect and proof all service requests and will provide Casey with a list by address for both water and power final reads. e. Closer will generate and sent out final bill once he obtains read data from meter reader. Closer closes service order. Customer may get a copy during normal billing hours. 3. End of Day balancing of accounts, closing of batches. a. Each CSR will do their own final day batches and will attach the statement at tab A with the batch. Batch will be committed by the utility account the following morning. Any mistakes will corrected by the individual making the error. b. Individuals would made the error will run a separate batch for the correction and will if needed contact the individuals involved. 4. Collections. a. Collections will be a separate mailing, no longer part of the billing cycle. It will be run by the collections person and will be mailed separately. b. There will be a late charge generated as result of the mailing. It will be set by the Board of Commissioners. PH (360) FX (360) Chimacum Road/P.O., Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

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57 September 2, 2014 Board of Commissioners Barney Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 James G. Parker, Manager MEMO FOR RECORD SUBJECT: Financial Support of Organizations, Groups, and Agencies. 1. The purpose of this memo is to discuss the PUD BOC authorization of funds for various groups and establishing a policy to allow for the management of requests and inquiries. 2. Attached are several letters from Malcolm Harris on the topic; also an from Mark Repozo and Doug Nass (manager CPUD). 3. The from the state auditors office was received prior to the second Harris letter: Hi Wayne. Your attorney is giving you sound advice regarding the spending of public funds for only public purposes. Perhaps if he knew more details to the energy lunch program he may better advise the district how to proceed without violating the state constitution. Good to hear from you. Hope to see you sometime in the near future. 4. This was from CPUD manager. Hey Jim, Well we don t have a clear distinction about who we would support, generally we think along the lines, if we can get some return to the water or energy business for the contribution, we may participate. We do participate in PPC, WPUDA, APPA, NWPPA, etc. which we believe we are getting some return in training, notifications, news, etc.. Regarding your power luncheon group, we don t contribute to their meeting other than occasionally attending one. As far as rotary, our employees pay the dues themselves and we may give them some time off to attend meetings. We do participate as a sponsor with our local Home Shows, they use our name on the radio and on posters and we push some of our conservation info. Good luck and let me know if you have any more questions, Doug PH (360) FX (360) Chimacum Road, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

58 5. As the Manager of the PUD I would request a clear statement of what we will and will not support from the board. That way I know our position. In the pass I have simple said we cannot make a gift of public funds and therefore could not support any activity that was not clearly a PUD function. One suggestion would be to send it to the citizen advisory board for recommended policy. Short of that we could create a simple policy: The PUD Board will only entertain support of groups, committees, organizations, and associations if they can demonstrate a clear connection between the PUD s authorities as spelled out in RCW 54 and have presented their justification to the PUD BOC directly. 6. BOC this memo is the undersigned. James G. Parker Manager Encl. 2 Harris letters Energy Luncheon Flyer. PH (360) FX (360) Chimacum Road, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

59 MALCOLM S. HARRIS HARRIS, MERICLE & WAKAYAMA A Professional Limited Liability Company ATTORNEYS AT LAW 901 FIFTH AVENUE, SUITE 4100 SEA TILE, WASHINGTON FAX (206) (206) Port Townsend Office 211 TAYLOR STREET, SUITE 404-B PORT TOWNSEND, WASHINGTON FAX (360) (360) n August 29, 2014 James Parker, P.E. PUD No. 1 of Jefferson County 230 Chimacum Road Port Hadlock, WA Dear Jim: Re: Expenditure of PUD Funds for Support of Energy Luncheon Group You have asked for my opinion on the Commissioners' desire to contribute funds from the PUD to support the efforts of a newly-formed "energy luncheon group" which will meet periodically in Jefferson County to discuss energy-related topics. Commissioner Barney Burke's of August 25 describes the activities of that group as follows:... it's a series of educational presentations on energy-related topics. Examples include wind energy, solar energy, integrating "green" power into the grid, using ammonia for energy storage, the "big battery" project, BP A's power marketing program, energy conservation, etc. 11 In my letter to you dated January 21, 2014, I gave you the opinion that:... the PUD, as a municipal corporation, is barred from giving or loaning funds or property to private individuals and entities unless there is a clear public purpose to be served which is within the scope of the PUD' s statutory powers and functions. If that test is not met then the transfer will only survive scrutiny if there is consideration for the transfer and there is no proof that the transfer was intended to be a donation. I wrote that letter in response to a general question about donations to civic and charitable groups, such as the Boy Scouts, Rotary, agencies promoting economic

60 James Parker, P.E. January 29, 2014 Page2 development, etc. -- none of which had any direct connection with the statutory purposes to be performed by a public utility district. Obviously, the energy luncheon group is a different breed of cat, and its purposes appear to be closely related to the municipal activities which the legislature has authorized in the Public Utility District statutes, RCW Chapter 54. I assume that the meetings of this organization will benefit the PUD and its customers by promoting the consideration and development of alternative energy sources, conservation and efficient use of electrical power, sharing of information with other electrical utilities, and improving the PUD' s ability to provide better service to its customers. Accordingly, I believe that reasonable economic support for this group would be within the powers of the PUD and would not violate Article VIII, section 5 of the State Constitution. You should be careful, however, that the economic support does not go to benefit individuals. For instance, I do not believe it would be appropriate to spend the PUD' s funds to buy lunches for persons attending the meetings. It should go to support the organization's expenses, such as producing and disseminating literature, renting meeting rooms, etc. I believe it would also be appropriate to pay for a commissioner's time and travel expenses to attend such meetings, provided the organization and the meetings continue to produce worthwhile benefits for the PUD. Please call if you have any other questions. Very truly yours, HARRIS MERICLE & WAKAYAMA cc: PUD Commissioners

61 Energy Efficiency Workshop Tuesday, August 19, 2014; 2:00 PM to 3:00 PM Port Townsend Community Center 620 Lawrence Street (at Tyler Street) in uptown Port Townsend Topic: Understanding the Residential Rebate Program of the PUD Chair: Brian Goldstein, Spyglass Energy Solutions, Port Townsend Panelists: Ruth Bell, Principal, Cascadia Consulting Group, Seattle WA Bill Graham, Resource Manager, Jefferson County PUD #1 The first meeting of a new Energy Efficiency Workshop will convene at 2 PM on Tuesday the 19 th as part of the Jefferson County Energy Lunch Program for August This initial session will generally review how to reduce energy bills and carbon footprints via energy upgrades and will specifically discuss how to determine what electricity bill rebates are available to individual residential and business customers. The Jefferson County Public Utility District will receive $880,000 from the Bonneville Power Administration for use in providing electric customer rebates over the next two years. The Jefferson County PUD has a contract with Cascadia Consulting Services of Seattle to manage the PUD s residential rebate program that consumes approximately half of the available rebate funding. Ruth Bell will give a brief introduction of Cascadia, followed by a status report on the Jefferson County residential rebate program to date including energy savings. Then she will discuss areas of focus such as low- income services, home energy audits, and marketing/outreach. Bill Graham, who manages the conservation rebate program for both residential and commercial sectors, will be present to answer any questions specific to the Jefferson County program. All PUD electric customers are eligible for energy rebate dollars so this workshop should be of value to any residential or business electric customer of the PUD. Power Trip Energy, Sunshine Propane, Huber s INN, the Alaska Power & Telephone Company, Port of Port Townsend, Frederickson Electric, Port Townsend Paper Company, and Spyglass Energy Solutions are Local Sponsors of the Jefferson County Energy Lunch Program. ####

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63 Bonneville Power Administration Energy Efficiency Interim System 2.0 BPA does not review or approve Non-Reportable Savings Account #: COTR: Dena Hilde Account: Public Utility District No.1 of Jefferson County EER: Andrew Miller IS2.0 Invoice Packages: BPA Invoice ID Utility Invoice ID Reimbursement (Dollars) Savings (kwh) Line Items Received Status Date Total EEI LPF Performance Reportable EEI LPF Self Funded Non Reportable Total Removed Received in: FY2013 $72, $0.00 $72, , , Approved $0.00 $0.00 $6, , , ES FY /13/ /17/2013 $1, $0.00 $ , , ES FY /20/ /22/2013 $5, $0.00 $3, , , ES FY /4/ /07/2013 $65, $0.00 $2, , , Received in: FY2014 $90, $0.00 $90, , , Approved $0.00 $0.00 $22, , , ES FY /28/ /28/2014 $2, $0.00 $1, , , ES FY /24/ /28/2014 $32, $0.00 $7, , , ES FY /25/ /25/2014 ($12,000.00) $0.00 ($2,821.12) -35, , ES FY /25/ /25/2014 $12, $0.00 $2, , , ES FY /25/ /30/2014 $40, $0.00 $9, , , ES FY /10/ /18/2014 ($6,000.00) $0.00 ($1,221.12) -15, , ES FY /10/ /18/2014 $9, $0.00 $2, , , ES FY /20/ /22/2014 $12, $0.00 $3, , , Total $162, $0.00 $28, , , Printed on: 1 of 1

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65 2 September 2014 UPCOMING EVENTS 1 September 2 September 3 September 4 September 8 September 10 September 15 September 16 September Labor Day - Holiday - PUD Budget on File at PUD NoaNet Workshop 1:00 pm PUD BOC Meeting, 230 Chimacum Road, 5:00 pm PUD management classes - performance evaluations - morning PUD staff meeting with EES - COS/ Rates 1 :00 pm Preconstruction meeting for Sparling 1 :00 to 4:00 CAB Meeting 1:00 at 410 Four Comers PUD Budget Workshop/COS 10:00 to 2:00 PUD state auditor 3 :00 BP A Meeting - Mason PUD#3 4:00 PUD BOC Meeting - P01i Townsend Community Center September Water Work Shop 6 October 21 October October PUD BOC Meeting - Budget Hearing PUD BOC Meeting - PT PUDA Manager meeting 4Nov AEGIS Water Risk Assessment

66 PUDA Meetings Date Meeting Location September September October 15 October 16 October November Association Meetings Water Workshop Commissioners Education Roundtable Budget Committee Meeting Managers Committee Meeting Association Meetings Approval of Budget Member/Past Presidents Dinner Chehalis, Holiday Inn Express Skagit County Olympia Olympia TBD Olympia December 3-5 WPUDA Annual Conference Water Committee Meeting Vancouver

67 Hi Jim, On Monday morning September 15, 2014, BPA Administrator Elliot Mainzer will be coming to the Mason County PUD #3 Operations Center to specifically meet with small and mediumsized BPA utilities from Jefferson, Clallam, Mason, King and Pierce Counties. Elliot's goal is to: Provide information about BPA's strategic direction, current financial picture and future rates, and Provide an opportunity to share and discuss utility priorities and concerns without the constraints of Ex Porte. I encourage you to attend and to share this information with your Board (Barney!) and other staff who may be interested in this discussion with Elliot. Meeting Details: Date: s'eptember 15, 2014 Time: 10:00 am -11:30 Location: 2621 E Johns Prairie Road, Shelton WA, Mason County PUD #3: Johns Prairie Operations Center https: I /maps.google.com/maps?q=2621 +E +Johns+Prairie+Road, +Shelton+&hl=en&ll= , &spn= , &sll= , &sspn= , &t=m&hnear=2621 +E+Johns+Prairie+Rd, +Shelton, +Washington+98584&z=13 Please let me know at your earliest convenience whether you can make this meeting with Elliot and, if possible, how many people you expect to attend from your utility. Please call me if you have any questions. Thanks, Shannon qreene Customer }lccount P.J(fcutive <Power Seroices, CJ3<PJL (office)

68 Hello Jim, Tried to leave a voice message for you this afternoon but got cut off with an outside call. Frankly, I have a new mobile phone and it operates a little differently from my last smart phone. We would be very pleased to have you make a presentation to the Marrowstone Island Community Association (MICA) on Monday, November 17,2014. We would appreciate an update on the status of the PUD and the outlook for improved internet communications, etc. We feel this would be a great opportunity to update the island residents about all the changes in the PUD and what we can look forward to in the future. We generally have between 30 to 60 island residents in attendance. This presentation should sincerely generate a great deal of interest. Our meetings start at 7:00 PM and the general business meeting only lasts about 30 to 45 minutes. We would then appreciate if you could make a presentation for about 20 to 30 minutes followed by about 15 minutes of questions from the audience. We would also like to invite the PUD commissioners to attend. As mentioned, please give me your thoughts how we can make this opportunity for the PUD all that you would like. We do have a good audio system and a small screen. So, let me know what you need and we can work on it. Look forward to your response. Sincerely, Vigo Anderson VP Marrowstone Island Community Association Mobile: (360) PS: My wife Paula is on your CAB

69 August 2014 Board Meeting Highlights From the July Executive Board Meeting Mark Reddemann CEO CEO Notes: Columbia sets new fiscal year generation record I am pleased to report that Columbia Generating Station, the Northwest s sole nuclear energy facility, generated nearly 9.8 million megawatt hours of electricity during the fiscal year that ended June 30 eclipsing a previous record of 9.5 million megawatt hours in fiscal year This success follows two calendar year milestones: a calendar year record of more than 9.3 million megawatt hours in 2012 and a calendar year record of more than 8.4 million megawatt hours in 2013 the most ever for a refueling outage calendar year. In sharing these milestones with employees, I noted that their commitment to excellence in performance drove these accomplishments. Most importantly, our employees have accomplished these milestones while performing safely in the areas of nuclear, radiological, industrial and environmental safety. To underscore this point, the Energy Northwest team continues to extend our record of more than 12 million hours worked without a lost-time accident. Columbia workers also broke the station s fiscal year low-dose record set back in 2004 which is impressive, given our 2014 used fuel loading campaign. NRC rejects PSR petition on seismic safety I am pleased to report that the U.S. Nuclear Regulatory Commission recently denied a petition by the Oregon and Washington Physicians for Social Responsibility, an anti-nuclear group, to provide the data used by the NRC to continue to conclude that CGS has been designed, built, and operated safely to withstand earthquakes likely to occur in its region," and shut down CGS immediately until it can be shown that it meets adquate earthquake standards. The NRC denied the petitioners since they raised issues that have already been the subject of NRC staff review and evaluation -- and the issue has been resolved. Governor Christine Todd-Whitman visits Olympia and Seattle I had the opportunity in July to accompany former New Jersey governor and former U.S. Environmental Agency Administrator Christine Todd-Whitman on a speaking tour of the Olympia and Seattle areas. Gov. Whitman is currently co-chair of the Clean and Safe Energy Coalition, which is a national grassroots organization that supports the increased use of clean, reliable and safe nuclear energy. Continued on next page 1 P a g e

70 August 2014 CEO Notes (cont. from page 1) Gov. Whitman gave testimony to the Nuclear Energy Task Force, during which she spoke of the importance of nuclear energy to the regional energy mix and the environmental benefits of carbonfree generation. [see p. 4 below for an update on Nuclear Energy Task Force activities] During Gov. Whitman s visit to both the Seattle Rotary Club and Seattle Chamber of Commerce, she delivered a message that members might appreciate. In response to questions about safety fears and the up-front investment costs for nuclear, she replied that we are famous for saying no in this country, especially with regard to electricity generation and transmission infrastructure. Her bottom line is that there are trade-offs in everything we do, and that we need to use facts to determine what the right trade-offs are and what makes the best sense for our region. That message a message of building a diverse and low-carbon energy mix that includes nuclear energy resonated with her audiences. Northwest Power and Conservation Council learns about Columbia value I had the opportunity to visit the Northwest Power and Conservation Council in July to discuss Energy Northwest and the Columbia story. My visit followed an April meeting with the council, during which Larry Makovich of Cambridge Energy Research Associates presented to the council the CERA market assessment of Columbia s value. Brent Ridge, vice president of Corporate Services and Chief Financial Officer, and Mike Paoli, Public Affairs manager, also attended the April meeting. I told the council about Energy Northwest s governance, Columbia s road to excellence and regional value, agency achievements and records, and current regional energy initiatives. By all accounts, the presentation was well-received, and the council appreciated the opportunity to receive information about Columbia s performance. As background, the U.S. Congress established the council in 1980 to develop and maintain a regional power plan that balances environmental and energy needs. It s comprised of eight members, two each appointed by the governors of Washington, Idaho, Oregon and Montana. Continued on next page 2 P a g e

71 August 2014 CEO Notes (cont. from page 2): Energy Northwest is region s top March of Dimes contributor Recently we learned that our employees raised more than $30,000 during this year s March of Dimes campaign, making Energy Northwest the region s top contributor for company teams. We have tough competition in the Tri-Cities 12 employers are larger so I m proud that our team is leading this region s commitment to giving back to the community and to the mission of March of Dimes. I should also note that I have agreed to Chair the Mid-Columbia and Central Washington March for Babies in The March for Babies, a March of Dimes-sponsored event, supports community programs that help mothers have healthy, full-term babies and funds research to find problems that threaten babies. The March for Babies has been held each year since 1970 and has raised an incredible $2.3 billion nationwide to benefit these important efforts. Energy Northwest purchases five acres of land from City of Richland Energy Northwest recently completed the purchase of five acres of land near the Queensgate exit off Highway 182 in the City of Richland. The executive board approved the purchase in June with approximately $550,000 of fiscal 2014 capital funds. The purchase is in response to industry requrements that will likely make our current emergency operations center in the 25-year-old Multi-Purpose Facility inadequate. The five-acre parcel is wellsuited for development of a seismically and flood-safe emergency operations facility. In addition to ready freeway access, advantages of the property include an elevation well above the 100-year flood plain, line-of-sight, for communication transmissions, to Columbia, the community s Consolidated Communications Center Facility on Rattlesnake Mountain and the Telecommunications Equipment Center, and adjacency to Benton County s emergency management operation center, which would provide a tremendous emergency coordination advantage. In the meantime, we ll continue to use our emergency centers in the Multi-Purpose Facility, as well as the daily meeting and training rooms. 3 P a g e

72 August 2014 News of Interest Nuclear Energy Task Force holds first meeting in Olympia Task Force plans to meet Sept. 25 in Tri-Cities The joint legislative Nuclear Energy Task Force held its first meeting July 9 in Olympia, Wash. Task Force members elected Sen. Tim Sheldon (Majority Caucus) as chair and Rep. Jake Fey (D) as vice-chair. The Task Force also heard testimony from Gov. Christine Todd-Whitman, who spoke to the environmental benefits of nuclear energy, and from Energy Northwest s Jim Gaston, general manager of Energy Services and Development, who discussed options for the Task Force during a meeting in the Tri-Cities. As background, in March Gov. Inslee signed a 2014 supplemental appropriations budget containing language authorizing a joint select Nuclear Energy Task Force to study the generation of energy in the region through the use of nuclear power. The nuclear energy task force legislation had been originally introduced as a stand-alone bill by Sen. Doug Ericksen and enjoyed strong bipartisan support in the Senate, as well as in the House Technology & Economic Development Committee, before stalling in the House Rules Committee. The key elements in the legislation were incorporated into the supplemental appropriations budget during conference committee proceedings. The Task Force made preliminary plans to meet in the Tri-Cities Sept. 25 and in Corvallis, Ore., Nov. 8. The Tri-Cities meeting will include a tour of Columbia and the Corvallis meeting will include a tour of NuScale Power. Nuclear Energy Task Force Senate Majority Caucus Sen. Tim Sheldon (Chair) Sen. Sharon Brown Senate Minority Caucus Sen. Marko Liias Sen. John McCoy Senate Alternate Sen. Doug Ericksen House Democrats Rep. Jake Fey (Vice Chair) Rep. Sharon Wylie House Republicans Rep. Shelly Short Rep. Norma Smith House Alternate Rep. Richard DeBolt Recommendations and findings are due from the task force by Dec. 1. The task force terminates activities on December P a g e

73 August 2014 Energy Northwest to provide O&M services at Tieton Dam Hydroelectric Project Energy Northwest s Energy Services and Development has executed an agreement to provide operations and maintenance services at Tieton Dam Hydroelectric Project, located near Yakima, Wash. This O&M agreement further extends the portfolio of energy services that Energy Northwest offers to the regional public power community, said Jim Gaston, general manager of Energy Services and Development. We look forward to working with the owners to ensure Tieton continues to operate safely, reliably and cost-effectively. Energy Northwest s Energy Services and Development division is responsible for advancing new generation projects and services. Tieton Dam Hydrolectric Project is a 15.6 megawatt hydroelectric facility purchased by the Southern California Public Power Authority (SCPPA), a joint powers authority, on behalf of the City of Burbank, Tieton Dam Nameplate (Photo: Bob Harris, Energy Northwest) Calif., and the City of Glendale, Calif., both of which have agreements to purchase the power output. The City of Burbank is responsible for the overall O&M of Tieton through the SCPPA contract. Energy Northwest has signed a one-year Inter-Local Agreement renewable on an annual basis with the City of Burbank. The one-year contract is worth $350,000 and may be renewed annually. The agency will be able to do the maintenance work with current staff at its Packwood Lake Hydroelectric Project, which is about 35 miles away in Lewis County. There are no plans to add staff. This agreement complements Energy Northwest s clean energy generating assets, including hydro, nuclear, wind and solar, said Mark Reddemann, the agency s chief executive officer. ESD conducts safety assessment The contract scope of work includes several deliverables with an emphasis on operating and maintaining the Tieton Project using best utility practices; original equipment manufacturer recommendations; and adherence to all regulatory and safety standards and requirements. The site industrial safety assessment was conducted to provide a baseline assessment of industrial safety at the site. On Aug. 6, Energy Services and Development led a site industrial safety assessment at Tieton Hydroelectric Project. The assessment was conducted to provide a baseline assessment of industrial safety at the site Continued on next page 5 P a g e

74 August 2014 Tieton Dam Services (cont. from page 5 The safety assessment team included: Jim Gaston, general manager, ESD Martin Drumm, Tieton Dam Station operator Bob Harris, ESD Safety Committee Chair Leo Quiachon, O&M Professional Services manager Ed Prilucik, Industrial Safety Program manager Dan Ross, project manager II, O&M Professional Services A completed assessment report identified 30 conditions. The report details suggested actions for each identified condition. Energy Northwest s Ed Prilucik also completed a Hazard Assessment for Personal Protective Equipment for the Workplace, a copy of which will be kept onsite at Tieton Dam. View of the Tieton Dam Power house from the top of the dam (Photo: Bob Harris, Energy Northwest) From Top Ten Facts about Nuclear Energy, CASE Energy Coalition 6 P a g e

75 August 2014 Energy Services and Development moves to new building In late June, Energy Northwest s Energy Services and Development, Treasury and Finance operations (including Payroll, Travel and Accounts Payable), which had been located in the Multi-Purpose Facility (MPF), relocated to the Corporate Development Center (CDC). The address of the CDC Building is: 345 Hills Street, Richland, WA. There is no change to mail drops and the EN Directory reflects the new office locations. The CDC, an Energy Northwest leasing asset, has been advertised for sale for more than a year and no prospective buyer or tenant has emerged. Energy Northwest has now taken the CDC property off the market and Energy Northwest functions will occupy it, sharing the O&M costs. ESD intends to lease the newly vacant MPF space, making the entire facility financially attractive to a buyer. The MPF was declared surplus, and offered for sale, by the Executive Board in April, This aerial map shows the locations of the MPF and the CDC, both of which are off George Washington Way in Richland, Wash. Energy Northwest seeks member utility interest on solar project Energy Northwest has received an opportunity for a new large solar project that is currently under development in the Richland, Wash. area. The solar project is scheduled to come online in mid- to late The pricing for energy and associated renewable energy credits appears to be competitive when compared with wind and other renewables in the region, depending on the final agreement structure. The project developer, neoen, is seeking a long-term power purchase agreement for the entire output of the project. They have demonstrated flexibility on the terms of the deal. Energy Northwest is available to assist public power member utilities by aggregating smaller blocks of interest in the project or to match a member directly with the developer for the purchase of the entire project capacity, as needed. If your utility is interested in learning more about this opportunity, please contact Robin Rego, Energy Project Developer, at (509) or rarego@energy-northwest.com. 7 P a g e

76 August 2014 National Nuclear Science Week to launch in Seattle this October National Nuclear Science Week is a national, broadly observed week-long celebration to focus local, regional and national interest on all aspects of nuclear science. Each day will provide for learning about the contributions, innovations and opportunities that can be found by exploring nuclear science. National Nuclear Science Week will be held Oct , 2014, and the NNSW kickoff will take place Oct. 16 and 17 in Seattle, Wash. The event will be held at the Pacific Science Center at the foot of the Space Needle. For more information, see Clean and Safe Energy Coalition Become a member today! Visit casenergy.org 8 P a g e

77 August 2014 EN Member Forum to feature regional and global energy discussions Oct , 2014 Kennewick, Wash. Mark your calendars now for the Energy Northwest Member Forum XVII Oct. 23 & 24 in Kennewick, Wash.! The theme of this year s forum is Balancing the New Energy Horizon. Meeting session topics have been developed in response to your feedback and suggestions. We believe you will find the presentations educational, entertaining and thought provoking. We have an excellent line up of speakers and topics this year, including the State of Small Modular Reactors Western Initiative in Nuclear; Baseload Generation and the Future Energy Horizon global shifts in generation and the implications for US carbon reduction goals; On the Horizon: Energy Imbalance Markets and more. We look forward to seeing you at the Energy Northwest Member Forum XVII! 9 P a g e

78 August 2014 Project Information Nine Canyon Wind Project Nine Canyon Wind Project Adjusted Availability Adjusted Availability (Nine Canyon) is the percentage of time each turbine is available, excluding low wind conditions, external impacts, and minus planned outage hours for each turbine. Note: June s combined availability of 99.40% is the highest monthly adjusted availability factor since the inception of Phase III. That level of safety [10 million hours worked without a losttime injury] is nearly impossible for a large public power utility to achieve, but this Richland-based electricity provider holds itself to a higher standard. Association of Washington Businesses 10 P a g e

79 August 2014 Packwood Lake Hydroelectric Project Packwood Lake Hydroelectric Project Adjusted Availability Adjusted Availability (Packwood Lake) is the percent of time the plant is available, excluding reserve shutdown hours to allow reservoir build-up, and minus planned outage hours. Packwood Lake Hydroelectric Project recorded 100 percent adjusted availability for FY2014. The Packwood Lake Hydroelectric Project has experienced several fiscal years at 100 percent adjusted availability, the most recent prior to FY 2014 being FY P a g e

80 August 2014 Energy Northwest completes FLEX buildings as part of post-fukushima actions One major aspect of Energy Northwest s response to the Fukushima event is to procure and store portable emergency response equipment that can mitigate a beyond design basis loss of all electrical power at Columbia. This equipment is required to be protected from external events (flooding, earthquake, high wind, volcanic ash fall, etc.) in two separate structures to insure it is available in case of an unlikely event. After considering various options, the decision was made to build a new building on an existing pad and remodel an existing building to store equipment. The construction of the new building was completed in June. Connect with Energy Northwest: Stay informed about what s going on at Energy Northwest connect with us on Facebook, Twitter and YouTube Questions? If you have questions about Energy Northwest, our projects or anything else please contact Laura Scheele at or lascheele@energy-northwest.com. 12 P a g e

81 MALCOLM S. HARRIS HARRIS, MERICLE & WAKAYAMA A Professional Limited Liability Company A T T O R N E Y S A T L A W 901 FIFTH AVENUE, SUITE 4100 SEATTLE, WASHINGTON FAX (206) (206) Port Townsend Office 211 TAYLOR STREET, SUITE 404-B PORT TOWNSEND, WASHINGTON FAX (360) (360) January 21, 2014 Mr. Jim Parker Manager, PUD No. 1 of Jefferson County 230 Chimacum Road Port Hadlock, WA Dear Jim: Re: Gifts of Public Funds You have asked for some guidance on the question of when it is appropriate for the Board of Commissioners to approve contributions of funds from the PUD to other organizations, such as the Boy Scouts, Rotary, agencies promoting economic development, etc. The Washington State Constitution provides, at Article VIII, section 5, that: The credit of the state shall not, in any manner be given or loaned to, or in aid of, any individual, association, company or corporation. Article VIII, Section 7 provides: No county, city, town or other municipal corporation shall hereafter give any money, or property, or loan its money, or credit to or in aid of any individual, association, company, or corporation, except for the necessary support of the poor and infirm, or become directly or indirectly the owner of any stock in or bonds of any association, company or corporation. Our Supreme Court has held that the purpose of the foregoing provisions in the Constitution is to.prevent state funds from being used to benefit private interests where the public interest is not primarily served. CLEAN v. State of Washington, 130 Wn2d 782, 928 P.2d 1054 (1996). Japan Line, Ltd. v. McCaffree, 88 Wn.2d 93 (1977). The Court has also held that these prohibitions are

82 James Parker January 21, 2014 Page 2 mandatory and must be strictly observed. Natural Gas Co. v. PUD No. 1, 77 Wn.2d 94 (1969). In the CLEAN case, the Court considered the propriety of state and local government funds being used to assist in the financing of the new Seattle Mariners baseball stadium. The Court observed that: A two-pronged analysis is employed to determine whether a gift of state funds has occurred. First, the court asks is the funds are being expended to carry out a fundamental purpose of the government? If the answer to that question is yes, then no gift of public funds has been made. The second prong comes into play only when the expenditures are held to not serve fundamental purposes of government. The court then focuses on the consideration received by the public for the expenditure of public funds and the donative intent of the appropriating body in order to determine whether or not a gift has occurred. In summary, the PUD, as a municipal corporation is barred from giving or loaning funds or property to private individuals and entities unless there is a clear public purpose to be served which is within the scope of the PUD's statutory powers and functions. If that test is not met then the transfer will only survive scrutiny if there is consideration for the transfer and there is no proof that the transfer was intended to be a donation. Please call if you have any other questions. Very truly yours, HARRIS MERICLE & WAKAYAMA Malcolm S. Harris

83 Jim Parker Jefferson County PUD Dear Mr. Parker: The undersigned residents of Mats View Terrace and PUD customers would like to acknowledge and thank the Jefferson County PUD for helping us create a park-like setting in our community. As the attached pictures demonstrate, the PUD-owned drain field in our area has become an area of pride and a value-added centerpiece to our neighborhood. We thank you for this and urge you to maintain this space as is in the future. Cheryl & Dave Groves Vivian Saunders ~ ey

84 P.O. Box 968 Richland, WA FOR IMMEDIATE RELEASE August 28, 2014 News Release Mike Paoli, Public Affairs, Page 1 of 2 John Dobken, Public Affairs, Energy Northwest garners over $23.5M for ratepayers in settlement with Department of Energy RICHLAND, Wash. The Department of Energy settled today to provide Energy Northwest $23,575,043 million in damages for the construction and licensing of a used fuel storage area at Columbia Generating Station. This final settlement adds nearly $4.3 million to the previous $19.3 million provided by a court ruling in March. The court s March decision came nearly eight years after the court first determined that DOE was in breach of contract for failure to accept Columbia s used nuclear fuel. This is another big win for Northwest ratepayers, said Mark Reddemann, Energy Northwest CEO. We can safely store the fuel indefinitely on site it takes up little space. That doesn t lessen the federal government s legal obligation to nationally develop and manage a used fuel process. Though Energy Northwest and the nuclear energy industry continue to advocate completion and use of a national repository, Columbia s used fuel can continue to be safely and securely kept at the nuclear station s above-ground dry storage area. The settlement also provides for an annual claims process with DOE, which allows Energy Northwest to recover damages for DOE s breach through 2016 without having to expend costs for litigation. This has been a long journey for our legal team, said Bob Dutton, Energy Northwest s general counsel. The federal decision in March ultimately led to approval of the then-pending settlement by our executive board, and more than $1.2 million in litigation cost savings. Background Energy Northwest started construction on its used fuel storage area in 2001 when it became clear that the Energy Department would not be transferring used fuel from the nation s 104 nuclear power facilities to a federal repository. The Energy Department was legally obligated to start the transfers in Energy Northwest filed an initial lawsuit in January 2004 and sought $56,859,345 in damages at trial. A 2006 ruling by the court determined that DOE was in breach of contract with Energy Northwest for the department s failure to begin accepting used nuclear fuel from the nuclear utility industry in January That is the date when a national repository was to be made available by DOE to receive used fuel from more than 100 U.S. nuclear energy facilities. -more-

85 SETTLEMENT Page 2 of 2 The case was tried in Washington D.C. in February, The U.S. Court of Federal Claims awarded Energy Northwest full damages in February The Department of Energy appealed a portion of the claim. On April 7, 2011, the U.S. Circuit Court of Appeals for the Federal Circuit ruled that Energy Northwest was rightfully granted $2.9 million in overhead costs but the federal government was not required to pay $6 million in interest charges. The Appeals Court remanded the issue on payment for plant modifications for further hearing. Energy Northwest, without waiving its rights on the merits of the claim, made the business decision to forego further trial on the nuclear station modifications portion of the claim in order to expedite payment of the judgment. In July, 2011, a federal court ruled to award Energy Northwest more than $48.7 million in damages for the construction and licensing of a used fuel storage area at Columbia Generating Station. The ruling came nearly five years after the court determined the U.S. Department of Energy was in breach of contract for its failure to accept the utility s used nuclear fuel. Energy Northwest filed a second action in July 2011 for the government s continuing breach of contract to accept the utility s used nuclear fuel for the time frame September 1, 2006, and June 30, 2012, seeking to recover a total of $24.9 million. About Energy Northwest Energy Northwest develops, owns and operates a diverse mix of electricity generating resources, including hydro, solar and wind projects - and the Northwest s only nuclear power plant. These projects provide enough reliable, affordable and environmentally responsible energy to power more than a million Washington homes each year, and that carbon-free electricity is provided at the cost of generation. As a Washington state joint operating agency, Energy Northwest comprises 27 public power member utilities from across the state serving more than 1.5 million ratepayers. The agency continually explores new generation projects to meet its members needs. Energy Northwest # # #