Board of Commissioners Meeting 5:00 PM 15 March Chimacum Road - Port Hadlock, WA

Transcription

1 Board of Commissioners Meeting 5:00 PM 15 March Chimacum Road - Port Hadlock, WA 1. CALL TO ORDER PUD REGULAR BOARD MEETING 2. AGENDA 3. APPROVAL OF MINUTES 3.1 Minutes Regular Meeting of 1 March APPROVAL OF VOUCHERS 4.1 Financial Director Operating Statement 4.2 Summary Lead sheet 4.3 Payment of PUD#1 of Jefferson County Payroll 4.4 Payment of PUD#1 of Jefferson County Vouchers/Warrants 5. ITEMS FROM THE FLOOR that are not listed on the Agenda. 6. COMMISSIONER REPORTS 7. ACTION ITEMS: 7.1 Resolution 2016-xxx Compensation for Exempt Staff 7.2 Professional service contract for timber harvest at Peterson Lake 8. DISCUSSION ITEMS: 8.1 Kathy Baker Meter Reading Questions 8.2 Travel GSA rules Personal vehicle 8.3 PUD HR/Communications Position 8.4 PUD Controller Position 8.5 PUD Telecom Alternative 8.6 Resolution Declaring Emergency 8.7 Article on Survey 9. MANAGER REPORT 10. COMMISSIONER CALENDAR 11. CORRESPONDENCE 12. FUTURE PLANNING 13. EXECUTIVE SESSION: Union Negotations 14. ADJOURNMENT

2 PUBLIC UTILITY DISTRICT NO. 1 of Jefferson County March 1, 2016 Regular Board Meeting Revised Draft Minutes The regular Board of Commissioners meeting of Public Utility District No.1 of Jefferson County (PUD), was called to order by the President of the Board of Commissioners (BOC) at 5:00 p.m. Introductions were made. Commissioners, PUD staff, citizen presenters present: Commissioner Kenneth Collins, President Commissioner Barney Burke, Vice President Commissioner Wayne King, Secretary mcdan James Parker, District Manager Robert Caprye, District Financial Director Bill Graham, District Resource Manager Kevin Streett, District Electrical Superintendent Richard Hughes, General Counsel Don McDaniel, Consultant Pamela Browning, Minute Taker Mark Jochems, Citizen Agenda: The agenda was reviewed and updated. MOTION: By Commissioner Burke, seconded by Commissioner Collins, and unanimously carried: to permanently restructure the Agenda so that Executive Sessions are held after the Manager's Report. Minutes Approval: MOTION: By Commissioner King, seconded by Commissioner Burke, and unanimously carried: to approve the February Regular BOC Meeting minutes and the February BOC Communications Workshop minutes as submitted. JPUD: March 1, 2016 Page 1

3 Financial Operations Report: Bob Caprye and Jim Parker briefed the BOC. Financial Reporting: Bob distributed and reviewed 2016 Operating Revenues & Expenses spreadsheets describing the impact of the expected Bonneville Power Administration rate increase. He will be reformatting financial reports through 2014, per the State auditors' suggestions, as confirmed by Moss Adams employees. Jim will develop a set of financial reporting options for the BOC to review and decide which they would like to receive and with what frequency. Moss Adams LLP, financial consulting firm: Bob met with Moss Adams employees. Personnel: One additional Customer Service Representative has been hired; the Controller position has been advertised. FEMA Storms: Bob will meet with a State representative March 3. Payroll Reporting Format: Bob will reconfigure payroll reports to address security concerns. Vouchers Review and Approval: The BOC reviewed PUD payments registers. MOTION: By Commissioner Burke; seconded by Commissioner King; and carried unanimously: to approve March payments: Warrants No through in the amount of $ 1,190, Warrants No through in the amount of $ 9, Payroll Direct Deposit in the amount of $ 75, Total Bills to be Paid: $ 1,274, Voided Checks: #110457: Quilcene Fair Wire Transfers: None For a Grand Total of $ 1,274, Items from the Floor, not listed on the Agenda: Mark Jochems addressed the BOC regarding problems he is experiencing with the PUD's billing system and staff follow-up. Jim Parker will work with Mr. Jochems to resolve the issue; Commissioner Collins asked Mr. Jochems to call him in approximately one week for an update. Commissioner Reports: The Commissioners reported on meetings and events they attended, and plan to attend, on behalf of the PUD. Highlights: Commissioner King met with State auditors on March 1 st to discuss NoaNet and PUD audit issues. The auditors understand the PUD's position and are pleased we're moving forward. They expect it will probably take two years to get the PUD completely back on track. JPUD: March 1, 2016 Page 2

4 Commissioner Burke has been elected Vice Chair of the City of Port Townsend/Jefferson County Climate Action Committee. The BOC discussed a legislative update from the Washington Public Utility Districts Association (WPUDA), distributed by Commissioner Burke. MOTION: By Commissioner Burke; seconded by Commissioner Collins; and carried unanimously: to ask Richard Hughes to follow up on the WPUDA request to see if the powers contemplated in House Bill 2966, (concerning transportation infrastructure electrification), are already things which Washington PUDs have authority to do under RCW 54, (Revised Code of Washington, concerning PUD dispositions). Commissioner Collins met with Moss Adams and reviewed the February 16 BOC meeting motion regarding contracting for financial support. Moss Adams will provide support in financial reports preparation per BOC requests. One particular item in the motion needs to be flexed since Bob Caprye can't act on findings until they are delivered, the April deadline may need to float. Commissioner Collins received an from John Comstock, who had previously agreed to serve the on the PUD Citizen Advisory Board, (CAB), in which he withdrew his application for the position. Commissioner Collins contacted Roger Risley, who agreed to serve. MOTION: By Commissioner Burke; seconded by Commissioner Collins; and carried unanimously: to appoint Roger Risley to represent District 2 on the Citizen Advisory Board. Action Items: PUD staff and the BOC reviewed and discussed: National Information Solutions Cooperative, (NISC), Mobile Work Force Module: The BOC reviewed the module proposal. MOTION: By Commissioner Burke; seconded by Commissioner King; and carried unanimously: to approve purchase of the NISC mobile work force module for $28,700. Supervisory Control And Data Acquisition, (SCADA), System Vulnerability: The BOC discussed Bonneville Power Administration's concerns regarding SCADA system vulnerability in light of recent hacking accomplished through that system. Fee Change: Temporary Underground Electrical Services: The BOC reviewed the proposed change. MOTION: By Commissioner Burke; seconded by Commissioner King; and carried unanimously: to approve the change in the standard charge for temporary service, that in addition to the service charge of $70.00 the customer supplies wire for underground temporary service. Discussion Items: The BOC and staff discussed: SDS Research 2015 Customer Satisfaction Survey Report Findings: Commissioner Burke would like the report to be posted online. The BOC agreed he will draft a letter to customers addressing comments in the survey for consideration at its next meeting. JPUD: March 1, 2016 Page 3

5 PUD Communication Plan: Jim Parker distributed a memo regarding the communication program. Commissioner King recommended Don McDaniel write the PUD's press releases, as he did for Puget Sound Energy when he managed its Olympic Peninsula assets. Bill Graham and Don McDaniel will develop a communication plan for the March Rates & Fees Workshop. PUD Human Resources/Communications Position: Jim Parker distributed a sample job description for a public affairs and human resources director. The BOC discussed possible avenues for finding qualified candidates. Resolution: Exempt Staff Compensation Policy: The BOC reviewed proposed policy updates, which will be presented as an action item at the next BOC meeting. Local Utilities District, (LUD), #3 Booster Pump Bid: The BOC reviewed the Section 6 Bid Sheet. Jim Parker will sign and reward the contract as described. Peterson Lake Timber Harvest Contract: The BOC reviewed the forest management services contract. District Manager Report: Jim Parker addressed: Personnel issues State Auditor update Rates and Charges workshop, which will include a Capital Improvement Plan update New substation transformer Training with fire districts Truck radios Light Emitting Diode, (LED), conversion for City street lights US Bureau of Reclamation drought contingency funding Telecom and SCADA assets inventorying: Bill Graham will invite NoaNet representatives to meet with the BOC regarding telecom assets Land Trust potholes June emergency management exercise Non-pay shut offs: Jim will try to secure temporary payment contracts with each delinquent customer before shut-offs are done Executive Session: The purpose of the executive session was to discuss union negotiations. The BOC Regular Board Meeting was adjourned to enter Executive Session at 7:00 p.m.; the Session ended at 7:40 p.m The BOC regular meeting was reconvened at 7:42 and no action was taken. JPUD: March 1, 2016 Page 4

6 Commissioner Calendar Review: The BOC reviewed upcoming events, including: CAB Meeting: Monday, March BOC Regular meeting: Tuesday, March BOC Workshop on Rates & Fees, Monday, March 21 Correspondence: None Future Planning Discussion: No items to address. Adjournment: MOTION: By Commissioner Burke; seconded by Commissioner King; and carried unanimously: to adjourn the March Regular Board Meeting at 7:46 p.m Minutes prepared by Pamela Browning, Minute Taker Approved: Commissioner Wayne King, Secretary Date Please note PUD Board of Commissioner meetings are audio recorded and posted to the PUD website at usually within 1-2 business days of each meeting. If you experience any difficulty accessing a particular recording, you may call for assistance. Jefferson PUD provides reasonable accommodations to persons with disabilities. We invite any person with special needs to contact our staff at at least 24 hours before the meeting to discuss any special accommodations. JPUD: March 1, 2016 Page 5

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15 RESOLUTION NO A Resolution of the Board of Commissioners of Public Utility District No. 1 of Jefferson County, Washington ("the PUD"), establishing Titles and Biweekly Salary Ranges for Staff Employees plus Incorporating Benefits for Non-represented Employees WHEREAS, RCW requires that the General Manager recommend to the Commission compensation for employees; and WHEREAS, RCW authorizes the Commission to create positions and fix salaries; and WHEREAS, RESOLUTION NO was approved on the 5 th of February 2013 to establish Titles and Biweekly Salary Ranges for Staff Employees plus Incorporating Benefits for Non-represented Employees; and WHEREAS, RESOLUTION NO was approved on 5 August 2014 amending and updating RESOLUTION NO ; and WHEREAS, the PUD will be increasing staffing levels and compensation to better to support the PUD BOC Strategic Plan approved in 2015; and WHEREAS, the General Manager has reviewed the organization of the District, the positions and salary ranges required to efficiently manage and achieve the goals of the District; and WHEREAS, the District desires to attract and retain qualified employees to fill authorized positions of the District; and WHEREAS, the Commission approves the annual budget, which includes staff allocation and funding to meet the operational requirements of the District; and WHEREAS, the Commission authorizes the General Manager to administer merit pay increases, employee promotions, demotions, transfers, equity and market adjustments, and other administrative actions that conform to the limitations set within the Titles and Biweekly Salary Ranges for Staff Employees limitations; now, therefore, be it RESOLVED, RESOLUTON be rescinded and that this resolution becomes entirely effective on 1 April 2016: 1. That the General Manager is hereby authorized, on behalf of the District to administer merit pay increases, based on performance for employees of the District, not represented under the Collective Bargaining Agreements and excluding the General Manager and District Auditor. Resolution

16 2. That the Commission authorizes the General Manager to administer merit pay increases, employee promotions, hiring, demotions, transfers, equity and market adjustments, and other administrative actions that conform to the limitations set within and in accordance with the Titles and Biweekly Salary Ranges for Staff Employees (attached) as hereby approved by the Commission. 3. That the General Manager shall include within the annual budget sufficient funds to support merit pay requirements for the year. 4. That the General Manager shall receive Commission approval for all modifications to the Titles and Bi-weekly Salary Ranges for Staff Employees. 5. That the General Manager shall be authorized to amend the current exempt employee benefits as outlined in the Titles and Bi-weekly Salary Ranges for Staff Employees, Exhibit A this Resolution. 6. That the following titles be included in the Titles and Biweekly Salary Ranges for Staff Employees: Human Resources Manager, Records Administrative Manager, Controller/Accountant, Communications Specialist, Administrative Assistant, Conservation Program Manager, Accounting Specialist, Customer Service Manager, Resource Manager, Professional Engineer, Engineer in Training, Finance Director, Financing & Accounting Manager, Electric Operations Superintendent, Water/Sewer Operations superintendent, IT supervisor, IT Specialist and GIS,/ Dispatcher. ADOPTED by the Commission of Public Utility District No. 1of Jefferson County, Washington, at a regular open meeting held this 15 day of March Kenneth Collins Barney Burke Wayne King President Vice President Secretary IN WITNESS WHEREOF I have hereunto set my hand and affixed the seal of the Corporation this 15 th day of March Wayne King, Secretary (Corporate Seal) Resolution

17 EXHIBIT A Titles and Biweekly Salary Ranges for Staff Employees As of 1 April 2016 in Dollars Low Mid High Admin Assistant 1,500 2,000 3,000 Human Resource Manager 2,000 3,000 4,500 Communications Specialist 1,500 2,000 3,000 Records Management Specialist 1,500 2,000 3,000 Controller/Accountant 2,500 3,500 4,500 Accounting Specialist 2,500 3,000 4,000 Customer Service Manager 2,000 3,000 3,500 Information Technology Specialist 2,500 3,000 4,000 Telecom Manager 2,000 3,000 4,000 Water Resource Manager 2,500 3,500 4,500 Conservation Program Manager 1,500 2,000 3,000 Engineer Professional 3,000 4,000 5,000 Engineer in Training 2,000 3,000 4,000 Finance Director 4,000 4,500 5,500 Electrical Operations Superintendent 4,000 4,500 5,500 Water Operations Superintendent 4,000 4,500 5,500 Information Technology Manager 3,500 4,000 5,000 GIS/Dispatching 3,500 4,000 5,000 Resolution

18 Amendments to Exempt Employee Benefits The following amendments, effective 1 April 2016 are made to non-represented employees as listed in the Titles and Biweekly Salary Ranges for Staff Employees. The vacation and sick leave programs will be superseded by the Personal Leave Program. I. PERSONAL LEAVE PROGRAM 1. A personal Leave Program has been instituted in recognition of the need for paid time off for rest and recreation, illness, injury, child care, bereavement, personal business or any other approved absence from work on a paid leave status, except to the extent Worker s Compensation, Occupational Disability Allowance, Short Term Disability Plan, or Long Term Disability Plan provisions, provide otherwise. Regular, part-time employees shall accrue personal leave at the rate of one-half of the full time employee. 2. Except while receiving occupational disability allowance, while on Short Term Disability, or in a leave without pay status, each eligible employee shall accrue Personal Leave as follows: Years of Service Accr. Years of Service Accr. Years of Service Accr. Rate* Rate* Rate* During the 1 st Year 20 During the 8 th year 25 During the 15 th year 30 During the 2 nd Year 20 During the 9 th year 25 During the 16 th year 31 During the 3 rd Year 20 During the 10 th year 25 During the 17 th year 32 During the 4 th Year 20 During the 11 th year 26 During the 18 th year 33 During the 5 th Year 20 During the 12 th year 27 During the 19 th year 34 During the 6 th Year 25 During the 13 th year 28 During the 20 th year 35 During the 7 th Year 25 During the 14 th year 29 Thereafter 35 * day for the purposes of this section means eight (8) hours 3. Use of Personal Leave shall be conditioned upon completion of six (6) months of continuous employment, operational needs of the District and approval of the General Manager or designee. Approval of the unplanned use of Personal Leave shall be sought as early as practicable. All other use of Personal Leave shall be scheduled such that advance approval is sought at least twice as early as the length or the requested leave (e.g., one week s leave would require at least two weeks notice). The District shall respond to the request within five (5) working days. It is the intention that leave be granted upon shorter notice for emergencies, death, illness or serious accident in the immediate family. Unplanned use of Personal Leave so frequent as to interfere with job performance or District operations shall subject he employee to possible disciplinary action, regardless of the cause for such unplanned use. Resolution

19 4. Personal leave accrual for each regular employee shall commence from the first date of his last employment. After the first year of employment, each employee must use a minimum of ten (10) days personal leave per year. Failure to use such ten (10) days personal leave shall result in forfeiture of any unused portion each year unless such failure is the result of occupational disability or extended illness. 5. The maximum accumulation (carry over) of personal leave for any regular employee by the end of each posting on or near January 1 st of each year shall be sixty-three (63) days (504 hours) and any personal leave in excess of the sixty-three (63) days (504 hours) shall be forfeited. 6. In case of the death of any employee, all accumulated earned personal leave wil be paid to the employee s designated beneficiary. 7. In recognition of the fact of extended illness or injury, there is established a Short Term Disability (STD) benefit as set forth below: a. Employees who are unable to work for forty (40) consecutive regularly scheduled hours because of their illness or injury, as certified by licensed, competent medical authority, shall receive seventy percent (70%) of their regular straight time base pay from the forty-first (41 st ) regularly scheduled hour of their inability to work until they either recover and return to work or complete the waiting period required of the District s long term disability insurance eligibility, whichever is earlier. Accrued personal leave may be used to make up the difference between the STD benefit payment and 100% of gross straight-time pay. b. Return to work from coverage by the Short Term Disability benefit is conditioned upon certification by licensed, competent medical authority that he employee is able to fully perform the duties of the job and is otherwise fit to return to work. c. An employee, who returns to work from coverage by the Short Term Disability benefit and works less than thirty (30) calendar days because of a relapse as certified by a licensed, competent medical authority, may return to coverage by the Short Term Disability benefit immediately upon such relapse. d. Any employee who returns to work, full time with no restrictions, from coverage under the Short Term Disability benefit and is required to attend recovery or follow-up doctor appointments related to the same illness or injury within ninety (90) calendar days of the first day of return may include these appointments under coverage by the Short term Disability benefit as described without having to revisit the forty (40) hour waiting period. e. Personal leave will be accrued at a rate of 70% of the normal rate as shown under paragraph 2 this exhibit while covered by the Short Term Disability benefit, provided that when an employee uses the personal leave option to make up all, or a portion of, the difference between the Short Term Disability benefit payment and 100% of gross straight-time pay, personal leave will then be accrued at the total rate between 70% and 100%. All other benefits will continue to accrue at the normal rates. 8. Any request for personal leave of over thirty (30) days may be rejected by the District maybe rejected by the District if at least six months notice is not given, and then only dependent upon the District s work schedule. Resolution

20 9. The District shall not be required to permit more than one employee from any work classification to be on personal leave at the same time. 10. Any employee who has accumulated personal leave time as herein provided and who terminates his employment with the District after giving the District two weeks advance notice of his intention to quit, shall receive his accrued personal leave pay; provided it is in conformance with the provisions contained herein. 11. Any employee who enlists or is inducted into the armed services of our country shall be paid for the personal leave time he has accrued to-date to the date he leaves the employment of the District. 12. Regular, full-time employees of the District shall be allowed to convert a portion of their personal leave to cash at the end of December of each calendar year, provided the following guidelines. An employee must use a minimum of fifteen (15) days scheduled personal leave annually prior to any conversion. 13. After use or conversion, a minimum of sixty-three (63) days (504 hours) of accrued personal leave must remain in the employee's accrual account at the end of December of each calendar year. 14. Any personal leave accrual remaining at the time an employee begins to receive the LTD benefit shall be paid in full less statutory deductions. 15. Once all STD and personal leave coverage has been exhausted and, according to the prognosis received from a certified medical doctor, an employee will be able to return to their previous position with the District at full capability, the employee may request leave of absence status. 16. Recognizing that there are existing employees who have been under the vacation / sick pay program, the PUD offers the following conversion formula. Accrued unused vacation time converts to Personal Leave on a one to one ratio. Accrued unused sick leave converts at a 33% ratio that is each 3 hours of accrued sick leave converts to one hour of Personal Leave. II. The holiday schedule is amended as follows: 1. New Years Day 2. Martin Luther King Jr. Day 3. President's Day 4. Memorial Day 5. Fourth of July 6. Labor Day 7. Veteran's Day 8. Thanksgiving Day 9. Day after Thanksgiving Day 10. Christmas Day 11. Floating Holiday Resolution

21 PSA-Cronin-2016 PROFESSIONAL SERVICES AGREEMENT FOR Forest Management Services THIS AGREEMENT is entered into between the Public Utility District No 1 of Jefferson County, a municipal corporation, hereinafter referred to as the "PUD", and Michael R. Cronin, Forester, hereinafter referred to as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the PUD to perform Forest and Timber Management services in connection with various projects including, but not limited to, Pre & Post Timber Harvest Management, Forestry Planning and Design, Environmental Review, Timber Cruise and Removal Planning for Parks, Non-motorized & Motorized Transportation Facilities; and PUD owned properties. Forestry Planning, Design, and Forestry Contract Management/Inspection Related to PUD Properties; Forestry Related Permitting and Coordination Services. 2. Scope of Services. The Consultant is retained by the PUD to provide services outlined on the attached Project Scope and Fee Proposal documents dated February 11, 2016 on an as needed basis by the PUD. Each item of work under this AGREEMENT will be provided by task assignment. Each assignment will be individually negotiated with the Consultant. The amount established for each assignment will be the maximum amount payable for that assignment, including the provision of all labor, materials, equipment and supplies, unless modified in writing by the PUD. The PUD is not obligated to assign any specific number of tasks to the Consultant, and the PUD s and Consultant s obligation hereunder are limited to tasks assigned in writing. Task assignments made by the PUD shall be issued in writing by a Formal Task Assignment Document or FTAD. An assignment shall become effective when a FTAD is signed by the Consultant and the PUD, except that emergency actions requiring a 24-hour or less response can be handled by an oral authorization. Such oral authorization shall be followed up with a FTAD within four working days, and any billing rates agreed to orally (for individuals, subconsultantssub consultants, or organizations whose rates were not previously established in the AGREEMENT) shall be provisional and subject to final negotiation and acceptance by the PUD. The work to be performed by the Consultant pursuant to a signed FTAD shall be known herein as a Task. 3. Time for Performance. Work under this contract shall commence upon the giving of written notice by the PUD to the Consultant to proceed for each Task. Consultant shall perform all services and provide all work product required pursuant to this Agreement within the time established for each Task, unless an extension of such time is granted in writing by the PUD. This contract will expire on December 31, Payment. The Consultant shall be paid by the PUD for completed work and for services rendered under this agreement as follows: - 1 -

22 PSA-Cronin-2016 a. Payment for the work provided by Consultant shall be made as negotiated in each FTAD in accordance with the attached Project Scope and Fee Proposal dated February 11, The rates listed shall be applicable for the first 12-month period and shall be subject to negotiation for the following 12-month period upon request of the Consultant or the PUD. The rates are inclusive of direct salaries, payroll additives, overhead, and fee. In the event renegotiation of the hourly rates is conducted, the PUD reserves the right to audit for any change in the overhead rate currently in use by the Consultant and modify the hourly rates to be paid to the Consultant subsequent to the renegotiation accordingly. b. The maximum amount payable for each Task will be identified. The PUD is under no obligation to provide a minimum amount of work or payment under this Agreement. The maximum cumulative amount payable under this Agreement shall not exceed $20,000. c The Consultant may submit vouchers to the PUD once per month during the progress of the work for partial payment for project completed to date, up to 90% of total project costs for any given Task. Such vouchers will be checked by the PUD, and upon approval thereof, payment will be made to the Consultant in the amount approved. d. Final payment of any balance due the Consultant of the total contract price earned for any given Task will be made promptly upon its ascertainment and verification by the PUD after the completion of the work under this agreement and its acceptance by the PUD. e. Payment as provided in this section shall be full compensation for work performed, services rendered and for all materials, supplies, equipment and incidentals necessary to complete the work. f. The Consultant's records and accounts pertaining to this agreement are to be kept available for inspection by representatives of the PUD and state for a period of three (3) years after final payments. Copies shall be made available upon request. 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this agreement shall be the property of the PUD whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with Consultant's endeavors. 6. Compliance with laws. Consultant shall, in performing the services contemplated by this agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services to be rendered under this agreement. 7. Indemnification. Consultant shall indemnify, defend and hold harmless the PUD, its officers, agents and employees, from and against any and all claims, losses or liability, or any portion thereof, including attorney s fees and costs, arising from injury or death to - 2 -

23 PSA-Cronin-2016 persons, including injuries, sickness, disease or death to Consultant's own employees, or damage to property occasioned by a negligent act, omission or failure of the Consultant. 8. Insurance. Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non-owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence with the PUD named as an additional insured in connection with the CONSULTANT'S performance of the contract. Said general liability policy shall name the PUD No 1 of Jefferson County as an additional insured and shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to the PUD. Certificates of coverage as required by this section shall be delivered to the PUD within fifteen (15) days of execution of this agreement. 9. Independent Contractor. The Consultant and the PUD agree that the Consultant is an independent contractor with respect to the services provided pursuant to this agreement. Nothing in this agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Consultant nor any employee of Consultant shall be entitled to any benefits accorded PUD employees by virtue of the services provided under this agreement. The PUD shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to Consultant, or any employee of Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warranty, the PUD shall have the right to annul this contract without liability or, in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under this agreement, will not discriminate on the grounds of race, color, national origin, religion, creed, age, sex or the presence of any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this agreement without the express written consent of the PUD

24 PSA-Cronin Non-Waiver. Waiver by the PUD of any provision of this agreement or any time limitation provided for in this agreement shall not constitute a waiver of any other provision. 14. Termination. a. The PUD reserves the right to terminate this agreement at any time by giving ten (10) days written notice to the Consultant. b. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this agreement, if requested to do so by the PUD. This section shall not be a bar to renegotiations of this agreement between surviving members of the Consultant and the PUD, if the PUD so chooses. 15. Notices. Notices to the PUD of Jefferson shall be sent to the following address: PUD #1 of Jefferson County 310 Four Corners Road Port Townsend, WA Phone: (360) Notices to Consultant shall be sent to the following address: Michael R. Cronin, Forester 371 Hidden Trails Road Port Townsend, WA Phone: (360)

25 PSA-Cronin Integrated Agreement. This Agreement together with attachments or addenda, represents the entire and integrated agreement between the PUD and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. This agreement may be amended only by written instrument signed by both PUD and Consultant. DATED this day of, Consultant SEAL ATTEST: PUD#1 Jefferson County Board of Commissioners Kenneth Collins, President Barney Burke, Vice President Wayne King, Secretary Robert Phillips, Notary Approved as to Form Only: Jim ParkerRichard Hughes Attorney Manager - 5 -

26 PSA-Cronin-2016 Jefferson County PUD 2/11/16 Scope of Work Task time estimated completion date 1. Recon the 3 potential timber sale units to determine Boundaries and logging access 8 hours 02/29/16 2. Prepare and present to PUD the harvest unit scenarios with projected revenue. 4 02/29/16 3. Complete field layout for selected alternative 30 03/19/16 4. Cruise all merchantable timber on sale units 32 03/28/16 5. Complete FPA for proposed timber sale 20 03/28/16 6. Prepare timber sale contract and Notice of Sale 8 04/30/16 7. Appraise total stumpage values to get minimum bid 8 04/30/16 8. Receive Sale bids and answer questions before auction date 8 05/30/16 9. Attend pre-work conference with sale purchaser rep or Administer Timber Sale Contract or 2017 Total estimated time: 166 hours Hourly rate = $ $55.00 = $9, estimated total costs through harvest completion in 2016 or

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42 15 March 2016 Memo for Record Subject: Mobilisa 1. Purpose to provide BOC with update of state of Mobilisa and PUD property. 2. from NoaNet: Nothing really changes. Eagle Coast LLC which is owned by Nelson Ludlow, the former CEO for Intellicheck, owns the building, tower and property at 191 Otto Street. Because this is the launch point for the wireless network from the tower we will need to maintain our equipment at that location. The COLO has UPS backup and a generator onsite so it meets our requirements for a backbone COLO. I m presently working with Mr. Ludlow on finalizing a lease that will cover our equipment in the building and on the tower. The holdup has been the negotiations between Intellicheck who is planning to vacate the building and Eagle Coast LLC. That has been recently completed, but there are still some remaining questions about what equipment Intellicheck may leave in the building. I believe those have been resolved and they are going to remove all their equipment, but I m waiting to hear from Mr. Ludlow for the final resolution. As soon as he has everything sorted out I m expecting him to send me a new lease document that I will get over to the PUD for signature. As far as the sale of Mobilisa to JNET goes there really wasn t a sale of Intellicheck/Mobilisa to JNET. Intellicheck kept the company Mobilisa, Inc. They did work out an arrangement for the Intellicheck/Mobilisa staff to be acquired by JNET. Only the personnel went to JNET to my knowledge. They have nothing to do with the JPUD network other than being a contractor to NoaNet for break/fix or line extension work. Control of the assets are currently the responsibility of NoaNet under our ILA agreement to operate and maintain the JPUD network. Let me know if you have any further questions. John 3. POC this memo is undersigned James G. Parker Manager

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47 RESOLUTION NO A Resolution of the Board of Commissioners of Public Utility District (PUD) No. 1 of Jefferson County, Washington, declaring the period of 9 March through 14 March, 2016 a state of emergency and authorizing the PUD manager to purchase materials and order work to assist regularly employed personnel in the any amount necessary. WHEREAS, the RCW , Contracts for work or materials notice exemptions, section (6) states: Pursuant to RCW the commission may waive the competitive bidding requirements of this section and RCW if an exemption contained within RCW applies to the purchase or public work, and; WHEREAS, RCW , Competitive bidding requirements Exemptions, section 2 (b) states: If an emergency exists, the person or person designated by the governing body of the municipality to act in the event of an emergency may declare an emergency situation exists, waive competitive bidding requirements, and award all necessary contracts on behalf of the municipality to address the emergency situation, and; WHEREAS, the PUD Procurement Manual Section 8.26, Emergency Purchases or Public Works (RCW ) section states: The Commission shall declare, by resolution, a state of emergency at the next scheduled public meeting approving the purchase of materials and/or work, and; WHEREAS, as a direct result of the wet soil condition and strong winds that occurred on 9 and 10 March 2016, the PUD lost a large section of its metered electrical customers to fallen lines and equipment failure, and; WHEREAS, The PUD manager authorized the Electrical Superintendent to utilize the existing rates and charges for outside assistance to respond to the damage of the storm and needed to invoke RCW NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Public Utility District No. 1 of Jefferson County, that it declares that the period of 9, 10, 11, 12, and 13 March 2016 a state of emergency authorizing the PUD manager to contract outside work under RCW ADOPTED at a Regular Meeting of the Board of Commissioners of the Public Utility District No. 1 of Jefferson County, Washington, held this 15th day of April Barney Burke, Ken Collins, Wayne King, Commissioner Commissioner Commissioner

48 SECRETARY'S CERTIFICATE I, Wayne King, do hereby certify that: I am the Secretary of Public Utility District #1 of Jefferson County (hereinafter the "District") that the following are true and correct copies of resolutions duly adopted by the Board of Directors of the District at the regular meeting held the 15 th day of March 2016, and entered in the minute book of the District; that the meeting was duly and regularly called and held in accordance with the bylaws of the District; and that none of the following resolutions has been rescinded or modified: RESOLUTIONS RESOLVED the period of 9 thru 14 March 2016 a state of emergency authorizing the PUD manager to contract outside work under RCW I FURTHER CERTIFY THAT each member of the Board of Commissioners of the District was furnished with notice of said meeting in compliance with the bylaws of the District. IN WITNESS WHEREOF I have hereunto set my hand and affixed the seal of the Corporation this 15 th day of March Wayne G. King, Secretary (Corporate Seal)

49 DRAFT Survey Response Letter/BB/Liz edits Dear Customers, Thank you for answering the survey we sent out in October. Nearly one in five customers responded, and we PUD commissioners have read every comment (true?). The complete results are posted at jeffpud.org/xxxxx. As a community owned, not for profit utility our focus is on delivering reliable service in a cost effective, sustainable and consumer driven manner. Your responses give a clear picture of ways we can better serve you. Here's a summary of your feedback and the steps we are taking to improve our service: Customer service There were many comments about long hold times, full voic boxes, difficulty in reaching a live person, and problems with our billing system. Also, the need for prompt return phone calls in response to customer inquiries regarding rebates and service hookups. We have taken several actions to ensure we are quickly responding to your needs. We recently hired an additional customer service representative (CSR) and are in the process of hiring two more, which will give us a total of seven. This will give you timely access to a knowledgeable staff member who can efficiently assist you. With our new software, CSRs are now able to provide a wide variety of services without having to transfer you to to another department. Now your customer service representatives can initiate work orders for electric service hookups (no more waiting for a call from the PUD s engineering department), process conservation rebates, answer your billing questions and more. We look forward to responding to your needs with this enhanced service. We launched our new billing system in November offering you a variety of options to manage your account. You can see your daily electric usage via the "smarthub" at jeffpud.org. You can pay online, set up auto pay, and choose paperless billing. Outage response There were many concerns about the frequency of recent storm outages and response times. We have had more storms in the last six months, including three that qualified for disaster reimbursement from FEMA, but we're also investing in ways to reduce outage time and keep customers better informed. We have enhanced our outage reporting to provide you with timely updates on our work to restore power. We now bring in a phone answering service to help staff field customer calls during larger outages. But even if you don't call in, our new software creates a map pinpointing outages as they occur, helping us dispatch crews. Even when your power is out, with a smartphone, you can see the outage map and read updates posted at jeffpud.org and on twitter (@Jefferson_PUD). We've installed equipment that reduces the length of outages. The PUD has installed a number of "reclosers" on the grid, which are like large circuit breakers. These enable crews to sometimes remotely fix a problem that may be miles away. Dividing long sections of line into shorter lengths using reclosers speeds up diagnosis and repairs.

50 We are hiring a new employee whose responsibilities include communications. That person will work with the PUD Commissioners, our Citizens Advisory Board and the public to enhance our communication, keeping you informed. We recognize that good communication is essential for everything from outage responses to We have ensured a timely response to outages by programming hand held GPS navigation devices for all of our trucks, plus extras for crews we have under contract to assist when additional resources are needed. With the location of every key component of the grid pre programmed, crews get turn byturn directions even when an outage is in a remote location where there are few paved streets. We are doing a lot more tree trimming throughout the county, as many people have recommended. Rates Quite a few people commented that the PUD had raised electric rates. Actually, the PUD is still using the same rates that PSE was charging when we took over on April 1, However, a rate study indicates that we will need to increase revenues because, like any enterprise, some of our costs have increased over the last three years. In particular, the cost of the power we buy from Bonneville Power Authority has increased by 6% and we need to replace aging equipment to prevent avoidable outages. The PUD board is just starting to has been carefully studying this issue again, and we want will ask for your input before any decisions are made. More information on the rate study is located at jeffpud.org/xxxx. Many customers expressed concerns about keeping rates low, especially for low income and/or disabled customers, and that will be part of the discussion. New technologies There was a lot of interest in new technologies, but several people noted that we shouldn't have lumped broadband (communication fiber), community solar, and electric vehicle chargers into one survey question. Fair enough. We still have areas where high speed broadband is not available. Customers have questions about how broadband expansion is funded, and the role of the PUD and private companies in delivering that service. Over the past year, we have discussed the broadband issues with community leaders, internet service providers and other PUDs to identify options and determine a part forward to increase broadband access across Jefferson County. Likewise, there was interest but also questions and concerns regarding solar (including private solar systems and "community solar," where customers can buy shares of a utility owned solar array) and electric vehicle chargers. How do these technologies work, what are the costs and benefits, and how might they affect rates? These are important questions and we are committed to providing answers and continuing a dialogue with customers to keep you updated on these technologies and seek your input in the decisions we make. Communication Our customers said it loud and clear: The PUD needs to do a better job of communicating! The survey itself, while not without problems, represented a start in soliciting input from our customers about JPUD performance and community priorities. To provide greater transparency, for the past year, meetings of the JPUD Board of Commissioners have been recorded and are available for download on the website.

51 As many of you said in your survey response, our employees work hard to keep the lights on and rates affordable without sacrificing safety or reliability. We have a knowledgeable, dedicated staff who are committed to putting your feedback into action; improving service to better meet your needs. Again, thank you for your valuable feedback. commissioners...

52 PSA-Cronin-2016 PROFESSIONAL SERVICES AGREEMENT FOR Forest Management Services THIS AGREEMENT is entered into between the Public Utility District No 1 of Jefferson County, a municipal corporation, hereinafter referred to as the "PUD", and Michael R. Cronin, Forester, hereinafter referred to as "the Consultant", in consideration of the mutual benefits, terms, and conditions hereinafter specified. 1. Project Designation. The Consultant is retained by the PUD to perform Forest and Timber Management services in connection with various projects including, but not limited to, Pre & Post Timber Harvest Management, Forestry Planning and Design, Environmental Review, Timber Cruise and Removal Planning for Parks, Non-motorized & Motorized Transportation Facilities; and PUD owned properties. Forestry Planning, Design, and Forestry Contract Management/Inspection Related to PUD Properties; Forestry Related Permitting and Coordination Services. 2. Scope of Services. The Consultant is retained by the PUD to provide services outlined on the attached Project Scope and Fee Proposal documents dated February 11, 2016 on an as needed basis by the PUD. Each item of work under this AGREEMENT will be provided by task assignment. Each assignment will be individually negotiated with the Consultant. The amount established for each assignment will be the maximum amount payable for that assignment, including the provision of all labor, materials, equipment and supplies, unless modified in writing by the PUD. The PUD is not obligated to assign any specific number of tasks to the Consultant, and the PUD s and Consultant s obligation hereunder are limited to tasks assigned in writing. Task assignments made by the PUD shall be issued in writing by a Formal Task Assignment Document or FTAD. An assignment shall become effective when a FTAD is signed by the Consultant and the PUD, except that emergency actions requiring a 24-hour or less response can be handled by an oral authorization. Such oral authorization shall be followed up with a FTAD within four working days, and any billing rates agreed to orally (for individuals, subconsultantssub consultants, or organizations whose rates were not previously established in the AGREEMENT) shall be provisional and subject to final negotiation and acceptance by the PUD. The work to be performed by the Consultant pursuant to a signed FTAD shall be known herein as a Task. 3. Time for Performance. Work under this contract shall commence upon the giving of written notice by the PUD to the Consultant to proceed for each Task. Consultant shall perform all services and provide all work product required pursuant to this Agreement within the time established for each Task, unless an extension of such time is granted in writing by the PUD. This contract will expire on December 31, Payment. The Consultant shall be paid by the PUD for completed work and for services rendered under this agreement as follows: - 1 -

53 PSA-Cronin-2016 a. Payment for the work provided by Consultant shall be made as negotiated in each FTAD in accordance with the attached Project Scope and Fee Proposal dated February 11, The rates listed shall be applicable for the first 12-month period and shall be subject to negotiation for the following 12-month period upon request of the Consultant or the PUD. The rates are inclusive of direct salaries, payroll additives, overhead, and fee. In the event renegotiation of the hourly rates is conducted, the PUD reserves the right to audit for any change in the overhead rate currently in use by the Consultant and modify the hourly rates to be paid to the Consultant subsequent to the renegotiation accordingly. b. The maximum amount payable for each Task will be identified. The PUD is under no obligation to provide a minimum amount of work or payment under this Agreement. The maximum cumulative amount payable under this Agreement shall not exceed $20,000. c The Consultant may submit vouchers to the PUD once per month during the progress of the work for partial payment for project completed to date, up to 90% of total project costs for any given Task. Such vouchers will be checked by the PUD, and upon approval thereof, payment will be made to the Consultant in the amount approved. d. Final payment of any balance due the Consultant of the total contract price earned for any given Task will be made promptly upon its ascertainment and verification by the PUD after the completion of the work under this agreement and its acceptance by the PUD. e. Payment as provided in this section shall be full compensation for work performed, services rendered and for all materials, supplies, equipment and incidentals necessary to complete the work. f. The Consultant's records and accounts pertaining to this agreement are to be kept available for inspection by representatives of the PUD and state for a period of three (3) years after final payments. Copies shall be made available upon request. 5. Ownership and Use of Documents. All documents, drawings, specifications and other materials produced by the Consultant in connection with the services rendered under this agreement shall be the property of the PUD whether the project for which they are made is executed or not. The Consultant shall be permitted to retain copies, including reproducible copies, of drawings and specifications for information, reference and use in connection with Consultant's endeavors. 6. Compliance with laws. Consultant shall, in performing the services contemplated by this agreement, faithfully observe and comply with all federal, state, and local laws, ordinances and regulations, applicable to the services to be rendered under this agreement. 7. Indemnification. Consultant shall indemnify, defend and hold harmless the PUD, its officers, agents and employees, from and against any and all claims, losses or liability, or any portion thereof, including attorney s fees and costs, arising from injury or death to - 2 -

54 PSA-Cronin-2016 persons, including injuries, sickness, disease or death to Consultant's own employees, or damage to property occasioned by a negligent act, omission or failure of the Consultant. 8. Insurance. Commercial Automobile Liability Insurance providing bodily injury and property damage liability coverage for all owned and non-owned vehicles assigned to or used in the performance of the work for a combined single limit of not less than $500,000 each occurrence with the PUD named as an additional insured in connection with the CONSULTANT'S performance of the contract. Said general liability policy shall name the PUD No 1 of Jefferson County as an additional insured and shall include a provision prohibiting cancellation of said policy except upon thirty (30) days prior written notice to the PUD. Certificates of coverage as required by this section shall be delivered to the PUD within fifteen (15) days of execution of this agreement. 9. Independent Contractor. The Consultant and the PUD agree that the Consultant is an independent contractor with respect to the services provided pursuant to this agreement. Nothing in this agreement shall be considered to create the relationship of employer and employee between the parties hereto. Neither Consultant nor any employee of Consultant shall be entitled to any benefits accorded PUD employees by virtue of the services provided under this agreement. The PUD shall not be responsible for withholding or otherwise deducting federal income tax or social security or for contributing to the state industrial insurance program, otherwise assuming the duties of an employer with respect to Consultant, or any employee of Consultant. 10. Covenant Against Contingent Fees. The Consultant warrants that he has not employed or retained any company or person, other than a bonafide employee working solely for the Consultant, to solicit or secure this contract, and that he has not paid or agreed to pay any company or person, other than a bonafide employee working solely for the Consultant, any fee, commission, percentage, brokerage fee, gifts, or any other consideration contingent upon or resulting from the award or making of this contract. For breach or violation of this warranty, the PUD shall have the right to annul this contract without liability or, in its discretion to deduct from the contract price or consideration, or otherwise recover, the full amount of such fee, commission, percentage, brokerage fee, gift, or contingent fee. 11. Discrimination Prohibited. The Consultant, with regard to the work performed by it under this agreement, will not discriminate on the grounds of race, color, national origin, religion, creed, age, sex or the presence of any physical or sensory handicap in the selection and retention of employees or procurement of materials or supplies. 12. Assignment. The Consultant shall not sublet or assign any of the services covered by this agreement without the express written consent of the PUD

55 PSA-Cronin Non-Waiver. Waiver by the PUD of any provision of this agreement or any time limitation provided for in this agreement shall not constitute a waiver of any other provision. 14. Termination. a. The PUD reserves the right to terminate this agreement at any time by giving ten (10) days written notice to the Consultant. b. In the event of the death of a member, partner or officer of the Consultant, or any of its supervisory personnel assigned to the project, the surviving members of the Consultant hereby agree to complete the work under the terms of this agreement, if requested to do so by the PUD. This section shall not be a bar to renegotiations of this agreement between surviving members of the Consultant and the PUD, if the PUD so chooses. 15. Notices. Notices to the PUD of Jefferson shall be sent to the following address: PUD #1 of Jefferson County 310 Four Corners Road Port Townsend, WA Phone: (360) Notices to Consultant shall be sent to the following address: Michael R. Cronin, Forester 371 Hidden Trails Road Port Townsend, WA Phone: (360)

56 PSA-Cronin Integrated Agreement. This Agreement together with attachments or addenda, represents the entire and integrated agreement between the PUD and the Consultant and supersedes all prior negotiations, representations, or agreements written or oral. This agreement may be amended only by written instrument signed by both PUD and Consultant. DATED this day of, Consultant SEAL ATTEST: PUD#1 Jefferson County Board of Commissioners Kenneth Collins, President Barney Burke, Vice President Wayne King, Secretary Robert Phillips, Notary Approved as to Form Only: Jim ParkerRichard Hughes Attorney Manager - 5 -

57 PSA-Cronin-2016 Jefferson County PUD 2/11/16 Scope of Work Task time estimated completion date 1. Recon the 3 potential timber sale units to determine Boundaries and logging access 8 hours 02/29/16 2. Prepare and present to PUD the harvest unit scenarios with projected revenue. 4 02/29/16 3. Complete field layout for selected alternative 30 03/19/16 4. Cruise all merchantable timber on sale units 32 03/28/16 5. Complete FPA for proposed timber sale 20 03/28/16 6. Prepare timber sale contract and Notice of Sale 8 04/30/16 7. Appraise total stumpage values to get minimum bid 8 04/30/16 8. Receive Sale bids and answer questions before auction date 8 05/30/16 9. Attend pre-work conference with sale purchaser rep or Administer Timber Sale Contract or 2017 Total estimated time: 166 hours Hourly rate = $ $55.00 = $9, estimated total costs through harvest completion in 2016 or

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60 Washington PUD Association March 16-18, 2016 DATE MEETING NAME LOCATION/INFORMATION Wednesday, March 16 Thursday, March 17 Friday, March 18 Commissioner Education & Roundtable 11:00 AM 4:00 PM Education Steering Committee 8:30 AM 9:30 AM Telecom Committee 9:30 AM 10:30 AM Energy Committee 10:30 AM 11:45 PM Power Lunch Speaker: Steve Lerch, WA State Economist 12:00 PM 1:00 PM Government Relations and Communications 1:00 PM 2:00 PM Water Roundtable 2:00 PM 3:00 PM Executive Committee 3:00 PM 4:00 PM Board of Directors Meeting 8:00 AM 12:00 PM Lunch Menu: Cost: $12.00 Menu: Video and Teleconference will be available for committee meetings. Phone: , 1004# Video: 81004

61 Board of Commissioners Barney Burke, District 1 Kenneth Collins, District 2 Wayne G. King, District 3 James G. Parker, Manager Public Notice of PUD Board Special Meeting - Workshop on Rates and Cost of Service PUD#1 of Jefferson County Board of Commissioners will be holding a special meeting on Monday, 21 March 2016 to conduct a workshop on a Rate Simplification and Consolidation, and to discuss the Cost of Service and Rate Study being done for the PUD by EES. The workshop will include a discussion on the initial results of their Cost of Service study and steps to update the study. The special meeting will start at 10:00 a.m. at the PUD s 230 Chimacum Road, Port Hadlock Washington office and run no later than 2:00 p.m. the same day. The PUD Board will not make any decisions or take any actions at this meeting. For information on this meeting please call the PUD at James G. Parker, PE Manager PH (360) FX (360) Four Corners Road, Port Townsend, WA customerservice@jeffpud.org Public Utility District #1 of Jefferson County is an equal opportunity provider