AGENDA. 5PM Budget Regular Meeting Administration Building 230 Chimacum Road, Port Hadlock 9 December 2014

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1 Board of Commissioners Barney Burke, District 1 Ken McMillen, District 2 Wayne G. King, District 3 AGENDA James G. Parker, Manager 5PM Budget Regular Meeting Administration Building 230 Chimacum Road, Port Hadlock 9 December 2014 REGULAR MEETING 1. CALL TO ORDER 2. AGENDA 3. APPROVAL OF MINUTES 3.01 Minutes Budget Hearing 18 November Minutes Regular Meeting of 18 November APPROVAL OF VOUCHERS 4.01 Payment of PUD#1 of Jefferson County Summary Lead sheet 4.02 Payment of PUD#1 of Jefferson County Payroll 4.03 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: DISCUSSION ITEMS: 8.01 NoaNet Agreement 8.02 Conservation status 8.03 Attorney attendance at BOC Meetings 8.04 COS and Rate Study Workshop 8.05 Strategic Plan 8.06 Roll over of Comp time and PTO for year end PH (360) FX (360) Chimacum Road, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

2 8.07 CPUD transfer of assets 8.08 PUD Procurement Policy 8.09 Dispatch opportunity with Security Services 8.10 Wheeling agreement with PT Paper Mill 9 MANAGER REPORT 10 COMMISSIONER CALENDAR 11 CORRESPONDENCE PUDA Clean Energy Resolution PUDA Dues Coyle W.S. Letter PCC Notice of BPA rates DOH Fact Sheet DWSRF loan Pharacy Bag Labels Requests for Road Maintenance Shannon Greene WPUDA Ltr to EPA PDA request for inkind support 12. EXECUTIVE SESSION: Real Estate & Personnel pursuant to RCW ADJOURNMENT PH (360) FX (360) Chimacum Road, Port Hadlock, WA customerservice@jeffpud.org 310 Four Corners Road, Port Townsend, WA 98368

3 PUBLIC UTILITY DISTRICT NO. 1 of Jefferson County November 18, 2014 A question/answer session, moderated by President Wayne King, was advertised and begun at 4:06 p.m. at the Port Ludlow Bay Club, 120 Spinnaker Place, Port Ludlow, WA. Commissioners and staff present were: Wayne King, President Ken McMillen, Vice-President Barney Burke, Secretary James Parker, District Manager Kevin Streett, District Electrical Superintendent Bill Graham, District Resource Manager Don McDaniel, Consultant Kate Pike, Brisa Services Members of the public who addressed the Board were: 1) Phil Otness commented on his desire that elimination of collection of the PUD property tax levy be within the next ten years. 2) Kay Raffo commented on display of budget plan on billing statements. Mr. Parker responded that the pending new billing system is expected to address. 3) Roger Risley commented on the pros and cons of bi-monthly billing. 4) Ken McConnell asked what is the PUD source of energy. Commissioner Burke responded that, through Bonneville Power Administration, the power is 87 per cent hydro and 13 per cent nuclear, all carbon free. 5) Kay Raffo inquired about setting up solar power. Mr. Parker responded that it requires contractor installation and PUD inspection. 6) Phil Otness thanked the Board and staff for reduction of outages in Port Ludlow. 7) Brett Oemichen asked about timing of lower rates. Board responded that a cost-of-service study is in progress and is to be addressed at a workshop on December 9. 8) Leo Boyd questioned if JPUD would have a "split rate" as had Puget Sound Energy. Staff responded that, under Bonneville Power Administration, cannot currently.

4 BUDGET HEARING MINUTES The Budget Hearing of the Public Utility District No.1 of Jefferson County was called to order by the President of the Board of Commissioners at 5:05 p.m. 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 Don McDaniel, Consultant Kate Pike, Brisa Services The Manager presented summaries of the PUD 2015 Draft Budget, currently on file at the District Office, which identified a General Fund Budget Summary and a Utility Fund Budget Summary, as well as a Resolution for adoption of the 2015 Calendar Year Budget and a Resolution to decrease regular property tax levy. Testimony Roger Risley questioned cost-of-living adjustments for Commissioners. Mr. Parker responded that adjustments are set by State legislative action. Adjournment MOTION: By Commissioner McMillen, Second by Commissioner Burke, carried unanimously, to adjourn the Budget Hearing to the Regular Meeting.

5 PUBLIC UTILITY DISTRICT NO. 1 of Jefferson County November 18, 2014 Port Ludlow Bay Club Building 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 5:09 p.m. 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 Don McDaniel, Consultant Kate Pike, Brisa Services AGENDA After introductions the Agenda was approved as submitted. APPROVAL OF MINUTES MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to approve the Budget Hearing Minutes and the Regular Meeting Minutes of November 4, 2014 as submitted and distributed. APPROVAL OF VOUCHERS MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to approve payment of: Warrants No through in the amount of $ 367, Warrants No through in the amount of 84, Total Warrants $ 451, Wire Transfer to Bonneville Power Administration

6 $ 969, $ 1,421, Total PUBLIC COMMENT (for items not listed on the Agenda) 1. Roger Risley, citizen, questioned the the current and future methods of meter reading and the future of using Landis+Gyr for the purpose. Staff response was that additional methods of meter reading are being investigated. 2. Leo Boyd, citizen, questioned who owns the JPUD meters. Staff response was that the District purchased meters from Puget Sound Energy and that Landis+Gyr owns transmitters within the meters. COMMISSIONERS REPORTS Commissioner Burke November 10 & 14: Attended climate adaptation workshops November 18: Attended meeting of Jefferson County Energy Lunch Program December 3-5: Expect to attend Washington Public District Association Annual Conference Commissioner McMillen November 19-21: Expect to attend Washington Public District Association meetings December 3-5: Expect to attend Washington Public District Association Annual Conference Commissioner King November 12: Attended teleconference with NoaNet November 19: Expect to attend meeting of contractors with District Electrical Superintendent November 20: Expect to attend meeting with Department of Commerce on infrastructure December 3-5: Expect to attend Washington Public District Association Annual Conference ACTION ITEMS a) Budget Resolution Property Tax Decrease The Manager presented Resolution No , decreasing property tax levy received from previous year amount. After discussion, and thanking Mr. Phil Otness for his wish that elimination of collection of the PUD property tax levy be within the next ten years, the Board took the following

7 ACTION: MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to adopt Resolution No , decreasing property tax levy received from previous year amount. b) Budget Resolution Adoption of 2015 Budget The Manager presented Resolution No , Adopting a Budget for the Calendar Year After discussion, the Board took the following ACTION: MOTION: By Commissioner McMillen, Second by Commissioner Burke, carried unanimously, to adopt Resolution No , Adopting a Budget for the Calendar Year c) Schedule of Meetings for 2015 The Manager presented a memo for record with regard to the BOC Regular Meeting schedule for 2015, that being the first and third Tuesday of each month, with the exceptions of October (first Monday and third Tuesday of the month) and December (one meeting only on first Tuesday). Also presented was rotation of PUD Board positions. After discussion, the Board took the following ACTION: MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to approve the meeting schedule for DISCUSSION ITEMS a) NoaNet Agreement The Manager presented the Interlocal Cooperation Agreement between the District and Northwest Open Access Network (NoaNet), and Exhibit A, outlining Network Coordination Services; Operations, Engineering and Sales; Telecommunications Networks Services Specifications. A memo for record from the Manager was also presented outlining areas unclear in delineation of responsibilities, specifically construction, operation and maintenance, area and customer extensions, and administrative management/staff. It is hoped that a January 2015 meeting with NoaNet will address. b) Conservation Status District Resource Manager Bill Graham noted that the District's conservation program, an electric energy efficiency program, is growing rapidly due to a flyer included in billing. The District put on a do-it-yourself home energy audit workshop that was very successful. Bonneville Power Administration (BPA), through customer rebates, incentivises energy efficiency projects to be able to judge usage needs. In the residential

8 sector there is approximately $430,000 for residential and low-income residential. Rebate payments (batch 6) will be sent November 19 and (batch 7) on December 10. There is some delay from BPA due to backlog. Regarding low-income offerings, income verification process through OlyCap, is slow and eligibilities for low income differ, with 125 per cent below the Federal Poverty Level for OlyCap and 200 per cent below the Federal Poverty Level for BPA. With regard to the commercial for profit sector, with an allocation of $50,000, an Energy Smart Grocer program has begun, and, aside from a marijuana operation request, which may or may not be able to be incentivised, other inquiries from true commercial business have slowed. In the commercial, not-for-profit sector, with an allocation of $150,000, several projects are pending: Port Townsend Commons, Blue Heron School gymnasium lighting retrofit project, PT Seventh Day Adventist church and free thrift store. Also from this allocation is gifting of LED lights. In the industrial sector, with an allocation of $50,000, Port Townsend Paper Corporation is re-evaluating its initial scope of work. In the Federal sector, with an allocation of at least $50,000 and possibly as much as $100,000, the U.S.Navy at Indian Island continues to revise its lighting project scope of work. BPA's Andrew Miller is expected to address the Board about current status and future expectations. c) Citizen Advisory Board Recommendations Citizen Advisory Board (CAB) President, James Dow, presented additional recommendations from the CAB regarding assistance for low-income customers. These include defining, for now, "low income" as having a threshold of 100 per cent below the Federal Poverty Level (noted in the year 2013 as $11,490 for a single person and $23,550 for a family of four) with a future possibility of redefining low income as having a threshold of 125 per cent of the Federal Poverty Level. Also recommended is that low-income assistance be extended to, as well as senior and disabled, all low-income households. As it likely will be necessary for additional personnel to administer the low-income program, it is also recommended that EES Consulting, conducting a current rate study, factor in the low-income assistance costs in that study. Further recommended is the continuation of the JPUD Power Boost program, with extensive advertising of it and possibly of any conservation programs. d) Snow Creek Water Assessment The Manager presented correspondence to Philip Irvin regarding water system connections in the Snow Creek system. Concerning any additional connection possibility, it will depend on completion of the Department of

9 Ecology assessment of water availability for WRIA 17, which is pending. e) Exempt Personnel Policies The Manager presented information with regard to benefits for exempt employees and Commissioners, addressing the Voluntary Employee Benefits Association (VEBA), cost-of-living adjustments (COLA), insurance premiums and compensatory time for exempt staff and insurance premiums for Commissioners. It was determined that a workshop on personnel issues and policies will be scheduled. f) Strategic Plan The Manager presented information concerning the Strategic Plan of Grays Harbor PUD. His recommendation was to arrange a specific workshop to address creation of a strategic plan for JPUD. g) Purchase of Vehicle GPS system The Manager presented a memo and cost information from one supplier on purchase of Global Positioning System (GPS) equipment for District vehicles. After discussion of needs and any Federal Emergency Management Agency (FEMA) assistance or reimbursement in event of disaster, it was decided that three bids for equipment be sought. h) PUD Support of RC&D The Manager presented correspondence to the Peninsula Development District with regard to in-kind contribution to the North Olympic Peninsula Resource Conservation & Development Council (RC&D), under a proposed 2015 Planning Partnership grant from the Economic Development Administration. Some specific work elements include infrastructure development and improvement in the region; assisting Jefferson County if efforts to secure funding for Irondale/Port Hadlock UGA infrastructure/wastewater facility; identify funding sources for sewer system in Brinnon and Quilcene; assist private companies, tribes and agencies involved in securing the "middle mile" of broadband project; and collaborate with Jefferson County in preparation of comprehensive plans, zoning ordinances and code changes, hazard mitigation plans, GIS mapping systems, etc. that have a direct impact on economic development. After brief discussion it was determined that this issue should be reviewed in January, i) View of PUD Residential Payment The Manager presenting graphing that displayed typical residential monthly billing for April 2012 through October j) PUD Procurement Policy The Manager addressed creating the District's Procurement Manual which establishes procedures and authorities to procure materials, tools,

10 equipment, work and services. Currently, the Manager is using a Clallam PUD Procurement Manual as a resource and will adapt for JPUD and bring to the Board for adoption. MANAGER REPORT The process of transferring Clallam PUD assets for Port Townsend Paper Corporation continues with a wheeling agreement currently in place and meeting with Port Townsend Paper Corporation is scheduled for November 19. Meeting with Public Employees Relation Commission (PERC) is scheduled for December 5. Needing to hire new linemen. Moss Adams LLP is assisting with financial reporting. A $30,000 Department of Health grant application has been submitted for evaluation of the Port Ludlow Water System. NISC will return in December to implement the new accounting system. State auditor is expected at month's end. The Power Boost Program has met the Rotary match for low-income assistance. The Board briefly discussed the Washington Public Utility District Association Resolution 14A supporting a clean energy future that maintains PUDs' exceptionally low carbon footprint, supports local clean energy jobs, provides direct benefits for PUD customer-owners and keeps rates affordable. The Resolution supports amending the Energy Independence Act to provide an additional compliance path that will allow utilities that are long on resources or slow growing to invest 1 per cent of their retail revenue requirement in clean energy programs that help achieve the state's carbon reduction goals, meet the needs of customers for clean, affordable energy and maximize the benefits of Washington State's zero carbon resources. The Board took the following ACTION: MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to support the Washington Public Utility District Association Resolution 14A. Public Comment None CORRESPONDENCE 1. Letter from Washington Public Utility District Association Resolution to Commissioner Ken McMillen inviting membership to its Heritage Life Member program that recognizes individuals who have made exemplary long-term contributions to the interests of public power and water 2. Letter from Stephen L. Chase regarding late billing notice and staff

11 response 3. Letter from Doug Sharp regarding system upgrade and rebate and staff response 4. Letter from Bonneville Power Administration regarding Super Peak Hours for FY 2016 and FY Invoice from Western Electricity Coordinating Council ADJOURNMENT MOTION: By Commissioner Burke, Second by Commissioner McMillen, carried unanimously, to adjourn the Regular Meeting at 6:48 p.m

12 December 9 TH, 2014 VOUCHER CLAIM FORMS FOR BILLS TO BE PAID: WARRANTS AMOUNT DATE Accounts Payable: # to # $ 90, /03/2014 Payroll : # to # $ 78, /21/2014 Payroll : # to # $ 86, /05/2014 TOTAL BILLS TO BE PAID $ 256, VOIDED CHECKS , , WIRE TRANSFERRED AMOUNTS AMOUNT DATE BPA COMBINED POWER & TRANSMISSION $1,005, /08/2014 TOTAL WIRES $1,005, GRAND TOTALS WARRANTS $ 256, WIRES $ 1,005, $ 1,261, PAYROLL $ 165, VENDORS $ 1,096, $ 1,261,855.31

13 PAYROLL APPROVAL PUBLIC UTILITY DISTRICT NO 1 OF JEFFERSON COUNTY 11/21/2014 NUMBER VENDOR NAME AMOUNT VOID VOID VOID VOID VOID VOID KIMBERLY COTTIER-HOLT $ 1, ALYSON DEAN $ 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, ANNA POWERS $ TAMARA RUMPEL $ 1, NATHALIA TANTUM $ 1, MAUREEN WHIPPY $ 1, LISA YOBBAGY-KELLER $ 1, ADAM YORK $ 1, DYLAN BRACKNEY $ 2, CALEB CHAKOS $ 3, JOSHUA DARLING $ 4, DAVID ELIAS $ 1, CASEY FINEDELL $ 3, BRADLEY FLUX $ 3, TOBY HOWARD $ BO LEE $ 2, ROBERT PHILLIPS $ 2, ERIK PRYOR $ 1, DONALD STREETT $ 3, ERIC THARALDSEN $ 5, BRIAN VAN NESS $ 2, GERRITT VANOTTEN $ 1, COLTON WORLEY $ 2, RANDALL CALKINS $ 1, JOSE ESCALERA-ESTRADA $ 1, DOUGLAS REEDER $ 1, JERRY RUBERT $ 1, ERIC STOREY $ 2, BERNARD BURKE $ 1, WAYNE KING $ 1, KENNETH MCMILLEN $ TOTAL PAYROLL $ 78,629.19

14 PAYROLL APPROVAL PUBLIC UTILITY DISTRICT NO 1 OF JEFFERSON COUNTY 12/5/2014 NUMBER VENDOR NAME AMOUNT KIMBERLY COTTIER-HOLT $ 1, ALYSON DEAN $ 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, ANNA POWERS $ TAMARA RUMPEL $ 1, NATHALIA TANTUM $ 1, MAUREEN WHIPPY $ 1, LISA YOBBAGY-KELLER $ 1, ADAM YORK $ 1, DYLAN BRACKNEY $ 3, CALEB CHAKOS $ 6, JOSHUA DARLING $ 3, DAVID ELIAS $ 2, CASEY FINEDELL $ 3, BRADLEY FLUX $ TOBY HOWARD $ 1, BO LEE $ 6, ROBERT PHILLIPS $ 3, ERIK PRYOR $ 1, DONALD STREETT $ 3, ERIC THARALDSEN $ 4, BRIAN VAN NESS $ 3, GERRITT VANOTTEN $ 1, COLTON WORLEY $ 2, RANDALL CALKINS $ 1, JOSE ESCALERA-ESTRADA $ 1, DOUGLAS REEDER $ 1, JERRY RUBERT $ 1, ERIC STOREY $ 2, BERNARD BURKE $ 1, WAYNE KING $ 1, KENNETH MCMILLEN $ TOTAL PAYROLL $ 86,774.96

15 VOUCHER APPROVAL PUBLIC UTILITY DISTRICT NO 1 OF JEFFERSON COUNTY 12/9/2014 NUMBER VENDOR NAME AMOUNT DESCRIPTION WIRE BPA $ 1,005, COMBINED POWER/TRANS OLYCAP $ DEPOSIT REFUND PATTI MORRIS $ DEPOSIT REFUND JEFFERSON COUNTY PUD $ DEPOSIT REFUND RYAN WILMSMEIER $ DEPOSIT REFUND COLE ALTEMOSE $ DEPOSIT REFUND CARL BEEBE $ DEPOSIT REFUND TAMMY/JOHN EILERT $ DEPOSIT REFUND DAVID ELKINS $ DEPOSIT REFUND SALAI FALEOLO $ DEPOSIT REFUND TIMOTHY FRANTZ $ DEPOSIT REFUND CASEY GRIBBLE $ DEPOSIT REFUND NAHTAHSHA JONES $ DEPOSIT REFUND HEATHER KING $ DEPOSIT REFUND AMY/KINNAN MURRAY $ DEPOSIT REFUND LETA LAWHEAD $ DEPOSIT REFUND KELSI OTHOUDT $ DEPOSIT REFUND WANDERING ANGUS $ DEPOSIT REFUND KRISTY WEBSTER $ DEPOSIT REFUND MARGARET WELCH $ DEPOSIT REFUND JOSEPH WILSON $ DEPOSIT REFUND SARAH WINSLOW $ DEPOSIT REFUND EMPLOYMENT SECURITY $ PAYROLL DEDUCTION HRA VEBA TRUST CONTRIBUTIONS $ NOVEMBER CONTRIBUTIONS JEFFCO EFTPS-BANK OF AMERICA $ 30, P/R TAX PENINSULA CREDIT UNION $ 1, EMPLOYEE DEPOSITS WA DEFERRED COMPENSATION $ 1, EMPLOYEE INVESTMENT WA STATE SUPPORT REGISTRY $ CHILD SUPPORT JEFFERSON COUNTY PUD $ DEPOSIT REFUND ALISHA TERRY $ DEPOSIT REFUND STEVE STODDARD $ DEPOSIT REFUND MUSSA ULENGA $ DEPOSIT REFUND ALTEC INDUSTRIES INC $ 3, MISC SUPPLIES BAYVIEW PUMPS INC $ 9, PUMP REPAIRS CENTURY LINK-S $ UTILITY BILLS CENTURYLINK $ UTILITY BILLS EXPRESS SERVICES INC $ 1, TEMP EMPLOYMENT GE CAPITAL $ COPIER RENTALS GOOD TO GO PAY BY MAIL $ 6.50 BRIDGE TOLL IBEW LOCALUNION NO 77 $ DECEMBER UNION DUES INFOSEND, INC $ 6, DATA PROCESSING JEFFERSON COUNTY DCD $ PERMIT LE MAY MOBILE SHREDDING $ UTILITY BILLS NISC $ 3, SOFTWARE SYSTEM NORTH OLYMPIC DATA CENTERS, LLC $ UTILITY BILLS

16 NW LABORERS 252 (DUES) $ DECEMBER UNION DUES PLATT ELECTRIC SUPPLY $ 10, MISC SUPPLIES PROTEK $ 1, COMPUTER SUPPORT RICOH USA, INC $ COPIER IMAGES SHEWMAKER ELECTRONICS $ METER TESTING SPRINGBROOK SOFTWARE, INC. $ 7, UB MAINTENANCE VERIZON WIRELESS, BELLEVUE $ 1, PHONE INVOICE WAVE BROADBAND $ 1, INTERNET EMPLOYMENT SECURITY $ PAYROLL DEDUCTION JEFFCO EFTPS-BANK OF AMERICA $ 33, P/R TAX PENINSULA CREDIT UNION $ 1, EMPLOYEE DEPOSITS WA DEFERRED COMPENSATION $ 1, EMPLOYEE INVESTMENT WA STATE SUPPORT REGISTRY $ CHILD SUPPORT TOTAL PAYABLES $ 1,133,427.57

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28 RESOLUTION NO A RESOLUTION ELECTING THE PRESIDENT, VICE PRESIDENT, AND SECRETARY OF THE BOARD OF DIRECTORS OF NORTHWEST OPEN ACCESS NETWORK RECITALS: 1) The Bylaws of Northwest Open Access Network provide for the election of the President, Vice President, and Secretary of the Board of Directors; and 2) The Bylaws further provide that the President, Vice President, and Secretary of the Board of Directors may be elected for terms of up to three years. NOW, THEREFORE, BE IT RESOLVED as follows: 1) The following persons are elected to the offices appearing opposite their respective names: President of the Board Vice President of the Board Secretary of the Board 2) Each of the foregoing officers shall serve a term of up to three years, but at all times subject to the pleasure of the Board of Directors. Approved and adopted this 10 th day of December, Attest: President of the Board Vice President of the Board [ RES Electing Board Officers Blank.docx] - 1 -

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30 RESOLUTION No A RESOLUTION EXPRESSING THE APPRECIATION OF NORTHWEST OPEN ACCESS NETWORK FOR THE SERVICE OF DAVE SIBURG AS A MEMBER AND PRESIDENT OF THE BOARD OF DIRECTORS RECITALS: 1) The term of Dave Siburg as President of the Board of Directors of NoaNet ends in December 2014, and Mr. Siburg will no longer be a member of the Board of Directors because of his departure from employment with Kitsap PUD; and 2) Dave Siburg has been an important contributor to NoaNet s development and success, and has served as a member of the Board since 2004 and as President of the Board December ; and 3) The Board wishes to express its appreciation for Dave Siburg s service to NoaNet as a member and President of the Board. NOW, THEREFORE, BE IT RESOLVED as follows: 1) The Board of Directors of Northwest Open Access Network hereby expresses its sincere appreciation to Dave Siburg and to Kitsap County PUD for Mr. Siburg s dedicated service, insight, support, and enthusiasm as a guiding force in NoaNet s progress, as a member of the Board of Directors since 2004, and as President of the Board of Directors of NoaNet December Approved and adopted this 10 th day of December, Attest: President of the Board Secretary of the Board [ RES Appreciate DaveSiburg.docx]- 1 -

31 RESOLUTION NO A RESOLUTION EXPRESSING THE APPRECIATION OF NORTHWEST OPEN ACCESS NETWORK FOR THE SERVICE OF LINDA GOTT AS VICE PRESIDENT AND TIM NIES AS SECRETARY OF THE BOARD RECITALS: 1) The terms of Linda Gott as Vice-President of the Board of Directors of NoaNet and Tim Nies as Secretary of the Board of Directors of NoaNet ended in December 2014; and 2) Linda Gott has served as Vice-President of the Board since December 2011; and 3) Tim Nies has served as Secretary of the Board since December 2011; and 4) The Board wishes to express its appreciation for Linda Gott s and Tim Nies service to NoaNet as Vice President and Secretary of the Board, respectively. NOW, THEREFORE, BE IT RESOLVED as follows: 1) The Board of Directors of Northwest Open Access Network hereby expresses its sincere appreciation to Linda Gott and to Mason County PUD No. 3 for Ms. Gott s dedicated service, insight, support, and enthusiasm as Vice President of the Board of Directors of NoaNet. 2) The Board of Directors of Northwest Open Access Network hereby expresses its sincere appreciation to Tim Nies and to Franklin County PUD for Mr. Nies dedicated service, insight, support, and enthusiasm as Secretary of the Board of Directors of NoaNet. Approved and adopted this 10 th day of December Attest: President of the Board Vice President of the Board [ RES Appreciate LindaGott TimNies.docx] - 1 -

32 Residential Energy Efficiency Program Update Jefferson County PUD #1 December 9, 2014

33 Making progress towards kwh savings Heat pumps primary driver of savings

34 1,143,920 kwh saved to date

35 Reaching customers in many ways Bill stuffer Media PT Leader, Peninsula Daily News, radio Customer referrals Educational energy audits Event outreach Presentations Energy workshop Chamber Rotary Website Contractors Ads

36 Targeting low income residents < 125% FPL $50,000 (5 projects) OlyCAP administers Whole home energy efficiency

37 Targeting low income residents < 200% FPL $50,000 (50 projects) Contractors bid directly Duct sealing, insulation, windows

38 Current program offerings Bill inserts, contractor promotion, advertising Qualified contractors Local, affordable labor through Labor Leaders Quality assurance

39 Current program offerings Bill inserts, contractor promotion, advertising What s Qualified contractors Local, affordable labor through Labor Leaders missing? Quality assurance Income validation for households up to 200% FPL

40 An opportunity to serve low income $10-15,000 WSU CEEP funding Goal: Validate at least 50 customers Create partnerships with local banks to validate

41 Questions? Bill Graham (360) Scott Percival (206) Ruth Bell (206)

42 Exhibit A List of Poles Numbers Plant Value $1,679, Plant Value Depreciated Value Depreciated $926, PUD POLE #PUD Pole# Other POLE # CLASS HEIGHT DATE TYPE SWITCH 1170 TO DISCOVERY BAY SWITCHING STATION CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR DISCOVERY BAY SWITCHING STATION TO FAIRMOUNT CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR ?? 1975 CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR CEDAR DISCOVERY BAY SWITCHING STATION TO FOUR CORNERS FBGLS FBGLS FBGLS FBGLS B FBGLS FBGLS Page 1 of 3

43 FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS CEDAR FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS CEDAR CEDAR FBGLS FBGLS FBGLS CEDAR FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS Page 2 of 3

44 FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS FBGLS est CEDAR / est CEDAR / est CEDAR est CEDAR / est CEDAR Page 3 of 3

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46 Board of Commissioners Barney Burke, District 1 Ken Mc Millen, District 2 Wayne G. King, District 3 James G. Parker, Manager MEMO FOR BOC SUBJECT: PTO Roll over 1. The purpose of this memo is to recommend to the PUD BOC that PTO be rolled over for employees that were unable to use it due to system start up. 2. According to our Personnel Manual employee s using PTO must use a minimum of 10 PTO days a year or loose that PTO. Additionally, our only allows for 30 hours of comp time to be accumulated for exempt employees at a time. 3. As a result of the nature of outages and responses several PUD employees have not used any PTO and will lose them in accordance with our policy. 4. I am recommending for this year that the manager be authorized to make an exemption for the specific employees to be allowed to carry over PTO hours. This would only be valid for this year. 5. I am also recommending that we have workshop to review all of the personnel policies, as I briefed at the last meeting there are issues on VEBA; Comp time; medical expenses, COLA. Specifically we need to get our personnel policies all lined up which is difficult with two unions, contracted and exempt staffing. 6. POC this memo is the undersigned. James G. Parker Manager PH (360) FX (360) Four Corners Road, Port Townsend, WA customerservice@jeffpud.org

47 PH (360) FX (360) Four Corners Road, Port Townsend, WA

48 Board of Commissioners Barney Burke, District 1 Ken Mc Millen, District 2 Wayne G. King, District 3 James G. Parker, Manager MEMO FOR BOC SUBJECT: Night Dispatch Center 1. The purpose of this memo is to go over the possible contracting of night/weekend/holiday dispatch services out. 2. Facts. a. PUD did RFP for services earlier but all were too expensive for us to afford. b. Current system requires on call lineman to field calls and then it rolls over to next person on call as traffic goes up. c. Lineman handles all calls to include general CSR questions. d. Water is already contracted out and has been for years e. Joe has just signed an agreement with the City of Ellensburg to handle their on-call/ dispatch duties; already doing for Clallam PUD; City of Sequim; and City of PA 3. Assumptions. a. Service would take pressure off Lineman to respond to all calls (service would screen) b. Service would take pressure off Lineman (Would not have to answer calls coming in after dispatched) c. Service would take pressure off of Dispatch Team, would not be involved in all calls that rotate the phone system. d. Service would provide immediate phone service for outages customer service e. Service would use our outage management system f. Service would not necessarily lower expenses, would save some time on call-outs that may have been not needed. Might be able to use meter reader to reconnect versus lineman. g. With limited number of lineman, service would spread resources 4. Discussion. a. We elected to go without a dispatch/call center for our night/weekend/holiday dispatching. This was done because of cost. The system has worked okay, however, it seems that our response time to the public is sometimes delayed, it also puts more pressure on the Lineman to take calls and respond to public requests. Northwest Security has just added another client (city of Ellensburg) and could provide us service for less than originally priced. With our turn over in lineman, our inability for employees to use PTO and comp time, and for better public relationship it might be time to consider the transfer of the dispatching duties. b. Of course this is a cost that was not projected and will have to be added to budget considerations. PH (360) FX (360) Four Corners Road, Port Townsend, WA customerservice@jeffpud.org

49 5. I have not seen their proposal yet, so I can not make any recommendations. Hopefully we will have it by the time of the next board meeting. James G. Parker Manager PH (360) FX (360) Four Corners Road, Port Townsend, WA customerservice@jeffpud.org

50 P.O. Box 660 Port Townsend WA December 7, 2014 Mr. Kevin Streett Public Utility District No. 1 of Jefferson County P.O. Box 929 Port Hadlock, WA Re: Afterhours Telephone Answering & Dispatching Services Dear Mr. Streett, Please find attached bid proposal for afterhours answering and dispatching services for Public Utility District No.1. SSNW will answer telephones Monday Friday from and 24x7 on weekends and holidays. Our fee also includes accepting overflow calls during business hours. Afterhours dispatching $3, per month. Five year agreement with 3% annual increase. SSNW will provide daily outage report. SSNW will provide forwarding number and equipment. SSNW can commence service immediately. Terms net 30 days. Please call me, if you have any questions. Respectfully, Joseph N. D Amico, President Security Services NW

51 draft WHEELING AGREEMENT Between Port Townsend Paper Corporation And Public Utility District No. 1 of Jefferson County This Wheeling Agreement, dated December, 2014 (Effective Date), is entered into by and between Port Townsend Paper Corporation, a Washington corporation (PT Paper) and Public Utility District No. 1 of Jefferson County, a Washington municipal corporation (JPUD), in order to set forth the terms and conditions under which JPUD shall provide transmission capacity and wheeling services to the PT Paper (Agreement). PT Paper and JPUD may individually be referred to as Party or jointly as Parties. RECITALS A. PT Paper receives electric service from both JPUD and the Bonneville Power Administration (BPA); B. JPUD currently provides electric service to PT Paper through JPUD-owned facilities under a special contract and BPA delivers a portion of PT Paper s electric power supply to the Fairmount Substation; C. PT Paper currently receives wheeling services from Public Utility District No. 1 of Clallam County (CPUD) under a Wheeling Agreement dated February 1, 2008, designated as Agreement Number to access the power supplies it purchases from BPA (CPUD Agreement); D. PT Paper owns electric transmission facilities and requires wheeling services from BPA s delivery point at Fairmount Substation to PT Paper s facilities; E. The CPUD Agreement sets forth the terms and conditions under which PT Paper currently accesses CPUD s transmission facilities so PT Paper can obtain power supplies delivered by BPA; F. PT Paper, CPUD, and JPUD (assigned by Puget Sound Energy) are parties to the Port Townsend Area Transmission Agreement dated January 7, 2002 (Area Transmission Agreement); G. On April 28, 2014, JPUD and CPUD entered into an Agreement for System Backup Capacity, Interim Operations and Maintenance, and Facilities Transfer (Interim Agreement) that memorializes the intent of JPUD and CPUD to enter 1 WHEELING AGREEMENT ( PT Paper and JPUD)

52 into a purchase and sale agreement by which CPUD will transfer certain transmission-related facilities to JPUD that currently provide the transmission access for PT Paper under the CPUD Agreement; H. The Interim Agreement also provides that upon the transfer of CPUD s facilities to JPUD, the obligations of CPUD to PT Paper under the Wheeling Agreement No , dated February 1, 2008 (CPUD Wheeling Agreement), will be assigned to JPUD; I. After the transfer of transmission-related facilities provided for in the Interim Agreement, JPUD will own and operate the transmission line extending from the Fairmount Substation to PT Paper s facilities; J. PT Paper will continue to need to have transmission access from the Fairmount Substation where BPA delivers its power (Receipt Point) to PT Paper s facilities that are located in the proximity of JPUD s Irondale Substation (Delivery Point). See Exhibit 1 for a one-line drawing showing location of Receipt Point, JPUD facilities, and Delivery Point); K. This Agreement will supersede the CPUD Agreement and set forth the terms and conditions under which PT Paper will be able to: access its power supplies delivered by BPA to the Fairmount Substation; have access to JPUD s transmission facilities to obtain and facilitate delivery of PT Paper s power to PT Paper facilities; and describe JPUD s responsibilities to operate and maintain PT Paper s facilities and electric transmission lines between Four Corners Substation and the PT Paper s mill at Port Townsend. The Parties agree as follows: AGREEMENT 1.0 Purpose of Agreement. The purpose of this Agreement is to set forth the terms and conditions under which PT Paper will be able to: access its power supplies delivered by BPA to the Fairmount Substation; have access to JPUD s transmission facilities to obtain and facilitate delivery of PT Paper s power to its facilities; and describe JPUD s responsibilities to operate and maintain the PT Paper s facilities and electric transmission lines between Four Corners Substation and the PT Paper s mill at Port Townsend. 2.0 Term of Agreement. This Agreement shall become effective once the Conditions Precedent set forth in Section 3.0 have been deemed satisfied by JPUD and then continue for a period of five (5) years thereafter unless terminated earlier in accordance with the provisions in Section 14.0 of this Agreement. 3.0 Conditions Precedent. The consummation of this transaction and JPUD s assumption of the duties and obligations contemplated by this Agreement shall 2 WHEELING AGREEMENT ( PT Paper and JPUD)

53 be subject to JPUD determining, in its sole discretion, that each of the following conditions have been satisfied. 3.1 CPUD Agreement. Termination of the CPUD Agreement; and, 3.2 Area Transmission Agreement. Termination of the Area Transmission Agreement. 4.0 Reservation of Transmission Capacity. JPUD shall reserve transmission capacity for PT Paper on JPUD s transmission system between Fairmount Substation and the PT Paper s facilities in an amount not to exceed thirty (30) peak megawatts of capacity (PT Paper Capacity). 4.1 Initial Limitations on Use of Transmission. PT Paper Capacity is initially limited exclusively to the transfer of power supplies delivered by BPA to JPUD s electric system for delivery to the PT Paper. 4.2 Optional Use of Transmission. PT Paper Capacity under this Agreement may be utilized to access any of JPUD s transmission facilities for the transfer of power generated by PT Paper-owned generation facilities for delivery off JPUD s electric system so long as PT Paper pays for all reasonable costs incurred by JPUD in its discretion to accommodate such transfer of power, including but not limited to costs for equipment, facilities, and personnel needed by JPUD to meets its legal and regulatory obligations mandated by the North American Electric Reliability Corporation (NERC), Western Electricity Coordinating Council (WECC) and the Federal Energy Regulatory Commission (FERC). 4.3 Scheduling. PT Paper shall abide by any requirements for scheduling of power on JPUD s system. 5.0 Maintenance of PT Paper Facilities. JPUD will perform all maintenance activities and procure all necessary materials for maintaining and operating PT Paper s transmission facilities between the Delivery Point and PT Paper s mill at Port Townsend using utility practices similar to those JPUD uses on its utility system and Good Utility Practices. 5.1 Rates and Charges. PT Paper shall pay the applicable rates and charges for the maintenance of PT Paper facilities as such charges are included in the New Rates and Charges provided for in Section 6. With respect to PT Paper s facilities (located from the Delivery Point to PT Paper s mill), JPUD will only be responsible for providing materials and incurring expenses that would normally be part of JPUD s operations and maintenance of transmission facilities. With respect to PT Paper s 3 WHEELING AGREEMENT ( PT Paper and JPUD)

54 facilities, JPUD shall have no obligation and shall not be responsible for procuring or installing any item which it deems, in its reasonable judgment, to be a capital expense item. 5.2 Scheduled Outages. Except for emergencies, JPUD shall use its best efforts to not remove the lines involved in serving PT Paper from service without first notifying PT Paper. JPUD shall schedule removals of the lines involved in serving PT Paper from service in such a manner that the scheduled outages are to the mutual convenience of both Parties insofar as practicable. 6.0 Charges for Use of Transmission Capacity. Until the results of the current costof-service work are reviewed, approved for use, and the transmission rates that would be applicable to the transmission services contemplated by this Agreement are adopted by the JPUD Board, PT Paper shall pay to JPUD a monthly fee in the amount of $3, for the reservation of transmission capacity (Monthly Fee). The Monthly Fee is a pro rata continuation of the annual charge of $41, that PT Paper paid to CPUD under the CPUD Wheeling Agreement. The Parties recognize that the derivation and amount of the Monthly Fee may change as part of the cost-of-service work presently being undertaken by JPUD. 6.1 Cost-Based Rates. The rates for the transmission-related services to be provided under this Agreement that are developed as part of the cost-ofservice work shall be cost-based (i.e., based on the costs to JPUD of administering and providing such services and taking into account historical and projected costs). 6.2 Schedule of Deposits and Charges. Following the approval by the JPUD Board referenced in Section 6.3 of this Agreement, the rates and charges for the transmission-related services to be provided under this Agreement shall be published as part of the JPUD s Electric Service Regulations and Schedule of Deposits and Charges (New Rates and Charges). The New Rates and Charges shall supersede the Monthly Fee set forth in Section 6.0 of this Agreement and the New Rates and Charges shall be incorporated and made part of this Agreement from that point forward. For the avoidance of doubt, after the New Rates and Charges are made part of this Agreement, PT Paper shall have no further obligation to pay the Monthly Amount. 6.3 Board Approval. The establishment of the New Rates and Charges and any future changes to the New Rates and Charges must be approved by the JPUD Board. JPUD shall provide PT Paper notice of the date and time of any meeting of the JPUD Board where the subject of the New Rates and Charges will be on the agenda. 4 WHEELING AGREEMENT ( PT Paper and JPUD)

55 7.0 Rates and Charges. JPUD may take into account work contained in JPUD s 4- Year Work Plan in its formulation of the Monthly Fee and/or New Rates and Charges to be charged for services provided under this Agreement. 8.0 Metering. PT Paper shall maintain commercially accurate watt-hour and demand meters at its mill in Port Townsend in accordance with the contract between BPA and PT Paper. 9.0 Access to PT Paper Facilities. PT Paper hereby grants JPUD access to all facilities owned by PT Paper as may be necessary for JPUD to perform its obligations under this Agreement. Except for emergencies, JPUD shall provide reasonable notice of its need for such access will PT Paper shall provide such access during normal work hours. Any non-emergency work performed at PT Paper s mill site will require compliance with normal mill safety procedures, including restricted site access without a mill escort Duty of Care. JPUD shall exercise reasonable diligence consistent with Good Utility Practices in the operation and maintenance of JPUD s electric transmission facilities between the BPA Fairmount Substation and the Delivery Point and the operation and maintenance of the PT Paper s electric transmission lines between the Delivery Point and PT Paper s mill at Port Townsend. For purposes of this Agreement, Good Utility Practices means any of the practices, methods, and acts engaged in or approved by a significant portion of the electric utility industry during the term, or, if there are no such practices, methods, and acts with respect to any specific conditions or circumstances, any of the practices, methods and acts which, in the exercise of reasonable judgment in light of the facts known at the time the decision was made, could have been expected to accomplish the desired result at a reasonable cost consistent with good business practices, reliability, safety and expedition. Good Utility Practice is not intended to be limited to the optimum practice, method, or act, to the exclusion of all others, but rather to be acceptable practices, methods, or acts generally accepted in the Pacific Northwest NERC/WECC Oversight. JPUD has received a Notice of Deactivation on the NERC Compliance Registry (NCR) dated June 19, 2014, from the NERC. JPUD and PT Paper are aware that there is a potential for the transfer of facilities and the provision of services under this Agreement to cause NERC, WECC, and/or FERC to impose additional regulatory requirements and reporting obligations that, if implemented, will significantly increase JPUD s cost to provide the services hereunder. The Parties intend to take all precautions to minimize the chance that NERC, WECC, and/or FERC will institute greater oversight on JPUD s transmission-related activities. However, in the event that NERC, WECC, and/or FERC indicate that the regulatory requirements on JPUD s transmissionrelated activities will change from the current regulatory requirements in such a manner that will significantly increase the cost to JPUD to provide the services 5 WHEELING AGREEMENT ( PT Paper and JPUD)

56 contemplated under this Agreement to PT Paper, JPUD will have the right to immediately cease all services and cancel this Agreement unless PT Paper indemnifies JPUD for all costs associated with the NERC, WECC, and/or FERC changes Third Party Claims. To the fullest extent permitted by law, each Party agrees to save, defend, and hold harmless the pother Party from and against third-party claims for damages to property and damages for personal injury, including death, arising out of the negligence of its employees, officers, and agents Assignment. All of terms and conditions of this Agreement shall be binding on and inure to the benefit of, and be enforceable by, the successors and assigns of the Parties hereto; provided however, that no assignment or transfer of the Agreement shall be made in whole or part by either Party without the prior written consent of the other Party, which consent shall not be unreasonably withheld. Any attempt at assignment in contravention of the provisions in this Section shall be void Default, Cancellation of Agreement, Attorney Fees. Failure of PT Paper to make payments to JPUD or provide JPUD with access to PT Paper s facilities pursuant to Section 9.0 may be considered a default of this Agreement if such failure is not cured within three (3) days after written notice of such failure is provided to PT Paper by JPUD. JPUD may thereafter cancel the Agreement and interrupt electrical service across JPUD s facilities after providing PT Paper with written notice of its intention to cancel the Agreement and interrupt service under this Agreement thirty (30) days prior to the actual date of cancellation. In the event it is necessary for either Party to utilize the services of an attorney to enforce any of the terms or conditions of this Agreement and such enforcing Party prevails, it shall be entitled to reimbursement of its reasonable attorney s fees and costs, including any proceeding under any chapter of the United States Bankruptcy Code. In the event of litigation regarding any terms or conditions of this Agreement, the substantially prevailing Party shall be entitled, in addition to other relief, to such actual attorney s fees and costs as demonstrated by the prevailing Party to the court. Venue for any such actions shall be exclusively in Jefferson County, Washington Termination. Either Party may terminate this Agreement by providing the other Party written notice of termination no later than twelve (12) months prior to the effective date of such termination. All liabilities incurred during the term of this Agreement shall be preserved until satisfied or until that Party is released from further liability hereunder Disputes. Any dispute arising out or relating to this Agreement shall be first addressed by the Parties authorized representatives. If they cannot resolve the dispute within ten (10) days after notice of the dispute, then it shall be referred to the senior management of the two Parties, which shall make a good faith effort to 6 WHEELING AGREEMENT ( PT Paper and JPUD)

57 mediate and resolve the dispute within an additional twenty (20) days or such other period of time as they agree in a writing signed by both Parties. If the matter cannot be resolved by senior management, it shall be submitted to binding arbitration in Jefferson County, Washington. Any dispute arising out of or related to this Agreement including the breach, termination, or validity thereof, which has not been resolved by mediation as provided herein with forty-five (45) days after initiation of the mediation procedure, shall be finally resolved by arbitration in accordance with International Institute for Conflict Prevention & Resolution Rules for Non-Administered Arbitration currently in effect, by a sole arbitrator; provided however, that if one Party fails to participate in either the negotiation or mediation as set forth herein, the other Party can commence arbitration prior to the expiration of the aforementioned time periods. The arbitration shall be governed by the Federal Arbitration Act 9 U.S.C. 1, et. Seq., and the judgment upon the award rendered by the arbitrator may be entered by any court having jurisdiction. The location of all arbitration activities shall be Jefferson County, Washington. The arbitrator shall apply Washington law, without regard to conflict of law principles. Both Parties agree that the procedures outlined in this paragraph are the exclusive methods of dispute resolution. The Parties shall share equally the cost of the arbitration, and shall bear their own attorney s fees relating to arbitration Notices. Any and all notices under this Agreement shall be made in writing and may be given by personal delivery, delivered by a nationally recognized express courier service, transmitted by facsimile or electronically with appropriate confirmation record and the original being forwarded by first class US Mail or delivered by registered or certified U.S. Mail to the Parties at the following addresses (or other such addresses for a Party as has been specified by a prior notice given pursuant to the terms here PT PAPER: Port Townsend Paper PT Paper Attn: Roger Hagan 100 Mill Road Port Townsend, WA Telephone: 360-XXX-XXXX Facsimile: 360 XXX-XXXX JPUD: PUD No. 1 of Jefferson County Attn: James P. Parker, General Manager 310 Four Corners Road Port Townsend, WA Telephone: Facsimile: Jparker@jeffpud.org 7 WHEELING AGREEMENT ( PT Paper and JPUD)

58 If any notice is given solely by US Mail, it will be deemed effective upon the earlier of: (a) seventy-two (72) hours after deposit in the US Mail addressed to the appropriate address with postage prepaid, or (b) actual delivery or refusal to accept delivery, as indicated by the return receipt; and if given by personal delivery or overnight air courier, when delivered. IN WITNESS WHEREOF, the Parties have signed this Agreement effective as of the Effective Date. PORT TOWNSEND PAPER CORPORATION By: Name: Title: Roger P. Hagen President PUBLIC UTILITY DISTRICT NO. 1 OF JEFFERSON COUNTY By: Name: James P. Parker Title: General Manager 8 WHEELING AGREEMENT ( PT Paper and JPUD)

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60 David R. Siburg President of the Board Linda Gott Vice-President of the Board Tim Nies Secretary of the Board Greg L. Marney Chief Executive Officer Dave. Spencer Chief Operating Officer / Treasurer Rob Kopp Chief Technical Officer Mike Henson Chief Security Officer Paul Harding Controller Chris Walker Telecom & OSP Dir Angela Bennink Community Outreach Dir Rich Nall NCS & OFT Dir John Smith Engineering & PM Dir John Fryling Operations & Field Engr Dir Craig Nelsen Sales & Marketing Dir Duane Ball Bus Sys & Process Dir NoaNet 2015 Board of Directors Calendar Regular Monthly Board of Directors Meetings - 9:00 AM Embassy Suites Sea-Tac Airport West Valley Highway Seattle, Washington Second Wednesday of each month: January 14, 2015 February 11, 2015 (Network Operations Center, 422 W Riverside, Suite 408 Spokane WA) March 11, 2015 April 8, 2015 May 13, 2015 June 10, 2015 July 8, 2015 August 12, 2015 September 9, 2015 October 14, 2015 November 11, 2015 December 9, 2015 Member Annual Meeting: December 9, 2015 (prior to Board meeting) Northwest Open Access Network (NoaNet); 5802 Overlook Ave NE; Tacoma, WA Phone: (206) ; Mobile: (509) ; gmarney@noanet.net;

61 Northwest Open Access Network Meeting of the Board of Directors December 10, 2014, 9:05 AM PST Embassy Suites Sea-Tac Airport West Valley Highway Seattle, Washington AGENDA 1. Introductory remarks 2. Election of NoaNet Board of Directors Officers 3. Resolution 0139 Electing Board Officers 4. Resolution 0140 Appreciation to Dave Siburg 5. Resolution 0141 Appreciation to Linda Gott and Tim Nies 6. Approval of Minutes of November 12, 2014 Meeting of the Board of Directors 7. Approval of Payments for October, Review Financial Reports for October, Approve Resolution Telecommunication Network Budget 10. Approve Resolution HCN Budget 11. Approve Resolution 0144 Approve Bank Note not to exceed $13M 12. Members Report from Mason PUD # Operations and Marketing Report 14. Other items for discussion 2015 Board Meeting Calendar 15. Next Meeting January 14, 2015, 9 AM PST, Embassy Suites Sea-Tac Airport, West Valley Highway, Seattle, Washington 16. Executive Session to discuss personnel, property or legal issues. Join via Teleconference: or Meeting ID: # Note: If no one joins the meeting via teleconference by 9:15 AM the teleconference bridge may be closed.

62 RESOLUTION 14 A DATE NOVEMBER 21, 2014 A RESOLUTION OF THE WASHINGTON PUBLIC UTILITY DISTRICTS ASSOCIATION IN SUPPORT OF MODIFICATION OF THE ENERGY INDEPENDENCE ACT TO SUPPORT CLEAN ENERGY PROGRAMS WHEREAS The Washington Public Utility Districts Association (WPUDA) supports a clean energy future that maintains PUDs exceptionally low carbon footprint, supports local clean energy jobs, provides direct benefits for PUD customer owners, and keeps rates affordable; And WHEREAS, Public Utility Districts with 25,000 or more customers are required under the Energy Independence Act (EIA) to meet mandates for investment in eligible renewable resources as well as all cost effective conservation, with non compliance resulting in a fine of $50 per megawatt hour (2007 dollars); And WHEREAS, The EIA is based on load growth assumptions that have NOT materialized, increasing utility costs, putting upward pressure on rates, and creating a surplus of electricity as utilities across Washington invest in renewable resources, in some cases only to meet compliance requirements; And WHEREAS, the projected over investment by utilities in the state for unused renewable resources may reach an estimated $3.5 to $4.5 billion when the renewable mandate increases in 2020; And WHEREAS, the Washington Public Utility Districts Association recognizes the value of adding an additional compliance path to the EIA that would allow utilities that have enough resources to meet projected customer needs to invest 1% of their revenue requirement in any combination of clean energy programs including: energy conservation and efficiency, rooftop solar, development of electric vehicle charging stations, and development of energy storage, And WHEREAS, this policy supports the foundational principles of the Energy Independence Act while providing a compliance option that could: o Address existing and future over supply problems by giving utilities flexibility to make useful investments that meet the needs of the communities they serve; o Provide recognition for investments in utility based programs that will make installation of rooftop solar more affordable for customers and keep renewable energy investments and jobs in local communities; o Provide recognition of utility investments in energy storage, creating a means for electricity produced by clean, renewable intermittent resources (such as wind and solar) to be stored and used when needed, allowing for less reliance on greenhouse gas producing fossil fuel generation; o Allow for greater renewable energy and conservation investments in local communities which supports local jobs such as contractors and suppliers and maximizes existing clean resources by using electricity more efficiently, and helps lower customers energy usage; o Provide incentive for utilities to invest in development of electric vehicle charging stations which will assist in reducing greenhouse gas emissions from the transportation sector (the highest emitter of greenhouse gases in Washington State) by replacing fossil fuel with electricity from PUD s zero carbon generation resources. NOW, THEREFORE, BE IT RESOLVED that: The Washington Public Utility Districts Association hereby supports amending the Energy Independence Act to provide an additional compliance path that will

63 allow utilities that are long on resources or slow growing to invest 1% of their retail revenue requirement in clean energy programs that help achieve the state s carbon reduction goals, meet the needs of customers for clean, affordable energy and maximize the benefits of Washington State s zero carbon resources. APPROVED AND ADOPTED by the Board of Directors of the Washington Public Utility Districts Association, this 21 st day of November 2014, Olympia, WA.

64 Washington PUD Association 2015 Dues Calculation Board Approved 11/21/ Increase/Decrease Category Amount % Amount % Amount % Dues - Affiliate Member 12, % 12, % 0 0.0% Dues - Member* 1,838, % 1,938, % (99,857) -5.2% Member Services/Other Income 185, % 188, % (3,208) -1.7% Total Income 2,035, % 2,138, % (103,065) -4.8% *Dues Detail Asotin 16, % 18, % (1,218) -6.7% Benton 139, % 152, % (12,344) -8.1% Chelan 136, % 146, % (10,014) -6.8% Clallam 98, % 106, % (8,658) -8.1% Clark 139, % 152, % (12,344) -8.1% Cowlitz 139, % 152, % (12,344) -8.1% Douglas 43, % 46, % (2,624) -5.6% Ferry 11, % 13, % (2,025) -14.9% Franklin 104, % 107, % (3,101) -2.9% Grant 139, % 152, % (12,344) -8.1% Grays Harbor 133, % 152, % (18,513) -12.2% Jefferson 65, % 8, % 56, % Kitsap 27, % 26, % % Kittitas 14, % 16, % (1,883) -11.7% Klickitat 44, % 45, % (1,088) -2.4% Lewis 96, % 106, % (9,881) -9.3% Mason No. 1 18, % 18, % (386) -2.0% Mason No. 3 97, % 109, % (12,196) -11.2% Okanogan 70, % 72, % (2,783) -3.8% Pacific 46, % 56, % (9,860) -17.5% Pend Oreille 50, % 57, % (6,901) -12.0% Skagit 52, % 62, % (9,884) -15.9% Skamania 20, % 20, % % Stevens 10, % 12, % (2,059) -16.2% Thurston 7, % 8, % (673) -8.0% Wahkiakum 7, % 7, % % Whatcom 14, % 13, % % Sub Total Operating Districts 1,748, % 1,843, % (95,116) -5.2% Energy Northwest 90,093 94,835 (4,742) -5.0% *Total Membership Dues 1,838,288 1,938,145 11/25/2014 3:17 PM

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66 Memorandum To: From: PPC Executive Committee Members and Alternates PPC Members Kevin O Meara Date: December 4, 2014 Re: BPA Rates: BP-16 Federal Register Notice Summary BPA s proposal for the BP-16 rate case was published in the Federal Register today; this formally inaugurates BPA s rate case process for changing both power and transmission rates. Under BPA s proposal, BPA s power rates are forecast to go up 6.7% on average for Tier 1 requirements service. BPA transmission rates are forecast to go up 5.6% on average. (The actual rate increases paid by an individual utility can vary considerably from the average, based on how a utility takes power from BPA.) Purpose Of The Federal Register Notice As required by the Regional Act, BPA publishes a notice in the Federal Register to announce its intent to revise its rates and commence the formal evidentiary hearing process for doing so. A key function of the Federal Register notice is to provide a summary of BPA s initial proposal and indicate the permissible scope of the rate case. For example, BPA went through an earlier Integrated Program Review process to set its costs for the next rate period, and as a result, the rate case will exclude testimony regarding BPA costs. Likewise, testimony regarding environmental impacts, average system costs, and a variety of other topics are also excluded from the rate case. This is important because in deciding the final rates, the BPA Administrator will consider only the evidence contained in the official record of the rate case. The Federal Register notice also initiates an ex-parte period, where BPA staff is prohibited from discussing substantive rate case matters outside of publiclynoticed rate case meetings that are accessible to all parties in the rate case. This is required so that all interested parties may participate in the case equally. Ex parte restrictions will remain in effect until the Administrator signs the final record of decision concluding the rate case. Page 1 of 2

67 Next Steps On December 5 th, BPA will discuss the rate case schedule with likely parties in the case, which will lay out significant rate case deadlines, including for submission of evidence and legal briefs, cross-examination of witnesses, and publication of BPA s draft decisions. The rate case will culminate in the publication of BPA s final Record of Decision late next July, to set rates which will go into effect next October 1 st. BPA is expected to release the testimony and studies supporting its initial proposal on December 10 th. Utilities and other organizations wishing to become parties to the rate case have to file petitions to intervene by December 12 th. (A utility or other organization also has the option of being a participant, which allows comment on rate case issues without assuming the duties of a party in the rate case.) PPC staff will be doing an intensive analysis of BPA s proposal once BPA s testimony and studies are made available on December 10 th. Page 2 of 2

68 December 2014 DOH 331-xxx Drinking Water State Revolving Fund Jefferson County Public Utility District #1 Water system consolidation and water treatment projects Jefferson County Public Utility District #1 (PUD) is using Drinking Water State Revolving Fund loans to consolidate several small systems into the larger Quimper regional water system. The consolidation helped two smaller systems that were facing overwhelmingly expensive regulatory requirements, and it makes for efficiencies in water management, operations and usage. It also provides the regional Quimper water system with multiple water sources for better system hydraulics and water resource management. The Office of Drinking Water has an ongoing program to identify candidates for consolidation with larger water systems because small water systems tend to have more capacity problems than larger ones. Sparling Well and treatment plant Drinking Water State Revolving Fund (DWSRF) Loans in 2010 and 2013 totaling about $2.4 million enabled the utility district to drill the Sparling Well and a construct a new water treatment plant. This allowed the PUD s Local Utility District #3 to switch from unfiltered surface water to well water. Port Townsend had been providing the district with untreated river water. Because the watershed that drains into the rivers is not tightly controlled, Port Townsend and Local Utility District #3 are required to treat the water to remove parasites, such as Cryptosporidium. Port Townsend has chosen to build a water filtration plant. The Local Utility District, by switching to well water, avoided that expense. The bulk of the work on the treatment plant and well was accomplished with a $1.6 million DWSRF loan granted in The PUD received another $843,350 loan in 2013 to finish the project because a Public Works Trust Fund loan that would have covered the rest of the cost fell through. Sparling Well and Treatment Plant DWSRF loan $1.6 million (2010) DWSRF loan $843,350 (2013) Balance of Jefferson County Public $240,000 Infrastructure Fund PUD rates, system development $140,000 charges, reserve funds Partnerships for safe, reliable drinking water

69 Kala Point acquisition In 2012, the Jefferson PUD received a $1,089,000 loan DWSRF loan to acquire and upgrade the privately-owned Kala Point water system, and consolidate Kala Point and the PUD s Local Utility District #3 water system into the larger Quimper water system. The project required laying pipes to inter-tie the water systems, installing service meters, source meters and control valve stations, replacing Kala Point s treatment system with an energyefficient iron and manganese removal system. When all of the work is completed, Kala Point and Local Utility District #3 will cease to exist as legal entities. Kala Point Acquisition and upgrade DWSRF loan $1,089,000 PUD rates and charges $700,000 PUD in-kind effort $70,000 PUD reserves $330,000 Want to learn more? More DWSRF success stories are available online at For people with disabilities, this document is available on request in other formats. To submit a request, please call (TDD/TTY call 711).

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