METROPOLITAN UTILITIES DISTRICT Committee Meetings

Transcription

1 METROPOLITAN UTILITIES DISTRICT Committee Meetings 8:15 a.m. October 4, 2017 AGENDA 1. Roll Call 2. Open Meetings Act Notice Construction and Operations - Friend, Frost, Cavanaugh 1. Capital Expenditures [Ron Reisner, SVP & Chief Operations Officer] - Tab 5 2. Acceptance of Contracts and Payment of Final Estimates [Ron Reisner, SVP & Chief Operations Officer] - Tab 6 3. Bids on Materials and Contracts [Jon Zellars Director, Purchasing] Tab 7 Services and Extensions - Howard, Frost, McGowan 1. Main Extensions [Ron Reisner, SVP & Chief Operations Officer] - Tab 8 Personnel - Friend, Howard, Cavanaugh 1. Promotional Increases and Ratifications [Pat Tripp, VP - Human Resources] - Tab 9 Judiciary and Legislative - Dowd, Friend, Howard 1. Interlocal Agreement with the City of LaVista [Ron Bucher, SVP & General Counsel] - Tab 10 Accounts, Expenditures, Finance and Rates McGowan, Dowd, Frost Budget Discussion Personnel, Memberships & Travel [Joe Schaffart, VP Accounting] - Tab 13

2 METROPOLITAN UTILITIES DISTRICT Regular Meeting 9:00 a.m. October 4, 2017 AGENDA CONSTRUCTION & OPERATIONS Roll Call Open Meetings Act Notice Pledge of Allegiance Approval of Minutes - Committee and Regular Board Meetings, September 6, 2017 Capital Expenditures Acceptance of Contract and Payment of Final Estimates Bids on Materials and Contracts SERVICES & EXTENSIONS PERSONNEL JUDICIARY & LEGISLATIVE 8. Main Extensions 9. Promotional Increases and Ratifications 10. Interlocal Agreement with the City of LaVista BOARD Other Matters of District Business for Discussion CLOSED SESSION Collective Bargaining and Real Estate Matters

3 METROPOLITAN UTILITIES DISTRICT Minutes of Committee Meetings September 6, 2017 Roll Call Chairman Begley called the Committee Meetings to order at 8: 15 a.m. On a roll call vote, the following members were present: Dave Friend Jack Frost Mike McGowan Gwen Howard Jim Begley Tom Dowd Scott Keep, Secretary and President Also present were various members of the staff, representatives from IBEW #1521, and other members of the public. Mr. Cavanaugh was absent. Open Meetings Act Notice Chairman Begley advised those in attendance that a copy of the Open Meetings Act was posted in the rear of the Board Room. Chairman Begley reminded those in attendance that the Committee Meetings were being livestreamed. Construction and Operations - Friend. Frost. Cavanaugh Mr. Reisner reviewed the proposed capital expenditures, as outlined in his letter to the Committee dated August 24, Mr. Reisner reviewed his letter to the Committee dated August 24, 2017 regarding the acceptance of contracts and payment of final estimates. Mr. Zellars reviewed the bids on materials and contracts as outlined in his letter to the Committee dated August 25, Services and Extensions - Howard. Frost. McGowan Mr. Reisner reviewed his letter to the Committee dated August 24, 2017 regarding proposed main extensions. Committee Meetings & Regular Board Meeting September 6, 2017 Page 1of8

4 Mr. Reisner reviewed Stephanie Henn's (Director of Plant Engineering) letter to the Committee dated August 29, 2017, regarding the proposed water main installation work, capital expenditure request and bid associated with the West Farm development at 144th Street and West Dodge Road. Personnel - Friend. Howard. Cavanaugh Mr. Tripp reviewed his letter to the Committee dated August 28, 2017, regarding District employee promotions and new hire ratifications. Mr. Tripp reviewed the group insurance renewals as outlined in his letter to the Committee dated August 28, The relevant group insurance contracts being recommended for renewal included PPO Health, HMO health, dental, flexible spending accounts, basic life insurance, supplemental (voluntary) life insurance, accidental death & dismemberment (AD&D) and long-term disability (LTD). Judiciary and Legislative - Dowd. Friend. Howard Mr. Bucher reviewed his letter to the Committee dated August 29, 2017, regarding proposed District boundary changes. Though these areas are currently served by the District, the expansion will enable the additional residential customers to vote in future MUD Board elections. Mr. Bucher reviewed the District's proposed land purchase near the Florence Water Treatment Plant, as outlined in his letter to the Committee dated August 29, The properties will provide an enhanced security and safety buffer between public property and the District's chlorine and ammonia facilities, and will also provide construction staging for future District renovations at the Florence plant. Insurance and Pensions - McGowan. Howard. Frost Mr. Schaffart discussed the updated Four Year Experience Study and some of the recommended changes to the economic and demographic assumptions that are used to calculate the District's annual required contribution (ARC) to the District's Retirement Plan. Pat Beckham, Principal and Consulting Actuary for Cavanaugh Macdonald, then presented more detail and a summary of the findings and recommended changes. As outlined in Ms. Schneider's letter to the Committee dated August 25, 2017, the review resulted in changes to the Retirement Plan ARC and funded ratio. The ARC increased to $11.4 million and the funded ratio decreased slightly to 85.6%. Management also asked the Board to increase Retirement Plan funding by $800,000 for 2017, which will have no impact on customer rates. Security and Safety - Cavanaugh. Dowd. Friend Mr. Ausdemore presented the Continuity Management Project, outlining the District's comprehensive strategy for preserving and protecting critical infrastructure and key resources from natural and man-made hazards and risks. Eric Plautz, the District's Emergency Planner and Continuity Manager, presented additional perspectives, Committee Meetings & Regular Board Meeting September 6, 2017 Page 2 of 8

5 including the necessity for ongoing planning, training and modification. These efforts will further the District's mission by maximizing the District's preparedness, adaptiveness and resilience in the event a situation occurs with the potential to disrupt District operations. Chairman Begley asked whether any Board Members or members of the audience had any further comments they would like to offer. There were none. The Committee meetings concluded at 9:34 a.m. :idf 7<-' 'ft;~ Scott L. Keep, Secretary and President SLK/mjm Committee Meetings & Regular Board Meeting September 6, 2017 Page 3 of 8

6 METROPOLITAN UTILITIES DISTRICT Minutes of Regular Board Meeting September 6, 2017 The Board of Directors of the Metropolitan Utilities District of Omaha met in the Board Room of the Headquarters Building at 1723 Harney Street in regular session at 9:44 a.m. on September 6, Advance notice of the meeting was posted on the first floor of the Headquarters Building from August 2, 2017 to September 6, Notice of the meeting was published in the Omaha World-Herald on Sunday, August 27, The agenda of the meeting was available for public inspection at the office of the Secretary and President and delivered to Board Members on August 30, The agenda and accompanying Board documents were posted on the M.U.D. website on September 1, AGENDA N0. 1 ROLL CALL Chairman Begley called the meeting to order at 9:44 a.m. On a roll call vote, the following members were present: Dave Friend Jack Frost Mike McGowan Gwen Howard Jim Begley Tom Dowd Scott Keep, Secretary and President Also present were various members of the staff, representatives from IBEW #1521 and other members of the public. Mr. Cavanaugh was absent. AGENDA NO. 2 OPEN MEETINGS ACT NOTICE Chairman Begley advised those in attendance that a copy of the Open Meetings Act was posted in the rear of the Board Room. Chairman Begley reminded those in attendance that the regular Board Meeting was being livestreamed. AGENDA NO. 3 PLEDGE OF ALLEGIANCE Chairman Begley invited those who wished to participate, to stand and recite the Pledge of Allegiance. Committee Meetings & Regular Board Meeting September 6, 2017 Page 4 of 8

7 AGENDA NO. 4 APPROVAL OF MINUTES FOR COMMITTEE MEETINGS AND REGULAR BOARD MEETING FOR AUGUST 2, 2017 Mr. Frost moved to approve the Minutes for the Committee Meetings and Regular Board Meeting for August 2, 2017, which was seconded by Mr. Friend and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT NO AGENDA NO. 5 CAPITAL EXPENDITURES Mr. Friend moved to approve the capital expenditures as outlined in Mr. Reisner's letter to the Committee dated August 24, 2017, which was seconded by Mr. Frost and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT NO AGENDA NO. 6 ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES Mr. Friend moved to approve the acceptance of contracts and payment of final estimates as outlined in the letter from Mr. Reisner dated August 24, 2017, which was seconded by Mr. Frost and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT NO AGENDA NO. 7 BIDS ON MATERIALS AND CONTRACTS Mr. Friend moved for approval of Management's recommendations with regard to bids for materials and contracts, as described in Mr. Zellars' letter to the Committee dated August 25, The motion was seconded by Mr. Frost and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT NO Committee Meetings & Regular Board Meeting September 6, 2017 Page 5 of 8

8 AGENDA NO. 8 NOTICE OF PURCHASES BETWEEN $25,000 TO $50,000 Mr. Friend recommended that Mr. Zellars Notice of Purchases letter to the Committee dated August , be placed on file. MINUTES FILE DOCUMENT NO AGENDA NO. 9 MAIN EXTENSIONS Ms. Howard moved to approve the proposed main extensions as outlined in the letter from Mr. Reisner dated August 24, which was seconded by Mr. Friend and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT NO AGENDA NO. 10 WEST FARM WATER MAIN AT 144TH AND DODGE STREETS Ms. Howard moved to approve Management's recommendation to authorize the President to approve the pending capital expenditure and bid for water main installation for the West Farm subdivision at 144th and Dodge Streets, as outlined in the letter to the Committee dated August , from Stephanie Henn, Director of Plant Engineering. The motion was seconded by Mr. Dowd and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT AGENDA NO. 11 PROMOTIONAL INCREASES AND RATIFICATIONS Mr. Friend moved to approve the promotional increases and ratifications as outlined in Mr. Tripp's letter to the Committee dated August 28, 2017, which was seconded by Mr. Frost and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT Committee Meetings & Regular Board Meeting September 6, 2017 Page 6of8

9 AGENDA NO. 12 GROUP INSURANCE RENEWALS Mr. Friend moved to approve the proposed renewals for group insurance contracts, as outlined in Mr. Tripp's letter to the Committee dated August 28, 2017, which was seconded by Mr. Frost and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT AGENDA NO. 13 PROPOSED DISTRICT BOUNDARY CHANGES Mr. Dowd moved to approve the proposed District boundary changes, as outlined in Mr. Bucher's letter to the Committee dated August 29, 2017, which was seconded by Ms. Howard and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT AGENDA NO. 14 POTENTIAL PURCHASE OF LAND NEAR FLORENCE WATER TREATMENT PLANT Mr. Dowd moved to approve the proposed land purchase near the Florence Water Treatment Plant, as outlined in Mr. Bucher's letter to the Committee dated August 29, 2017, which was seconded by Mr. Friend and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT AGENDA NO. 15 EXPERIENCE STUDY FOR THE DISTRICT'S RETIREMENT PLAN Mr. McGowan moved to approve the findings and conclusions of the Experience Study for the District's Retirement Plan, as prepared by Cavanaugh Macdonald for the period ending December 31, 2016, and approve Management's recommendations as outlined in Ms. Schneider's letter to the Committee dated August 25, 2017 and as discussed in Committee. The motion was seconded by Ms. Howard and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT Committee Meetings & Regular Board Meeting September 6, 2017 Page 7 of 8

10 AGENDA NO. 16 OTHER MATTERS OF DISTRICT BUSINESS Chairman Begley asked whether any Board Members or members of the audience had any further comments they would like to offer. Mr. Begley asked Mr. Ausdemore to share information about recent work he has done with the American Gas Association (AGA). Mr. Ausdemore told the Board that the AGA has invited members of the M.U.D. Incident Management Team to the 2018 Operations Conference as a panelist to discuss a national response standard for natural gas emergencies specific to gas-filled structures, building evacuation and gas utility first responder safety, based upon company experiences and policies. Chairman Begley announced that the Board would go into Closed Session. At 9:50 a.m., Mr. Frost moved to go into Closed Session for the purpose of discussing collective bargaining strategy and real estate matters, which was seconded by Mr. McGowan and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT AGENDA NO. 17 CLOSED SESSION - COLLECTIVE BARGAINING AND REAL ESTATE MA TIERS At 10:55 a.m., Mr. Friend moved to return to open session, which was seconded by Mr. McGowan and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT Mr. Frost moved to adjourn, which was seconded by Ms. Howard and carried on a roll call vote. Voting Yes: Friend, Frost, McGowan, Howard, Begley, Dowd Voting No: None MINUTES FILE DOCUMENT NO The meeting was adjourned at 10:56 a.m. SLK/mjm Committee Meetings & Regular Board Meeting September 6, 2017 Page 8of8

11 METROPOLITAN UTILITIES DISTRICT Inter-Department Communication September 21, 2017 Subject: To: From: CAPITAL EXPENDITURES Committee on Construction and Operations cc: all Board Members, Keep, Bucher, Doyle, Mendenhall, Schneider and all Vice Presidents Ron K. Reisner, Senior Vice President, Chief Operations Officer The following items will be on the October 4, 2017 Committee Agenda for consideration and the October 4, 2017 Board Agenda for approval: RELOCATIONS and associated job numbers - $420,000 -Abandon 20 feet of 42- inch water main, 3 hydrants and below grade regulator station. Install 170 feet of 36- and 42-inch water main, relocate two hydrants and install 30 feet of gas main, 144th and Pacific Street area. This work is required to eliminate conflicts with new paving and storm sewers for the City of Omaha. This work is not reimbursable as mains are in public right-of-way. SYSTEM IMPROVEMENT and associated job numbers - $4,813,460 - Install 6,600 feet of 36- inch transmission main in 144th Street, West Dodge Road to Pacific Street, and 1,510 feet of 30-inch transmission main west of 144th Street in West Dodge Road for future pump station. The requested main in 144th Street is the fourth and final segment of transmission main between Pacific Street and West Maple Road. This transmission main will interconnect the Florence and Platte West treatment plants. This major tie-in between the two plants will greatly improve system flexibility and reliability, and increase overall system capacity by being able to move water more freely. The section of main being requested along 144th Street was originally budgeted to be completed in two segments with completion planned for With the West Farm Subdivision project being developed (at this time) to the immediate west of and adjoining h Street, it is imperative to construct this project in conjunction with the major road improvements that will be taking place in the near future. The developer is required to pay $442,637 for 3,340 of equivalent 12-inch main (of a 36- inch main), and $36,000 for three connections to the 36-inch main. The District's cost to oversize the section of main being shared with the developer, as a 36-inch main, is $1, 127, 163. This expenditure request also includes approximately 1,510 feet of 30-inch main to be installed in West Dodge Road, connected to and running west from the 36-inch main in 144th Street. The 30-inch main will supply water to a future pump station that is needed to improve system capacity, flows and reliability to the northwest of this area.

12 The total estimated District cost to install 1,765 feet of 36-inch and 1,510 feet of 30-inch mains, and to oversize 3,340 feet of 36-inch main is $4,334,823. The developer's estimated total cost is $478,637. The developer's portion of this project is currently within the City of Omaha's jurisdiction and being led by New West Farm Holdings, LLC. Construction is anticipated to take place in BUILDINGS, PLANTS AND EQUIPMENT $155,000 - Replace the mass spectrometer at the Florence lab. This piece of equipment is used for testing water for regulated elements such as lead, copper, chromium, mercury, nickel and iron under U.S. EPA methods. This instrument will replace a similar unit that was purchased in 2003 and is no longer supported $590,000 - Replace roof at the Operating Center. The existing roof is approximately 27,000 square feet and will be replaced with a modified built up system. The roof was last replaced in two sections, in 1994 and Both roofing sections were covered under a 10-year warranty, which have long since expired. The roof has begun to show signs of deterioration and should be replaced $ Remodel Water Distribution office. This office was last reconfigured over 20 years ago when record keeping and workflow were paper oriented. The area currently functions as an office, dispatch, meeting, storage and training area. The majority of work is now in electronic formats which requires different arrangements for operating and training. The new configuration will allow for more efficient use of the space including meetings and training $230,000 - SUPPLEMENTAL -Abandon and replace two wells at Platte West. The existing PW91-03 and PW91-30 wells were determined by the Nebraska Department of Health and Human Services (NHHS) to be under the influence of surface water. These wells were constructed in 1991, prior to when final design standards for potable groundwater wells were finalized and accepted by NHHS. Replacing these two wells will allow operation of the plant to continue with a groundwater designation. In accordance with NHHS regulations, the District must discontinue use of these wells no later than January 12, Also, in accordance with Nebraska Department of Natural Resources regulations, replacement wells must be constructed within one year of abandonment in order to be considered replacement wells. The existing piping, and electrical and pumping equipment will be reconnected to and used with the new wells. The original capital expenditure for this project was approved at the February 2017 Board Meeting for $466,000, which was prior to final design and contractor bidding $70,000 - Purchase one replacement compact track loader for Construction. This loader will be a replacement for a unit that has reached a point where it is no longer economical to maintain. The unit to be replaced is a 2005 John Deere model 325 skid steer loader with over 4,600 hours. -2-

13 $130,000 - Replace line stop fittings and valves, 117th Propane Air Plant. The main propane cavern shaft building houses vapor and liquid pipelines that run above ground into the main shaft and continue down the main shaft into the cavern. This project will address several important items. Two automated valves will be installed to allow for emergency closure of both lines. Also, two new stopper fittings will be installed and an existing tap will be sealed and secured. Management is recommending that approval of this expenditure will also authorize the President to enter into an agreement with WSP USA for the design and construction of the project. Approved: Ro K. Reis er Senior Vice President, Chief Operations Officer (402) Scott L. Keep President -3-

14 METROPOLITAN UTILITIES DISTRICT Inter-Department Communication September 20, 2017 Subject: To: From: ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES Committee on Construction and Operations cc: all Board Members, Keep, Bucher, Doyle, Schneider and all Vice Presidents Ron K. Reisner, Senior Vice President, Chief Operations Officer Work has been satisfactorily completed on the following contracts and final payments are recommended: Contract a. Est. 2 - Cedar Construction, , Install water mains in Hidden Acres, 61 5 t and State St. Board Amounts Approval Date *Unit Price Bid Actual Final Comments: There was a reduction in unit quantities of $2, Contract July 5, 2017 $164, $162, $15, Board Amounts Approval Date *Unit Price Bid Actual Final b.est Contracting, Inc., , , , Cast iron October 5, 2016 $915, $700, $226, gas main replacement, 35th to 41st Sts., Vinton to "A" Sts. Comments: There was a reduction in unit quantities of $219,288.11, a credit of $1, for soil compaction test failures and an increase of $5, for additional traffic control. Contract c. Est. 4 - Cedar Construction, , , Install water mains in Biondo Ridges, 183rd and Biondo Sts. Board Amounts Approval Date *Unit Price Bid Actual Final March 2, 2016 $914, $929, $104, Comments: There was a reduction in unit quantities of $18, and a reduction of $2, to repair a damaged gas main. There was a change order in the amount of $24, for delays caused by the grading not being done as originally planned, two additional connections requiring casing, additional restrained joint pipe, replacing a valve box and installing a pipe plug. There was also an increase of $12, for additional mobilizations required due to the developer's phasing of the project.

15 Contract Board Amounts Approval Date *Unit Price Bid Actual Final d.est. 2 - Cedar Construction, , Install Capehart Rd. booster water pump station, April 5, 2017 $98, $98, $28, Harrison Tull Dr. and Capehart Rd. Comments: All work has been completed by the contractor, is acceptable and in compliance with the scope of work. Contract e. Est. 2 - Cedar Construction, , Install water mains in Country Club Oaks, Replat 5, 60 1 h and State Sts. Board Amounts Approval Date *Unit Price Bid Actual Final July 5, 2017 $84, $76, $21, Comments: There was a reduction in unit quantities of $7, and an increase of $ to install an air relief. Contract f. Est. 2 - Kersten Construction, , Install water mains in Blair Commons, 95th St. and Redick Ave. Board Amounts Approval Date *Unit Price Bid Actual Final June 1, 2016 $55, $47, $14, Comments: There was a reduction in unit quantities of $8, and an increase of $ to place flowable fill in a void under an existing storm sewer lateral. Contract g.est. 3 - Cedar Construction, , Install water mains in Deer Creek Reserve, 129th and State Sts. Board Amounts Approval Date *Unit Price Bid Actual Final November 2, 2016 $112, $111, $9, Comments: There was a reduction in unit quantities of $1, Contract Board Amounts Approval Date *Unit Price Bid Actual Final h.est. 3 - Thompson Construction, , Install water mains in the Villas February 1, 2017 $99, $90, $6, of Piney Creek, 202"d St. and Biondo Pkwy. Comments: There was a reduction in unit quantities of $9, and a reduction of $1, due to eliminating the need for a vault and air relief. There was an increase of $1, for the contractor to lay out the mains ahead of paving. -2-

16 Contract i. Est. 2 - Cedar Construction, , Install water mains in Candlewood Hills, 124th Plz. and W. Dodge Rd. Board Amounts Approval Date *Unit Price Bid Actual Final November 2, 2016 $90, $95, $43, Comments: There was an increase in unit quantities of $2, and an increase of $2, for an additional mobilization. *Based upon Engineering's estimated unit quantities. Approved: Ro K. Reis er Senior Vice President, Chief Operations Officer (402) d~9%~ Scott L. Keep President -3-

17 METROPOLITAN UTILITIES DISTRICT Inter-Department Communication September 22, 2017 Subject: BIDS ON MATERIALS AND CONTRACTS DURING THE MONTH OF SEPTEMBER To: From: Construction & Operations Committee cc: All Board Members, Keep, Bucher, Doyle, Reisner, Schneider, and all Vice Presidents Jon A. Zellars, Director, Purchasing The following items will be on the October 4, 2017 Committee Agenda for consideration and the October 4, 2017 Board Agenda for approval. The recommended bid is balded and listed first. WATER/GAS MAIN CONTRACTS Bids Sent I Rec'd Bidder Amount Bid Install Water Mains in Remington Ridge Estates Lots , 197th & Redwood Streets WP 1540 Engineering Estimate: $127, /4 Cedar Construction Kersten Construction Hawkins Construction Thompson Construction $111, , , , (A C&A in the amount of $184, will be presented to the Board on October 4, 2017 for approval.) Install Water Mains in 370 North 150th Street & Highway WP 1545 Engineering Estimate: $277, Kersten Construction $231, Cedar Construction 242, (A C&A in the amount of $352, will be presented to the Board on October 4, 2017 for approval.) Page 1of3

18 Install Water Mains in Tri-Faith Initiative Lots 15-16, 131st & Shirley Streets WP 1546 Engineering Estimate: $27, *Reject Bid 22/1 Cedar Construction $37,641.00* Install Water Mains in Kozol's Ponca Business Park, Highway 75 & Rainwood Road WP 1547 Engineering Estimate: $271, /4 Hawkins Construction $209, Judds Bros. Construction 233, Cedar Construction 248, Thompson Construction 273, (A C&A in the amount of $27 4, will be presented to the Board on October 4, 2017 for approval.) OTHER Item Bids Sent I Rec'd Bidder Amount Bid 36" Ductile Iron Pipe, Fittings & 14/3 American Underground $91, Accessories for h & Pacific Project American Cast Iron Pipe 99, R1898 Core & Main 99, (A C&A in the amount of $340, will be presented to the Board on October 4, 2017 for approval.) Platte West Water Treatment Plant Replacement Well Construction PW91-03 & PW Engineering Estimate: $500, /2 Charles Sargent Layne Christensen Co. $552, , (C&A for approved February 1, 2017 in the amount of $466, A Supplemental C&A in the amount of $230, will be presented to the Board on October 4, 2017 for approval.) Operating Center Roof Replacement 6/4 Independent Roofing $379, GP 2315 R.L. Craft Co. of Omaha 386, Boone Brothers 417, McKinnis,lnc. 695, (A C&A in the amount of $590, will be presented to the Board on October 4, 2017 for approval.) Page 2of3

19 One (1) Compact Track Loader w/ 4 Years/4,000 hours Warranty /6 Murphy Tractor $54, Bobcat of Omaha 60, NMC 62, Bobcat of Omaha 64, Rueter's 66, NMC 73, (A C&A in the amount of $70, will be presented to the Board on October 4, 2017 for approval.) Director, Pf'trr I"\.,..,, (402) Approved: <::: --- Joseph Vice President, Accounting Debra A. Schneider Senior Vice President, CFO 2~~~~ President Page 3of3

20 1 This Subject: MAIN EXTENSIONS METROPOLITAN UTILITIES DISTRICT ln/er-depattment Communication September 21, 2017 To: From: Services and Extensions Committee cc: All Board Members, Keep, Bucher, Doyle, Mendenhall, Schneider and all Vice Presidents Ron K. Reisner, Senior Vice President, Chief Operations Officer The following main extensions will be on the October 4, 2017 Committee Agenda for consideration and the October 4, 2017 Board Agenda for approval: 1. GAS Job Number Cost Revenue Credits Estimated Equivalent Applicant Other Total Deficiency $143,448 $116,127 $144,420 $0 $143,448 $0 This main is bein'j installed to provide gas service to 174 single residence Jots in Westbwy Creek Subdivision, and "F" Streets. Management is recommending oversizing approximately 1,420 feet of approach main as a 4 inch main at an incremental District cost of $27,321. (Douglas County zoning, Richland Homes, LLC)! ' I Job Number Project Cost WATER Applicant Contribution Construction by Applicant M.U.D. Cost $184,845 $184,845 Pioneer Contribution $224,885 $0 $0 This main is being installed to provide domestic water service and fire protection to 57 single residence lots in Remington Ridge Subdivision, 197'h and Redwood Streets. There are pioneer main fees in the amount of $40,040 due to the existing 36 inch water mains in 19~d and Harrison Streets. (Sarpy County zoning, Boyer Young) Job Number Project Cost Applicant Contribution Construction by Applicant M.U.D. Cost $349,676 $349,676 Pioneer Contribution. 434, $ $3,050 $352,726 $783,709 $0 main is being installed to provide domestic water service and fire protection to 17 commercial lots in 370 Norlh Subdivision, Highway 370 and Highway 50. There are pioneer main fees in the amount of $434, 033 due to the existing 24 and 30 inch water mains in 144th Street and Highway 370. M. U.D. 's cost is to abandon an automatic flush connection. (City of Papillion zoning, 370 Norlh LLC) i

21 3. 4. Job Number Project Cost WATER (con't) Applicant Contribution Construction by Applicant M.U.D. Cost $274,870 $274,870 $0 $0 This main is being installed to provide domestic water service and fire protection to four commercial lots in Kozol's Ponca Business Park, Highway 75 and Rainwood Road. (City of Omaha zoning, Green Shoe Investments LLC) Job Number Project Cost Applicant Contribution Construction by Applicant M.U.D. Cost $70,000 $70,000 $0 $0 This main is being installed to provide domestic water service and fire protection to a new commercial building at 4952 South 61 5 ' Street. (City of Omaha zoning, Hawkins Sales & Service) Approved: Ro K. Rei er Senior Vice President, Chief Operations Officer (402) Scott L. Keep President -2-

22 METROPOLITAN UTILITIES DISTRICT Inter-Department Communication September 22, 2017 Subject: Promotion Increases and Ratifications, October 2017 Board meeting To: Personnel Committee members Friend, Cavanaugh, and Howard cc: Board Members Begley, Dowd, Frost, and McGowan; President Keep, and Sr. Vice Presidents Bucher, Doyle, Reisner and Schneider From: Patrick L. Tripp, Vice President, Human Resources The Human Resources Department is recommending that the Board of Directors approve the promotion increases set out below. All positions involve District employees earning more than $10,000 per year and therefore require your approval. 1. Bargaining Unit/OAC - Promotion Increases The Human Resources Department is recommending that the Board of Directors approve wage increases for the following Employees within the Bargaining UniVOAC classification. These wage recommendations are based on a formal selection process, are in compliance with the collective bargaining agreement, and are made following the posting and application process for a job opening in the District. The effective date for these increases will be the beginning of the next OAC pay period following Board approval. Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Employee: Current position (department): New position {department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Christopher Franck Customer Service Clerk I (Customer Services) Customer Service Clerk II (Customer Services) $22.66; Step 1 $23.79; Step % March 21, 2016 Chad Koehler Large Boring Machine Operator (Construction) Crew Leader (Construction) $37.08; Step 4 $39.04; Step % January 2, 2002 Gregory Ramirez Utility Worker (Construction) Crew Leader (Construction) $35.14; Step 4 $37.08; Step % November 27, 2000

23 Promotion Increases and Ratifications Page 2 Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Michael Renner Utility Worker (Construction) Crew Leader (Construction) $35.14; Step 4 $37.08; Step % July 29, 1996 Nikol Smith Meter Reader (Meter Reading) Communications Clerk II (Customer Services) $28.94; Step 4 $31.04; Step % June 26, 2006 Marques Vaughn Customer Service Clerk I (Customer Services) Customer Service Clerk II (Customer Services) $23.98; Step 2 $25.19; Step % September 8, Bargaining Unit/OAC Promotion Increases Due To Job Progression The Human Resources Department is recommending that the Board of Directors approve the following wage increases for the Bargaining Unit/OAC employees who have successfully completed required training and who have been recommended by their supervisor for promotion as they progress within their job family. All increases are based on the bargaining unit wage structure. The effective date for these increases will be the beginning of the next OAC pay period following board approval. There are no recommendations for approval this month. 3. Supervisory, Professional and Administrative - Increases The following Supervisory, Professional and Administrative (SPA) employees have been promoted. It is recommended the President be authorized to increase the salary of these employees. These SPA positions have been evaluated, graded, appropriate job descriptions completed, and posting guidelines fulfilled. The effective date for these salaries will be the beginning of the next SPA pay period following board approval. Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Thomas Acers II ERP Technical/Functional Analyst II (Information Technology) Manager, Geographic Information Systems (Information Technology) $98,948; SPA 5 $103,895; SPA % June 3, 2002

24 Promotion Increases and Ratifications Page 3 Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date: James Dorsey Customer Service Clerk Ill (Customer Services) Quality Control Specialist (Customer Accounting) $26.37; Step 2 $62,290; SPA % September 8, 2014 Vikram Tharigonda Sr. ERP Technical/Functional Analyst (Information Technology) Manager, Enterprise Applications (Information Technology) $107,355; SPA 6 $112,723; SPA % July 12, Supervisory. Professional and Administrative - New Hire Ratification Board of Director Ratification of salaries, for new SPA employees hired from outside the District, is required to confirm the salary within the grade established for the position. Authorization to ratify the annual salary of SPA employees hired from outside the District will be requested each month, if appropriate. There are no recommendations for approval this month. ~ ~ 2~. ~0/ 7 Pat~ Vice President, Human Resources (402) Date approved Scott L. Keep President

25 METROPOLITAN UTILITIES DISTRICT Inter-Department Communication September 25, 2017 Subject: To: From: INTERLOCAL AGREEMENT WITH THE CITY OF LAVISTA Judiciary and Legislative Committee cc: All Board Members; Keep, Doyle, Schneider, Reisner; and all Vice Presidents Ronald E. Bucher, Senior Vice President/General Counsel As the Board may be aware, the City of LaVista ("LaVista") is undertaking a major redevelopment project along the east side of 84 1 h Street across from Brentwood Drive. In November 2016, the District and LaVista entered into an lnterlocal Agreement related to an 8-inch ductile iron water main which needed to be abandoned in order to accommodate the demolition of existing structures and necessary grading work. This new lnterlocal Agreement is for the installation of an 8" water main to serve one of the new lots in the redevelopment. LaVista will pay the $43, estimated cost of this installation. Management is recommending approval of this lnterlocal Agreement. This item will be on the October 4, 2017 J&L Committee Agenda for discussion and on the October 4, 2017 Board Agenda for consideration. If you have any questions, please feel free to contact me. Approved: 5 urt1c:z%~ Scott Keep President /~~ '-- Ronald E. Bucher Senior Vice President/General Counsel

26 WATER MAIN EXTENSION AGREEMENT District Job No THIS AGREEMENT is entered into on.. METROPOLITAN UTILITIES DISTRICT OF OMAHA, NEBRASKA, ("District") and City of Lavista ("Applicant"). 20, between the The parties find, determine, and agree as follows: 1,. Pursuant to the Nebraska lnterlocal Act, Nebraska Revised Statutes Section et seq, as amended, ("lnterlocal Act"), any power or powers, privileges, or authority exercised or capable of exercise by a political subdivision may be exercised and enjoyed jointly with any other political subdivision, and any two or more political subdivisions may enter into agreements with one another for joint or cooperative action pursuant to the lnterlocal Act. Any one or more political subdivisions may contract with any one or more other political subdivisions to perform any governmental service, activity, or undertaking which at least one of the political subdivisions entering into the contract is authorized by law to perform; and 2. The purpose of the lnterlocal Act is to permit local government units to make the most efficient use of their powers by enabling them to cooperate with other government units on a basis of mutual advantage and provide services and facilities in a manner and pursuant to forms of governmental organization that will accord best with factors influencing the needs and development of local communities; and 3. The District currently operates potable water services and facilities within the boundaries of Applicant and the Applicant desires construction of a water main within right of way or utility easements of Applicant; and 4. The District and Applicant deem it to be to their mutual advantage to cooperate with each other to provide for construction of the water main as described in this Agreement, and doing so will make more efficient use of their powers and facilities to their mutual benefit and advantage, and will accord best with factors influencing the needs and development of local communities. 5. The District and Applicant enter this Agreement pursuant to the lnterlocal Act. In consideration of the Applicant's payment of Forty Three Thousand Five Hundred Thirteen and 00/100 Dollars ($ ) to the District, receipt of which is acknowledged, the District shall install, as soon as is reasonably possible, 200'+/- of 8" 0.1.P.J. water main in LaVista City Centre Phase 1 at S. 83rd Avenue and Brentwood Drive to serve lot 3 as shown on the attached plat marked Exhibit "A", together with such appurtenances, as the District deems necessary (the "main" or "mains"). This consideration includes (1) the estimated (total) cost of the main installation ($ 43,513 ). The estimated total cost of the main installation is $ , of which cost the District shall assume $ None, which is the estimated difference in cost between an _8_" main required and an _8_" main installed. If the estimated (total) cost for the installation of the main or the estimated contributions to other pioneer mains, or both, are not sufficient to cover the actual costs and/or contributions, Applicant shall pay to the District the actual costs and/or contributions, over the estimated costs and/or contributions. The District may refuse service from the main until such payment(s) has/have been made. If the actual (total) cost for the installation of the main and appurtenances or the estimated contributions to other pioneer mains, or both, are less than the amount paid, the difference, of either or both, whichever the case may be, shall be refunded to the Applicant.

27 The Applicant shall not change the location or grade of the street(s) over which Applicant has control, as shown on Exhibit "A". The Applicant shall grade the street(s) to conform to Exhibit "A" before the main installation. Where streets wlll not be paved, the right-of-way rr.o.w.") shall be graded to conform to the grade that has been legally established by the appropriate governing body. Where the grade has not been established, the grade shall be satisfactory to the District. Where streets are to be paved, the District shall not begin the main installation until the Applicant has completed street paving, storm sewer inlet installation and finish grading of the R.O.W. If, within five (5) years from date the main installation is placed in service, the District deems it necessary to relocate, lower or raise the grade of all or part of the main as a result of the Applicant's failure to have brought the street(s) to grade before the main installation or a change in the grade or location of the street(s), then the Applicant shall pay the District's costs of raising, lowering or relocating the main. The main shall be owned by and under the control of the District, its successors and assigns. The District shall use reasonable efforts to avoid damaging or removing erosion control measures. The District may remove erosion control measures if the District determines that such measures interfere with the installation, repair or maintenance of the District's mains. The Applicant shall repair or replace erosion control measures after the District has completed the part of the main installation that required damage to or removal of the erosion control measures. The District shall not be responsible for damage to or removal of erosion control measures and shall not be responsible to repair or replace them. The Applicant shall indemnify the District from all liabilities, federal, state, local or personal, that may arise due to such damage or removal. This main installation is subject to the approval of the District's Board of Directors. If the installation is not approved, this Agreement is void. If the Applicant cancels this Agreement or fails to perform under it, the Applicant shall pay the District's design costs and all other costs and expenses incurred. Applicant shall not landscape or allow anyone else to landscape in the street right-of-way or in easements obtained for main installation prior to the main installation. If Applicant does so, the District may remove any landscaping necessary for installation of the water mains. Applicant shall pay the additional costs of main installation caused by such landscaping. Landscaping is defined as the placing of any decorative materials, including but not limited to, the planting of trees or shrubbery and the placing of large rocks or other large decorative objects. This Agreement is conditioned upon receipt of all permits and easements necessary for the main installation. If the main installation is delayed due to severe cold weather or when there is more than eight (8) inches of frost in the ground, the District shall not be required to work on the project without additional compensation and/or an appropriate time extension. If frost is more than eight (8) inches in depth, the additional compensation to install and/or the appropriate time extension will be negotiated and will be approved by the Applicant before proceeding. The Applicant shall not pave the panels of paving where the water main connection will be made at the intersection of S. 83rd Avenue and Brentwood Drive. Where main installation is required ahead of paving, prior to the start of installation and approved by the District, the Applicant shall submit field notes on construction staking to the District's Engineer. Field notes shall include station, proposed pipe grade, existing and proposed ground elevation over the main, cut required from grade stake to bottom of ditch to provide five (5) feet cover over the main, benchmark location and benchmark elevation. The Applicant shall provide all line and grade stakes necessary for the installation and verify, during construction, that the main is installed to the specified line and grade. (If Private Streets - Said construction staking shall include the areas of any easements Applicant owns, or have been granted by Third Parties, that are within areas where the District's facilities are to be installed including private access roads, lot lines, etc. in order to assure the District's facilities are installed within said easements.)

28 Maximum construction stake spacing shall be fifty (50) feet. Stakes shall be installed along proposed back of curb. Stakes shall include elevation, grade and proposed cut. The Applicant shall stake sewer crossing. Sewer crossing stakes shall include the elevation of the bottom of the sewer pipe and cut required to provide eighteen (18) inch minimum clearance between the bottom of the sewer and the top of the main. Upon completion of the job and prior to the release of the main for service, the Applicant shall certify in writing to the District that the main was installed to the line and grade indicated on Exhibit "A" and in accordance with the Applicant's line and grade stakes. Failure to do so shall constitute the Applicant's representation that the main was installed to correct line and grade. In accordance with the lnterlocal Act: 1. The duration of this Agreement shall be as follows: This Agreement shall begin upon its execution by both parties and end upon completion of performance of all the obligations of the parties as described herein; 2, There shall be no separate legal or administrative entity created by this Agreement to administer this Agreement. 3. The purpose of this Agreement is to provide for construction of the water main as described above. 4. The City will pay for costs of the water main construction as described above. No separate budget will be established or maintained by the parties apart from normal budget and accounting records maintained by each of the parties; 5. This Agreement will end upon completion of performance by both parties and shall not terminate before that occurs. The District will own the water main at all times, including the end of the Agreement. 6. The parties do not contemplate any levy, collection, or accounting for any tax authorized under sections to or to ; and 7. The District's Director of Engineering Design and City Engineer jointly shall be the administrators of this Agreement for the parties. 8. The water main will be acquired, held and disposed of in the manner described in this Agreement. APPLICANT: City of LaVista, Nebraska METROPOLITAN UTILITIES DISTRICT OF OMAHA: By: Title: Date: By: Senior Vice President, Operations Date: Printed Name Attest: APPROVED AS TO FORM: Title: Address for giving notices: City of LaVista 8116 Park View Blvd. LaVista, NE Senior Vice President, General Counsel S:\Englneering\Projects\Water\WP 1536\Legal\ MEA

29 :;;: _-.=1_ :~.:; ~ -! ~ t ;;i i I 1 d ni ~ <...J ~ 0 z 0 {3 ~ ~:i <.>11.. ~ ' i ~... ~- ~ --- ~..... ~ l...,,, ~ S. MllST- I S. MlllT.

30 Working Draft Personnel Professional Services/Consulting Travel Memberships

31 Components of District Spending (Water & Gas Combined) Payroll & Benefits 54% Other O&M 18% Capital Expenditures 28% 2

32 Personnel

33 2018 Personnel Budget (Water & Gas Combined) 2017 Budget As of December Estimate 2018 Budget Full-Time (15) Part-Time Total Budget 2017 Estimate 2018 Budget Full-Time Part-Time 2018 Budget Employees by Type As submitted OAC 71% SPA 29% 2018 Budget Headcount by Department As submitted Customer Services 18% Water Operations & Maint 17% Engineering, Construction & Transportation 30% Field Services & Measurement 13% All Other 11% Information Technology 6% Gas Operations 5% 4

34 Number of Employees 2017 Budget vs Estimate (as of December 31) 2017 Budget 2017 Estimate Increase / (Decrease) Department Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time Total President's Office Legal Human Resources (1) - (1) Safety & Security Information Technology (5) - (5) Planning & Process Improvement Corporate Communications Gas Operations Field Services & Measurement Water Operations & Maintenance (7) 1 (6) Customer Services (10) (1) (11) Marketing (2) - (2) Rates & Regulatory Affairs Accounting, Stores, & Purchasing Engineering, Construction & Transportation SUBTOTAL (As submitted) (17) - (17) Budget Adjustment (25) - (25) (23) - (23) 2-2 TOTAL (15) - (15) (1) Human Resources Removed overlap of Manager, Employee Relations (retirement delayed until 2019) +3 Safety & Security Staff additions for 1 Manager, Emergency Planning, 1 Safety Specialist, and 1 Security Specialist (5) Information Technology Net staff reductions due to reorganization and migration to cloud +1 Corporate Communications Marketing & Communications Coordinator transferred from Marketing Department +3 Field Services & Measurement Added 3 Field Services Helper positions (7) Water Operations & Maintenance (1) Sr. Design Engineer (Florence), (1) Electrician (Maintenance), (1) Buildings & Grounds Maintenance Worker (Maintenance), (1) Admin. Clerk moved from full-time to part-time (Maintenance), (1) Crew Leader and (2) Water Maintenance Workers (Water Distribution) (10) Customer Services - Budgeted positions not filled: (4) Customer Account Clerks, (3) Customer Service Clerks, (1) Communications Clerk, (1) Administrative Clerk, and (1) Meter Reader (2) Marketing Director, Marketing & Contractor Services position (1) and moved Marketing & Communications Coordinator to Corporate Communications (1) +1 Engineering, Construction & Transportation Add 1 Administrative Clerk V (Engineering Design), overlap of 1 Administrative Clerk V for 2018 retirement 5 (Transportation), less (1) Computer Aided Drafting Technician (Engineering Design)

35 Number of Employees 2017 Estimate vs Budget (as of December 31) 2017 Estimate 2018 Budget Increase / (Decrease) Department Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time Total President's Office (1) - (1) Legal (1) - (1) Human Resources Safety & Security (1) - (1) Information Technology Planning & Process Improvement Corporate Communications Gas Operations (1) - (1) Field Services & Measurement Water Operations & Maintenance Customer Services (3) 1 (2) Marketing (1) - Rates & Regulatory Affairs Accounting, Stores, & Purchasing Engineering, Construction & Transportation SUBTOTAL (As submitted) (1) - (1) Budget Adjustment (23) - (23) (22) - (22) 1-1 TOTAL (1) President s Office Sr. Vice President, General Counsel retiring in 2018 (overlap in 2017) (1) Legal Department Secretary retiring in 2018 (1) Safety & Security Vice President, Safety & Security retiring in 2018 (overlap in 2017) (1) Gas Operations Planned retirement in 2018 (Gas Distribution) +2 Water Operations & Maintenance Add for Assistant Director, Water Production & Pumping (Florence) and Facilities Manager (Maintenance) (3) Customer Services (2) Cashiers, (1) Investigator to Field Services & Measurement, (1) ERT Variance Reader, (1) Customer Service Clerk, +1 Customer Account Clerk, and +1 Administrative Clerk +1 Marketing Move Builder Services Clerk from part-time to full-time +5 Engineering, Construction & Transportation Add +1 Sr. Engineering Technicians, +2 Utility Locators, +1 Engineer, less (1) Administrative Clerk due to retirement (overlap in 2017) 6

36 Full-Time Employees Monthly Trend Actuals Jan - Aug Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2017 Actual 2017 Budget Dec 2017 & 2018 Target 7

37 Retirees Per Year 2010 through August 31, months Avg Svc Avg Age Count

38 Employee Demographics As of September 11, 2017 Full-Time Vested Employees Department Employees Total 55 and older 60 and older President's Office Legal Human Resources Safety & Security Information Technology Gas Operations Field Services & Measurement Water Operations & Maintenance Customer Services Marketing Rates & Regulatory Affairs Accounting, Stores, & Purchasing Engineering, Construction & Transportation TOTALS % of Total Full-Time Employees 100% 79% 31% 11% 9

39 Employees by Age Group As of September 11, % 31% age % % % 15.0% 10.0% 5.0% 0.0% % 16% 96 12% 10% 5% 1% 3% 1% <

40 Professional Services/Consulting

41 Professional Services / Consulting Summary 2017 Budget Expensed 2018 Budget Included Within Capital Projects Total pens Increase / (Decrease) President's Office $ 484,100 $ 470,250 $ - $ 470,250 $ (13,850) Human Resources 180, , ,000 (5,000) Safety & Security - 24,300-24,300 24,300 Accounting, Stores, & Purchasing 76,500 73,100-73,100 (3,400) Customer Services 41, (41,500) Marketing 25, (25,000) Rates & Regulatory Affairs - 1,160-1,160 1,160 Field Services & Measurement 11,000 14,000 9,800 23,800 12,800 Gas Operations 475, , , ,000 50,000 Planning & Process Improvement 21,000 16,250-16,250 (4,750) Corporate Communications 4,800 4,800-4,800 - Information Technology 4,949,000 3,203,000 2,094,909 5,297, ,909 Water Operations & Maintenance Water Operations Admin 130,000 90,000-90,000 (40,000) Maintenance - 30,400-30,400 30,400 Water Distribution - 25,000-25,000 25,000 Florence 1,004,000 5, , ,000 (74,000) Platte South 190,000 12,000-12,000 (178,000) Platte West 384, , ,000 (44,000) Total Water Operations & Maintenance 1,708, , ,000 1,427,400 (280,600) Engineering, Construction & Transportation Plant Engineering 1,050,000-1,460,000 1,460, ,000 Engineering Design 1,130,000 4, , ,600 (430,400) Transportation 40, (40,000) Total Engineering, Construction & Transportation 2,220,000 4,600 2,155,000 2,159,600 (60,400) TOTAL MUD $ 10,195,900 $ 4,643,860 $ 5,554,709 $ 10,198,569 $ 2,669 12

42 Professional Services / Consulting 2018 Budget President's Office 1. Outside legal fees $ 400, Actuarial valuation, pension and OPEB 28, Recording, streaming of monthly board meetings 27, Financial advisory services 10, Tax and compliance work on water bonds 4,750 Total President's Office $ 470,250 Human Resources 1. Benefits Consulting $ 110, Actuarial services for retirement plan projections, retiree drug subsidy, Qualified Domestic Relations Orders, and any other HR actuarial needs 30, SPA Supervisor Training, MUD University 30, SPA ad-hoc job evaluations 5,000 Total Human Resources $ 175,000 Safety & Security 1. Hazardous Material Response Training $ 15, Confined Space Training 9, Background checks 300 Total Safety & Security $ 24,300 Accounting, Stores, & Purchasing 1. Audit of Financial Statements $ 71, Audit of Pension investment values (per GASB 68) 2,000 Total Accounting, Stores & Purchasing $ 73,100 Total 13

43 Professional Services / Consulting 2018 Budget Rates & Regulatory Affairs 1. Common Fund annual audit $ 1,160 Total Rates & Regulatory Affairs $ 1,160 Field Services & Measurement 1. Model 5 Prover certification 14, Upgrade snap prover software 9,800 * Total Field Services & Measurement $ 23,800 Gas Operations 1. Simulator project $ 250,000 * 2. Design for Delaval oil turn down tank 100,000 * 3. Study of liquefaction system 100, Maintain/improve programming at LNG/Propane Air plants 25, Design LNG tank stair improvements 20,000 * 6. Drawing updates/improvements 20, Monitoring at 117th cavern 10,000 Total Gas Operations $ 525,000 Planning & Process Improvement 1. Lean Six Sigma training (Yellow Belts) $ 16,250 Total Planning & Process Improvement $ 16,250 Corporate Communications 1. Social media support $ 4,800 Total Corporate Communications $ 4,800 Total * Indicates capitalized item 14

44 Professional Services / Consulting 2018 Budget Information Technology A. Consulting Expensed in IT Cost Centers 1. FNTS (First National Technology Solutions) data subscription fee $ 1,323, Resources to manage the Customer Relationship Management (CRM) module 350, Resources to support Basis group 350, BusinessObjects (BOBJ) report development for Mobility, Human Resources, and Accounting 275, Draw commercial services in GIS for Engineering 250, Cyber Security related consulting 200, Scanning for Customer Accounting, Human Resources and Accounting 200, IT projects not specifically budgeted 155, Disaster recovery/business continuity design/implementation support 100,000 Subtotal Consulting Expensed in IT Cost Centers $ 3,203,000 Total 15

45 Professional Services / Consulting 2018 Budget Information Technology B. Consulting Included within Capital Projects 1. Implementation of SAP HANA platform that combines database, application processing, and integration services on a single platform $ 500, Data Center equipment upgrades and replacements 300, SuccessFactors (Employee Central) 250, Invoice redesign 500, IVR (Interactive Voice Response) technology for Customer Service 200, Inventory Management/Control for Stores 100, Radio - Plant to Plant communication 100, SCADA (Supervisory Control and Data Acquisition) data center that provides a flexible cloud-enabled environment for high-level supervisory manangement 90, SAP Quality Management (QM) for meter testing in Measurement 54,401 Subtotal Consulting Included within Capital Projects $ 2,094,909 Total Information Technology $ 5,297,909 Total 16

46 Professional Services / Consulting 2018 Budget Total Water Operations & Maintenance 1. Water Operations A. Integrated Management Planning (IMP) process $ 90, Maintenance A. RICE (Regulatory Impact Analysis for the Stationary Combustion Engine) Clean Air Act compliance monitoring $ 30, Water Distribution A. Water leak detection $ 25, Florence A design work associated with Florence CIP 800,000 * B. Design chemical building ASMEI (Architectural, Structural, Mechanical, Electrical, and Instrumentation) 100,000 * C. Design Minne Lusa ASMEI (Architectural, Structural, Mechanical, Electrical, and Instrumentation) improvements 25,000 * D. SCADA (Supervisory Control and Data Acquisition) programming and maintenance 5, Platte South A. SCADA (Supervisory Control and Data Acquisition) programming and maintenance 12, Platte West Permit Requirements A. Environmental monitoring - wetlands, wetland mitigation sites 250,000 B. River gauging station maintenance 30,000 C. Groundwater sampling 15, Platte West A. SCADA (Supervisory Control and Data Acquisition) programming and maintenance 40,000 B. All other 5,000 Total Water Operations & Maintenance $ 1,427,400 * Indicates capitalized item 17

47 Professional Services / Consulting 2018 Budget Total Engineering, Construction & Transportation 1. Plant Engineering A. Design for various capital improvement projects (based on historical average for last two years - will be included in capital budget as part of underlying projects) $ 750,000 * B. Design Zone 3 pump station 400,000 * C. Water main inspection work 125,000 * D. Soil & Concrete Testing 70,000 * E. Air Emissions testing 65,000 * F. Storm water pollution prevention plan (regulatory compliance requirement) 50,000 * 2. Engineering Design A. Design cast iron water main replacements and water main extensions (will be included in capital budget as part of underlying projects) 600,000 * B. Condition assessment of cast iron water mains 50,000 * C. Topographic surveys for internal use in designing water main replacements and extensions 25,000 * D. Wetlands delineation surveys, reporting and permitting 20,000 * E. Topographic surveys for internal use to determine water pressure logger elevations 4,600 Total Engineering, Construction & Transportation $ 2,159,600 TOTAL MUD $ 10,198,569 * Indicates capitalized item 18

48 Travel Summary

49 Travel Summary 2018 Budget Increase Budget Budget (Decrease) President's Office $ 15,500 $ 15,500 $ - Legal 5,050 7,550 2,500 Human Resources 17,000 13,750 (3,250) Safety & Security 9,600 36,750 27,150 Information Technology 61,000 51,500 (9,500) Planning & Process Improvement - 10,500 10,500 Gas Operations 21,900 21,700 (200) Field Services & Measurement 12,850 13, Water Operations & Maintenance 11,175 13,900 2,725 Customer Services 10,500 10,000 (500) Marketing 8,100 12,000 3,900 Rates & Regulatory Affairs 7,000 7,000 - Accounting, Stores, & Purchasing 15,000 14,100 (900) Engineering, Construction & Transportation 34,450 39,150 4,700 SUBTOTAL $ 229,125 $ 267,100 $ 37,975 Budget Adjustment (25,000) (35,825) (10,825) TOTAL $ 204,125 $ 231,275 $ 27,150 20

50 Memberships Summary