SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF COMMISSIONERS REGULAR MEETING Everett Headquarters Building, 2320 California Street

Transcription

1 SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF COMMISSIONERS REGULAR MEETING Everett Headquarters Building, 2320 California Street December 20, 2016 CONVENE REGULAR MEETING 9:00 a.m. - Training Center Room 1 1. GOVERNANCE PLANNING WORKSHOP RECONVENE REGULAR MEETING - 1:30 p.m. - Commission Meeting Room 2. COMMENTS FROM THE PUBLIC 3. CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of December 6, 2016 B. Bid Awards, Professional Services Contracts and Amendments C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers D. Consideration to Prequalify Contractors as Bidders for Electrical Line Work for the District During the Contract Year of 2017 E. Consideration of a Resolution Repealing Resolution No PUBLIC HEARING AND ACTION A. Disposal of Surplus Property 1st Quarter 2017 B. Consideration of a Resolution Ordering, Approving, Ratifying, and Confirming the Construction and Installation of the Plan or System of Additions to the District s Water Utility, as Adopted on November 22, 2016, and Applicable to the Local Utility District Hereinafter Described, Forming Local Utility District No. 59 of Snohomish County, Washington, and Confirming the Final Assessment Roll C. Consideration of a Resolution Adopting the 2017 Budget for Public Utility District No. 1 of Snohomish County, Washington 5. ITEMS FOR INDIVIDUAL CONSIDERATION A. Consideration of a Motion Accepting the Financial Planning and Budgeting Monitoring Report B. Consideration of a Resolution Authorizing the CEO/General Manager or his Designee to Execute Amendment No. 5 to the Electrical Output Sales Agreement Between the District and Hampton Lumber Mills Washington, Inc. 6. COMMISSION BUSINESS A. Commission Reports B. Consideration of Election of Commission Officers for the Year GOVERNANCE PLANNING A. Adoption of the 2017 Governance Planning Calendar ADJOURNMENT The next scheduled regular meeting is January 10, 2017 Agendas can be found in their entirety on the Snohomish County Public Utility District No. 1 web page at The public is invited to attend. Parking and meeting rooms are accessible for persons with disabilities. Contact the Commission Office at for special accommodations or additional information. 1/147

2 GOVERNANCE PLANNING WORKSHOP 2/147

3 COMMENTS FROM THE PUBLIC 3/147

4 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 3A TITLE Approval of the Minutes for the Regular Meeting of December 6, 2016 SUBMITTED FOR: Consent Agenda Commission Melissa Collins 8616 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4) a non-delegable, statutorily assigned Board duty as defined under RCW minutes. List Attachments: Preliminary Minutes 4/147

5 PRELIMINARY SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT Regular Meeting December 6, 2016 The Regular Meeting was convened by President Tanya Olson at 10:00 a.m. in the Commission Meeting Room. Those attending were Kathleen Vaughn, Secretary; CEO/General Manager Craig Collar; General Counsel Anne Spangler; Assistant General Managers Tom DeBoer, Glenn McPherson; James West, and Brant Wood; Interim Assistant General Manager Mark Oens; other District staff and members of the public; Clerk of the Board Melissa Collins, and Deputy Clerks of the Board Traci Brumbaugh and Lela Wall. Vice President David Aldrich was absent. Due to inclement weather conditions, the time of the Regular Meeting was changed to 10:00 a.m. * Items Taken Out of Order **Non-Agenda Items 1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media. Communications and Marketing Director Julee Cunningham reported on District related media articles, shared a King 5 news clip featuring the District s Modular Energy Storage Architecture 2 (MESA 2) Project, and presented the District s 2017 calendars, which were recently mailed to customers. 2. ONE Project End of Year Update. Enterprise Resource Planning Program Executive Garth Williams presented a final update, stating the ONE Project transitioned out of project mode into daily maintenance and improvements. The project team also transitioned into a stage called hyper-care, focused on resolving prior and post Go-Live defects. Mr. Williams gave an overview of the defects, both resolved and still being worked on, and noted that there were zero critical defects and a low amount overall. The low amount of defects for a project of this size and scale is partly due to a large amount of testing and troubleshooting prior to the project launch. The goal is to resolve the majority of the defects before the end of the year. 3. Read All Meters Monthly (RAMM) Project Final Update. AMI (Advanced Metering Infrastructure) Project Executive, Will Odell provided the RAMM Project final update. The project schedule, budget, scope and the District s communication and public relations efforts to customers were reviewed and discussed. General observations and improvements from the first 45-days of the project were listed. The budget versus actual costs of the implementation and meter reading portions of the project were compared. 5/147

6 Regular Meeting 2 December 6, 2016 The project remains within budget and the ongoing business of monthly meter reading has transitioned to Customer Accounting. Mr. Odell answered questions regarding future contractual cost saving opportunities, off-cycle cost management, and future route optimization. 4. Outage Management System (OMS) End of Year Update. Interim Assistant General Manager Distribution and Engineering Mark Oens reported that the OMS implementation was delayed to the second quarter of 2017, due to the software supplier losing a software patent infringement lawsuit. As a result, shipping and testing were delayed. Mr. Oens assured the Board that staff was testing the revised software to make sure that it continues to meet the District s needs. 5. Other. There were no other updates. B. Recent Audit Activity Senior Manager Controller and Auditor Julia Anderson summarized the audit activities and requirements for the year, which included PUD financial statements, federal grants, Voluntary Employees Beneficiary Association (VEBA), Governmental Accounting Standards Board Statement No. 68 Pension (GASB 68), Federal Emergency Management Agency (FEMA), compliance, and the State of Washington Accountability Audit. Ms. Anderson advised that improvements were made based on the 2015 audit recommendations. C. Business Process Exception Management (BPEM) Project Senior Manager Customer Accounting and Meter Reading Marsha Roetcisoender provided a presentation on the BPEM Project, which is a method to monitor large volume transactions for errors and follow-up; and to allow for a process for distributing exceptions to workgroups for resolution, and identify system-generated exceptions in the billing process. Typical system generated exceptions include zero consumption, implausible meter reads, blocked billing, or maximum estimated meter reads. Prior to the implementation of BPEM, managing and working the exceptions was labor intensive, case configurations had not been optimized, Customer Accounting Representatives had to navigate multiple open sessions and numerous screens, and it was difficult to see if multiple cases were pending on a single account and all cases were handled manually. While the overall process was workable, there were ways to enhance the BPEM functionality with software solutions. 6/147

7 Regular Meeting 3 December 6, 2016 A contract was awarded in July 2016 to consulting company Excimp, for EMMAX software. The SAP supported software does not require additional servers, has been implemented at several utilities worldwide, and was implemented for the District in six weeks. Ms. Roetcisoender discussed the number of BPEM streamlined workflow enhancements provided by the EMMAX software. Billing and auditing functions also saw improvements, to ensure accuracy of the customers bills. A screen shot showing the more detailed layout of a billing case screen was provided. A graph of the Annual Daily Average of Meter Reading Exceptions (October through November 2016) showed that, while there was an expected increase in the volume of meter reading exceptions, the new software enabled the Customer Accounting department to maintain the additional workload. A graph that compared October 2015 average Billing Outsort Case Volume with the same for October 2016 through November 2016 indicated a downward trend in the volume of cases received. Recent Customer Accounting accomplishments included quick adaption to the new software, streamlined workflows for more efficient processing, replacement of the daily paper audit, and new ways found to take advantage of the software functionality. D State and Federal Update Government Relations Director Jessica Matlock introduced Principal Utility Analyst Ian Hunter, who will be working this Legislative Session in Olympia with Ms. Matlock, as well as Legislative Liaison Brenda White and Government Relations Consultant David Arbaugh. Ms. White began the presentation by stating that the Washington State Legislative Regular Session will convene the second Monday of January and adjourn April 23, It was noted that the Governor could call special 30-day session(s), which is anticipated, and could additionally extend the session into the summer to discuss the state budget. The statewide 2016 elections and the impacts, to both the House and Senate, were reviewed. Slides were provided on the 2017 Snohomish County Delegation for the District s service area, and Senate and House key committees were discussed. Mr. Arbaugh provided an overview of the State s biennium budget process and answered related questions from the Board. Aside from the budget, Mr. Arbaugh opined that he does not expect to have a lot of policy work accomplished this year, even though factors like tight chamber majority margins, challenging budget discussions, and the House and Senate power split should provide a large amount of discussion on important policy. Discussion ensued on anticipated issues in Ms. Matlock began the Federal legislative update with an overview; break down of the Senate and House political parties and review of Washington State delegation. President Elect Trump s priorities for the first 100 days of his administration were listed and Ms. Matlock answered questions and discussed the potential impacts of the new administration. 7/147

8 Regular Meeting 4 December 6, 2016 The meeting recessed at 11:43 a.m. RECONVENE REGULAR MEETING The Regular Meeting was reconvened by President Tanya Olson at 1:30 p.m. in the Commission Meeting Room. Those attending were Kathleen Vaughn, Secretary; CEO/General Manager Craig Collar; General Counsel Anne Spangler; Assistant General Managers Tom DeBoer, Glenn McPherson; James West, and Brant Wood; Interim Assistant General Manager Mark Oens; other District staff and members of the public; Clerk of the Board Melissa Collins, and Deputy Clerks of the Board Traci Brumbaugh and Lela Wall. Vice President David Aldrich was absent. Changes to the agenda were as follows: Add item 4A At Places page 4 amended minutes for the Regular Meeting of November 22, 2016, and defer item 6B to the December 20, 2016 meeting. Items Taken Out of Order **Non-Agenda Items 2. RECOGNITION/DECLARATIONS A. Employee of the Month for December Cynthia Paro Cynthia Paro was recognized as Employee of the Month for December. 3. COMMENTS FROM THE PUBLIC There were no comments from the public. 4. CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of November 22, 2016 B. Bid Awards, Professional Services Contracts and Amendments C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers Public Works Contract Award Recommendations Over 25,000: None Formal Bid Award Recommendations 60,000 and Over: Request for Proposal No with CDW Government, LLC Request for Quotation No with Myers Power Produts, Inc. c/o Gore Electric Company, Inc. Professional Services Contract Award Recommendations 200,000 and Over: None 8/147

9 Regular Meeting 5 December 6, 2016 Miscellaneous Contract Award Recommendations 200,000 and Over: Miscellaneous Contract No. CW with City of Seattle Cooperative Purchase Recommendations: None Sole Source Purchase Recommendations: None Emergency Declarations, Purchases and Public Works Contracts: None Purchases Involving Special Facilities or Market Condition Recommendations: None Formal Bid and Contract Amendments: Professional Services Contract No with Van Ness Feldman, LLP Miscellaneous Contract No with Frontier Communications of America Inc. Professional Services Contract No. CW with CLEAResult Consulting, Inc. Miscellaneous Contract No. CW with Stoneway Electrical Supply Co. Public Works Contract No. CW with SRV Construction, Inc. Public Works Contract No. CW with Magnum Power, LLC Miscellaneous Contract No. CW with Neal Lighting Services LLC Contract Acceptance Recommendations: None A motion passed approving Agenda Item 4A Approval of Minutes for the Regular Meeting of November 22, 2016; 4B Bid Awards, Professional Services Contracts and Amendments; and 4C Certification/Ratification and Approval of District Checks and Vouchers. 5. PUBLIC HEARING A. Continue Public Hearing on the 2017 Proposed Budget President Olson opened the public hearing. Assistant General Manager Finance and Treasurer Glenn McPherson stated that, since the introduction of the proposed 2017 budget in October, there are changes for the Board to consider. Reviewed were the four categories of proposed changes to the Electric System: (1) update the expected change in rates from the Bonneville Power Administration (BPA); (2) recognize re-budgeted Generation projects; (3) update operating and maintenance expenditures; and (4) recognize re-budgeted Electric System projects. In response to questions from the Board, Mr. McPherson further distinguished the BPA rate change from the general rate increase, re-budgeting items, and the reduction in benefit costs. Slides illustrated the changes for each budget category, comparing the amounts from the proposed with the final. 9/147

10 Regular Meeting 6 December 6, 2016 The proposed change for the Water System included updated water retail rate assumptions, as the Water System is not in a position to ask for a rate increase until May 1, The retail sales for the Water System were reduced by the amount of the rate increase that would have previously occurred. A slide compared the Water System s proposed and final budgets. Next steps include returning for Board consideration to approve the 2017 Budget on December 20, Commissioner Olson asked about the change in the number of full time equivalents (FTEs), related to monthly meter reading. Mr. McPherson explained that, out of approximately twenty added FTEs, eleven are related to monthly meter reading. Mr. McPherson added that the District s year-end operating reserves are expected to be lower than targeted, due to lower customer consumption. There are still reserves, but the next steps could include taking an additional look at the 2017 budget or requesting authority to use those reserves. Mr. Collar commented that a prior water update correctly forecasted the weather patterns seen, and that there will be more options available for 2017 to make up for the warmer weather. Mr. McPherson said that the last couple of months were very different from budget. A motion passed continuing the public hearing on the proposed 2017 Budget to Tuesday, December 20, 2016, at 1:30 p.m. in the District s Commission Meeting Room at 2320 California Street in Everett. 6. COMMISSION BUSINESS A. Commission Reports There were no Commission reports. B. Consideration of Election of Commission Officers for the Year 2017 This item was deferred to the December 20, 2016 meeting. C. Consideration of a Resolution Establishing the Regular Meeting Dates of the Commission for the Year 2017 A motion passed approving Resolution No establishing the regular meeting dates of the Commission for the year /147

11 Regular Meeting 7 December 6, GOVERNANCE PLANNING A. Governance Planning Calendar A motion passed for the Governance Planning Workshop to be held on December 20, 2016 at 9:00 a.m. B. Proposed 2017 Governance Planning Calendar There were no changes to the proposed 2017 Governance Planning Calendar. ADJOURNMENT There being no further business or discussion to come before the Board, the Regular Meeting of December 6, 2016, adjourned at 2:06 p.m. An audio file of the meeting is on file in the Commission Office and available for review. Approved this 20 th day of December Secretary President Vice President 11/147

12 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 3B TITLE CEO/General Manager's Report of Public Works Contract Award Recommendations; Formal Bid Award Recommendations; Professional Services Contract Award Recommendations; Miscellaneous Contract Award Recommendations; Cooperative Purchase Recommendations; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations SUBMITTED FOR: Consent Agenda Contracts/Purchasing Judy Spence 5539 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description, GP-3(4) non-delegable, statutorily assigned Board duty Contracts and Purchasing. The CEO/General Manager's Report of Public Works Contract Award Recommendations Over 25,000; Formal Bid Award Recommendations 60,000 and Over; Professional Services Contract Award Recommendations 200,000 and Over; Miscellaneous Contract Award Recommendations 200,000 and Over; Cooperative Purchase Recommendations; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations contains the following sections: Public Works Contract Award Recommendations Over 25,000 (Pages 1 2); Request for Proposal No with Faber Construction Corp. Request for Proposal No. Doc with Asplundh Tree Expert Company 12/147

13 Formal Bid Award Recommendations 60,000 and Over; None Professional Services Contract Award Recommendations 200,000 and Over (Page 3); Professional Services Contract No. CW with Serio Consulting, LLC Miscellaneous Contract Award Recommendations 200,000 and Over (Pages 4-5); Request for Proposal No with AT&T (SIP Trunking, ISDN PRI and Metro-E Circuits) and Frontier Communications (Miscellaneous copper circuits) Cooperative Purchase Recommendations; None Sole Source Purchase Recommendations; None Emergency Declarations, Purchases and Public Works Contracts; None Purchases Involving Special Facilities or Market Condition Recommendations; None Formal Bid and Contract Amendments (Pages 6-9); Professional Services Contract No with Arbaugh & Associates, Inc. Miscellaneous Contract No with Open Access Technology International, Inc. (OATI) Miscellaneous Contract No with Frontier Communications of America Inc. Public Works Contract No. CW with Wilson Construction Company Contract Acceptance Recommendations (Page 10); Public Works Contract No. CW with Christenson Electric, Inc. List Attachments: December 20, 2016 Report 13/147 Page 2

14 Public Works Contract Award Recommendation(s) Over 25,000 December 20, 2016 RFP No Operations Building Phase III Improvements No. of Bids Solicited: 12 No. of Bids Received: 6 Project Leader & Phone No.: Kim Lee X8452 Estimate: 2,800, The Contract work will consist of Tenant Improvements to approximately 10,365 square feet of existing space which formerly housed the old Data Center, office space, conference room, and training room. New space will include private and open office areas, conference rooms, kitchenette, lab, testing areas, and support spaces. Tenant improvements for this project will include demolition of existing interior walls, portions of exterior walls and windows, portion of sidewalk, exterior canopy, doors, raised flooring, ceiling, sprinkler revisions, and electrical. It will also include installation of new walls, doors, windows, ceilings, interior and exterior finishes, building seismic improvements, HVAC, plumbing and electrical improvements, fire alarm and sprinkler modifications and low voltage. The project address is th Street SW, Everett, Washington, in Snohomish County. Contractor Subtotal (w/o tax) Award To Faber Construction Corp. 2,550, Orion Construction, Inc. 2,650, Trico Companies, LLC 2,745, Western Ventures Construction, Inc. 2,750, CDK Construction Services, Inc. 2,855, Reynolds General Contracting, Inc. 2,993, Summary Statement: Staff recommends award to Faber Construction Corp., the low evaluated bidder, in the amount of 2,550,000.00, plus tax. In addition, the District has established a contingency allowance of 280, for unforeseen additional work that may be discovered during the progress of the project. With this award, if the District utilizes the contingency allowance, the potential contract value shall be 2,830, Page 1 14/147

15 Public Works Contract Award Recommendation(s) Over 25,000 December 20, 2016 RFP No. Doc O&M and Capital Tree Trimming Dock Crews (Hourly Rate) Transmission and Distribution Line Clearance No. of Bids Solicited: 6 No. of Bids Received: 3 Project Leader & Phone No.: Mike Munsterman 5595 Estimate: 2,200, This contract work will provide all labor, material and equipment necessary to trim, cut, treat, remove, clear, and dispose of trees and brush, as well as perform reseeding work and application of herbicides under and along the District s Distribution and/or Transmission system as directed by the District. The location of the work is within the boundaries of the District s service area, which includes all of Snohomish County (except Hat Island), the Camano Island portion of Island County, and a portion of Skagit County. Contractor Subtotal (tax n/a) Award To Asplundh Tree Expert Company 1,918, Davey Tree Surgery Company 1,976, Wright Tree Service, Inc. 2,090, Summary Statement: Staff recommends award to Asplundh Tree Expert Company, the low evaluated bidder, in the not-to-exceed amount of 1,918,514.00, for the initial year. The bid submitted by Wright Tree Service, Inc. was in the amount of 2,090,745.00; however it contained mathematical errors totaling After correcting the errors, Asplundh remains the low evaluated bidder. The District has the option to renew the contract for one additional year under the same terms and condition other than price, which shall be based on the Consumer Price Index with a three percent cap. Such renewal would be subject to the review and approval of the District s Commission. Page 2 15/147

16 Professional Services Contract Award Recommendation(s) 200,000 And Over December 20, 2016 PSC No. CW ALA / Fixed Assets Project Leader & Phone No.: Sirena Fothergill x8316 Contract Term: 01/09/ /31/2018 Description: Professional Consulting Services to improve SAP Asset Lifecycle Management (ALA) and Fixed Assets functionality Consultant Award To Serio Consulting, LLC 350, Not-to-Exceed Amount (tax n/a) Summary Statement: Staff recommends entering into a contract with Serio Consulting, LLC to provide Professional Consulting Services to the District for SAP Asset Lifecycle Management (ALA) and Fixed Assets functionality. The SAP ALA/Fixed Assets functionality was implemented in Phase 1 of the ONE Project. After Phase 1 implementation, District staff began running into issues due to new SAP functionality that staff could not fix with in-house experts. Earlier this year, staff worked with SAP to perform a Quality Analysis (QA) review of our current set up and processes. The QA review suggested modifications to the software configuration, but the District does not have a resource with the SAP ALA functionality knowledge, so an outside resource is required to assist the District. Serio Consulting, LLC was an expert on the SAP QA Review team and has experience in implementing SAP ALA. Based on their extensive experience and expertise working with and implementing SAP ALA functionality, staff determined that Serio Consulting best meets the District s need to assist the District with implementing improved SAP ALA functionality. Based on the foregoing and on input from SAP on consulting expertise for this issue, a competitive waiver was approved by the AGM of Finance for this work. Therefore, staff recommends award to Serio Consulting, LLC for a not-to-exceed amount of 350, (tax n/a). Page 3 16/147

17 Miscellaneous Contract Award Recommendation(s) 200,000 And Over December 20, 2016 RFP No Telephony Services No. of Bids Solicited: 20 No. of Bids Received: 3 Project Leader & Phone No.: Mridula Sharma x8322 Estimate: 1,450, Description The purpose of this RFP is to consolidate telephony services, obtain better pricing and improved reliability. Currently, the District s telephony services are provided by multiple vendors and such services include voice communications (Session Initiated Protocol (SIP), T1 services (for fax/modem and additional voice capacity), and data and radio services (Metropolitan Ethernet solutions). Not all services can be provided by a single vendor. Therefore we will select more than one vendor for the scope of services. Vendor 3-Year Proposal Amount (w/o tax) 5-Year Proposal Amount (w/o tax) 3-Year Evaluated Amount Award Amount (w/o tax) Award To AT&T (Primary Award 3-Year Contract) 551, N/A 568, , Award To Frontier Communications 568, , , , (Partial Award 1-Year Contract) X5 Solutions, Inc. 339, , , N/A Summary Statement: Staff recommends that the District enter into the necessary agreements with AT&T to provide telephony services including voice communications [Session Initiated Protocol (SIP)], T1 services (for fax/modem and additional voice capacity), and data and radio services (Metropolitan Ethernet solutions) for an initial three-year term with the option to renew for two additional one-year terms upon the same terms and conditions (including pricing); as well as with Frontier Communications to provide copper circuit services for an initial one-year term with the option to renew for additional one-year terms, with rates based on the applicable tariffs. Installation charges for these services have been waived by each vendor. Any proposed renewals following the initial three-year term (for AT&T) and one-year term (for Frontier) will be submitted to the Board for approval at the appropriate time. On June 22, 2016, the District advertised a Request for Proposal (RFP 10096) to consolidate telephony services, obtain better pricing, and improve reliability. The RFP was sent to 20 firms, and staff received three responses to the RFP: AT&T Frontier Communications X5 Solutions, Inc. Page 4 Each response was reviewed based on the evaluation criteria noted in the RFP: ability to meet the District s functional, technical, and other requirements noted in the RFP; supported by District staff; the proposer s past experience with the implementation of similar solutions; the proposer s financial viability; references; and pricing. 17/147

18 Summary Statement (continued): After a thorough evaluation of each proposal, District staff determined that the proposal from AT&T best meets the District s needs with respect to the stated criteria. However, AT&T is unable to provide copper circuit services. These services are currently provided by Frontier and based on evaluation of the Frontier and X5 proposals, staff have determined that the proposal offered by Frontier best meets the needs of the District with respect to these services. As the District s need for such copper circuit services may be reduced during the next several years, staff believes that it is in the District s best interests to contract for these services on a year to year basis so that appropriate adjustments can be made over time. Award of these contracts to AT&T and Frontier will result in an estimated average annual savings of 54% or 204, per year in telephony costs as compared to the current vendor s pricing, as well as additional capacity and reliability improvements. The Award Amount column noted in the table above includes the final proposed cost for telephony services (including usage charges for inbound toll free that is used by customers to report outages) and copper circuit services to be provided by AT&T and Frontier Communications, respectively. The difference between the proposed amount and the evaluated amount is due to mathematical calculation errors which were corrected by District staff. The variance between AT&T s evaluated amount and award amount described above is based on changes in the voice network configuration that occurred during negotiations and the inclusion of usage charges (inbound toll free charges). The changes included centralizing inbound calls to a main location (OPS, EB and Lynnwood), increasing the bandwidth to support improved redundancy, adding disaster recovery capabilities and backup network data services for local offices, and adding services to the Halls Lake location [Halls Lake was not included in the original RFP, but is now being used for the Read All Meters Monthly (RAMM) project]. The award amount for AT&T of 808, is an estimated amount based on fixed monthly costs and usage costs, which means that we will only be billed for services actually used. The variance between Frontier s evaluated amount and the award amount reflects the fact that only a small portion of the services identified in the RFP were awarded to Frontier, as described above. The award amount for Frontier of 30, is also an estimated amount based on fixed monthly costs plus estimated fees and taxes. This award will reflect in Amendment #4 to the existing Frontier Contract No By approval of this bid award recommendation, the Board authorizes the District s CEO/General Manager or his designee to enter into the necessary agreements with AT&T and Frontier Communications, in a form approved by General Counsel, for implementation of the necessary telephony services and consolidation of existing services to A&T for a three-year term and to Frontier for copper circuit services for a one-year term, in accordance with the terms and conditions described above and additional terms and conditions mutually acceptable to the parties. With respect to AT&T, the parties have negotiated a new master agreement providing for all of the services more fully described above. With respect to Frontier, the services will be provided pursuant to a master services agreement which is already in place between the parties. Page 5 18/147

19 Formal Bid and Contract Amendment(s) December 20, 2016 PSC No Lobbyist for State Legislative Issues Contractor/Consultant/Supplier: Arbaugh & Associates, Inc. Project Leader & Phone No.: Jessica Matlock x8031 Amendment No.: 5 Amendment: 85, Original Contract Amount: 54, Present Contract Amount: 300, Original Start/End: 1/1/12 12/31/12 Amendment Amount: 85, Present Start/End: 1/1/12 12/31/16 New Contract Amount: 385, New End Date: 12/31/17 Summary Statement: Staff recommends approval of Amendment No. 5 to modify the scope of work to reflect services needed in the 2017 legislative sessions, increase the contract value by 85,500.00, and extend the contract term to December 31, The amendment is needed to continue state legislative lobbying services. Summary of Amendments: Amendment No. 1 approved on December 31, 2012, increased the contract value by 54, and extended the contract term to December 31, 2013 for continued State lobbyist services. Amendment No. 2 approved on December 6, 2013, increased the contract value by 64, and extended the contract term to December 31, 2014 for continued State lobbyist services. Amendment No. 3 approved by Commission on December 2, 2014, increased the contract value by 64,000.00, extended the contract term to December 31, 2015 for continued State lobbyist services, and made minor updates necessary to comply with recent regulatory requirements. Amendment No. 4 approved by Commission on December 15, 2015, increased the contract value by 64, and extended the contract term to December 31, 2016 for continued State lobbyist services. Page 6 19/147

20 Formal Bid and Contract Amendment(s) December 20, 2016 Misc. Contract No OATI webtrader Agreement (Power and Transmission Management System) Contractor/Consultant/Supplier: Open Access Technology International, Inc. (OATI) Project Leader & Phone No.: Kelly Wallace (Business) Dean Galvez (ITS) Amendment No.: 5 Amendment (Not to Exceed): 70, X1602 X8030 Original Contract Amount: 180, Present Contract Amount: 335, Original Start/End: 6/1/12 5/31/15 Amendment Amount (Not to Exceed): 70, Present Start/End: 6/1/12 12/31/16 New Contract Amount (Not to Exceed): 406, New End Date: 12/31/17 Summary Statement: Staff recommends approval of Amendment No. 5 to extend the term for another year and to increase the contract amount by 70, (Not to Exceed). The dollar amount includes 69, for the annual services cost and 1, for the cost of a data dump. Summary of Amendments: Amendment No.1 dated 5/7/13 utilized the 80 hours of consulting negotiated in the contract for enhancements to increase the functionality of several online display screens so that District staff can group deals together by trait type. Amendment No. 2 dated 11/6/13 creates a transmission usage display screen to automate the District s task of tracking transmission usage by the hour. Amendment No. 3 approved by the Commission on January 21, 2014, extended the term through December 31, 2016 and added 143, to provide a dedicated server at the OATI Data Center to support Power Scheduling s Business Intelligence capabilities and automation of the entry of Trading Paths for District staff. Amendment No. 4 approved by the Commission on October 18, 2016, added 12, to the contract. The District had underestimated the usage of the Tagging Services, therefore, dollars were needed to make up for unplanned usage through the end of the current term. Page 7 20/147

21 Formal Bid and Contract Amendment(s) December 20, 2016 Misc. Contract No SIP (Sessions Initiated Protocol) Trunking Services Contractor/Consultant/Supplier: Frontier Communications of America Inc. Project Leader & Phone No.: Mridula Sharma x8322 Amendment No.: 4 Amendment: 30, Original Contract Amount: 214, Present Contract Amount: 414, Original Start/End: 12/18/12 12/18/15 Amendment Amount: 30, Present Start/End: 12/18/12 6/30/17 New Contract Amount: 444, New End Date: 12/18/17 Summary Statement: Staff recommends approval of Amendment No. 4 to add Copper Circuit Services to the contract, increase the contract value by 30,000.00, and extend the term of the contract to December 18, This amendment is being presented concurrently with the recommendation for the award of RFP 10096, Telephony Services. Based on the evaluation of the RFP, staff determined that Frontier Communications best meets the needs of the District with respect to these services. The Commission awarded this contract on 12/18/2012 to Frontier Communications Northwest, Inc. as the result of a formal competitive bidding process, pursuant to RFP No. 1409, (which was bid for a three-year term). The contract was awarded for an initial three-year term with the option to renew for successive one-year renewals with a not to exceed 3 percent per annum increase over the duration of the agreement. Summary of Amendments: Amendment No. 1 (One time dollar amendment, not exceeding 10%) dated July 29, 2013, increased the funding by 9, for the initial term due to equipment configuration changes. Amendment No. 2 approved be the Commission on December 15, 2015, extended the contract term for an additional year and increased funding by 90, to allow the District to prepare an RFP and award a long-term contract for telephony communication. Amendment No. 3 approved by Commission on December 6, 2016 extended the contract term for an additional six (6) months and increased the contract amount by an 100, to allow District staff to complete negotiations and award a new long-term contract for telephony communication services that meets the District s requirements. Page 8 21/147

22 Formal Bid and Contract Amendment(s) December 20, 2016 PWC No. CW Beverly Park Substation 115kV 230kV Expansion Contractor/Consultant/Supplier: Wilson Construction Company Project Leader & Phone No.: Will Blanchard x-4303 Amendment No.: 1 Amendment: 346, Original Contract Amount: 10,361, Present Contract Amount: 10,361, Original Start/End: 6/24/16 8/31/18 Amendment Amount: 346, Present Start/End: 6/24/16 8/31/18 New Contract Amount: 10,708, New End Date: 9/10/18 Summary Statement: Staff recommends approval of Amendment No. 1 to increase the contract amount by 346, and add 10 calendar days to the contract term. This includes an adjustment for a revision to estimated bid items No. 3 & No. 5; and for additional work required per attached District Field Directives No. 3, 39, 42, 46, 53 & 59. The additional work includes: upgrade control house roof panels; remove concrete obstructions; remove and dispose of septic tank discovered below the foundation; modify control house foundation wall and conduit entry; furnish and install 3 remote mount test switches; and modify fence grounding. Page 9 22/147

23 Contract Acceptance Recommendations(s) December 20, 2016 Accept Contract(s) as complete and grant approval to release Retained fund after full compliance with Departments of Labor and Industries, Revenue and Employment Security. PWC No. CW kV Depreciated Pole Contract Contractor: Christenson Electric, Inc. Start/End: 8/1/16 10/6/16 Evaluator & Phone No.: Daniel Luu X4174 No. of Amendments: 1 Retained Fund: 13, Original Contract Amount: 271, Total Amendment Amount: 3, Final Contract Amount: 274, Summary Statement: None Page 10 23/147

24 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 3C TITLE Consideration of Certification/Ratification and Approval of District Checks and Vouchers SUBMITTED FOR: Consent Agenda General Accounting & Financial Systems Julia Anderson 8027 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4)(B)(2)a non-delegable, statutorily assigned Board duty to approve vouchers for all warrants issued. The attached District checks and vouchers are submitted for the Board's certification, ratification and approval. List Attachments: Voucher Listing 24/147

25 25/147

26 Detailed Disbursement Report Workers' Compensation - Time Loss Report Payment Date Tracking Number Payee Amount 11/8/ VOID - 11/8/ VOID - 11/9/ Brandie B. Canales /9/ Wendy L Canales 1, /9/ Gary L Blalock 1, /15/ Scott D Lindsey 2, /15/ Heather D Eiland /15/ Christina J Thorsen /15/ Michael J Brix /15/ Alan G Burke 2, /15/ Gary L Blalock /15/ Peggy S Rhodes /15/ Diana D Martin 1, /15/ David A Schumann /15/ Bob G Altom 2, /15/ Ronald E Christopher 1, /15/ James J Miller 1, /15/ Ron R Althaus 1, /15/ Department of Labor and Industries 48, /15/ Laurence W Bartholomew 11, /18/ Laurence W Bartholomew 13, /30/ Andrew D Baker /30/ Shawn M Miller /30/ Scott D Lindsey 2, /30/ Diana D Martin 1, /30/ Christina J Thorsen /30/ Gary L Blalock 1, /30/ James J Miller 1, /30/ Bob G Altom 2, /30/ Bob G Altom /30/ Alan G Burke 6, /30/ Ronald E Christopher 1, Sum 111, Page 1 of 1 26/147

27 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 11/28/ NINA P IL'CHUK 11/28/ ANNIE CHOI 11/28/ KONDAUR CAPITAL CORP 11/28/ DANNY PRITCHARD 11/28/ PAUL LUMSDEN 11/28/ MATTHEW MCNUSSEN 11/28/ JAC CONSULTING LLC 11/28/ QUADRANT HOMES 11/28/ HENLEY USA, LLC 11/28/ TRESTLE HOLDINGS, LLC 11/28/ RM HOMES 11/28/ CHRISTINE JUN 11/28/ SPRING HAVEN HOMES, INC. 11/28/ SSHI LLC 11/28/ JIAN LIAO 11/28/ REMI CHABOT 11/28/ TRACY LIDAY 11/28/ Merry C Ramos 11/28/ JAMES LECLAIR 11/28/ VICTOR KLOUZAL 11/28/ CASSANDRA BEDOW 11/28/ Brandie M Lowry 11/28/ LEO WALTERS 11/28/ DEAN SMITH 11/28/ MERRILL A STREET 11/28/ SEASONS LYNNWOOD, LLC 11/28/ SEASONS LYNNWOOD, LLC 11/28/ MARY ANN SADOWSKY 11/28/ SILVIA TEJADA 11/28/ VICTOR ARTURO ZAPATA 11/28/ RUSSELL CANFIELD 11/28/ HENLEY USA, LLC 11/28/ ROBERT CARPENTER 11/28/ M H WICKSTROM 11/28/ SHARON MOLLER 11/28/ ALAINA LEITE 11/28/ Randy W Hart 11/28/ JOSIAH IGWE Page 1 of 14 27/147 Amount

28 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 11/28/ SAGE HUNTERSMITH 11/28/ WILLIAM R CARNEY JR 11/28/ NIKKOLE BROWN 11/28/ ERIKA LEVIN 11/28/ Olympic Brake Supply 11/28/ MERCEDES HILL 11/28/ TROY HALL 11/28/ CHARLES HODSON 11/28/ JAKE O'KEEFFE 11/29/ LYNDA D DEGENSTEIN 11/29/ THUVAN BUI 11/29/ WILEY WHEELER 11/29/ JOSHUA LIGER 11/29/ HANNAH SEIBERT 11/29/ PAUL W BRAJCICH 11/29/ WILLIAMS INVESTMENTS 11/29/ DIEGO ANGUIANO 11/29/ ELTICO TYSON 11/29/ DEVIN DECOSTA 11/29/ ONE STOP PAWN SHOP LLC 11/29/ ROSS E CARBO 11/29/ ARTHUR D JACKSON JR 11/29/ LLOYD D CHEW 11/29/ BICH-QUY CAO 11/29/ JOHN MARRETT 11/29/ MARK ALBERT GOBBLE 11/29/ YASSIN SCHLEICHER 11/29/ ZACHARY JOHNSON 11/29/ TARA MIETZNER 11/29/ STEVE A STRABECK 11/29/ DANIEL D EDDY 11/29/ TERRY L MURRAY 11/29/ MELISSA DUNCAN 11/29/ MARY-ELLEN TATE 11/29/ KNEADS BE 11/29/ KWANG KIM 11/29/ ALICIA CARLOS 11/29/ GLORIA NATIVIDAD 11/29/ CHARLES DEGRAFFENREED 11/29/ CARLOS ROBLES Page 2 of 14 28/147 Amount , ,

29 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 11/29/ NINA PAPP 11/29/ SPRING HAVEN HOMES, INC. 11/29/ ALYSSA BERG 11/29/ ROXANA VALEA 11/29/ COLLEEN ROBERTS 11/29/ EMILIO MEJIA 11/29/ RUSSELL ELDREDGE 11/29/ CHAIN LAKE ESTATES, LLC 11/29/ SHANNA BROWN 11/29/ ANDREW BAS 11/29/ JOSHUA WALKER 11/29/ SKYLINE HOLDINGS LLC 11/29/ BACARI HOMES INC 11/29/ JOHN COURTER 11/29/ MARILEE SCHNEIDER 11/29/ KRISTINE L GALLAGHER 11/29/ JESSICA DUNN 11/29/ HAN NEM 11/29/ JACLYN TEMPLIN 11/29/ VINTAGE AT EVERETT 11/29/ NUSRAT MUZAFFAR 11/29/ GRANDVIEW MANAGEMENT SERVICES LLC 11/29/ FAIRFIELD REFLECTIONS LLC 11/29/ DEVIN SCHLOSSER 11/29/ SYDNEY CALDERON 11/29/ KATELYN HOLGUIN 11/29/ CARRIE POWRIE 11/29/ HAORAN SUN 11/29/ AVINASH TALAKOLA 11/29/ BROCK MARTOF 11/29/ CHRISTIAN NELSON 11/29/ CP III WATERFORD, LLC 11/29/ CP III WATERFORD, LLC 11/29/ SEPANTA NOORI 11/29/ BLUESTEAL LLC 11/29/ AJ SCHMITZ 11/29/ MALIKA BROWNLEE 11/29/ JOHN RUBIO 11/29/ BRAJAN MEZA 11/29/ CHUTHU NGUYEN Page 3 of 14 29/147 Amount

30 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 11/29/ LUCAS WILLET 11/29/ PHILIP N NICHOLS 11/29/ Intercommunity Mercy Waii 11/29/ PATRICIA A MIERS 11/29/ CASTLE PROPERTY GROUP, LLC 11/29/ JAMES DUCUSIN 11/29/ SHAILEE R FLOOD 11/29/ COINOMATIC 11/29/ XAYNALIN SOULISACK 11/29/ Carla Templin 11/29/ P & L Enterprises 11/29/ PEYTON BERGQUIST 11/29/ ASHLEY SODERSTROM 11/29/ JEFFERY BAKER 11/29/ THOMAS MORENO 11/29/ ED GATEWAY APTS 11/29/ Maple Street Ventures 11/29/ JR JOHN BAILEY 11/29/ FRONTIER COMMUNICATIONS # /29/ BRYAN LOCKWOOD 11/29/ TIANRUN ZHANG 11/29/ ELAINE HELLWIG 11/29/ DANNY COOPER 11/29/ PATRICIA BEATTIE 11/29/ POOJA SONI 11/29/ ANDERSON MASSURA 11/29/ DENNIS B LARSEN 11/29/ AARON BRACKETT 11/29/ JEONGSIK YOON 11/29/ NICOLE PULLIAM 11/29/ OLIVIA WALKER 11/29/ VERNA HARBAUGH 11/29/ ALDERBROOKE INVESTMENTS, L.L.C 11/29/ MARCIA LANTING 11/29/ DANA NUNNELLY 11/29/ ASHLIH CARSON 11/29/ RODRIGO MORENO HERRERA 11/29/ WILLIAM SIEH 11/29/ STEPHEN MCKINLEY 11/29/ SCOTT OVIATT Page 4 of 14 30/147 Amount ,

31 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 11/29/ J L NORLIE 11/29/ ROBYN MORIN 11/29/ TELLINA MARAZETTI 11/29/ DONALD C WESTMORELAND 11/29/ SCOTT WATSON 11/29/ KIM BETCHIK 12/01/ LORI A BRANNAN 12/01/ Seventh Day Adventist CH 12/01/ EMILY COUNTRYMAN 12/01/ MARCELLA COOPER 12/01/ NADIA NUR 12/01/ TRAVIS CASSIDY 12/01/ HENLEY USA, LLC 12/01/ DONNA HYCHE 12/01/ MICHAEL KENYON 12/01/ RYAN BUCK 12/01/ Delaney Management 12/01/ HUNTER OLSEN 12/01/ ROB SCHWEINFURTH 12/01/ FERNANDO RANGEL 12/01/ HARRISON HARDWICK 12/01/ CAROLYN D HOEKER 12/01/ DAVID M WILSON 12/01/ LAURA WOLF DE MEJIA 12/01/ Edmonds School District 12/01/ PAULINE L HAMMOND 12/01/ TERRI L MISSLER 12/01/ GARY ARTIM 12/01/ BEN D MAGNUSON 12/01/ Everett Housing Authority 12/01/ ROBIN MCGEE 12/01/ DAN PARKER 12/01/ ED GATEWAY APTS 12/01/ BRIGHTON SQUARE LLC 12/01/ STEVEN FRISBEE 12/01/ GARY T CHOO 12/01/ ROGER F HIGBEE 12/01/ BERNARD E KOOPS 12/01/ WSDOT 12/01/ SHANE S MAHONEY Page 5 of 14 31/147 Amount , , ,

32 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/01/ DARREN WOLF 12/01/ KURT HARTZOG 12/01/ Michael C Bourge 12/01/ DAVID T KOSCHE 12/01/ JAMAL MAHMOUD 12/01/ Trailside Village 12/01/ CHRISTIE ST ONGE 12/01/ Janye L Schaubhut 12/01/ RON F TAIT 12/01/ JOHN D LUNZ 12/01/ JIMMY N MAI 12/01/ Boyden Robinett & Assoc LP 12/01/ MARIA HENRIQUEZ 12/01/ SALLY GLIDDEN 12/01/ JOE W NIEMER 12/01/ Patti Moore 12/01/ ASHLEY WELLNESS CENTER 12/01/ ROBERT MILLER 12/01/ TOSCANA AT CANYON PARK, LLC 12/01/ St. Vincent de Paul 12/01/ BREANNA WALKER 12/01/ RYAN R HARRISON 12/01/ MORE ISRAEL 12/01/ McClellan Ring Co 12/01/ CHRISTINE TYKSINSKI 12/01/ BRITTANY SAWYER 12/02/ PATRICIA A MIERS 12/02/ QUANG NGO 12/02/ BETTINA WATT 12/02/ TERRANCE R MCCORD 12/02/ Michael D Gnozzio 12/02/ DEBRA JOHNSON SIMMONS 12/02/ AMORETTE BRYANT 12/02/ STEVEN DUEKER 12/02/ CHRISTINE E SIMMONS 12/02/ RYAN APPELL 12/02/ PAT MALONEY 12/02/ BENJAMIN CAMPBELL 12/02/ KATHLEEN HORRIGAN 12/02/ JOHN E LANDERS Page 6 of 14 32/147 Amount , ,

33 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/02/ J Scott Riede 12/02/ Cathi Hilton 12/02/ DAVID R BEACH 12/02/ Crystal Jones 12/02/ NICOLE PULLIAM 12/02/ ASHLEY DARLING 12/02/ LEANNE N MATHEWS 12/02/ LINDA METZLER 12/02/ ALENE HOLMBERG 12/02/ KATIANNA HENNINGS 12/02/ Mercy Properties Washington III LLC 12/02/ ELIZABETH KOLB 12/02/ PENG ZHANG 12/02/ ADAM KRUSE 12/02/ ELIZABETH VWICH 12/02/ THOMAS D MISNER 12/02/ VINTAGE AT EVERETT 12/02/ HERBERT GANDY 12/02/ DAVID OGREN 12/02/ CARL RAUTENBERG 12/02/ Mercy Housing Washington 12/02/ KARL HOFMANN 12/02/ Edmonds School District 12/02/ Jose A Montiel 12/02/ GRACIE'S PLACE VENTURE, LLC 12/02/ SUZANNE EKLUND-GRAYUM 12/02/ SSHI LLC 12/02/ DAVID RYGH 12/02/ DIANE VAUX 12/02/ FANNIE MAE 12/02/ BREANNA WALKER 12/02/ LUIS MARTINEZ AVILA 12/02/ Susan G Van Reenen 12/02/ CARL R ELLIOTT 12/02/ Colby Square Apts 12/02/ Housing Authority Sno Co 12/02/ Reed D Varney 12/02/ PARTNERS LLC 12/02/ JAMIE LORENZEN 12/02/ MPM GROUP LLC Page 7 of 14 33/147 Amount ,

34 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/02/ JAC CONSULTING LLC 12/02/ JUDGE & ASSOCIATES 12/02/ RANDALL HART 12/02/ TRESTLE HOLDINGS, LLC 12/02/ NW HOME RENOVATORS, LLC 12/02/ GORDON REYKDAL 12/02/ TALON LANDING PARTNERS, LLC 12/02/ LENNAR NORTHWEST INC 12/02/ NICHOLAS LEBLANC 12/02/ RMH LLC 12/02/ PACIFIC HEIGHTS HOMES 12/02/ SSHI LLC 12/02/ JUDY DAMBROSIO 12/02/ FRANCIS LILLENESS 12/02/ TERRY FEIN 12/02/ ROBERT REED 12/05/ Delaney Management 12/05/ KENDALL L OST 12/05/ YOSHIYUKI KOBAYASHI 12/05/ JANSON CONS 12/05/ FAIRFIELD CRYSTAL COVE LLC 12/05/ NICHOLE PETERSON 12/05/ HALVORSON CONSTRUCTION GROUP LLC 12/05/ GEOFFREY FRANGER 12/05/ DUSTIN W MOSS 12/05/ KATIE M COLPITTS 12/05/ ROBERT REED 12/05/ NANCY K METCALFE 12/05/ Everett Housing Authority 12/05/ JAMES WOMACK 12/05/ CEDRA DUFLON-HEIDE 12/05/ JACK V CARTER 12/05/ KEYSTONE RENTALS AND REAL ESTAT 12/05/ DEANNA M WEST 12/05/ HERBERT K HULSE III 12/05/ C P Blanchard 12/05/ HARDIP GILL 12/05/ Gary W Maik 12/05/ SONCHAE YI 12/05/ RIA ABELON Page 8 of 14 34/147 Amount

35 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/05/ EDDIE STINSON 12/05/ MUKILTEO WTR & WASTEWTR HOLLY DR LS 12/05/ STIGER PROPERTIES LLC 12/06/ KRISTINE LITTLE 12/06/ ASHLEY CHAVIS 12/06/ LEE HINDS 12/06/ MICHAEL GRINDE 12/06/ SEAN BOTES 12/06/ THERON M JOHNSON 12/06/ TALON LANDING PARTNERS, LLC 12/06/ NORMAN D BURKE 12/06/ D'Aga/Mgm LLC 12/06/ SARAH CRAWFORD 12/06/ ANTHONY CARLUCCI 12/06/ HERB COLLINS 12/06/ CHURCH OF JESUS CHRIST OF LATTER DAY SAI 12/06/ Intercommunity Mercy Waii 12/06/ CLARENCE R PRESTON 12/06/ RONALD L BARNES 12/06/ REBECCAH LANDERHOLM 12/06/ MICHAEL ROOT 12/06/ JEFFREY W MILLER 12/06/ TESSIE HURSHMAN 12/06/ JACQULYN MARTIN 12/06/ WINDSOUND HOMEOWNERS ASSC 12/06/ HILLCREST VILLA APTS 12/06/ JEANNIE LANGHAM 12/06/ TAKAKO KONKLE 12/06/ DESERT SUN TANNING 12/06/ JEREMIAH ASSMAN 12/06/ JANE NEJBAUER 12/06/ C ROY MILLER 12/06/ TAMMY M CLARK 12/06/ KELVIN LEE 12/06/ LEON BROWNING 12/06/ MEGAN HODGE 12/06/ CHENOA HENRY 12/06/ Everett School District 12/06/ BILL MUELLER 12/06/ LENNAR NORTHWEST INC Page 9 of 14 35/147 Amount

36 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/06/ RYAN OZOSKY 12/06/ CODY ROMER 12/06/ RAZOR INVESTMENTS LLC 12/06/ Janye L Schaubhut 12/06/ Andrea J May 12/06/ DONNA GOLUB 12/06/ DYLAN BOYCE 12/06/ DEBRA HERTEL 12/06/ Jeanne Cabral 12/06/ LAURENT A GIRARD 12/06/ RAHMA RAGE 12/06/ CHELSEY BERRY 12/06/ REINALDO CESTERO 12/06/ SILVER LAKE CENTER LLC 12/06/ ASHLEY NICHOLS 12/06/ MARCO TORRES 12/06/ KAREN A LATON 12/06/ MOLLY UNDERWOOD 12/06/ JOSEPH CHU 12/06/ NICOLE ZESCH 12/06/ DON OLSBY 12/06/ INVERSIONES IMPERIO LLC 12/06/ SHERI L CLARKE 12/06/ Andrea M Provenzano 12/06/ DAVID CLARK 12/06/ KILLASHANDRA BARNETT 12/06/ EDWARD SICKELS 12/06/ SCOTT CASHMORE 12/06/ PULTE GROUP 12/06/ WALKER CONSTRUCTION NW INC 12/06/ KLK PROPERTIES, LLC 12/06/ LENNAR NORTHWEST INC 12/06/ ADERA FIKREMICHAEL 12/06/ COLTON STARKENBURG 12/06/ ACME HOMES LLC 12/06/ NHAT PHAN 12/06/ TALIA TEAL 12/06/ MATTHEW SENATORE 12/06/ BOEING EMPLOYEES CREDIT UNION 12/06/ JUSTIN DEANE Page 10 of 14 36/147 Amount

37 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/06/ ACME HOMES LLC 12/06/ MGP X PROPERTIES LLC 12/06/ STRATA FULTON LLC 12/06/ ZACHARY SWETT 12/07/ Eugene Dechant 12/07/ Keiko Matsushita 12/07/ LAURIE FRANKLIN 12/07/ JASMIN RAVENEAU 12/07/ ETTA WILSON 12/07/ SAMIRITA PEREZ 12/07/ BENJAMIN MILLER 12/07/ MARIE THOMAS 12/07/ IMPACT DEVELOPERS INC 12/07/ JASON POLLASTRINI 12/07/ GLENN C RANTON 12/07/ Stevens Group 12/07/ JEFFREY DEBOER 12/07/ Joan C Burke 12/07/ VIRGINIA GROESBECK 12/07/ JOSE FABIAN 12/07/ Marrowstone Management LLC 12/07/ MONICA HASELRIG 12/07/ JANET RICHARDS 12/07/ SHERI SHIRK 12/07/ MARK COHEN 12/07/ DOUGLAS E GREIERT 12/07/ TABETHA BOLANOS 12/07/ ROBERTA K BLAKE 12/07/ ROGER T DITTO 12/07/ DAN PETERSON 12/07/ NICOLE CORSO 12/07/ MICHAEL GRINDE 12/07/ GARY B JOHNSON 12/07/ NICOLE SELSTEAD 12/07/ DAMIAN CASEY 12/07/ SANDA HOMES 12/07/ Marrowstone Management LLC 12/07/ Marrowstone Management LLC 12/07/ Marrowstone Management LLC 12/07/ KERI RICKARD Page 11 of 14 37/147 Amount , , , , , ,

38 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/07/ BRIANN HIMPLE 12/07/ DENNIS TASSIN 12/07/ JOSHUA BEZANSON 12/07/ HIERCORD CONSULTING, LLC 12/07/ CYLENA KIGER 12/07/ NINA CLOUSER 12/07/ STEVEN THOMPSEN 12/07/ Anthony M Turriziani 12/07/ JOANNA D CONVEY 12/07/ Marrowstone Management LLC 12/07/ Marrowstone Management LLC 12/07/ DONNA CRIDER 12/07/ ZACHARY BARRETT 12/07/ Harbour Group Properties 12/07/ JULIE C PRENTICE 12/08/ LEO HEALY 12/08/ LORENIA GONZALES LOPEZ 12/08/ MOHAMMED AL JUBOURI 12/08/ Andy F Hanson 12/08/ Katie S Weisbrod 12/08/ MARK A MAINS 12/08/ SANGHYEOB LEE 12/08/ FOREST PARK ESTATES 12/08/ BRITTANY KACZMAREK 12/08/ GROSET CONSTRUCTION 12/08/ RONALD CHRISTY 12/08/ TAYLOR ARNEY 12/08/ CHLOE HIGGINS 12/08/ KAREN TINDALL 12/08/ MICHAEL LASALATA 12/08/ WEAVER REAL ESTATE GROUP 12/08/ EXPRESS CORPORATE HOUSING 12/08/ LENNAR NORTHWEST INC 12/08/ E IZZARD 12/08/ G A POWELL CONSTRUCTION INC 12/08/ COLDWELL BANKER BAIN 12/08/ Clearwire Wireless 12/08/ PERE COUTEE 12/08/ ALISHA MASON 12/08/ Terra J Walker Page 12 of 14 38/147 Amount ,

39 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/08/ Thomas Ralston 12/08/ DYLON LIKKEL 12/08/ PETER FUCCELLO 12/08/ MARCUS SULSKIS 12/08/ ANGELICA STARKEY 12/08/ Jim Arnesen 12/08/ Freeman Staffing Inc 12/08/ Jairo J Medina 12/08/ Emerald Industrial Center LLC 12/08/ STEVE OWENS 12/08/ Ty Marchand 12/09/ ALBERT A THORP 12/09/ Bryan L Anaya 12/09/ HORIZON SQUARE 12/09/ KEITH BLAKESLEE 12/09/ II ROBERT FORD 12/09/ JARILEN PRESTON 12/09/ KYLE SARGENT 12/09/ Geri T Harris 12/09/ JOSEPH OCHS 12/09/ CARPE NOCTEM LLC 12/09/ JULIE M WENTZEL 12/09/ EARL M PETERSEN 12/09/ BRIAN EPPS 12/09/ ASHLEY ALEXANDER 12/09/ Jennifer L Zahariez 12/09/ WILLIAM BERGSTROM 12/09/ MARCIA L NELSON 12/09/ DANIEL J SCHMIDT 12/09/ Wendy Hutchins 12/09/ DANIEL DUNPHY 12/09/ KATHLEEN R TAYLOR 12/09/ EDWARD BOYLE 12/09/ SHERYL RODRIGUEZ 12/09/ MONROE MARTIAL ARTS LLC 12/09/ KAYLE MCCRARY 12/09/ HENLEY USA, LLC 12/09/ THOMAS HOFSETH 12/09/ ESTATE OF PHILIP HOWARD 12/09/ HENLEY USA, LLC Page 13 of 14 39/147 Amount

40 Detailed Disbursement Report Revolving Fund - Customer Refunds Payment Date Tracking Number Payee 12/09/ JUSTIN TAVANI 12/09/ ANTHONY GREENE Amount Sum , Page 14 of 14 40/147

41 Detailed Disbursement Report Revolving Fund - Petty Cash Reimbursements and Other Payment Date Tracking Number Payee 11/30/ JANA EASTERLING AND/OR RONALD MILL 12/05/ KEITH ELLISON 12/05/ VICKI DORSEY 12/05/ JANET ANDERSON 12/05/ SABRINA CHAMBLISS 12/09/ JANET ANDERSON 12/09/ JANA EASTERLING AND/OR RONALD MILL 12/09/ IRMA DREGHORN Amount Sum 1, , , , , Page 1 of 1 41/147

42 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 11/28/ JANET JONES 11/28/ ALS USA CORP 11/28/ ARLINGTON SCHOOL DISTRICT #16 11/28/ AUTOMATED ENERGY INC 11/28/ CCH INCORPORATED 11/28/ CDW GOVERNMENT INC 11/28/ COMMONWEALTH ASSOCIATES INC 11/28/ DAVEY TREE SURGERY COMPANY 11/28/ EDWIN C DWYER CO 11/28/ EMEDCO INC 11/28/ ENTERPRISE RENT-A-CAR 11/28/ FASTENAL COMPANY 11/28/ FIDALGO PAVING & CONSTRUCTION LLC 11/28/ GARDA CL NORTHWEST INC 11/28/ HALO BRANDED SOLUTIONS INC 11/28/ HB JAEGER COMPANY LLC 11/28/ HD SUPPLY WATERWORKS 11/28/ HOWARD INDUSTRIES INC 11/28/ INTERCONTINENTAL EXCHANGE HOLDINGS 11/28/ INTERWEST CONSTRUCTION INC 11/28/ LONGS LANDSCAPE LLC 11/28/ MERCURY FITNESS REPAIR INC 11/28/ MYCOFF FRY & PROUSE LLC 11/28/ NETWORKFLEET INC 11/28/ NORTHWEST ENERGY EFFICIENCY COUNCIL 11/28/ NORTHWEST POWERPOOL 11/28/ PINNACLE TOWERS INC 11/28/ REXEL INC 11/28/ R2 RESOURCE CONSULTANTS INC 11/28/ R M YOUNG COMANY 11/28/ ROY ROBINSON INC 11/28/ R W BECK GROUP INC 11/28/ RWC INTERNATIONAL LTD 11/28/ S & S TOOL & SUPPLY INC 11/28/ THE SEATTLE TIMES 11/28/ SECURE PACIFIC CORPORATION 11/28/ SOUND SECURITY INC 11/28/ SRV CONSTRUCTION INC 11/28/ STAPLES CONTRACT & COMMERCIAL INC 11/28/ STAR RENTALS INC Page 1 of 16 42/147 Amount 3, , , , , , , , , , , , , , , , , , , , , , , , , ,078.24

43 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 11/28/ STELLAR INDUSTRIAL SUPPLY 11/28/ SUBURBAN PROPANE 11/28/ SUNRISE TECHNOLOGIES INC 11/28/ THE PARTS STORE SOUTH 11/28/ THOMSON REUTERS MARKETS LLC 11/28/ THYSSENKRUPP ELEVATOR CORP 11/28/ USIC LOCATING SERVICES INC 11/28/ OLDCASTLE PRECAST UTILITY VAULT 11/28/ VALLEY FREIGHTLINER INC 11/28/ VALMONT INDUSTRIES INC 11/28/ WESCO DISTRIBUTION INC 11/28/ WETLAND RESOURCES INC 11/28/ WHITE CAP CONSTRUCTION SUPPLY INC 11/28/ WILLIAMS SCOTSMAN INC 11/28/ WORKSPACE DEVELOPMENT LLC 11/28/ WW GRAINGER INC 11/28/ ZONES INC 11/28/ ALL BATTERY SALES AND SERVICE 11/28/ ALLIED ELECTRONICS INC 11/28/ ANDERSON HUNTER LAW FIRM TRUST ACCO 11/28/ CHAMPION BOLT & SUPPLY INC 11/28/ CHOICE POWER LP 11/28/ CONTRACT HARDWARE INC 11/28/ GREENSHIELDS INDUSTRIAL SUPPLY INC 11/28/ CUZ CONCRETE PRODUCTS INC 11/28/ CYAN STRATEGIES LLC 11/28/ DESIGNER DECAL INC 11/28/ EASTSIDE SAW AND SALES INC 11/28/ EDGE ANALYTICAL INC 11/28/ EVERETT SAFE AND LOCK INC 11/28/ RYAN SCOTT FELTON 11/28/ FENCE SYSTEMS NW INC 11/28/ GENERAL PACIFIC INC 11/28/ THOMAS DUNKLEE 11/28/ GREYWARE AUTOMATION PRODUCTS INC 11/28/ LFS INC 11/28/ BRIAN DAVIS ENTERPRISES INC 11/28/ MERIDIAN ENVIRONMENTAL INC 11/28/ MFR LAW GROUP PLLC 11/28/ THOMAS D MORTIMER JR Page 2 of 16 43/147 Amount 3, , , , , , , , , , , , , , , , , , ,

44 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 11/28/ NORTHWEST HANDLING SYSTEMS INC 11/28/ NW PUBLIC POWER ASSOC 11/28/ OMICRON ELECTRONICS CORP USA 11/28/ OPEN ACCESS TECHNOLOGY INTL INC 11/28/ RALPHS CONCRETE PUMPING INC 11/28/ RECORDXPRESS OF CALIFORNIA LLC 11/28/ RENTAL HOUSING ASSN OF PUGET SOUND 11/28/ RICOH USA INC 11/28/ ROHLINGER ENTERPRISES INC 11/28/ RUBATINO REFUSE REMOVAL 11/28/ SEATTLE AUTOMOTIVE DISTRIBUTING INC 11/28/ SMART GRID CONSUMER COLLABORATIVE 11/28/ SNOHOMISH COUNTY 11/28/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI 11/28/ SOUND SAFETY PRODUCTS CO INC 11/28/ TECH PRODUCTS INC 11/28/ UNITED REFRIGERATION INC 11/28/ US HEALTHWORKS MEDICAL GROUP OF WA 11/28/ WALTER E NELSON CO OF WESTERN WA 11/28/ WETHERHOLT AND ASSOCIATES INC 11/28/ WYNNE AND SONS INC 11/28/ LUKAS NACE GUTIERREZ & SACHS LLP 11/28/ GREEN HOUSE DATA INC 11/28/ GRAYBAR ELECTRIC CO INC 11/28/ ALTEC INDUSTRIES INC 11/28/ ANIXTER INC 11/28/ SABEY CORP 11/28/ ICEBRG INC 11/28/ SEMAPHORE CORP 11/28/ ADVANTAGE STAFFING GROUP LLC 11/28/ MC DEAN INC 11/28/ TRU-CHECK INC 11/28/ DC BACH COMPANY 11/28/ HEWLETT PACKARD CO 11/29/ ASSOCIATED PETROLEUM PRODUCTS INC 11/29/ AT&T MOBILITY II LLC 11/29/ BARRON HEATING AND AIR CONDITIONING 11/29/ CEMEX INC 11/29/ CERIUM NETWORKS INC 11/29/ COMCAST CORPORATION Page 3 of 16 44/147 Amount 9, , , , , , , , , , , , , , , , , , , , , , , , , , , ,

45 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 11/29/ CRYSTAL SPRINGS WATER CO 11/29/ CITY OF EVERETT 11/29/ FRONTIER COMMUNICATIONS NORTHWEST I 11/29/ GLASS BY LUND INC 11/29/ HULTZ BHU ENGINEERS INC 11/29/ ICIMS COM 11/29/ INTELLIGENT CONTROLS INC 11/29/ ITRON INC 11/29/ JENNINGS STROUSS AND SALMON PLC 11/29/ KAMAN INDUSTRIAL TECHNOLOGIES 11/29/ KUBRA DATA TRANSFER LTD 11/29/ LAKE STEVENS SCHOOL DIST NO 1 11/29/ MICHAEL AND ALEXANDER PLLC 11/29/ MT INDEX RIVERSITES COMMUNITY CLUB 11/29/ OFFICE DEPOT INC 11/29/ CITY OF ARLINGTON 11/29/ SOUND PUBLISHING INC 11/29/ PRATT DAY & STRATTON PLLC 11/29/ SUBURBAN PROPANE 11/29/ SUPERIOR GLASS INSTALLATIONS INC 11/29/ TACOMA SCREW PRODUCTS INC 11/29/ VERIZON WIRELESS 11/29/ VIAMEDIA INC 11/29/ WASHINGTON ENERGY SVCS CO 11/29/ WETLAND RESOURCES INC 11/29/ WW GRAINGER INC 11/29/ ANDERSON HUNTER LAW FIRM TRUST ACCO 11/29/ BENEFITFOCUSCOM INC 11/29/ EDS MCDOUGALL LLC 11/29/ EVERETT SAFE AND LOCK INC 11/29/ GEO ENGINEERS INC 11/29/ RIVERSIDE SAND & GRAVEL 11/29/ RUBATINO REFUSE REMOVAL 11/29/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI 11/29/ STOEL RIVES LLP 11/29/ TALASAEA CONSULTANTS INC 11/29/ ARCOS LLC 11/29/ BLACKHAWK ENGAGEMENT SOLUTIONS (MD) 11/29/ ALTEC INDUSTRIES INC 11/29/ CAPITAL ARCHITECTS GROUP PC Page 4 of 16 45/147 Amount , , , , , , , , , , , , , , , , , , , , , , , ,758.50

46 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 11/29/ JACKAREN CONSULTING LLC 11/29/ YRC INC 11/29/ AMERICAN CRAWLSPACE & PEST SERVICES 11/29/ ROD HOPKINS 11/29/ BREEZE FREE INC 11/29/ BRENNAN HEATING & AC LLC 11/29/ UNIFIED ENERGY 11/29/ GREG GEORGE 11/29/ C M HEATING INC 11/29/ EINAR JOHANSON INSULATION & GLASS 11/29/ GB ENTERPRISES OF WASHINGTON LLC 11/29/ G&S HEATING COOLING & ELECTRICAL 11/29/ INDUSTRIAL LIGHT AND ENERGY INC 11/29/ MCFARLAND HEATING & AIR 11/29/ METRO GROUP LLC 11/29/ MM COMFORT SYSTEMS 11/29/ MUKILTEO SCHOOL DISTRICT #6 11/29/ SNOHOMISH HEATING & AIR CONDITIONIN 11/29/ STILLY RIVER MECHANICAL 11/29/ TRU-VIEW GLASS AND WINDOWS INC 11/29/ JACQUES CONSTRUCTION INC 11/30/ NEW CINGULAR WIRELESS PCS LLC 11/30/ ALPINE COMMERCIAL TIRE 11/30/ BINDER PRODUCTS INC 11/30/ COMCAST CORPORATION 11/30/ DLT SOLUTIONS LLC 11/30/ EVERGREEN SECURITY INC 11/30/ JACO ANALYTICAL LABORATORY INC 11/30/ MCFARLAND CASCADE HOLDINGS 11/30/ MICHELS CORP MICHELS POWER DIVISION 11/30/ ORRICK HERRINGTON & SUTCLIFFE 11/30/ R2 RESOURCE CONSULTANTS INC 11/30/ RWC INTERNATIONAL LTD 11/30/ SAP INDUSTRIES INC 11/30/ SISKUN POWER EQUIPMENT 11/30/ STAPLES CONTRACT & COMMERCIAL INC 11/30/ TESSCO INCORPORATED 11/30/ WESTERN WASHINGTON UNIVERSITY 11/30/ WW GRAINGER INC 11/30/ AARD PEST CONTROL INC Page 5 of 16 46/147 Amount 18, , , , , , , , , , , , , , , , , , , , , , , ,

47 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 11/30/ ALLIED ELECTRONICS INC 11/30/ CHAMPION BOLT & SUPPLY INC 11/30/ JEFFREY HATHAWAY 11/30/ FENCE SYSTEMS NW INC 11/30/ GENERAL PACIFIC INC 11/30/ RONALD J KING 11/30/ SOUND SAFETY PRODUCTS CO INC 11/30/ TECH PRODUCTS INC 11/30/ TRIANGLE ASSOCIATES INC 11/30/ CONSOLIDATED ELEC DIST INC 11/30/ GRAYBAR ELECTRIC CO INC 11/30/ HEWLETT PACKARD CO 12/01/ NEW CINGULAR WIRELESS PCS LLC 12/01/ LEONARDO VERGARA 12/01/ DARRYL THOMAS 12/01/ BICKFORD MOTORS INC 12/01/ CONSOLIDATED ELECTRICAL DISTRIBUTOR 12/01/ DOBLE ENGINEERING CO 12/01/ DUNN LUMBER CO 12/01/ FRONTIER COMMUNICATIONS NORTHWEST I 12/01/ HULTZ BHU ENGINEERS INC 12/01/ INTERGRAPH CORPORATION 12/01/ INTERWEST CONSTRUCTION INC 12/01/ MANTA TEST SYSTEMS INC 12/01/ MNS CORP 12/01/ MCLOUGHLIN & EARDLEY GROUP INC 12/01/ MOTOR TRUCKS INC 12/01/ NELSON DISTRIBUTING INC 12/01/ NORTH COAST ELECTRIC COMPANY 12/01/ OFFICE DEPOT INC 12/01/ ON-HOLD CONCEPTS INC 12/01/ PACIFIC TOPSOILS INC 12/01/ PITNEY BOWES PRESORT SERVICES INC 12/01/ RWC INTERNATIONAL LTD 12/01/ STELLAR INDUSTRIAL SUPPLY 12/01/ STONEWAY ELECTRIC SUPPLY CO 12/01/ TERRACON CONSULTANTS INC 12/01/ TESSCO INCORPORATED 12/01/ THE PARTS STORE SOUTH 12/01/ VAN NESS FELDMAN LLP Page 6 of 16 47/147 Amount , , , , , , , , , , , , , , , ,804.00

48 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/01/ VELTON ROSS 12/01/ WAGNER SMITH EQUIPMENT CO 12/01/ WESCO AUTOBODY SUPPLY INC 12/01/ WEST INTERACTIVE SERVICES CORP INC 12/01/ WW GRAINGER INC 12/01/ ALL BATTERY SALES AND SERVICE 12/01/ ALLIED ELECTRONICS INC 12/01/ BILL'S BLUEPRINT INC 12/01/ BNSF RAILWAY COMPANY 12/01/ HARRIGAN LEYH FARMER & THOMSEN LLP 12/01/ CHAMPION BOLT & SUPPLY INC 12/01/ CUZ CONCRETE PRODUCTS INC 12/01/ GENERAL PACIFIC INC 12/01/ KEMP WEST INC 12/01/ LI IMMIGRATION LAW PLLC 12/01/ BRIAN DAVIS ENTERPRISES INC 12/01/ MCLARENS YOUNG INTERNATIONAL INC 12/01/ NESCO LLC 12/01/ NORTHWEST HANDLING SYSTEMS INC 12/01/ NORTH SOUND HOSE & FITTINGS INC 12/01/ PACIFIC CABLE CONST INC 12/01/ RUBATINO REFUSE REMOVAL 12/01/ SAFELITE FULFILLMENT INC 12/01/ SOUND SAFETY PRODUCTS CO INC 12/01/ SUMMIT SAFETY SHOES 12/01/ TECHNICAL SALES & FIELD SERVICES NW 12/01/ STATE OF WASHINGTON 12/01/ WATERISAC 12/01/ GRAYBAR ELECTRIC CO INC 12/01/ ANIXTER INC 12/01/ ADVANTAGE STAFFING GROUP LLC 12/01/ ROADPOST USA INC 12/01/ HEWLETT PACKARD CO 12/02/ AT&T 12/02/ BICKFORD MOTORS INC 12/02/ THE CADMUS GROUP INC 12/02/ COMPVIEW INC 12/02/ CONSOLIDATED ELECTRICAL DISTRIBUTOR 12/02/ HOWARD INDUSTRIES INC 12/02/ MARYSVILLE SCHOOL DISTRICT #25 Page 7 of 16 48/147 Amount , , , , , , , , , , , , , , , , , , , , , , ,429.44

49 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/02/ MAYES TESTING ENGINEERS INC 12/02/ MOBILE MINI INC 12/02/ MOTOR TRUCKS INC 12/02/ N C MACHINERY COMPANY 12/02/ REXEL INC 12/02/ RACEWAYS TECHNOLOGY AND MFG 12/02/ ROY ROBINSON INC 12/02/ RWC INTERNATIONAL LTD 12/02/ S & S TOOL & SUPPLY INC 12/02/ SNOHOMISH COUNTY 12/02/ SNOHOMISH COUNTY 12/02/ SNOHOMISH COUNTY 12/02/ SNOHOMISH COUNTY 12/02/ SOUND PUBLISHING INC 12/02/ STAPLES CONTRACT & COMMERCIAL INC 12/02/ STELLAR INDUSTRIAL SUPPLY 12/02/ THE PARTS STORE SOUTH 12/02/ OLDCASTLE PRECAST UTILITY VAULT 12/02/ WEST PUBLISHING CORPORATION 12/02/ DEPARTMENT OF HEALTH 12/02/ DUNLAP INDUSTRIAL HARDWARE 12/02/ EDGE ANALYTICAL INC 12/02/ EGELSTAD INC 12/02/ EVERETT SAFE AND LOCK INC 12/02/ RYAN SCOTT FELTON 12/02/ GENERAL PACIFIC INC 12/02/ RABANCO LTD 12/02/ RIVERSIDE SAND & GRAVEL 12/02/ ROHLINGER ENTERPRISES INC 12/02/ SEACOMM ERECTORS INC 12/02/ SEATTLE AUTOMOTIVE DISTRIBUTING INC 12/02/ STATE OF WASHINGTON 12/02/ STATE OF WASHINGTON 12/02/ STATE OF WASHINGTON 12/02/ WESTON SERVICES INC 12/02/ THE SHERWIN-WILLIAMS CO 12/02/ PILCHUCK EQUIPMENT RENTALS AND SALE 12/02/ SIRIUS COMPUTER SOLUTIONS INC 12/02/ SHANNON & WILSON INC 12/02/ EXCELERATE SYSTEMS LLC Page 8 of 16 49/147 Amount 8, , , , , , , , , , , , , , , , , , ,736.80

50 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/02/ TRANSCAT INC 12/02/ MERIDIAN VILLAGE ASSOCIATES 12/02/ THE BOEING COMPANY 12/05/ HOME DEVELOPMENT COMPANY, INC 12/05/ AECOM TECHNICAL SERVICES INC 12/05/ ALDERWOOD WATER & WASTEWATER DISTRI 12/05/ AMERICAN REPROGRAPHICS COMPANY LLC 12/05/ APERTA 12/05/ ARLINGTON SCHOOL DISTRICT #16 12/05/ ASPLUNDH TREE EXPERT CO 12/05/ BINDER PRODUCTS INC 12/05/ CDW GOVERNMENT INC 12/05/ COMCAST CORPORATION 12/05/ CONTRADO BBH HOLDINGS LLC 12/05/ C THORNTON LIGHTING 12/05/ DAVEY TREE SURGERY COMPANY 12/05/ DAVID EVANS AND ASSOCIATES INC 12/05/ DEX MEDIA INC 12/05/ DIVERSIFIED INSPECTIONS ITL INC 12/05/ DAVID P DUZENACK 12/05/ CITY OF EDMONDS 12/05/ EDWIN C DWYER CO 12/05/ ENERGY NEWSDATA 12/05/ CITY OF EVERETT 12/05/ EXPRESS IMAGING SYSTEMS LLC 12/05/ FRONTIER COMMUNICATIONS NORTHWEST I 12/05/ HB JAEGER COMPANY LLC 12/05/ HOWARD INDUSTRIES INC 12/05/ CITY OF MARYSVILLE 12/05/ MCFARLAND CASCADE HOLDINGS 12/05/ MOTOR TRUCKS INC 12/05/ NORTH COAST ELECTRIC COMPANY 12/05/ PETROCARD INC 12/05/ REXEL INC 12/05/ PNWS-AWWA 12/05/ RWC INTERNATIONAL LTD 12/05/ RYERSON STEEL CO 12/05/ STAPLES CONTRACT & COMMERCIAL INC 12/05/ SYNERGY SYSTEMS 12/05/ TALLEY COMMUNICATIONS CORP Page 9 of 16 50/147 Amount , , , , , , , , , , , , , , , , , , , , , , ,408.09

51 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/05/ TESSCO INCORPORATED 12/05/ THE PARTS STORE SOUTH 12/05/ UNITED PARCEL SERVICE 12/05/ VALLEY FREIGHTLINER INC 12/05/ WESCO DISTRIBUTION INC 12/05/ WINGFOOT COMMERCIAL TIRE 12/05/ WW GRAINGER INC 12/05/ INDUSTRIAL SOFTWARE SOLUTIONS 12/05/ AARD PEST CONTROL INC 12/05/ ALL BATTERY SALES AND SERVICE 12/05/ ALLIED ELECTRONICS INC 12/05/ ARONSON SECURITY GROUP INC 12/05/ BACKGROUND INFORMATION SERVICES INC 12/05/ CHAMPION BOLT & SUPPLY INC 12/05/ CORY STEVENS 12/05/ DESIGNER DECAL INC 12/05/ DUNLAP INDUSTRIAL HARDWARE 12/05/ EDGE ANALYTICAL INC 12/05/ EDS MCDOUGALL LLC 12/05/ JEFFREY HATHAWAY 12/05/ GENERAL PACIFIC INC 12/05/ HOGLUNDS TOP SHOP INC 12/05/ MORNINGLIGHT INC 12/05/ ROGER R OLSEN 12/05/ PACIFIC COPY & PRINTING CO 12/05/ PORTAGE BAY SOLUTIONS INC 12/05/ JAMES SIDERIUS 12/05/ SOUND SAFETY PRODUCTS CO INC 12/05/ US HEALTHWORKS MEDICAL GROUP OF WA 12/05/ WESTERN ELECTRICITY COORDINATING CO 12/05/ ZIPPER GEO ASSOCIATES LLC 12/05/ CLEARESULT CONSULTING INC 12/05/ CONSOLIDATED ELEC DIST INC 12/05/ ATRILOGY SOLUTIONS GROUP INC 12/05/ ALTEC INDUSTRIES INC 12/05/ ANIXTER INC 12/05/ CONSOLIDATED ELECTRICAL DISTRIBUTOR 12/05/ BARNHART CRANE AND RIGGING CO 12/05/ CAPITAL ARCHITECTS GROUP PC 12/05/ D&L WASTE EQUIPMENT INC Page 10 of 16 51/147 Amount , , , , , , , , , , , , , , , , ,

52 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/05/ NANCY C MULLINS 12/05/ HOLLY SMALL 12/05/ ASSA ABLOY ENTRANCE SYSTEMS US INC 12/05/ ENERGY MANAGEMENT SERVICES INC 12/05/ HEWLETT PACKARD CO 12/05/ METRO GROUP LLC 12/05/ QUALITEL CORPORATION 12/05/ THE EVERETT CLINIC 12/05/ PUBLIC HOSPITAL DIST 1 OF SNOHOMISH 12/05/ PACIFIC ENERGY SOLUTIONS LLC 12/06/ CONTRADO BBH HOLDINGS LLC 12/06/ CITY OF EVERETT 12/06/ CITY OF EVERETT 12/06/ FRONTIER COMMUNICATIONS NORTHWEST I 12/06/ FRONTIER COMMUNICATIONS NORTHWEST I 12/06/ HD FOWLER COMPANY 12/06/ HD SUPPLY WATERWORKS 12/06/ NELSON DISTRIBUTING INC 12/06/ REXEL INC 12/06/ PRYSMIAN CABLES & SYSTEMS USA LLC 12/06/ PUBLIC GENERATING POOL 12/06/ SNOHOMISH COUNTY 12/06/ THYSSENKRUPP ELEVATOR CORP 12/06/ UNITED PARCEL SERVICE 12/06/ WW GRAINGER INC 12/06/ ALL BATTERY SALES AND SERVICE 12/06/ BAKER TILLY VIRCHOW KRAUSE LLP 12/06/ DICK'S TOWING INC 12/06/ EGELSTAD INC 12/06/ GENERAL PACIFIC INC 12/06/ HJ ARNETT INDUSTRIES LLC 12/06/ NATIONAL BARRICADE CO LLC 12/06/ SOUND SAFETY PRODUCTS CO INC 12/06/ THE SHERWIN-WILLIAMS CO 12/06/ G4S SECURE SOLUTIONS INC 12/06/ GOLD FARE INC 12/06/ STEELWAVE PLATFORM II JV LLC 12/06/ TRIUMPH STRUCTURES - EVERETT INC 12/06/ ADVANCED CLASSROOM TECHNOLOGIES INC 12/06/ DAGMARS MARINA LLC Page 11 of 16 52/147 Amount , , , , , , , , , , , , , , , , , , , , , , , , ,060.31

53 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/06/ ARLINGTON ADVANCED MFG PARK LLC 12/06/ WILLIAM H ROD 12/06/ NEALINDA CAREY 12/06/ SCOTT JANACEK 12/06/ KAFE NEO EDMONDS LLC 12/06/ KENNETH W FULCHER 12/06/ HEWLETT PACKARD CO 12/06/ UNITED WAY OF SNOHOMISH COUNTY 12/07/ ALS USA CORP 12/07/ CENTRAL WELDING SUPPLY 12/07/ CHEMSTATION 12/07/ GREATER EDMONDS CHAMBER OF COMMERCE 12/07/ CITY OF EVERETT 12/07/ FASTENAL COMPANY 12/07/ GL NOBLE DENTON INC 12/07/ HI LINE ELECTRIC COMPANY INC 12/07/ HOWARD INDUSTRIES INC 12/07/ NORTHWEST ENERGY EFFICIENCY COUNCIL 12/07/ PACIFIC TOPSOILS INC 12/07/ PUGET SOUND ENERGY INC 12/07/ FRED MEYER STORES INC 12/07/ SAP INDUSTRIES INC 12/07/ STAPLES CONTRACT & COMMERCIAL INC 12/07/ STILLWATER ECOSYSTEM WATERSHED & RV 12/07/ SNOHOMISH COUNTY COUNCIL OF THE 12/07/ VALLEY FREIGHTLINER INC 12/07/ VALMONT INDUSTRIES INC 12/07/ WASTE MANAGEMENT NW 12/07/ WESCO DISTRIBUTION INC 12/07/ BAY VALVE SERVICE INC 12/07/ BRANOM INSTRUMENT CO INC 12/07/ DARRINGTON PHARMACY 12/07/ DESIGNER DECAL INC 12/07/ EDS HEWITT LLC 12/07/ FUELCARE 12/07/ MARYANN GUERRY 12/07/ BRIAN DAVIS ENTERPRISES INC 12/07/ CITY OF MONROE 12/07/ NORTHEND TRUCK EQUIPMENT INC 12/07/ PURCELL P AND C LLC Page 12 of 16 53/147 Amount 2, , , , , , , , , , , , , , , , , , , , ,564.10

54 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/07/ RIVERSIDE SAND & GRAVEL 12/07/ ROHLINGER ENTERPRISES INC 12/07/ RUBATINO REFUSE REMOVAL 12/07/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI 12/07/ WOODINVILLE LICENSING SVC 12/07/ WARM BEACH HEALTH CARE CENTER 12/07/ GRAYBAR ELECTRIC CO INC 12/07/ PETROCARD INC 12/07/ BUSINESS DEVELOPMENT SOLUTIONS LLC 12/07/ MACDONALD MILLER FACILITY SOLUTIONS 12/07/ TECHNIART INC 12/07/ FIRST QUARTILE CONSULTING LLC 12/07/ BARTELL DRUG COMPANY 12/08/ MARCUS HAREWOOD 12/08/ BICKFORD MOTORS INC 12/08/ CADMAN INC 12/08/ CDW GOVERNMENT INC 12/08/ CENTRAL WELDING SUPPLY 12/08/ COMCAST OF WASHINGTON IV 12/08/ C THORNTON LIGHTING 12/08/ DWAYNE LANE'S 12/08/ CITY OF EDMONDS 12/08/ FASTENAL COMPANY 12/08/ IVOXY CONSULTING LLC 12/08/ CITY OF LAKE STEVENS 12/08/ CITY OF LAKE STEVENS 12/08/ LONGS LANDSCAPE LLC 12/08/ MARSH USA INC 12/08/ NEWARK CORP 12/08/ OFFICE DEPOT INC 12/08/ ORRICK HERRINGTON & SUTCLIFFE 12/08/ PARAMETRIX INC 12/08/ REXEL INC 12/08/ SHRED IT USA INC 12/08/ SOUND PUBLISHING INC 12/08/ STAPLES CONTRACT & COMMERCIAL INC 12/08/ SUNRISE TECHNOLOGIES INC 12/08/ SUPERIOR GLASS INSTALLATIONS INC 12/08/ SUTRON CORPORATION 12/08/ THE BOEING COMPANY Page 13 of 16 54/147 Amount , , , , , , , , , , , , , , , , , , , , , ,278.38

55 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/08/ THE PARTS STORE SOUTH 12/08/ UNITED SITE SERVICE OF NEVADA INC 12/08/ VAN NESS FELDMAN LLP 12/08/ WASHINGTON ENERGY SVCS CO 12/08/ WAGNER SMITH EQUIPMENT CO 12/08/ WASTE MANAGEMENT NW 12/08/ WW GRAINGER INC 12/08/ BRAKE & CLUTCH SUPPLY INC 12/08/ CENVEO CORPORATION 12/08/ COLEHOUR & COHEN INC 12/08/ FUELCARE 12/08/ NW PUBLIC POWER ASSOC 12/08/ NW PUBLIC POWER ASSOC 12/08/ NW PUBLIC POWER ASSOC 12/08/ NW PUBLIC POWER ASSOC 12/08/ JAMES SIDERIUS 12/08/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI 12/08/ SOUND SAFETY PRODUCTS CO INC 12/08/ TECH PRODUCTS INC 12/08/ WESTON SERVICES INC 12/08/ PILCHUCK EQUIPMENT RENTALS AND SALE 12/08/ ANIXTER INC 12/08/ SITEONE LANDSCAPE SUPPLY HLDNG LLC 12/08/ ADVANTAGE STAFFING GROUP LLC 12/08/ THE MILLER HULL PARTNERSHIP LLP 12/08/ PAUL TONNES 12/08/ ORION ALLIANCE GROUP LLC 12/08/ ARLINGTON ADVANCED MFG PARK LLC 12/08/ WASHINGTON STATE PARKS & RECREATION 12/08/ ALTERNATIVE LED LLC 12/08/ STILLY RIVER MECHANICAL 12/08/ THE GLASS DOOR & WINDOW COMPANY LLC 12/08/ TRU-VIEW GLASS AND WINDOWS INC 12/08/ PACIFIC ENERGY SOLUTIONS LLC 12/09/ AAA MONROE ROCK CORP 12/09/ DAVEY TREE SURGERY COMPANY 12/09/ ELECTROSWITCH 12/09/ GILBERT GILKES AND GORDON LTD 12/09/ INTRALOX LLC 12/09/ KAMAN FLUID POWER LLC Page 14 of 16 55/147 Amount , , , , , , , , , , , , , , , , , , , , , , , , , ,

56 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/09/ NEWARK CORP 12/09/ PACIFIC TOPSOILS INC 12/09/ REXEL INC 12/09/ ROMAINE ELECTRIC CORP 12/09/ SCHWEITZER ENGINEERING LAB INC 12/09/ STELLAR INDUSTRIAL SUPPLY 12/09/ SUPERIOR GLASS INSTALLATIONS INC 12/09/ SUTRON CORPORATION 12/09/ TACOMA SCREW PRODUCTS INC 12/09/ THE PARTS STORE SOUTH 12/09/ VIAMEDIA INC 12/09/ WASHINGTON ENERGY SVCS CO 12/09/ WESCO AUTOBODY SUPPLY INC 12/09/ WEST COAST PAPER CO 12/09/ WESTERN FACILITIES SUPPLY INC 12/09/ WW GRAINGER INC 12/09/ AABCO BARRICADE CO INC 12/09/ JOE BLASCHKA JR 12/09/ CJ ELECTRICAL SUPPLY & SERVICES LLC 12/09/ DOUBLE EAGLE LANDSCAPE INC 12/09/ EDGE ANALYTICAL INC 12/09/ EVERETT SAFE AND LOCK INC 12/09/ GREAT WESTERN INK INC 12/09/ IDVILLE 12/09/ NORTHWEST CASCADE INC 12/09/ NORTH SOUND HOSE & FITTINGS INC 12/09/ NORTHERN SAFETY CO INC 12/09/ NW PUBLIC POWER ASSOC 12/09/ POWER SYSTEMS INC 12/09/ SIEMENS INDUSTRY INC 12/09/ SOUND SAFETY PRODUCTS CO INC 12/09/ TRAVIS BANDUCCI 12/09/ UNITED REFRIGERATION INC 12/09/ GRAYBAR ELECTRIC CO INC 12/09/ MAGNUM POWER LLC 12/09/ ANIXTER INC 12/09/ G&G RESTAURANTS 12/09/ CANYON LUMBER CO INC 12/09/ WESTVIEW 522 LLC 12/09/ INDUSTRIAL FABRICATION CO INC Page 15 of 16 56/147 Amount , , , , , , , , , , , , , , , , , , , ,576.75

57 Detailed Disbursement Report Warrant Fund - Accounts Payable Warrants Payment Date Tracking Number Payee 12/09/ JOHN YASKUS Amount Sum 6,147, Page 16 of 16 57/147

58 Detailed Disbursement Report Warrant Fund - Accounts Payable ACH Payment Date Tracking Number Payee 11/28/ TFS ENERGY LLC 11/30/ PUBLIC UTILITY DISTRICT EMPLOYERS 11/30/ Scott Faries 11/30/ John Bergman 11/30/ Tim Klein 11/30/ Julie Mainstone 11/30/ Dean Galvez 11/30/ Larry Lowe 11/30/ George Pohndorf 12/02/ Jenifer Jagnow 12/02/ Doris Payne 12/05/ Julee-Anne Cunningham 12/05/ Edward Pride 12/05/ Brenda White 12/05/ Christoph Enderlein 12/05/ Curtis Rodorigo 12/05/ Mark Oens 12/05/ Sam Nietfeld 12/05/ Mitzi Bulman 12/05/ David Schumann 12/05/ Gary Bohannon 12/05/ Peter Federspiel 12/05/ Nicholas Belisle 12/05/ Jeffrey Kallstrom 12/05/ James Conlan 12/05/ Craig Collar 12/05/ Bartley Higgins 12/05/ Philip Scougale 12/05/ Norma Johnson 12/05/ Suzanne Oversvee 12/05/ Heidie Waxham 12/05/ Lisa Hornung 12/05/ Kevin Lavering 12/05/ Brandon Phan 12/05/ Jessica Mitchell 12/05/ Misti Moore 12/05/ Josie Anderson 12/05/ Jennifer Southard 12/05/ Gordon Mac Donald 12/05/ Jacob Lindell Page 1 of 2 58/147 Amount , ,

59 Detailed Disbursement Report Warrant Fund - Accounts Payable ACH Payment Date Tracking Number Payee 12/05/ George Pohndorf 12/05/ Douglas Williams 12/08/ Timothy Epp 12/08/ Suzanne Oversvee 12/08/ Nathan Heber 12/08/ Karen Sparkman 12/08/ George Pohndorf 12/08/ Nathaniel Buah-Kwofie 12/09/ Anna Berg 12/09/ Amy Kindred Amount Sum , , , Page 2 of 2 59/147

60 Detailed Disbursement Report Warrant Fund - Accounts Payable Wires Payment Date Tracking Number Payee 11/28/ US BANK NA 12/02/ ENERGY NORTHWEST 12/05/ US BANK NA 12/06/ ICMA-RC 12/06/ PUBLIC UTILITY DIST NO 1 OF SNOHOMI 12/06/ ICMA-RC Amount Sum 6, , , , , , , Page 1 of 1 60/147

61 Payroll Register ELECTRIC SYSTEM REVENUE FUND Period Ending Date Pay Date Payee Payroll Amount 11/15/ /22/2016 Dept of Retirement Systems 123, /30/ /7/2016 PUD Employees 2,998, Sum: 3,122, /147

62 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: U3DU TITLE Consideration to Prequalify Contractors as Bidders for Electrical Line Work for the District During the Contract Year of 2017 SUBMITTED FOR: Consent Agenda Contracts/Purchasing Judy Spence 5539 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4)(B)(2) a non-delegable, statutorily assigned Board duty RCW requires that the District annually prequalify contractors bidding on certain categories of public works contracts prior to furnishing proposal forms to such bidders. For the calendar year 2017, thirty-six previously prequalified contractors requested renewal of their prequalification by affidavit, and two new contractors applied for prequalification, for a total of thirty-eight contractors. After a review of each applicant, as summarized in the Prequalification Report, by representatives from Distribution Construction Services; Transmission, Engineering, Joint Use and Standards; Finance & Risk Management; and Safety; staff recommends the thirty-eight contractors listed on Exhibit A, be prequalified to bid electrical line construction work in the year 2017 for the category(s) listed. List Attachments: Prequalification Report Exhibit A 62/147

63 PREQUALIFICATION REPORT RECOMMENDATION TO PREQUALIFY CONTRACTORS FOR THE YEAR 2017 FOR ELECTRICAL CONSTRUCTION WORK As required by RCW , the District must prequalify contractors interested in bidding electrical construction contracts. RECOMMENDATION: Based upon a review of each applicant s: Technical skills and qualifications to perform the work for which they have applied Financial condition Organizational/Operational experience References/Record of performance over the last (18 mo. new applicant) (3 yrs. current contractor) Overall ability to comply with District contracting requirements Current registration with the State of Washington Current Workers Compensation and Employers Liability Safety Record OSHA 300A Report, the Committee recommends the thirty-eight contractors identified in Exhibit A be prequalified to bid on electrical construction work during the year PROCESS: OVERVIEW OF THE ANNUAL PREQUALIFICATION PROCESS FOR 2016 Staff work was performed by representatives from Contracts & Purchasing; Distribution Construction Services; Transmission, Engineering, Joint Use & Standards; Finance & Risk Management; and Safety; for an evaluation of each contractor submitting an affidavit/application. The annual process evaluates new applicants and ensures continued competency in those contractors that have been previously prequalified. Therefore, contractors requesting renewal by affidavit, which have not done work for the District in three years, are required to submit updated references for such category(s) of work. In addition, the District reviewed the financial statements from contractors that were previously prequalified and requesting renewal by affidavit (this occurs every five years). We received thirty-six requests for renewal by affidavit and two requests for prequalification from new applicants. The recommendations that follow have been determined using District guidelines based on reference checks, Safety records from OSHA and the State of Washington Department of Labor and Industries, Industrial Safety and Health Division and OSHA s 300A Summary of Work-Related Injuries and Illnesses, and financial records. 63/147

64 RECOMMENDATION TO PREQUALIFY CONTRACTORS FOR THE YEAR 2017 Page 2 FOR ELECTRICAL CONSTRUCTION WORK RECOMMEND: After contacting references provided by applicants, and receiving favorable comments, we recommend the following new contractors be prequalified in the following category(s) for 2017: See Exhibit A for description of work categories. New Contractor Category(s): Hotline Construction, Inc. A-5 Rokstad Power, Inc. A-1, B-1 After contacting references provided by applicants, and receiving favorable comments, we recommend the following previously prequalified contractor be prequalified in the following additional category(s) for 2017: Current Contractor Additional Category(s): Christenson Electric, Inc.. B-1 Magnum Power, LLC A-5 Potelco, Inc. C-2 Power Technology, Inc. A-2 Wright Tree Service, Inc. D-2 DO NOT RECOMMEND: We do not recommend prequalification for the following new contractors, previously prequalified contractors requesting additional category(s) and/or contractors required to provide updated references: See Exhibit A for description of work categories. New Applications: Hotline Construction, Inc. Rokstad Power, Inc. Current Contractor: Barnard Construction Company Christenson Electric, Inc. Henkels & McCoy, Inc. Magnum Power, LLC Mountain Power Construction Basis for recommendation: A-1, A-2 (unable to obtain 2 nd reference) A-2, A-4, A-5, B-9, B-10, B-11 (no acceptable references and/or unable to obtain second reference and/or one category required another category as a prerequisite) Basis for recommendation: A-5 (no acceptable references) A-5, B-3, B-6, B-8 (no acceptable references and/or unable to obtain 2 nd reference) B-3 (unable to provide updated references) B-11, C-2 (no acceptable references and/or unable to obtain a second reference) C-1 (no acceptable references) 64/147

65 RECOMMENDATION TO PREQUALIFY CONTRACTORS FOR THE YEAR 2017 Page 3 FOR ELECTRICAL CONSTRUCTION WORK VIOLATION HISTORY REPORTS: Safety records from OSHA and the State of Washington Department of Labor and Industries, Industrial Safety and Health Division were reviewed by our Safety Department on all contractors, and nothing was found to disqualify the contractors requesting to be prequalified. OSHA 300A REPORTS (Summary of Work-Related Injuries and Illnesses): OSHA 300A Reports were reviewed by our Safety Department on all contractors, and were found to be within District guidelines. 65/147

66 EXHIBIT A RECOMMENDED CONTRACTORS, PREQUALIFICATION, 2017 PREQUALIFIED AFFIDAVIT/ CONTRACTOR CATEGORIES RECEIVED Advanced Boring Specialists, Inc. B-6; B-8 X COMMENTS Asplundh Tree Expert Company D-1; D-2 X Rick Alvarez dba Associated Arborists D-1 X Barnard Construction Company A-2 X Basin Tree Service & Pest Control, Inc. D-1; D-2 X Burke Electric, LLC A-1; B-1; C-1 X Cascade Cable Constructors, Inc. B-3; B-6; B-8 X Christenson Electric, Inc. A-1; A-2; A-4; B-1; C-1; X C-2 Davey Tree Surgery Co. D-1; E-1 X DJ's Electrical, Inc. A-1; A-2; B-1, B-6 X Downing Diversified, LLC B-6 X Rafella O'Connor dba B-6 Handy's Drilling, Inc. X Henkels & McCoy, Inc. A-1; A-2; A-4; A-5; B-1; X B-6; B-8; B-10; B-11 C-1; C-2 Hotline Construction, Inc. A-5 Intec Services, Inc. E-1 X New applicant for A. Overhead Line Construction C. Substation 1. Distribution, 12 kv 1. Electrical Facility Construction 2. Transmission/Distribution, 115 kv 2. Electrical Facility Construction, 230kV 4. Telecommunications Cable 5. Distribution, 230 kv D. Right-of-Way Clearing and Maintenance B. Underground Line Construction 1. Tree and Brush Work 1. Distribution, 12 kv 2. Spraying 2. Distribution, Submarine Cable 3. Plowing, Solid-Dielectric Power Cables E. Pole Treatment, Reinforcement and Repair 6. Directional/Conventional Boring Work 1. Groundline Preservation 7. Cable Injection Work 8. Distribution Pot Holing 9. Transmission/Distribution, 115 kv 10. Telecommunications Cable 11. Distribution, 34.5 kv NOT PREQUALIFYING IN THE FOLLOWING CATEGORIES OF WORK: B4 (BACKHOE, EXCAVATION WORK), B5 (BULLDOZER AND TRACKHOE, EXCAVATION WORK), C2 (SUBSTATION MAINTENANCE, INTERNAL), C3 (SUBSTATION, EQUIPMENT PAINTING OR D-3 CLEARING, GRADING AND LANDSCAPING ONLY), A3 (STUBBING) 66/147 IS NOW E2 (POLE RESTORATION), Page 1 of 2E-2 (POLE RESTORATION).

67 EXHIBIT A RECOMMENDED CONTRACTORS, PREQUALIFICATION, 2017 CONTRACTOR PREQUALIFIED CATEGORIES AFFIDAVIT/ RECEIVED COMMENTS Kemp West, Inc. D-1 X Magnum Power, LLC A-1; A-2; A-4; A-5; B-1; X B-3; B-6; B-8; B-10; C-1 Michels Corporation, Michels A-1; A-2; A-4; A-5; B-1; X Power Division B-3; B-6; B-8; B-10; B-11; C-1; C-2 Mountain Power Construction A-1; A-2; A-4; B-1; B-3; X B-6; B-8 Moza Construction, Inc. A-1; B-1; B-8 X Novinium, Inc. B-7 X NW Utility Services, LLC A-1; A-2; A-4; B-1; B-10 X Osmose Utilities Services, Inc. E-1 X Pacific Cable Construction, Inc. B-6; B-8 X Par Electrical Contractors A-1; A-2; A-4; A-5; B-1; X B-9; B-10; B-11; C-1; C-2 Potelco, Inc. A-1; A-2; A-4; A-5; B-1; X B-3; B-6; B-11; C-1; C-2 Power City Electric A-1; B-1; C-1 X Power Technology, Inc. A-1; A-2; B-1; C-1 X Rokstad Power, Inc. A-1, B-1 X Salish Construction A-1; B-1 X New applicant for Sturgeon Electric Company, Inc. A-1; A-2; A-4; A-5; B-1; X B-10; B-11; C-1; C-2 Summit Line Construction, Inc. A-1; A-2; A-4; A-5; B-1; B-8 X C-1; C-2 Tice Electric Company C-1; C-2 X Trenchless Construction Services, Inc. B-6; B-8 X Utility Trench, Inc. B-6 X VECA Electric Company C-1; C-2 X Wilson Construction Company, Inc. A-1; A-2; A-4; A-5; B-1; X C-1; C-2 Wright Tree Service, Inc. D-1, D-2 X 67/147 Page 2 of 2

68 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 3E TITLE Consideration of a Resolution Repealing Resolution No SUBMITTED FOR: Consent Agenda CEO/General Manager Craig Collar 8473 Department Contact Extension Date of Previous Briefing: October 25, 2016 Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board-General Manager Linkage: BL-4(3). As long as the CEO/General Manager uses any reasonable interpretation of the Board s ends and executive limitations policies, the CEO/General Manager is authorized to establish all further policies, make all decisions, take all actions, establish all practices and develop all activities. The District s prior CEO/General Manager used a formally adopted Strategic Plan as a tool to support the District s mission of providing quality water and electric energy products and services, and to provide guidance to the District s CEO/General Manager and staff. In its stead, the CEO/General Manager has developed a comprehensive framework and set of strategic priorities. This framework and set of priorities is the CEO/General Manager s working document that has been reviewed with the Board and will be reviewed with the Board regularly in the future. Accordingly, staff recommends that the resolution approving a prior outdated strategic plan be repealed. List Attachments: Resolution 68/147

69 RESOLUTION NO. A RESOLUTION Repealing Resolution No WHEREAS, the five-year Strategic Plan adopted in Resolution No was a tool used by Public Utility District No. 1 of Snohomish County s former CEO/General Manager to formalize a policy roadmap for the District and guide actions of staff; and WHEREAS, in lieu of the former Strategic Plan, the CEO/General Manager has developed a comprehensive framework and set of strategic priorities as his working guide that has been reviewed by the Board of Commissioners and will be reviewed with the Board regularly in the future; and WHEREAS, the CEO/General Manager therefore recommends that the resolution approving the prior Strategic Plan be repealed. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of Public Utility District No.1 of Snohomish County, Washington, that Resolution No is hereby repealed. PASSED AND APPROVED this 20 th day of December, President Vice-President Secretary 69/147

70 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 4A TITLE Disposal of Surplus Property 1st Quarter 2017 SUBMITTED FOR: Public Hearing and Action Warehouse Hud Allworth 5005 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description, GP-3(4) --- non-delegable, statutorily assigned Board duty. Request approval to dispose of various materials and equipment from all Divisions, as set forth on Exhibit "A" that have accumulated during the previous quarter. These items are no longer necessary or useful to the District and will be sold for high bid, scrap, junk, or used as trade-in. Request advance approval to dispose of those materials set forth on Exhibit "B" that will accumulate during the first quarter of the year The materials listed on Exhibit "B" include waste transformer oil, unserviceable distribution transformers, unserviceable radiators, pipes, storage tanks, etc., containing PCB material, scrap metal, assorted sizes of tires, obsolete automotive parts, obsolete/scrap transmission and distribution inventory, obsolete/scrap substation inventory, obsolete/scrap material and equipment, obsolete/scrap CPUs and computer components, and obsolete/scrap miscellaneous furnishings to include chairs, desks, cabinets, tables, and work surfaces. List Attachments: Exhibit A Exhibit B 70/147

71 SURPLUS PROPERTY RECOMMENDATIONS 1st QUARTER 2017 EXHIBIT A ORIGINAL APPROX. STORES PURCHASE PURCHASE MARKET DISPOSAL DESCRIPTION REF. # YEAR PRICE VALUE METHOD Veh. #594: 1993 International 4900, VIN: 1HTSHPCRXPH541110, License: 31441C. Crane is a National 600C, SN: Flatbed crane truck is 23 years old and is beyond its useful life. This flatbed crane will be replaced with a new flatbed crane truck. Veh. #598: 1988 International 9300, VIN: 2HSFBX6RXJC012970, License: 09252C. Crane is a National 556B, SN: Flatbed crane truck is 28 years old with over 150,000 miles and is beyond its useful life. The flatbed crane will be replaced with a new flatbed crane truck. Two snowmobiles: #709 and #710 are being surplussed as they would need to be upgraded to comply with the District's safety standards. Also, they are no longer needed due to purchase of the Snowcat and tracks for the side-by-side. District replaced "air" vehicles with hydraulic vehicles in Line Department. No longer have use for a Portaco hydraulic power unit: Tool #4938, Serial # S , , Sell S , , Sell S , , Sell S-4647 N/A N/A 1, Sell 5. District no longer uses the following equipment: Bulldog telescopic double lights, 1000w, Model: P11025, Quantity: 15. S-4648 N/A N/A Sell 6. Three obsolete but functioning cameras: Polaroid Sun 660 Autofocus SE; Olympus Camedia C-3000 zoom, 3.3 megapixel, Serial # ; Pentax Optio S50, 5 megapixel, Serial # S-4650 N/A N/A Sell 71/147 Exhibit A - Page 1 of 1

72 SURPLUS PROPERTY RECOMMENDATIONS 1st Quarter 2017 EXHIBIT B ORIGINAL APPROXIMATE PURCHASE PURCHASE MARKET DISPOSAL DESCRIPTION YEAR PRICE VALUE METHOD 1. Waste transformer oil, PCBs <2 ppm to be disposed of as needed in the 1st Quarter 2017 Various Various 0.20/ gallon (paid to District) Dechlorinated to <1ppm PCBs by Transformer Technologies, LLC and recycled 2. Waste transformer oil, PCBs 2- <49 ppm to be disposed of as needed in 1st Quarter 2017 Various Various 0.05/ gallon (paid to District) Dechlorinated to <1ppm PCBs by Transformer Technologies, LLC and recycled 3. Waste transformer oil, PCBs > or = 50 ppm to be disposed of as needed in 1st Quarter 2017 Various Various 4.67/ gallon (billed District) Dechlorinated by Clean Harbors ES 4. Unserviceable distribution transformers & electrical equipment, PCBs < 1ppm to be disposed of as needed in 1st Quarter 2017 Various Various 2.39/ KVA (paid to District) Oil recycled for reuse and equipment is rebuilt for resale and/or scrapped for metal recovery by T & R Electric Company 5. Unserviceable distribution transformers & electrical equipment, PCBs 1-49 ppm to be disposed of as needed in the 1st Quarter 2017 Various Various 0.70/ KVA (paid to District) Oil will be dechlorinated and equipment scrapped for metal recovery by Transformer Technologies, LLC 6. Unserviceable distribution transformers & electrical equipment, PCBs > or = 50 ppm to be disposed of as needed in 1st Quarter 2017 Various Various 1.27/ lb (billed District) Incinerated by Clean Harbors ES 7. Unserviceable PCB contaminated radiators, pipes, scrap metal and storage tanks drained of oil containing PCBs to be disposed of as needed in 1st Quarter 2017 Various Various 1.27/ lb (billed District) Incinerated by Clean Harbors ES 8. Scrap metal, including copper, aluminum, brass, steel, iron, meters, potential transformers and current transformers to be sold as needed in 1st Quarter 2017 Various N/A 63, (based on average of previous 4 quarters) High Bid 9. Assorted sizes of tires, tubes and casings to be scrapped as needed in 1st Quarter 2017 Various N/A 0.00 Scrap 72/147 Exhibit B - Page 1 of 4

73 SURPLUS PROPERTY RECOMMENDATIONS 1st Quarter 2017 EXHIBIT B ORIGINAL APPROXIMATE PURCHASE PURCHASE MARKET DISPOSAL DESCRIPTION YEAR PRICE VALUE METHOD Obsolete miscellaneous auto parts and supplies, including fire extinguishers, polyester rope, strobe lights and other related automotive materials to be sold as needed in 1st Quarter 2017 Obsolete miscellaneous auto parts and supplies, including fire extinguishers, polyester rope, strobe lights and other related automotive materials to be scrapped as needed in 1st Quarter 2017 Various N/A 0.00 High Bid Various N/A 0.00 Scrap 12. Obsolete miscellaneous transmission and distribution inventory to include street lighting, poleline hardware, concrete products, wire, transformers and other related material to be sold as needed in 1st Quarter 2017 Various N/A (based on average of previous 4 quarters) High Bid Obsolete miscellaneous transmission and distribution inventory to include street lighting, poleline hardware, concrete products, wire, transformers and other related material to be scrapped as needed in 1st Quarter 2017 Obsolete/scrap material and equipment to include adding machines, calculators, typewriters and other related items to be sold as needed in 1st Quarter 2017 Obsolete/scrap material and equipment to include adding machines, calculators, typewriters and other related items to be scrapped as needed in 1st Quarter 2017 Various N/A 0.00 Scrap Various N/A 0.00 High Bid Various N/A 0.00 Scrap 73/147 Exhibit B - Page 2 of 4

74 SURPLUS PROPERTY RECOMMENDATIONS 1st Quarter 2017 EXHIBIT B ORIGINAL APPROXIMATE PURCHASE PURCHASE MARKET DISPOSAL DESCRIPTION YEAR PRICE VALUE METHOD Obsolete/scrap material and equipment to include adding machines, calculators, typewriters and other related items to be traded as needed in 1st Quarter 2017 Obsolete miscellaneous CPUs, monitors, keyboards, printers and other computer components to be sold as needed in 1st Quarter 2017 Obsolete miscellaneous CPUs, monitors, keyboards, printers and other computer components to be recycled/scrapped/junked as needed in 1st Quarter 2017 Obsolete miscellaneous furnishings to include chairs, desks, cabinets and table work surfaces to be sold as needed in 1st Quarter 2017 Obsolete miscellaneous furnishings to include chairs, desks, cabinets and table work surfaces that are damaged beyond economical repair to be scrapped as needed in 1st Quarter 2017 Pre-Authorization for any material "trade-ins", to be used as a credit against the purchase price of new products of the same type procured for District use, to the extent such "trade-ins" are consistent with standard industry practices with respect to the applicable category of item in the 1st Quarter 2017 Various N/A 0.00 Trade Various N/A 0.00 High Bid Various N/A 0.00 Recycle/Scrap/Junk Various N/A 0.00 High Bid Various N/A 0.00 Scrap Various Various Various Trade 74/147 Exhibit B - Page 3 of 4

75 SURPLUS PROPERTY RECOMMENDATIONS 1st Quarter 2017 EXHIBIT B ORIGINAL APPROXIMATE PURCHASE PURCHASE MARKET DISPOSAL DESCRIPTION YEAR PRICE VALUE METHOD Pre-Authorization for any obsolete and/or miscellaneous Tool Room equipment/material to be traded during 1st Quarter 2017 Pre-Authorization for any obsolete and/or miscellaneous Tool Room equipment/material to be junked during 1st Quarter 2017 Pre-Authorization for any obsolete and/or miscellaneous Water Department equipment/material to be sold 1st Quarter 2017 Pre-Authorization for any obsolete and/or miscellaneous Water Department equipment/material to be scrapped 1st Quarter 2017 Pre-Authorization for any obsolete and/or miscellaneous Generation Department equipment/material to be sold or scrapped 1st Quarter 2017 Various Various Various Trade Various Various Various Junk Various Various Various High Bid Various Various Various Scrap Various Various Various Sell/Scrap The successful bidder for the annual transformer bid (<1 ppm PBC) is: The successful bidder for the annual transformer bid (1-49 ppm PCB) is: The successful bidder for the two-year contract for bulk oil is: The successful bidder for the first quarter 2017 scrap metal bid is: Transformer Technologies, LLC Transformer Technologies, LLC Transformer Technologies, LLC Simon Metals, LLC 75/147 Exhibit B - Page 4 of 4

76 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 4B TITLE Consideration of a Resolution Ordering, Approving, Ratifying and Confirming the Construction and Installation of the Plan or System of Additions to the District s Water Utility, as Adopted on November 22, 2016, and Applicable to the Local Utility District Hereinafter Described, Forming Local Utility District No. 59 of Snohomish County, Washington, and Confirming the Final Assessment Roll SUBMITTED FOR: Public Hearing and Action Water Utility - Administration Brant Wood/Jen Mason 3003/3013 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4)(D)(1) a non-delegable, statutorily assigned Board duty Local Utility Districts. Form and establish the method of procedure in all matters relating to local utility districts. On November 22, 2016, the Board of Commissioners adopted Resolution No setting December 20, 2016, as the date for a public hearing on the formation of a proposed water local utility district (LUD No. 59). The final assessment roll for LUD 59 consists of nine specifically benefited properties. The total dollar amount for the assessments is 88,930.90, which will be collected over 20 years. One property owner paid in full after the preliminary assessment. Each of the property owners signs a Water Connection Agreement. The Agreement is prepared such that the property owner s signature qualifies in the same manner as signing a petition for formation of an LUD. Since only those requesting financing for water service have signed Connection Agreements, the LUD has 100 percent property owner support. 76/147

77 To expedite the process, applicants waive publishing notice of the public hearing in The Herald and agree to receive a written notice sent by mail at least 15 days prior to the hearing on formation of the LUD and confirmation of the assessment roll. Property owners were mailed a notice of the hearing and final assessment roll on November 23, If adopted, the Resolution included in the packet will approve the final assessment roll and confirm that the assessments are equitable and proper and fairly reflect the benefits to the assessed properties. The Resolution also directs the Snohomish County Treasurer to establish a fund to receive all payments of principal, interest, and penalties made with respect to the assessment roll. List Attachments: Resolution Exhibit A Final Assessment Roll Exhibit B Boundary Map 77/147 2

78 RESOLUTION NO. A RESOLUTION Ordering, Approving, Ratifying and Confirming the Construction and Installation of the Plan or System of Additions to the District s Water Utility, as Adopted on November 22, 2016, and Applicable to the Local Utility District Hereinafter Described, Forming Local Utility District No. 59 of Snohomish County, Washington, and Confirming the Final Assessment Roll WHEREAS, by Resolution No passed by the Board of Commissioners of the District on November 22, 2016, a plan or system of additions and related appurtenances to the District s Water Utility, all in accordance with Exhibit B thereto, which by this reference is made a part hereof, was adopted, which resolution also declared the intention of the Board of Commissioners to form Local Utility District No. 59 in connection with carrying out such plan; and WHEREAS, the boundaries and a general description of the proposed local utility district, together with the names and addresses of the owners of all lots, parcels, or tracts of land or other property within such local utility district, as shown on the tax rolls of the County Treasurer, and the legal descriptions and proposed annual assessments for all such lots, parcels or tracts of land or other property within the proposed local utility district, are as set forth in Exhibits A and B, attached hereto and by this reference incorporated herein; and WHEREAS, on November 23, 2016, written notice of the hearing to form such proposed local utility district and adopt related assessment rolls was sent by first class mail, U.S. postage prepaid, to the owners of all lots, parcels, or tracts of land or other property within the proposed local utility district; and WHEREAS, the publication of such notice has been waived in writing by each and every member of the proposed local utility district; and 78/147

79 Resolution No WHEREAS, no protest petition signed by fifty percent (50%) or more of the property owners within such proposed local utility district was filed with the Secretary of the Board of Commissioners on or before twelve o clock noon on the date fixed for hearing; and WHEREAS, on December 20, 2016, commencing at 1:30 p.m., the Commission conducted a hearing on such proposed local utility district, and considered all timely written objections and oral arguments presented for or against the formation of such district and for or against the proposed assessment roll for such district; and WHEREAS, under the State Environmental Policy Act, WAC (16) and (23)(b), no environmental checklist was prepared prior to the formation and construction of Local Utility District No. 59; and WHEREAS, the Commission finds that it is reasonable and proper and in the best interest of the District to form Local Utility District No. 59 as hereinbefore described, and to confirm the assessment roll for such local utility district. NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility District No. 1 of Snohomish County, Washington, as follows: Section 1. The construction of the plan or system of additions to and extensions of the District s Water Utility as adopted in Resolution No and as more particularly set forth in Exhibit B thereto, is hereby approved, ratified and confirmed. Section 2. The proposed Local Utility District No. 59 of Snohomish County, Washington, as more particularly described in Exhibit A, appears to be financially and economically feasible, and is hereby formed. Section 3. The cost and expense of carrying out the plan or system provided in Section 1, including construction and installation, overhead and general expenses and 79/147

80 Resolution No engineering and legal expenses, is hereby declared to be 88, Not to exceed 100 percent of such cost and expense shall be borne by assessments against property within said local utility district specially benefited by the improvement. The Commission finds that the cost and expense to be borne by each lot is not greater than the benefit to be conferred on each lot. Section 4. Assessment shall be made against the property within said local utility district on a per buildable lot basis. Each assessment shall include, in addition to a proportionate share of the cost of facilities constructed as part of the plan or system described in Section 1 hereof, a general facilities charge, which represents the charge imposed by the District for access to the source, storage and transmission facilities of the District s Water Utility. A connection charge shall also be levied for each service connection. The Board of Commissioners hereby finds that such method of assessment is equitable and proper and fairly reflects the special benefits to the respective assessed properties. Section 5. The proposed final assessment roll and assessments for Local Utility District No. 59 as set forth in the attached Exhibit A is fair and reasonable and is hereby approved and confirmed. Section 6. The assessments in such utility district may be paid in cash, without penalty, interest or cost, at any time within thirty days from the first day of publication of notice by the Treasurer of Snohomish County, Washington, that the assessment roll is in his or her hands for collection, and if not then paid, such assessments may, at the option of the several property owners, be paid in 20 equal annual installments; that the first of such installments be due one year after the expiration of the aforesaid 30-day period, and subsequent installments shall be due annually after such date; that the sum remaining unpaid at the expiration of such 80/147

81 Resolution No day period shall bear interest at the rate 4.5 percent per annum, and interest on the unpaid amount shall be due on the due date of the first installment of principal and each year thereafter on the due date of each installment of principal; that assessments or installments thereof, when delinquent, in addition to such interest, shall bear a penalty in the amount of 12 percent per annum on the outstanding delinquent balance; and that the owner of any lot, tract or parcel of land or other property charged with any such assessment may redeem it from all liability for the unpaid amount of the assessment, at any time after the 30-day period allowed for payment of the assessment without penalty or interest, by paying the entire unpaid amount of the assessment to the Snohomish County Treasurer, with interest thereon to the date of maturity of the installment next falling due. Section 7. The cost of the plan described in Section 1 hereof shall be met and defrayed from the District s Water Utility General fund and the proceeds of assessments levied and assessed against all property within the local utility district created by Section 2 hereof, legally and properly assessable therefore and specially benefited by said improvement, as provided by the laws of the State of Washington and the resolutions of the District. The entire principal of and interest on such assessments, as well as penalties for late payment, shall be paid into a local improvement fund which is hereby created and established in the office of the Snohomish County Treasurer to be known as Utility Local Improvement District No. 59, (Water Distribution System) Non-Contiguous and shall be used for the sole purpose of paying the cost of the plan described in Section 1, and/or paying principal of and interest on District warrants and/or notes, inter-fund loans or bonds issued in payment of the cost and expense of such improvements; and the Snohomish County Treasurer is hereby authorized and directed to remit to the District, on or prior to the tenth day of the month following receipt 81/147

82 Resolution No thereof, for use for such purposes, any and all monies received by the Treasurer from time to time in said fund. Section 8. The Secretary of the Board of Commissioners of the District is hereby authorized and directed to certify unto the Snohomish County Treasurer and any and all public authorities or others interested in LUD No. 59 or properties contained therein as to the giving of all notices, the manner and form of all resolutions or proceedings and any other information or material which may be necessary or appropriate with respect thereto. PASSED AND APPROVED this 20th day of December, President Vice-President Secretary 82/147

83 Resoluton No. Exhibit A Page 1 of 2 Final Assessment Roll for Lots Within Boundaries of 2016 Non-Contiguous LUD 59 of Public Utility District No. 1 of Snohomish County, Washington Tax Account No. Legal Description SEC 04 TWP 29 RGE 06RT-42B) BAAP N00*53 22W FT FROM SE COR SEC TH CONT N ALG E LN SEC FT TO NXN SE R/W CO RD TH S49*42 00W FT TH S22*23 30W FT TH S 38*17 30W 63.02FT TH N89*06 38E56.74FT TH N49*06 38E 90FT TH N89* 06 38E FT TO POB Recorded Owner & Mailing Address Dale & Yvonne Bogart PO Box 113 Lake Stevens, WA Assessment 8, Section 02 Township 29 Range 06 Quarter SE LOT 1 SNO CO PFN SP REC AFN BEING A PTN OF NE1/4 SE1/4 Marcelyn Neumann 3517 Newberg Rd Snohomish, WA , SEC 33 TWP 31 RGE 06S 726FT OF W 300FT SW1/4 SE1/4 LESS CO RD IF ANY Kyle Smith Burn Rd Arlington, WA , Section 09 Township 28 Range 06 Quarter NE E1/2 NE1/4 NE1/4 SUBJ R/W ESE TO USA & LESS W 320FT & LESS E 20FT LESS ADD E 10FT THOF TO SNO CO AUD FILE NO VOL 1690 PG 739 Gary Duffner Meadowmeer Circle NE Bainbridge Island, WA , SEC 21 TWP 29 RGE 06RT-22A) S 289 FT OF E 611 FT OF NW1/4 NW1/4 LESS E 20 FT FOR CO RD Gary Alexander th Ave SE Snohomish, WA , SEC 29 TWP 31 RGE 06LOT 2 ZA SP REC AF NO BEING PTN W1/2 NW1/4 Benjamin & Sherrie Walther Burn Rd Arlington, WA , SEC 13 TWP 30 RGE 06NWLY 103FT OF SELY 196FT AS MEAS ALG WLY LN FDTR BEG INT S LN S/HY 15-A & W MGN ST GAME RD TH SWLY ALG HWY FT TH S49*10 00E FT TH N60*52 59E 226FT TPB TH CONT N60*5259E FT TO W MGN ST GAME RD TH NWLY ALG SD RD FT TO S LN HWY TH SWLY ALG HWY FT TH IN STRT LN SELY TPOB EXC CERTAIN 24FT RDWY DESCAUD FILE # TGW 40FT STRIP OF LAND LY NLY OF ABOVE DESC PRTY & WLY OF SD 24FT RDWY Danen & Heather Barnhart 632 Wetmore Ave Everett, WA , /147

84 Resoluton No. Exhibit A Page 2 of 2 Tax Account No. Legal Description Recorded Owner & Mailing Address Assessment SEC 32 TWP 31 RGE 06RT-1) BEG INT S LN NE1/4 NE1/4 & W LN CORD TH NLY ALG W LN SD RD 528 FT TO TPB TH SLY ALG W LN SD CO RD 200 FT TH W PLT S LN SD SUB 200 FT TH NLY PLT W LN CO RD TAP 200FT W OF TPB TH E PLT S LNSD SUB 200 FT TO TPB Colton Bailey Burn Rd Arlington, WA , MEADOW LAKE HILLS BLK 000 D-00 - ALL THAT PTN OF LOTS 8 & 9 LY SLY OF FDL:BEG AT W1/4 COR OF SEC 17 TWN 28 RGE 7 BEING ALSO NW COR OF SD LOT 8 TH N61* 56 14E ALG N LN OF SD LOT FT TH N10* 1905W FT TH N61* 56 14E PLW N LN OF SD LOT FT TO WLY R/W OF MEADOW LK RD & TERM OF HEREIN DESC LN EXC ANY PTN LY IN R/W OF PUBLIC RD PER BLA REC AFN Reilly Hendrix and Fay Hartje Meadow Lake Rd Snohomish, WA , Total Final Assessment Roll 88, /147

85 MORA DR Resolution No. Exhibit B Page 1 of 9 141ST ST NE UV A STEHR RD 140TH ST NE BURN RD 136TH ST NE Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 85/147

86 Resolution No. Exhibit B Page 2 of 9 156TH ST NE BURN RD UV B 152ND ST NE 150TH ST NE Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 86/147

87 123RD AV NE Resolution No. Exhibit B Page 3 of 9 172ND ST NE 169TH ST NE UV C 122ND AV NE 114TH DR NE BURN RD Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 87/147

88 Resolution No. Exhibit B Page 4 of 9 151ST AV SE THREE LAKES RD UV D 70TH ST SE 147TH AV SE 142ND DR SE Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 88/147

89 Resolution No. Exhibit B Page 5 of 9 87TH ST SE 89TH ST SE MEADOW LAKE RD MERO RD UV E 95TH ST SE 215H AV SE 215TH AV SE Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 89/147

90 Resolution No. Exhibit B Page 6 of 9 HWY 92 W STANLEY ST CROOKED MILE RD UV F RAY GRAY RD Pilchuck River 184TH AV NE Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 90/147

91 Resolution No. Exhibit B Page 7 of 9 NEWBURG RD NEWBERG RD UV G 35TH PL NE 182ND AV NE Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 91/147

92 135TH AV SE Resolution No. Exhibit B Page 8 of 9 3RD ST SE 4TH PL SE UV H Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 92/147

93 Resolution No. Exhibit B Page 9 of 9 32ND ST NE 147TH AV NE UV I RUSSELL RD 28TH ST NE Connor Lake Snohomish County PUD Water Resources NON-CONTIGUOUS LUD NO. 59 TAX ACCOUNT #: EXHIBIT B 93/147

94 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 4C TITLE Consideration of a Resolution Adopting the 2017 Budget for Public Utility District No. 1 of Snohomish County, Washington SUBMITTED FOR: Public Hearing and Action Finance Division Glenn McPherson 8356 Department Contact Extension Date of Previous Briefing: December 6, 2016 Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description: GP-3(4) a non-delegable, statutorily assigned Board duty as defined under RCW budget. The attached Resolution adopts the 2017 Budget for the Electric, Generation, and Water Systems. List Attachments: 2017 Budget Resolution Exhibt A 94/147

95 RESOLUTION NO. A RESOLUTION Adopting the 2017 Budget for Public Utility District No. 1 of Snohomish County, Washington WHEREAS, a proposed budget for Public Utility District No. 1 of Snohomish County, Washington (the District ), was filed by the Commission of the District in accordance with the requirements of applicable law; and WHEREAS, after having given prior notice to the public in accordance with the requirements of applicable law, the Commission held public hearings to take testimony on issues relating to spending levels under consideration for the year 2017; and WHEREAS, after having considered staff s estimates of income for 2017 and estimates of expenditures, capital construction requirements, and projected use of reserve funds, and having considered the public testimony of those customers submitting and offering testimony, the Commission has concluded that the 2017 District budget summarized in Exhibit A hereto is fairly structured to meet the needs of the District and its customers. NOW, THEREFORE, BE IT RESOLVED by the Commission of Public Utility District No. 1 of Snohomish County, Washington, that the 2017 budget and the reserve transfers for Public Utility District No. 1 of Snohomish County, as summarized in the attached Exhibit A, is hereby adopted. 95/147

96 Resolution No PASSED AND APPROVED this 20th day of December, President Vice-President Secretary 96/147

97 2017 Budget - Exhibit A Resolution No. Operating Revenues Electric System Generation System Water System Retail Sales 619,876 41,482 11,251 Wholesale Sales 34, Other Operating Revenues 20, Total Operating Revenues 674,560 41,482 11,841 Operating Expenses Purchased Power/Water 343,723-2,400 Transmission & Ancillary 54, Operations & Maintenance (1) 175,675 6,513 5,688 Taxes 37, Depreciation 51,314 7,738 3,048 Total Operating Expenses 662,075 14,346 11,735 Net Operating Income 12,485 27, Other Income & Expense 9,019 1,443 1,052 Interest Charges (15,894) 7, Contributions 16,884-2,825 Net Income 22,494 21,312 3,239 Capital Expenditures (126,182) (34,098) (4,985) Debt Service Principal (9,839) (28,612) (2,025) Depreciation 51,314 7,738 3,048 Loan Repayments and Other 5, (927) Estimated Change in Reserves (56,812) (33,463) (1,650) Uses of Reserves Operating Reserve (1,100) - 1,650 Operating Reserve (Rebudgeted Items) 1, Jackson Relicensing Reserve Resource Reinvestment Reserve 9,700 10,252 - Construction Funds 47,112 22,618-56,812 33,463 1,650 (1) Operations and Maintenance Budget for the Electric System inlcudes 23.9 M in Energy Efficiency Expenditures 97/147

98 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 5A TITLE Consideration of a Motion Accepting the Annual Financial Planning and Budgeting Monitoring Report SUBMITTED FOR: Items for Individual Consideration Finance Division Glenn McPherson 8356 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Executive Limitation 4 Financial Planning and Budgeting List Attachments: Internal Monitoring Report Financial Planning and Budgeting (EL-4) 98/147

99 SNOHOMISH COUNTY PUD PUBLIC UTILITY DISTRICT NO. "1 GOVERNANCE INTERNAL MONITORING REPORT Report Date: December 20, 2016 Reporting Method: Policy Type: Executive Limitations ~ Executive Report D External Audit 0Direct Inspection Policy Title: Financial Planning and Budgeting (EL-4) Date of Policy: April 27, 1999 Frequency: Annually Global Policy Prohibition: The District's multi-year financial plan shall not deviate materially from the Board's Ends priorities or risk fiscal jeopardy. The District's annual budget shall not fail to be derived from a multi-year plan of at least five years. Interpretation: Staff should periodically prepare a multi-year financial plan that is consistent with the Board's Ends Policy, Executive Limitations, Governance Process and Board-General Manager Linkage. The General Manager's Proposed Budget should be consistent with the financial plan. Compliance: This report constitutes my assurance that, as reasonably interpreted, these conditions have not occurred and further, that the data submitted below are accurate as of this date, December 8, Signed~ ~~ \L.- - \'-\ - \6 Craig Coliar:eneraIMaTiaer Date Date Summary Data: A multi-year budget forecast, along with key assumptions, was provided and discussed with the Board as part of the November 8, 2016 and November 22, 2016 Proposed 2017 Budget public hearings. 1. Policy Prohibition: Accordingly, she or he shall not allow financial planning/budgeting which fails to include credible projection of revenues and expenses, separation of capital and operational items, cash flow, and disclosure of planning assumptions. Interpretation: The five-year budget forecast and proposed budget should be prepared with realistic projections of revenues and expenditures, and should include adequate disclosure of the major assumptions, components, and effect on reserves. Conclusion: This Executive Limitation was followed with no known exceptions. Summary Data: Staff provided the Board an updated budget forecast along with major assumptions during the November 8, 2016 and November 22, 2016 Proposed 2017 Budget public hearings. 99/147

100 2. Policy Prohibition: Accordingly, she or he shall not allow financial planning/budgeting which allows operating cash to drop below a safety reserve of less than 20 million at the end of any fiscal year. Interpretation: Five-year budget forecasts should be prepared with the assumption that operating reserves cannot drop below 20 million. Conclusion: Changes to the PUD's financial reserve policies in 2007 provided for operating reserve levels in excess of the original executive limitation level. Summary Data: In 2007, the Board adopted Resolution 5319 which amended the Carver Governance Policy for reserves. This amendment sets the minimum operating reserve at 90 days of non-power budgeted expenses; well above the original 20 million minimum. The forecast prepared for the Proposed 2017 Budget hearings included modest rate increases in April 2017, April 2019, and April 2021 to mitigate rising cost pressures, maintain debt service levels and to ensure that reserve levels remain at or above the policy levels established in Resolution Policy Prohibition: Accordingly, she or he shall not allow financial planning/budgeting which provides less for Board prerogatives during the year than is set forth in the Cost of Governance policy. Interpretation: The Board of Commissioners must be provided with budget resources to fulfill their policy-making role in accordance with the Governance model. Conclusion: This Executive Limitation was followed with no known exceptions. Summary Data: The Board of Commissioners budget was prepared by the Clerk of the Board based on Board input. 4. Policy Prohibition: Accordingly, she or he shall not allow financial planning/budgeting which allows Electric System year-end debt service coverage to fall below Interpretation: Five-year budget forecasts should be prepared with the assumption that debt service coverage for each year must be at least Conclusion: This Executive Limitation was followed in the budget forecast presented as part of the Proposed 2017 budget. Summary Data: The forecast prepared for the Proposed 2017 budget public hearings showed debt service coverage levels in the forecast years above Policy Prohibition: Accordingly, she or he shall not allow financial planning/budgeting which finances greater than forty percent (40%) of non-generation Electric System capital improvements within a fifteen-year period including the plan year. Interpretation: Five-year budget forecasts should be prepared with the assumption that bond proceeds for the fifteen-year period including the budget and five-year strategic forecast should not exceed 40% of capital expenditures during the same period /147

101 Conclusion: This Executive Limitation was followed with no known exceptions. Summary Data: The 2017 Proposed Budget overview provided during public hearing on November 22, 2016 indicated that the percentage of capital expenditures financed through bond proceeds will remain below the 40% level. 6. Policy Prohibition: Accordingly, she or he shall not allow financial planning/budgeting which plans for rate increases in excess of three percent (3%) in any year, or compound increases in excess of nine percent (9%) over any consecutive five year period. Interpretation: Five-year budget forecast should be prepared with the assumption that the District should not plan for retail rate increases greater than 3% in any year or cumulative rate increases of 9% over a five-year period. Conclusion: Changes to the PUD's policies allow for a Bonneville Power Administration Cost Adjustment Clause (Resolution 5440) in addition to general rate increases. Summary Data: The forecast prepared for the 2017 Proposed Budget public hearings reflect general rate increases of 2.9% April 2017, 2.9% April 2019, and 2.9% April In addition, the 2017 Proposed Budget reflects cost adjustment rate increases in October 2017 and 2019, and October 2021 in order to match BP A's projected wholesale rate increase in accordance with the Bonneville Power Administration Cost Adjustment Clause (Resolution 5440). 7. Policy Prohibition: Accordingly, she or he shall not allow financial planning/budgeting which fails to maintain annual spending on public purposes of three percent (3%) of Electric System revenue beginning in (Public purposes spending is defined as those expenditures related to conservation, weatherization, and renewable resources.) Interpretation: The budget forecast should be prepared with the assumption that the District should spend at least three-percent of retail energy sales on public purposes expenditures. Conclusion: This Executive Limitation was followed with no known exceptions. Summary Data: The 2017 Proposed Budget is in compliance with the Board's public purposes executive limitation. The limitation requires 21.5 Min public purposes spending, and the conservation program budget alone (23.9 M) exceeds that amount without considering investments in renewable resources /147

102 Monitoring Reports Feedback Form Q 1. Does the report help you make decisions about compliance with policy? Yes... 0 No... O Q5b. If no, would you prefer a higher level of summary or more detail? Q2. Does the report help you make decisions about interpretation of policy? Yes... 0 No... O Q6. Are you satisfied with the performance measures used in this report? Yes... O No... O Q3. Does the report help you make decisions about progress in implementing policy? Yes... 0 No... O Q7. What changes would you suggest for the next draft of the report? Q4. Does the method and frequency of reporting meet your needs? Yes... 0 No... O Q8. Any other comments? Q5a. Is the content included in this report at the appropriate level of detail? Yes... 0 No... O 4 102/147

103 BUSINESS OF THE COMMISSION Meeting Date: December 20, 2016 Agenda Item: 5B TITLE Consideration of a Resolution Authorizing the General Manager or his Designee to Execute Amendment No. 5 to the Electrical Output Sales Agreement Between the District and Hampton Lumber Mills-Washington, Inc. SUBMITTED FOR: Items for Individual Consideration Generation, Power, Rates & Transmission Tom DeBoer 1825 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned ACTION REQUIRED: Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process GP-3: Non-delegable, statutory duty of the Board. Public Utility District No. 1 of Snohomish County (the District ) and Hampton Lumber Mills- Washington, Inc. ( Hampton ) entered into a ten-year Electrical Output Sales Agreement ( Agreement ) in August 2006 to purchase 100 percent of the energy from Hampton s electrical generating unit ( Generator ) located at the Hampton Lumber Mill in Darrington (Resolution No. 5268). The Generator burns lumber mill wood residue to produce process steam for use at the mill and to produce electricity. The District has continued its support of the development of distributed generation within the District s service area, recognizing that local renewable resources offer advantages by, for example, avoiding transmission charges or deferring distribution system upgrades. In January 2009, the Parties executed Amendment No. 1 to cap negative energy prices. In the Fall of 2011, Amendment No. 2 was drafted to eliminate language in the 2006 Agreement that would have required Hampton to compensate the District if its day-ahead schedule was changed, in order to mitigate the impact of Bonneville Power Administration s ( BPA s ) Dispatchable 103/147

104 Energy Resource Balancing Service ( DERBS ) rate, effective on October 1, Amendment No. 2 was never executed, but the pertinent language was incorporated into Amendment No. 3. Amendment No. 3 (Resolution No. 5573) was executed in January 2012 for the 2012 through 2016 term and implemented: 1) a new pricing construct that recognized the value Hampton s renewable generating resource provides the PUD; 2) provisions that the contract price could be adjusted if the Hampton generator was found to not be an eligible renewable resource under the Washington state Energy Independence Act (Initiative 937); 3) Hampton would become responsible for certain BPA Transmission ancillary services charges; and 4) the option to extend the contract term in five year increments under mutually agreeable terms. The components that comprise the contract price include: a market price for energy; a tradeable REC value plus a distributed generation 2x REC multiplier value recognized under the Washington state Energy Independence Act (Initiative 937); value for avoided transmission and distribution losses; value for deferring system upgrade costs; and a generation capacity credit for the months of October through March. Further industry changes have occurred since the Agreement was originally signed in 2006 and amended in 2012: Wholesale electricity and REC market prices are lower in the Northwest than five years ago due to continued low natural gas prices and increased penetration of renewable resources; Amendment No. 5 provides Hampton with the option to choose a PUD-recalculated market price as an input to the overall contract pricing construct, applicable to the 2018 through 2021 period; The underlying generator capacity factors used in the contract pricing have been deemed rather than updating annually; and A change in law provision has been added to address any future change in law that could occur during the 2017 through 2021 period that could pose a financial burden on the District. Parties agree to work together to address, and if parties cannot resolve, then the District can terminate the contract by providing Hampton with 60 days notice. Staff values the benefits Hampton brings to the service territory and community, and believes it is in the best interest of the District to extend the contract term through 2021 under Amendment No. 5. Hampton s CEO Steve Zika, noted their acceptance of the contract terms and conditions in their letter dated December 9, List Attachments: Presentation Resolution Amendment No. 5 Redline to the Agreement to the Electrical Output Sales Agreement between the District and Hampton Lumber Mills-Washington 104/147 2

105 Proposed 5-Year Contract Extension with Hampton Lumber Mills Washington, Inc. of Darrington, WA Commission Meeting December 20, /147