PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY

PUBLIC UTILITY DISTRICT NO. 1 OF LEWIS COUNTY Board of Commissioners Meeting November 6, 2018

Public Utility District No. 1 of Lewis County Date Time 11/6/2018 10:00 AM Meeting called by Commissioner Dahlin Item # Item Owner 1 Call to Order President 2 Changes/Additions to Agenda President 3 Public Comments (Limit to 3 minutes per person) Public 4 Approval of Consent Agenda (All matters listed within the Consent Agenda have been distributed to each member of the Commission for reading and study, are considered to be routine, and will be enacted by one motion of the Commission with no separate discussion. If separate discussion is desired by any member of the Commission, that item will be removed from the Consent Agenda and placed on the Business Agenda by request.) a) Minutes of October 30, 2018 commission meeting b) Cowlitz Falls Project and Electric System vouchers c) Resolution No. 2824, Uncollectible Accounts 5 Business Agenda a) Project Share Recap a) Ford Break (5 Minutes) 6 Other Business Location 240 7 th Street, Morton, WA 98356 Davis 7 Management Report a) BPA TC-20 Settlement Agreement and BPA-20 Partial Transmission Rates Settlement Agreement 8 Meeting Reports a) Samuelson 9 Adjournment ***9:00 a.m. Workshop Agenda 9:00 a.m. Budget Workshop

The Board may meet in Executive Session for the purpose of discussing matters as authorized by RCW 42.30.110(1) such as, but not limited to: the sale or acquisition of real estate, reviewing negotiations on the performance of a publicly bid contract, receiving and evaluating complaints or charges against an officer or employee, evaluating the qualifications of an applicant or performance of an employee, and/or consulting with legal counsel on litigation or potential litigation. Announcement of Executive Session The regular meeting will recessed so that the Commissioners, and enter into an Executive Session for ( ) minutes until a.m. as authorized by RCW 42.30.110(1) section : (a) To consider matters affecting national security; (b) To consider the selection of a site or the acquisition of real estate by lease or purchase when public knowledge regarding such consideration would cause a likelihood of increased price; (c) To consider the minimum price at which real estate will be offered for sale or lease when public knowledge regarding such consideration would cause a likelihood of decreased price. However, final action selling or leasing public property shall be taken in a meeting open to the public; (d) To review negotiations on the performance of publicly bid contracts when public knowledge regarding such consideration would cause a likelihood of increased costs; (e) To consider, in the case of an export trading company, financial and commercial information supplied by private persons to the export trading company; (f) To receive and evaluate complaints or charges brought against a public officer or employee. However, upon the request of such officer or employee, a public hearing or a meeting open to the public shall be conducted upon such complaint or charge; (g) To evaluate the qualifications of an applicant for public employment or to review the performance of a public employee. However, subject to RCW42.30.140(4), discussion by a governing body of salaries, wages, and other conditions of employment to be generally applied within the agency shall occur in a meeting open to the public, and when a governing body elects to take final action hiring, setting the salary of an individual employee or class of employees, or discharging or disciplining an employee, that action shall be taken in a meeting open to the public; (h) To evaluate the qualifications of a candidate for appointment to elective office. However, any interview of such candidate and final action appointing a candidate to elective office shall be in a meeting open to the public; (i) To discuss with legal counsel representing the agency matters relating to agency enforcement actions, or to discuss with legal counsel representing the agency litigation or potential litigation to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party, when public knowledge regarding the discussion is likely to result in an adverse legal or financial consequence to the agency. This subsection (1)(i) does not permit a governing body to hold an executive session solely because an attorney representing the agency is present. For purposes of this subsection (1)(i), "potential litigation" means matters protected by RPC 1.6 or RCW 5.60.060(2)(a) concerning: (i) Litigation that has been specifically threatened to which the agency, the governing body, or a member acting in an official capacity is, or is likely to become, a party; (ii) Litigation that the agency reasonably believes may be commenced by or against the agency, the governing body, or a member acting in an official capacity; or (iii) Litigation or legal risks of a proposed action or current practice that the agency has identified when public discussion of the litigation or legal risks is likely to result in an adverse legal or financial consequence to the agency. Page 2

Commissioner s Calendar Upcoming Meetings, Events, Etc. 11/06/2018 to 02/28/2019

November 6, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. November 12, 2018 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia November 20, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. November 27, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. December 4, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. Stacy Davis 1 11/1/2018 8:05 AM

December 5, 2018 Wednesday 12:00 AM - 12:00 AM WPUDA Annual Conference -- Tulalip Resort Casino, Tulalip, WA December 6, 2018 Thursday All Day WPUDA Annual Conference -- Tulalip Resort Casino, Tulalip, WA Please See Above December 7, 2018 Friday 12:00 AM - 12:00 AM WPUDA Annual Conference -- Tulalip Resort Casino, Tulalip, WA Please See Above December 10, 2018 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia December 11, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis Stacy Davis 2 11/1/2018 8:05 AM

December 11, 2018 Continued Tuesday 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. December 12, 2018 Wednesday 6:00 PM - 9:00 PM Commissioner Lloyd Berg Retirement Celebration -- Kitsap Golf & Country Club Ballroom- 3885 NW Golf Club Hill Road, Bremerton, WA 98312 RSVP with payment by November 30 th to Corine Vichi at (360) 626 7709 Buffet Dinner $36.25/person make check payable to KPUD. December 13, 2018 Thursday 8:00 AM - 12:00 PM PPC Members Forum - Annual Meeting -- Sheraton Inn - Portland Airport December 18, 2018 Tuesday 9:00 AM - 10:00 AM Copy: Commissioner Workshop -- 1st Tuesday at Morton, all others at Chehalis 10:00 AM - 1:00 PM Copy: Commission Meeting -- 1st Tuesday in Morton, all others in Chehalis When a holiday falls on a Monday or Tuesday, that week s Commission Meeting and Workshop are canceled. December 25, 2018 Tuesday All Day Office Closed-Christmas December 31, 2018 Monday All Day New Year's Eve -- United States January 1, 2019 Tuesday All Day New Year's Day -- United States Stacy Davis 3 11/1/2018 8:05 AM

January 1, 2019 Continued Tuesday All Day Office Closed January 14, 2019 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia January 23, 2019 Wednesday 12:00 AM - 12:00 AM ENW Executive Board Meetings -- Olympia All Day ENW Board of Directors Meetings -- Olympia January 24, 2019 Thursday 12:00 AM - 12:00 AM ENW Executive Board Meetings -- Olympia Please See Above February 11, 2019 Monday 11:30 AM - 12:30 PM Chamber Meeting -- O'Blarney's in Centralia February 24, 2019 Sunday 12:00 AM - 12:00 AM APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. February 25, 2019 Monday All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above February 26, 2019 Tuesday All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above February 27, 2019 Wednesday All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above Stacy Davis 4 11/1/2018 8:05 AM

February 28, 2019 Thursday All Day All Day APPA Legislative Rally/Executive Committee and Board of Directors -- Washington D.C. Please See Above ENW Executive Board Meetings -- TBD If needed Stacy Davis 5 11/1/2018 8:05 AM

Changes/Additions to the Agenda

Public Comment Members of the public will have an opportunity to speak during the open public meeting. Please limit individual to a maximum of three (3) minutes.

Consent Agenda a) Minutes of October 30, 2018 Commission Meeting; b) Cowlitz Falls Project and Electric System vouchers; and c) Resolution No. 2824, Uncollectible Accounts

MINUTES OF THE MEETING OF COMMISSIONERS October 30, 2018 The regular meeting of the Commissioners of Public Utility District No. 1 of Lewis County was held in the Chehalis Office of the District on the above date at 10:00 a.m. Those present were Dean Dahlin, President and Tim Cournyer, Secretary. Also present were Chris Roden, General Manager; Rich Bauer, Treasurer; Brad Ford, Auditor; and Stacy Davis, Executive Assistant. Additional attendees included: Jeff Baine, IS Manager; Matt Samuelson, Power Supply Manager; Jeff Shupe, Engineering Manager; Luke Canfield, Power Supply/Energy Services Analyst; Damian Hernandez, Serviceman; Jim Womble, Safety Manager; Jennifer Bush, Customer Service Manager; Joe First, Cowlitz Falls Project Supervisor; Wendy Woody, Financial Analyst; Bryan Watt, Operations Manager; and Allen Unzelman, Attorney. Gary Kalich and Steve Grega, former employees, were also present. At 10:00 a.m., the regular meeting recessed for a five minute break. Ms. Davis led the flag salute. Mr. Grega spoke regarding the Cowlitz Falls Project north bank rock wall and Tacoma Power. Mr. Grega discussed the agreements with Tacoma Power regarding the construction of the Northshore Collector and the north bank rock wall as a concern from the beginning. Mr. Grega outlined the past work on the rock wall. Mr. Grega stated that the agreement with the Tacoma states that the area above the fish facility is Tacoma s responsibility and Mr. Grega suggested that the District compose a letter to Tacoma to remind them of their responsibility based on the agreement. Commissioner Cournyer moved to approve the Consent Agenda as presented. The motion was seconded by Commissioner Kostick. The Consent Agenda consisted of: a) Minutes of the October 23, 2018 Commission meeting; and

b) Electric Service vouchers numbered 178400 to and including 178526 totaling $555,606.06 and Cowlitz Falls Project vouchers numbered 32210 to and including 32222 totaling $48,771.11. Commissioner Dahlin supported the motion and it carried unanimously. Ms. Davis presented Resolution No. 2823, A Resolution Authorizing Closure of the Offices of the District for a Portion of the Afternoon on December 24, 2018. Commissioner Kostick moved to approve Resolution No. 2823 as presented. The motion was seconded by Commissioner Cournyer. Following discussion regarding early closure, Commissioner Dahlin supported the motion and it carried unanimously. Mr. Womble provided a recap of the items that have been created and updated with the Safety Program over the last five years. Mr. Womble stated that his last day with the District is scheduled for November 11, 2018 and he thanked the management and commissioners for their support of safety. Commissioner Dahlin, Kostick and Cournyer thanked Mr. Womble for his service to the District. Mr. Roden commented that Mr. Womble is one of the best safety managers and is a great mentor. Mr. Samuelson reported on the District s winter power portfolio position. He stated that the British Columbia gas pipeline rupture has created market uncertainty and the District is working to implement measures to position itself better for winter uncertainty. Mr. Samuelson noted that the pipeline is expected to be back in service at approximately 80% pressure by mid- November. Mr. Samuelson reviewed the weather outlook for the winter peak load with a weak El Nino forecasted. Mr. Unzelman provided a recap of RCW 54.24.010 allowing that, by resolution, the commission may designate some other person with financial experience, other than the county treasurer, as the Treasurer of the utility district. Mr. Unzelman further noted that the Auditor is

appointed by the Commission as noted in RCW 54.24.010(2). Mr. Unzelman and Mr. Roden noted that the recruitment of the CFO would proceed as normal hiring and the Commissioners would appoint an employee as the District s Treasurer whether it would be the new CFO or another employee with financial or fiscal matters experience. Mr. Bauer noted that the District does have a Deputy Treasurer and Deputy Auditor that were appointed by resolution as well. Mr. Roden discussed the voucher approval process and is looking to move to a cover sheet signature instead of signing every voucher. Commissioners Dahlin, Kostick and Cournyer concurred to streamline the voucher process to allow the Manager and the Auditor to only sign the voucher sheet cover pages instead of every voucher. Mr. Samuelson discussed current activities by the Governor s Orca Task Force as well as President Trump s executive order to move up the timeline by one year to complete the Biological Opinion of the Federal Hydro System. Mr. Samuelson announced that the District received the fully executed agreement for the Trans Alta Transitional Board grant in the amount of $1.08 million. Mr. Samuelson stated that a joint news release will be issued towards the end of the year. Mr. Shupe stated that the District is preparing for the repair of the Main Street Substation. Mr. Shupe further reported that the District has successfully coordinated safety measures with problem customers. Mr. Shupe further noted that NoaNet is completing fiber splicing and the need for a potential as-built for our fiber system. Mr. Shupe stated that new development work is underway in the area near Home Depot. The District received interest for a potential load of approximately 11 MW for new development opportunities near Braun Northwest, Mr. Shupe noted that the 11 MW would trigger a build of a new substation in that area. Mr. Watt reported on the repairs of the District s 100 ft. bucket truck and noted that the vehicle is back in service.

Commissioner Kostick reported on the American Public Power Association (APPA) Policy Makers Board meeting that he attended last week. Commissioner Dahlin reported on the Energy Northwest meeting that he attended last week. There being no further business, Commission Cournyer moved to adjourn. The motion was seconded by Commissioner Kostick. Commissioner Dahlin supported the motion and it carried unanimously. ATTEST: Dean L. Dahlin, President Ben M. Kostick, Vice President Tim Cournyer, Secretary

RESOLUTION NO. 2824 A RESOLUTION CHARGING OFF UNCOLLECTIBLE ACCOUNTS WHEREAS, the following delinquent accounts have been carried in the discontinued ledger for a period of 90 days or more, and all collection efforts reasonably possible have been made; and WHEREAS, the Commissioners have considered the following delinquent accounts for September and October 2018 totaling $23,557.20 find them to be uncollectible and unsecured at this time, and have determined that the District can no longer treat collections of these accounts as likely. Payment Amount Customer Number $ 0.04 146660 $ 0.08 115606 $ 0.50 109836 $ 4.30 119871 $ 4.47 156776 $ 10.06 162621 $ 25.82 122404 $ 33.15 158482 $ 44.60 161764 $ 55.60 162345 $ 67.55 154620 $ 78.72 160549 $ 91.98 164448 $ 104.09 153364 $ 109.25 161655 $ 110.27 165046 $ 110.44 105209 $ 115.92 105819 $ 127.40 159464 $ 129.04 106829 $ 135.12 161065 $ 135.97 162410 $ 137.69 131812 $ 140.98 104951 $ 144.01 103104

$ 146.31 155618 $ 152.66 105281 $ 169.85 120424 $ 170.71 128970 $ 179.00 127633 $ 197.55 117774 $ 198.82 152767 $ 200.00 160492 $ 214.67 158251 $ 218.63 131381 $ 223.38 159025 $ 253.56 103139 $ 256.14 156093 $ 262.84 159892 $ 296.29 151712 $ 308.60 129382 $ 326.28 156607 $ 327.40 120714 $ 329.34 159304 $ 335.11 125593 $ 345.26 161151 $ 349.57 164170 $ 351.91 108347 $ 390.43 127791 $ 400.96 155529 $ 401.52 131125 $ 402.77 160344 $ 411.18 162468 $ 412.90 154178 $ 429.18 112865 $ 484.80 122310 $ 518.65 130476 $ 523.02 152949 $ 548.25 162478 $ 562.04 107301 $ 564.60 108645 $ 611.36 124448

$ 644.19 131519 $ 672.36 108072 $ 673.16 100907 $ 709.84 101604 $ 779.24 118184 $ 835.10 156517 $ 914.41 109796 $ 921.29 152239 $ 955.17 153205 $ 962.92 161333 $ 1,096.93 109567 $ 23,557.20 TOTAL NOW, THEREFORE, BE IT RESOLVED that the accounts listed above be closed and the balances due Public Utility District No. 1 of Lewis County from these accounts be charged to Uncollectible Accounts. APPROVED AND ADOPTED by the Commissioners of Public Utility District No. 1 of Lewis County this 6 th day of November 2018. ATTEST: Dean L. Dahlin, President Ben M. Kostick, Vice President Tim Cournyer, Secretary

Business Agenda a) Project Share Recap

LEWIS COUNTY PUD #1 - PROJECT SHARE ACTIVITY AND BALANCE - COMMUNITY ACTION COUNCIL Information Based on Calendar Year Community PUD Customer Action Contributions Donations Expenditures Balance Balance 12/31/2013 $ 24,357.61 PUD Contribution 2014 $ 25,000.00 Customer Donations 2014 $ 4,921.45 Expenditures 2014 $ 25,950.00 Balance 12/31/2014 $ 28,329.06 PUD Contribution 2015 $ 25,000.00 Customer Donations 2015 $ 4,094.45 Expenditures 2015 $ 25,800.00 Balance 12/31/2015 $ 31,623.51 PUD Contribution 2016 $ 25,000.00 Customer Donations 2016 $ 4,290.88 Expenditures 2016 $ 21,425.00 Balance 12/31/2016 $ 39,489.39 PUD Contribution 2017 $ 25,000.00 Customer Donations 2017 $ 2,772.15 Expenditures 2017 $ 33,600.00 Balance 9/30/2017 $ 33,661.54 PUD Contribution 2018 to be determined Customer Donations Thru September $ 3,005.78 Expenditures Thru September $ 23,275.00 Balance 9/30/2018 $ 13,392.32

PROJECT SHARE BREAKDOWN WRITE OFF AS A PERCENTAGE OF REVENUE Information Based on Calendar Year NET WRITE OFF AS A PERCENT OF REVENUE Write off for 2014 $188,424 Amounts from collection agencies ($12,880) Net Write Off $175,544 Revenue for 2014 $57,024,509 Net write off as a percent of revenue 2014 0.3078% Write off for 2015 $149,340 Amounts from collection agencies ($41,789) Net Write Off $107,551 Revenue for 2015 $57,670,013 Net write off as a percent of revenue 2015 0.1865% Write off for 2016 $145,315 Amounts from collection agencies ($33,273) Net Write Off $112,042 Revenue for 2016 $61,183,659 Net write off as a percent of revenue 2016 0.1831% Write off for 2017 $235,403 Amounts from collection agencies ($36,805) Net Write Off $198,598 Revenue for 2017 $66,335,439 Net write off as a percent of revenue 2017 0.2994% Write off thru September 2018 $99,874 Amounts from collection agencies ($35,067) Net Write Off $64,807 Revenue thru September 2018 $51,982,705 Net write off as a percent of revenue 2018 0.1247%

Other Business

Management Report a) BPA TC-20 Settlement Agreement and BPA-20 Partial Transmission Rates Settlement Agreement

Meeting Reports Commissioners, Manager, and/or Management Team will provide reports of meetings that they participated in or are pertinent to the operation of the District