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PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY COMMISSIONERS’ MEETING
DRAFT AGENDA March 26, 2019
4:30 PM
PLEDGE OF ALLEGIANCE
CONSENT AGENDA 1. Approval of Agenda 03/26/19 2. Approval of Minutes 03/12/19 Commission Meeting 3. Ratification of Vouchers 03/19/19 4. Approval of Vouchers 03/19/19 5. Project Acceptance – Best Road, Rudene Road to Summers Drive (Mount Vernon)
TREASURER’S REPORT February 2019
AUDIENCE COMMENTS
OLD BUSINESS 6. Manager’s Report 7. Quarterly Report – IT Department
NEW BUSINESS 8. Approve 2019 CIP Mid-Year Budget Modification –Action 9. Approve Doug Streeter, CPA Contract Auditing Services Modification #2 –Action
10. Award Tierra ROW Acquisition Consultant-Judy to MV Transmission Line Phase 2- Action 11. Award Carollo Condition Assessment Contract-Judy Reservoir Water Treatment Plant-Action 12. Award R&E Inspection Services Contract-College Way, Freeway Drive East Pipe Replacement-
Action 13. Authorize Task Order #6 RH2 Engineering-Judy Reservoir WTP Raw Water Pump Station
Replacement Design, Permitting, & Services During Construction-Action 14. Award Faber Conway I-5 Crossing Project – Action 15. PUD Campus Assessment/Replacement - Establish Schedule for Identification of Potential Options-
Action
MISCELLANEOUS
COMMISSIONER COMMENTS
ADJOURNMENT
JUDY RESERVOIR ELEVATION
Commission Meeting 1 March 12, 2019
MINUTES OF THE REGULAR MEETING OF THE COMMISSION PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY, WASHINGTON
March 12, 2019
The regular meeting of the Commission of Public Utility District No. 1 was held in the Aqua Room of the utility located at 1415 Freeway Drive, Mount Vernon, Washington, on March 12, 2019.
The meeting was called to order at 4:30 PM. Those Commissioners in attendance were: Eron Berg, President; Al Littlefield, Vice President and Joe Lindquist, Secretary. Also in attendance were: George Sidhu, General Manager; Peter Gilbert, Attorney, Mark Handzlik, Engineering Manager, Sally Saxton, Treasurer and Kim Carpenter, Clerk of the Board; Audience: Judy Littlefield, Les Walker, Ellen Bynum (Friends of Skagit County); District Employees: Mike Fox, Kevin Tate, Mark Semrau, Brian Henshaw, Damon Schwetz, Kathy White, Jay Sedivy and Luis Gonzalez.
Commissioner Berg led the Pledge of Allegiance.
Commissioner Lindquist moved to approve the Consent Agenda for March 12, 2019 1. Approval of Agenda 03/12/19 2. Approval of Minutes 03/05/19 Commission Meeting 3. Approval of Vouchers 03/12/19
No. 2848-Voucher Nos. 14928-14972 ($243,460.90) No. 2849-Voucher Nos. 14973-14973 ($1,513.50)
The motion passed.
Treasurer Saxton presented the Treasurer’s Report for the month of January 2019.
Under Audience Comments, Ellen Bynum, (Friends of Skagit County 110 N 1st Street, Mount Vernon) commented on conservation and reserve elements and asked about the District’s buildable water supply plan over the next 5-20 years; Commissioner Berg suggested that a starting point would be for Manager Sidhu to orient her to the District’s Water System Plan and thanked her for her comments.
Under Old Business:
4. Manager’s Report Manager Sidhu reported on the following items:
• Reminder-Commissioner Orientation Work Session 03-19-19 at 4:30 PM
• District was approved for the L&I Retrospective Rating Program and should help the District receive refunds on L&I premiums.
• Damon Schwetz –new Maintenance Supervisor. Damon began work with the District in 2011 in Construction and moved to the position of Inspector in 2014 and has now moved in to the Maintenance Supervisor position. Damon thanked Manager Sidhu for the opportunity to represent the District and looks
Agenda Item #2
Commission Meeting 2 March 12, 2019
forward to bringing positivity, improved communication and a great work ethic to his department.
5. Quarterly Report – Operations Operations Manager Fox commented that Damon was an outstanding choice for Maintenance Superintendent. Operations Manager Fox presented the quarterly report for the Operations Department, including updates regarding Skagit River Diversion pump station maintenance; positive DOH Sanitary Surveys, condition assessment, HVAC completion, new floors, painting and diesel tank at the WTP; new equipment; results of the recent Best Tasting Water competition (Alderwood); Best Road water quality issues; reservoir cleaning invitation to bid; Division Street security lighting and security of all sites; and flushing information will be posted on the District’s website. A brief discussion ensued regarding various aspects of the report.
Under New Business:
6. Removal of Capital Assets –Action Commissioner Lindquist moved to retire asset numbers 248, 253, and 255 from the fixed asset ledger. The motion passed.
7. Safety Practice & Procedure (SP&P) #3002 – Discussion Manager Sidhu stated that District Policy #1026 Safety Requirement and Commitment to Safety was revised at the meeting of January 22 and outlined the creation of SP&P’s to better outline and administer the District’s overall safety program. Safety/Risk Coordinator Sedivy reviewed the proposed Safety Practice & Procedure #3002. Manager Sidhu stated that the SP&P is for review and no action is required of the Commission. A brief discussion ensued.
8. Interlocal Agreement with Del Mar Community Services, Inc. - Potential Action Manager Sidhu stated that the proposed agreement has been reviewed by Del Mar and by Attorney Gilbert. Attorney Gilbert indicated proposed language corrections changes on Pages 2 & 6. Discussion ensued regarding the proposed agreement and revisions. Commissioner Littlefield moved to approve the Agreement with Del Mar Community with the revisions as suggested by Attorney Gilbert. The motion passed.
Under Commissioner Comments, Commissioner Lindquist reported he would be attending WA PUD Association (WPUDA) new Commissioner training in Olympia this week.
Commissioner Littlefield reported he would be attending WPUDA meetings this week as well.
Having no further business to come before the Board, Commissioner Berg adjourned the meeting of March 12, 2019 at 4:59 PM.
Respectfully submitted:
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Commission Meeting 3 March 12, 2019
Kim Carpenter Clerk of the Board
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%41% General Revenue Fund $7,166,451 Local Govt Investment Pool $15,098,424 85%0% Capital Project Fund 0 Cash 88,537 1%
21% Construction Fund 3,705,632 Govt Agencies/ Securities 2,500,000 14%21% System Development Fund 3,724,630 0%9% Debt Service Fund 1,631,9198% Bond Funds 1,458,329
100% Total Funds $17,686,961 Total Funds $17,686,961 100%
##
PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY
TREASURER REPORT
AS OF FEBRUARY 28, 2019
Balance of District Funds Investment of District Funds
General Revenue Fund
Capital Project Fund
Construction Fund
System Development Fund
Debt Service Fund
Bond Funds
District Fund Segments
Local Govt Investment Pool
Cash
Govt Agencies/ Securities
Investment of District Funds
470,000
480,000
490,000
500,000
510,000
970,000
980,000
990,000
1,000,000
1,010,000
De
c
Jan
Feb
Mar
Ap
r
May Jun
Jul
Au
g
Sep
Oct
No
v
De
c
Market Value vs. Face Value of Government Securities
Fed Natl Mtg Assn (mat10/19)
Resolution Funding Corp(mat 7/20)
Face Value
Fed Natl Mtg Assn (mat8/19) $500,000
0
0.5
1
1.5
2
2.5
3
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Inte
rest
Rat
e
Rates of Investment Interest Received
FNMA LGIP RFC FNMA
2018 2017 2016
REVENUE FUND COMBINED COMBINED COMBINED COMBINEDCapital Projects Restricted Debt Reserve Bond Sinking Bond Reserve
Resources:External Revenue:
Water Customer Receipts 2,104,076 2,104,076 1,750,114 1,619,182 1,444,422System Development Fees 83,385 83,385 128,326 106,103 117,005Capital Contributions 153,695 153,695 97,929 87,194 48,079Grants 0 0 0 0LUD Assessments, Interest, Penalties 6,937 6,937 4,707 6,580 23,443Investment Income 12,587 8,839 6,765 1,835 234 1,943 32,202 21,891 8,833 5,892Non-Operating Revenues 1,748 1,748 3,337 11,287 17,075
Total External Revenue 2,272,106 0 8,839 90,150 1,835 7,172 1,943 2,382,044 2,006,304 1,839,179 1,655,915
Debt Proceeds:Debt Proceeds - DWSRF Loan Draws 0 1,962,004 1,289,730 0Debt Proceeds - Dept. of Ecology Loan 0 0 0 0Debt Proceeds - Bonds 0 0 0 0
Total Debt Proceeds 0 0 0 0 0 0 0 0 1,962,004 1,289,730 0
Transfers from Other Funds 0 0 0 0 267,224 0 0 267,224 281,179 285,904 263,449
Total Revenue 2,272,106 0 8,839 90,150 269,059 7,172 1,943 2,649,268 4,249,487 3,414,813 1,919,364
Operating Expenditures:Operations and Maintenance 1,034,087 1,034,087 967,576 829,345 677,649Utility Taxes 103,789 103,789 81,209 78,769 61,974
Total Operating Expenditures 1,137,876 0 0 0 0 0 0 1,137,876 1,048,786 908,114 739,623
Capital Expenditures:Capital Projects 176,114 892,657 1,068,771 536,583 1,183,441 984,774
Total Capital Expenditures 176,114 0 892,657 0 0 0 0 1,068,771 536,583 1,183,441 984,774
Debt Service Payments:Interest Expense 0 0 0 0 0Federal Tax Credit for 2009B Bonds 0 0 0 0 0Principal Payments 0 0 0 0 0
Total Debt Service Payments 0 0 0 0 0 0 0 0 0 0 0
Transfers to Other Funds 267,224 0 0 0 0 0 0 267,224 281,179 285,904 263,449
Total Expenditures 1,581,215 0 892,657 0 0 0 0 2,473,872 1,866,548 2,377,459 1,987,846
Increase (Decrease) in Fund Balance 690,891.61 0 (883,818) 90,150 269,059 7,172 1,943 175,396 2,382,940 1,037,354 (68,482)
Services sold:
ERU's 17 30 26 15Services 10 24 22 24Re-Activations (under 10 years) 0 2 3 4Re-Activations (over 10 years) 0 0 0 0
PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY
TREASURER REPORT
For the month ending February 28, 2019
CAPITAL PROJECT FUND
SYSTEM DEVELOPMENT
FUND DEBT SERVICE FUND
16.67% YTD 2018 YTD 2017 YTD 2016
REVENUE FUND COMBINED COMBINED COMBINED COMBINEDCapital Projects Restricted Debt Reserve Bond Sinking Bond Reserve
connections: 25,928 25,157 24,853 24,541Resources:
External Revenue:Water Customer Receipts 3,766,440 3,766,440 24,833,720 15.17% 3,434,293 3,271,328 2,912,991System Development Fees 205,690 205,690 1,595,000 12.90% 265,514 222,876 182,347Capital Contributions 252,188 252,188 1,599,500 15.77% 285,568 205,600 96,157Grants 0 0 0 0 0LUD Assessments, Interest, Penalties 13,234 13,234 238,000 5.56% 13,339 81,447 46,886Investment Income 26,337 18,624 13,997 3,845 456 4,069 67,328 170,200 39.56% 40,168 18,565 8,804Non-Operating Revenues 35,518 35,518 269,774 13.17% 6,109 47,869 34,149
Total External Revenue 4,080,484 0 18,624 219,687 3,845 13,690 4,069 4,340,398 28,706,194 15.12% 4,044,991 3,847,683 3,281,335
Debt Proceeds:Debt Proceeds - DWSRF Loan Draws 0 1,112,100 0.00% 1,962,004 1,289,730 0Debt Proceeds - Dept. of Ecology Loan 0 0 0 0 0Debt Proceeds - Bonds 0 4,000,000 0.00% 0 0 0
Total Debt Proceeds 0 0 0 0 0 0 0 0 5,112,100 0.00% 1,962,004 1,289,730 0
Transfers from Other Funds 132,367 0 0 0 534,967 0 0 667,334 5,279,400 12.64% 558,431 571,808 526,898
Total Revenue 4,212,851 0 18,624 219,687 538,812 13,690 4,069 5,007,732 39,097,694 12.81% 6,565,427 5,709,221 3,808,234
Uses:Operating Expenditures:
Operations and Maintenance 1,872,271 1,872,271 12,674,367 14.77% 1,811,637 1,663,864 1,354,148Utility and Excise Taxes 185,623 185,623 1,190,000 15.60% 184,486 159,259 123,948
Total Operating Expenditures 2,057,894 0 0 0 0 0 0 2,057,894 13,864,367 14.84% 1,996,123 1,823,123 1,478,096
Capital Expenditures:Capital Projects 276,848 933,109 1,209,957 19,942,336 6.07% 1,126,921 2,245,761 1,541,076
Total Capital Expenditures 276,848 0 933,109 0 0 0 0 1,209,957 19,942,336 6.07% 1,126,921 2,245,761 1,541,076
Debt Service Payments:Interest Expense 132,367 132,367 630,930 20.98% 91,474 133,750 155,257Federal Tax Credit for 2009B Bonds 0 0 (64,048) 0.00% 0 0 0Principal Payments 0 0 2,768,048 0.00% 0 0 0
Total Debt Service Payments 132,367 0 0 0 0 0 0 132,367 3,334,930 3.97% 91,474 133,750 155,257
Transfers to Other Funds 534,967 0 0 0 132,367 0 0 667,334 5,279,400 12.64% 558,431 571,808 526,898
Total Expenditures 3,002,076 0 933,109 0 132,367 0 0 4,067,552 42,421,033 9.59% 3,772,949 4,774,442 3,701,327
Increase (Decrease) in Fund Balance 1,210,775 0 (914,485) 219,687 406,445 13,690 4,069 940,180 2,792,478 934,779 106,907
Services sold:
ERU's 42 60 52 30Services 33 50 47 38Re-Activations (under 10 years) 2 8 13 10Re-Activations (over 10 years) 0 0 0 0
ANNUAL BUDGET
PERCENTAGE OF BUDGET REALIZED
For the two months ending February 28, 2019
PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY
TREASURER REPORT
CAPITAL PROJECT FUND DEBT SERVICE FUND
SYSTEM DEVELOPMENT
FUND
Coupon Rates Current Rate Mature Date Beg Bal Interest Rates Mature Date Beg Bal Interest Rates Mature Date Beg Bal Interest Rates Mature Date Beg Bal2009B BAB 2.7%* - 3.79%* 3.66% Jul 2029 $3,660,000 2018 Gilligan Cr Property 2.00% Oct 2038 $1,156,612 2001 SRD 0.50% Jul 2021 $10,000,000 2000 Clearwell 1.50% Oct 2021 $1,803,3602016 Revenue 2.65% - 10.00% 2.65% Jul 2036 $6,300,000 2002 WTP Controls 0.50% Jul 2022 $10,000,000 2000 SVV Distribution 1.50% Oct 2021 $704,0702017 Revenue 2.65% - 10.00% 2.65% Jul 2037 $4,200,000 2012 Josh Wilson Rd 0.25% Jun 2031 $3,342,154 2000 SVV Controls 1.50% Oct 2021 $64,619
2001 Transmission Line 1.50% Oct 2022 $1,758,4802001 WTP Controls 1.50% Oct 2022 $77,5202015 Division St Tank Const 1.50% Oct 2037 $10,004,0502018 Mountain View Consol 1.50% $1,224,221
Year Principal Interest Principal Interest Interest Rate Principal Interest Principal Interest Interest Rate Total*(after 35% tax credit)
2019 660,997 383,541 3.72% 24,002 11,998 2.00% 1,281,201 25,115 0.25% 0.50% 766,224 156,264 1.50% $3,309,3442020 681,615 365,842 3.79% 49,502 22,499 2.00% 1,281,201 19,150 0.25% 0.50% 766,225 144,775 1.50% $3,330,8092021 703,905 344,087 3.79% 50,501 21,500 2.00% 1,281,201 13,185 0.25% 0.50% 766,224 133,281 1.50% $3,313,8842022 720,832 322,318 3.79% 51,520 20,481 2.00% 738,777 7,220 0.25% 0.50% 615,909 121,784 1.50% $2,598,8402023 748,079 300,038 3.79% 52,560 19,441 2.00% 176,282 3,966 0.25% 500,202 112,546 1.50% $1,913,1162024 770,094 277,424 3.79% 53,621 18,380 2.00% 176,282 3,526 0.25% 500,203 105,043 1.50% $1,904,5722025 793,555 252,985 3.79% 54,703 17,298 2.00% 176,282 3,085 0.25% 500,203 97,539 1.50% $1,895,6502026 816,816 228,368 3.79% 55,807 16,194 2.00% 176,282 2,644 0.25% 500,202 90,036 1.50% $1,886,3512027 840,433 203,015 10.00% 56,934 15,067 2.00% 176,282 2,204 0.25% 500,203 82,533 1.50% $1,876,6712028 869,002 177,332 10.00% 58,083 13,918 2.00% 176,282 1,763 0.25% 500,203 75,030 1.50% $1,871,6132029 893,763 149,889 10.00% 59,255 12,746 2.00% 176,282 1,322 0.25% 500,203 67,527 1.50% $1,860,9882030 563,508 122,084 60,451 11,550 2.00% 176,282 881 0.25% 500,203 60,024 1.50% $1,494,9842031 578,648 106,944 61,672 10,330 2.00% 176,282 441 0.25% 500,202 52,521 1.50% $1,487,0402032 593,945 91,647 62,916 9,085 2.00% 500,202 45,018 1.50% $1,302,8142033 610,153 75,439 64,186 7,815 2.00% 500,203 37,515 1.50% $1,295,3112034 626,547 59,045 65,482 6,519 2.00% 500,203 30,012 1.50% $1,287,8082035 643,381 42,211 66,804 5,198 2.00% 500,202 22,509 1.50% $1,280,3052036 660,599 24,993 68,152 3,849 2.00% 500,203 15,006 1.50% $1,272,8012037 267,064 7,176 69,528 2,474 2.00% 500,202 7,503 1.50% $853,9462038 70,931 1,070 2.00% $72,0012039 $0
$13,042,935 $3,534,378 1,156,612 247,412 6,168,922 84,502 $10,417,620 $1,456,468 $36,108,849
Total Principal Outstanding: $30,786,089$ Change from previous month: Total Interest Outstanding: 5,322,760
Total Debt Repayment: $36,108,849
2018 Weighted Interest Rate: 1.58%
10.00%
10.00%10.00%10.00%10.00%10.00%10.00%
Department of Ecology Loan Debt
10.00%
2.65%2.65%2.65%2.65%2.65%2.65%2.65%2.65%3.79%3.79%3.79%
SKAGIT PUD DEBT REPAYMENT AMOUNTSAS OF FEBRUARY 28, 2019
Senior Lien Bond Debt Public Works Trust Fund Loan Debt Drinking Water State Revolving Fund Loan Debt
Interest Rate Range Interest Rate Range
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3/26 Commission Meeting
3/26 Establish Project Schedule & Expectations
3/26 Establish Geographical Study Area
3/26 Discuss Site Selection Criteria List
3/26 Discuss Site Selection Criteria List-Long List Exclusion Values
4/2 Commission Workshop
4/2 Establish Long List Exclusion Values
4/5 Preliminary Headquarters Valuations (NVG)
4/9 Commission Meeting (Driftmier/NVG)
4/9 Discuss Weighting Values for Short List
4/9 Discuss Preliminary Headquarters Valuations
4/10 Draft Long List (NVG)
4/15 Revised Long List (NVG)
4/16 Commission Workshop (Driftmier)
4/16 Establish Weighting Values for Short List
4/16 Introduce Long List
4/23 Commission Meeting (NVG)
4/23 Establish Long List
4/30 Draft Real Estate Report-Short List & HQ Marketability Study (NVG)
5/3 Revised Real Estate Report-Short List & HQ Marketability Study (NVG)
5/7 Commission Workshop (NVG)
5/7 Discuss Short List & Real Estate Report
5/14 Commission Meeting (NVG)
5/14 Establish Short List
6/14 Draft Options Analysis Report (Driftmier)
6/21 Revised Options Analysis Report (Driftmier)
6/25 Commission Meeting (Driftmier)
6/25 Discuss Options Analysis Report
7/9 Commission Meeting (Driftmier)
7/9 Establish selected Option
W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S M T W T F S S7, '19 Mar 24, '19 Mar 31, '19 Apr 7, '19 Apr 14, '19 Apr 21, '19 Apr 28, '19 May 5, '19 May 12, '19 May 19, '19 May 26, '19 Jun 2, '19 Jun 9, '19 Jun 16, '19 Jun 23, '19 Jun 30, '19 Jul 7, '19 Jul 14, '19 Jul 21, '19 J
District Office Feasibility Project - Representative Acquisition Site Fri 3/22/19
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3/26 Commission Meeting
3/26 Establish Project Schedule & Expectations
3/26 Establish Geographical Study Area
3/26 Discuss Site Selection Criteria List
3/26 Discuss Site Selection Criteria List-Long List Exclusion Values
4/2 Commission Workshop
4/2 Establish Long List Exclusion Values
4/5 Preliminary Headquarters Valuations (NVG)
4/9 Commission Meeting (Driftmier/NVG)
4/9 Discuss Weighting Values for Short List
4/9 Discuss Preliminary Headquarters Valuations
4/10 Draft Long List (NVG)
4/15 Revised Long List (NVG)
4/16 Commission Workshop (Driftmier)
4/16 Establish Weighting Values for Short List
4/16 Introduce Long List
4/23 Commission Meeting (NVG)
4/23 Establish Long List
4/30 Draft Real Estate Report-Short List & HQ Marketability Study (NVG)
5/3 Revised Draft Real Estate Report-Short List & HQ Marketability Study (NVG)
5/7 Commission Workshop (NVG)
5/7 Discuss Draft Short List & Real Estate Report
7/16 Commission Meeting (NVG)
7/16 Establish Short List
8/16 Draft Options Analysis Report (Driftmier)
8/23 Revised Options Analysis Report (Driftmier)
8/27 Commission Meeting (Driftmier)
8/27 Discuss Options Analysis Report
9/10 Commission Meeting (Driftmier)
9/10 Establish selected Option
Mar Apr May Jun Jul Aug Sep OctQtr 2, 2019 Qtr 3, 2019 Qtr 4, 2019
District Office Feasibility Project - Focused New Site Option Thu 3/21/19
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Skagit PUD March, 2019 Project #21726
_____________________________________________________________________________________ The Driftmier Architects, P.S. Page 1
Site Criteria List • Cost
o Purchase/Sale o Construction o Design & Permitting o Labor & gas for driving
• Existing utilities o Power o Water o Sewer o Telecom
• Drive Times o Proximity to I-5 o Proximity to current facility o Proximity to water treatment facility o Average response time from facility to all customers o Average employee commute time o Ease for customers to pay bills in person
• Site Physical Characteristics o Topography o Wetlands o Previously developed or green field o Forested vs previously logged or developed
• Access to site o Road width o Traffic Signals o Multiple access points
• Out of floodplain • Size • Existing buildings on site • Permitted use, conditional use or variance required • Availability for purchase • Neighborhood compatibility (including adjacencies)
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