Safety Report April 2021 - Grant PUD

Safety ReportApril 2021

Injuries Reported

Date Injury Description Cause(s) Prevention

3/3/21 Knee

While descending the stairs toward the valve pit, the bottom stair was missed resulting in a shock to the right knee. After further evaluation of the incident, by the Supervisor and employee it was determined that vision in front of the feet was obscured due to wearing a face mask.

Situational Awareness

Employees ascending or descending stairs should always use the handrails. Safety glasses could have been removed while on stairs.

3/9/21 BackWhile sitting on the tail gate of a service truck an employee got up to go into the office. As they got up and turned a sharp pain went shooting through the lower back.

Ergonomics and body position Flex and Stretch prior to performing work.

Monthly and Year to Date

2021 Month YTD

Total Incidents Reported 2 9

Recordable Case(s) 0 3

Restricted Duty Case(s) 0 1

Lost Workday Case(s) 0 0

Vehicle Incidents

Date Vehicle Driver’s Account: Prevention3/10/21 Unknown Gate ???

3/19/21 #522

Employee right rear tire rubbed against a POV (privately owned vehicle) and left mark on the fender while in a parking lot. Employee saw nobody in the area and, after waiting for several minutes, left a note on the window and continued driving to location of work.

Ensure sufficient clearance while parking.

3/22/21 #T525

Backhoe T525 was being driven back from work location across circle field road to parking area to get loaded back on trailer. While driving window on door started to open, reached to grab handle but was too late, wind caught and swung window open smashing into the back side window shattering both windows.

Ensure equipment and load is properly secured prior to moving.

3/29/21 #VH0379While stopped at a stop light, an employee reached over to close the lid on a laptop, it fell off the console at hit the gas pedal. The truck then lunged forward at hit the vehicle in front of them, resulting in damage to that vehicle.

Situational awareness

Close Calls

Date Location Description

3/1/2021 Burke Substation

Switching transmission devices with known faulty operation apparatus and or older equipment that may or may not have been maintained in the past. Scada to several MOD's that are not functional to make it safe to do proper switching. Switching orders had to be changed to accommodate the abnormal equipment in the field. All devices had been reported in the past to prevent an interruption in switching or emergency.

3/10/2021 Wanapum Dam Operations personnel observed an electrical engineering employee attempting to open an electrical cabinet that had energized equipment inside.

3/15/2021 ML Backup Control Center

Employee noticed a 16oz Crystal Geyser water bottle in the MLCC cleaning closet filled with blue liquid. "Virex" was written in sharpie on the side of the bottle. There were no hazard labels on the bottle.

3/24/2021 Priest Rapids During a pre-startup inspection of Unit #2 at Priest Rapids a 12" pry bar was found in the air housing. It was great work by a Priest Rapids Operator to see the pry bar and remove it.

Close Calls

Date Location Description

3/25/2021 WMC

An employee reported a safety concern about the use of ethylene oxide in the manufacture of the test kits being utilized for Grant PUD’s antigen testing program. We highly value this ”See Something Say Something” notification and in response have suspended antigen testing until the safety of the test kits is determined.

3/26/2021 Sand Dunes Substation

Band holding spray tank had rusted through at the bracket area and broke. District employee was at a job site and noticed loose strap. Tank was empty at the time broken strap was found.

3/28/2021 HOB Two 25" light poles at the HOB broke and fell over during the last windstorm. They were taken out of service and removed.

3/30/2021 Wanapum DamIt was noticed by the crew during pre-crane inspection that the outrigger pads we use for the crane pick we were about to use had dry rot in them. The job was stopped, and a plan was devised to remedy the problem.

Contractor Close Calls, Injuries & Incidents

Date Location Description3/8/2021 Jackson Creek At Jackson Creek Fish Camp a contractor fell asleep while driving causing a collision with a barrier rock on the access

road. The driver was not injured but the vehicle was severely damaged, and the barrier rock was displaced.

3/16/2021 Burke SubstationWhile a contractor was pulling in some wire inside the control house the wire cart fell over landing on one of the contractor's foot. The individual was evaluated and is ok. They moved the wire to a lower rack of the cart so it's not top heavy and tied the cart off so that it can not tip over again.

3/17/2021 Moses Lake

A drop crew was preparing to install a service drop at a home in Moses Lake. The crew needed to install a J hook at the pole to help support the fiber from the pole to the house. As the employee was installing the J hook into the pole, he heard something above him swinging. He looked up and saw the fuse was broken. The employee immediately called his supervisor to share what happened. PUD dispatch was notified, and serviceperson was dispatched.

3/24/2021 Royal CityA contractor left a 4-inch razor blade sticking out of the crack between the microwave and the top of the counter. The blade was extending about 4 inches into the walking path in front of counter, item was removed. Tape was installed on the razor blade and moved to a safe location.

Level O - Other – Close Call

Level 1 – Serious Close Call

Level 2 – First Aid Case(s)

Level 3 – Recordable Injury Case(s)

Level 4 –Restricted Duty Case(s)

Level 5 – Lost Work Day Case(s)

Level 6 – Fatality or Hospitalization

19

0

2

0

0

0

0

Employee Safety

2021 incidents Year to Date Summary

2021

4Recordable Cases TTL.

202077

13

11

0

7

0

6

13 Recordable Cases TTL.

Level O - Other – Close Call

Level 1 – Serious Close Call

Level 2 – First Aid Case(s)

Level 3 – Recordable Injury Case(s)

Level 4 –Restricted Duty Case(s)

Level 5 – Lost Workday Case(s)

Level 6 – Fatality or Hospitalization

21

0

0

3

1

0

0

Leading & Lagging Indicators

Safety Action Item Critical Success FactorsIncident Reporting

(Date of Entry into System vs Date of Distribution Systemwide) • Number of Close Calls in March = 12• Number of Close Calls sent Next day after being entered into the system = 7

Number of Open Action Items over 60 days oldAs of February 2021 As of March 2021Year 2017 = 8 Year 2017 = 8Year 2018 = 11 Year 2018 = 11Year 2019 = 22 Year 2019 = 22Year 2020 = 11 Year 2020 = 11Month Total = 52 Year 2021 = 15

Month Total = 67Net - March 2021: +15

Incident Reporting for March 2021

(Date of Incident vs. Date of Entry into System)

Injuries• Total Number of Injuries = 2

• Total Number of Injuries Which Date of Incident and Date Entered into System Match = 1

Mobile• Total Number of Mobile Incidents = 4

• Total Number of Mobile Incidents that Date of Incident and Date Entered into system match = 4

Injury and Incident Reporting

SA-PRO-004 INCIDENT REPORTING & INVESTIGATION

(PolicyTech)

1. When an injury occurs, medical attention should be sought first.

2. All injuries, no matter how slight, shall be reported to the supervisor/foreman as soon as practical. Communication may be verbal or an email.

What if it’s an emergency?

Employees will dial 3911 or 911 depending on location when summoning emergency services. When away from district buildings 911 shall be called for emergency services. Then contact the nearest control room:

Contact Numbers

Wanapum Control Room509-754-5007509-793-1520

Priest Rapids Control Room 509-754-5006Central Dispatch 509-793-1543

Injury and Incident Reporting

What do I do after notifying my Foreman/Supervisor?

Employees will report by the end of business of any injury or motor vehicle incident to their supervisor. The employee will complete required section(s) of the incident reports and reviews details with their Supervisor/Foreman. Reports include:

• Incident-Injury, Illness, First Aid • Incident-Mobile Equipment and Fleet

Can be found on the Safety Department intranet page.

Powering our way of life.

Thank You!

Q1 2021 Business ReportApril 27th 2021

Power Delivery

Outline

● New Members of Power Delivery Leadership● Q1 2021 Safety Performance● Q1 2021 Operational Performance● Q1 2021 Financials● Q1 Project Highlights● After-Hours Callout Trends

Managing DirectorPower Delivery

Jeff Grizzel

Administrative AssistantAlicia Reynolds

Senior ManagerConstruction

& MaintenanceRon Alexander

ManagerDispatch

LeRoy Patterson

Senior ManagerPower Delivery

EngineeringJesus Lopez

ManagerControl Systems

EngineeringKevin Carley

• Line Department• Electric Shop• Meter/Relay Shop• Fiber & Electronics

• Systems Planning & Standards

• Transmission, Substation & Automation

• Customer & Distribution Engineering

• Dispatch • Control Systems

Structure and Personnel

Project SpecialistMike Tongue

Safety Performance● Continued high safety meeting attendance (>95%)● Three recordables in Q1 (only one in 2020)● Power Delivery participation in CI Team #5● Continued good performance on the COVID front:

■ PPE compliance remains high

■ PD positive cases disproportionately low► positive cases <18% of District total yet PD ±28% of all employees)

■ Good cooperation from employees on antigen testing■ Sequestration avoided for Senior System Operators

Operational Performance - CAIDI12-Month Rolling Average – Customer Average Interruption Duration Index

Goal = 110 Minutes

Operational Performance - ASAI

12-Month Rolling Average – Average Service Availability IndexGoal = 99.985%

Operational Performance – Work Orders Rec’d

Monthly Work Order Rec’d in 2020 – 58 to 155

Operational Performance – Design Backlog

Average Wait in 2020 – 10 to 22 days

Operational Performance – Construction Backlog

Average Wait in 2020 – 7 to 51 days

Q1 2021 Capital – Budget v Actuals

Q1 2021 O&M – Budget v Actuals

Q1 2021 Highlights● “COVID Mode” continues to guide work

● DB2 construction underway● QTEP gaining momentum● GEN2 (GIS) project progressing● New Energy Accounting System (EAS) operational● RFP posted for new Energy Management System● Electric System Improvement Plan

■ Completed assessments of worst 11 distribution feeders

Callout Trends – 2015 through 2020


Contributor:Amanpreet Singh, Rates & Pricing

April 27, 2021

Q1 RETAIL LOAD AND REVENUE VARIANCE

2

Q1 Summary – Budget Forecast vs. ActualLo

ad

Budget Forecast Load (aMW) 587

Actual Load (aMW) 585

Load Variance (aMW) (1)

Load Variance % (-0.2%)

Reve

nue

Budget Forecast Retail Revenue $52,551,737

Actual Retail Revenue $52,599,820

Retail Revenue Variance $48,083

Retail Revenue Variance % 0.1%

• Q1 Loads were 1 aMW, or 0.2%, below budgeted levels.

• Q1 Revenues were $48,083, or 0.1%, above budget, reflecting basic charges and demand charges, which are not as sensitive to changes in energy consumption (aMW).

3

Rate Schedule Load VariancesQ1 Budget Forecast and Actuals Variance by Rate Schedule

2021 Q1 Budget Forecast and Actual Loads (aMW)

Forecast Actual Difference Variance %Residential (1) 144 136 (8) -5.8%Commercial (2) 78 71 (7) -9.1%Irrigation (3) 1 1 (0) -27.7%Streetlights (6) 1 1 0 6.9%Large General (7) 37 48 11 30.0%Industrial (14) 34 28 (6) -17.7%Industrial (15) 242 241 (2) -0.6%Ag Food (16) 34 32 (2) -6.8%Evolving Industry (17) 3 3 0 5.2%Ag Food-Boiler (85) - - - N/ANew Large Load (94) 13 26 13 96.9%Totals 587 585 (1) -0.2%

Service Rate Icon Description

Residential Service 1 Single family dwelling, individual apartment or farmhouse for single-phase service.

General Service 2

Accounts with loads not exceeding 500 kW (as measured by Billing Demand) for general service, commercial, multi-residential and miscellaneous outbuilding lighting, heating and power (excepting irrigation service) requirements.

General Service 2F Single-phase loads not exceeding 500 watts as determined from the equipment’s UL listing.

Irrigation Service 3Customers with irrigation, orchard temperature control or soil drainage loads not exceeding 2,500 horsepower and other miscellaneous power needs including lighting.

Street Lighting Service 6 Street lighting


Large General Service 7

Accounts with loads not less than 200 kW or more than 5,000 kW Billing Demand for general service lighting, heating and power requirements. Service will NOT be provided under this rate schedule to process heating or boiler service loads greater than 3,000 kW unless such loads were served on this rate schedule prior to January 1, 2001.

Rate 13 REC 13 RECAny retail customer with service in Rate Schedule Nos. 7, 14, 15, 16, or 85 who wishes to voluntarily purchase Renewable Energy Certificates (RECs).

Specified Source Purchase Schedule 13SS

Any retail customer with service in Rate Schedule Nos. 7, 14, 15, 16, or 85 who wishes to voluntarily purchase Specified Source energy, where the source is known and the carbon emission factor is zero.

Industrial Service 14 Industrial customers whose Billing Demand is greater than 5 MW/MVA and less than 15 MW/MVA

Large Industrial Service 15 Industrial customers whose Billing Demand is greater than or equal to 15 MW/MVA


Alternative Energy 13 All metered retail customers within the District’s retail service territory who wish to purchase Alternative Energy Resources.

AG Food Processing Service 16

Customers whose Billing Demand is greater than 5 MW/MVA and less than 15 MW/MVA at plants where the primary purpose is processing, canning, freezing or the frozen storage of agricultural food crops (including livestock, poultry and fish)

Evolving Industry 17Retail customers whose energy load activity and/or industry meets the requirements of the Evolving Industry definition as detailed in the rate document.

Wholesale Transmission Delivery - Large Load 30

Available to eligible transmission customers delivering power to a Grant PUD point of receipt for service to 115kV and 13.2 kV and voltages below 13.2 kV as determined by Grant PUD.

Wholesale Transmission Delivery - Small Load 31

Available to eligible transmission customers delivering power to a Grant PUD point of receipt for service to Small Load Customers.


AG Food Processing Boiler Service 85

Electric boilers which are separately metered and are primarily used for the purpose of processing, canning, or freezing agricultural food crops (including livestock, poultry and fish)

New Large Load 94All New Large Loads, as defined by the District’s Customer Service Policies. Service to such loads will be in accordance with the terms of this rate schedule.

Fiber Optic Service Dark Fiber 120

Qualified customers who have entered into an approved Telecommunications Facilities License Agreement with the District.

Fiber Optic Network Service 100 Wholesale High Speed Network Services

Q1 Rate Schedule Differences (1 of 9)

Q1 Residential (RS 1) actual loads were 136 aMW, 5.8% lower than budget forecast.

• Milder weather conditions led to Residential load being lower than it would have been given normal weather conditions.

• Adjusted for the weather, actual load was 140 aMW, Residential loads are 2.80% lower than the budget forecast.

8

9

Q1 General Service / Commercial (RS 2) actual loads were 71 aMW, 9.1% below budget forecast.• Milder weather conditions led to Commercial load being lower than it would have been

given normal weather conditions. • The weather-normalized Commercial actual load is 77 aMW, 1.91% lower than the budget

forecast.• The February 2021 unemployment rate was 8.2%, or 4.7% lower than in February 2020,

which was 8.6%. In Q4 2020, unemployment was 7.9% in December. • Note: the unemployment figures are subject to revision on the website.

*Source: St. Louis FED. https://fred.stlouisfed.org/series/WAGRAN5URN#0


https://fred.stlouisfed.org/series/WAGRAN5URN#0

Q1 Irrigation (RS 3) actual loads were 1 aMW, 27.7% below budget.

• Irrigation in Q1 is driven by billing and administrative actions as opposed to actual load.

10


Q1 Large General (RS 7) actual loads were 48 aMW, 30.0% above budget forecast.

• Large commercial growth is largely attributable to data center customers occupying premises previously serving Evolving Industry and two Rate Schedule 14 loads that transferred into Rate Schedule 7.

11


Q1 Industrial (RS 14) actual loads were 28 aMW, 17.7% below budget forecast.

• The budget deviation arose from two accounts contracting and exiting to Rate Schedule 7, and a couple accounts experiencing slight load contraction.

12


Q1 Large Industrial (RS 15) actual loads were 241 aMW, -0.6% belowbudget forecast.

• Actuals came in close to the budget forecast.

13


Q1 Ag Food Processors (RS 16) actual loads were 32 aMW, 6.8% below budget forecast.

• The budget variance is due to customers modestly scaling back compared to the forecast.

• One is a dietary supplement manufacturer and the other is an agriculture processing customer that had a facility incident.

14


Q1 Evolving Industry (RS 17) actual loads were 3 aMW, 5.2% above budget forecast.

• Increase could be due to Bitcoin’s price rising. The price went from $10,000 range in October 2020 to $50,000.

• We only had sales for January 2021 and February 2021. After February, the customers in this rate schedule moved to the appropriate class.

15


Q1 New Large Load (RS 94) actuals were 26 aMW, 96.9% above budget forecast.

• Growth in New Large Loads is arising from one customer growing faster than forecast.

16


17

Takeaways

Residential and Commercial loads are 2.80% and 1.91% below budget on a weather adjusted basis.

Net Rate Schedule 7, 14, 15, 16, 85, & 94 actual loads are above the budget forecast by around 14 aMW.

Evolving Industry (Rate Schedule 17) demand rose through February and the customers were moved to the appropriate class starting March 2021.

Powering our way of l i fe .

Thank You

2020 Audit ResultsApril 27, 2021

2

1. Audit Reports Issued

2. Audit Response to COVID

3. Areas of Audit Emphasis

4. Matters Required to be Communicated

5. Upcoming Accounting Pronouncements

6. Acknowledgements and Other Information

Agenda

3

Public Utility District No. 2 of Grant County, Washington

Board of Commissioners

Dear Commissioners:

Thank you for your engagement of Moss Adams LLP. We are pleased

to have the opportunity to meet with you to discuss the results of our

audit of the financial statements of the District as of and for the year

ended December 31, 2020.

The accompanying presentation, which is intended solely for the use

of the Board of Commissioners and management, and is not intended

to be and should not be used by anyone other than these specified

parties, presents important information regarding the District’s

financial statements and our audit that we believe will be of interest to

you.

We conducted our audit with the objectivity and independence that

you expect. We received the full support and assistance of District

personnel. We are pleased to serve and be associated with the

District as its independent public accountants and look forward to our

continued relationship.

4

• Unmodified opinion on financial statements of Grant County Public Utility District, which are presented fairly and in accordance with U.S. Generally Accepted Accounting Principles

• Audit and report on internal control and compliance over financial reporting in accordance with Government Auditing Standards

o No material weaknesses notedo No significant deficiencies identifiedo No compliance findings noted

Audit Reports Issued

4

• Audit was performed in a remote environment

• Utilized technology and electronic audit tools

• Updated risk assessments

• Internal controls and testing of transactions before and after the remote work environment

• Review of the related disclosures for transparency

Audit Response to COVID and ‘work from home’ order

5

• Capital Assets & Construction in Processo Consideration of capitalization policies and potential impairment, as well as testing of

additions, retirements, overhead application, and depreciation

• Operating Expenses and Related Payableso Classification of amountso Internal controls over expenditures to vendors and employees

• Bond Activityo Tests of revenue and refunding bonds, debt repayments, discounts and premiums, and

compliance with covenantso Third-party confirmations with financial institutions

• Power Sales Transactions o Tests of sales to power purchasers, including via third party confirmationso Tests of wholesale power transactionso Review of cash receipts and timing of revenue recognition

Areas of Audit Emphasis

7

• Retail Energy Sales and Related Receivableso Vouching of cash receipts and timing of revenue recognitiono Third-party confirmations with largest commercial power purchasers

• Net Position Classificationo Tests of classification of net investment in capital assets, restricted and unrestricted

• Information Technology (IT) General Computer Controlso Our IT specialists tested the IT applications and general computer controls that support

the various financial reporting systems

• Financial Statement Footnote Disclosureso Review of the footnote disclosures for completeness and accuracy in accordance with

authoritative disclosure checklists and our knowledge of industry best practices

Areas of Audit Emphasis (continued)

8

Communications with Those Charged with Governance

9

Our Responsibility Under U.S. Generally Accepted Auditing Standards and Government Auditing Standards

To express our opinion on whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, and in accordance with U.S. GAAP. However, our audit does not relieve you or management of your responsibilities.

To consider internal control over financial reportingas a basis for designing audit procedures but not for the purpose of expressing an opinion on its effectiveness or to provide assuranceconcerning such internal control.

To perform an audit in accordance with generally accepted auditing standards issued by the AICPA and Government Auditing Standards issued by the Comptroller General of the United States, and design the audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement.

To communicate findings that, in our judgment, are relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

1 2

3 4

9

• Our audit was performed according to the planned scope

• Significant accounting policies are summarized in Note 1 to the financial statements o There were no changes to significant accounting policies for the year ended

December 31, 2020, except for the revenue recognition methodology related to wholesale power agreements.

• No difficulties were encountered during the performance of our audit

• Financial statement disclosures were consistent, clear and understandable

• Audit adjustmentso There was one adjusting journal entry for $1.3 million posted to accrue a vendor

liability for an invoice that was paid in 2021.

Required Communications

10

• Potential Effect on the Financial Statements of Significant Risks, Exposures & Uncertaintieso The District is subject to potential legal proceedings and claims that arise in the

ordinary course of business, which are disclosed in the notes to the financial statements in Note 1

• There were no disagreements with managemento Weekly meetings were held between Moss Adams and District management and

staff throughout the audit term

• Ability to continue as a going concern (no disclosure deemed necessary)

• Consideration of fraud in a financial statement audito We are not aware of any instances of fraud or noncompliance with laws and

regulations.

• Moss Adams is independent with respect to the District

Required Communications (continued)

11

12

GASB Statement No. 83 Certain Asset Retirement Obligations – this was implemented in the current year. There was no impact to the financial statements, but additional note disclosures were made to Note 7 Non-Power Commitments

GASB Statement No. 84 Fiduciary Activities and GASB Statement No. 97 Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal Revenue Code Section 457 Deferred Compensation Plans – these were implemented in the current year, with no impact to the financial statements. There is a component to GASB No. 97 related to note disclosures that will be effective in 2022.

GASB Statement No. 87 Leases – this standard is effective for the District in 2022

New and Upcoming Relevant Accounting Pronouncements

• The audit progressed on time and in an orderly fashion; requested schedules and draft financial statements were received on a timely basis.

• All District personnel across all departments were courteous, responsive, and fulfilled all of our requests in a timely manner.

• ‘Tone at the Top’ and attitude from management was one of helpfulness and openness in response to audit requests and discussion points.

Thank you!

Acknowledgements

13

14

Contact Us

Laurie Tish, CPA, Partner

[email protected]

(206) 302-6466

Keith Simovic, CPA, Senior Manager

[email protected]

(509) 478-2284

Daniel Roberts, CPA, Manager

[email protected]

(425) 551-5729

mailto:[email protected]



Wholesale FiberQ1 2021 Business Report

Business Unit Mission

To improve the quality of life for the communities we serve through increased access to competitive fiber optic internet services.

2021 PrioritiesPRIORITY 1: Upgrade Network Core

• Core links to each distribution node at least 100G with built in expansion capability to at least 400G• Final stages of negotiations with preferred vendor – expect implementation to begin by end of Q2

PRIORITY 2: Upgrade Oldest Hubs• Replace all hubs that have less than 10G uplink capability• Cisco will release a firmware update in May which will allow us to move forward

PRIORITY 3: Expand the Network • Complete the remaining 2020 areas – portion of Area 12 plus Areas 14 and 15 – as well as Areas 16 through 19• Just received permits for Area 12; Areas 14 and 15 completed; on track for Area 16 as scheduled, although

completing Area 12 might impact slightly

PRIORITY 4: Increase the take rate of services on the Network• Increase take rate to 67%• 64% through Q1

PRIORITY 5: Achieve Average System Uptime• Meet or exceed 99.98%• 99.998% through Q1

Challenges

Permits• DOT and RR continue to be unpredictable performers

Workforce• Contractor has a stable quantity of trained workforce, but struggles to expand to meet the

demand. COVID protocols have, at times, sidelined as much as 30% of contractor’s staff

https://app.powerbi.com/groups/me/reports/ee0dfef1-317f-47bd-9444-05e6451561b0/ReportSection9b55166916e110545c9d?pbi_source=PowerPoint

https://app.powerbi.com/groups/me/reports/ee0dfef1-317f-47bd-9444-05e6451561b0/ReportSectionca67fcb1f4bd97d22fd8?pbi_source=PowerPoint

Type Column1 As of 03/31/21 Column2 Column3

Expansion CAP Directs $3,779,915Expansion CAP Labor $186,685Connect Cust CAP Directs $2,072,232Connect Cust CAP Labor $108,547O&M Directs $119,112O&M Labor $495,592 "Routine Capital"

TOTALS $6,762,083 $2,795,483

Summary of Expenditures

Revenue

Basic Services, $2,085,643.26, 71%

Premium Services, $107,837.17, 4%

Advanced Services, $212,424.21, 7%

UpstreamInternet, $55,749.73, 2%

Total, Port Charges, $8,403.29, 0%

WirelessInternet, $15,160.89, 1%

Special VLAN, $260,113.55, 9%

Sum of Total Dark Fiber, $185,481.00, 6%

YTD 2021 Broadband Billed Revenue by Service

YTD INVOICED AMOUNT $2,939,775.83

YTD REVENUE TARGET $2,737,500.00

ParticipationYE 2020 for Comparison

Area Potential Subscribers

Actual Subscribers

Participation Actual YTD Growth

Coulee City 987 388 39.31% 223Desert Aire 1129 942 83.44% 109Electric City 660 455 68.94% 54Ephrata 4058 2928 72.15% 353Grand Coulee 663 418 63.05% -8Hartline 116 70 60.34% 2Mardon 676 362 53.55% 46Mattawa 1378 1063 77.14% 165Moses Lake 17401 10734 61.69% 1509Quincy 3557 2160 60.73% 501Royal City 759 546 71.94% 85Soap Lake 2290 1366 59.65% 140Warden 946 434 45.88% 102Wilson Creek 163 85 52.15% 8George-Burke 949 519 54.69% 169

35,732 22,470 62.88% 3,458

Growth By Community (as of 3/31/21)

Area Potential Subscribers

Actual Subscribers

Participation Actual YTD Growth

Coulee City 987 442 44.78% 54Desert Aire 1129 962 85.21% 20Electric City 660 471 71.36% 16Ephrata 4650 3177 68.32% 249Grand Coulee 663 414 62.44% -4Hartline 116 71 61.21% 1Mardon 676 383 56.66% 21Mattawa 1378 1103 80.04% 40Moses Lake 17499 10973 62.71% 239Quincy 3634 2243 61.72% 83Royal City 759 562 74.04% 16Soap Lake 2290 1371 59.87% 5Warden 946 466 49.26% 32Wilson Creek 163 87 53.37% 2George-Burke 949 557 58.69% 38

36,499 23,282 63.79% 812

Take Rate Target: 67%

Growth Target: 2675 county wide

Quarter 1 2021 Report

Fiber ExpansionProject Update

Completed Build AreasCrescent Bar Base

Beverly - Schwana Kittleson

Sunland Ephrata City Limits

Coulee City Electric City

Blue Lake Ephrata South Sub

Ancient Lake / White Trail Road 9 NW / Hwy 283

McConihe

Progress to Date

2%2%

7%7%7%7%7%

11%13%

17%17%17%17%18%18%18%18%18%

24%21%

24%35%

85%97%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Braden to George/Black SandsAdams Rd NW to Winchester

Stratford / Summer FallsHwy 281 N of I90 to Rd 3

I90 Rd U NE/SEDesert Aire to Rd O SW

Wahluke Area East of MattawaDodson to Frenchman

JerichoRd A SE/Smyrna/Crab Creek

NW and SW of QuincyNorth, East and South of Quincy

Warden Area CompletionWinchester

Soap Lake to Lake LenoreMattawa Area Comp

Hartline to Wilson CreekGeorge Area Completion

Hartline SurroundRoyal City Surround

Dodson to WinchesterPerch Point

Gloyd to StratfordCave B-Beverly Burke

Progress to Date

Project Schedule Construction

Release

• Area 15 Gloyd to Stratford 4/15/21

• Area 16 Perch Point/Wilbur Ellis 5/24/21

• Area 17 Dodson to Winchester 8/30/21

• Area 18 Royal City Surrounding 10/25/21

• Area 19 Complete Hartline Area 12/20/21

• Area 20 George Area Completion start construction 8/24/21

• Area 21 Between Hartline & Wilson Creek start construction 9/1/21



Procurement Training

Objectives

The objective of this training is to build awareness of your responsibilities as a public employee as well as your understanding the procurement processes and thresholds.


Procurement and the Strategic Plan

By making cost conscious business decisions and watching out for our bottom line, all employees play a role in the Strategic Plan Objectives to maintain a strong financial position and provide long-term low rates.



Procurement and the Code of EthicsAs employees of Grant PUD, it is imperative that we exercise high ethical standards when conducting business to assure that the utility's resources and services benefit our customers.

The Code of Ethics Policy states that employees with procurement responsibilities or control over project specifications shall not benefit, directly or indirectly, in connection with any contractual relationship. It further states that employees shall not solicit or accept, directly or indirectly, gifts, gratuities, or favors from a supplier, prospective supplier, customer or their employees or agents. For more information, see the Code of Ethics Policy.


Know Your Authority

Each CXO has delegated certain spending limits within their functional area.

Take time to review the current Purchase Authorization Table –

Check with your supervisor for information on your spending limits.

A monthly Vendor Detail report is available for review on the Intranet site at the following location: Reports, Finance Reports, Vendor Details.

Purchase Authorization Table

https://grantnet.gcpud.org/Departments/Procurement/Documents/Purchase%20Authorization%20Table.docx

Why Are There So Many Procurement Rules?

Purchases of goods and services are governed first by state law, with further policies, procedures, and delegations established by the board of commissioners, executive management, managing directors and senior managers.


Labor and Public Works

Procurement laws apply to activities or projects requiring labor for any work, construction, building, renovation, alteration, remodeling, repair, or improvements of real property, executed at the cost of a public agency. The following three slides define the labor thresholds and requirements.


• Contact procurement staff for assistance with a purchase order.

• Quotes for purchases over $5,000 are a recommended business practice and strongly encouraged.

• Limited staff have delegated authority to purchase independently -- see delegation tables on the procurement webpage and contact your supervisor with questions.

• Prevailing wage must be paid and proper forms submitted to L&I.

• For specific instructions on the purchase order process, see procurement’s home page.

• All public works or labor contracts over $50,000 must be procured on a contract


Labor and Public Works Purchase Up to $50,000

Can be procured on a Small Works Contract. • Contact procurement staff for assistance with a Small Works contract. • Small Works contracts are only to be used for construction, building,

renovation, remodeling, alteration, repair or improvement of real property. • Small Works contracts allow for a shorter process because:

No requirement to advertise No minimum posting time No bid bond requirement No engineer's estimate needed Bids are not required to be sealed and can be submitted via mail, email,

or fax.


Labor and Public Works Purchase over $50,000 and up to $350,000

Labor and Public Works over $350,000 • Labor/Public Works over $350,000 must be procured on a competitively bid labor contract. • Contact procurement staff for assistance with a standard labor contract. • The formal competitive bidding process must be followed in accordance with RCW 54.04.070 and

54.04.080. • Allow six weeks for processing a standard labor contract through the formal bid process. The six week

period begins when procurement receives approval from appropriate authority level (CMapp), appropriate documentation and complete technical specifications.

• Contracts over $1M must be approved by the Board of Commissioners. This process will add four weeks to the process.

• For specific instructions on the contract process, see the procurement home page for instructions or contact procurement staff for assistance.


Professional ServicesProfessional services are services provided by an independent contractor who has technical expertise in the particular service.

Engineering, surveying, architectural, or landscape architectural services must be procured through a formal RFP (Request for Proposals) process, regardless of the dollar amount, and the selection process must be based on qualifications, not price.

All other professional services do not require competitive quotes (although it is strongly recommended).

• Up to $50,000 contact procurement staff for a purchase order.• Over $50,000 must be procured on a contract. • Limited staff have authority to make direct purchase.

See purchase authorization table on procurement’s home page.• All professional services over $50,000 must be procured on

a contract.


ServicesExamples include:

• Building and grounds maintenance • Janitorial services • Linen Services

Procurement as Follows: • Up to $50,000

Must be procured on a purchase order or be within your delegated authority

Quotes are a recommended business practice and strongly encouraged to determine the best value and/or lowest cost option

• Over $50,000 Must be procured on a contract Competitive bid may be used if beneficial

All service contracts over $50,000 must be procured on a contract.


Material, Equipment, and Supplies

• Like items shall not meet or exceed $120,000 in any calendar month unless procured with a contract. • Bid Splitting is prohibited. • Purchases for technology, chemicals, hardware, software, furniture, and transportation equipment must

be coordinated through the procurement department.• All material purchases at or over $120,000 must be procured on a competitively bid contract.


Min Max Process to Procure Like Items

- Up to $30,000Contact procurement staff for assistance with a purchase if not within your delegated authority.Competitive quotes are a good business practice and strongly recommended.

Over $30,000 Less than $120,000 Must be processed through a purchase order. Competitive quotes are required.

$120,000 and over - Must be procured by competitively bid contract.

Bid SplittingEmployees shall, under no circumstances, separate public works projects or the purchase of materials, equipment, and supplies into phases or parts to avoid compliance with bidding statutes. This is called bid splitting and is a state bid law violation.

The total cost of all phases or parts must be used to determine the appropriate procurement method.

Another example of bid splitting is avoiding thresholds by purchasing like item materials in one month knowing that the same item is needed in the near future.


Prevailing WagePrevailing wages are required for all public works, maintenance when performed by contract, custom fabricated material, and some purchased services.

Prevailing wages are established by the Department of Labor & Industries separately for each county and are reflective of local wage conditions. All contractors and subcontractors performing public work are required to pay (at a minimum), the prevailing wage rate for the particular type of work.

Before any prevailing wage work begins, the contractor must provide a Statement of Intent to Pay Prevailing Wage, approved by L&I, for themselves and any subcontractors. Upon completion of all work, the contractor must provide an Affidavit of Wages Paid, approved by L&I, for themselves and any subcontractors.

Additional guidance is available on the procurement home page. Or, if you are ever unsure as to whether or not prevailing wage applies to a certain type of work, please contact procurement staff for assistance and we will be happy to help!


Invoice ProcessingGrant PUD is required by law to pay interest of one percent per month on invoices not paid within thirty (30) days of receipt. We are also required to give notice to all vendors within eight (8) working days of receipt of the invoice if we are not going to pay the entire invoice amount. The project manager is responsible for this letter and templates are available on the procurement home page. Procurement and accounts payable staff are available for guidance if needed.

Employees are responsible for reviewing and approving all invoices related to their projects to confirm: • Material was received • Work was completed • Service was provided • Rates and reimbursable expenses are billed and calculated correctly • Proper documentation is attached• Proper attributes are being charged

In order to keep within the requirements placed on a public agency, it is imperative that invoices are processed in a timely manner.


PCardsA PCard is a MasterCard issued to pre-approved employees. As a corporate cardholder, an employee may make authorized purchases on behalf of the utility as allowed by their established credit limit and in accordance with the

In accordance with the Procurement Card Program Policy, employees have a fiduciary and ethical responsibility for appropriate PCard use. Employees must act in compliance with applicable state laws, commission resolutions, and District policies and procedures. The Procurement Card Program Policy can be found on the finance home page.

The Procurement Card Program Policy and reference materials can be found on the procurement home page. Contact accounting staff for information on PCard training.


Purchase Authorization Table

https://grantnet.gcpud.org/Departments/Procurement/Documents/Purchase%20Authorization%20Table.docx

Unacceptable Uses of PCards

• Equipment rentals • Services (unless for off-site small tool

calibration/annual maintenance) • Inventory (stock) items • Hazardous materials or chemicals • Payment for purchase orders or contracts • On-site training • Personal charges• Any item that exceeds your PCard

delegated authority amount


Prior Approval Required for Certain PurchasesIf your purchase is related to information technology (computer hardware, software, and/or maintenance), prior approval is required from the Chief Technology Officer (CTO).

Any rental, lease, or purchase of transportation equipment (vehicles, trailers, heavy equipment) must have prior approval from the transportation manager.

Any furniture purchases must have prior approval from the facilities manager.

From the Policy:


The Responsibility is YoursWhenever you sign an invoice or PCard reconciliation, you are certifying the goods and/or services are necessary and reasonable, they have been received and billed as agreed, and you are accountable.


Services Provided by ProcurementProcurement is your primary point of contact for the purchase of goods and services. Staff is here to help you determine the most efficient procurement method that fits your needs and is in the best interest of the utility.

For additional information, please call us or visit our procurement home page!


Thank You.A more detailed training session based on your area of interest is available upon request. Call the procurement office at ext. 2336 if you are interested.

We have a short quiz for you now.

Good luck!


Review

This training was to review Grant PUD's basic procurement requirements and delegation authorities. As a Grant PUD employee I acknowledge the following:

Summary

With this training completed, I have read and understand the basic procurement requirements and understand that if I am

unsure, I should contact procurement staff for guidance.Yes No
