1) · 2020-06-03 · mason county pud no. 1 . regular board meeting . april 28, 2020 . 1:00 p.m....

Mason County PUD No. 1 Regular Board Meeting

April 28, 2020 1:00 p.m.

1:00 p.m. Call to Order & Flag Salute

1) Consent Agenda Minutes: April 14, 2020 Regular Board Meeting

Disbursements: Accounts Payable Check Register Accounts Payable Wire $ 66,888.76 Check Nos. 118436 - 118475 $ 659,014.17

A/P Sub-Total $ 725,902.93

Payroll Expense Payroll Wire $ 54,599.91

Grand Total $ 780,502.84

2) Public Comment- Members of the public wishing to comment may request permission to do so during the Public Comment portion of the agenda. Comments shall be limited to no more than 3 minutes per speaker. There will be no action or discussion of public comment items, although the board may defer to PUD management for any necessary response.

3) Business Agenda a. Resolution No. 2035 “Amending the Implementation Date for New Irrigation Rate Schedule” b. 1st Q Strategic Work Plan Report c. March and 1st Quarter Financials

4) Staff Reports

a. General Manager b. Director of Operations c. Treasurer d. Legal Counsel

5) Correspondence

6) Board Comments

7) Other Business/Public Comment

8) Executive Session- may be held as authorized by the Open Public Meetings Act (RCW 42.30.110).

9) Adjournment

Call-in Number for Public due to COVID-19 facility closure:

Toll Free: 1 (888) 585-9008

Conference Room #504-309-172

2020 Calendar April 30 WPAG– LaQuinta Tacoma May 6 PPC – Sheraton Portland Airport May 17-20 NWPPA Annual Meeting – Springhill Suites/Kennewick WA May 21 WPAG– LaQuinta Tacoma June 3 PPC – Sheraton Portland Airport June 18 WPAG – LaQuinta Tacoma June 25 WPUDA – Water Committee meeting, Olympia July 8 PPC Sheraton Portland Airport July 10 Employee Appreciation Picnic, Potlatch State Park July 15-17 WPUDA - TBA July 30 WPAG– LaQuinta Tacoma August 5 PPC Sheraton Portland Airport August 27 WPAG– LaQuinta Tacoma September 2 PPC Sheraton Portland Airport September 16-18 WPUDA Meeting - TBA September 23 WPAG– LaQuinta Tacoma September 30 PPC Sheraton Portland Airport September 30 -October 2 – WPUDA Water Workshop, TBA October 9 Customer Appreciation Event – PUD 1 Warehouse October 15 WPUDA Budget Committee Meeting - Olympia October 29 WPAG– LaQuinta Tacoma November 4 PPC Town Hall with Marty Kanner 4-5:30 November 18-20 WPUDA - Olympia November WPAG-TBA December 2-4 WPUDA Annual Conference, Davenport Grand, Spokane December WPAG- TBA

Mason County Public Utility District No. 1

Board of Commissioners Regular Board Meeting

April 14, 2020 Potlatch, Washington

Present: Visitors:

Ron Gold, President (Online) No public called into the toll-free line that

Mike Sheetz, Vice President (Online) was made available.

Jack Janda, Board Secretary (Online)

Kristin Masteller, General Manager

Darin Hall, Director of Operations

Katie Arnold, District Treasurer

Julie Gray, Executive Assistant (Online)

Rob Johnson, Legal Counsel (Online)

APPROVAL OF CONSENT AGENDA:

Minutes: March 31, 2020 Regular Board meeting

Disbursements: Accounts Payable Check Register

Accounts Payable Wire $123,754.16

Check Nos. 118371 - 118435 $143,919.90

A/P Sub-Total $267,674.06

Payroll Expense

Payroll Expense $ 87,409.21

Payroll Check No. 118370 $ 5,808.12

Grand Total $360,891.39

Jack made a motion to approve the consent agenda as presented, Mike seconded the motion,

Motion carried.

PUBLIC COMMENT: No public in attendance.

BUSINESS AGENDA:

Discussion on Twanoh Consolidation – Now that the water rates are levelized and the PUD is not

assessing capital surcharges, Kristin recommends that the District move forward with the Twanoh Heights

and Twanoh Terrace consolidations. The pushback from customers previously was due to financial

implications for the system that didn’t need additional connections. They didn’t want to subsidize the

neighboring system. Now this is a moot point with our financial consolidation. The water system

consolidation plan is ready to be re-submitted and will be added to an upcoming board agenda for

approval. The commission agreed to move it onto the agenda for consideration.

Approve Comment Letter for Draft EIS on Lower Snake River Dams – Kristin presented a letter to the

U.S. Army Corps of Engineers regarding the Draft Environmental Impact Statement on the future of the

four Lower Snake River Dams. The letter included broad repercussions for the Pacific Northwest and




public power ratepayers, as well as specifics to Mason PUD 1 customers. It also questioned the

implementation of spill regimes given the science that has indicated spill is harmful to fish. The proposed

alternative is not acceptable if it devalues the federal hydro system to make it more vulnerable to attacks

in the future. Jack made a motion to approve the Comment Letter for Draft EIS on Lower Snake River

Dams, Mike seconded the motion. Motion carried.

Approval of Retired Employee Medical Policy – Kristin presented the revisions to the language in the

policy that clarified that separation from service must be due to an actual retirement to qualify for the

retiree medical benefit. It also clarified eligibility guidelines, as they currently are in practice. Mike made a

motion to approve the Retired Employee Medical Policy, Jack seconded the motion. Motion carried.

Authorize Manager to sign NISC/American Express Agreement – Katie presented an agreement that

allows NISC users to accept American Express payments for a low flat transaction fee. Several customers

have asked to be able to use their AmEx cards over the years. This gives them one more option for

method of payment. Jack made a motion to Authorize the Manager to sign the NISC/American Express

Agreement, Mike seconded the motion. Motion carried.

General Manager – Kristin commended Katie, Rich and Trish for deploying outside-the-box strategies to

procure essential business supplies that the PUD needs to function safely. She reported that she has

been sitting in on APPA’s CEO conference calls regarding COVID-19 and the impact to utilities. BPA is

contacting the utilities to let them know they are exploring options for assistance but have not laid out

any specifics. The solar installers have been on site and should be able to meet the May 14th deadline to

commission the Community Solar II project. Kristin has also been in contact with Energy Northwest

regarding electric vehicle chargers for Hoodsport, as well as agreeing to be the sponsor of a grant

through Bonneville Environmental Foundation on behalf of the Skokomish Tribe for EV chargers at their

casino. The changes for the Union Regional Water plan were sent to Dept. of Health on Monday and

forwarded also to requested stakeholders. These changes will reopen the comment period for 60 days.

The extension for Well 3 at Alderbrook has been submitted. James is working with Tim Flynn from Aspect

Engineering on this and will have a conference call with Ecology about how to move this extension

forward. There is no movement on the Highland Estates water rights; Tim Flynn continues to check in

with Ecology monthly. Everyone is working and healthy right now. We will continue our pattern of

working from home and working in shifts for the foreseeable future.

Director of Operations – Darin reported that rotating crews is still working great. The electric crew is

working on underground replacement at Timber Tides and have been working on replacing the

underground on Foothills Park road. Darin reported that the walk thru for the electric project at

Manzanita was well attended. Kristin thanked Rob Johnson for his suggestion to get those projects out

to bid quickly while people are looking for public works projects. The tank cleaning bid for the Canal

Mutual, Hood Canal, Lakewood Heights, Madrona Beach, Pirates Cove, Tiger Lakes, Twanoh Heights,

Union and View Ridge Heights water systems was awarded to Advance Diving Services, Inc., in the

amount of $9,788.87. The water crew has finished with the rehab work at the Woodland pump house

and also installed new bladder tanks. The safety meeting was canceled and will be rescheduled. There

have been no accidents or near misses.




Treasurer – Katie reported that we are monitoring the District’s cash flow and continuing to contact

customers to setup payment plans on past due accounts. Kristin added that the PUD saw 3x the normal

delinquent accounts this month due to widespread unemployment. She stated that other utilities are

extending payment arrangements long term and that she hopes to do the same so that way there is a

more stable amount of revenue coming in that the PUD can budget against.

Legal Counsel – Rob reported that new labor laws and changes to labor laws are being implemented

every day. He continues to forward that information on to Kristin.

Correspondence: Included in correspondence was the news release from the Shelton-Mason County

Journal announcing that PUD 1 would delay the electric rate increase for three months due to the

COVID19 pandemic, as well as an article regarding the PUD’s water system grants. Also included was an

article from NWPPA’s Bulletin where PUD 1 was interviewed regarding our pandemic response.

Board Reports:

Mike Sheetz: Mike will listen in to the WUPUDA meetings this week.

Jack Janda: Jack reported that he was been attending Energy NW meetings via Skype and will listen in on the

WUPUDA meetings this week.

Ron Gold: Ron called into the WIRA meeting last week.

Adjournment: 1:47 p.m.

Ron Gold, President Mike Sheetz, Vice President Jack Janda, Secretary

739

2,934.9311,155.38

228,264.084,800.33

326.003,382.722,920.631,007.891,946.56

297,034.001,700.773,864.70

179.6413,477.95

539.752,304.22

559.885,857.27

190.32245.42

10,257.1526.24

450.10514.29

3,392.913,511.00

122.951,685.002,100.00

297.4921,592.2218,338.21

7,033.252,720.87

909.76240.00100.00

8,833.5220,633.0233,996.10

3,405.721,477.36

364.99118473 04/23/2020 CHK KNIPSC DEBBIE KNIPSCHIELD MONTHLY REIMBURSEMENT-ACCT#6585-5118472 04/23/2020 CHK KESTER KESTER, GREGORY C. MONTHLY REIMBURSEMENT118471 04/17/2020 CHK PUD#3 PUD #3 OF MASON COUNTY 167KVA PDMT TRANSFORMER

268 04/17/2020 WIRE WASH 3 WA DEPT OF REVENUE MONTHLY EXCISE TAX118470 04/16/2020 CHK BROWNR BROWN & KYSAR, INC. PHASE 2-VEHICLE COVERED STORAGE118469 04/16/2020 CHK WRIGHT WRIGHT EXPRESS FINANCIAL MO.MASTERCARD CHARGE 5569 6200 0003 6811118468 04/16/2020 CHK US TREASURY US TREASURY LEVY PROCEEDS #91-1197062118467 04/16/2020 CHK PUDEMP PUD #1 EMPLOYEE FUND EMPLOYEE FUND118466 04/16/2020 CHK IBEW IBEW LOCAL UNION #77 UNION DUES

267 04/16/2020 WIRE HRA HRA VEBA TRUST CONTRIBUTI VEBA MEDICAL SAVINGS266 04/16/2020 WIRE WASH 7 WA STATE TREAS-MS: PO-11 DEFERRED COMPENSATION265 04/16/2020 WIRE WASH 1 WA DEPT OF RETIREMENT SYS STATE RETIREMENT - PLAN 2264 04/16/2020 WIRE IRS WEST COAST BANK FEDERAL TAX LIABILITY

118465 04/15/2020 CHK MASON CO GARBA MASON COUNTY GARBAGE MO CARDBOARD & RECYCLING CHARGES118464 04/15/2020 CHK 2 TUPPER/MACK/WELLS PLLC SQUAXIN ISLAND-OBJECTIONS TO WATER SYSTE118463 04/15/2020 CHK WPUDA WASHINGTON PUD ASSOC. MONTHLY DUES118461 04/15/2020 CHK TERMINIX TERMINIX PROCESSING CENTER MONTHLY PEST CONTROL118460 04/15/2020 CHK ROCKY ROCKY BROOK POWER USAGE FOR MARCH 2020118459 04/15/2020 CHK JOHN 3 ROBERT W. JOHNSON MARCH RETAINER FEE118458 04/15/2020 CHK RICOH USA RICOH USA, INC. (2)MACHINES-MONTHLY RENT118457 04/15/2020 CHK PLATT ELECTRIC REXEL USA, INC 10 GAUGE WIRE118456 04/15/2020 CHK PACIF1 PACIFIC UNDERWRITERS CORP SUPPLEMENTAL INSURANCE118455 04/15/2020 CHK NISC NISC MARCH 2020 RECURRING INVOICE118454 04/15/2020 CHK MASON CO GARBA MASON COUNTY GARBAGE MONTHLY GARBAGE CHARGES118453 04/15/2020 CHK MARSH MARSH MUNDORF PRATT & SUL MONTHLY WPAG SERVICES118452 04/15/2020 CHK HDFOWL HD FOWLER COMPANY PVC CONDUIT118451 04/15/2020 CHK HARB 1 HARBOR SAW & SUPPLY INC. TRUCK#73-CAB RACK,WELDED BEACON,&BAR PLA118450 04/15/2020 CHK GOLDSTREET GOLDSTREET DESIGN AGENCY, INC. SPRING 2020 NEWSLETTER118449 04/15/2020 CHK GILLIS GILLIS AUTO CENTER, INC. TRUCK #59-FUEL PUMP118448 04/15/2020 CHK GENPAC GENERAL PACIFIC INC ERM 25KVA & 37.5KVA TRANSFORMERS118447 04/15/2020 CHK EES EES CONSULTING INC MONTHLY WPAG EXPENSES118446 04/15/2020 CHK DON SMALL & SON DON SMALL & SONS OIL DIST GAS & DIESEL118445 04/15/2020 CHK D&H PRINTING D&H PRINTING LABELS WITH PUD LOGO118444 04/15/2020 CHK BPA COLUMBIA BANK MONTHLY POWER BILL

TELEPHONE CHARGES-ACCT#206-Z05-0016 020B118443 04/15/2020 CHK COASTAL BUS COASTAL BUSINESS SERVICES GROUP, INJANITORIAL CONTRACT SERVICES

118441 04/15/2020 CHK ANIXTER ANIXTER INC118442 04/15/2020 CHK CENTUR CENTURYLINK

118440 04/15/2020 CHK ALTEC ALTEC INDUSTRIES INC TRUCK #63-ROTARY ACTUATOR118439 04/15/2020 CHK A WORKSAFE A WORKSAFE SERVICE, INC DRUG & ALCOHOL TESTING

260 04/15/2020 WIRE PUD#1 PUD #1 ELECTRIC PAYMENTS MO.POWER USAGE FOR VARIOUS WATER SYSTEMS118438 04/14/2020 CHK TAPANI, INC TAPANI, INC COVERED STORAGE BUILDING118437 04/13/2020 CHK CITI CARDS CITI CARDS MO.CITI CHARGES ACCOUNT NUMBER #4326118436 04/13/2020 CHK BLACK BLACK STAR CUSTOMER APPRECIATION BBQ- T SHIRTS

AmountTran Type

04/13/2020 To 04/24/2020Bank Account: 4 - COLUMBIA BANK - DISTRICT

Check / Date Pmt Vendor Vendor Name Reference

MASON COUNTY PUD NO 104/23/2020 1:54:16 PM Accounts Payable Page 1

Check Register

912.49295.85

(50) 725,902.93

Credit Card Charges: No51217 /pro/rpttemplate/acct/2.46.1/ap/AP_CHK_REGISTER.xml.rpt

Minimum Amount: 0.00Authorization Listing: No

Authorization Comments: No

Voids: NonePayment Type: All

Group By Payment Type: No

Format: SummaryExtended Reference: No

Sort By: Date

Bank: 4Vendor: All

Check:Journal: All

Total for Bank Account - 4 :Grand Total : (50) 725,902.93

PARAMETERS ENTERED:Check Date: 04/13/2020 To 04/24/2020

118475 04/23/2020 CHK WAGNER WAGNER, CHERYL MONTHLY REIMBURSEMENT ACCT#789026098408118474 04/23/2020 CHK MUNCHR MUNCH, ROY MONTHLY REIMBURSEMENT

Mod

PL

MASON COUNTY PUD NO 1 Revision: 87975

GENERAL LEDGER04/16/2020 12:30:48 PM Page: 1

TRANSACTION DETAIL

APR 2020 To APR 2020Date Journal Description Actv BU Project Jrnl Reference

Code

54,599.91

Account: 0 131.2 CASH-GENERAL FUND (DISTRICT) Department: 0

04/16/20 50206 Check Print 0 2 PAYROLL

PARAMETERS ENTERED:

Divsion: All

Total For Module - PL: 54,599.91

Accounts: 0 131.2

Department: All

Activity: All

Sort By: Div/Acct

Date Selection: Period

Period: APR 2020 To APR 2020

Module: PL

Journal Activity: All

Accounts With No Transactions: Yes

51217 /pro/rpttemplate/acct/2.46.1/gl/GL_TRANS_DETAIL.xml.rpt

Extended Reference: No

Interface Detail: No

Group by Department: Yes

PUBLIC UTILITY DISTRICT NO. 1 BOARD OF COMMISSIONERS

OF MASON COUNTY MIKE SHEETZ, Commissioner

N. 21971 Hwy. 101 JACK JANDA, Commissioner Shelton, Washington 98584 RON GOLD, Commissioner

Regular Meeting – District Office/Potlatch

A Resolution Amending New Irrigation Water Rate Schedule for the District

Date: April 28, 2020

No. 2035

Commissioners: Staff has met and reviewed the current status of the budget for 2020. We are recommending to delay the irrigation rate increase, which was set to take effect on

June 1, 2020 to January 1, 2021. Alderbrook Golf and Yacht Club has been closed, and will remain closed until the Governor starts allowing businesses to reopen. Despite no paying customers in their club house and for greens fees, they still have to water their course. By delaying their rate increase to January, this allows them time to get caught up and back on

their feet once the golf course is able to reopen again. We want to have a discussion on this to see how the commission feels about our proposal.

RESOLUTION NO. 2035

A RESOLUTION AMENDING THE IMPLEMENTATION DATE FOR

NEW IRRIGATION RATE SCHEDULE FOR THE DISTRICT

WHEREAS, the District underwent a Cost of Service Analysis in order to determine the cost to provide

water service to its customers and ensure that the costs are fair and equitable between customer classes; and

WHEREAS, the District recognizes the need to keep rates affordable, therefore some of the customer

classes will have achieve cost of service at a slower pace than others;

WHEREAS, the District desires to create one uniform rate schedule for all of the District’s systems; and

WHEREAS, a public rate hearing was held on November 26, 2019; and

WHEREAS, following the public hearing, the commission decided to impose a multi-year rate increase for

the Residential / Small Commercial Customer Class of 4.97% for the Meter Charge and Usage Charge

effective January 1, 2020, with a subsequent 5.03% rate increase for 2021 and 6.05% for 2022, effective the

first of each year. Since Large Commercial is already at cost of service, Large Commercial will not see a rate

increase in the next 3 years. Irrigation will see a slightly higher rate increase of 10% for 2020, and 11% for

2021 and 2022; and

WHEREAS, the Commission has agreed to make the Irrigation rate increase effective June 1, 2020 to

coincide with the fiscal year of the Alderbrook Golf & Yacht Club, with an effective date of January 1 for

2021 and 2022; and

WHEREAS, the recent global pandemic related to COVID-19 outbreak has caused widespread

unemployment and financial devastation for the economy and ratepayers of Mason County PUD No. 1 and

the District wishes to delay the implementation of the scheduled irrigation rate schedule from June 2020 to

January 2021, and extending the second and third year increase to 2022 and 2023.

NOW, THEREFORE, BE IT RESOLVED THAT the new rate schedules as outlined below shall take

effect on the January 2020 billing statements:







No. 2035

Residential / Small Commercial Previous 2020 2021 2022

Meter Charge Between $41 to $72 $51.12 $53.70 $56.95

Usage Charge ($ per ccf)

0 to 400 CF $0.00 $0.00 $0.00 $0.00

401 to 1,000 CF $1.96 $2.05 $2.16 $2.29

1,001+ CF $2.44 $2.55 $2.68 $2.85

Large Commercial Previous 2020 2021 2022

Meter Charge

5/8” $70.04 $70.04 $70.04

3/4” $105.05 $105.05 $105.05

1” $175.09 $175.09 $175.09

1 ½” $350.18 $350.18 $350.18

2” $610.54 $560.29 $560.29 $560.29

3” $1,050.55 $1,050.55 $1,050.55

4” $1,750.91 $1,750.91 $1,750.91

6” $3,501.83 $3,501.83 $3,501.83

8” $5,552.68 $5,602.93 $5,602.93 $5,602.93

Large Commercial (Cont) Previous 2020 2021 2022

Usage Charge ($ per ccf)

0 to 400 CF $0.00 $2.07 $2.07 $2.07

401 to 1,000 CF $1.96 $2.07 $2.07 $2.07

1,001+ CF $2.44 $2.07 $2.07 $2.07

Irrigation Previous 2020 2021 2022

Meter Charge $4,069.87 $4,476.86 $4,924.55 $5,466.25

Usage Charge ($ per ccf) $1.14 $1.25 $1.38 $1.54

Fill Charge Previous 2020 2021 2022

$3.29 $5.47 $5.76 $6.13

System Development Fee Previous 2020 2021 2022

$2,957 $4,733 $4,733 $4,733







No. 2035

ADOPTED by the Board of Commissioners of Public Utility District No. 1 of Mason County, Washington

at a regular meeting on April 28, 2020, the following commissioners being present and voting:

_____________________________

____________________________ Ron Gold, President

Jack Janda, Secretary

_____________________________

Mike Sheetz, Vice President

PUBLIC UTILITY DISTRICT NO. 1 BOARD OF COMMISSIONERS OF MASON COUNTY MIKE SHEETZ, Commissioner


(360) 877-5249 (800) 544-4223 FAX (360) 877-9274 www.mason-pud1.org

April 28, 2020 Alderbrook Golf & Yacht Club Tim Micek and Claire Richmond [email protected] Dear Tim and Claire, Thank you for your letter that our general manager received on April 23rd. Prior to receiving it, she and her staff had already added to our April 28th meeting agenda a resolution to propose again delaying the implementation of the irrigation water rate schedule to January 1, 2021, due to financial hardships related to your main sources of income being closed down. The board passed the resolution at today’s meeting. The PUD staff monitors revenues and expenses against the budget and the strategic and capital work plans on a quarterly basis. All projects are evaluated and prioritized based on business needs, safety, and reliability of services. We will continue to exercise that prudence as our region navigates its way out of this pandemic. It appears that there is also some opportunity to provide some clarification on the COSA recommendations. Staff looks forward to receiving your list of questions. We have included notes from our Treasurer to aid in that. Thank you again for your letter, and we hope you all are safe and well. Sincerely, Ron Gold Mike Sheetz Jack Janda President Vice President Secretary

mailto:[email protected]

1

Mason PUD 1 2020 Strategic Work Plan

* NOTICE: This work plan is a live, flexible document. The tasks assigned are budget and workforce contingent. Items will be added, and some will be removed or changed throughout the year. This work plan is approved by the board of commissioners. Senior staff reports the progress quarterly to the board to ensure that the PUD is on track and has a clear plan and direction.

1.0 Finance Status: Progress, On Track, Off Track, Completed, Removed Assigned To: Due Date:

1.1.1

Aggressively pursue funding opportunities through FEMA, DOE, DOH, WRIA, Mason County and other grantmaking agencies to help pay for capital projects.

Received 3 DOH SRF loan forgiveness grants for Lake Arrowhead and Bay East; Received a $50k grant from BEF for Community Solar; applied for FEMA hazard mitigation grants- proposals are in the review queue; Received reimbursements from FEMA for storm expenses; Applied for Ecology streamflow restoration grant funds for Alderbrook Water Reclamation project ($275k); Submitted LOI to BEF for electric vehicle charging stations in partnership with Skokomish Tribe; Did not receive the Mason County historical preservation grant for the PUD 1 sign rehab.

Katie All Q

1.1.2 List Loan Payoffs in 2020 Completed. No payoffs in 2020. The amortization schedules and early payoffs

have been calculated and are presented with quarterly and annual financial reports.

Katie Q1

1.2 Implement COSA

1.2.1 Rate Hearing – 3-year resolutions for both water & electric Completed in conjunction with passing 2020 budget. Katie Q1

1.2.2 Customer Communication Packets for website & front counter Completed – FAQ’s for both water and electric are on the website and at front

counter. Katie/Kristin Q1

1.2.3 Complete NISC Rate Changes for water & electric- test them to make sure they’re working correctly

Completed. Water was effective with February’s billing. Electric’s will be effective in May for April’s billing. Both have been tested and are working.

Katie/Shiane Q1

1.2.4 Document Updates- rate schedules, post these online Completed – both water and electric’s rate schedules are updated and posted

online. Katie/Shiane Q1

1.2.5 Water Rate resolution – include meter size rates Completed. Katie Q1

1.2.6 Assign water customers into appropriate rate classes based on meter size

Ongoing. Shiane completed the bulk of this work at the end of 2019. Mary and Brandy are currently auditing it to ensure we didn’t miss any accounts that need to be reclassified.

Brandy & Mary/Shiane Q1

1.2.7 Assign electric customers into appropriate rate classes based on consumption

Completed. NISC setup a special rate schedule that changes the basic charge / kWh usage rate from residential to low-use residential automatically each month based on consumption.

Katie/Shiane Q1

1.3 Opportunities to Increase Margins

1.3.1 Large Load Customers

1.3.1.a Complete BPA Study Completed. Kristin Q4

1.3.1.b T3 site logistics – easement, fire suppression, lease, deposit This site is no longer being pursued, per customer request. Removed from plan. Kristin When Need Occurs

2

1.3.2 Water Acquisitions

1.3.2.a Emerald Lake decision Completed. They did not want to turnover ownership, so they now have a new

company managing them. Darin Q4

1.3.2.b New System Viable Inquiries Two Jackies, Hood Canal Terrace currently being processed. Darin & Brandy Ongoing

1.3.3 Cost Savings Processes

1.3.3.a Engineering & Staking for power department in-house training Nothing to report this quarter. Darin Q4

1.3.3.b Water System Plan writing in-house James currently working with Gray & Osborn on Union Reginal, Twanoh

Consolidation plans. Darin Ongoing

1.3.3.c

Set credit card payment limits via policy We evaluated this and decided it was not feasible due to the types of cards. The impact from fees is not based on dollar amounts; they are based on the types of cards that are used, which we’re not able to control, and rarely causes issues for us.

Katie Q1

1.4 Ongoing Financial Efforts

1.4.1 Rates

1.4.1.1 Create regulatory fund for water department, build into rate Completed as part of 2020 budget approval. Katie Q1

1.4.1.2 Recalibrate pole attachment rate, following audit This has begun. We are going to start our pole audit in May. Katie Q3

1.4.1.3 Evaluate feasibility of discount program Moved to 2021. Not the right time for this. Will need to be incorporated into

2022’s budget process if we decided to move this forward. Katie Q3

1.4.1.4 Evaluate disconnect threshold Nothing to report this quarter. Katie & Shiane Q2

1.4.2 Finance Committee Work Nothing to report this quarter. Finance committee will meet in June. Katie & Mike Wittenberg All Qs

1.4.2.1 Meet at least twice a year, to review investments, budget, and debt payoff strategy progress.

Nothing to report this quarter. Finance committee will meet in June. Katie 2x in 2020

1.4.3 Inventory Ongoing -First Quarter cycle count will occur in April for both Water & Electric. Katie & Darin 3x in 2020

1.4.3.1 Review inventory list, and material sheets for electric and water – for count frequency, and what is considered inventory and non-inventory.

Ongoing in conjunction with cycle count. Will complete with first quarter’s count. Power inventory list re-worked. Cycle count on hold due to Covid.

Katie & Darin All Qs

1.4.3.2 IT Inventory Nothing to report this quarter. HCC Q3

1.4.3.3 Small & Attractive assets Nothing to report this quarter. Trish Q3

2.0 Facilities 2.1 Manzanita Substation

2.1.1 Transmission & Distribution feeder from Hwy 106 to Manzanita Substation site

This is a project that is funded with bond proceeds. It has been put out to bid. Darin Q4

2.1.2 Distribution Underground Feeder from Mason 3 McReavy Rd to Manzanita Substation site- Replace Underground Cable

Actively working with PUD 3 on agreement. Had two meetings so far in Q1. Darin Q3

2.1.3 Distribution Underground Feeder double circuit from Manzanita Substation site to Union Substation

This is a project that is funded with bond proceeds. It has been put out to bid. Darin Q3

3

2.2 Continue the Next Phase of Facilities Plan

2.2.1 Covered Storage (re-brief and report on phases to staff/board) Will be completed in April. Reporting twice monthly at board meetings. Kristin & Darin Q2

2.2.2 Tacoma Power pole yard clean up Preliminary clean up report submitted. Waiting for Tacoma Power to decide

which action plan they want to submit to Ecology. Darin asking them for idea on budget and timeline to ensure we are adequately saving for it.

Darin Q3

2.3 Continue facility maintenance

2.3.1 Mow all vaults on highway each year Nothing to report this quarter. Darin Q4

2.3.2 Update landscaping along substations/sign cleaning Nothing to report this quarter. Darin Q3

2.3.3 Fencing Plan

2.3.3.1 Fence between Tacoma City Light and Mason PUD property along pole yard

Delayed for budget savings. Will reevaluate at the end of the year. Not mission critical at this point.

Darin Q4

2.3.3.2 Develop and present fencing plan to staff and board. Include in facilities work plan and budget

Delayed for budget savings. Will reevaluate at the end of the year. Not mission critical at this point.

Darin & Brandy Q1

2.3.4 Overnight accommodations for employees – safety/disaster planning

2.3.4.1 Develop and procure a list of essentials to have on hand Progress: We have updated this to include pandemic response. Rich, Trish and Katie are actively working on this and we plan to procure items for impending arrival of 2nd wave of pandemic this fall. Darin/Rich Q2

2.3.4.2 Radio from County Not a priority for County at this point. Not sure if this is still on their radar. Kristin Q4

2.4 Create a Long-Term Facilities Plan

2.4.1 Existing Campus

2.4.1.1 Rehab sign Applied for County historical preservation grant but wasn’t awarded. Need to

relocate the sign from on top the building due to roof damage and leaks. Staff will come up with a plan before the end of the year.

Kristin Q4

2.4.2 Substations

2.4.2.1 Road 24/Jorstad Substation & Feeder Easement Progress: Timber cruise completed. Submitted to DNR for pricing. Darin Q2

2.4.2.2 Manzanita Substation – continued funding Completed for 2020 with budget process. $28,500 each month is being funded

for substation fund. Katie Ongoing

2.4.2.3 Possibility of taking a feed from Mason 3 New Cushman substation to Mason 1 Hoodsport substation

Actively working with PUD 3 on this. Darin Q2

2.4.2.4 Possibility of Mason 3 taking an emergency feed from T3 Actively working with PUD 3 on this. Darin Q2

2.4.3 Property Acquisitions

2.4.3.1 Agate Beach

Completed. Brandy Q4

2.4.3.2 Minerva Terrace On hold for now until we see what budget looks like for end of the year. Brandy Q4

2.4.3.3 Viewcrest Beach On hold for now until we see what budget looks like for end of the year. Brandy Q4

4

2.4.3.4 Union Ridge/Vuecrest On hold for now until we see what budget looks like for end of the year. Brandy Q4

2.4.3.2 Facilities

2.4.3.2.1 Frontage Property Not pursuing. Removing from plan. Darin Q4

2.4.4 Easements

2.4.4.1

Hood Canal Not pursuing at this time. Removed from plan. Darin

Q4

2.4.4.2 North Hill Hoodsport Nothing to report this quarter. Darin Q4

2.4.4.3 Canal Mutual to North Hill Way Nothing to report this quarter. Darin Q4

2.4.4.4

BIA- Reserve Fund Account This is stalled due to inactivity by BIA. They decided not to pursue it. It still needs to happen as our easement has expired. Katie has spoken with Teresa, who was helping Steve Taylor on it previously. We will fund the original estimate, with inflation. May need to add a new survey fee to the fund as well. Once we have a grasp on what has been done and what needs to be done, we will work to wrap it up. Been ongoing since 2011.

Kristin Q4

2.4.4.5 Road 24 Substation (Just getting easement this year; no more design work is necessary. )

Completed timber cruise. Sent estimate to DNR, who will value the easement. Darin/BKI Q4

2.4.4.6 All new services provide easement- Get paperwork ready Completed. Electric and water now have a form they are sending when there is

no recorded easement on file for every new/altered service. Easements are then recorded with Mason County.

Darin/Kristin/JJ/Brandy Q1

2.4.4.7 Sheldon Properties easement for existing driveway Completed. Kristin/Rob Q4

3.0 ORG DEVELOPMENT 3.1 Implement Training Plans

3.1.1

Training Program for all employees – include in annual budget Training program has been cut due to budget issues and conferences/classes being cancelled. Have implemented virtual training programs for employees instead, most of which are free of charge. Employees are doing these from home and also while at the office. Budget priority lies with the apprentice program and all accredited college programs that our employees are currently enrolled in.

Staff Q3

3.1.2 Continue System Tours – ask commissioners what they want to see

Moving this to Qs 3 & 4 due to distancing restrictions. Darin Q3 & Q4

3.1.3 Budget for Tuition reimbursement and trainings Nothing to report this quarter. Katie Q3

3.1.5 Practice backup training using manuals for essential job duties Ongoing each quarter. Occurred for Q1. Staff Each Q

3.1.4 Show job progression opportunities and match trainings up with those interests

Will occur this summer leading up to annual budget process. Staff Ongoing

3.1.5 Hold Electric 101 training for New Hires Completed. Rick Lovely, PE, former GHPUD manager held training on 2/20/20

for all new hires. Kristin Q1

3.1.6 Hold a PUD 1 Grid Training for New Hires Nothing to report this quarter. Kristin & Darin Q4

3.2 Continue Safety Emphasis & Disaster Planning

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3.2.1 Continue Great Washington Shake Out Nothing to report this quarter. Kim Q3

3.2.2 Exercise the ERP Completed. We are in the middle of exercising the ERP and real-time updating

it to encompass pandemic response. Staff Q1

3.2.3 Put Company wide safety trainings on the office calendar Completed. Kim Q1

3.2.4 Random safety inspections Did not due for Q1 due to COVID disruptions. Scheduled for Q2. Darin/John Spain All Qs

3.2.5 Budget for Safety items and tools Nothing to report this quarter. Darin Q3

3.2.6 Ergonomics onsite clinic Nothing to report this quarter. Katie/Kim Q4

3.2.7 Wellness items for safety agenda Darin and Katie met with John to review expectations for 2020 safety program.

Reviewed safety/wellness protocols as they relate to the pandemic. Nothing else to report this quarter.

Katie/Kristin/John Spain Q1

3.2.8 Customer Education Nothing to report this quarter. Kristin/Julie Q3

3.2.8.1 Disaster preparedness packs for public for 85th anniversary giveaways at picnic – life straws, contact info, shelters, safety checklists to make ‘go bags’

Nothing to report this quarter. Kristin/Julie Q3

3.2.8.2 Generator safety and using your generator to help keep your neighbor’s freezer cold

Nothing to report this quarter. Kristin Q3

3.2.8.3 Life support customer cards Completed. Julie/Shiane Q4

3.3 Continue NISC module rollouts

3.3.1 Mobile Workforce – Make reservation Completed – NISC was onsite March 3-5th. Katie/Shiane Q1

3.3.2 Evaluate Mapping Server Options Evaluated but did not make a decision. Moved this to Q2 after budget review. Kristin/Katie Q1

3.3.3 Smart Hub Payment Arrangement Feature Evaluating how to setup the feature, and input restrictions / limitations. Needs

more discussion when everyone is back in the office. Moved to Q2. Shiane Q2

3.3.4 ACH Auto-pay Completed. Shiane Q1

3.3.5 Kiosk Options Nothing to report this quarter. Shiane Q4

3.3.6 Map Report Training for Notifications Nothing to report this quarter. Kristin/Shiane Q4

3.3.7 Cross Train and Write out instructions for call capture and messenger

Instructions saved in Training Manual on S: Drive. Cross-training to come. Shiane/Julie Q2

3.4 Go Paperless! Campaign Nothing to report this quarter. Kristin/Julie Q2 & Q3

3.5 Continue Canal Comfort Fund Drive Nothing to report this quarter. Kristin/Shiane Q3 & Q4

3.6 85th Anniversary Celebration-

3.6.1 Logo Completed. Kristin/Julie Q1

3.6.2 Press Completed. Updated logo on website and social media, did a happy anniversary

post in February along with interview on KMAS. Kristin/Julie Q1

3.6.3 Merch Ordered some items from print shop. Waiting to do more later this year. Kristin/Julie All Q

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3.7 Website

3.7.1

Spanish Language Page Ongoing. Identifying materials to translate. Kristin/James Q2

3.7.3 Interlocal Agreements Completed. Julie Q1

3.9 Records Compliance

3.9.1 Clean up Outback Nothing to report this quarter. Julie Q4

3.9.2 Set budget for digitization of records & use it all Nothing to report this quarter. Julie Q4

3.9.3 Establish checklist for contract management/renewals that’s sortable by year

Reviewed and cleaned out contracts in vault. Hard copy in vault completed. Need to finish digital copy for s: drive.

Julie Q1

3.9.4 Water records – downsize and digitize Partially done. Waiting for Brandy to be back in the office to go through the pile

of unknowns. Julie/Brandy Q1

3.10 Continue HR & Employee Relations Functions

3.10.1 Hold benefits meeting/workshops with employees as needed: i.e. open enrollment

Nothing to report this quarter. Katie Q4

3.10.1.1 Benefit letters home for deductibles, open enrollment, PEBB, stapled to checks

Nothing to report this quarter. Katie As needed

3.10.1.2 EAP Benefits advertised Nothing to report this quarter. Katie Q2

3.10.1.3 Financial consultant- are employees interested in this? Nothing to report this quarter. Katie Q4

3.10.1.4 DRS Visit- are employees interested in this? Nothing to report this quarter. Katie Q2

3.10.2 Employee Picnic Rescheduled for July 10th. Julie Q2

3.10.3 Service Awards Rescheduled for July 10th. Julie Q2

3.10.4 Two potluck events in-house First one was cancelled due to COVID. Will reschedule when appropriate. Julie 2x in 2020

3.10.5 Customer Appreciation Event Scheduled for October 9th. Kristin/Julie Q3

3.10.6 Highlight employees in awards and other forums Highlighted employees for purchasing, safety and communications. Kristin All Qs

3.10.7 Revamp employee handbook – organize in sections Katie has begun this. Our new contract with Archbright includes an employee

handbook review. We have received copies of other utilities’ recently redesigned handbooks.

Katie/Kristin/Rob Q2

3.10.8 Review Policies and see if any need to be revamped Katie and Julie are working on adding policies to a June policy committee agenda. Katie & Kristin Q2

3.10.9 Exit interviews process Kristin has discussed this with staff and started a list of items. Katie to ask HR

listserv for copies of other utilities’ processes. Katie & Kristin Q3

3.11 Public Involvement

3.11.1 SHS Career Day Nothing to report this quarter. Joyce Q4

3.11.1.a Hood Canal School Career Day Was cancelled this year due to COVID. Will do it next year. Joyce Q1

3.11.3 Parades Nothing to report this quarter. VFW parade appears to be cancelled due to

COVID. Julie 3x in 2020

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3.11.4 Public Power Week- designate as a clean energy community including county resolutions & signs. Ask PUD 3 if they want to join in.

Nothing to report this quarter. Julie/Kristin Q3

3.11.5 EDC Continuing to participate on board. Sponsoring a Public Power luncheon in October.

Kristin Ongoing

3.11.6 Kiwanis PUD 1 signed up as a member for Hood Canal Kiwanis. Jack & Kristin Ongoing

3.11.7 Invite Hood Canal School and Brinnon Elementary to participate in a water conservation poster contest

This got cancelled due to COVID. Will add to 2021’s plan. Julie Q2

3.11.8 Invite Hood Canal School and Brinnon Elementary to participate in an electrical safety poster contest

Julie already reached out to schools prior to them closing. We will reach out again in the fall.

Julie Q3

3.11.9 Complete first Annual Report for 2019 Completed. Digital link to be available online in April. Kristin/Katie Q1

4.0 Water

4.1 Water Rights & WSPs-

4.2.1.1 MOU for Union Regional Ongoing. Nothing new to report. Kristin Q2

4.1.1 Work w/our partners to exercise our water rights Ongoing. Nothing new to report. Kristin Ongoing

4.1.2 Develop a water rights strategic plan and budget to prioritize applications

Completed with Aspect Engineering. Now tying that plan to our water system plan schedule and 10 year capital budget to make sure that all work is planned out and coordinated for the next 10 years.

Brandy Q2

4.1.3 List all plans to be completed in 2020- have a strategic list that matches up with water rights strategy and long-term budget projections/maintenance/grant funding

Ongoing. Reprioritizing due to grant funds. Brandy/Darin w/ help from staff Q2

4.2 Consolidation

4.2.1 Union Regional Consolidation Plan- get this approved! Resubmitted in April. In comment period through July. Kristin Q1

4.2.1.1 Vuecrest reservoir-mainline-design and build (not budgeted in 2020- apply for grants in fall)

Not budgeted in 2020- will apply for grants this fall. Darin/G&O Q2

4.2.1.2 Highland park-reservoir, mainline-design and build (not budgeted for 2020- apply for grants in fall)

Not budgeted in 2020- will apply for grants this fall. Darin/G&O Q2

4.2.2.1 Island Lake Manor, Cherry Park, Woodland Manor (not budgeted for 2020- apply for grants in fall)

Not budgeted in 2020- will apply for grants this fall. Brandy & Darin Q2

4.2.2.2 Twanoh James and Grey and Osborne working on resubmitting plan. On board agenda for review again on May 12th.

Brandy & Darin Q2

4.3 Acquisitions-

4.3.1 Meet with SMAs to discuss next steps-provide notice Done for one SMA, which we declined to renew. The other SMA system is in the process of completing capital projects prior to transferring ownership to the PUD. They are aware of the deadline and we’re working with them to move things along.

Darin Q2

4.3.1.1 Revamp SMA contract to include milestones and process Nothing to report this quarter. Kristin/Brandy/Rob Q2

4.3.2 Utilize new checklist to make good decisions on acquisitions Completed. Using this every time we evaluate a system from Staff to Legal to Water Techs, to Water Rights through Ecology. All aspects of a system are evaluated now before we decide to move forward with acquisition.

Darin & Brandy Ongoing

8

4.0 Maintenance/CIP

4.4.1 Water Loss-

4.4.1.1 Prioritize and budget-

4.4.1.1.1 Lake Arrowhead Received a $162,019 principal forgiveness loan to replace mainline. Will sign load contract in late 2020 and project will be scheduled for 2021.

Brandy Q4

4.4.1.1.2 Viewridge Heights Nothing to report this quarter. Brandy Q4

4.4.1.2 Leak detection services free vs. contract

4.4.1.2.1 Hamma Ridge Completed. Leaks found and fixed by crew. Brandy Q4

4.4.1.2.2 Enchantment Completed. Leaks found and fixed by crew. Brandy Q4

4.4.1.2.3 Ripplewood Nothing to report this quarter. Will apply for mainline replacement grant for this system in the fall.

Brandy Q4

4.4.2 Stream monitoring

4.4.2.1 James to identify two other locations On hold until budget stabilizes. James Q1

4.4.2.2 Provide ongoing maintenance budget and 2020 site budget On hold until budget stabilizes. Current monitoring sites being maintained. James Ongoing

4.4.3 Facility security

4.4.3.1 Close in window at Highland Estates pumphouse, over wellhead Nothing to report this quarter. Brandy Q2

4.4.3.2 Canal Mutual well 3 – install gate Nothing to report this quarter. Brandy Q2

4.4.3.3 Canal View – install gate and cover wellhead Well head cover completed and danger trees removed from above the well house. Will continue minimal/essential work on this site then the rest will be submitted for grants. Will get gate and gravel done in Q2.

Brandy Q2

4.4.4 Identify needed tools and resources

4.4.1 Add items here when we come across needs or requests from crew

Nothing to report this quarter. Darin Ongoing

4.4.5 Identify main line extensions for potential growth

4.4.5.1 SDF earnest money policy Kristin to discuss this with Rob before staff puts proposal together for board and policy committee. Nothing to report this quarter.

Kristin Q2

4.4.5.2 SDF Policy – updating sunset date Nothing to report this quarter. On policy committee agenda for Q2. Kristin/Brandy Q2

4.4.5.3 List 3-4 sites and poll customers View Ridge Heights, Canal View and Union. Kristin/Brandy Q2

4.4.6 Well House Rehab-

4.4.6.1 Bay East Roof Replacement Nothing to report this quarter. Brandy Q3

4.4.6.2 Highland Estates roof Nothing to report this quarter. Brandy Q3

4.4.6.3 Canal View wellhouse, signs, tree removal, gate, rock & well head protection

Removed trees and well head protection. Darin Q3

9

4.4.6.4 Wonderland Nothing to report this quarter. Brandy Q3

4.4.6.5 Woodland Completed. Brandy Q3

4.4.6.6 Tigerlakes Nothing to report this quarter. Brandy Q3

4.4.6.7 Helixon Nothing to report this quarter. Brandy Q3

4.4.6.8 Elk Ridge Nothing to report this quarter. Brandy Q3

4.4.7 Well House Paint

4.4.7.1 Black A & B Nothing to report this quarter. Will do these as time allows, since we are not hiring a temporary crew this year due to budget restraints.

Darin/Brandy Q3

4.4.7.2 Cedar Meadows Nothing to report this quarter. Will do these as time allows, since we are not hiring a temporary crew this year due to budget restraints.

Darin/Brandy Q3

4.4.7.3 Holiday View 2 Nothing to report this quarter. Will do these as time allows, since we are not

hiring a temporary crew this year due to budget restraints. Darin/Brandy Q3

4.4.7.4 Dayton Trails Nothing to report this quarter. Will do these as time allows, since we are not


4.4.7.5 Bellwood Nothing to report this quarter. Will do these as time allows, since we are not


4.4.8 Water System Generators for High Outage Areas

4.4.8.1 Bellwood A This is likely going to be moved to 2021 due to budget shortfalls related to

COVID-19. Brandy Q4

4.4.8.2 Shadowood This may be moved to 2021 due to budget shortfalls related to COVID-19.

However, if funds are available, this system will be prioritized because of frequency of power outages in that area and issues with loss of pressure.

Brandy Q4

4.4.9 Treatment Upgrades

4.4.9.1 Island Lake Manor Nothing new to report this quarter. Brandy Q4

4.4.9.2 Rainbow Lake Nothing new to report this quarter. Brandy Q4

4.4.10 Miscellaneous Water Projects

4.4.10 Well Pump Replacements- Budget for 3/year Doing as needed. Nothing new to report this quarter. Darin As needed

4.4.11 Agate Beach-Design, reservoir and mainline BKI is working on this. It is a priority project for 2020/21. Darin/BKI Q4

4.4.12 Reservoir Cleaning & Inspection-List systems Progress: This has been bid out and is scheduled. Brandy Q3

4.4.13 Backflow Device & CCC Campaign-List systems & status- schedule crews to support timeline

Letters going out in July. Mary and Brandy will provide update on status of campaign- re: systems, progress, etc.

Mary Q3

4.4.14 Water System Planning & Reports Lake Arrowhead, Twanoh, and Union Regional in the works now. Brandy & James Q1

4.4.14.1 Follow up with part B approvals Agate Beach was approved. Brandy & James Q1

4.4.18 Replace failing source meters Nothing new to report this quarter. Brandy Q4

4.4.19 Replace captive air tanks with bladder tanks One replaced at Woodland. Brandy Q4

10

4.4.20

Work with Alderbrook Resort & AGYC on feasibility study for reclaimed water project

Held stakeholder meetings and collected letters of support. Had pre-application meeting with DOE and they were supportive of our application. WRIA 14 also supportive of project. Submitted formal grant application for $275,000 for feasibility study.

James & Kristin Q1 & Q2

4.4.15 Emergency Management Plan

4.4.15.1 Identify regional wells as marshalling points Moving these to Q3. Need to follow up with FEMA on our hazard mitigation

grants. This program has been sidestepped by the COVID-19 response for the time being.

Kristin & James Q3

4.4.15.2 Line out items needed Moving these to Q3. Need to follow up with FEMA on our hazard mitigation


Kristin & James Q3

4.4.15.3 Apply for grants Moving these to Q3. Need to follow up with FEMA on our hazard mitigation


Kristin & Katie Q3

4.4.17 Main Line replacement

4.4.17.1 Lake Arrowhead Received a $162,019 principal forgiveness loan to replace mainline. Will sign

load contract in late 2020 and project will be scheduled for 2021. Darin Q3

4.4.17.2 Canal Beach Tracts Plan to apply for grants for this in fall. Darin Q3

4.4.17.3 Union Plan to apply for a grant in the fall to intertie this with Highway 106. Darin Q3

4.4.17.4 Upgrade 8” water main Manzanita to Dalby Rd. in coordination with electric cable replacement project

Progress: This project is funded by the bond proceeds that need to be spent by the deadline. The project is out to bid and will be awarded in Q2.

Darin Q4

4.5 Customer Education on Water Issues

4.5.1 Newsletter articles on water regulatory issues as well as cost of service topics

Nothing to report this quarter. Kristin All Qs

5.0 Electric

5.1 Continue CIP WORK AND PRIORITIZATION

5.1.1 Manzanita, substation solutions, 34/5, ROW Progress: This project is funded by bond proceeds that need to be spent by the

deadline. It is currently out to bid and will be awarded in Q2. Darin Q2

5.1.2 Install 34.5 kVA regulators on Daley property Progress: Regulators are purchased. Waiting on scheduling to install them. Darin Q3

5.1.3 Union Substation-rebuild remainder of the transmission to 115 kV Progress: This project is funded by bond proceeds that need to be spent by the

deadline. It is currently out to bid and will be awarded in Q2. Darin Q4

5.1.4 Contracted Vegetation Management We are proposing to cut this budget by 25% this year due to budget shortfalls

and rate schedule delays. Will delay to the end of the year to see status of the budget.

Darin Q4

5.1.5 In-house Vegetation Management Crews have already done the Skokomish Valley and Wa Wa Point. Will continue

through the summer. Darin Q2

5.1.6 Overhead to underground Gallowway LN, Luv Rd, Wa Wa Point Nothing to report this quarter. Darin Q3

5.1.7 Underground replacements Sylopash LN, Four Wheel Drive Rd, Division 6 Colony Surf, Sunnyside Rd

Progress: Timber Tides and Foothills Park are done. Darin Q3

5.1.8 Overhead rebuilds Wa Wa Point, Weed Tap, End of Skokomish Valley

We are keeping these in budget and will prioritize high outage areas so our dollars that we spend to fix them turn around as savings on overtime for outages.

Darin Q3

11

5.1.9 Hire Temporary Crew for Summer – 3 electric; 2 water Staff has cancelled the summer crew for 2020 due to budget restrictions. Darin Q2

5.1.2 Insert BKI Deliverables

5.1.2.1 Cross Country estimate Completed by BKI. Submitted as grant to FEMA for slide area. In queue awaiting

decision. Darin/BKI Q2

5.1.3

New Fuel Management Program Progress: We ordered a new Gas Boy system. Our old system freezes and makes us unable to use the fuel pumps until the data is dumped, which wasn’t set up to do automatically. It also doesn’t correctly interface with our fleet management system. Darin and Gwil from HCC scheduled an onsite consult and will work with Joyce and Katie and NISC to get the newer version set up.

Darin/HCC Q3

5.2 Distributive Generation

5.2.1 BEF-Community Solar Community Solar II project is under construction. It was fully subscribed with 51

kilowatts, 51 participants, 10 of whom are low income participants through our new low income solar program, funded by a $50,000 grant from BEF.

Kristin & Julie Q2

5.2.2 Get a design, put to bid, start web page, refresh registration documents, advertise, set all deadlines

All completed. Registration completed. Website is live. www.solar.mason-pud1.org

Kristin & Julie Q1

5.2.3

EV Charger- Continue to work with Energy Northwest, BEF and other partners on a fast charge station for Hoodsport

Have submitted letter of interest to BEF for two electric vehicle charging stations to be installed for the Skokomish Tribe at Lucky Dog Casino. Working with Energy Northwest on a fast charge station through the Commerce grant program. Fast charge station will be with Port of Hoodsport and IGA.

Kristin Ongoing

5.2.4 Redesign the Policies for Solar that are on website Julie collecting samples from other utilities. Nothing else to report this quarter. Julie Q3

5.3 Develop a Technology Plan

5.3.1 AMI

5.3.1.1 Setup AMI committee This is all on hold for 2020. Not going to have budget for this. Will move to

2021’s plan. Kristin & Darin Q3

5.3.1.2 List of utilities to talk to Darin and Shiane had meeting with Lakeview Power & Light that was cancelled

due to social distancing restrictions. Will try to reschedule for end of year, however this project is all on hold for 2020.

Darin Q1

5.3.1.3 Setup meetings with vendors This is all on hold for 2020. Not going to have budget for this. Will move to

2021’s plan. Darin Q2

5.3.1.4 Estimate timeframe and budget This is all on hold for 2020. Not going to have budget for this. Will move to

2021’s plan. Kristin Q3

5.3.1.5 Vendor contractor install or in-house install This is all on hold for 2020. Not going to have budget for this. Will move to


5.3.1.6 Rollout implementation plan This is all on hold for 2020. Not going to have budget for this. Will move to


5.3.2 SCADA

5.3.2.1 See if existing SCADA will work with AMI This is all on hold for 2020. Not going to have budget for this. Will move to

2021’s plan. Darin Q2

5.3.2.2 How much SCADA do we need This is all on hold for 2020. Not going to have budget for this. Will move to

2021’s plan. Darin/BKI Q2

5.3.3 CYBER

http://www.solar.mason-pud1.org/

http://www.solar.mason-pud1.org/

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5.3.3.1

Energy NW Phishing testing Completed. Did our first test in Q1. Everyone passed. 2 more rounds of testing scheduled for 2020.

Kristin Q1

5.3.3.2 Energy NW Cyber Training Completed Feb. 19th. Kristin Q1

5.3.3.3 Vendor/Contractor testing Completed. Main contractors included in testing. Everyone passed. Will

continue in future rounds of testing. Kristin Q1

5.3.4 5G- stay apprised Ongoing discussions through WPUDA. Kristin/Board/Rob Ongoing

5.4 Emphasis on Pole & Meter Audits

5.4.1 Do more 3PH/CT Meter Audits Done in 1st Quarter. Darin will have them continue through 2nd quarter. Darin Q3

5.4.2 Conduct a new pole/pole attachment audit Ferrier to start this in Q2. Will do every 5 years. Darin Q2

5.4.3 Replace leaning poles Darin has identified one in the valley. Will do if time permits. It’s not a danger, it

just looks weird because it’s at an angle, but it has been for 20 years. Darin Q3

5.4.4 Point out rebuilds in danger areas Removing this from plan because we’ve called these out in other areas of this

document. It’s duplicating reporting. Darin Q3

5.5 Reliability and Emergency Planning

5.5.1 County planning coordination Kristin actively working with Mason County emergency response group for

COVID-19 response. Kristin Ongoing

5.5.2 Take advantage of joint ventures with PUD3, HCC, Tacoma Power, Mason County

Manzanita work will include HCC, as will other rebuild areas. Partnering with PUD 3 on interties. We have multiple locations going where we’re working with sister agencies to streamline work and save on expenses.

Kristin Ongoing

5.6 BPA

5.6.1 Prep for 2028 Kristin has ongoing communication with Marcus on this and PUD 1 participating

with WPAG also. Kristin/Marcus Ongoing

5.6.2

Rates Waiting to hear some definitive offers from BPA regarding COVID rate relief. APPA has been working hard to lobby for additional LIHEAP funds to help customers but BPA needs some kind of stimulus package to help with rate relive to its wholesale customers.

Kristin/Katie Ongoing

PUD1 – Executive Summary – March 2020

This report summarizes information on the current financial status of Mason County PUD No. 1 for the month of March 2020.

• Work in Progress: o 2019 Annual Electric Power Industry Report – Due April 30, 2020 o FEMA Funding – January 2020 Storm & COVID-19 o Budget / Cash Flow Monitoring from COVID-19 Effects o 2019 Annual Report – due May 30, 2020

• Completed Projects:

o 2020 Budget o 2018 Audit o 2019 Privilege Tax Return – Due February 25, 2020 o 2019 Form 7 – Due March 31, 2020

• Planned Key Milestones, Activities and / or Events:

o Develop benchmark financial ratios, to compare PUD No. 1’s ratios to other like-size districts.

o Long range financial and budgetary planning – ongoing.

Financial Highlights: • Revenue – Gross Revenue was $1,097,306 for the month of March 2020. • Expenditures –Gross expenditures were $856,166 for the month of March 2020.

Financial Metrics as Compared with Prior Year: March 2020

March 2019

Total General Cash and Investments $919,511 $661,071

Current Ratio (Current Assets/Current Liabilities) 3.58 to 1 3.44 to 1

Debt Service Coverage (O&M/ Debt Service) 3.00 3.36 Long-Term Debt to Net Plant 42% 46% Total Debt to Equity Ratio (Total Liabilities/Total Equity) 59% 61%

Long Term Debt to Equity Ratio (Long Term Debt / Total Equity)

54% 58%

Times Interest Earned Ratio (Earnings before Interest & Taxes/Total Interest)

4.70 4.13

Cash on Hand (Total Available Cash/Average Daily Costs)

35 Days (General) 122 Days (All Funds)

25 Days (General) 99 Days (All Funds)

Electric Water Sewer Totals

Total Revenue 921,480.86$ 175,024.26$ 801.05$ 1,097,306.17$ Budgeted 944,521.00$ 175,844.60$ 765.02$ 1,121,130.62$ Difference (-/+) (23,040.14)$ (820.34)$ 36.03$ (23,824.45)$ % of Budget 98% 100% 105% 98%

Total Expenditures 710,626.60$ 145,434.34$ 104.83$ 856,165.77$ Budgeted 748,668.12$ 157,029.80$ 179.83$ 905,877.75$ Difference (-/+) (38,041.52)$ (11,595.46)$ (75.00)$ (49,711.98)$ % of Budget 95% 93% 58% 95%

Net Operating Margins 210,854.26$ 29,589.92$ 696.22$ 241,140.40$ Budgeted 195,852.88$ 18,814.80$ 585.19$ 215,252.87$ Difference (-/+) 15,001.38$ 10,775.12$ 111.03$ 25,887.53$ % of Budget 108% 157% 119% 112%

Mason County PUD No 1

Budget Summary by Division For the Month Ended March 31, 2020

1st Quarter 2020

1st Quarter Budget

% of 1st Budget

2020 Actuals 2020 Budget% of

Annual Budget

Revenue 2,846,136.08 2,888,906.00 99% 2,846,136.08 9,096,953.50 31%

Expenditures Distribution Operating & Maintenance 243,464.60 241,155.19 101% 243,464.60 1,044,316.00 23% Energy Services 1,045,126.47 1,045,500.00 100% 1,045,126.47 3,372,250.00 31% General & Administrative 490,085.96 507,746.98 97% 490,085.96 1,984,973.00 25% Tax, Depreciation, & Interest 546,170.93 556,916.95 98% 546,170.93 2,130,459.00 26% TOTAL EXPENDITURES 2,324,847.96$ 2,351,319.12$ 99% 2,324,847.96 8,531,998.00$ 27% NET OPERATING MARGINS 521,288.12$ 537,586.88$ 97% 521,288.12 564,955.50$ 92%

Mason County PUD No. 1Status of Budget

As of March 31, 2020

ELECTRIC DIVISION

1,044,316.00 12%

3,372,250.00 40%1,984,973.00 23%

2,130,459.00 25%2020 Budgeted Expenditures

Distribution Operating &Maintenance

Energy Services

General & Administrative

Tax, Depreciation, & Interest

243,464.60 …

1,045,126.47 45%

490,085.96 21%

546,170.93 24%

1st Quarter Expenditures DistributionOperating &Maintenance Energy Services

General &Administrative

Tax, Depreciation,& Interest

951,641.00 91%

82,213.47 8% 11,272.00 1%Energy Services by Vendor

BPA

Lilliwaup

Rocky Br.

1st Quarter 2020

1st Quarter Budget

% of 1st Qtr

Budget2020 Actuals 2020 Budget

% of Annual Budget

Revenue 534,054.36 502,091.60 106% 534,054.36 2,211,051.00 24%

Expenditures Distribution Operating & Maintenance 111,112.01 161,221.15 69% 109,818.12 651,644.00 17% Energy Services 34,233.11 41,250.00 83% 34,233.11 164,500.00 21% General & Administrative 154,218.16 109,021.08 141% 154,218.16 471,028.92 33% Tax, Depreciation, & Interest 165,894.99 160,589.59 103% 165,894.99 676,272.00 25% TOTAL EXPENDITURES 465,458.27$ 472,081.82$ 99% 464,164.38 1,963,444.92$ 24% NET OPERATING MARGINS 68,596.09$ 30,009.78$ 229% 69,889.98 247,606.08$ 28%



WATER DIVISION

651,644.00 33%

164,500.00 8%

471,028.92 24%

676,272.00 35%

2020 Budgeted Expenditures

DistributionOperating &Maintenance

Energy Services

General &Administrative

Tax, Depreciation,& Interest

111,112.01 24%

34,233.11 7%

154,218.16 33%

165,894.99 36%

1st Quarter Expenditures Distribution Operating &Maintenance

Energy Services

General & Administrative

Tax, Depreciation, &Interest

1st Quarter 2020

1st Quarter Budget

% of 1st Qtr Budget

2020 Actuals

2020 Budget

% of Annual Budget

Revenue 2,387.08 2,294.82 104% 2,387.08 9,180.00 26%

Expenditures Distribution Operating & Maintenance 0.00 298.89 0% 0.00 4,758.00 0% Energy Services 129.48 165.00 78% 129.48 660.00 20% Tax & Depreciation 87.44 87.00 101% 87.44 1,764.24 5% TOTAL EXPENDITURES 216.92$ 550.89$ 39% 216.92$ 7,182.24$ 3% NET OPERATING MARGINS 2,170.16$ 1,743.93$ 124% 2,170.16$ 1,997.76$ 109%



SEWER DIVISION

4,758.00 66%

660.00 9%

1,764.24 25%

2020 Budgeted Expenditures

DistributionOperating &Maintenance

Energy Services

Tax &Depreciation

0.00 0%

129.48 60%

87.44 40%

1st Quarter Expenditures

Distribution Operating &Maintenance

Energy Services

Tax & Depreciation

3/31/2020

General Electric Cash 180,469.27 General Water Cash 90,760.95 General Sewer Cash 4,195.20 Investments 565,303.06 Petty and Register 600.00 General Funds Total 841,328.48

Designated Reserves Commerical Liability Fund 27,850.14 Computer Replacement Fund 102,719.98 Contruction Fund (Electric) 1,526,052.10 Contruction Fund (Water) 1,159,871.12 Pole Yard 102,719.98 Privilege Tax Fund 31,983.50 Replacement Equipment Fund 294,530.31 Substation Fund 1,767,493.36 Designated Reserves Total 5,013,220.49$

Restricted Funds Canal Comfort Donations 977.23 Customer Deposits 77,205.38 Electric Revenue Bond '18 158,159.80 Electric Revenue Bond Reserve '18 497,670.99 Electric System Revenue Bond 2014 108,183.24 Electric System Bond Reserve '14 302,927.89 Public Works Trust Fund 53,385.70 RUS Treasury Bond 129,357.07 US Treasury Reserves 235,946.79 Water System Revenue Bond '18 71,546.10 Water Regulatory Fund 25,028.00 Restricted Funds Total 1,660,388.19

TOTAL ALL FUNDS 7,514,937.16$

Beginnging Balance Principle Payments Ending BalanceElectric Revenue Bond 2014 2,820,000.00 2,820,000.00 Electric Revenue Bond 2018 6,505,000.00 6,505,000.00 PWTF 890,168.23 890,168.23 RUS Long Term Debt 2,984,615.50 (29,846.15) 2,954,769.35 Water Bond '18 2,639,000.00 2,639,000.00 Total Long Term Debt 15,838,783.73 (29,846.15) 15,808,937.58

Mason County PUD No. 1Treasurer's Report to Commission

March 31, 2020

Long-Term Debt

1/1/2020 Transfer In Interest Earned Transfers Out 3/31/2020

General Investments 525,132.31 38,100.00 2,070.75 0.00 565,303.06

Designated Reserves Commerical Liability Fund 64.69 27,750.00 32.45 0.00 27,847.14 Computer Replacement Fund 102,325.08 0.00 394.90 0.00 102,719.98 Pole Yard 102,325.08 0.00 394.90 0.00 102,719.98 Privilege Tax Fund 169,318.58 42,000.00 269.92 -179,605.00 31,983.50 Replacement Equipment Fund 293,398.02 0.00 1,132.29 0.00 294,530.31 Substation Fund 1,675,428.34 85,500.00 6,565.02 0.00 1,767,493.36 Water Regulatory Fund 0.00 24,999.00 29.00 0.00 25,028.00 Designated Reserves Total 2,342,859.79 180,249.00 8,818.48 -179,605.00 2,352,322.27

Restricted Funds Electric Revenue Bond '18 29,882.98 128,013.00 263.82 0.00 158,159.80 Electric Revenue Bond Reserve '18 495,757.75 0.00 1,913.24 0.00 497,670.99 Electric System Revenue Bond 2014 29,603.08 78,375.00 205.16 0.00 108,183.24 Electric System Bond Reserve '14 301,763.31 0.00 1,164.58 0.00 302,927.89 Public Works Trust Fund 17,277.26 36,000.00 108.44 0.00 53,385.70 RUS Treasury Bond 355,861.85 60,000.00 1,387.20 -51,945.19 365,303.86 Water System Revenue Bond '18 5,546.10 66,000.00 97.62 0.00 71,643.72 Restricted Funds Total 1,235,692.33 368,388.00 5,140.06 -51,945.19 1,557,275.20

TOTAL ALL FUNDS 4,103,684.43 586,737.00 16,029.29 -231,550.19 4,474,900.53

Mason County PUD No. 1LGIP Investment Activity 1st Quarter 2020

Mason PUD 1 Honored with National Award for Outstanding Safety Practices

For the second consecutive year, Mason County PUD No. 1 (Potlatch, Wash.) has earned the American

Public Power Association’s Safety Award of Excellence for safe operating practices. The utility earned

another first-place award in the category for utilities with 30,000-59,000 worker-hours of annual worker

exposure.

“Strong safety programs are essential to ensuring that electric utility employees are informed and

trained on safe work procedures,” said Brandon Wylie, chair of the APPA’s Safety Committee. “The

utilities receiving this award have proven that protecting the safety of their employees is a top priority.”

More than 335 utilities entered the annual Safety Awards contest, which is the highest number of

entrants in the history of the program. Entrants were placed in categories according to their number of

worker-hours and ranked based on the most incident-free records during 2019. The incidence rate, used

to judge entries, is based on the number of work-related reportable injuries or illnesses and the number

of worker-hours during 2019, as defined by the Occupational Safety and Health Administration.

“We are very proud of our safety record, which is a direct carryover of our continuous-improvement

safety culture,” said Kristin Masteller, general manager of Mason PUD 1. “This award reflects the

leadership from our operations director and foremen, our safety training program, and the hard work

that goes into ensuring that our team members go home safe to their families every day.”

The Safety Awards have been held annually for the last 60 years. The American Public Power Association

is the voice of not-for-profit, community-owned utilities that power 2,000 towns and cities nationwide.

For Immediate Release April 13, 2020

Mason PUD 1 Partners with Local Businesses for Supplies

Potlatch, WA – Mason County PUD No. 1 has found a new partner in its battle to protect utility workers during the COVID‐19 pandemic. The Hardware Distillery company in downtown Hoodsport has shifted their business model from producing craft spirits like whiskey and gin, to the production of hand sanitizer for the Mason County community. Jan and Chuck Morris, owners of the distillery, say they intentionally limit the offering of their product to Mason County to ensure that the limited resources are put to good use in their own community. PUD 1, along with other essential businesses, are competing with the rest of Mason County’s shoppers for supplies to keep their utility

personnel working and safe, such as hand sanitizer, face masks, rubbing alcohol, bleach, disinfectant wipes, and of course, toilet paper. Lead by the efforts of PUD 1 purchasing agent Rich Crump and treasurer Katie Arnold, the PUD has been working creative angles and leveraging longtime relationships with suppliers and retail managers to procure the supplies the District needs to continue operating. When the opportunity came to partner with The Hardware Distillery company to purchase sanitizer locally in Hoodsport, it seemed like a perfect match. The Hardware Distillery is unable to procure plastic containers, so they use their regular glass bottles. From a glance, the bottles of sanitizer look like regular bottles of alcohol one would buy off their shelves, but with different labels. They produce their 70% v/v (alcohol volume by volume) sanitizer from scratch, making it from an apple cider provided by Whitewood Cider Co. in Olympia. They have set up a barter arrangement with the Thurston County distillery to trade the apple cider product for finished bottles of sanitizer that the Whitewood Cider Co. owner then donates to a homeless shelter in Olympia. Jan and Chuck also donate sanitizer to Hoodsport’s fire district and food bank, as well as Mason County’s Department of Emergency Management. They retail their product to the public through Hood Canal Outfitters grocery store across the street, with new product

PUD 1 Purchasing Agent Rich Crump (left), poses an appropriate social distance away from The Hardware Distillery owners Chuck and Jan Morris at their shop in Hoodsport.

Sanitizer is bottled in regular glass bottles‐ even airplane size!

being stocked on Fridays. To control the supply for critical service providers, they only take special orders for essential businesses like PUD 1. The PUD is very appreciative of the new business arrangement and hopes the new business stream will help keep The Hardware Distillery operating during the downturn. “What they’re doing for their community is really great”, said PUD purchasing agent Rich Crump. “Being able to use a local business here in Hoodsport to get sanitizer spray to disinfect our trucks and equipment is a win‐win for everyone.” Over the last several weeks, PUD 1 has encouraged citizens and businesses still in operation to utilize local stores and restaurants for goods and services before going outside the county. “We’re all in this together and we want to still have each other around when the county and our country open back up for business”, said Crump.

###

Incorporated in 1934, Mason County PUD No. 1 was the first public utility district formed in Washington State. PUD 1 provides non-for-profit water, sewer and electric services to approximately 7,200 customers in both Mason and Jefferson

counties. The District’s mission is to provide customers with safe, reliable and valued utility services.

For more information, contact: Kristin Masteller kristinm@mason‐pud1.org or (360) 877‐5249

Mason PUD No. 1 gets help from local business to protect utilty workers during COVID-19 event

Mason County PUD No. 1 has found a new partner in its battle to protect utility workers during the COVID-19 pandemic. The Hardware Distillery company in downtown Hoodsport has shifted their business model from producing craft spirits like whiskey and gin, to the production of hand sanitizer for the Mason County community. Jan and Chuck Morris, owners of the distillery, say they intentionally limit the offering of their product to Mason County to ensure that the limited resources

are put to good use in their own community.

1) · 2020-06-03 · mason county pud no. 1 . regular board meeting . april 28, 2020 . 1:00 p.m....

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