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PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY COMMISSIONERS’ MEETING
DRAFT AGENDA September 26, 2017
4:30 PM
PLEDGE OF ALLEGIANCE
CONSENT AGENDA 1. Approval of Agenda 09/26/17 2. Approval of Minutes 09/19/17 3. Approval of Vouchers 09/26/17 4. Ratification of Vouchers 09/05; 09/19
AUDIENCE COMMENTS
OLD BUSINESS
5. Manager’s Report
NEW BUSINESS
6. IT Planning – Discussion
7. 2018 Budget – Financial Planning Debt Scenarios - Discussion
MISCELLANEOUS
COMMISSIONER COMMENTS
EXECUTIVE SESSION – Approximate Duration of 30-60 Minutes Per RCW 42.30.110(g)
ADJOURNMENT
JUDY RESERVOIR ELEVATION
Commission Meeting 1 September 19, 2017
MINUTES OF THE REGULAR MEETING OF THE COMMISSION PUBLIC UTILITY DISTRICT NO. 1 OF SKAGIT COUNTY, WASHINGTON
September 19, 2017
The regular meeting of the Commission of Public Utility District No. 1 was held in the Aqua Room of the utility located at 1415 Freeway Drive, Mount Vernon, Washington, on September 19, 2017.
The meeting was called to order at 4:30 PM. Those Commissioners in attendance were: Robbie Robertson, President; Eron Berg, Vice President; and Al Littlefield Secretary. Also in attendance were: George Sidhu, General Manager; Sally Saxton, Finance Manager/Treasurer; Peter Gilbert, Attorney; and Catherine Price, Administrative Assistant; Audience: Judy Littlefield, Loren Tvedt. District Employees: Mike Fox, Kathy White, Gary Chrysler, Luis Gonzalez, Mark Semrau and Kurt VanBurkleo.
Commissioner Littlefield led the Pledge of Allegiance.
Commissioner Littlefield moved to approve the Consent Agenda for September 19, 2017: 1. Approval of Agenda 09/19/17 2. Approval of Minutes 09/12/17 3. Approval of Vouchers 09/19/17 4. Project Acceptance – Woodside Division 3, 4 & 5 (Mount Vernon) 5. Agreement for Professional Services-Accent Business Services, Inc. –
Enterprise Content Management Document Management, Imaging and Archiving Email Archiving and Management Digital Texting Management Systems
Commissioner Berg requested that item 5 be moved to new business. Commissioner Littlefield moved to approve the Consent Agenda as amended. The motion passed.
Under New Business:
5 Agreement for Professional Services-Accent Business Services, Inc. – Enterprise Content Management Document Management, Imaging and Archiving Email Archiving and Management Digital Texting Management Systems Manager Sidhu reviewed the agreement. He described the need for a firm to assess our document management system needs. A brief discussion ensued including the many benefits: document retrieval, enhancing security, auto-retention, searching for documents, public records requests, and more.
Commissioner Berg made a motion to table the agreement pending further discussions, more research and a presentation to the Commission.
The motion to table the agreement passed.
Audience Comments: None
Agenda Item #2
Commission Meeting 2 September 19, 2017
Under Old Business:
6. Manager’s Report - Manager Sidhu reported on the following items:
• The 2018 Budget Hearing is scheduled for Monday, October 2.
• A Work Session is scheduled after today’s meeting to discuss Fleet Management and Financing CIP options with regard to the 2018 Preliminary Budget.
• An open house of the District’s Division Street Tank and Booster Pump Station Project for neighboring property owners had a good turnout with positive feedback. DN Tanks is on site now and will be conducting a tour on Tuesday, October 3, details and invitations to come.
• I will be attending a telecommunication meeting on September 21 in Olympia.
• Commissioner Robertson would be attending the Skagit Watershed Council meeting on 09/21 from 11:30-2:00 PM.
Under New Business:
7. Resolution No. 2249-17 Granting the General Manager Authority to Enter into the Real Estate Purchase and Sale Agreement with Weyerhaeuser Company for Purchase of Property in the Cultus Mountain Watershed – Action
Manager Sidhu presented the purchase and sale agreement with a brief summary and requested authorization to sign said agreement.
Commissioner Berg moved to authorize the General Manager to sign Resolution No. 2249-17, granting the General Manager Authority to Enter into the Real Estate Purchase and Sale Agreement with Weyerhaeuser Company for Purchase of Property in the Cultus Mountain Watershed as presented.
The motion passed.
Commissioner Littlefield thanked Engineering Supervisor Trueman for his work on this project.
Under Commissioner Comments, Commissioner Littlefield reported on his recent attendance at the WPUDA meeting in Wenatchee.
Commissioner Berg apologized for not being more prepared for the meeting by thoroughly reviewing the packet in advance.
Commissioner Robertson reported on his recent attendance at the SCOG meeting in Lyman on September 20. He apologized for his tone at last week’s budget workshop.
At this time, President Robertson recessed the regular meeting to go into executive session per RCW 42.30.110(g) for an approximate duration of 15-30 minutes. The meeting was recessed at 5:06 PM.
President Robertson convened the executive session at 5:10 PM.
Agenda Item #2
Commission Meeting 3 September 19, 2017
President Robertson reconvened the regular meeting of the Commission at 5:45 PM.
Having no further business to come before the Board, Commissioner Littlefield moved for adjournment. The motion passed and the meeting of September 12, 2017 was adjourned at 5:52 PM. Respectfully submitted: Catherine Price, Administrative Assistant
Agenda Item #2
Agenda Item #6
9/25/17, 9:37:59 AM 1 of 13
Agenda Item #6
9/25/17, 9:37:59 AM 2 of 13
Agenda Item #6
StandaloneSystems
Y2KUpgrades
Orcom HandReceiptScanner
RadioReadTouchRead
CentralReceiptPrinter
ActiveSoftware
ProjectSoftware
LUDProgramStandalone
9/25/17, 9:37:59 AM 3 of 13
Agenda Item #6
StandaloneSystems
LUDProgramStandalone
SkagitPUDWebsite
ArcGISStandalone
TokayStandalone
StreamsWebsite
FileServer(s)
OrcomAutomatedReceiptandCheckScanner
RadioReadAMR
WorkstationReceiptPrinters
ActiveSoftware
ProjectSoftware
9/25/17, 9:37:59 AM 4 of 13
Agenda Item #6
9/25/17, 9:37:59 AM 5 of 13
Agenda Item #6
StandaloneSystems
LUDProgramStandalone
SkagitPUDWebsite
TokayStandalone
StreamsWebsite
FileServer(s)
ActiveSoftware
Interface
Interface
AutomatedReceiptand
CheckScanner
Cayenta
CognosReporting
Cityworks ArcGISInterface
CrystalReportsReporting
WorkOrderIntegration
NorthstarCIS
RadioReadAMRInterface
SubstantialCompletion
ApprovedSoftware
9/25/17, 9:37:59 AM 6 of 13
Agenda Item #6
9/25/17, 9:37:59 AM 7 of 13
Agenda Item #6
StandaloneSystems
WebsiteLink
PaymentusOnlineBillPay
IVR
GISAssetRefreshProcessInterface(InHouseDevelopmentbyVivian)
WOIntegration
Kaye-SmithBillPrinting,Notices,etc.(UploadData)
CayentaUpgrade
EmployeeSelfService
CognosCoreReportsUpgrade
InterfaceMigration
LUDProgramStandalone
SkagitPUDWebsite
TokayStandalone
StreamsWebsite
FileServer(s)
MeetingRecordings
Interface
Interface
Interface
Interface
AutomaticBill
Scanning
NorthstarCIS
CityworksUpgrade
ArcGISUpgrade
CrystalReportsReporting
MigrateLegacyORCOMDatatoSQLServer
AS-400
ZENNERAMR
PilotProjectZennerCloudService
ZennerInterfaceProcessRadioRead
AMR
ActiveSoftware
ApprovedProjects
9/25/17, 9:37:59 AM 8 of 13
Agenda Item #6
StandaloneSystems
WebsiteLink
PaymentusOnlineBillPay
GISAssetRefreshProcessInterface(InHouseDevelopmentbyVivian)
Kaye-SmithBillPrinting,Notices,etc.(UploadData)
LUDProgramStandalone
SkagitPUDWebsite
TokayStandalone
StreamsWebsite
FileServer(s)
MeetingRecordings
ZENNERAMR
PilotProjectZennerCloudService
ZennerInterfaceProcess
ActiveSystems
ApprovedProjects
9/25/17, 9:37:59 AM 9 of 13
Agenda Item #6
StandaloneSystems
PaymentusIVR
CayentaUpgrade
EmployeeSelfService
CognosCoreReportsUpgrade
InterfaceMigration
LUDProgramStandalone
SkagitPUDWebsite
TokayStandalone
StreamsWebsite
FileServer(s)
MeetingRecordings
Interface CityworksUpgrade
ArcGISUpgrade
MigrateLegacyORCOMDatatoSQLServer
AS-400
ActiveSystems
ApprovedProjects
9/25/17, 9:37:59 AM 10 of 13
Agenda Item #6
StandaloneSystems
Interface
WebsiteLink
NorthstarCIS
LUDProgramming
CustomerConnect
Cayenta
(GLModel)
EmployeeSelfServiceUpgrade
PaymentuseBill
Cognos(CoreReports)
CityworksServiceOrderInterface
TokayServerwithCIS
Integration
UpgradeSchedulingCarryOverCompletionQ12018
ServiceOrderInterfaceTokayInterface
SkagitPUDWebsite
StreamsWebsite
FileServer(s)
MeetingRecordings
RadioReadAMR
SoftwareUpgrade
ActiveSystems
ApprovedProjects
ProposedProjects
MobileWorkOrdersMobileServiceOrdersMobileBackFlowManagement
MobileFireHydrantProgram
(withMVFD)
9/25/17, 9:37:59 AM 11 of 13
Agenda Item #6
Northstar
BillImageScanning
MeetingRecordings
MobileDeviceManagement
EmailServer
Texting
WebsitePublishedData
CayentaHumanResourcesEmployeeSelf
Service
CityworksArcGIS
OperationsandWTP
Finance
EngineeringandConstruction
Administration
Scanner
DigitalDocuments(FileServers)
EnterpriseContent
Management
DocumentManagement
ActiveSystems
ApprovedProjects
ProposedProjects
9/25/17, 9:37:59 AM 12 of 13
Agenda Item #6
Major Minor
Tools
MinorSoftware
Infrastructure
(NotReplacements)
CIS
2-4YearsFeatureDependent
ReportingSystems
2-4Years
CoreFinancialsandRelatedSoftware
2-4YearsFeatureDependent
MobileDeviceManagement
AsNeeded
EmailServerAsNeeded2-3Years
CellPhonePlanReview
Annually
Website***
NeedsAttention
HumanResourcesEmployeeSelf
Service2-4Years
FeatureDependent
CityworksArcGIS2-4Years
EnterpriseContentManagement
DocumentManagement2-4Years
CoreServerReplacements
7Years
CoreNetworkEquipment
Replacements7-10Years
NetworkSecurityAppliance
Replacements5-7Years
CoreStorageReplacements
7Years
TelephonyReplacements10Years
PC’s,Tablets,Laptops,CellPhones,3- 5Years
MajorTools7-15YearsOrAsNeeded
MinorToolsAsNeeded
MonitorsandLargeScreens
5Years
UPSHardware10Years3YearsonBatteries
BuildingCabling
+/- 20Years
FiberCabling50+Years
OnlineBillPaymentBillOutsourcing
eBill,IVRCloudServicesVendorManaged
MicrosoftOffice7Years
(Shouldbe5)
AutoCAD2Years
ArcGISDesktopSoftware2-Years
InfoWater2Years
TelephoneReplacements10Years
SCADAHMI
2-4Years
AccessControl
2-4Years
SecuritySystemSoftware
2-4Years
SecurityCamerasandSoftware
10Years
*MajorSoftwareUpgradesareconsideredonacasebycasebasesandaredrivenbynecessarybusinessprocessfeatures,technologyrequirements,orbyregulation.Theydon’t“wearout.”
9/25/17, 9:37:59 AM 13 of 13
Agenda Item #6
Agenda Item #7
Skagit PUD No. 1Capital Improvement Program Version: Preliminary Budget
Project Costs and O&M Impacts in Year: 2017 Constant Dollars
No. DescriptionTotal 2017‐27 (Constant $)
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027
Department Capital:1 Finance 66,000$ 25,000$ 41,000$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ ‐$ 2 Computer Software/ IT 5,588,000 529,000 559,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 3 Customer/ Meter 70,373 15,000 55,373 4 Equipment/Ops 4,144,500 526,000 1,118,500 600,000 400,000 600,000 150,000 150,000 150,000 150,000 150,000 150,000 5 Water Treatment Plant 7,303,000 1,984,000 819,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6 Engineering 2,274,000 254,000 220,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 200,000 7 Major Capital:8 Transmission Pipelines:9 Josh Wilson Road Improvements 65,000 65,000
10 Div St. Tank, Booster and N. 30th Piping 8,000,000 6,500,000 1,500,000 11 Transmission Line, Judy ‐ MV Phase 2 27,000,000 2,100,000 2,500,000 11,200,000 11,200,000 12 Judy SW Transmission Phase 2 6,100,000 1,000,000 5,100,000 13 Judy SW TransmissionPhase 3 17,200,000 1,300,000 1,700,000 13,200,000 1,000,000 14 Judy SW Transmission Phase 4 4,800,000 1,000,000 3,800,000 15 Pipelines:16 Burklund Road Pipeline 4,700,000 250,000 750,000 3,700,000 17 Conway I‐5 Crossing 1,200,000 200,000 1,000,000 18 McLean Road Pipeline 7,500,000 200,000 500,000 6,800,000 19 Best Road Pipeline 5,200,000 50,000 5,150,000 20 North Fork Skagit River Crossing 9,600,000 1,000,000 8,600,000 21 Fiber:22 Josh Wilson Fiber ‐ 23 Burlington Hill Fiber ‐ 24 PUD Campus Fiber from Burlington ‐ 25 Old 99 and Cook Rd. Fiber to Sedro Woolley ‐ 26 PUD Campus Fiber from 9th and Highland 100,000 30,000 70,000 27 Division St Fiber from 9th and Highland 100,000 30,000 70,000 28 Division St Fiber from Waugh Road Booster 40,000 20,000 20,000 29 Division St Fiber to Eagle's Nest 100,000 30,000 70,000 30 Cascade Ridge Fiber Segment 1 250,000 50,000 200,000 31 Cascade Ridge Fiber Segment 2 150,000 30,000 120,000 32 Cascade Ridge Fiber Segment 3 300,000 50,000 250,000 33 Cascade Ridge Fiber Segment 4 175,000 50,000 125,000 34 Duke's Hill Tank Fiber 175,000 50,000 125,000 35 Reservoirs:36 E Division Reservoir, Pump Station and Piping ‐ 37 Cascade Ridge Reservoir 50,000 50,000 38 Big Lake Reservoir 50,000 50,000 39 Pleasant Ridge Area Reservoir 100,000 100,000 40 N Sedro Woolley Reservoir 250,000 250,000 41 Burlington Reservoir ‐ 42 Mount Vernon‐County Reservoir ‐ 43 Land:44 Gilligan Creek Watershed Land Purchase 1,590,000 1,590,000 45 Operations and Maintenance:46 Cedar Hills Booster Pump ‐ 47 WTP Chemical Feed System Replacement 850,000 850,000 48 WTP Dry Scrubber Retrofit 450,000 450,000 49 Raw Water PS Pump Analysis (RH2) 200,000 125,000 75,000 50 Raw Water Pump Station Upgrade 3,800,000 100,000 1,500,000 1,200,000 1,000,000 51 Document Management Software 500,000 500,000 52 Badger ORION 5/8 Meter Transmitter Replace 2,500,000 2,500,000 53 Cayenta and City Works 240,000 180,000 60,000 54 Mandated by Other Agencies 4,110,000 600,000 810,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 55 Other:56 Mountain View Consolidation 1,500,000 300,000 1,200,000 55 Annual Pipe Replacement 45,000,000 3,500,000 3,500,000 3,500,000 4,000,000 4,000,000 4,000,000 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000
Total Capital Projects 173,390,873 19,223,000 20,107,873 20,760,000 22,480,000 14,645,000 13,175,000 11,650,000 19,350,000 10,650,000 14,750,000 6,600,000
Total from November 2016 Financial Plan 174,256,000 19,878,000 23,540,000 15,190,000 11,682,000 10,408,000 17,326,000 17,434,000 10,593,000 25,744,000 18,961,000 3,500,000 Increase/(Decrease) from November 2016 (8,168,127) (655,000) (3,432,127) 5,570,000 10,798,000 4,237,000 (4,151,000) (5,784,000) 8,757,000 (15,094,000) (4,211,000) 3,100,000
6‐Year Average Annual CIP 2017‐2022 11‐Year Average Annual CIP 2017‐2027Per November 2016 Financial Plan 16,337,333 Per November 2016 Financial Plan 15,841,455 Revised August 2017 18,398,479 Revised August 2017 15,762,807 Increase/(Decrease) from November 2016 2,061,146 Increase/(Decrease) from November 2016 (78,648)
Agenda Item #7
Skagit PUD No. 1Financial PlanScenarios Summary
Baseline Scenario: 8.5%/yr Tapering to 2%/yr by 2026 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total
2018-2027 Difference in Debt
Rate Increases 8.50% 8.50% 8.50% 8.00% 5.00% 5.00% 4.50% 4.00% 4.00% 2.00% 2.00% 64.83%Avg Monthly Bill 47.81$ 51.70$ 55.93$ 60.24$ 63.15$ 66.21$ 69.10$ 71.78$ 74.57$ 76.03$ 77.51$ Increase in Monthly Bill 3.89$ 4.22$ 4.31$ 2.91$ 3.06$ 2.89$ 2.68$ 2.79$ 1.45$ 1.48$
Debt Funding 4,200,000$ 10,192,500$ 13,500,000$ 15,000,000$ 7,000,000$ 5,500,000$ -$ 10,700,000$ -$ 5,500,000$ -$ 67,392,500$
Scenario 1 - Baseline with 15% Increase in 2018 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total
2018-2027 Difference in Debt
Rate Increases 8.50% 15.00% 8.50% 8.00% 5.00% 5.00% 4.50% 4.00% 4.00% 2.00% 2.00% 74.71%Avg Monthly Bill 47.81$ 54.68$ 59.16$ 63.73$ 66.81$ 70.06$ 73.12$ 75.96$ 78.92$ 80.46$ 82.03$ Increase in Monthly Bill 6.87$ 4.48$ 4.57$ 3.09$ 3.24$ 3.06$ 2.84$ 2.96$ 1.54$ 1.57$
Debt Funding 4,200,000$ 10,192,500$ 10,500,000$ 13,200,000$ 6,300,000$ -$ -$ 5,900,000$ -$ -$ -$ 46,092,500$ (21,300,000)$
Scenario 2 - Baseline with 10% Increases in 2018 and 2019 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total
2018-2027 Difference in Debt
Rate Increases 8.50% 10.00% 10.00% 8.00% 5.00% 5.00% 4.50% 4.00% 4.00% 2.00% 2.00% 69.42%Avg Monthly Bill 47.81$ 52.39$ 57.43$ 61.86$ 64.85$ 68.00$ 70.97$ 73.73$ 76.59$ 78.09$ 79.61$ Increase in Monthly Bill 4.58$ 5.04$ 4.43$ 2.99$ 3.14$ 2.97$ 2.76$ 2.87$ 1.49$ 1.52$
Debt Funding 4,200,000$ 10,192,500$ 12,300,000$ 14,200,000$ 5,900,000$ 3,100,000$ -$ 10,100,000$ -$ - - 55,792,500$ (11,600,000)$
Scenario 3 - Increases of 15%, 10%, 8%, 8%, 8%, then Baseline 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total
2018-2027 Difference in Debt
Rate Increases 8.50% 15.00% 10.00% 8.00% 8.00% 8.00% 4.50% 4.00% 4.00% 2.00% 2.00% 87.39%Avg Monthly Bill 47.81$ 54.68$ 59.95$ 64.58$ 69.59$ 75.00$ 78.28$ 81.33$ 84.50$ 86.15$ 87.84$ Increase in Monthly Bill 6.87$ 5.27$ 4.64$ 5.01$ 5.41$ 3.28$ 3.05$ 3.17$ 1.65$ 1.68$
Debt Funding 4,200,000$ 10,192,500$ 10,100,000$ 12,800,000$ 3,000,000$ -$ -$ -$ -$ -$ -$ 36,092,500$ (31,300,000)$
Scenario 4 - Increases of 12%, 9%, 8%, 8%, 8%, then Baseline 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total
2018-2027 Difference in Debt
Rate Increases 8.50% 12.00% 9.00% 8.00% 8.00% 8.00% 4.50% 4.00% 4.00% 2.00% 2.00% 80.84%Avg Monthly Bill 47.81$ 53.30$ 57.92$ 62.40$ 67.23$ 72.44$ 75.61$ 78.56$ 81.62$ 83.21$ 84.84$ Increase in Monthly Bill 5.50$ 4.62$ 4.47$ 4.83$ 5.22$ 3.17$ 2.94$ 3.06$ 1.59$ 1.62$
Debt Funding 4,200,000$ 10,192,500$ 11,650,000$ 13,900,000$ 5,400,000$ -$ -$ 3,500,000$ -$ -$ -$ 44,642,500$ (22,750,000)$
Scenario 5 - Increases of 9% for 5 Years, then Baseline Increases 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Cumulative/Total
2018-2027 Difference in Debt
Rate Increases 8.50% 9.00% 9.00% 9.00% 9.00% 9.00% 4.50% 4.00% 4.00% 2.00% 2.00% 80.93%Avg Monthly Bill 47.81$ 51.93$ 56.42$ 61.32$ 66.66$ 72.48$ 75.65$ 78.60$ 81.66$ 83.25$ 84.88$ Increase in Monthly Bill 4.12$ 4.49$ 4.90$ 5.34$ 5.82$ 3.17$ 2.95$ 3.06$ 1.59$ 1.63$
Debt Funding 4,200,000$ 10,192,500$ 13,000,000$ 14,500,000$ 6,150,000$ -$ -$ 4,100,000$ -$ -$ -$ 47,942,500$ (19,450,000)$
PREPARED BY FCS GROUP, INC.(425) 867-1802
ScenariosGS TEST Skagit Financial Plan Scenarios 9-11-2017.xlsx Page 1