SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT BOARD OF COMMISSIONERS REGULAR MEETING Everett Headquarters Building, 2320 California Street

October 7, 2019 **Monday**

CONVENE REGULAR MEETING – 9:00 a.m. - Commission Meeting Room 1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION A. Updates 1. Media 2. Community Engagement 3. Other B. Executive Director of Public Power Council (PPC) Scott Simms C. Income Qualified Assistance Program RECONVENE REGULAR MEETING - 1:30 p.m. - Commission Meeting Room 2. RECOGNITION/DECLARATIONS A. Employee of the Month for October – Carol Jodock B. General Manager’s Life Saving Award 3. COMMENTS FROM THE PUBLIC 4. CONSENT AGENDA A. Approval of Minutes for the Regular Meeting of September 24, 2019 B. Bid Awards, Professional Services Contracts and Amendments C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers D. Consideration of a Resolution Approving Amendment No. 14 to the Collective Bargaining Agreement Between Public Utility District No. 1 of Snohomish County and the International Brotherhood of Electrical Workers, Local No. 77, for the Period of April 1, 2017, Through March 31, 2020 5. PUBLIC HEARING A. Open the 2020 Budget Hearing 6. CEO/GENERAL MANAGER REPORT 7. COMMISSION BUSINESS A. Commission Reports 8. GOVERNANCE PLANNING A. Governance Planning Calendar ADJOURNMENT

October 9, 2019 Celebration/Dedication in Honor of a District Employee (Youngs Creek Hydroelectric Project). A site visit will follow.

The next scheduled regular meeting is October 22, 2019

Agendas can be found in their entirety on the Snohomish County Public Utility District No. 1 web page at www.snopud.com. The public is invited to attend. Parking and meeting rooms are accessible for persons with disabilities. Contact the Commission Office at 425.783.8611 for special accommodations or additional information.

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BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 1

TITLE:

CEO/General Manager’s Briefing and Study Session

SUBMITTED FOR: Briefing and Study Session

CEO/General Manager John Haarlow 8473 Department Contact Extension Date of Previous Briefing: N/A Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

Executive Limitations, EL-9, Communications and Support to the Board – the CEO/General Manager shall...marshal for the board as many...points of view, issues and options as needed for fully informed Board choices.

List Attachments: CEO/General Manager’s Briefing and Study Session attachments

2/218 Energy Northwest

Scott Simms, Executive Director Michael Deen, Policy Director Irene Scruggs, General Counsel Lauren Tenney Denison, Senior Policy Analyst October 7, 2019

3/218 Introductions

. Our teams: The people of Snohomish PUD and the people of PPC

2 4/218 Public Power Council Overview

. Since 1966, PPC has helped consumer-owned NW utilities have a unified voice on key energy issues . We focus on the FCRPS and the Bonneville Power Administration at the regional and federal levels . PPC represents more than 100 public power entities across 5 states – very small to very large . Affordability and reliability are at our core, and it involves us in both power and transmission . From BPA rates and contracts to power supplies to costs for fish and other investments – we’re on it

3 5/218 Energy Northwest Governance

. Public power joint operating agency . 27 Members, comprising PUDs and municipalities that provide electric service in Washington State . Three primary governance bodies: • Board of Directors: 1 Director for each of the 27 Energy Northwest members • Executive Board: 11 representatives drawn from the Board of Directors, the public sector, and gubernatorial appointees • Participant Review Board: 9 members representing the 92 utilities participating in Columbia Generating Station

4 6/218 Governance Bodies: Roles and Responsibilities

. Board of Directors • General authority to authorize new projects and approve new construction • Authority to terminate existing projects . Executive Board • Responsible for selecting and receiving reports from the CEO • Oversees general Energy Northwest operations . Participants Review Board • Specific to Columbia Generation Station governance; represents the 92 participating utilities • Reviews annual budgets, fuel management, refinancing efforts, and any purchases over $500,000

5 7/218 Energy Northwest Background

. 4 generation projects of approximately 1,300 total MW capacity: • Packwood Hydro – 27.5 MW • Columbia Generating Station – 1,206 MW • Nine Canyon Wind – 95.9 MW • White Bluffs Solar – 38.7 kW . Business lines to provide O&M and other services to utilities . Potential ability to develop new resources such as SMR, demand response, or others

6 8/218 The History of Energy Northwest

7 9/218 A Thumbnail Sketch of History

. ENW originally formed in 1957 as the Washington Public Power Supply System (WPPSS) • Intent was to allow public utilities to cooperatively build and operate generating projects . Snohomish PUD was an initial member, deciding to join on July 27, 1956 . Snohomish PUD withdrew from membership on Nov. 8, 1957 • Decision made to pursue the PUD’s own power program . Snohomish PUD rejoined as a member on Aug. 10, 1960

8 10/218 A Thumbnail Sketch of History (cont.)

. Booming economy of 1960s led to concerns of lack of supply . First joint project was the Packwood Hydro facility near Mt. Rainier, completed in 1962 . “Hydro-Thermal Power Program” was conceived to meet projected needs • Five nuclear plants designated WNP-1, 2 & 3 part of original 1968 plan • WNP-4 & 5 subsequently added in 1970s . Construction funded through “net billing agreements” • Accounting arrangement by which revenue for bond repayment flowed from BPA through participant utilities to bondholders (more detail later)

9 11/218 A Thumbnail Sketch of History (cont.)

. Combination of poor planning and poor execution • Forecasts based on trends rather than end-use or econometric models • Construction of plants fell years behind schedule and ballooned in cost . 60% BPA rate increases in both 1981 and 1982 . Decision made to halt construction on all plants except WNP-2 (now CGS) . July 1983, WPPSS defaulted on $2.25 billion in bond obligations (approximately $5.8 billion in 2019 dollars) . Protracted litigation ensues . Further reading: • Public Power Chronicle (PPC) • Nuclear Implosions, Daniel Pope

10 12/218 Net Billing Agreements and Snohomish’s Share

11 13/218 Net Billing Agreements

. Tripartite contractual relationship between: 1. Energy Northwest 2. 92 consumer-owned utilities (“Participants”) 3. BPA . Participants in each “Net Billed Project” (Energy Northwest Projects 1, 3, and Columbia) have contracted to purchase the capability of that Net Billed Project and have agreed to provide Energy Northwest with the funds necessary to meet the costs of that Net Billed Project. . Simultaneously, the Agreements also created an assignment of the Project capability from the Participants to BPA and created an obligation of BPA to pay the Participants for their respective shares of the costs of the Net Billed Projects.

12 14/218 More Specifically…

• Section 5 - Participants shall pay Energy Northwest “whether or not the Project is completed, operable or operating and notwithstanding the suspension, interruption, interference, reduction or curtailment of the Project output, and such payments shall not be subject to any reduction whether by offset or otherwise, and shall not be conditioned upon the performance or nonperformance by [Energy Northwest] or [BPA] or any other Participant” • Section 7 – Participant is obligated to pay its share of CGS costs – even when there is no agreement of any kind for power or transmission between the Participant and BPA

13 15/218 The Structure

Participant agreed BPA agreed to BPA later agreed Energy Northwest to pay Energy reimburse to pay sold a Participant’s share Participant Northwest in cash Participant in the proportionate for the Total Costs form of a billing of annual CGS Assigned its Share Share of Project of the Projects credit against BPA’s operating and to BPA Capability to a proportionate to monthly billing debt expenses Participant the Participant’s under Participant’s directly to Energy Share BPA contracts Northwest

14 16/218 The Term

. A Participant’s obligations continue so long as: • Columbia Generating Station (CGS) is operable; OR • CGS bonds or other obligations or liabilities are outstanding . The current operating license is valid until December 2043; assuming the current decommissioning plan is followed, site restoration (that is, the termination of all “liabilities”) is anticipated to be complete in 2105 . Currently, outstanding bonds mature no later than July 1, 2044.

15 17/218 Whose obligation is this, anyway?

. “Thus, Bonneville is ultimately obligated to meet such costs.” - Energy Northwest’s official Bond Statement dated May 9, 2018. - Letters to underwriting counsel by the BPA General Counsel and Administrator confirm this representation. . BPA’s obligation to make payments to the Participants is of first priority and “would be paid from the Fund on a parity with other Bonneville operating expenses and prior to any payments by Bonneville to the Treasury for repayment of”: 1.the Federal investment in the FCRPS, 2.Corps of Engineers and Bureau of Reclamation costs, and 3.Bonds issued by BPA. - BPA Administrator’s letter of November 12, 1974 . Assessment of the “real” risk to Participants?

16 18/218 Snohomish Net Billing Shares

Project Outstanding Net Billed Snohomish Net Billing Shares Amounts % $ (as of June 13, 2019)

Project 1 $795,580,000 19.584% $155,806,387 Columbia Generating $3,333,500,000 15.363% $512,125,605 Station

Project 3 $914,055,000 19.334% $176,725,394 Total $5,043,135,000 $844,655,386

17 19/218 The Role of Columbia Generating Station in the Northwest

18 20/218 Columbia Generating Station Role in BPA and Regional Power Supply . ~1,200 MW Capacity . Provides baseload generation which allows greater flexibility for hydro system . Some limited ability to run below maximum output to mitigate oversupply events . Contributes significant system stability for transmission grid . 14% of BPA firm energy under critical water conditions (4% for region) . 10% of BPA of sustained peaking capability (3% for region)

19 21/218 CGS Economics

20 22/218 Criticism of CGS Economic Viability

. Most recently sponsored by Physicians for Social Responsibility . At least three iterations of analysis produced by McCullough Research . A lot of material and pages written, but underlying claims are simple: • Assertion that CGS output can be replaced either with new intermittent renewables or market purchases • Multiplies CGS output by historical market prices or levelized cost of energy of renewable resources to “prove” massive savings . Extensively refuted by PPC and other experts • Does not consider capacity, market depth, dispatchability/balancing costs • Facile and meaningless for policy makers • According to NWPCC and E3 studies, loss of any dispatchable, carbon-free generation will result in higher costs and emissions for the region long-term

21 23/218 Resource Adequacy and Reliability

. Ability of the electric system to serve load through time across a wide range of weather and system operating conditions • For NW: Enough FIRM CAPACITY to meet load in low hydro, low wind, low solar conditions . Supply is already tight . E3 Study sponsored by investor owned and public utilities (Public Generating Pool) • Potential need for 8,000 MW of new firm capacity by 2030 . Northwest Power Planning and Conservation Council • At least 750 MW of new gas needed by 2024 (smaller footprint)

22 24/218 CGS Decommissioning

. CGS Decommissioning Trust Fund • BPA currently has ~$350 million in the CGS Decommissioning Trust Fund, and collects $4 million/yr. on CGS decommissioning costs in rates, increasing at 4% per year. . Decommissioning Cost Analysis for CGS • The study estimated the cost to decommission the plant, restore the site to its previous condition, store the spent fuel, and decommission the spent fuel storage site by FY2044 at $1.43 billion in 2018$, $3.57 billion in nominal $.

23 25/218 The Relationship Between Energy Northwest Debt and BPA Rates

24 26/218 Energy Northwest Refinancing History

. Energy Northwest bonds are able to be financed at lower interest rates than BPA can achieve through the Treasury . Bonds related to WNP-1 and WNP-3 have been used as a financing asset for BPA multiple times . BPA has been able to preserve its own borrowing authority, achieve interest expense savings, and replace high-cost federal debt with low- cost Energy Northwest debt • Creates benefits for BPA ratepayers through lower capital costs and lower rates • Extends the payoff date for WNP-1 and WNP-3 debt

25 27/218 Historic and Current Refinancing Programs

. “Debt Optimization Program” of 2001-2010 • Preserve BPA borrowing authority, also yielded approximately $500 million interest expense savings . “Regional Cooperation Debt” program of 2014-2020 • Repay high interest federal appropriations • $2.4 billion expected interest savings . “Regional Cooperation Debt” continuation, 2021-2030 • Refinance up to $3.5 billion in WNP-1 and WNP-3 bonds to preserve BPA federal borrowing authority

26 28/218 BPA Access to Capital Policy Goals

. Needs are met on a rolling 10-year basis . Preserve $1.5 billion in available borrowing authority . Look beyond traditional financing sources to consider an “all of the above” strategy . Evaluate sources of capital in the context of cost, certainty, and impact on other financial health goals

27 29/218 Access to Capital Challenge

. IPR Initial Proposal Capital Spend . Assumes 25% Lease Purchase for Transmission . Borrowing Authority goes below $1.5b around FY 2021

28 30/218 Regional Cooperation Debt

. Regional Cooperation Debt (RCD) refers to existing debt associated with Columbia Generating Station and nuclear projects 1 and 3. All RCD is funded by BPA through the Net Billing Agreements. . In 2014, BPA and Energy Northwest (EN) refinanced non-federal debt at low, tax-exempt interest rates and used the funds that became available to pay, dollar-for-dollar, high-interest rate federal obligations. . Benefit of RCD • Lower interest expense that restores BPA’s U.S. Treasury Borrowing Authority • RCD actions enabled BPA to prepay an additional $275 million in high-interest Federal Appropriations Repayment Obligations in FY18, $687 million in FY17, and $959 million in FY16, over the amounts otherwise scheduled for repayment in BPA’s rates

29 31/218 30 32/218 31 33/218 Current Regional Cooperation Debt Program

. Up to $3.5 billion over 10 years . Benefits: • Prevent need for revenue financing • Potential for modest interest savings . Each year of financing transactions must be approved by ENW Exec Board . Conditions for consideration: • Transparent reporting by BPA • Dollar for dollar repayment of federal debt • 2025 mid-point “check in”

32 34/218 Energy Northwest Questions? Contact Information: Scott Simms – [email protected] – 503-595-9775 Michael Deen – [email protected] – 503-595-9774 Irene Scruggs – [email protected] – 503-595-9779 Lauren Tenney Denison – [email protected] – 503-595-9777

35/218 Income Qualified Assistance Program

October 7, 2019

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SNOHOMISH COUNTY PUD 2 Agenda

• LIST team and partners • Economic/Political Landscape • Program Goals • Recommendations and Phasing Strategy – Phase 1-Enhancement – Phase 2-Growth

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SNOHOMISH COUNTY PUD LIST Team and Partners 3 Team PUD Community Stakeholders Kym Houston Jamie Contreras Megan Kubat Joni Wilburn Gen Kysar Bri Zaretzke Wendy Parris Brenda White Laura McCrae Doug O’Donnell Cathy Anderson Karla Wepking Shari Akramoff Sirena Fothergill Julia Anderson Julie Thompson Suzy Oversvee

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SNOHOMISH COUNTY PUD 4 Economic Landscape

• Community Needs Assessment (CNA) Data: – Poverty Rates: Federal Poverty Guidelines (FPG) provide insights but are a considerably low benchmark in Snohomish County • 31,500 households (8.8%) live below 100% of FPG, annual income of $12,490 • 73,500 households (21%) live below 200% of FPG, annual income of $24,980 • Current discount assistance to 125% of FPG—$15, 613 annual income (as of 8/31: )

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SNOHOMISH COUNTY PUD 5 Economic Landscape

• Community Needs Assessment (CNA) Data – Barriers to Service • With regard to importance of services— Utility assistance ranks with necessities like housing • With regard to difficulty of assistance with services—‘Help with‘ utilities is among most challenging to acquire – Utilities are a necessity for customers, and accessing assistance is not easy.

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SNOHOMISH COUNTY PUD 6 Economic Landscape Low-Income service importance and availability

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SNOHOMISH COUNTY PUD Economic Landscape 7 Low-Income service importance and availability among households with young children

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SNOHOMISH COUNTY PUD 8 Economic Landscape

• Community Needs Assessment (CNA) Data

– There is a perception gap

– There is an accessibility gap

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SNOHOMISH COUNTY PUD 9 Political Landscape

• SB 5116 (Clean Energy Transformation Act-CETA) – Section 12(1-2) “It is the intent of the legislature to demonstrate progress toward making energy assistance funds available to low-income households consistent with the policies identified…utility must make programs and funding available for energy assistance to low-income households by July 31, 2021.”

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SNOHOMISH COUNTY PUD 10 Political Landscape

• SB 5116 (Clean Energy Transformation Act-CETA) – Section 12(4, iii) “A cumulative assessment of previous funding levels for energy assistance compared to the funding levels needed to meet: (A) Sixty percent of the current energy assistance need, or increasing energy assistance by fifteen percent over the amount provided in 2018, whichever is greater, by 2030; and (B) ninety percent of the current energy assistance need by 2050.”

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SNOHOMISH COUNTY PUD Program Goals

Helping Income Qualified customers avoid disconnection, maintain comfort in their homes, and increasing the effectiveness and value of District initiatives for this community segment, and for all ratepayers.

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SNOHOMISH COUNTY PUD Work In Progress: (from May 2019)

• Expand accessibility

• Couple Energy Efficiency support with the discount

• Match our offerings with the economics of the county

• Establish a holistic process for working with customers in the income limited and income constrained space

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SNOHOMISH COUNTY PUD 13 Phase 1: Fall 2019-Enrollment, Outreach, Education

• Enhanced Enrollment – DSHS, WA State Housing Finance Commission – In progress: EVHA, HASCO, Housing Hope – No more redundant applications or paperwork – More CSR capacity to engage strategically with the community

• Enhanced Outreach: Coordinated efforts in the community meeting customers/partners where they are/serve

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SNOHOMISH COUNTY PUD 14 Phase 1: Fall 2019-Enrollment, Outreach, Education

• Enhanced Education: All critical employees to receive Poverty 101 training, and future opportunities to increase awareness and empathy • Enhanced Education: Coupling Energy Efficiency measures and education with every new applicant – Energy kits delivered to each participant – Invitations to participate quarterly and receive enhanced education and benefits, and efficiency program pilots opt-in

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SNOHOMISH COUNTY PUD 15 Phase 1: Fall 2019-Enrollment, Outreach, Education Arrearage Management Pilot • Customers must self-certify income between 125% and 200% FPG, and have balance of $200 or more • Customer validates income with St. Vincent DePaul and agrees to 12 month payment plan at or near actual consumption • Customer receives initial pledge (25-33%) and after 12 months of successful payments receive remaining pledge up to $1000 total

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SNOHOMISH COUNTY PUD 16 Phase 1: Fall 2019-Enrollment, Outreach, Education Community Solar Income-Qualified Pilot • 10% of AMG Community Solar, partially funded with grant from Bonneville Environmental Foundation • Through Request for Applications process, select two local agencies to receive units for a two year period and use credits to benefit income- qualified clients • Applications will be evaluated on the methods by which the agencies pass benefits onto their income-qualified clients, with priority given to organizations that combine benefits and education for clients • Plan to issue RFA in October and make final selection by end of year

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SNOHOMISH COUNTY PUD Phase 2: Spring 2020-Thresholds, Reporting, Pilots 17 • Threshold Recommendations – Collapse 2 Programs (LID and SD) into one unified program— No longer age dependent – Increase thresholds to reach up to 200% Federal Poverty Guidelines (FPG) – Alter three tiers into two (Sunset 60% discount end of 2020) • 0-100% FPG receive 50% discount • 101-200% FPG receive 25% discount • Estimated future Impact: Increase from $6 Million to $12 Million, very similar benefits annually and monthly

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SNOHOMISH COUNTY PUD Phase 2: Spring 2020-Thresholds, Reporting, Pilots 18 • Threshold Recommendations: Value Propositions – Avoided costs (annualized) • $280K-$560K in customer contact via front line and call center • $18K in field collections • $60K other process efficiencies • Write off/Bad debt avoided – Energy Efficiency Values added • Avoided discount billing costs, kilowatt hour savings, capacity savings at peak, engaging hard to reach properties

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SNOHOMISH COUNTY PUD 19 Value Example: Fall 2018 Pilot

• 28 Income Qualified customer homes received on-site assessment, free energy saving items (LEDs, aerators, power strips), and education • 19 of these homes also received a no-cost Ductless Heat Pump install • Value to participants Average savings per home 3100 kWh $320/ year • Value to District Present Value Utility benefits $103,600 (Energy, Capacity, Non-energy benefits, Transmission & Distribution) Present Value Discount Billing cost avoided $39,100 Present Value Costs $117,100) Net Present Value $25,600 Benefit/ Cost Ratio 1.2

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SNOHOMISH COUNTY PUD Phase 2: Spring 2020-Thresholds, Reporting, Pilots 20 • Threshold Recommendations

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SNOHOMISH COUNTY PUD Phase 2: Spring 2020-Thresholds, Reporting, Pilots 21 Considerations – Currently 3600 customers in the 60% bracket • $37/mo (60%) v. $31/mo (50%) • Grandfather, firm end date of 12/31/20 • Prioritize this segment with respect to energy burden reduction via conservation prior to 12/31/20

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SNOHOMISH COUNTY PUD Phase 2: Spring 2020-Thresholds, Reporting, Pilots 22 • Reporting: Aggregated, Informed, Connected

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SNOHOMISH COUNTY PUD Phase 2: Spring 2020-Thresholds, Reporting, Pilots 23

• Housing Energy Efficiency Pilot – Partners: YWCA, Habitat for Humanity, EVHA – Goals: Lower Capacity needs, enrich housing stock, limit redundant applications, increase comfort in homes, reach targeted customer needs • Non Profit Discount – Master metered properties, multi-family, income qualified— receive discount to reinvest for customers they serve

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SNOHOMISH COUNTY PUD 24 Our Mission

We deliver affordable power and water to our customer-owners in a safe, environmentally sustainable and reliable manner while successfully navigating complex change in our industry. We accomplish this by empowering our teams to provide quality service to our community, prudently managing costs while investing for the future, and striving to improve every day.

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SNOHOMISH COUNTY PUD 25 Projected Outcomes from Phase 1

• Enhancements will drive total participation well above SB 5116 requirements—60% all eligible or 15% increase over 2018

• We will increase community engagement and presence through strategic outreach—less calls, more partnership

• We will learn the viability of a multi-faceted approach beyond the rate discount

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SNOHOMISH COUNTY PUD 26 Projected Outcomes of Phase 2

• Match offerings to greater needs in the county

• Grow customer engagement: for every $100 a ratepayer spends, $2 will support income constrained neighbors

• Maintain our position as a leader in the region in regards to innovation and customer experience

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SNOHOMISH COUNTY PUD SERVICE 27

Leverage technology and Provide friendly, positive Empower employees through CONTINUAL IMPROVEMENT Perform strategic financial planning engagement/accountability process improvements customer service Manage and quantify risk at all levels Work smart! Prioritize, plan Deliver outstanding value Execute accurate budgeting and Cultivate a culture of caring, mutual and execute relative to cost project prioritization

LEADERSHIP respect and trust Foster customer loyalty Practice continual rate management Offer rate structures and Foster community engagement Recover costs fully and fairly Be easy to do business with

programs that address (build bonds) Achieve accurate and timely SAFETY changing customer and utility Earn customer trust Provide employees opportunities reporting needs Enhance options for all customers to develop skills Make data-informed decisions Be flexible to accommodate a Enhance and evolve outage Support employees through change Practice cost-control asset changing environment communication and collaboration Hire strategically - the right person for the right management Strive to improve reliability job Promote sustainability and Meet compliance and reporting Understand how rates impact Recognize employee performance environmental stewardship and achievements obligations customer experience Commit to diversity and inclusion Be open to innovation Seek customer feedback and Break silos and foster Strive to improve reliability expectations communication Optimize delivery systems and assets Meet customer commitments Communicate proactively Anticipate customer of the future/dream big Serve customers through multiple channels

COMMUNITY62/218 SNOHOMISH COUNTY PUD Questions?

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SNOHOMISH COUNTY PUD

BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 2A

TITLE

Employee of the Month for October - Carol Jodock

SUBMITTED FOR: Recognition/Declarations

Employee Resources Tanya Manchester 8210 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

The October 2019 Employee of the Month is Carol Jodock, Energy Services Specialist 4.

Carol began her career at the PUD as a Summer Student in 2002 and 2003.

On October 13, 2008, Carol was hired as a Full-Time employee, as an Office Support Specialist 3 in the Customer Service Department.

On January 16, 2015, Carol became an Energy Services Specialist 1.

On January 16, 2017, Carol progressed to the Energy Services Specialist 4, which is the title she continues to hold today.

Carol will be presented by Jeff Feinberg, Customer Service Manager.

List Attachments: Employee Profile

64/218 October EOM Carol Jodock Energy Services Specialist

It will be no surprise to those who work with Carol Jodock that this isn’t her first appearance as Employee of the Month. She was recognized in July 2013 while working as an Office Support Specialist in Customer Accounting. At the time, she received kudos for always remembering birthdays and stepping up to help others.

Carol’s thoughtful nature hasn’t changed a bit, though she has changed roles at the District. Now she’s proven herself invaluable to the Energy Services team.

One example involved the actual dark side of the District’s many successful decades of helping customers with energy-efficiency measures, namely the basement’s windowless file room. For every customer hooked up with improved windows, insulation, a better thermostat, etc., there was a folder stuffed with paperwork stored with thousands of others in aisles tall enough to dim the room’s light.

Enter Carol, who started cleaning out files in October 2017. Every folder had to be reviewed, and, if deemed eligible for destruction, its contents had to be shredded. Carol was known to fill seven shredding bins a week. At the end of the project, the District shred more than 120,000 outdated files.

“Carol is always cheerful and digs into a task with her whole heart,” said Mitzi Bulman (prior District employee who managed the records retention program at that time). She praised Carol’s efforts as a big savings for the District, as there was no need for a consultant or shredding service.

From a dark file room to a project fueled by the sun, Carol has also stepped up mightily for the Community Solar project.

The project team sought input from utilities with successful Community Solar projects, worked with solar experts and involved internal stakeholders, but there were still hoops to jump through as the program unfolded. Especially as interested customers turned from a handful into a crowd.

“We’ve relied on a lot of manual tracking and reporting to enable us to stay on top of customer payments and send out customer notifications,” said Suzy Oversvee, Community Solar program manager. “Carol has been instrumental. On many occasions, I’ve gone to her thinking we need to flag and follow up with certain customers, or start tracking additional data points, only to find she is already doing or has done it. I almost always walk away from her desk with a great sense of relief and gratitude, which cannot be overstated.”

65/218 Senior Business Analyst Angela Edwards also appreciated Carol’s efforts. “Her expertise and attention to detail allowed us to move forward with confidence. Each month she is responsible for validating that Community Solar credits are correct before a single one is posted. The program is in very good hands.”

Although Carol is a head-down, hard worker, her upbeat personality and can-do attitude make her easily approachable.

“She is usually quiet and just does her job but is always willing to help others,” said Energy Efficiency Program Consultant Jay Snyder. Assistant Energy Efficiency Program Manager Ron Eddy added, “Carol either always knows the answer or knows the person who does.”

And what’s approachability and knowledge without availability? Well, that’s another area in which Carol shines. According to Energy Services Specialist Andrea Duffy, “Carol is very dependable. She arrives at work everyday despite any injuries she may have received playing volleyball or softball the night before.”

When Carol’s not working or playing volleyball or softball, she enjoys hiking, baking, traveling or hanging out with friends and family. She volunteers at her church and with a local non-profit, Hand-in-Hand, which helps foster local children.

And in a final example of Carol’s exemplary team spirit, during her college years, she was a marketing intern at the Everett Herald. Her duties included going to fairs and festivals as the newspaper’s mascot Scoop the Dog!

Carol, here’s the real scoop: the District is lucky to have you. Thank you for being a self-starting co-worker who can always be counted on to deliver her best. Your positivity and can-do attitude truly shine, even from the basement file room.

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BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 2B

TITLE

General Manager’s Life Saving Award

SUBMITTED FOR: Recognition/Declarations

Safety Rob McManis 5557 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

Reno Sansaver and Jessie Weewie came to the aid of a co-worker experiencing a life-threatening emergency and Casey Donovan, Jose Hernandez and Nick Miller performed CPR. The employee was conscious when transported to the hospital thanks to the quick actions of her co-workers.

List Attachments: None

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COMMENTS FROM THE PUBLIC

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BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 4A

TITLE

Approval of the Minutes for the Regular Meeting of September 24, 2019

SUBMITTED FOR: Consent Agenda

Commission Melissa Collins 8616 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

Governance Process, Board Job Description: GP-3(4) … a non-delegable, statutorily assigned Board duty as defined under RCW 54.12.090 - minutes.

List Attachments: Preliminary Minutes

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PRELIMINARY SNOHOMISH COUNTY PUBLIC UTILITY DISTRICT

Regular Meeting September 24, 2019

The Regular Meeting was convened by President Sidney Logan at 9:00 a.m. in the Commission Meeting Room. Those attending were Tanya Olson, Vice-President; Rebecca Wolfe, Secretary; Acting CEO/General Manager Tom DeBoer; General Counsel Anne Spangler; Assistant General Managers Pam Baley, Guy Payne, and Brant Wood; Chief Information Officer Dean Galvez; other District staff; members of the public; Commission & Executive Services Director Melissa Collins; Executive Assistant Janne Avatare; and Deputy Clerks of the Board Allison Morrison and Lela Wall.

* Items Taken Out of Order **Non-Agenda Items

1. CEO/GENERAL MANAGER BRIEFING AND STUDY SESSION

A. Updates

1. Media. Communications & Marketing Director Julee Cunningham reported on District related news and articles.

2. Community Engagement. Senior Customer & Energy Services Program Manager Suzy Oversvee provided slides at places, by reference made a part of the packet, and spoke about the District’s Community Solar Celebration that was held at the Arlington Microgrid site.

3. Other. There were no other reports.

B. PUD’s Hydropower Resources

At the Board’s request, Senior Environmental Coordinator Dawn Presler and Manager Natural Resources Keith Binkley provided the environmental results for the five District-owned hydropower facilities.

The licensing requirements for the Jackson Hydroelectric Project, Youngs Creek, Hancock Creek, Calligan Creek, and Woods Creek were discussed.

The meeting recessed at 9:55 a.m. and reconvened at 10:05 a.m.

C. Clean Energy Technology Center (CETC) & Modular Data Center (MDC) Site

An update on the Overall Scope, Timeline, and Project Scope of Work for the Clean Energy Technology Center (CETC) and Modular Data Center (MDC) site was presented by Principal Engineer Ben Davis.

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Regular Meeting 2 September 24, 2019

Next steps included a Recommendation to Award the Public Works Contract (PWC) at the next Commission meeting, Anticipated Notice to Proceed in October 2019, and Substantial Completion in May 2020. The MDC scheduled arrival at North County was spring of 2020, with installation set for the summer of 2020. The Microgrid Start up and Commissioning was scheduled for November to December 2020, with testing and reports to be completed in 2021.

General Counsel Anne Spangler responded to questions regarding whether donations could be accepted to fund a solar array for the CETC roof.

D. Draft Environmental Policy

General Counsel Anne Spangler and Senior Manager Environmental Affairs Christoph Enderlein provided an information only presentation on an internal Draft Environmental Policy to be finalized by management and implemented for District employees.

A discussion ensued about the Board’s Environmental Policy that would be addressed at an upcoming Board workshop.

The meeting recessed at 11:01 a.m.

RECONVENE REGULAR MEETING

The Regular Meeting was reconvened by President Sidney Logan at 1:30 p.m. in the Commission Meeting Room. Those attending were Tanya Olson, Vice President; Rebecca Wolfe, Secretary; Acting CEO/General Manager Tom DeBoer; General Counsel Anne Spangler; Assistant General Managers Pam Baley, Guy Payne, and Brant Wood; Chief Information Officer Dean Galvez; other District staff; members of the public; Commission & Executive Services Director Melissa Collins; Executive Assistant Janne Avatare; and Deputy Clerks of the Board Allison Morrison and Lela Wall.

* Items Taken Out of Order **Non-Agenda Items

2. RECOGNITION/DECLARATIONS

A. Consideration of a Resolution Recognizing the Observance of the Week of October 7, 2019, Through October 11, 2019, as Customer Service Appreciation Week

A motion unanimously passed approving Resolution No. 5921 recognizing the observance of the week of October 7, 2019, through October 11, 2019, as Customer Service Appreciation Week.

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Regular Meeting 3 September 24, 2019

3. COMMENTS FROM THE PUBLIC

Steven Keeler, Edmonds, provided a handout at places, and made a part of the packet, which referenced climate data collected by the National Oceanic and Atmospheric Administration’s (NOAA’s) Climate Reference Network.

4. CONSENT AGENDA

A. Approval of Minutes for the Regular Meeting of September 10, 2019

B. Bid Awards, Professional Services Contracts and Amendments

Public Works Contract Award Recommendations Over $25,000: None Formal Bid Award Recommendations $60,000 and Over: Request for Quotation No. Doc1881152786 with Sherman + Reilly, Inc. Professional Services Contract Award Recommendations $200,000 and Over: None Miscellaneous Contract Award Recommendations $200,000 and Over: None Cooperative Purchase Recommendations: Contracts: PO#4500052650 with Owen Equipment PO#4500052651 with Altec Industries, Inc. Amendments: None Sole Source Purchase Recommendations: None Emergency Declarations, Purchases and Public Works Contracts: None Purchases Involving Special Facilities or Market Condition Recommendations: None Formal Bid and Contract Amendments: Miscellaneous Contract No. 79368 with Equifax Information Services, LLC Miscellaneous Contract No. 82743 with Mr. Truck Wash Contract Acceptance Recommendations: None

C. Consideration of Certification/Ratification and Approval of District Checks and Vouchers

A motion unanimously passed approving Agenda Items 4A – Approval of Minutes for the Regular Meeting of September 10, 2019; 4B – Bid Awards, Professional Services Contracts and Amendments; and 4C - Certification/Ratification and Approval of District Checks and Vouchers.

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Regular Meeting 4 September 24, 2019

5. PUBLIC HEARING AND ACTION

A. Disposal of Surplus Property – 4th Quarter 2019

President Logan opened the public hearing.

There being no questions or comments from the public, the public hearing was closed.

Based on staff’s recommendation that the items were no longer necessary or useful to the District, a motion unanimously passed approving those items listed on the Exhibits A and B of the Surplus Property Recommendation Report be declared surplus and be sold for high bid or disposed of according to policy in the fourth quarter of 2019.

6. COMMISSION BUSINESS

A. Commission Reports

Commissioner Olson reported on her attendance at the District’s September Customer Breakfast.

Commissioner Wolfe reported on her attendance at a recent Edmonds Chamber of Commerce Luncheon.

7. GOVERNANCE PLANNING

A. Governance Planning Calendar

There were no changes to the Governance Planning Calendar.

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Regular Meeting 5 September 24, 2019

ADJOURNMENT

There being no further business or discussion to come before the Board, the Regular Meeting of September 24, 2019, adjourned at 1:46 p.m. An audio file of the meeting is on file in the Commission Office and available for review.

Approved this 7th day of October 2019.

Secretary

President

Vice President

74/218

BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 4B

TITLE

CEO/General Manager's Report of Public Works Contract Award Recommendations; Formal Bid Award Recommendations; Professional Services Contract Award Recommendations; Miscellaneous Contract Award Recommendations; Cooperative Purchase Recommendations; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations

SUBMITTED FOR: Consent Agenda

Contracts/Purchasing Clark Langstraat 5539 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts: Governance Process, Board Job Description, GP-3(4) … non-delegable, statutorily assigned Board duty – Contracts and Purchasing.

The CEO/General Manager's Report of Public Works Contract Award Recommendations Over $25,000; Formal Bid Award Recommendations $60,000 and Over; Professional Services Contract Award Recommendations $200,000 and Over; Miscellaneous Contract Award Recommendations $200,000 and Over; Cooperative Purchase Recommendations; Sole Source Purchase Recommendations; Emergency Declarations, Purchases and Public Works Contracts; Purchases Involving Special Facilities or Market Condition Recommendations; Formal Bid and Contract Amendments; and Contract Acceptance Recommendations contains the following sections: Public Works Contract Award Recommendations Over $25,000 (Page 1); Request for Proposal No. Doc1920449174 with JR Merit, Inc.

Formal Bid Award Recommendations $60,000 and Over; None

75/218 Professional Services Contract Award Recommendations $200,000 and Over; None

Miscellaneous Contract Award Recommendations $200,000 and Over; None

Cooperative Purchase Recommendations (Pages 2 - 3); Contracts: PO#4500053673 with Work Truck Direct PO#4500053714 with Columbia Ford Amendments: None

Sole Source Purchase Recommendations (Page 4); Purchase Order No. 4500053560 with S & C Electric Company

Emergency Declarations, Purchases and Public Works Contracts; None

Purchases Involving Special Facilities or Market Condition Recommendations; None

Formal Bid and Contract Amendments; None

Contract Acceptance Recommendations (Page 5); Public Works Contract No. CW2236791 with Davey Tree Surgery Co. Public Works Contract No. CW2237231 with Kemp West, Inc.

List Attachments: October 7, 2019 Report

Page 2 76/218 Public Works Contract Award Recommendation(s) Over $25,000 October 7, 2019 ______

RFP No. Doc1920449174 No. of Bids Solicited: 11 2019-20 Craft Maintenance Services No. of Bids Received: 1 For Generation Facilities Project Leader & Phone No.: Eric Schneider Ext. 8624

Estimate: $415,000.00

This contract will furnish labor and supervision to perform maintenance, repair, renovation, small capital construction projects and other work at the District’s Generation Facilities, as directed by the District.

Contractor Subtotal (w/o tax) Award To JR Merit, Inc. $456,840.80

Summary Statement: Staff recommends award to JR Merit, Inc., the low evaluated bidder, in the amount of $456,840.80, plus tax for the initial year.

The District has the option to renew the contract for two additional one-year periods under the same terms and conditions with price adjustments based on contractor labor rates.

77/218 Page 1 Cooperative Purchase Recommendations October 7, 2019 ______

State law permits a public agency to purchase from a contract entered into by another public agency as long as the contract is determined to have been awarded in compliance with the bidding requirements of the agency seeking to make the purchase, provided that the requirement for advertising or providing notice for bids is deemed satisfied if the awarding entity advertises according to its own bidding requirements, and either (i) posts the advertisement on any website sponsored by a public agency, purchasing cooperative or similar service provider, or (ii) provides an access link on the state’s web portal to the notice. District staff have verified through documentation and/or individual questions to the applicable awarding entity that the bid process used for each purchase recommended below meets the District’s procurement requirements.

Accordingly, staff recommends approval of the following contracts/amendments:

A. CONTRACTS Awarded Vendor Name: Work Truck Direct $174,899.20 Purchase Order Number: 4500053673 Sourcewell Contract 062117-BAN

Purchase of two new Trailer Mounted Chippers that will be used by Distribution and Engineering Services Division. The new chippers will replace existing Chippers that have reached their replacement criteria.

78/218 Page 2 Cooperative Purchase Recommendations October 7, 2019 ______

State law permits a public agency to purchase from a contract entered into by another public agency as long as the contract is determined to have been awarded in compliance with the bidding requirements of the agency seeking to make the purchase, provided that the requirement for advertising or providing notice for bids is deemed satisfied if the awarding entity advertises according to its own bidding requirements, and either (i) posts the advertisement on any website sponsored by a public agency, purchasing cooperative or similar service provider, or (ii) provides an access link on the state’s web portal to the notice. District staff have verified through documentation and/or individual questions to the applicable awarding entity that the bid process used for each purchase recommended below meets the District’s procurement requirements.

Accordingly, staff recommends approval of the following contracts/amendments:

A. CONTRACTS Awarded Vendor Name: Columbia Ford $97,713.00 Purchase Order Number: 4500053714 DES Contract #05916

Purchase of one 2020 Ford F-550 chassis with attached Switch-N-Go multi-use roll off system. This vehicle will be an addition to the Line and Vegetation Management Departments.

79/218 Page 3 Sole Source Purchase Recommendation(s) $60,000 And Over October 7, 2019 ______

PO No. 4500053560 Project Leader & Phone No.: Sanjeev Farwaha Ext 5502 One S & C 115kv Circuit Switcher for Material Estimate : $65,000.00 Floral Hills Substation

These Circuit Switchers will be installed at Floral Hills Substation. Circuit Switchers are used in substations for protecting power transformers from short circuits and overloads. They are operated manually, by SCADA or with protective relays. In addition to reducing inventory costs, the District also increases system reliability and reduces labor by standardizing on S & C Circuit Switchers. These components are not available through distribution as S & C recently began selling directly to the District.

Vendor QTY Subtotal w/o Tax Award To: S & C Electric Company 1 $63,890.00

Summary Statement: Staff recommends award to S & C Electric Company, the sole provider of this 115kv Circuit Switcher in the amount of $63,890.00, plus tax.

80/218 Page 4 Contract Acceptance Recommendations(s) October 7, 2019

Accept Contract(s) as complete and grant approval to release Retained fund after full compliance with Departments of Labor and Industries, Revenue and Employment Security. ______

PWC No. CW2236791 Contractor: Davey Tree Surgery Co. West Monroe – Circuits 12-3360, 12-3361 Start/End: 4/8/2019 – 7/16/2019 & 12-634 – Transmission & Distribution Evaluator & Phone No.: Randy Packebush Ext. 5629 Line Clearance No. of Amendments: 1

Retained Fund: $24,889.00

Original Contract Amount: $453,380.00 Total Amendment Amount: $44,400.00 Final Contract Amount: $497,780.00

Summary None Statement:

PWC No. CW2237231 Contractor: Kemp West, Inc. Circuits Alderwood 12-132, Start/End: 5/20/19 – 8/5/19 Brier 12-501, 12-502 & 12-503, Evaluator & Phone No.: Josh Perez X 5056 Transmission and Distribution Line No. of Amendments: 1 Clearance Retained Fund: $20,890.75

Original Contract Amount: $406,315.00 Total Amendment Amount: $11,500.00 Final Contract Amount: $417,815.00

Summary None Statement:

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BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 4C

TITLE:

Consideration of Certification/Ratification and Approval of District Checks and Vouchers

SUBMITTED FOR: Consent Agenda

General Accounting &Financial Systems Julia Anderson 8027 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

Governance Process, Board Job Description: GP-3(4)(B)(2)a non-delegable, statutorily assigned Board duty to approve vouchers for all warrants issued.

The attached District checks and vouchers are submitted for the Board's certification, ratification and approval.

List Attachments: Voucher Listing

87/218 88/218 Detailed Disbursement Report

Workers' Compensation

Payment Date Payment Ref Nbr Payee Amount

9/16/19 2001019 PROVIDENCE HEALTH & SERVICES WA $3.24

9/25/19 2001020 THE EVERETT CLINIC $24.96

Total: $28.20

1001 89/218 Page: 2/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/16/19 1091592 SOUND TRANSIT $18.54

9/16/19 1091593 STEVE CUNLIFFE $1,826.60

9/16/19 1091594 VANESSA LANGSTON $88.75

9/16/19 1091595 SENIOR SERVICES OF SNOHOMISH COUNTY $165.72

9/16/19 1091596 LK STEVENS SENIOR CITIZEN CENTER $143.23

9/16/19 1091597 SUNAN WYNHOFF $32.30

9/16/19 1091598 AARON BOREN $260.15

9/16/19 1091599 DE ANZA PROPERTIES 3, LLC $803.05

9/16/19 1091600 JONATHAN RAHAEUSER $16.85

9/16/19 1091601 DEENA JONES $385.89

9/16/19 1091602 JIM DOUGHERTY $17.42

9/16/19 1091603 HERBERT HOLGER $8.70

9/16/19 1091604 ERIC MOORE $28.07

9/17/19 1091605 STACIE ANDERSON $88.86

9/17/19 1091606 LORI MCCUISTION $927.43

9/17/19 1091607 KIMBERLY GILBERT $141.99

9/17/19 1091608 MIGUEL ROBINSON $95.44

9/17/19 1091609 HEATHER WILLIAMS $17.81

9/17/19 1091610 THERESEA RUSINKO $51.74

9/17/19 1091611 WATERTON LAKES LLC $2,009.84

9/17/19 1091612 AGUSTIN BARRIENTOS $5.59

9/17/19 1091613 JARED MITCHELL $4.40

9/17/19 1091614 SHELLY CHRISTENSEN $152.16

9/17/19 1091615 JAE LEE $129.47

9/17/19 1091616 MAURICE RAVENSBERG $43.85

9/17/19 1091617 HOUSING AUTHORITY SNO CO $25.39

9/17/19 1091618 ANDREW HIETPAS $66.67

9/17/19 1091619 KEVIN MOSKVIN $118.87

9/17/19 1091620 ADELA REYNA $138.65

9/17/19 1091621 VOID $0.00

9/17/19 1091622 JOSHUA GRIFFIN $16.63

9/17/19 1091623 THERESA CHRISTENSEN AYALA $84.19

1001 90/218 Page: 3/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/17/19 1091624 HECTOR AGAG $31.87

9/17/19 1091625 DELBERT PAYNE $81.71

9/17/19 1091626 SUSAN MARTIN $35.59

9/17/19 1091627 PAUL BULGER $9.96

9/17/19 1091628 TERESA QUADE $18.06

9/17/19 1091629 GRICELDA MINNICK $129.75

9/17/19 1091630 ABIGAIL OTT $153.58

9/17/19 1091631 JUANITA LAVERDURE $62.94

9/17/19 1091632 ERIC DROZDOV $15.73

9/17/19 1091633 ANNA CHRISTENSEN $18.87

9/17/19 1091634 NICHOLAS MERRY $87.93

9/17/19 1091635 LAURA BAKER $122.83

9/17/19 1091636 FELIPE MANCINA LIZARRAGA $108.96

9/17/19 1091637 MARIA GUERRERO $263.07

9/17/19 1091638 JEAN CLAUDE KAGABO $77.32

9/17/19 1091639 CONNER-FARMHOUSE LLC $133.22

9/17/19 1091640 OAKWOOD CORP HOUSING $94.63

9/17/19 1091641 DANIEL MBUGUA $133.58

9/17/19 1091642 PULTE GROUP $40.36

9/17/19 1091643 IH6 PROPERTY WASHINGTON LP $33.33

9/17/19 1091644 GERALD LANDRY $31.79

9/17/19 1091645 ERIKA SPATH $63.87

9/17/19 1091646 JEFFREY SPACEK $33.71

9/17/19 1091647 RIVERFRONT SF, LLC $60.72

9/17/19 1091648 JENIFER BOULDRON $221.68

9/17/19 1091649 JILL DULCICH $637.64

9/17/19 1091650 GLORIA WILLIAMS $107.98

9/18/19 1091651 MIKE CARLSON $327.07

9/18/19 1091652 AL ANZEE KHALED $200.77

9/18/19 1091653 ROBERT BURKE $140.13

9/18/19 1091654 DEAN TANNER $25.66

9/18/19 1091655 CLASSIC MOTORSPORTS $242.00

1001 91/218 Page: 4/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/18/19 1091656 FALLS CROSSING LLC $19.58

9/18/19 1091657 BEX PORTFOLIO LLC $59.73

9/18/19 1091658 THEIA NOLL $28.54

9/18/19 1091659 ALAN ARENS $255.64

9/18/19 1091660 STRATA FULTON LLC $14.61

9/18/19 1091661 THOMAS STANTON $403.88

9/18/19 1091662 ROBERT NELSON $507.20

9/18/19 1091663 ALEXANDRA BEDARD $96.94

9/18/19 1091664 DONGJOON LEE $109.35

9/18/19 1091665 IH6 PROPERTY WASHINGTON LP $41.47

9/18/19 1091666 RIVERFRONT SF, LLC $61.92

9/18/19 1091667 TIM SCHLECHT $15.90

9/18/19 1091668 REGGIE POLLARD $133.98

9/18/19 1091669 DA HOMES CONSTRUCTION LLC $68.74

9/18/19 1091670 ROBIN DRAKE $227.02

9/18/19 1091671 PARK PLACE EVERETT LLC $2,477.66

9/18/19 1091672 RIVERFRONT MF LLC $19.91

9/18/19 1091673 KEVIN WASHINGTON $9.73

9/18/19 1091674 ROSEMARY WOOD $24.82

9/18/19 1091675 BRITTANEY PERAZZO $126.97

9/18/19 1091676 DANIEL EBORALL $124.70

9/18/19 1091677 STEVEN HOUSER $130.82

9/18/19 1091678 CATHERINE MCCREADY $34.68

9/18/19 1091679 TYLER CORNWELL $9.71

9/18/19 1091680 BRITTNEY JOHNS $8.97

9/18/19 1091681 ALLISON HADLEY $7.08

9/19/19 1091682 RICHARD MOON $25.93

9/19/19 1091683 KATHARINE WILCOX $87.14

9/19/19 1091684 TEVIS LUJAN $70.58

9/19/19 1091685 YERIEL LLC $53.86

9/19/19 1091686 COLTON WILLIAMS $151.79

9/19/19 1091687 LADEAN GEORGEADIS $53.22

1001 92/218 Page: 5/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/19/19 1091688 SID POLLACK $366.22

9/19/19 1091689 HZ MAPLE GLEN APARTMENTS LLC $49.45

9/19/19 1091690 HZ MAPLE GLEN APARTMENTS LLC $143.35

9/19/19 1091691 CHAD SIGLE $241.76

9/19/19 1091692 PAULINE SCOTT $108.00

9/19/19 1091693 TRAVIS PROTZELLER $103.35

9/19/19 1091694 CHRISTOPHER MORIARTY $33.61

9/19/19 1091695 NICOLE VESLEY $119.72

9/19/19 1091696 MARIKO URABE $141.37

9/19/19 1091697 NEVA FAY $106.99

9/19/19 1091698 CATHRYN CHEMERES $14.55

9/19/19 1091699 BRADFORD FRESHWATER PARTNERS LLC $35.57

9/19/19 1091700 JOSHUA HUETER $130.88

9/19/19 1091701 BUENOS DIAZ CAFE $124.52

9/19/19 1091702 ROSALIE STJOHN $74.16

9/19/19 1091703 MEGAN KNAPP $64.43

9/19/19 1091704 JOEY SHIMP $111.08

9/19/19 1091705 KHANH NGUYEN $33.55

9/19/19 1091706 MATTHEW ALGER $100.92

9/19/19 1091707 HOLLAND RESIDENTIAL LLC $91.28

9/19/19 1091708 HOLLAND RESIDENTIAL LLC $60.69

9/19/19 1091709 JENNIFER RESER $200.00

9/19/19 1091710 STEPHEN LEIGHT $125.51

9/19/19 1091711 MICHAEL WATERMAN $33.15

9/19/19 1091712 ALAN ONEIL $31.88

9/19/19 1091713 YO SOY LLC $156.39

9/19/19 1091714 PHYLLIS RABUN $22.09

9/19/19 1091715 Y & C DREAMLAND LLC $130.68

9/19/19 1091716 ROBIN RUSSELL $83.63

9/19/19 1091717 RICHMOND AMERICAN HOMES OF WA INC $24.17

9/19/19 1091718 DANIELLE FINN $50.81

9/19/19 1091719 KIRA CRAWFORD $121.93

1001 93/218 Page: 6/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/19/19 1091720 PACIFIC RIDGE - DRH, LLC $151.50

9/20/19 1091721 SUZANNE JONASON $49.01

9/20/19 1091722 PAUL MASALSKY $150.74

9/20/19 1091723 BOEING EMPLOYEES CREDIT UNION $115.36

9/20/19 1091724 SKYLER TODD $109.80

9/20/19 1091725 GRACE THOMSON $120.90

9/20/19 1091726 U.S. REIF FIRDALE VILLAGE WASHINGTON, $7.26

9/20/19 1091727 RAYMOND WEBER $17.44

9/20/19 1091728 IAN BASHFORTH $141.37

9/20/19 1091729 CDK CONSTRUCTION SERVICES, INC $1,094.08

9/20/19 1091730 SHAVSHA FIREHEART $76.34

9/20/19 1091731 MADELEINE GATHMAN $71.12

9/20/19 1091732 194TH STREET SW DATA CENTER LLC $3,519.49

9/20/19 1091733 EDWARD WELLS $111.25

9/20/19 1091734 MARY OLSON $28.11

9/20/19 1091735 BARBARA JOHNSTON $120.11

9/20/19 1091736 RENE LIZAMA $83.45

9/20/19 1091737 LI TAO $140.32

9/20/19 1091738 SUNEL NUYLAN $162.00

9/20/19 1091739 STACY PEARSON $143.29

9/20/19 1091740 FAIRWAY OF EDMONDS, LLC $8.92

9/20/19 1091741 JAMES CHURCH $46.46

9/20/19 1091742 JULIEANNE MILLER $232.96

9/20/19 1091743 LOGAN VEENSTRA $140.99

9/20/19 1091744 STEVE CARUSO $119.11

9/20/19 1091745 FNU ASADULLAH $7.92

9/20/19 1091746 LORYN WOOD $104.07

9/20/19 1091747 ANTHONY CLARK $68.83

9/20/19 1091748 ELLINOR ALLESTAD $52.73

9/20/19 1091749 SCJAA $12.42

9/20/19 1091750 HOLLAND RESIDENTIAL LLC $24.70

9/20/19 1091751 EVERETT HOUSING AUTHORITY $11.24

1001 94/218 Page: 7/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/20/19 1091752 LAURIE GREIMES $125.00

9/20/19 1091753 KRISTINE WAGONER $245.56

9/20/19 1091754 CAMERON MOBBLEY $8.41

9/20/19 1091755 ASHLEY POTEET $147.75

9/20/19 1091756 CYRUS HATCH $634.73

9/20/19 1091757 JEAN JONES $1,167.66

9/20/19 1091758 JAMES WILLETT $21.77

9/20/19 1091759 JOHN FOX $91.96

9/23/19 1091760 GORDON LIPKE $85.00

9/23/19 1091761 CRYSTAL SPRINGS APTS $41.55

9/23/19 1091762 II CARL FORSBERG $119.25

9/23/19 1091763 YUNMEI XU $145.25

9/23/19 1091764 AVELLINO AT BOTHELL LLC $185.45

9/23/19 1091765 SHAVSHA FIREHEART $18.48

9/23/19 1091766 50 PINE STREET OWNERS ASSOCIATION $874.77

9/23/19 1091767 SSHI LLC $108.72

9/23/19 1091768 SARA COBB $19.92

9/23/19 1091769 MARCI PENCE $222.83

9/23/19 1091770 SUJOUNG KIM $16.29

9/23/19 1091771 WILLIAMS INVESTMENTS $8.43

9/23/19 1091772 YUPING PAN $292.05

9/23/19 1091773 NING SUN $8.60

9/23/19 1091774 WILLIAM PETITCLERC $76.32

9/23/19 1091775 DORIN IAKOBAN $83.00

9/24/19 1091776 LINDA HIMPLE $39.27

9/24/19 1091777 JOSHUA MURPHY $18.27

9/24/19 1091778 SRINIVASA REDDY MALLAMPATI $14.73

9/24/19 1091779 MELEIHA CARVALHO $6.16

9/24/19 1091780 JOHN RUBIO $125.62

9/24/19 1091781 BRYNNAN FINK $82.38

9/24/19 1091782 KASSANDRA ABREGO $131.69

9/24/19 1091783 SHAWN LARSON $76.75

1001 95/218 Page: 8/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/24/19 1091784 BRADLEY WILLIAMSON $89.97

9/24/19 1091785 MENGSU CHEN $150.45

9/24/19 1091786 SHAWNE GARLIEPP $112.76

9/24/19 1091787 IHOR BEN $58.09

9/24/19 1091788 KIRSTEN POMA $207.03

9/24/19 1091789 WENDY BROWN $457.01

9/24/19 1091790 WILLIAM WATSON $18.47

9/24/19 1091791 APRIL CLARK $34.42

9/24/19 1091792 WINDY SINGLETON $10.43

9/24/19 1091793 OILIPUA SEKONA $65.13

9/24/19 1091794 CHRISTARAY SMITH $127.37

9/24/19 1091795 TORICO HARRIS $95.18

9/24/19 1091796 CRAIG RILEY $28.50

9/24/19 1091797 ANGELA KORR $6.06

9/24/19 1091798 LILA YEAGER $132.49

9/24/19 1091799 CHI YANG $132.07

9/24/19 1091800 VOID $0.00

9/24/19 1091801 IRVING GARCIA $231.62

9/24/19 1091802 BRETTON MURPHY $20.84

9/24/19 1091803 EMILY PETERSON $126.80

9/24/19 1091804 CHRISTOPHER BELL $31.17

9/24/19 1091805 SCOTT AMES $36.55

9/24/19 1091806 ROYCE CHURCH $16.29

9/24/19 1091807 JASON CHRISTOPHERSON $54.59

9/24/19 1091808 DAMON REIMANN $58.35

9/24/19 1091809 JOSHUA CARSON $74.48

9/24/19 1091810 KAMLESH KAPOOR $122.93

9/24/19 1091811 TREVOR BURNS $198.64

9/24/19 1091812 KEN KERR $72.07

9/24/19 1091813 KENNETH WHITNEY $93.96

9/24/19 1091814 KAELAH DAHL $24.53

9/24/19 1091815 ABANOUB ATALLA $196.20

1001 96/218 Page: 9/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/24/19 1091816 JOWELL LARICAN $77.18

9/24/19 1091817 OLGA GLAZKOV $106.28

9/24/19 1091818 VICTORIA ALBANESE $15.38

9/24/19 1091819 COLLEEN LARSON $17.27

9/24/19 1091820 MICHAEL ALTAMIRANO $127.88

9/24/19 1091821 CHRISTOPHER LAWSON $44.88

9/24/19 1091822 CHASE MONTROY $99.93

9/24/19 1091823 RILEY MORING $153.67

9/24/19 1091824 DAVID DUSSEAULT $144.08

9/24/19 1091825 ELISA AMOS $144.71

9/24/19 1091826 ASHLEY MACINNIS $293.39

9/24/19 1091827 PARKER MCPHETRIDGE $118.58

9/24/19 1091828 JAKE CRANE $20.79

9/24/19 1091829 ANDREW CHUMNEY $65.00

9/24/19 1091830 JAMILA PAYNE $53.67

9/24/19 1091831 RANDI BRADLEY $186.69

9/24/19 1091832 LEANDRA SCHMITT $139.17

9/24/19 1091833 VINAY BABU YELLA $6.89

9/25/19 1091834 LORETTA NICHOLS $93.82

9/25/19 1091835 DARLENE HARDY $12.10

9/25/19 1091836 KIZZY SHAW $80.00

9/25/19 1091837 JENNIFER ALEXANDER $101.62

9/25/19 1091838 MARY PAT SEBRING $88.17

9/25/19 1091839 CHRISTOPHER WOOD $42.77

9/25/19 1091840 KEVIN MORAND $36.62

9/25/19 1091841 REANNA BROWN $22.01

9/25/19 1091842 LISA DRAPER $157.51

9/25/19 1091843 JEROME DUNN $71.66

9/25/19 1091844 CHI WEI YEH $17.95

9/25/19 1091845 RENEE PICKETTS $48.70

9/25/19 1091846 PATRICK HORTON $83.42

9/25/19 1091847 PRISCILLA MARTINEZ $41.79

1001 97/218 Page: 10/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/25/19 1091848 NANCY CARNEY $113.34

9/25/19 1091849 ERIC GRAHAM $97.16

9/25/19 1091850 LAURIE RUSSELL $147.02

9/25/19 1091851 NORMA PICENO $53.93

9/25/19 1091852 CINDY ANDREW $5.16

9/25/19 1091853 MICHAEL DELANCE $405.45

9/25/19 1091854 RAYMOND AXFORD $616.00

9/25/19 1091855 FRANCISCO REYES $59.72

9/25/19 1091856 CARROLLS CREEK APARTMENTS PROPERTY OWNER $37.93

9/25/19 1091857 AUBREY VANASSCHE $27.02

9/25/19 1091858 TIM SHRIDE $13.79

9/25/19 1091859 DAVID BEANE $80.89

9/25/19 1091860 BURGEONING STUDIOS LLC $83.06

9/25/19 1091861 ANTHONY CECI $73.35

9/25/19 1091862 JAMES VANDYKE $8.35

9/25/19 1091863 MICHAEL ZILLEN $24.93

9/25/19 1091864 JERRY ITHURRALDE $42.68

9/25/19 1091865 JAIME KLING $75.72

9/25/19 1091866 SALLY DEASON $296.00

9/25/19 1091867 ELAINE CURTISS $90.26

9/25/19 1091868 ALEXANDRIA ALANIZ $57.00

9/25/19 1091869 ROBERT COURTNEY $52.10

9/25/19 1091870 KAREN KIMMELL $20.81

9/25/19 1091871 MICHAEL SWEETSER $57.11

9/25/19 1091872 JACOB OESCH $35.67

9/25/19 1091873 DAGMAR LAUGHTLAND $152.90

9/25/19 1091874 DIANE NORRIS $35.59

9/25/19 1091875 MICHAEL MCBRIDE $9.83

9/25/19 1091876 ANTON SOKOLI $137.21

9/25/19 1091877 RIVERSIDE CONSULTING GROUP, LLC $317.74

9/25/19 1091878 DANNY MENDOZA $147.49

9/25/19 1091879 HA DONG TRAN $17.74

1001 98/218 Page: 11/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/25/19 1091880 NADIA KUKHOTSKAYA $16.96

9/25/19 1091881 EMANUEL DANILET $7.16

9/25/19 1091882 SARAH BUSSELL $115.20

9/25/19 1091883 JONG YEON KIM $55.06

9/25/19 1091884 CHARLES MOLI $16.59

9/25/19 1091885 CAROLINE BROWN $63.45

9/25/19 1091886 JOHN PARTIN $123.78

9/25/19 1091887 RYAN OAK $16.12

9/25/19 1091888 WOODBROOK INVESTMENT PARTNERS LP $9.85

9/25/19 1091889 AMY GRONEMYER $5.92

9/25/19 1091890 LILY MORGAN $90.75

9/25/19 1091891 BRADLEY HOWER $60.94

9/26/19 1091892 PATRICIA FLEISHER $51.04

9/26/19 1091893 KEELERS CORNER APTS $18.78

9/26/19 1091894 HZ COPPERSTONE APARTMENTS, LLC $11.60

9/26/19 1091895 CHRYSTEANA EIGENBRODE $14.74

9/26/19 1091896 CDK CONSTRUCTION SERVICES, INC $825.40

9/26/19 1091897 FRED BURCH $87.73

9/26/19 1091898 AARON PETRAS $76.07

9/26/19 1091899 AMANDA WOLFE $102.23

9/26/19 1091900 KAYLIA HENDRIX $97.73

9/26/19 1091901 COUREY SCHAEFER $146.50

9/26/19 1091902 RAYMOND BRADEN $104.45

9/26/19 1091903 BENJAMIN NOLAN $24.84

9/26/19 1091904 FRANCISCO REYES $5.20

9/26/19 1091905 JEOM LEE $128.66

9/26/19 1091906 MICHAEL ROMO $25.45

9/26/19 1091907 JILL SKILLINGSTAD $171.38

9/26/19 1091908 1708, LLC $30.34

9/26/19 1091909 STEPHANIE D FIELDS $170.35

9/26/19 1091910 MARY BROWN $96.79

9/26/19 1091911 WILLIAM TURNER $63.46

1001 99/218 Page: 12/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/26/19 1091912 AARON FOX $90.23

9/26/19 1091913 BRYCE KOISHOR $141.77

9/26/19 1091914 MICHAEL MORGAN $41.53

9/26/19 1091915 PATRICIA ENGEL $31.71

9/26/19 1091916 JACK SMITH $33.96

9/26/19 1091917 TECT AEROSPACE INC $235.10

9/26/19 1091918 STANDARD DE LA ROSA VENTURE, L.P. $65.73

9/26/19 1091919 DEBORAH MOORE $177.13

9/26/19 1091920 WJL HOMESERVICES LLC $44.05

9/26/19 1091921 GERI DENT $93.81

9/26/19 1091922 HOUSING AUTHORITY SNO CO $15.54

9/26/19 1091923 DAVID POWELL $10.10

9/26/19 1091924 RICHARD PEARSON $61.00

9/26/19 1091925 SHANELLE CLARK $17.04

9/26/19 1091926 MARILYN METZ $48.44

9/26/19 1091927 JIMMI MATSINGER $123.66

9/26/19 1091928 ALICE HENRY $160.66

9/26/19 1091929 TRAI NGUYEN $192.16

9/26/19 1091930 LANDSVERK QUALITY HOMES, INC $32.20

9/26/19 1091931 WELDON BRADSHAW $80.07

9/26/19 1091932 JOY HAUSE $149.66

9/26/19 1091933 JACK JOSS $98.25

9/26/19 1091934 ROBERT EWRY $25.82

9/26/19 1091935 EDUARDO STAMP $19.59

9/26/19 1091936 BERNICE FRANKS $101.68

9/26/19 1091937 KELLSIE RASLER $61.23

9/26/19 1091938 CEP III-COLLINS 18 LLC $9.74

9/26/19 1091939 CLI WA LLC $55.14

9/27/19 1091940 JULIE ERICKSON $13.16

9/27/19 1091941 TONI SINCLAIR $40.14

9/27/19 1091942 JETAIME MOREHEAD $68.62

9/27/19 1091943 BRIAN PHELPS $120.84

1001 100/218 Page: 13/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/27/19 1091944 TYLER MARQUEZ $94.32

9/27/19 1091945 ROGER MANEVAL $400.43

9/27/19 1091946 MELANIE HERING $121.36

9/27/19 1091947 PAT RHODES $101.55

9/27/19 1091948 JENNIFER HUTCHINGS $122.10

9/27/19 1091949 JERCY HERRERAS $10.36

9/27/19 1091950 DERAL SAX $132.26

9/27/19 1091951 KATE KIEFFER $151.78

9/27/19 1091952 MICHAEL GAGLE $97.59

9/27/19 1091953 KELLY FARRELL $500.00

9/27/19 1091954 WGC HOLDINGS LLC $85.23

9/27/19 1091955 CHEYANNE KOLE $122.31

9/27/19 1091956 2018-2 IH BORROWER LP $85.98

9/27/19 1091957 MARIO MEDINA HERNANDEZ $89.74

9/27/19 1091958 OLUFEMI ADEPOJU $1,572.58

9/27/19 1091959 SONEE SINGH $22.47

9/27/19 1091960 KIRSTEN SCHWAB $150.00

9/27/19 1091961 COLTON HALL $132.79

9/27/19 1091962 N W BUILDERS INC $92.68

9/27/19 1091963 CDK CONSTRUCTION SERVICES, INC $19.51

9/27/19 1091964 LADEAN GEORGEADIS $22.64

9/27/19 1091965 AUKI PIFFATH $2,540.77

9/27/19 1091966 LYNNWOOD BEAVER CREEK LLC $49.31

9/27/19 1091967 MATTHEW CARTER $58.31

9/27/19 1091968 MUI CHEUNG $9.34

9/27/19 1091969 ROBINETT MANAGEMENT CO LLC $21.05

9/27/19 1091970 RANDALL MCDONALD $431.12

9/27/19 1091971 ELIZABETH SPILLER $36.76

9/27/19 1091972 DAVID NIELSEN $223.43

9/27/19 1091973 JESSE TILLMAN $61.92

9/27/19 1091974 BILAL FAROOQI $65.08

9/27/19 1091975 ALERA HEARNE $122.17

1001 101/218 Page: 14/40 Detailed Disbursement Report

Revolving Fund - Customer Refunds, Incentives and Other

Payment Date Payment Ref Nbr Payee Amount

9/27/19 1091976 HEIDI CAVINAW $124.37

Total: $55,201.80

1001 102/218 Page: 15/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/16/19 8052118 AECOM TECHNICAL SERVICES INC $2,637.05

9/16/19 8052119 EJ BROOKS COMPANY $5,671.51

9/16/19 8052120 NAVIA BENEFIT SOLUTIONS $2,208.00

9/16/19 8052121 THE GOLDEN CUP INC $221.02

9/16/19 8052122 MOTOR TRUCKS INC $1,807.57

9/16/19 8052123 SNOHOMISH COUNTY $41.38

9/16/19 8052124 SNOHOMISH COUNTY $983.00

9/16/19 8052125 MARCOO INC $431.08

9/16/19 8052126 STATE OF WASHINGTON $679.18

9/16/19 8052127 WW GRAINGER INC $630.91

9/16/19 8052128 CITY OF BOTHELL $628.95

9/16/19 8052129 DBS ENTERPRISES INC $49.41

9/16/19 8052130 JEFFREY HATHAWAY $309.92

9/16/19 8052131 CITY OF MOUNTLAKE TERRACE $3,892.58

9/16/19 8052132 ELECTRICAL TRAINING ALLIANCE $185.40

9/16/19 8052133 SNOHOMISH COUNTY $298.00

9/16/19 8052134 PUBLIC UTILITY DIST NO 1 OF SNOHOMI $2,303.06

9/16/19 8052135 WEX BANK $52,714.26

9/16/19 8052136 GRAYBAR ELECTRIC CO INC $2,363.41

9/16/19 8052137 GSR RENTALS INC $2,438.66

9/16/19 8052138 ENDRESS & HAUSER INC $2,110.01

9/16/19 8052139 PACIFIC RIDGE - DRH, LLC $12,682.00

9/16/19 8052140 RICHARD NOKES $3,800.68

9/16/19 8052141 JACK D JORGENSEN $3,621.08

9/16/19 8052142 IRMA DREGHORN $160.86

9/17/19 8052143 ALDERWOOD WATER & WASTEWATER DISTRI $31.72

9/17/19 8052144 CAMANO WATER ASSN $210.90

9/17/19 8052145 EQUIFAX INFORMATION SERVICES LLC $8,606.81

9/17/19 8052146 CITY OF EVERETT $5,114.35

9/17/19 8052147 EVERETT SCHOOL DISTRICT #2 $2,044.00

9/17/19 8052148 FERGUSON ENTERPRISES INC $350.13

9/17/19 8052149 KAMAN FLUID POWER LLC $5,901.07

1001 103/218 Page: 16/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/17/19 8052150 CITY OF LAKE STEVENS $200.00

9/17/19 8052151 LOWES COMPANIES INC $192.70

9/17/19 8052152 PERFORMANCE RADIATOR PACIFIC LLC $1,586.34

9/17/19 8052153 CITY OF ARLINGTON $169.32

9/17/19 8052154 SCADA AND CONTROLS ENGINEERING INC $49,133.00

9/17/19 8052155 SNOHOMISH COUNTY $1,032.00

9/17/19 8052156 SOUND PUBLISHING INC $112.00

9/17/19 8052157 WW GRAINGER INC $45.48

9/17/19 8052158 ATLAS SUPPLY INC $499.64

9/17/19 8052159 BGC FINANCIAL LP $650.06

9/17/19 8052160 COMCAST HOLDINGS CORPORATION $9,320.00

9/17/19 8052161 K&L GATES LLP $776.70

9/17/19 8052162 BRIAN DAVIS ENTERPRISES INC $425.15

9/17/19 8052163 MANTIS MFG INC $2,411.08

9/17/19 8052164 OAK HARBOR FREIGHT LINES INC $2,467.09

9/17/19 8052165 SUMMIT SAFETY SHOES $1,296.52

9/17/19 8052166 TECHPOWER SOLUTIONS INC $110,783.16

9/17/19 8052167 TRAFFIC SAFETY SUPPLY CO $1,680.06

9/17/19 8052168 GRAYBAR ELECTRIC CO INC $72.14

9/17/19 8052169 SAFETY SOURCE LLC $577.55

9/17/19 8052170 GREEN DOT CONCRETE $157.25

9/17/19 8052171 LIQUIVISION TECHNOLOGY INC $14,559.63

9/17/19 8052172 MIDWEST MOTOR SUPPLY CO INC $479.80

9/17/19 8052173 CITY OF ARLINGTON $131.97

9/17/19 8052174 ALESSANDER SREY $1,700.00

9/17/19 8052175 MARSHBANK CONSTRUCTION INC. $275.00

9/17/19 8052176 SKYLINE ELECTRICAL SERVICES LLC $299.50

9/17/19 8052177 TODD CARLSON $326.00

9/18/19 8052178 AT&T CORP $3,203.58

9/18/19 8052179 CCH INCORPORATED $458.25

9/18/19 8052180 CITY OF DARRINGTON $4,899.23

9/18/19 8052181 DUNN LUMBER CO INC $44.60

1001 104/218 Page: 17/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/18/19 8052182 CITY OF GOLD BAR $7,917.91

9/18/19 8052183 LOWES COMPANIES INC $127.83

9/18/19 8052184 CITY OF MARYSVILLE $142,269.64

9/18/19 8052185 MOTOR TRUCKS INC $61.07

9/18/19 8052186 CITY OF MOUNTLAKE TERRACE $50,733.56

9/18/19 8052187 REPUBLIC SERVICES INC $253.33

9/18/19 8052188 SNOHOMISH COUNTY $31.70

9/18/19 8052189 CITY OF SULTAN $18,352.44

9/18/19 8052190 STATE OF WASHINGTON $1,095.84

9/18/19 8052191 STATE OF WASHINGTON $3,140.00

9/18/19 8052192 STATE OF WASHINGTON $1,570.00

9/18/19 8052193 STATE OF WASHINGTON $1,570.00

9/18/19 8052194 WW GRAINGER INC $75.30

9/18/19 8052195 CITY OF ARLINGTON $91,083.06

9/18/19 8052196 CITY OF BOTHELL $94,100.77

9/18/19 8052197 CITY OF BRIER $12,168.47

9/18/19 8052198 DIRECTV LLC $87.99

9/18/19 8052199 CITY OF EDMONDS $112,755.74

9/18/19 8052200 JEFFREY HATHAWAY $42.77

9/18/19 8052201 CITY OF INDEX $402.30

9/18/19 8052202 CITY OF LAKE STEVENS $113,592.60

9/18/19 8052203 CITY OF MONROE $73,974.09

9/18/19 8052204 ELECTRICAL TRAINING ALLIANCE $1,481.55

9/18/19 8052205 SNOHOMISH COUNTY $309.00

9/18/19 8052206 PUBLIC UTILITY DIST NO 1 OF SNOHOMI $1,701.04

9/18/19 8052207 CITY OF STANWOOD $22,435.82

9/18/19 8052208 TOWN OF WOODWAY $4,508.54

9/18/19 8052209 CITY OF GRANITE FALLS $11,559.76

9/18/19 8052210 GRAYBAR ELECTRIC CO INC $834.80

9/18/19 8052211 AT&T CORP $2,236.04

9/18/19 8052212 RAMON DIAZ PACHECO $16,820.20

9/18/19 8052213 ICONIX WATERWORKS FKA CORIX WATER $6,467.08

1001 105/218 Page: 18/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/18/19 8052214 GSR RENTALS INC $3,345.83

9/18/19 8052215 CITY OF EVERETT $527,928.73

9/18/19 8052216 WILLIAM A JORGENSEN $68.63

9/18/19 8052217 ISSQUARED INC $2,213.99

9/18/19 8052218 VIRGINIA WALDROUP $7,000.00

9/18/19 8052219 MARYSVILLE STANWOOD LLC $1,500.00

9/18/19 8052220 BONITA A MORAN $16,000.00

9/18/19 8052221 CITY OF LYNNWOOD $150,352.77

9/18/19 8052222 CITY OF MUKILTEO $67,832.51

9/18/19 8052223 CITY OF SNOHOMISH $28,148.76

9/18/19 8052224 COMCAST $21,773.78

9/18/19 8052225 ICMA-RC $625.00

9/18/19 8052226 JULIE MORRISON AND/OR SUSAN DRAKE $280.00

9/18/19 8052227 LINDA PUTNAM AND/OR SARA HULSE $360.00

9/18/19 8052228 RACHELLE POWELL AND/OR $1,200.00

9/19/19 8052229 CITY OF EVERETT $178,036.68

9/19/19 8052230 IBEW LOCAL #77 $64,302.30

9/19/19 8052231 LOWES COMPANIES INC $68.78

9/19/19 8052232 CITY OF LYNNWOOD $782.65

9/19/19 8052233 MOTOR TRUCKS INC $97.37

9/19/19 8052234 MYCOFF FRY PARTNERS LLC $23,300.00

9/19/19 8052235 PUGET SOUND ENERGY INC $173.59

9/19/19 8052236 ROMAINE ELECTRIC CORP $1,295.09

9/19/19 8052237 SILVER LAKE WATER & SEWER DISTRICT $41.00

9/19/19 8052238 SEPTIC SERVICES INC $860.78

9/19/19 8052239 UNITED SITE SERVICES OF NEVADA INC $1,496.00

9/19/19 8052240 WW GRAINGER INC $268.88

9/19/19 8052241 DOBBS HEAVY DUTY HOLDINGS LLC $2,276.73

9/19/19 8052242 GLENS WELDING & MACHINE INC $172.09

9/19/19 8052243 LAKE STEVENS SEWER DIST $90.59

9/19/19 8052244 DAVID JAMES PERKINS $3,135.00

9/19/19 8052245 GARY PETERSEN $13,490.30

1001 106/218 Page: 19/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/19/19 8052246 SAN JUAN MARINE FREIGHT COMPANY LLC $3,356.50

9/19/19 8052247 SNOHOMISH COUNTY $3,744.14

9/19/19 8052248 WESTERN NURSERY SALES $111.45

9/19/19 8052249 GRID SOLUTIONS US LLC $3,873.74

9/19/19 8052250 RAMON DIAZ PACHECO $1,861.44

9/19/19 8052251 MARKETING & TECHNICAL MATERIALS INC $134.60

9/19/19 8052252 MANOR HARDWARE INC $428.74

9/19/19 8052253 CITY OF EVERETT $8,953.32

9/19/19 8052254 EVERGREEN STATE SHEET METAL INC $12,800.00

9/19/19 8052255 EVERGREEN STATE SHEET METAL INC $44,800.00

9/19/19 8052256 VICTOR HUGO GOMES $67,397.29

9/19/19 8052257 COMCAST $21,918.87

9/19/19 8052258 RMH LLC $243.00

9/19/19 8052259 RACHELLE POWELL AND/OR $433.25

9/20/19 8052260 HI-LINE ELECTRIC COMPANY INC $151.85

9/20/19 8052261 LOWES COMPANIES INC $906.51

9/20/19 8052262 MOTOR TRUCKS INC $87.33

9/20/19 8052263 SALISH NETWORKS INC $480.30

9/20/19 8052264 SOUND PUBLISHING INC $229.60

9/20/19 8052265 MARCOO INC $1,326.73

9/20/19 8052266 STATE OF WASHINGTON $26,140.00

9/20/19 8052267 DOBBS HEAVY DUTY HOLDINGS LLC $347.36

9/20/19 8052268 JEFFREY HATHAWAY $209.55

9/20/19 8052269 PUBLIC UTILITY DIST NO 1 OF SNOHOMI $18.90

9/20/19 8052270 GRID SOLUTIONS US LLC $3,873.74

9/20/19 8052271 ICONIX WATERWORKS FKA CORIX WATER $463.18

9/20/19 8052272 NORTH SOUND AUTO GROUP LLC $289.87

9/20/19 8052273 WILLIAM A JORGENSEN $329.56

9/20/19 8052274 NATIONAL EXPRESS DURHAM HOLDING COR $3,660.00

9/20/19 8052275 CITY OF MUKILTEO $185.00

9/20/19 8052276 DUSTIN KARINIEMI $336.00

9/23/19 8052277 LIRA WOLFE $416.47

1001 107/218 Page: 20/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/23/19 8052278 COMCAST HOLDING CORPORATION $627.42

9/23/19 8052279 IVOXY CONSULTING LLC $16,443.75

9/23/19 8052280 LANGUAGE LINE SERVICES INC $2,582.41

9/23/19 8052281 LEXISNEXIS RISK DATA MANAGEMENT INC $32.94

9/23/19 8052282 LOWES COMPANIES INC $317.08

9/23/19 8052283 MOTOR TRUCKS INC $221.93

9/23/19 8052284 BEACON PUBLISHING INC $990.00

9/23/19 8052285 NW SUBSURFACE WARNING SYSTEM $8,529.48

9/23/19 8052286 OPEN TEXT INC $8,441.64

9/23/19 8052287 POWER & TELEPHONE SUPPLY CO INC $7,411.50

9/23/19 8052288 SIX ROBBLEES' INC $158.74

9/23/19 8052289 SNOHOMISH COUNTY $1,700.00

9/23/19 8052290 SNOHOMISH COUNTY $419.00

9/23/19 8052291 SOUND PUBLISHING INC $1,576.20

9/23/19 8052292 TESSCO INCORPORATED $373.46

9/23/19 8052293 MARCOO INC $22.14

9/23/19 8052294 TRENCHLESS CONSTR SVCS LLC $10,564.07

9/23/19 8052295 US BANK NA $2,160.50

9/23/19 8052296 VERIZON WIRELESS $168.78

9/23/19 8052297 WW GRAINGER INC $165.05

9/23/19 8052298 BACKGROUND INFORMATION SERVICES INC $1,674.10

9/23/19 8052299 KING BROADCASTING COMPANY $1,667.00

9/23/19 8052300 PACIFIC PUBLISHING CO INC $279.00

9/23/19 8052301 SPRINGBROOK NURSERY AND TRUCKING IN $134.75

9/23/19 8052302 CITY OF STANWOOD $1,455.31

9/23/19 8052303 SUREWOULD MOTORS INC $35.27

9/23/19 8052304 WASHINGTON STATE PATROL $6,591.63

9/23/19 8052305 WELLSPRING FAMILY SERVICES $2,702.35

9/23/19 8052306 G4S SECURE SOLUTIONS USA INC $109,402.11

9/23/19 8052307 GRAYBAR ELECTRIC CO INC $7,830.09

9/23/19 8052308 UFP WEST CENTRAL LLC $2,276.81

9/23/19 8052309 Z2SOLUTIONS LLC $1,200.00

1001 108/218 Page: 21/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/23/19 8052310 ICONIX WATERWORKS FKA CORIX WATER $2,639.42

9/23/19 8052311 HCL AMERICA INC $42,600.38

9/23/19 8052312 MOBILE SOLUTIONS SVCS HOLDINGS LLC $5,380.15

9/23/19 8052313 PNG MEDIA LLC $253.58

9/23/19 8052314 THE PARTNERS GROUP LTD $6,495.83

9/23/19 8052315 BERG EQUIPMENT & SCAFFOLDING CO INC $5,415.34

9/23/19 8052316 ACRO MACHINING INC $3,975.00

9/23/19 8052317 DEVELOPMENT DIMENSIONS INTRNTL INC $15,182.00

9/23/19 8052318 OAK CREST UNLIMITED LLC $4,519.78

9/24/19 8052319 WA ST MILITARY DEPT (FEMA) $41,242.13

9/24/19 8052320 NANCY WAHL $398.00

9/24/19 8052321 HAT ISLAND COMMUNITY ASSN $10.00

9/24/19 8052322 VERIZON CONNECT NWF INC $12,081.85

9/24/19 8052323 PRYSMIAN CABLES & SYSTEMS USA LLC $6,177.97

9/24/19 8052324 SOUND SECURITY INC $456.00

9/24/19 8052325 SUBURBAN PROPANE $892.90

9/24/19 8052326 REFINITIV US LLC $4,185.58

9/24/19 8052327 WEST PUBLISHING CORPORATION $5,472.82

9/24/19 8052328 VALMONT COMPOSITE STRUCTURES INC $11,753.80

9/24/19 8052329 ALDERWOOD WATER & WASTEWATER DISTRI $9,420.00

9/24/19 8052330 THOMAS D MORTIMER JR $2,860.00

9/24/19 8052331 PACIFIC MOBILE STRUCTURES INC $333.07

9/24/19 8052332 ITRON NETWORKED SOLUTIONS INC $4,233.58

9/24/19 8052333 THE SHERWIN-WILLIAMS CO $635.84

9/24/19 8052334 CROWN CASTLE INTERNATIONAL CORP $3,850.61

9/24/19 8052335 PACIFIC NORTHWEST THEATRE ASSOC $1,131.05

9/24/19 8052336 WHECO CORP $2,226.57

9/24/19 8052337 PACIFIC OUTDOOR ADVERTISING LLC $780.00

9/24/19 8052338 GARY F KENNA $2,535.00

9/24/19 8052339 PACIFIC RIDGE - DRH LLC $6,000.00

9/24/19 8052340 GIDDENS INDUSTRIES INC $9,360.00

9/24/19 8052341 AMERICAN RESIDENTIAL SERVICES LLC $1,500.00

1001 109/218 Page: 22/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/25/19 8052342 AT&T MOBILITY II LLC $117.24

9/25/19 8052343 CDW LLC $8,203.74

9/25/19 8052344 CITY OF EVERETT $211.92

9/25/19 8052345 GLOBAL RENTAL COMPANY INC $4,282.20

9/25/19 8052346 KAMAN FLUID POWER LLC $5,576.54

9/25/19 8052347 CITY OF LAKE STEVENS $200.00

9/25/19 8052348 CITY OF MONROE $840.97

9/25/19 8052349 VERIZON CONNECT NWF INC $1,142.08

9/25/19 8052350 NORDSTROM HEATING & AIR INC $1,000.00

9/25/19 8052351 PUGET SOUND ENERGY INC $3,407.43

9/25/19 8052352 CITY OF ARLINGTON $1,065.87

9/25/19 8052353 REPUBLIC SERVICES INC $799.50

9/25/19 8052354 SKAGIT LAW GROUP PLLC $3,416.50

9/25/19 8052355 WESTERN ENERGY INSTITUTE $23,606.73

9/25/19 8052356 WW GRAINGER INC $39.71

9/25/19 8052357 AAA OF EVERETT FIRE $200.00

9/25/19 8052358 BEVERLYS AUTO LICENSING $177.25

9/25/19 8052359 CROSS VALLEY WATER DISTRICT $106.18

9/25/19 8052360 BRIAN DAVIS ENTERPRISES INC $670.77

9/25/19 8052361 ROOSEVELT WATER ASSN INC $90.00

9/25/19 8052362 PUBLIC UTILITY DIST NO 1 OF SNOHOMI $166.17

9/25/19 8052363 WEACO INC $3,564.30

9/25/19 8052364 ACHILLES USA INC $17,801.88

9/25/19 8052365 KEVIN ST JACQUES $1,000.00

9/25/19 8052366 VERTIV CORPORATION $6,282.83

9/25/19 8052367 WASHINGTON ENERGY SERVICES COMPANY $490.00

9/26/19 8052368 RIVERFRONT SF, LLC $5,736.92

9/26/19 8052369 PATRICK JOHNSON $3,353.58

9/26/19 8052370 RICHARD & TERRI JORGENSEN $275.00

9/26/19 8052371 LINDA PUTNAM AND/OR SARA HULSE $360.00

9/26/19 8052372 ASPECT SOFTWARE INC $6,750.00

9/26/19 8052373 BURROUGHS INC $1,022.71

1001 110/218 Page: 23/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/26/19 8052374 EJ BROOKS COMPANY $2,272.86

9/26/19 8052375 MARSH USA INC $19,985.75

9/26/19 8052376 FRED MEYER STORES INC $23.23

9/26/19 8052377 REPUBLIC SERVICES INC $253.33

9/26/19 8052378 SECURE PACIFIC CORPORATION $3,861.00

9/26/19 8052379 SOUND PUBLISHING INC $6,239.40

9/26/19 8052380 SOUND SECURITY INC $47.84

9/26/19 8052381 WILBUR-ELLIS HOLDINGS II INC $542.45

9/26/19 8052382 WW GRAINGER INC $270.21

9/26/19 8052383 BILLS BLUEPRINT INC $193.99

9/26/19 8052384 CITY OF BOTHELL $628.95

9/26/19 8052385 GREATER EDMONDS CHAMBER OF COMMERCE $7.36

9/26/19 8052386 GENCORE CANDEO LTD $11,017.33

9/26/19 8052387 KNIFE TECHNOLOGY INC $77.90

9/26/19 8052388 BRIAN DAVIS ENTERPRISES INC $855.64

9/26/19 8052389 SKOTDAL MUTUAL LLC $1,000.00

9/26/19 8052390 PUBLIC UTILITY DIST NO 1 OF SNOHOMI $16,949.01

9/26/19 8052391 BRENT STAINER $1,300.00

9/26/19 8052392 WYNNE AND SONS INC $219.60

9/26/19 8052393 BLOOMBERG FINANCE LP $8,399.70

9/26/19 8052394 GRAYBAR ELECTRIC CO INC $159.19

9/26/19 8052395 DICKS SPORTING GOODS INC $34,132.00

9/26/19 8052396 ADVANTAGE STAFFING GROUP LLC $696.00

9/26/19 8052397 NEXREV LLC $4,408.00

9/26/19 8052398 VOID $0.00

9/26/19 8052399 SOUND METRICS CORP $875.00

9/26/19 8052400 WASHINGTON STATE DEPT OF HEALTH $366,109.60

9/26/19 8052401 ARAMARK UNIFORM & CAREER APPAREL GR $4,852.41

9/26/19 8052402 ONECALL HOLDINGS INC $58,459.00

9/26/19 8052403 PACIFIC CLEANING SERVICES & SUPPLY $988.20

9/26/19 8052404 NELSON JOHNSON 201 LLC $992.00

9/26/19 8052405 SEBCO INC $5,100.00

1001 111/218 Page: 24/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/26/19 8052406 THE BARTELL DRUG COMPANY $62.10

9/26/19 8052407 BRENNAN HEATING & AC LLC $5,600.00

9/26/19 8052408 WASHINGTON STATE UNIVERSITY $15,000.00

9/26/19 8052409 WASHINGTON ENERGY SERVICES COMPANY $3,400.00

9/26/19 8052410 BUDDERFLY INC $1,176.00

9/27/19 8052411 PACIFIC RIDGE - DRH, LLC $13,042.38

9/27/19 8052412 TINA BYRLEY-NORRIS $18.08

9/27/19 8052413 RACHELLE POWELL AND/OR $1,200.00

9/27/19 8052414 ARGUS PACIFIC INC $2,520.00

9/27/19 8052415 CDW LLC $8,291.70

9/27/19 8052416 DUNN LUMBER CO INC $103.52

9/27/19 8052417 EES CONSULTING INC $1,620.00

9/27/19 8052418 FRONTIER COMMUNICATIONS CORP $7,592.49

9/27/19 8052419 THE GOLDEN CUP INC $18.81

9/27/19 8052420 HATLOE DECORATING CENTER INC $88.74

9/27/19 8052421 LOWES COMPANIES INC $346.49

9/27/19 8052422 MC MASTER CARR SUPPLY CO $333.59

9/27/19 8052423 MOTOR TRUCKS INC $794.91

9/27/19 8052424 SNOHOMISH COUNTY $88.30

9/27/19 8052425 SNOHOMISH COUNTY $76.20

9/27/19 8052426 SNOHOMISH COUNTY $64.63

9/27/19 8052427 SNOHOMISH COUNTY $58.42

9/27/19 8052428 SNOHOMISH COUNTY $19.69

9/27/19 8052429 SNOHOMISH COUNTY $91.86

9/27/19 8052430 STEWART TITLE COMPANY $36.01

9/27/19 8052431 SNOHOMISH COUNTY COUNCIL OF THE $2,700.00

9/27/19 8052432 MARCOO INC $133.33

9/27/19 8052433 TRENCHLESS CONSTR SVCS LLC $17,178.54

9/27/19 8052434 WEST PUBLISHING CORPORATION $2,727.44

9/27/19 8052435 WW GRAINGER INC $301.77

9/27/19 8052436 ASTROF CONCRETE HARDWARE & RENTAL $205.81

9/27/19 8052437 EDS MCDOUGALL LLC $320.00

1001 112/218 Page: 25/40 Detailed Disbursement Report

Accounts Payable Warrants

Payment Date Payment Ref Nbr Payee Amount

9/27/19 8052438 RUBATINO REFUSE REMOVAL INC $5,441.20

9/27/19 8052439 SNOHOMISH COUNTY $34,418.74

9/27/19 8052440 PUBLIC UTILITY DIST NO 1 OF SNOHOMI $36.72

9/27/19 8052441 MACH PUBLISHING INC $1,175.00

9/27/19 8052442 CITY OF EVERETT $1,263.60

9/27/19 8052443 NORTHERN TOOL AND EQUIPMENT COMPANY $217.40

9/27/19 8052444 COLTON L BAILEY $1,647.00

9/27/19 8052445 NORTH SOUND AUTO GROUP LLC $181.83

9/27/19 8052446 FERGUSON ENTERPRISES INC $1,175.76

9/27/19 8052447 ATWORK COMMERCIAL ENTERPRISES $17,521.20

9/27/19 8052448 DIABSOLUT INC $740.00

9/27/19 8052449 NORTH COUNTY OUTLOOK INC $1,935.00

9/27/19 8052450 WASTE MANAGEMENT OF WA INC $1,074.00

9/27/19 8052451 OCCUPATIONAL HEALTH CENTERS OF WA P $1,040.00

9/27/19 8052452 ACCESS INFORMATION HOLDINGS LLC $3,319.27

9/27/19 8052453 WILLIAM A JORGENSEN $54.85

9/27/19 8052454 WELL PM PROPERTIES LLC $4,680.00

9/27/19 8052455 SHERMAN PERRY $3,350.00

9/27/19 8052456 SCOTT STEADMAN $4,000.00

9/27/19 8052457 DENNIS M FENSTERMAKER $825.00

9/27/19 8052458 MARTYN BYRNE $4,617.00

9/27/19 8052459 GREGORY A GEORGE $910.00

9/27/19 8052460 EVERGREEN STATE SHEET METAL INC $3,300.00

9/27/19 8052461 GB ENTERPRISES OF WASHINGTON LLC $3,497.00

9/27/19 8052462 GLASS BY LUND INC $1,825.00

9/27/19 8052463 SELECT AIR SERVICES INC $800.00

9/27/19 8052464 GS HEATING & COOLING LLC $19,500.00

9/27/19 8052465 WASHINGTON STATE DEPT OF HEALTH $25,431.19

Total: $3,751,094.42

1001 113/218 Page: 26/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/16/19 6012294 CADMAN INC $770.35

9/16/19 6012295 CONSOLIDATED ELECTRICAL DISTRIBUTOR $1,727.15

9/16/19 6012296 FASTENAL COMPANY $3.57

9/16/19 6012297 HOWARD INDUSTRIES INC $12,759.86

9/16/19 6012298 INTERWEST CONSTRUCTION INC $290,992.32

9/16/19 6012299 OFFICE DEPOT INC $1,063.82

9/16/19 6012300 ON HOLD CONCEPTS INC $93.34

9/16/19 6012301 ROY ROBINSON INC $147.81

9/16/19 6012302 S&C ELECTRIC COMPANY $63,705.96

9/16/19 6012303 SISKUN INC $89.89

9/16/19 6012304 TACOMA SCREW PRODUCTS INC $18.23

9/16/19 6012305 TOPSOILS NORTHWEST INC $420.00

9/16/19 6012306 UNITED PARCEL SERVICE $267.93

9/16/19 6012307 GORDON TRUCK CENTERS INC $430.34

9/16/19 6012308 STATE OF WASHINGTON $7,029.53

9/16/19 6012309 CHAMPION BOLT & SUPPLY INC $366.08

9/16/19 6012310 CUZ CONCRETE PRODUCTS INC $9,333.00

9/16/19 6012311 EVERETT STEEL INC $1,657.26

9/16/19 6012312 LAW DAWGS INC $1,000.00

9/16/19 6012313 MORGAN SOUND $10,147.72

9/16/19 6012314 LOUIS F MATHESON CONSTRUCTION INC $409.64

9/16/19 6012315 SOUND SAFETY PRODUCTS CO INC $564.26

9/16/19 6012316 SUMMIT LAW GROUP PLLC $10,868.50

9/16/19 6012317 TECH PRODUCTS INC $1,759.10

9/16/19 6012318 UNITED REFRIGERATION INC $290.83

9/16/19 6012319 TIERRA RIGHT OF WAY SERVICES LTD $1,250.00

9/16/19 6012320 ANIXTER INC $9,648.40

9/16/19 6012321 ARC DOCUMENT SOLUTIONS LLC $1,095.13

9/16/19 6012322 BURNS & MCDONNELL ENGR CO INC $16,025.00

9/16/19 6012323 REXEL USA INC $4,931.49

9/16/19 6012324 NEWSDATA LLC $15,372.00

9/16/19 6012325 CENVEO WORLDWIDE LIMITED $2,310.21

1001 114/218 Page: 27/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/16/19 6012326 ROBERT MCMANIS $716.39

9/16/19 6012327 MARK OENS $255.20

9/16/19 6012328 KURT GRAFE $122.38

9/16/19 6012329 ROBERT ALIMENT $160.29

9/16/19 6012330 MONICA GORMAN $84.68

9/16/19 6012331 ROBERT PETERSON $48.72

9/16/19 6012332 TODD ASHTON $1,779.70

9/16/19 6012333 KIMBERLY HAUGEN $82.50

9/16/19 6012334 KEVIN LAVERING $131.08

9/16/19 6012335 WENDY VLAHOVICH $88.74

9/16/19 6012336 KELLY BAXANDALL $44.08

9/16/19 6012337 AARON SWANEY $54.64

9/16/19 6012338 JAMES THOMPSON $274.76

9/16/19 6012339 MARK BROWN $319.26

9/16/19 6012340 PETER DAUENHAUER $1,354.84

9/16/19 6012341 KEVIN JOHNSTON $81.80

9/16/19 6012342 SHAWN WIGGINS $110.20

9/16/19 6012343 NICOLAS WRIGHT $160.00

9/17/19 6012344 HORIZON DISTRIBUTORS INC $22.43

9/17/19 6012345 LAKESIDE INDUSTRIES INC $897.31

9/17/19 6012346 NORTH COAST ELECTRIC COMPANY $787.63

9/17/19 6012347 NORTHWEST POWER POOL CORP $4,625.78

9/17/19 6012348 STELLAR INDUSTRIAL SUPPLY INC $1,393.83

9/17/19 6012349 THERMAL SUPPLY INC $77.27

9/17/19 6012350 WILLIAMS SCOTSMAN INC $399.07

9/17/19 6012351 EDGE ANALYTICAL INC $894.00

9/17/19 6012352 GENERAL PACIFIC INC $729.73

9/17/19 6012353 GOVERNMENT PORTFOLIO ADVISORS $6,250.00

9/17/19 6012354 LENZ ENTERPRISES INC $1,217.51

9/17/19 6012355 NORTHWEST CASCADE INC $358.83

9/17/19 6012356 POWER ENGINEERS INC $2,079.85

9/17/19 6012357 TMG SERVICES INC $105.70

1001 115/218 Page: 28/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/17/19 6012358 ULINE INC $456.78

9/17/19 6012359 WETHERHOLT & ASSOCIATES INC $2,800.15

9/17/19 6012360 UNITED RENTALS NORTH AMERICA INC $12,160.35

9/17/19 6012361 ANIXTER INC $10,172.79

9/17/19 6012362 ARC DOCUMENT SOLUTIONS LLC $274.50

9/17/19 6012363 VIVID LEARNING SYSTEMS INC $53,143.20

9/17/19 6012364 REXEL USA INC $759.61

9/17/19 6012365 HARNISH GROUP INC $128.27

9/17/19 6012366 NEXANT INC $74,142.26

9/17/19 6012367 HP INC $2,843.90

9/17/19 6012368 BRAD KIME $104.00

9/17/19 6012369 MONICA DOPPEL $556.22

9/17/19 6012370 THOMAS DEBOER $636.46

9/17/19 6012371 JOHN HAARLOW $307.59

9/17/19 6012372 JOEL FARIES $55.68

9/18/19 6012373 INTERCONTINENTAL EXCHANGE HOLDINGS $3,275.00

9/18/19 6012374 MR TRUCK WASH INC $3,250.08

9/18/19 6012375 PUGET SOUND ENERGY INC $1,016.55

9/18/19 6012376 STELLAR INDUSTRIAL SUPPLY INC $1,518.62

9/18/19 6012377 CW KELLY ENTERPRISES LLC $30,198.26

9/18/19 6012378 TFS ENERGY LLC $925.00

9/18/19 6012379 TULLETT PREBON AMERICAS CORP $1,000.00

9/18/19 6012380 WEST COAST PAPER CO $3,408.19

9/18/19 6012381 BENEFITFOCUS COM INC $1,000.00

9/18/19 6012382 BRAKE & CLUTCH SUPPLY INC $379.91

9/18/19 6012383 OTC GLOBAL HOLDINGS LP $1,400.00

9/18/19 6012384 CUZ CONCRETE PRODUCTS INC $1,458.60

9/18/19 6012385 DALCO INC $54.71

9/18/19 6012386 DUNLAP INDUSTRIAL HARDWARE INC $65.85

9/18/19 6012387 EDGE ANALYTICAL INC $192.00

9/18/19 6012388 GENERAL PACIFIC INC $3,106.48

9/18/19 6012389 NORTHWEST CASCADE INC $2,841.53

1001 116/218 Page: 29/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/18/19 6012390 PACIFIC TRADE SYSTEMS INC $42.69

9/18/19 6012391 POWER ENGINEERS INC $727.20

9/18/19 6012392 PILCHUCK EQUIPMENT RENTALS AND SALE $1,175.04

9/18/19 6012393 UNITED RENTALS NORTH AMERICA INC $6,544.30

9/18/19 6012394 ANIXTER INC $10,591.36

9/18/19 6012395 AB RETAIL INC $739.17

9/18/19 6012396 HYAS GROUP LLC $11,875.00

9/18/19 6012397 THE GOODYEAR TIRE & RUBBER CO $527.56

9/18/19 6012398 EN POINTE TECHNOLOGIES SALES LLC $6,574.70

9/18/19 6012399 TRAFFIC CONTROL PLAN CO OF WA LLC $150.00

9/18/19 6012400 REXEL USA INC $136.05

9/18/19 6012401 FARWEST LINE SPECIALTIES LLC $2,570.00

9/18/19 6012402 BJS TOOLS LLC $351.26

9/18/19 6012403 HP INC $4,277.81

9/19/19 6012404 ASPLUNDH TREE EXPERT LLC $28,226.71

9/19/19 6012405 HORIZON DISTRIBUTORS INC $57.19

9/19/19 6012406 HOWARD INDUSTRIES INC $10,008.27

9/19/19 6012407 MICHELS CORPORATION $459,195.92

9/19/19 6012408 NORTHSTAR CHEMICAL INC $941.20

9/19/19 6012409 SCHWEITZER ENGINEERING LAB INC $13,889.70

9/19/19 6012410 STONEWAY ELECTRIC SUPPLY CO $244.47

9/19/19 6012411 GORDON TRUCK CENTERS INC $278.28

9/19/19 6012412 WESCO DISTRIBUTION INC $5,430.27

9/19/19 6012413 WESTERN FACILITIES SUPPLY INC $191.43

9/19/19 6012414 WORKSPACE DEVELOPMENT LLC $1,553.87

9/19/19 6012415 CHAMPION BOLT & SUPPLY INC $633.31

9/19/19 6012416 CUZ CONCRETE PRODUCTS INC $441.98

9/19/19 6012417 DALCO INC $202.21

9/19/19 6012418 MT HOOD FASTENER CO $164.75

9/19/19 6012419 NORTHWEST CASCADE INC $358.83

9/19/19 6012420 POWER ENGINEERS INC $848.40

9/19/19 6012421 SOUND SAFETY PRODUCTS CO INC $1,274.47

1001 117/218 Page: 30/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/19/19 6012422 UNITED REFRIGERATION INC $53.10

9/19/19 6012423 OFFICE OF THE SECRETARY OF STATE $3,074.37

9/19/19 6012424 ALTEC INDUSTRIES INC $3,944.97

9/19/19 6012425 PROTECTEAR USA INC $122.98

9/19/19 6012426 TRAFFIC CONTROL PLAN CO OF WA LLC $150.00

9/19/19 6012427 RESOUND ENERGY LLC $7,286.00

9/19/19 6012428 LISA HORNUNG $189.66

9/20/19 6012429 HOWARD INDUSTRIES INC $2,241.02

9/20/19 6012430 MR TRUCK WASH INC $1,729.72

9/20/19 6012431 UNITED PARCEL SERVICE $1,107.02

9/20/19 6012432 WIDENET CONSULTING GROUP LLC $1,480.00

9/20/19 6012433 KEMP WEST INC $355,813.00

9/20/19 6012434 GRID SOLUTIONS US LLC $38,568.63

9/20/19 6012435 CG ENGINEERING PLLC $2,500.00

9/20/19 6012436 RESOUND ENERGY LLC $4,326.00

9/23/19 6012437 INTERWEST CONSTRUCTION INC $28,548.00

9/23/19 6012438 NORTH COAST ELECTRIC COMPANY $40.82

9/23/19 6012439 OFFICE DEPOT INC $693.63

9/23/19 6012440 STONEWAY ELECTRIC SUPPLY CO $201.41

9/23/19 6012441 TACOMA SCREW PRODUCTS INC $94.17

9/23/19 6012442 EDGE ANALYTICAL INC $144.00

9/23/19 6012443 GENERAL PACIFIC INC $1,801.82

9/23/19 6012444 LAW DAWGS INC $1,000.00

9/23/19 6012445 MCLARENS $248.40

9/23/19 6012446 NORTHWEST LININGS & GEOTEXTILE $399.67

9/23/19 6012447 PACIFIC TRADE SYSTEMS INC $68.99

9/23/19 6012448 RELIANCE MANUFACTURING CORPORATION $5,592.72

9/23/19 6012449 ROHLINGER ENTERPRISES INC $522.73

9/23/19 6012450 SOUND SAFETY PRODUCTS CO INC $6,476.79

9/23/19 6012451 STAPLES CONTRACT & COMMERCIAL LLC $1,315.60

9/23/19 6012452 STOEL RIVES LLP $7,817.50

9/23/19 6012453 MALLORY SAFETY AND SUPPLY LLC $4,798.64

1001 118/218 Page: 31/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/23/19 6012454 THE GOODYEAR TIRE & RUBBER CO $43.92

9/23/19 6012455 WESTERN STATES FIRE PROTECTION CO $301.95

9/23/19 6012456 REXEL USA INC $1,134.11

9/23/19 6012457 HARMSEN LLC $4,505.50

9/23/19 6012458 JONI WILBURN $139.20

9/23/19 6012459 KIM SMITH $30.00

9/23/19 6012460 STEPHANIE STROM $29.00

9/23/19 6012461 REBECCA BURDEN $8.70

9/23/19 6012462 JAMES ROBBINS $139.20

9/23/19 6012463 ALLISON GRINCZEL $511.00

9/23/19 6012464 SCOTT BASOM $37.12

9/23/19 6012465 AMANDA PUTNAM $40.60

9/23/19 6012466 RYEN NEWBY $111.36

9/23/19 6012467 NICHOLAS JOHNSTON $782.32

9/23/19 6012468 KIMBERLY JOHNSTON $320.29

9/24/19 6012469 CONSOLIDATED ELECTRICAL DISTRIBUTOR $4,785.22

9/24/19 6012470 FASTENAL COMPANY $44.36

9/24/19 6012471 HOWARD INDUSTRIES INC $3,568.50

9/24/19 6012472 INTEGRA CHEMICAL CO $2,643.80

9/24/19 6012473 S&C ELECTRIC COMPANY $319.39

9/24/19 6012474 SCHWEITZER ENGINEERING LAB INC $6,247.62

9/24/19 6012475 STELLAR INDUSTRIAL SUPPLY INC $1,165.09

9/24/19 6012476 TACOMA SCREW PRODUCTS INC $30.26

9/24/19 6012477 VAN NESS FELDMAN LLP $4,187.43

9/24/19 6012478 EDGE ANALYTICAL INC $160.00

9/24/19 6012479 GENERAL PACIFIC INC $13,585.11

9/24/19 6012480 HD FOWLER COMPANY INC $233.44

9/24/19 6012481 LONE MOUNTAIN COMMUNICATIONS LLC $1,095.00

9/24/19 6012482 ROHLINGER ENTERPRISES INC $783.75

9/24/19 6012483 SOUND SAFETY PRODUCTS CO INC $1,377.83

9/24/19 6012484 VISION METERING LLC $1,800.00

9/24/19 6012485 UNITED RENTALS NORTH AMERICA INC $12,728.02

1001 119/218 Page: 32/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/24/19 6012486 SPINAL HEALTH CONSULTANTS INC $7,200.00

9/24/19 6012487 REXEL USA INC $6,542.02

9/24/19 6012488 HARNISH GROUP INC $165.95

9/24/19 6012489 CALIFORNIA INDEPENDENT SYSTEM OPERA $116,667.00

9/25/19 6012490 CONSOLIDATED ELECTRICAL DISTRIBUTOR $11,038.19

9/25/19 6012491 HOWARD INDUSTRIES INC $813.62

9/25/19 6012492 SISKUN INC $119.69

9/25/19 6012493 STELLAR INDUSTRIAL SUPPLY INC $515.31

9/25/19 6012494 STONEWAY ELECTRIC SUPPLY CO $51.58

9/25/19 6012495 THYSSENKRUPP ELEVATOR CORP $209.79

9/25/19 6012496 TOPSOILS NORTHWEST INC $2,310.00

9/25/19 6012497 GORDON TRUCK CENTERS INC $61.25

9/25/19 6012498 VAN NESS FELDMAN LLP $4,365.00

9/25/19 6012499 WESCO DISTRIBUTION INC $312,136.75

9/25/19 6012500 MCLARENS $248.40

9/25/19 6012501 ROHLINGER ENTERPRISES INC $153.86

9/25/19 6012502 SOUND SAFETY PRODUCTS CO INC $2,026.07

9/25/19 6012503 PILCHUCK EQUIPMENT RENTALS AND SALE $888.05

9/25/19 6012504 ALTEC INDUSTRIES INC $1,061.21

9/25/19 6012505 DS SERVICES OF AMERICA INC $263.81

9/25/19 6012506 HP INC $3,623.40

9/25/19 6012507 STILLY RIVER MECHANICAL INC $8,600.00

9/25/19 6012508 AA REMODELING LLC $1,260.00

9/25/19 6012509 MMCS LLC $1,500.00

9/25/19 6012510 KEVIN WATIER $330.82

9/25/19 6012511 ALAN BURKE $37.12

9/25/19 6012512 DEAN GALVEZ $1,761.81

9/25/19 6012513 LAURA MCCRAE $964.81

9/25/19 6012514 KEGAN FRIDDLE $37.12

9/25/19 6012515 THOMAS DEBOER $493.13

9/25/19 6012516 JACOB ANSTETT $1,827.93

9/25/19 6012517 NICOLAS WRIGHT $75.00

1001 120/218 Page: 33/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/26/19 6012518 ALLIANCE TO SAVE ENERGY $6,000.00

9/26/19 6012519 ASPLUNDH TREE EXPERT LLC $30,293.84

9/26/19 6012520 HARGIS ENGINEERS INC $1,825.00

9/26/19 6012521 SCHWEITZER ENGINEERING LAB INC $351.36

9/26/19 6012522 SISKUN INC $305.64

9/26/19 6012523 THYSSENKRUPP ELEVATOR CORP $214.11

9/26/19 6012524 TOPSOILS NORTHWEST INC $105.00

9/26/19 6012525 UNITED PARCEL SERVICE $262.70

9/26/19 6012526 WESCO DISTRIBUTION INC $484.99

9/26/19 6012527 AARD PEST CONTROL INC $313.50

9/26/19 6012528 ALL BATTERY SALES & SERVICE $1,208.29

9/26/19 6012529 ALLIED ELECTRONICS INC $189.83

9/26/19 6012530 DESIGNER DECAL INC $725.78

9/26/19 6012531 GENERAL PACIFIC INC $44,636.43

9/26/19 6012532 GEOENGINEERS INC $2,191.50

9/26/19 6012533 KEMP WEST INC $396,924.25

9/26/19 6012534 OWEN EQUIPMENT $24.90

9/26/19 6012535 RELIANCE MANUFACTURING CORPORATION $2,007.28

9/26/19 6012536 LOUIS F MATHESON CONSTRUCTION INC $1,082.15

9/26/19 6012537 ROHLINGER ENTERPRISES INC $624.32

9/26/19 6012538 UNITED REFRIGERATION INC $606.24

9/26/19 6012539 ALTEC INDUSTRIES INC $1,511.80

9/26/19 6012540 ANIXTER INC $85,003.13

9/26/19 6012541 HAVENSIGHT CONSULTING GROUP LLC $18,593.75

9/26/19 6012542 TRAFFIC CONTROL PLAN CO OF WA LLC $300.00

9/26/19 6012543 REXEL USA INC $2,542.97

9/26/19 6012544 AMERICAN CRAWLSPACE & PEST SERVICES $5,532.00

9/26/19 6012545 BREEZE FREE INC $490.00

9/26/19 6012546 STILLY RIVER MECHANICAL INC $8,300.00

9/26/19 6012547 RESOUND ENERGY LLC $6,699.00

9/26/19 6012548 AA REMODELING LLC $300.00

9/26/19 6012549 AMPED ELECTRIC & MECHANICAL LLC $2,500.00

1001 121/218 Page: 34/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/26/19 6012550 SEATOWN ELECTRIC CORP $1,600.00

9/26/19 6012551 ANNA BERG $252.88

9/27/19 6012552 CADMAN INC $255.64

9/27/19 6012553 CENTRAL WELDING SUPPLY CO INC $747.41

9/27/19 6012554 DIVERSIFIED INSPECTIONS ITL INC $1,260.00

9/27/19 6012555 GENSCO INC $1,716.17

9/27/19 6012556 OFFICE DEPOT INC $2,799.39

9/27/19 6012557 PETROCARD INC $1,362.15

9/27/19 6012558 R2 RESOURCE CONSULTANTS INC $3,466.55

9/27/19 6012559 SEATTLE TIMES COMPANY $2,803.00

9/27/19 6012560 STONEWAY ELECTRIC SUPPLY CO $626.95

9/27/19 6012561 PRATT DAY & STRATTON PLLC $3,203.00

9/27/19 6012562 THERMAL SUPPLY INC $556.49

9/27/19 6012563 UNITED PARCEL SERVICE $648.43

9/27/19 6012564 WESTERN FACILITIES SUPPLY INC $287.14

9/27/19 6012565 WEST INTERACTIVE SERVICES CORP INC $150.00

9/27/19 6012566 WIDENET CONSULTING GROUP LLC $1,485.18

9/27/19 6012567 WILLIAMS SCOTSMAN INC $787.83

9/27/19 6012568 WASHINGTON STATE NURSERY $5,005.00

9/27/19 6012569 ARONSON SECURITY GROUP INC $7,850.72

9/27/19 6012570 CHAMPION BOLT & SUPPLY INC $875.30

9/27/19 6012571 CONSOLIDATED SUPPLY CO $61.39

9/27/19 6012572 CONTRACT HARDWARE INC $12,500.23

9/27/19 6012573 CUZ CONCRETE PRODUCTS INC $7,811.89

9/27/19 6012574 DUNLAP INDUSTRIAL HARDWARE INC $43.81

9/27/19 6012575 EVERETT SAFE & LOCK INC $213.23

9/27/19 6012576 MARTIN LUMBER & HARDWARE INC $1,127.87

9/27/19 6012577 NORTHWEST CASCADE INC $700.89

9/27/19 6012578 OPEN ACCESS TECHNOLOGY INTL INC $9,360.10

9/27/19 6012579 LOUIS F MATHESON CONSTRUCTION INC $1,821.60

9/27/19 6012580 STAPLES CONTRACT & COMMERCIAL LLC $379.82

9/27/19 6012581 UNITED REFRIGERATION INC $645.38

1001 122/218 Page: 35/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/27/19 6012582 VISION METERING LLC $18,660.00

9/27/19 6012583 MAGNUM POWER LLC $422,492.31

9/27/19 6012584 TIERRA RIGHT OF WAY SERVICES LTD $1,058.94

9/27/19 6012585 ANIXTER INC $391.57

9/27/19 6012586 TECHNIART INC $68,012.72

9/27/19 6012587 CAPITAL ARCHITECTS GROUP PC $4,410.16

9/27/19 6012588 REXEL USA INC $1,422.25

9/27/19 6012589 CENVEO WORLDWIDE LIMITED $3,767.02

9/27/19 6012590 TWILIO INC $2,107.79

9/27/19 6012591 COLEMAN OIL COMPANY LLC $1,947.41

9/27/19 6012592 CLEAN CRAWL INC $2,995.00

9/27/19 6012593 CM HEATING INC $11,700.00

9/27/19 6012594 COZY HEATING INC $6,250.00

9/27/19 6012595 ENERGY WORKS LLC $2,600.00

9/27/19 6012596 CRAWL SPACE CLEANING PROS INC $1,571.00

9/27/19 6012597 FROG HVAC LLC $800.00

9/27/19 6012598 GORDON HAYSLIP $534.40

9/27/19 6012599 SARA HULSE $221.56

9/27/19 6012600 ROBERT KAKALEY $175.00

9/27/19 6012601 CASSIE MARTIN $113.08

9/27/19 6012602 JULIA ANDERSON $1,054.98

9/27/19 6012603 SCOTT SPAHR $271.44

9/27/19 6012604 CASEY DONOVAN $1,827.93

9/27/19 6012605 JEFFREY MITCHELL $107.30

9/27/19 6012606 JANELLE MEDEMA $37.12

9/27/19 6012607 JANNE AVATARE $292.00

9/27/19 6012608 SETH MACDUFF $1,827.93

9/27/19 6012609 JENNIFER SOUTHARD $765.94

9/27/19 6012610 BRADLEY SPANGLER $157.74

9/27/19 6012611 BRENDA JOHNS $328.45

9/27/19 6012612 NICOLE BASANTA $163.64

9/27/19 6012613 JEFFREY FEINBERG $239.42

1001 123/218 Page: 36/40 Detailed Disbursement Report

Accounts Payable ACH

Payment Date Payment Ref Nbr Payee Amount

9/27/19 6012614 JENNIFER MULLEN $1,459.56

9/27/19 6012615 JESSIE PITTIS $75.00

Total: $3,563,095.86

1001 124/218 Page: 37/40 Detailed Disbursement Report

Accounts Payable Wires

Payment Date Payment Ref Nbr Payee Amount

9/16/19 7001505 US BANK NA $8,324.63

9/17/19 7001506 MCLARENS YOUNG INTERNATIONAL INC $179.99

9/19/19 7001507 EDF TRADING NORTH AMERICA LLC $2,700.00

9/19/19 7001508 ICMA-RC $134,032.96

9/19/19 7001509 PUBLIC UTILITY DIST NO 1 OF SNOHOMI $55,778.01

9/19/19 7001510 ICMA-RC $430,589.90

9/19/19 7001511 MCLARENS YOUNG INTERNATIONAL INC $3,094.09

9/20/19 7001512 PUBLIC UTILITY DIST NO 1 OF CHELAN $20,558.00

9/20/19 7001513 THE ENERGY AUTHORITY INC $11,795.00

9/20/19 7001514 CITY OF SEATTLE $307,663.44

9/20/19 7001515 US DEPARTMENT OF ENERGY $2,325.00

9/20/19 7001516 CORVEL HEALTHCARE CORP $5,508.34

9/20/19 7001517 EXELON CORP $5,742.00

9/20/19 7001518 HAMPTON LUMBER MILLS-WA INC $56,769.51

9/20/19 7001519 AVANGRID RENEWABLES LLC $1,844,636.29

9/20/19 7001520 LL&P WIND ENERGY INC $306,087.85

9/20/19 7001521 SHELL ENERGY NORTH AMERICA LP $659,200.00

9/20/19 7001522 US BANK NA $9,246.50

9/23/19 7001523 US POSTAL SVC $49,000.00

9/23/19 7001524 WHEAT FIELD WIND POWER PROJECT LLC $1,943,086.40

9/24/19 7001525 US DEPARTMENT OF ENERGY $18,930,126.00

9/27/19 7001526 CORVEL HEALTHCARE CORP $16,548.31

9/27/19 7001527 US BANK NA $3,592.28

Total: $24,806,584.50

1001 125/218 Page: 38/40 Detailed Disbursement Report

Payroll

Period End Date Payment Ref Nbr Payee Amount

9/19/19 5300000282 PUD EMPLOYEES - DIRECT DEPOSIT $3,177,521.11

9/20/19 843788 - 843806 PUD EMPLOYEES - WARRANTS $43,621.86

1001 126/218 Page: 39/40 Detailed Disbursement Report

Automatic Debit Payments

Payment Date Payment Ref Nbr Payee Amount

9/19/19 5300000282 AUTOMATIC DATA PROCESSING $702,523.43

9/25/19 5300000283 STATE OF WA DEPT OF REVEN $1,900,975.70

9/25/19 5300000284 STATE OF WA DEPT OF RETIR $151,305.30

Total: $2,754,804.43

1001 127/218 Page: 40/40

BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 4D

TITLE

Consideration of a Resolution Approving Amendment No. 14 to the Collective Bargaining Agreement Between the Public Utility District No. 1 of Snohomish County and the International Brotherhood of Electrical Workers, Local No. 77, for the Period of April 1, 2017, Through March 31, 2020

SUBMITTED FOR: Consent Agenda

Employee Resources Bob Oberstein/Aaron Janisko 1812/5454 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: $144,000.00/year plus overtime Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

Governance Policy: Executive Limitation - EL-5.7 - Financial Condition and Activities: The General Manager shall not execute modifications to the collective bargaining agreement between the District and the International Brotherhood of Electrical Workers (IBEW).

Governance Process, Board Job Description: GP-3(4) (A)1 non-delegable, statutorily assigned Board duty to fix compensation of employees by establishing a scale of salaries for specific classes of work.

Summary Background:

Currently, the Construction Superintendent role in Line Operations does not require field experience as a Lineman, which leaves a gap in technical leadership over crews. Proposed CBA Amendment No. 14 adds the position of Line Construction General Foreman (a represented position) which would report to the Construction Superintendent or Distribution Services Manager and work collaboratively in the oversight of line crews. The Line Construction General Foreman

128/218 would contribute technical skill in staff and other meetings and allow for added resources during regular and emergency operations. Additionally, collaborative oversight of crews by a Construction Superintendent and Line Construction General Foreman will contribute to our collaborative culture between Union and management.

Recommendation:

District staff recommend that the Board of Commissioners pass the attached resolution approving CBA Amendment No. 14 to amend Subsection 8.1.9 and add Subsection 8.1.24 of Subsection 8.1 (Line Unit) of Article 8 (Special Working Rules By Units) and Article 9 (Compensation) of the current Collective Bargaining Agreement.

List Attachments: Resolution Exhibit A

Page 2

129/218 RESOLUTION NO. _____

A RESOLUTION Approving Amendment No. 14 to the Collective Bargaining Agreement Between the Public Utility District No. 1 of Snohomish County and the International Brotherhood of Electrical Workers, Local No. 77, for the Period of April 1, 2017, Through March 31, 2020

WHEREAS, on March 30, 2017, Public Utility District No. 1 of Snohomish County

(“District”) and the International Brotherhood of Electrical Workers, Local No. 77 (“IBEW”) entered into the current Collective Bargaining Agreement (“CBA”) covering the time period of April 1, 2017 through March 31, 2020; and

WHEREAS, the District and IBEW desire to amend Subsection 8.1.9 and add

Subsection 8.1.24 of Section 8.1 (Line Unit) of Article 8 (Special Working Rules By Units), and amend Article 9 (Compensation) of the current CBA in order to establish the classification of Line Construction General Foreman in accordance with the attached proposed CBA amendment (Exhibit “A”) (“Amendment No. 14”); and

WHEREAS, the Board of Commissioners has reviewed proposed Amendment No. 14 to the CBA, considered the recommendations of staff, and finds that the proposed

Amendment No. 14 is in the best interests of the District and its ratepayers.

NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners of Public

Utility District No. 1 of Snohomish County hereby approves the proposed Amendment

No. 14 to the current Collective Bargaining Agreement between the District and the

International Brotherhood of Electrical Workers, Local No. 77, in the form set forth as

Exhibit A, and approves and authorizes the execution and delivery of said Amendment

No. 14 in the name and on behalf of the District by the CEO/General Manager of the District.

130/218 Resolution No. _____ -2-

PASSED AND APPROVED this 7th day of October, 2019.

President

Vice-President

Secretary

131/218 Resolution No. _____ Exhibit A Page No. 1 of 6 Amendment No. 14 to the Collective Bargaining Agreement Regarding the Addition of the Line Construction General Foreman Position

This Amendment No. 14 of the Collective Bargaining Agreement (dated March 30, 2017) (“CBA”) is entered into by and between Public Utility District No. 1 of Snohomish County (“District”) and Local Union No. 77 of the International Brotherhood of Electrical Workers (“Union”). The District and the Union are referred to herein individually as “Party” and collectively as “Parties.”

WHEREAS, the Parties desire to amend Subsection 8.1.9 and add Subsection 8.1.24 of Section 8.1 (Line Unit) of Article 8 (Special Working Rules By Units) and amend Article 9 (Compensation) of the current CBA in order to establish the classification of Line Construction General Foreman.

NOW, THEREFORE, the Parties agree to amend the current CBA as follows:

1. Subsection 8.1.9 of Section 8.1 (Line Unit) of Article 8 (Special Working Rules By Units) is amended as follows (new language is underlined):

8.1.9 The following provisions apply to seniority and bidding procedures for the Line and Service Units.

Journeyman Seniority: (a) Journeyman seniority will be the only seniority recognized for bidding Journeyman Lineman, Serviceman, Foreman, Line Construction General Foreman, and Heavy Crew Foreman, Crew Coordinator, Line Inspector, Lineman Training Coordinator, Assistant Lineman Training Coordinator, JIC Underground Services classification openings. Helper Seniority (a) Employees in the Entry Helper classification who are awarded and accept a Line Helper bid will be given up to a maximum of twelve (12) months credit towards the Line Helper pay progression level. If the employee has less than twelve (12) months’ time at the Entry Helper classification, such employee will be given day for day credit towards the next pay level. (b) A Helper is defined as anyone working as a Line Helper, Pre-Apprentice Helper, Lead Toolman, Toolman, Major Equipment & Yard Lead, Major Equipment & Yard Operator, Equipment Operator, Crew Restoration Lead, Assistant Crew Restoration Lead, Equipment & Driver Trainer, Line Clearance Notifier, Tree Trimmer, Lead Tree Trimmer or Entry Helper and this terminology will be used for bidding and curtailment of employment purposes only.

CBA Amendment No. 14 pg. 1 132/218 Resolution No. _____ Exhibit A Page No. 2 of 6 (c) Helper seniority will be the only seniority recognized for bidding Line Helper, Pre-Apprentice Helper, Lead Toolman, Toolman, Major Equipment & Yard Lead, Major Equipment & Yard Operator, Equipment Operator, Crew Restoration Lead, Assistant Crew Restoration Lead, Equipment & Driver Trainer, Line Clearance Notifier, Tree Trimmer, Lead Tree Trimmer or Entry Helper classification openings. (d) All Line Helpers will be required to take specialized training to prepare them to work as Equipment Operator. This training will occur during the Line Helper’s third year. Training will be provided based on Line Helper seniority. (i) Each Line Helper would receive a total of six (6) months of backhoe training within a 12-month time period, with alternating two (2) months in training and two (2) months at their original headquarters. When assigned back to their original headquarters, Line Helpers would be primarily assigned to work with overhead crews to gain additional overhead experience. (ii) No more than two (2) Line Helpers may be in training at a time on alternating schedules to minimize the impact to the trainers, crews, and loss of a Line Helper at each headquarters. The District may include more than two (2) Line Helpers in training at its sole discretion. (iii) Line Helpers in training may not take daily upgrades at their headquarters unless it is for five (5) or more days, nor may they be upgraded while in training. The parties’ intent is to minimize any shifting of Line Helpers during training cycles. (iv) Line Helpers will be notified of the date(s), time and place for Equipment Operator Testing. The District will post a notice thirty (30) calendar days in advance of the test with a copy of the notice mailed to IBEW, Local 77. (v) There will be one (1) opportunity per year for Line Helpers to take the Equipment Operator test. If there is a need to test outside candidates (off-the-street), all Line Helpers would be given an opportunity to test at that time. (e) Helper seniority will start at the date of hire and will become effective after serving the probationary period as outlined in Subsection 6.1.21 of this Agreement. When a successful bidder comes from outside the Line Unit, his/her seniority date will commence upon filling the position bid.

CBA Amendment No. 14 pg. 2 133/218 Resolution No. _____ Exhibit A Page No. 3 of 6 (f) In case of curtailment of employment (i.e. layoff or demotion), Helper seniority shall prevail.

2. A new Subsection 8.1.24 is added to Subsection 8.1 (Line Unit) of Article 8 (Special Working Rules By Units) to read as follows:

8.1.24 Line Construction General Foreman 8.1.24.1 The Line Construction General Foreman (GF) is required to periodically make unannounced job site visits after hours at a frequency determined by the Construction Superintendent or Distribution Services Manager. The GF is expected to respond when significant circumstances, as pre-determined by the Construction Superintendent or Distribution Services Manager, require the presence of the GF on site. The GF may take call outs as part of regular crew structure but will be placed at the bottom of the Journeyman classification call out lists. 8.1.24.2 The GF shift will begin thirty (30) minutes before the designated Core Hours of the assigned headquarters and will adjust with summer hours and shall be a nine (9) hour shift, including a thirty (30) minute unpaid lunch. When working this shift, the GF shall receive one-half (1/2) hour of overtime pay as set forth in Subsection 7.2.1.

8.1.24.3 When a GF vacancy occurs, the position will be posted per Section 6.2 and awarded per Subsections 6.2.5 and 6.2.7.

3. The Line Unit of Article 9 of the CBA is amended as follows to add the classification of Line Construction General Foreman (this new classification appears below in bold for visibility):

Wage Rate Wage Rate Wage Rate Increase of Increase of Increase of 3.00% 3.00% 3.00% UNIT % of Effective Effective Effective # indicates entry level Rate 4/1/2017 4/1/2018 4/1/2019

LINE UNIT Line Construction General Foreman 135.00% $00.00 $00.00 $69.17++++ Heavy Crew Foreman 117.5% $56.75 $58.46 $60.21 Crew Coordinator 117.50% $56.75 $58.46 $60.21 Line Foreman 112.50% $54.34 $55.97 $57.65 Line Inspector 117.50% $56.75 $58.46 $60.21 Lineman Training Coordinator 117.50% $56.75 $58.46 $60.21 Assistant Lineman Training Coordinator 112.50% $54.34 $55.97 $57.65 Journeyman-In-Charge/Underground Services **** 103.00% $49.75 $51.24 $52.78 Journeyman-In-Charge (upgrade only) 103.00% $49.75 $51.24 $52.78 Lineman (Journeyman rate) 100.00% $48.30 $49.75 $51.24 Restoration Crew Lead 112.50% $43.16 $44.45 $45.79 Assistant Restoration Crew Lead 102.00% $39.13 $40.30 $41.51

CBA Amendment No. 14 pg. 3 134/218 Resolution No. _____ Exhibit A Page No. 4 of 6

Lead Tree Trimmer N/A $39.87 $41.07 $45.51+++ Tree Trimmer (Trimmer rate) 100.00% $37.37 $38.49 $42.65+++ Equipment & Driver Trainer Level 1 ** 112.50% $43.16 $44.45 $45.79 Level 2 117.50% $45.07 $46.42 $47.82 Major Equipment & Yard Lead 117.50% $45.07 $46.42 $47.82 Major Equipment & Yard Operator 112.50% $43.16 $44.45 $45.79 Heavy Equipment Operator ++ 102.00% $39.13 $40.30 $41.51 Equipment Operator + 100.00% $38.36 $39.51 $40.70 Lead Toolman 105.00% $40.28 $41.49 $42.74 Toolman 1st 6 mos. 88.00% $33.76 $34.77 $35.82 2nd 6 mos. 92.00% $35.29 $36.35 $37.44 3rd 6 mos. 100.00% $38.36 $39.51 $40.70 Line Helper # 1st 6 mos. N/A $18.96 $19.53 $20.12 2nd 6 mos. N/A $21.45 $22.09 $22.75 3rd 6 mos. N/A $23.93 $24.65 $25.39 4th 6 mos. N/A $27.96 $28.80 $29.66 Line Helper "B" - Next 12 mos. N/A $30.69 $31.61 $32.56 Line Helper "A" N/A $33.42 $34.42 $35.45 Line Helper/Pre-Apprentice *** 1st 6 mos. N/A $18.96 $19.53 $20.12 2nd 6 mos. N/A $21.45 $22.09 $22.75 3rd 6mos. N/A $23.93 $24.65 $25.39 4th 6 mos. N/A $27.96 $28.80 $29.66 Next 12 mos. N/A $30.69 $31.61 $32.56 Thereafter N/A $33.42 $34.42 $35.45 Line Apprentice 1st 1000 hrs. 74.00% $35.74 $36.82 $37.92 2nd 1000 hrs. 77.00% $37.19 $38.31 $39.45 3rd 1000 hrs. 80.00% $38.64 $39.80 $40.99 4th 1000 hrs. 84.50% $40.81 $42.04 $43.30 5th 1000 hrs. 88.00% $42.50 $43.78 $45.09 6th 1000 hrs. 91.00% $43.95 $45.27 $46.63 7th 1000 hrs. 95.00% $45.89 $47.26 $48.68 Entry Helper # 1st 6 mos. N/A $18.96 $19.53 $20.12 Thereafter N/A $21.45 $22.09 $22.75 Apprentice Tree Trimmer 1st 1000 hrs. 65.00% $24.29 $25.02 $25.77 2nd 1000 hrs. 75.00% $28.03 $28.87 $29.73 3rd 1000 hrs. 80.00% $29.90 $30.79 $31.71 4th 1000 hrs. 90.00% $33.63 $34.64 $35.68 Line Clearance Notifier Level I N/A $23.97 $24.69 $25.43 Line Clearance Notifier Level II N/A $29.31 $30.19 $31.10

CBA Amendment No. 14 pg. 4 135/218 Resolution No. _____ Exhibit A Page No. 5 of 6

Line Clearance Notifier Level III - 1st 24 mos N/A $33.31 $34.31 $35.34 Line Clearance Notifier Level IV / Arborist - Thereafter N/A $34.96 $36.01 $37.09

* Two-person crew, one employee will be Journeyman-In-Charge. ** Not a full-time position. Used for relief and assistance. *** In determining step placement, credit will be given for Line Helper and Equip. Op. time. Employees (other than Line Helpers & Equip. Ops.) with two years District experience will receive 2nd Step wages and with three years’ experience will receive 3rd Step wages. **** Bid position + Equipment Operator is 100% rate for Crew Restoration Lead, Assistant Crew Restoration Lead, Equipment & Driving Trainer, Major Equip. & Yard Lead, Major Equip. & Yard Op., Heavy Equip. Op., Lead Toolman and Toolman. ++ Heavy Equipment Op. Classification to be eliminated when position is vacated by current incumbents. +++ This wage rate is effective September 1, 2019. ++++ This wage rate is effective October 15, 2019.

4. This Amendment shall be effective on the date that its execution is authorized by the District Board of Commissioners.

5. Except as amended herein, all other terms, provisions and conditions of the current Collective Bargaining Agreement between the Parties remain in full force and effect.

The remainder of this page left deliberately blank. Signatures are on the following page.

CBA Amendment No. 14 pg. 5 136/218 Resolution No. _____ Exhibit A Page No. 6 of 6

PUBLIC UTILITY DISTRICT NO. 1 LOCAL UNION NO. 77 OF THE OF SNOHOMISH COUNTY INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS

______John Haarlow, Rex Habner, CEO/General Manager Business Manager

Date: Date:

Bob Oberstein, Nichole Reedy, Labor Relations Manager Senior Assistant Business Manager

Date: Date:

CBA Amendment No. 14 pg. 6 137/218

BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 5A

TITLE

Open the 2020 Budget Hearing

SUBMITTED FOR: Public Hearing

Finance Division Sarah Bond 8448 Department Contact Extension

Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

Governance Process, Board Job Description: GP-3(4) … a non-delegable, statutorily assigned Board duty as defined under RCW 54.16.080 … budget.

Staff will present an introduction to the Electric, Generation and Water system budgets on October 7, 2019. Additional presentations will be prepared for the Public Hearings on November 5, 2019, and November 19, 2019. Budget adoption is scheduled for the Board’s consideration on December 17, 2019.

List Attachments: 2020 Proposed Budget Introduction Presentation 2020 Proposed Budget Book

138/218 2020 Public Budget Hearing October 7, 2019

Presented by Sarah Bond, Budget139/218 and Financial Planning Manager Development of the 2020 Proposed Budget is a Company-Wide, Year-Long Effort

January February March April

Budget Office Budget Office works • Retail Load and Budget Office reviews prior year with CFO, CEO and Power Supply prepares materials 2 fiscal results to begin budget coordinators forecasts developed and instructions for development of 2020 to strategize and • 7 Year D&E Capital the budget budget assumptions prepare for the project planning development budget process begins process 0 May June July August

Managers and budget Budget office AGMs and Managers The Budget is coordinators prepare reviews submissions meet with the CEO deliberated with the zero based budgets and prepares the and CFO to present Leadership Team and 1 which are reviewed preliminary budget and discuss their finalized in conjunction by AGM’s for review budget requests with a sustainable 5- year financial forecast 9 September October November December The Proposed Introduction to The Proposed Budget • Budget revisions Budget is finalized Proposed Budget is presented in detail are considered and the proposed presented to the over two budget book is Board Commission • The Final Budget is prepared Meetings submitted for adoption 140/218 2020 Proposed Budget • October 7, 2019 Page 2 2 The 2020 Snohomish County PUD Proposed Budget At-a-Glance

Electric System Generation System Water System Number of Budget Departments 103 7 1 Number of Employees (FTEs) 1,085 33 28 Total Operating Revenues $663 M $25 M $13 M Operating & Maintenance $186 M $10 M $6 M Capital Expenditures $112 M $3 M $10 M Total Operating Budget $642 M $16 M $13 M

141/218 2020 Proposed Budget • October 7, 2019 Page 3 3 The 2020 Proposed Budget Supports the Strategic Priorities

 Serving our Customers  Safety  Communications and Engagement  Leadership  Value  Our People  Our Identity Customer Service ($13.6 M) District-Wide Education and Training ($1.4 M) Energy Control Center ($5.4 M) Safety and Line Training Program ($2.0 M) Tree Trimming Program ($6.2 M) Leadership Development Program ($188K) Low Income Discount Programs ($8 M)

Continuous Improvement, Business Readiness and Training ($630K)  Financial Processes  Resource Planning  Cost Management  Operations  Stability  Stewardship

Treasury and Risk Management ($3.6M) Power Supply Depatment ($1.0 M) General Accounting ($3.2 M) System Planning & Protection ($2.9 M) Budget and Financial Planning ($264K) Energy Efficiency Program ($16.5 M) Rates and Economics ($750K) Information Technology Innovation and Improvements ($2.5 M)

142/218 2020 Proposed Budget • October 7, 2019 Page 4 4 The 2020 Proposed Budget Continues to Provide Community Benefits to our Customers

Energy Efficiency Funding for programs designed to help customers lower their PUD Bill

Some of the Districts payments to BPA are designated for Fish and Low-income discounts are Wildlife Recovery on provided by the PUD for the Columbia river qualifying low-income customers

143/218 2020 Proposed Budget • October 7, 2019 Page 5 5 The 2020 Budget Provides Funding to Maintain Reliability in a Large and Growing County

 97 Substations which need to be  358,000 Active Meters which engineered, built and maintained require support from Customer Service, Customer Accounting, Meter  95,547 Transformers which need to be Reading and Metering Departments regularly maintained or replaced  613 Vehicles and Equipment requiring fuel, maintenance and  3,600 New Customer Connections replacements which can require engineering, new plats and line extensions  380 Miles of Water Pipelines to maintain, upgrade or replace  5 Hydroelectric Plants which require maintenance and  131,587 Wood and Metal Poles to upgrades inspect, maintain, and replace  6,208 Miles of Distribution and 327 Miles of Transmission Lines which need to be regularly maintained or replaced and require vegetation management

144/218 2020 Proposed Budget • October 7, 2019 Page 6 6 Highlights of the 2020 Proposed Budget – Electric System

145/218 2020 Proposed Budget • October 7, 2019 Page 7 7 Despite Declining Loads, the 2020 Proposed Budget does not Include a General Rate Increase

2020 2019 Proposed Budget Budget Operating Revenues ($000's) Retail Sales $ 622,353 $ 602,725 Wholesale Sales 29,119 32,281 Other Operating Revenues 27,395 28,568 Total Operating Revenues $ 678,868 $ 663,574

Energy Retail Loads (MWh) 7,000 Energy consumption has 6,900 6,800 declined over the last 10 6,700 years and is anticipated to 6,600 continue to decline. 6,500 6,400

THOUSANDS 6,300 Despite this decline, staff 6,200 have worked hard to 6,100 6,000 maintain current rates whenever possible.

146/218 2020 Proposed Budget • October 7, 2019 Page 8 8 2020 Electric System Operating Expenditures are 10% Below 2019 Budget Levels

2020 2019 Proposed Budget Budget Operating Expenses ($000's) Purchased Power $ 335,794 313,357 Transmission & Ancillary Services 56,762 58,681 Operating & Maintenance Expenses 184,610 185,932 Taxes 37,983 36,956 Depreciation 50,006 47,683 Total Operating Expenses $ 665,155 $ 642,609

Purchased Power expenditures are lower due to decreasing BPA costs and a substantial reduction in debt service payments related to the Jackson Hydro Plant

Transmission and Ancillary Services expenditures reflect adopted rate changes from BPA

Operations and Maintenance (O&M) are less than one percent higher than the 2019 Budget reflecting current programmatic levels

147/218 2020 Proposed Budget • October 7, 2019 Page 9 9 2020 District Investment in Capital Infrastructure Projects is Higher than the 2019 Budget 2020 Proposed 2019 Budget Capital Expenditures ($000’s) Budget $ 92,813 $ $111,503 Some 2020 Capital Project Highlights include… Distribution System Infrastructure – Major electric distribution infrastructure projects include construction improvements at the East Stanwood Substation, the Swamp Creek 115kV Switching Station as well as continued investments and the wood pole and underground cable replacement programs. Total funding for all Distribution System Infrastructure projects is $49 million.

North County Office Design and Development The 2020 Proposed Budget includes $10.5 million for design and construction for replacement of the North County local office including sitework for the CETC (Community Education Technology Center.)

Vehicles and Equipment – The 2020 Proposed Budget includes $6.5 Million for its new and replacement vehicles for a fleet of 613. 148/218 2020 Proposed Budget • October 7, 2019 Page 10 10 Highlights of the 2020 Proposed Budget – Generation System

149/218 2020 Proposed Budget • October 7, 2019 Page 11 11 2020 Proposed Generation Energy Sales Reflect Substantial Reduction in Debt Payments

2020 2019 Proposed Budget Budget Operating Revenues Energy Sales $ 42,169 $ 25,358 Other Operating Revenues 140 - Total Operating Revenues $ 42,309 $ 25,358

All Generation System cash expenditures, which include Operating and Maintenance, Taxes, Capital, and Debt Service payments are purchased by the Electric system in exchange for the power produced by those projects.

At the end of 2019, the District will substantially pay off the debt for the Jackson Construction Bonds which will reduce the cost of the Generation System.

150/218 2020 Proposed Budget • October 7, 2019 Page 12 12 2020 Proposed Generation Operating Expenditures Reflect the Cost of the Jackson Shut-Down in 2020

2020 2019 Proposed Budget Budget Operating Expenses Operating & Maintenance Expenses $ 6,965 $ 10,076 Taxes 98 95 Depreciation 5,416 5,524 Total Operating Expenses $ 12,479 $ 15,695

The 2020 Proposed budget for Jackson includes a one-time request for funds for major maintenance on the Jackson Plant, in the form of complete shutdown of the Project for 2 weeks. This shutdown will include: • Draining the 8-mile power tunnel and penstock, • Inspecting the tunnel and performing repairs as required, • Inspecting the new water temperature conditioning tunnel addit, • Rebuilding large leaking valves inside the Powerhouse, • Performing inspections and maintenance on equipment, and • Installing a new meter in the Return Pipeline

151/218 2020 Proposed Budget • October 7, 2019 Page 13 13 2020 Proposed Generation Capital Funding Levels are Slightly Higher than 2019

2020 2019 Proposed Budget Budget Capital Expenditures ($000's) $ 2,327 $ 3,030

Roof Replacement Jackson Replace Culmback Dam Control Powerhouse CO2 Fire Building – Protection System – The 2020 Proposed The 2020 Proposed Budget includes Budget includes $176,000 for $466,000 to update the replacement and current fire suppression upgrade to a metal, fire system with a more up- resistant roof to-date and safer system

Woods Creek Forebay Sediment Control Wall – The 2020 Proposed Budget includes $68,000 for permitting and design of a wall and flushing gate to manage sediment. This improvement will minimize summer shutdown work to remove the sediment

152/218 2020 Proposed Budget • October 7, 2019 Page 14 14 Highlights of the 2020 Proposed Budget – Water System

153/218 2020 Proposed Budget • October 7, 2019 Page 15 15 2020 Water Rates have been Budgeted to Offset Increases in City of Everett Water Costs

2020 2019 Proposed Budget City of Everett Wholesale Rate Budget ($/ccf) Operating Revenues ($000’s) $1.60

Water Retail Sales $ 12,160 $ 12,515 $1.40 Water Wholesale Sales 425 477 $1.20 Other Operating Revenues 355 363 $1.00 Total Operating Revenues $ 12,940 $ 13,355 $0.80 Operating Expenses

Wholesale ($/ccf) Rate Wholesale $0.60 Purchased Water $ 2,881 $ 3,240 $0.40 Operating & Maintenance 5,401 5,924 2008 2010 2012 2014 2016 2018 2020 Taxes 652 672 Year Depreciation 2,965 3,024 Total Operating Expenses $ 11,899 $ 12,861

The majority of water sold by the PUD is purchased from the City of Everett and their rates will increase by 3.5% in 2020. The 2020 Proposed Budget includes a 2% General rate increase effective January 1, 2020 to help offset this water cost increase. This increase is subject to further review and Board Approval

154/218 2020 Proposed Budget • October 7, 2019 Page 16 16 2020 Water Proposed Capital Project Expenditures Reflect Improvements on the Warm Beach System 2020 Proposed 2019 Budget Budget Capital Expenditures ($000’s) $ 5,825 $ 9,664

Walker Hill Reservoir Improvement and Recoat - The 2020 Budget includes $1.0 M to repair and recoat the Walker Hill Reservoir in Lake Stevens.

Warm Beach Improvements – In 2018, the Water System completed the acquisition of the assets of the Warm Beach Water System which serves about 600 customers. The 2020 Proposed Budget includes $5 M in funding for Capital improvements for the Warm Beach Water system. The 2020 Proposed budget also includes funding from loans and grants from the Drinking Water State Revolving Fund (DWSRF) to help offset the capital costs of these improvements.

155/218 2020 Proposed Budget • October 7, 2019 Page 17 17 2020 Budget Remaining Public Hearing Schedule

November 5, 2019 • Water System Proposed Budget • Electric System Proposed Budget – Operating Revenues

November 19, 2019 • Generation System Proposed Budget • Electric System Proposed Budget – Operating Expenditures • Electric System 5 Year Forecast

December 3, 2019 • Present and discuss any suggested modifications to the 2020 Proposed Budget

December 17, 2019 • Adoption of the 2020 Budget

156/218 2020 Proposed Budget • October 7, 2019 Page 18 18 Energizing Life in Our Communities

2020 PROPOSED BUDGET BOARD OF COMMISSIONERS: SIDNEY “SID” LOGAN157/218 • TANYA “TONI” OLSON • REBECCA WOLFE 158/218 Snohomish County PUD | 2020 PROPOSED BUDGET SNOHOMISH COUNTY PUD | 2020 PROPOSED BUDGET TABLE OF CONTENTS

CEO/General Manager’s Message...... 1 Information Technology Services (includes CIO, ITS Administration, Enterprise Applications, Program and Project Management, Quality Assurance, Cybersecurity, IT Infrastructure & Operations, Enterprise Architecture, Data ELECTRIC SYSTEM...... 5 Management, Software Development & Integration, IT Solution Consulting, End-user Support, Exhibit 1 ‑ Operating and Other Revenue...... 14 and Analytics & Information Management) ...... 28 Exhibit 2 ‑ Purchased Power, Transmission and Ancillary Services...... 15 Power and Transmission Management Exhibit 3 ‑ Operating and Maintenance Expenses – By Cost Center...... 16 (includes AGM Power & Transmission, Power Scheduling; Power Supply; Regional Transmission & Compliance and Rates and Economics)...... 29 Exhibit 4 ‑ Operating Expenses By Cost Element...... 19 Exhibit 5 ‑ Capital Expenditures...... 20 Distribution and Engineering (includes AGM Distribution & Engineering, D&E Business Operations, Asset Management, DIVISIONS Local Offices, Everett Region, Everett Region Support, Environmental Affairs, Real Estate, Transportation, Construction Services & Line Training, Vegetation Management, Energy Control Administration Center, Inspection / Scheduling, Apprenticeship Program, Distribution Engineering, Transmission Engineering, GIS / Maps & Records / Drafting, Operational Technology Engineering, System (includes Commission, Office of the CEO/General Manager, Safety, and Govt. Relations)...... 21 Planning & Protection, Everett Engineering, Plat Development, Substation Engineering, Substation Corporate Communications Construction, Metering, Telecommunications)...... 30 (includes Corporate Communications, Print Shop, Mail Center, and Business Readiness & Training)...... 22 Other Costs...... 31 Legal Services GENERATION SYSTEM...... 33 (includes General Counsel, District Information Governance)...... 23 Exhibit 6 – Generation System Combined...... 35 Finance (includes CFO, Budget and Financial Planning, Finance Systems Support, Treasury & Risk • Jackson Hydro Project and Other Generation...... 36 Management, Meter Reading, Revenue Cycle Development, Customer Accounting, General • Renewable Generation, Youngs Creek Hydro Project and Accounting, Contracts & Purchasing, and Warehouse)...... 24 Woods Creek Hydro Project...... 37 Customer and Energy Services • Hancock Creek Hydro Project, Calligan Creek Hydro Project and (includes AGM Customer and Energy Services, Customer Experience, Business Operations, Capital Expenditures...... 38 Residential & Small Commercial, Strategic Segments, Senior Manager Energy Services, and Customer Systems Technology)...... 25 WATER SYSTEM...... 41 Facilities and Security Exhibit 7 ‑ Operating and Other Revenue...... 43 (includes Grounds & Engineering, Custodial Services, Facilities Maintenance, Facilities Planning, Security & Business Continuity, and Facilities Administration)...... 26 Exhibit 8 ‑ Operating Expenses by Cost Element...... 44 Exhibit 9 ‑ Capital Expenditures...... 45 Human Resources and Benefits...... 27

159/218 Snohomish County PUD | 2020 PROPOSED BUDGET 160/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 PROPOSED BUDGET

he 2020 Proposed Budget for Snohomish Electric System operating budget and capital expenditures: County PUD reflects the efforts of lead‑ 4 Rate adjustments – There are no planned rate increases in the 2020 proposed ers, project leads, planners, and staff from T Electric System budget. across the organization. It is driven by our values and a set of Strategic Priorities refreshed in 2019 4 Retail power consumption – Since 2008, consumption of power in the PUD’s and represents a prudent strategy of reliability, service territory has generally been declining. Retail loads for the 2020 Proposed modernization, and infrastructure investment in Budget are expected to be 1.5% lower than 2019 budgeted levels. the future. With the 2020 Proposed Budget, the 4 New connections – The estimate for 2020 Proposed Budget new premise con‑ PUD continues to focus on investing in the qual‑ nections is 3,600, which is similar to the assumption used in the 2019 Budget. ity of its people, its commitment to its customers, 4 Wholesale market power sales – Expected to increase $3.1 million from 2019 preparing for the needs of the future, and respon‑ levels, a reflection of lower expected market prices offset by more excess power sible cost and fiscal management. available to sell. 2020 PROPOSED BUDGET KEY FEATURES 4 System reliability investments – The 2020 proposed capital plan includes sev‑ The 2020 Proposed Budget and expenditure plan provides funding to develop, main‑ eral major projects aimed at increasing reliability for customers – major projects tain, and enhance the PUD’s Electric, Generation, and Water systems and continue include the East Stanwood Substation, the Stimson-Stanwood 115kV Rebuild, to provide excellent service and enhance reliability to our customers while pursuing and the Swamp Creek 115kV Switching Station as well as continuation of the cost-effective conservation. The 2020 proposed operating budget for the Electric wood pole and underground cable replacement programs. System is $644 million, a decrease of $23 million from 2019. The expenditure plan 4 Arlington Microgrid project includes $112 million in capital expenditures; the majority of those expenditures are – Includes $6.0 million for the construction of for system reliability improvements and upgrades across the PUD’s territory. the Arlington Microgrid Project. Microgrid expenditures are expected to be offset by $3.5 million of state grants over the project period. The 2020 proposed operating budget for the Generation System is $15.7 million, 4 Arlington North County Community Office – Includes $10.6 million for the $3.2 million higher than 2019. The expenditure plan includes $3.0 million in capital design of a new community office located in Arlington and related site work. expenditures for construction and improvements, primarily at the Jackson Hydro‑ 4 Energy-efficiency programs – The PUD continues investment in energy-effi‑ electric Project. The Water System’s 2020 proposed operating budget is approxi‑ ciency programs with $16.5 million in planned expenditures. These expenditures mately $12.9 million, roughly $1.0 higher than the 2019 operating budget. The ex‑ are reported as part of Operating and Maintenance costs. penditure plan for the Water system includes $9.7 million in capital improvements, the majority of which are for Warm Beach upgrades and main replacement projects. The following highlights some of the major components of the 2020 proposed

Snohomish County PUD | 2020 PROPOSED BUDGET 161/218 1. COST MANAGEMENT IN THE 2020 PROPOSED BUDGET PUBLIC BENEFITS Snohomish County and Camano Island continue to experience population growth, The PUD remains committed to the benefits of public power for its customers and yet the PUD has experienced flat or declining electric loads since 2008 due to the fulfilling its mission while also responding to the needs of the community. The 2020 impacts of energy-efficiency measures, climate change, solar power installations, Proposed Budget includes: and other factors. Lower power sales volumes, aging power distribution infrastruc‑ m Energy-efficiency programs including residential lighting discounts, incentives ture, industry demands and initiatives, and inflationary factors, have led to pressure for home weatherization and heating improvements, efficient appliances and on PUD budgets and rates. In order to address this pressure, the Responsible Cost home products, and comprehensive retrofits for multifamily housing efficiency. and Fiscal Management portion of the PUD’s Strategic Priorities features cost Incentives also encourage businesses throughout the County to save energy by management as an important component, and this is reflected in the 2020 Proposed making efficiency upgrades to lighting, HVAC, motors and process improve‑ Budget development process. The 2020 Proposed Budget was prepared using target- ments. Significant educational efforts are made to increase customer awareness based budgeting principles, and staff are continually challenged to review their of the benefits of energy efficiency for all ratepayers. expenditures and processes to ensure that the cost management opportunities are m evaluated. Several cost savings categories are evaluated and tracked, including: Fish and wildlife enhancement effortsthat are featured at the PUD’s hydroelec‑ tric projects, including Jackson, Youngs Creek, Hancock Creek, Calligan Creek o Continuous improvement opportunities and Woods Creek Hydro projects. In addition, approximately one-third of the o Actively bidding contracts and reviewing material pricing PUD’s payments for power to BPA, approximately $81 million, fund fish and wildlife recovery on the Columbia River; o Utilizing internal talent rather than contractors m Income-qualified assistance estimated at about $8.5 million is provided by the o Utilizing new or alternative technology/tools PUD to income-qualified customers to prevent disconnection and maintain o Reevaluating absences and capturing attrition comfort in their homes by including a tiered rate discount, direct emergency relief funds and energy-efficiency programs for the entire home; o Suspending or restructuring under-utilized contracts/services m Public safety information programs are communicated in a variety of ways, o Actively pursuing grants or other financial opportunities including the PUD website, customer newsletters, school programs, newspaper COMPLIANCE WITH COMMISSION POLICY ads, and other means; Pursuant to Commission Policy, specifically EL-4 that defines the executive policies m Trained field employees who live in the communities, keep a watchful eye for for financial planning and budgeting, the 2020 Proposed Budget: customers who may be at risk and provide service during major storm and emer‑ w Includes a credible projection of revenues and expenditures; gency outage conditions; m Energy education programs serving local area schools with classroom presenta‑ w Maintains cash reserves at levels consistent with Commission policy established tions, student workshops, and electrical safety demonstrations; in Resolutions 5853, 5854 and 5855; m Environmental sensitivity demonstrated in the PUD’s power resource develop‑ w Provides for 2020 proposed Electric System debt service coverage greater than ment acquisition and construction practices; the Commission’s 1.75x minimum target; and m The Helping Hands program, funded by employees, which assists income- w Planned use of bond proceeds does not exceed the Commission’s target of 40% qualified seniors with their PUD bills; of non-generation electric system capital.

2. 162/218 Snohomish County PUD | 2020 PROPOSED BUDGET m TheProject PRIDE program, funded by customer donations, which provides Reimbursement ($100,000), Recruiting Program ($245,000), Government financial assistance to income-qualified families for their PUD electric bills; Relations ($833,000), Customer Service ($13.6 million), Corporate Commu‑ m Quality jobs and local employment provided by the customer-owned PUD; nications ($2.3 million) m Support to Social Service Agency and LIHEAP (Energy Assistance) programs, Customer Experience which provides customers and agencies easier access to customers’ data at the u Related Budget Elements: Customer Service ($13.6 million); Local Office cus‑ time assistance is being provided and coordinates pledges to pay; and tomer service ($1.2 million), Customer Self-Service, Electronic Bill Payment & m Tax-exempt financing for capital projects that helps lower the cost of borrowing Presentment ($1.6 million), Corporate Communications ($2.3 million), Energy for the construction of long-term infrastructure assets to maintain stable rates. Control Center ($5.4 million), Tree Trimming Program ($6.2 million), Infor‑ mation Technology Services ($8.3 million), Government Relations Program STRATEGIC PRIORITIES – 2020 PROPOSED BUDGET ELEMENTS ($833,000), Data Strategy & Analytics ($1.8 million), Energy Services Accounts The 2020 Proposed Budget supports the mission, strategic priorities and values of ($2.9 million) the PUD. The 2020 Proposed Budget upholds the values of the plan. The Board of Commissioners and Leadership Team are taking actions today to build a strong Delivering Now and For the Future base of sustainable knowledge and physical assets. This will provide a foundation u Related Budget Elements: from which our utility can prosper and meet the needs of our customers, while rec‑ Power Supply ($1.0 million), Power Scheduling ($2.7 ognizing our environmental stewardship role and the social and economic issues million), Wood and Cable Replacement Programs ($9.5 million); Work and of our community. Asset Management ($1.1 million); Facilities Maintenance ($2.7 million); Local Office Operations ($19.9 million); Water System Main Replacements ($4.5 mil‑ The Strategic Priorities are designed to support the PUD’s mission of providing lion); System Innovations, Upgrades, and Continuous Improvement in support quality water and electric energy products and services. Providing power and water of the PUD’s Strategic Initiatives ($3.5 million), Energy-Efficiency Programs is our core business, but the PUD is more than simply a commodity supplier. We ($16.5 million), Income-Qualified Assistance Program ($8 million) endeavor to increase the value of these products by providing outstanding service, Responsible Cost and Fiscal Management information, customer convenience and safety. u Related Budget Elements: Financial Systems Support ($677,000), General Ac‑ The plan identifies five major areas of strategic focus with underlying strategic ‑pri counting ($3.2 million), Budget and Financial Planning ($264,000), Continuous orities, and the discussion has identified a sample of related 2020 Proposed Budget Improvement Training Program ($110,000), Cost Management Recognition elements that support those priorities as follows: ($100,000), Rates and Economics ($750,000), Treasury and Risk Management ($3.6 million), System Planning and Protection ($2.9 million) Team PUD u Related Budget Elements: Safety Program ($1.2 million), Safety Training ($802,000), Leadership Development Training ($188,000) Apprenticeship Program ($819,000), Training Programs ($356,800), Continuous Improvement Training ($115,000), Business Readiness and Training ($630,000), Core Em‑ ployee Training ($130,000), Employee Recognition programs($43,000),Tuition

Snohomish County PUD | 2020 PROPOSED BUDGET 163/218 3. 4. 164/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 PROPOSED BUDGET

he Electric System operates primarily to provide electrical service to ap‑ ASSUMPTIONS proximately 350,000 customers in Snohomish County and Camano Island. The 2020 Proposed Budget reflects staff’s electric load forecast based on an eco‑ TThe Electric System purchases the majority of the electrical energy it sells nomic forecast for Snohomish County and Camano Island and a power resource to customers from the Bonneville Power Administration (BPA). The Electric Sys‑ forecast that includes staff’s best estimates of owned and contracted resource out‑ tem consists of the PUD’s transmission lines, substations, distribution lines, trans‑ put as well as wholesale market prices. The 2020 Proposed Budget for the Electric formers, meters, and general plant. It also includes customer service, engineering System is based on the following assumptions for revenues, cash reserve transfers, and design, energy-efficiency services, and administrative functions that support power resources, and other factors: the construction, operations and maintenance of the transmission and distribution system. Revenue Assumptions u Load Forecast PUD retail power consumption is expected to be 1.5% lower than loads forecast in the 2019 Budget.

u New Connections The 2020 Proposed Budget reflects projected new connections of 3,600. The 2019 Budget assumed a similar level of new connections. Revenues from customer reim‑ bursed work are projected at $26.7 million for the 2020 Proposed Budget.

u Energy Rates The 2020 Proposed Budget does not include any planned rate increases.

u Wholesale Revenues The 2020 Proposed Budget includes $32.2 million in wholesale energy revenues, an increase from 2019 levels. Wholesale revenues reflect wholesale market sales resulting from balancing owned and purchased resources with load. Power available for wholesale market sales comes from BPA’s Slice product, as well as other power agreements, and its availability is budgeted based on Columbia River Basin water levels at approximately 87% of average. Based on current price forecasts, the average

Snohomish County PUD | 2020 PROPOSED BUDGET 165/218 5. wholesale price for revenues from system load balancing used in the 2020 Proposed 84% of the PUD’s 2020 power purchases and 75% of the PUD’s total power and Budget is $18 per MWh. transmission costs. u Cash Reserves g Block Product – Forty-two percent of the PUD’s energy contract with BPA The PUD maintains reserve accounts categorized as follows: comes from the Block product. The Block product provides the PUD with power in flat monthly amounts that average 2.9 million MWh over calendar g Operating Reserve, which represents approximately 120 days of non-power year 2020. The amount of energy the PUD receives each month is based on budgeted expenses in order to provide adequate working capital during un‑ the PUD’s historical monthly load shape. In 2020, the total annual cost of foreseen events such as natural disasters, economic downturns, customer the Block product are forecasted at $104.6 million. loss, and revenue interruption; the Operating Reserve currently exceeds g minimum levels, and the 2020 Proposed Budget plans to use $28 million of Slice Product – Fifty-eight percent of the PUD’s energy contract with BPA this reserve in 2020. comes from the Slice product. The Slice product is delivered in variable amounts that reflect the actual output of the Federal Base Power System, g Contingency Reserve, which hedges against risks associated with wholesale which can vary from year to year based on regional hydro conditions. Be‑ market exposure resulting from power supply portfolio imbalances created cause the annual amount is variable and difficult to forecast, the PUD takes by such elements as weather, contract purchase/product variability, fuel a conservative budget position that assumes the actual production will be prices, load variances or resource failure. This reserve also provides for self- below average. Specifically, the PUD assumes for budget purposes that Slice insured retentions and insurance carrier deductibles. These reserve funds production will be in the 35th percentile of simulated historical produc‑ are expected to remain intact during 2020. tion. Slice provides the PUD with the ability to follow its customer loads by g Project Reserve, which represents funds expected to be used for capital and storing and dispatching energy on an hourly basis within the contractual other projects. These funds are generally the proceeds of bond issues. The constraints and physical limits of the Federal Base Power System. Under the PUD has no bond construction funds available at the end of 2019. Slice product, the PUD takes responsibility for managing its portion of the Federal Base Power System and assumes the inherent risks. If snowpack and g Benefit Reserves, which are being accrued over time to fund the actuarial water conditions are above average in the region, the energy output is also cost of post-employment benefit obligations. The 2020 Proposed Budget above average. If snowpack and water conditions are low, the PUD’s energy provides $2 million to be added to this reserve supply is correspondingly reduced. As a purchaser of the Slice product, the g Sinking Reserves are utilized to set aside funds on a monthly basis for annual PUD has an obligation to pay its pro-rata share of BPA’s actual operating debt service and privilege tax payments. costs. The PUD’s share of the Slice of the Federal Base Power System is ap‑ g Bond Debt Service Reserves are held pursuant to bond covenants for future proximately 5.4%. The majority of the PUD’s short-term wholesale market debt payments. sales are from surplus Slice energy, which varies with the seasonal and daily variations in the Slice product’s output. The 2020 Proposed Budget Purchased Power and Transmission Assumptions estimates receiving 4.1 million MWh from BPA’s slice product at a cost of $129.2 million. u Bonneville Power Administration (BPA) The 2020 Proposed Budget reflects a long-term power purchase agreement effec‑ g Slice True-Up Adjustment – After the end of each fiscal year, BPA “trues tive October 1, 2012, through September 30, 2028, for the purchase of up to 811 up” the difference between its actual costs and the budget for the fiscal year aMW through the Block and Slice products. The BPA power contract represents through the Slice True-Up Adjustment. The result can be a charge or credit.

6. 166/218 Snohomish County PUD | 2020 PROPOSED BUDGET The 2020 Proposed Budget assumes no adjustment since we cannot accu‑ 2012 through 2017. The PUD had initially elected to meet its I-937 renewables rately forecast whether or not there will be a charge or credit. target using the 4% financial cost cap method to capture the PUD’s investment in its long-term wind contracts but was not successful in advancing compliance g One-time BPA Charges – The 2020 Proposed Budget contains a surcharge under this method, primarily due to lack of clarity in how this methodology should for BPA Financial Reserves funding, which BPA is assessing its customers be implemented. In the 2020 Proposed Budget, the PUD anticipates it may need to bolster its financial reserve level. The PUD’s share of 2020 Financial Re‑ to purchase small quantities of Renewable Energy Credits (RECs) to supplement serves funding is estimated to be $1.9 million. the PUD’s existing renewables portfolio and most cost-effectively meet the target g Transmission and Ancillary Services – The PUD relies on long-term increase of 15% renewables in 2020. The 2020 Proposed Budget includes $266,000 transmission capacity from the BPA transmission network to transport its for forecasted REC purchases. power supply from the source of generation to the customers it serves. The PUD contracts with BPA for approximately 1,618 MW of firm point-to- u Renewable Power Purchases point capacity. The 2020 Proposed Budget includes $40.1 million for BPA In addition to the PUD’s owned resources, the utility has acquired eligible renew‑ transmission capacity and $18.5 million for ancillary services. able resources through long-term power supply contracts. These include: the White Creek Wind Agreement, the Wheat Field Wind Agreement, the Hay Canyon Wind u Jackson Hydroelectric Project Agreements, the Qualco Energy Corporation Small Renewable Generation Agree‑ The Electric System is expected to purchase 374,240 MWh of power from the Jack‑ ment, and the Hampton Lumber Mill –Darrington, WA Agreement. The PUD has son Hydroelectric Project, a component of the PUD’s Generation System, at a cost also recognized the contributions of solar generation from its new Community Solar of $11.7 million in the 2020 Proposed Budget. This represents 4% of the Electric project in Arlington and the RECs associated with the PUD’s long-term Bonneville System’s anticipated 2020 proposed power resources. power contract. The 2020 Proposed Budget forecasts a total of 503,986 MWh from these contracts at a forecast total cost of $37.6 million. u Small Hydroelectric Projects The Generation System owns four small hydroelectric projects: the Woods Creek Other Assumptions Project and the Youngs Creek Project in Snohomish County and the Calligan Creek Project and the Hancock Creek Project in King County. The 2020 proposed u Full-time Equivalent Employees (FTEs) Generation System budget includes $6.8 million in purchased power expenditures The 2020 proposed Electric System budget includes 1,085 FTEs, no change from related to these projects. the 2019 Budget level. u Short-term Market Purchases The 2020 Proposed Budget includes 416,377 MWh, estimated to cost $13.8 mil‑ lion, for short-term market purchases anticipated to satisfy the PUD’s retail loads in excess of its firm resources to manage short-term load and resource variations. These costs are offset by wholesale power market sales. u Renewable Energy Credits (RECs) The PUD has used the target method of applying RECs from its long-term wind power supply contracts and incremental hydro from its existing power supply port‑ folio to comply with the annual I-937 renewables requirement for calendar years

Snohomish County PUD | 2020 PROPOSED BUDGET 167/218 7. COMPARATIVE ANALYSIS Operating Revenues Schedule 1 is a summary comparing the 2020 proposed Electric System budget Projected retail energy sales are $19.6 million lower in the 2020 Proposed Budget with 2019. due to expectations of lower customer consumption and lower rate adjustments.

Wholesale energy revenues are $32.3 million in the 2020 Proposed Budget, $3.1 Schedule 1 million higher than the 2019 Budget. This increase reflects a higher volume of excess ELECTRIC SYSTEM COMPARATIVE FINANCIAL DATA power and slightly lower market sales prices expected in 2020 Proposed Budget ($000’s) reflecting the current forward price forecast. 2020 2019 Proposed Budget Budget Other operating revenues are $28.5 million in the 2020 Proposed Budget, a $1.2 Operating Revenues million increase from 2019 levels. Other operating revenues include sales of the Energy Retail Sales $ 622,353 $ 602,725 PUD’s transmission capacity, BPA energy-efficiency program reimbursements, Energy Wholesale Sales 29,119 32,281 customer fees and other revenues. Other Operating Revenues 27,395 28,568 Total Operating Revenues $ 678,867 $ 663,574 Operating Expenses Operating Expense Total 2020 proposed operating expenditures of $642.6 million are $22.6 million Purchased Power $ 335,794 $ 313,357 lower than 2019. The relative amount of the expenditure categories are illustrated Transmission & Ancillary 56,762 58,681 in Chart A. Operations & Maintenance 184,610 185,932 Taxes 37,983 36,956 Depreciation Expense 50,006 47,683 Purchased power costs of $313.4 million are $22.4 mil‑ Total Operating Expenses $ 665,155 $ 642,609 lion lower than the 2019 Bud‑ Net Operating Income $ 13,712 $ 21,849 get. This decrease is primarily Other Income & Expense 14,137 15,502 the result of a debt payoff in the Interest Charges (17,099) (16,519) generation system. Generation Contributions 18,208 26,763 System costs are a component Net Income $ 28,958 $ 46,711 for purchased power for the Electric System. Cash Adjustments to Net Income Capital Expenditures $ (92,813) $(111,503) Transmission and ancillary Debt Service Principal (11,905) (10,375) Depreciation 50,006 47,683 costs of $58.7 million are Loan Repayments and Others (725) (1,165) $1.9 million higher than 2019 Budget levels due to BPA rate Estimated Changes in Reserves $ (26,479) $ (28,651) changes.

8. 168/218 Snohomish County PUD | 2020 PROPOSED BUDGET Operating and maintenance (O&M) expenditures in the 2020 Proposed Budget are ENERGY SALES $1.3 million, or 1% higher, than the level included in the 2019 Budget. Because the PUD uses a zero-based budgeting model, these variations reflect the current budget‑ Retail ary needs of the PUD and are not necessarily a carryover from the previous year. Retail energy sales included in the 2020 Proposed Budget are sales within the Some of the factors causing the year-to-year increase include an increase in the rate PUD’s service territory to residential, commercial and industrial customers. Sales for the PUD’s contribution to the Washington State Department of Retirement sys‑ to retail customers represent 95% of the Electric System’s total energy sales revenue. tems, a shift of some capital project costs to operating & maintenance (O&M) and Projected average rates for these categories are as follows: inflationary pressures on labor, material and services. O&M expenses also include Average Rates expenditures for energy-efficiency programs. The PUD’s energy-efficiency programs Residential 10.4¢ per kWh include energy-efficiency incentives, income-qualified weatherization and other Commercial 9.0¢ programs that provide opportunities for customers to reduce their energy bills. Industrial 7.0¢ Wholesale Budgeted taxes of $37 million are $1 million lower than 2019 reflecting lower retail The PUD also sells energy into the wholesale power market during periods when sales. Taxes include a 3.873% state excise tax and a 2.14% percent county privilege tax. the PUD’s owned and contracted resources don’t precisely match the PUD’s load. Wholesale energy sales for the 2020 Proposed Budget related to load and resource Estimated deprecation expenditures of $47.7 million are $2.3 million lower than balancing is estimated at $32.3 million. 2019. Depreciation is an estimate of the reduced value of the PUD’s fixed assets and are part of operating expenditures in the 2020 Proposed Budget. Chart B provides a breakdown of the Electric System’s energy sales components. Cash Adjustments to Net Income The 2020 Proposed Budget reflects a $18.7 million increase in capital expenditures from 2019 and is based on the current project schedules. Proposed budgeted capital expenditures for 2020 includes expansion, upgrades and maintenance of the electric distribution system infrastructure, including funding for line extension and plat work, distribution system line improvements and state requested relocation work. It also provides for facilities and information technology capital and vehicle and equipment replacements.

Debt service principal expenditures in the 2020 Proposed Budget are $10.4 million, reflective of scheduled debt payments on existing revenue bonds.

Snohomish County PUD | 2020 PROPOSED BUDGET 169/218 9. PURCHASED POWER OPERATING AND MAINTENANCE (O&M) EXPENDITURES The 2020 proposed purchased power budget reflects a strategy for the power supply Operating and maintenance (O&M) expenditures are designed to meet increas‑ that focuses on securing stable, reliable power at predictable prices while keeping ing customer service, system reliability and power quality expectations; maintain risk within acceptable levels. existing assets at appropriate operating levels in accordance with the industry stan‑ dards and practices; operate the electric system in a safe and effective manner; and The PUD continues to rely on its traditional sources of power: purchases from the maintain a trained and skilled workforce. The PUD continues to provide excellent Bonneville Power Administration (BPA) and the PUD’s hydroelectric projects: customer service at the lowest cost possible while managing the electric system Jackson, Youngs Creek, Woods Creek, Calligan Creek, and Hancock Creek. The growth and the increased maintenance requirements. PUD expects to receive 84% of its 2020 Proposed Budget power purchases from BPA consistent with the terms of Operating and maintenance expenses in the 2020 Proposed Budget are $185.9 mil‑ the BPA power supply agreement. It lion, which includes energy-efficiency programs. O&M expenditures account for 28% also receives power from long-term of total PUD operating expenditures. O&M expenditures included in the budget are contract purchases for renewable sufficient to maintain our customer responsiveness and system reliability. Exhibit energy from White Creek Wind, 3 (starting on page 16) provides detail for O&M expenditures by department, and Hay Canyon Wind, Wheat Field Exhibit 4 provides detail for O&M expenditures by cost element. In addition, the Wind, Hampton Lumber Mills, division summaries provide detail for O&M expenditures by cost category. Qualco and Packwood. In addi‑ tion, PUD power purchases include O&M expenditures include those costs incurred in: short-term and market purchases w operating and maintaining the electric distribution system to provide reliable necessary to balance energy de‑ service to our customers. This effort includes the regular maintenance of lines mand with power supply. and stations, response to customer outages, and tree trimming efforts; w providing effective customer service through the call center, local offices, ac‑ Chart C illustrates the PUD’s pur‑ count control and front-line operations, as well as executive account attention chased power included in the 2020 and effective communications; Proposed Budget in terms of MWh w maintaining an effective program that ensures the safety of employees in the purchased, while Chart D indicates performance of their duties; the relative cost of the different w providing the internal support needed to serve our customers effectively in areas power resources. Market purchases such as employee resources and safety, finance and accounting, material procure‑ made for load/resource balancing ment and management, and information technology; are included. w providing maintenance and upkeep of our facilities, vehicles, and equipment; w ensuring compliance with environmental and other government regulations; Note that while BPA provides w supporting the policy-making, regulatory and management oversight functions; 84% of the power purchases of the and maintaining an effective energy-efficiency program. PUD, it only makes up 75% of the w maintaining enterprise-wide systems and technology infrastructure in support total cost of purchased power. of PUD operations and customers.

10. 170/218 Snohomish County PUD | 2020 PROPOSED BUDGET ENERGY-EFFICIENCY PROGRAMS w Retail discounts on specialty LEDs, LEDs for hard-to-reach markets, fixtures, PUD conservation programs are designed so that all customers (residential, com‑ heat pump water heaters, smart thermostats and other high-efficiency appliances mercial, and industrial) have an opportunity to become more energy efficient. The and electronics; 2020 Proposed Budget includes continued enhancements to the energy-efficiency w Builder incentives for efficiency upgrades that exceed the levels set by building program portfolio designed to improve customer experience and meet the PUD’s code in residential new construction, single family, multifamily, and manufac‑ growing capacity needs. tured homes; w The PUD has allocated a proposed overall conservation budget of $16.5 million, Custom incentives to businesses for installing a wide variety of energy-efficient which includes $10.4 million in energy-efficiency program incentives and rebates. technologies at commercial and industrial customer sites; Revenue sources related to w Incentives for commercial building new construction projects; energy-efficiency through w Rebates for energy-efficient commercial lighting, networked or advanced light‑ BPA Energy Efficiency In‑ ing controls, kitchen equipment, HVAC, and other end-uses; centives (EEI) and conser‑ vation loan repayments will w Strategic energy management and coaching relationships with large commercial recover $8.78 million for a and industrial customers to identify process, behavioral, and capital energy sav‑ net cost to the PUD of $1.62 ings projects; and million for energy-efficiency w Pilot engagements with commercial customers and energy services companies incentives and rebates. focused on shifting process loads away from winter peak load and incentivizing high performance buildings. The PUD continues to ac‑ quire all cost-effective and The 2020 Proposed Budget also includes resources for: achievable energy-efficiency w resources in adherence with Advancing innovative program development and design; state legislation. The energy w Supporting a shift toward capacity benefits as a program outcome; conservation targets estab‑ w Providing information and promotion of programs via traditional channels, at lished for the 2020-21 biennium will be consistent with Washington State Indepen‑ events and home shows, and directly in customers’ homes; dence Act requirements and satisfy the PUD’s compliance obligations. w Enhancing outreach and education to more closely couple energy efficiency with Energy-efficiency programs for the 2020 Proposed Budget include: the PUD’s income-qualified customer assistance programs; w Incentives for residential insulation, high-efficiency windows, efficient heat w Trade ally network training and development, supporting new jobs in the com‑ pumps (air source, ground source, and ductless); munity; w Weatherization for income-qualified residential customers, provided in partner‑ w Measurement, evaluation, and continual improvement of program performance; ship with local agencies, as well as a pilot for income qualifying home assess‑ w Leveraging data to inform more sophisticated strategic planning and target ments designed to serve customers with a high energy burden; market segments for energy-efficiency resource acquisition;

Snohomish County PUD | 2020 PROPOSED BUDGET 171/218 11. w Market research at the local level as well as leveraging regional research efforts; and upgrades, expansion of existing facilities and construction of new electric system infrastructure to meet both changing load patterns and new load growth. The elec‑ w Technology demonstration and evaluation projects conducted in Snohomish tric system program also focuses on providing customer voltage with proper power County with support from EPRI, BPA, NEEA, and local community partners. quality and system operational efficiency. CAPITAL EXPENDITURES The 2020 proposed expenditure plan includes costs related to expansion, upgrades The 2020 proposed system infrastructure construction expenditure plan is $48.8 and maintenance of the electric distribution system infrastructure, including fund‑ million. This electric system construction figure reflects a realistic estimate of the ing for depreciated cable replacement, distribution system line improvements, and project costs expected to be incurred in 2020 Proposed Budget. The system infra‑ state requested relocation work. In addition, capital expenditures include the costs structure construction plan consists of four categories as follows: for energy storage capabilities, telecommunications infrastructure, information g Major Capital Expansion Projects systems applications and hardware, capital work on PUD facilities and purchases The steady growth and changing load patterns of residential, industrial and com‑ of vehicles and equipment. mercial customers continues to require new facilities and property as well as increase peak load demands. The purpose of this program is to provide increased Capital expenditures are categorized in three types: system infrastructure con‑ electric system capacity by constructing new facilities. This category consists of struction, new connection construction, and other capital expenditures. The major large specific system expansions, such as new substations and new lines. These capital projects included in the 2020 proposed expenditure plan are presented in projects generally extend over a number of years. The 2020 proposed expenditure the table below. Additional detail on the capital program may be found in Exhibit 5. plan for this program is $11.4 million. System Infrastructure Construction g Major Capital Upgrade Projects The Electric System is planned, designed and constructed to provide dependable A reliable, cost-effective and safe electric system network requires that facilities capacity and maintain continuity and quality of service to PUD customers. The be upgraded to provide anticipated levels of service. The upgrades to the existing system infrastructure construction program focuses on continuous improvements facilities are prompted by localized load growth, land-use changes and infrastruc‑ to the PUD’s Electric System. The program involves reliability improvements, ture expansions. This category consists of large specific system upgrades, such as substation upgrades or line reconductoring. The expenditure plan for this program Significant 2020 Electric System in the 2020 Proposed Budget is $7.5 million. Capital Projects/Programs ($000’s) g Capital Asset Management Programs East Stanwood Substation $ 7,000 The existing electric system facilities must be routinely refurbished and/or replaced Arlington Microgrid 6,062 to provide a reliable, cost-effective and safe system. This program provides for facil‑ Wood Pole Program 5,300 ity relocations, replacement of malfunctioning or deteriorated plant and improving Cable Replacement Program 4,200 operational efficiency. Each of the programs included in this category consists of Hat Island Cable 3,500 specific improvement projects that are continuous and on-going over a number of Facilities Relocations and Control Zone 3,500 years. The 2020 proposed expenditure plan is $25.4 million for this program. Swamp Creek 115kV Switching Station 3,187 Stimson-Stanwood 115kV Rebuild 3,156

12. 172/218 Snohomish County PUD | 2020 PROPOSED BUDGET g Other Capital Outlay The replacement of aged vehicles and equipment reaching the end of their useful This program funds anticipated but as yet unidentified work, such as emergency line lives is necessary to ensure safe operation, reliable service and optimal efficiency. expansions and replacements and substation improvements. This category consists Vehicle and equipment replacements are planned by Transportation Services with of small system improvements that experience indicates are necessary each year. the intent to remove them from service before extensive maintenance costs and This program’s expenditure plan for the 2020 Proposed Budget is $4.3 million. downtime are realized.

New Connection Construction Replacement criteria are based on a combination of factors including age, utiliza‑ The new connection construction portion of the capital expenditure plan funds the tion, specific maintenance issues, changes in technology and changes in stakehold‑ PUD’s response to customer requests for new electrical service, upgrades to existing ers’ business needs. New technology is continually being investigated to reduce services and other services including street and area lighting, as well as new equip‑ environmental impact and improve workforce efficiency. The 2020 proposed expen‑ ment such as transformers and meters. diture plan includes $6.5 million for new and replacement vehicles and equipment.

This construction work is classified in three different categories. Type 1 work‑ in The Information Technology Services capital expenditure plan supports the tech‑ cludes overhead and underground secondary and primary services, convenience nology infrastructure (such as servers, network, applications, and telecommunica‑ poles, underground primary systems for plats, and reimbursable overhead and tions) that provides the basic framework for the PUD’s computer and communica‑ underground line construction. Type 2 work includes the purchase costs and the tions systems. The 2020 proposed expenditure plan includes $1.3 million in funding installation costs for transformers and meters. Type 3 work includes service poles, for new software and business capabilities, replacement of aging infrastructure and overhead and underground line construction, overhead street lights, area lights, and equipment, system software application improvements and telecommunications. street lights for underground plats. The Facilities Department expenditure plan for capital expenditures is related to Funding for customer service construction is based on approximately 3,600 new design, construction, upgrade and replacement of PUD facilities. The 2020 pro‑ service connections derived from the PUD’s load forecast. The cost for the 2020 posed expenditure plan includes $16.2 million related to construction work for the Proposed Budget is estimated at $29.2 million to serve the PUD’s projected 2020 new North County local office, Arlington Microgrid site work, and major roofing new connections plus other customer service requirements. projects. Other Capital Expenditures Other capital expenditures also include $3.4 million for the telecommunication In addition to system infrastructure and new connection construction, the PUD projects related to wireless attachments, microwave replacement, and wireless in‑ annually plans for capital expenditures related to PUD facilities design, construc‑ frastructure, and $6.0 million for development and implementation of the Arlington tion and upgrades, purchase and implementation of software applications, purchases Microgrid infrastructure, including additional substation automation and planning of transportation equipment, purchases of replacement information technology and design for a meter data management system. equipment, and communications equipment. Funding for these other capital ex‑ penditures totals $33.8 million in the 2020 proposed expenditure plan.

Snohomish County PUD | 2020 PROPOSED BUDGET 173/218 13. 2020 Proposed Budget Electric System Exhibit 1 Operating Revenues

Operating Revenues 2018 Results 2019 Budget 2020 Proposed Budget Energy Sales Mills/Kwh Amount MWh Mills/Kwh Amount MWh Mills/Kwh Amount Residential ## $ 361,003,229 3,496,058 104.35 $ 364,814,430 3,406,736 104.14 $ 354,776,017 Commercial ## 208,405,072 2,392,913 89.34 213,780,948 2,364,366 88.18 208,488,924 Industrial ## 36,728,837 575,418 69.75 40,137,295 511,475 69.53 35,562,883 Street Lights ## 4,185,277 25,000 144.82 3,620,570 27,000 144.32 3,896,693 Total Retail Energy Sales ## 610,322,415 6,489,389 95.90 622,353,242 6,309,577 95.53 602,724,516 Forward Wholesale Market Sales ## 120,000 16.82 $ 2,018,200 1,035,188 17.09 $ 17,692,433 Balancing Market Sales ## 34,985,044 1,363,768 19.87 27,101,158 677,971 21.52 14,588,976 Total Wholesale Energy Sales ## $ 34,985,043.76 1,483,768 19.63 $ 29,119,358 1,713,159 18.84 $ 32,281,409 Total Energy Sales $ 645,307,459 7,973,158 $ 651,472,600 8,022,736 $ 635,005,925

Other Operating Revenues Transmission Sales $ 10,980,262 $ 6,095,100 $ 6,512,000 Miscellaneous Operating Expense Reimbursements 3,551,128 1,585,391 1,617,099 Surplus REC and Emission Sales 0 50,000 200,000 BPA ECA Reimbursement 9,385,737 8,000,000 8,000,000 Residential Exchange Credit 3,245,162 2,250,000 2,405,793 Miscellaneous Service Charge Revenue 6,303,594 6,068,980 6,316,267 Rents from Electric Property 3,412,248 3,345,238 3,516,667 Total Other Operating Revenues $ 36,878,131 $ 27,394,709 $ 28,567,826

Total Operating Revenues $ 682,185,589 $ 678,867,309 $ 663,573,751

14. 174/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Electric System Exhibit 2 Purchased Power and Transmisison Services

Total Total Total 2018 2018 2019 2019 2020 2020 Proposed MWh's Results MWh's Budget MWh's Budget

BPA Block 3,030,244 $ 110,033,784 3,116,007 $ 113,409,108 2,989,906 $ 104,568,342 BPA Slice Base 4,400,626 138,581,422 3,983,251 138,578,408 4,101,440 129,204,227 Supplemental spill charge - 697,556 - 1,000,000 - - Slice True-up - (2,657,739) - - - - BPA Slice Subtotal 4,400,626 136,621,239 7,099,258 139,578,408 7,091,346 129,204,227 BPA Financial Reserves and Policy Funding - - 158,864 - 1,869,351 BPA Lookback Credit/REP Customer Refund - (8,793,559) - (6,632,417) - -

Total BPA Power Costs 7,430,870 $ 237,861,464 2.5 7,099,258 $ 246,513,962 7,091,346 $ 235,641,920 Generation System: Jackson Hydro 459,517 20,584,714 388,627 19,880,774 374,240 11,720,182 Generation System - Other - 14,185,332 - 15,761,196 - 6,736,332 Youngs Creek Hydro 4,877 2,052,903 17,114 1,965,542 17,169 1,941,153 Woods Creek Hydro 1,872 211,622 1,273 183,947 1,278 159,636 Hancock Creek Hyrdo 12,646 2,219,010 27,308 2,198,535 27,382 1,982,408 Calligan Creek Hydro 11,658 1,738,667 24,598 1,922,316 24,658 1,792,648 Renewable Research - 941,360 - 256,328 - 1,025,400 Total Generation System 490,570 $ 41,933,608 458,920 $ 42,168,636 444,727 $ 25,357,759 Other Renewable Power Sources: Packwood 17,317 543,630 18,012 559,900 17,094 576,741 Qualco 1,911 126,175 2,814 130,268 2,662 177,461 Hampton Lumber Mills 16,932 817,946 18,974 946,253 17,587 975,320 Wind Power Contracts 468,730 36,397,225 428,537 32,848,576 466,643 35,895,053 Total Other Renewable Power Sources 504,890 $ 37,884,976 468,337 $ 34,484,997 503,986 $ 37,624,575 Market Power Purchases Forward Purchases - - - 16,357 528,862 Market/Short Term Purchases 263,989 9,313,752 332,142 11,032,371 400,021 13,275,283 Total Market and Short-Term Purchases 263,989 $ 9,313,752 332,142 $ 11,032,371 416,377 $ 13,804,145 Other Power Purchases Small Power Producer 282 13,979 238 11,789 239 11,831 Other Non-Power Services - 2,348,390 - 495,000 - 650,889 REC Purchases - 245,658 - 1,087,363 - 265,540 Total Purchased Power 8,690,601 $ 329,601,826 8,358,896 $ 335,794,118 8,456,676 $ 313,356,658 Transmission and Ancillary Services Transmission Services - 37,859,570 - 38,668,797 - 40,185,496 Ancillary Services - 17,608,404 - 18,093,392 - 18,495,445 Total Transmission and Ancillary Services - $ 55,467,974 - $ 56,762,189 $ 58,680,941

Snohomish County PUD | 2020 PROPOSED BUDGET 175/218 15. 2020 Proposed Budget Electric System Exhibit 3 Operating and Maintenance Expenses - By Cost Center 2018 2019 2020 Uses of Funds - by Cost Center CC FTE Results FTE Budget FTE Budget General Manager F1151 2.8 756,931 2.0 708,948 6.0 1,193,193 Commission F1152 3.3 655,173 4.0 786,960 - 298,195 Government Relations F1153 3.1 781,470 3.0 814,358 3.0 833,410 Safety and Line Training F1154 7.9 1,522,437 9.0 1,667,504 9.0 1,907,690 Total Administration 17.1 $ 3,716,011 18.0 $ 3,977,771 18.0 $ 4,232,488 Human Resources Department F1121 20.1 3,638,353 20.0 3,851,972 23.7 4,556,218 Employee Benefits F1122 - 63,672,488 - 66,097,799 - 69,069,188 Total Human Resources and Benefits 20.1 $ 67,310,841 20.0 $ 69,949,771 23.7 $ 73,625,406 Corporate Communications F1141 7.8 2,097,626 6.9 2,138,730 7.9 2,326,100 Print Shop F1142 5.0 1,913,637 4.0 2,262,386 4.0 2,274,312 Mailroom F1143 3.8 914,275 5.0 914,732 5.0 924,185 Business Readiness & Training F1144 2.4 472,194 4.0 653,161 4.0 630,076 Total Corporate Communications 19.1 $ 5,397,733 19.9 $ 5,969,009 20.9 $ 6,154,672 General Counsel F1131 8.6 3,465,702 9.0 3,773,013 10.5 4,012,435 District Information Governance F1132 4.2 757,225 4.0 774,544 5.5 1,001,077 Total Legal Services 12.9 $ 4,222,927 13.0 $ 4,547,557 16.0 $ 5,013,512 AGM Finance and Treasury F1101 1.9 456,683 2.0 450,111 2.0 463,758 Budget and Financial Planning F1102 1.9 250,227 2.0 255,496 2.0 264,641 SAP Support Finance F1103 3.3 426,287 4.0 531,707 5.0 677,212 Contracts and Purchasing F1104 10.8 1,348,663 12.0 1,470,884 11.0 1,429,410 Warehouse F1105 26.1 44,214 26.0 3,172,638 26.0 3,385,272 Meter Reading F1106 34.8 2,951,647 38.0 3,090,354 38.0 3,156,782 Customer Accounting F1107 16.9 6,216,578 18.0 7,423,675 18.0 7,445,935 Treasury & Risk Management F1108 9.7 2,991,263 10.0 3,504,875 10.0 3,597,950 General Accounting F1110 23.0 2,813,197 23.0 2,911,154 23.0 3,175,435 Total Finance 128.3 $ 17,498,759 135.0 $ 22,810,895 135.0 $ 23,596,395 Grounds and Enginnering F1201 9.0 1,326,316 9.0 2,184,915 9.0 1,871,068 Custodial Services F1202 21.6 1,586,234 24.9 2,253,211 24.9 2,262,322 Facilities Maintenance F1203 11.0 5,432,732 11.0 2,816,850 10.0 2,753,774 Facilities Planning F1204 4.9 944,912 6.0 1,607,425 6.0 1,406,364 Security and Business Continuity F1205 5.0 1,867,970 5.0 2,815,764 7.0 2,965,403 Facilities Administration F1206 3.8 545,842 4.0 536,385 4.0 555,912 Total Facilities and Security 55.3 $ 11,704,007 59.9 $ 12,214,550 60.9 $ 11,814,842 Customer Service Experience F1311 111.5 12,540,416 116.5 13,340,276 116.5 13,644,726 AGM Customer and Energy Services F1350 2.9 760,720 3.0 918,098 4.0 1,019,352 Business Operations F1351 5.9 1,040,665 5.0 1,116,009 3.0 661,396 Customer Strategy, Analytics and Planning F1354 0.3 71,248 - - - - Residential F1355 12.4 6,586,509 13.0 9,022,466 11.0 6,634,990 Market Segments F1356 12.4 6,280,467 14.0 8,183,143 13.0 7,176,155 Strategic Accounts F1357 6.9 1,328,072 10.0 2,878,194 9.0 2,992,405 Sr. Manager Energy Services F1358 2.7 1,225,089 2.0 1,076,970 2.0 988,130 Customer Technology Systems F1359 7.1 1,015,953 7.0 1,179,893 5.0 700,265 Total Customer and Energy Services Division 162.0 $ 30,849,280 170.5 $ 37,715,047 163.5 $ 33,817,419

16. 176/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Electric System Exhibit 3 Operating and Maintenance Expenses - By Cost Center 2018 2019 2020 Uses of Funds - by Cost Center CC FTE Results FTE Budget FTE Budget AGM Power and Transmission F1401 2.8 547,271 3.0 744,971 3.0 753,532 Rates & Economics F1402 2.5 617,775 3.0 780,631 3.0 748,987 Power Scheduling F1403 13.7 2,570,384 14.0 2,602,428 14.0 2,810,003 Power Supply F1404 4.5 882,885 5.0 1,040,912 5.0 1,094,272 Regional Transmission and Compliance F1408 4.2 1,294,207 5.0 1,868,395 5.0 1,408,650 Total Power, Rates & Transmission Mgmt. 27.6 $ 5,912,521 30.0 $ 7,037,336 30.0 $ 6,815,444 AGM Information Technology Systems F1501 2.0 636,970 2.0 615,167 2.0 636,897 ITS Administration Management F1502 3.0 7,646,258 3.0 9,322,211 3.0 9,527,475 ITS Automation Projects F1504 - 860,864 - 2,346,580 - 2,470,000 ITS Project Release Management F1510 1.3 270,759 1.0 223,601 2.0 307,346 IT Quality Assurance F1511 1.0 84,239 1.0 139,826 1.0 133,100 IT Project Release Delivery F1512 3.0 341,312 4.0 671,427 4.0 770,798 ITS Operations Architecture F1521 2.3 465,490 2.0 407,519 2.0 436,835 ITS Operations Support F1522 12.8 2,308,723 13.0 2,344,387 13.0 2,663,250 ITS End User Support F1523 8.2 2,184,685 9.0 2,270,998 9.0 2,283,617 ITS Database Admin F1524 4.0 731,743 4.0 635,154 4.0 696,626 Enterprise Architecture F1531 1.0 172,138 1.0 221,595 1.0 229,336 ITS Security Architecture F1532 0.5 112,369 1.0 355,238 1.0 344,553 ITS Application Architecture F1541 4.3 1,123,619 6.0 1,641,605 6.0 1,754,566 M2C/APP Security F1542 11.8 2,395,079 12.0 2,365,417 13.0 2,706,325 EAM/CMP/ALM F1543 13.3 2,274,473 14.0 2,412,526 14.0 2,489,645 B2R/P2P/H2R/R2D F1544 12.3 2,062,908 12.0 1,932,594 11.0 1,938,835 Analytics & Information Management F1545 9.1 1,522,006 10.0 1,693,129 10.0 1,847,087 Total Information Technology Services 89.8 $ 25,194,665 95.0 $ 29,598,973 96.0 $ 31,236,289 Distribution and Engineering General F1700 - 4,608,687 - 625,220 (6.0) 1,218,336 AGM Distribution and Engineering F1701 1.7 460,806 2.0 497,936 2.0 479,242 Distribution and Engineering Business Operations F1702 1.0 168,559 1.0 156,398 1.0 157,850 Distribution and Engineering Capital Operating F1790 - 7,695,081 - 5,100,000 - 2,612,400 Distribution and Engineering General Subtotal 2.7 12,933,132 3.0 6,379,554 (3.0) 4,467,828 Work and Asset Management F1704 4.2 753,435 6.0 892,958 5.0 1,112,932 Inspection and Scheduling F1733 8.0 1,070,430 7.8 1,004,134 8.0 998,583 Work and Asset Management Subtotal 12.3 1,823,866 13.8 1,897,092 13.0 2,111,515 Sr. Manager Design and Construction F1710 2.3 356,175 2.0 365,976 2.0 402,870 Monroe Local Office F1712 17.5 1,472,776 18.4 1,488,269 17.4 1,417,556 Snohomish Local Office F1713 17.9 1,591,650 18.4 1,548,820 18.4 1,709,234 Stanwood Local Office F1714 18.2 2,140,271 18.2 1,805,086 18.2 1,715,327 Arlington Local Office F1715 18.8 1,671,193 18.2 1,467,569 18.2 1,742,416 South County Local Office F1716 11.1 1,011,844 11.0 1,013,524 11.0 1,105,194 Halls Lake F1717 23.6 1,794,061 25.0 1,608,513 25.0 1,836,322 Everett Region F1719 89.3 14,008,443 102.7 9,505,585 103.7 8,959,367 Everett Engineering F1746 10.4 837,022 11.0 954,342 12.0 1,036,196 Design Construction Services Subtotal 215.9 25,366,594 231.9 20,261,467 225.9 19,924,483 Environmental Affairs F1721 4.0 641,262 4.0 660,038 4.0 689,885 Environmental Affairs Subtotal 4.0 641,262 4.0 660,038 4.0 689,885

Snohomish County PUD | 2020 PROPOSED BUDGET 177/218 17. 2020 Proposed Budget Electric System Exhibit 3 Operating and Maintenance Expenses - By Cost Center 2018 2019 2020 Uses of Funds - by Cost Center CC FTE Results FTE Budget FTE Budget Sr. Manager Shared Services F1720 1.0 230,631 1.0 219,493 1.0 225,319 Real Estate F1722 7.1 716,580 8.0 955,730 8.0 920,694 Transportation F1723 30.8 217,605 32.0 6,491,874 33.0 6,786,791 Shared Services Subtotal 38.9 1,164,816 41.0 7,667,097 42.0 7,932,804 Sr. Manager Construction Services F1730 1.6 311,732 2.0 354,630 - (0) Vegetation Management F1731 20.7 9,500,727 21.0 8,485,901 22.0 8,742,654 Energy Control Center F1732 18.1 4,039,931 20.0 4,504,441 23.0 5,146,894 Apprenticeship Program F1734 - (4,174) - - - - Operational Technical Engineering F1744 7.6 1,365,556 8.0 1,744,859 7.0 1,541,269 Transmission & Distribution Systems Subtotal 48.0 15,213,772 51.0 15,089,831 52.0 15,430,816 Sr. Manager Planning F1740 2.0 313,004 2.0 380,457 2.0 385,807 Distribution and Engineering Services F1741 19.9 1,520,680 21.0 2,191,388 23.0 2,072,278 Transmission Engineering Services F1742 21.9 2,222,328 21.0 2,080,547 16.0 1,840,093 GIS Maps, Records and Drafting F1743 24.7 1,677,114 25.0 1,793,201 24.0 1,766,965 Planning and Protection F1745 17.2 2,822,032 17.0 2,887,068 18.0 2,987,982 Plat Development F1747 6.7 474,844 7.0 503,784 7.0 498,682 Joint Use 5.0 605,687 Planning/Engineering/Technology Subtotal 85.6 8,555,159 86.0 9,332,661 95.0 10,157,494.1 Sr. Manager Substation, Metering & Telecom F1750 1.0 216,069 1.0 235,000 1.0 250,643 Telecommunications F1751 11.7 1,753,370 12.0 1,756,660 12.0 1,772,245 Substation Engineeing and Design F1752 16.7 1,362,159 18.0 1,345,031 18.0 1,373,812 Substation Construction F1753 42.5 4,668,164 44.0 4,242,094 44.0 4,587,883 Metering F1754 18.7 2,658,466 18.5 2,630,807 18.5 2,727,748 Subtotal Substation, Metering, Telecom 90.7 10,658,229 93.5 10,209,592 93.5 10,712,330 Total Distribution & Engineering Services 498.0 76,356,829 524.2 71,497,331 522.4 71,427,156 Total Other Costs/Capital Overheads (2) - (75,053,182) - (80,710,332) (81,801,734) Total Operating and Maintenance Expenses 1,030.2 $ 173,110,392 1,085.5 $ 184,609,159 1,085.5 $ 185,931,889 (1) Total FTE include all approved staffing for the department. Some of the FTE may be allocated to Capital projects. (2) The Other Costs/Capital Overheads number represents the credit for employee benefits charged to cost centers and the credit for Admin and General expenses charged to Capital.

18. 178/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Electric System Exhibit 4 Operating and Maintenance Expense by Cost Element

2018 2019 2020 Operating and Maintenance Results Budget Budget Labor - Straight Time 83,370,987 87,908,030 93,043,301 Labor - Overtime 7,670,020 3,837,883 5,581,755 Employee Benefits 33,818,822 45,467,378 46,142,969 Travel and Training 1,326,911 1,640,845 1,580,833 Insurance and Claims 1,604,816 2,072,201 2,061,081 Coded Stock 2,599,995 1,598,880 2,005,574 Other Materials and Supplies (9,080) 77,907 1,092,013 Construction Materials 31,847 - - Equipment 1,592,867 1,720,271 1,797,942 Supplies and Vehicle Expense 8,010,517 5,717,296 5,004,620 Public Works and Small Roster 9,732,222 6,881,675 8,133,200 Professional Services Contracts 6,762,848 11,799,489 11,531,537 Other Contracted Service 26,969,671 35,363,088 31,901,338 Rents 658,936 627,997 456,858 Utilities 1,268,262 1,434,159 1,414,578 Land Purchases 3,100 - - Property and Building Purchases 75,334 - - Easements 135,894 182,078 190,500 Postage 1,370,952 1,662,015 1,661,215 Refunds 88,294 - - Dues and Memberships 1,738,792 2,100,616 1,653,982 Overheads (24,044,984) (33,569,674) (31,379,581) Capital Operating Expense 6,451,572 5,100,000 250,000 Bad Debt Expense 1,881,797 2,987,424 1,808,174 Total Operating & Maintenance by Cost Element $ 173,110,392 $ 184,609,558 $ 185,931,889

Snohomish County PUD | 2020 PROPOSED BUDGET 179/218 19. 2020 Proposed Budget Electric System Exhibit 5 Capital Expenditures 2019 2020 2019 2020 ELEC SYSTEM INFRASTRUCTURE CON. Budget Budget NEW CONNECTION CONSTRUCTION Budget Budget Swamp Creek 115kV Switching Station $ 5,322,878 $ 3,187,362 Meters & Installation $ 704,144 $ 501,801 Cedar Valley Substation 3,377,182 - Area Light Installation 782,927 826,849 Stanwood to Camano 115kV Line - 300,000 Estimated Reimbursable 3,470,550 4,971,957 East Stanwood Substation 587,598 7,000,000 Line Extension 5,255,827 7,987,000 Port Gardner Substation 4,309,324 - Line Extension Non-Fee 424,215 480,000 Stimson to Sills Corner Transmission Line 364,203 - Boeing Expansion - instl 4th PWR 2,123,416 370,270 115kV Ring Bus Station near Turners 146,462 - Other 405,472 600,000 115kV Ring Bus Station near Woods Creek 21,404 383,696 Plat Work 6,730,690 9,534,279 Woods Creek Double Bank - 50,000 Street Light Install 3,351,779 3,115,765 Lynnwood City Center Substation/Cedar Valley - 222,719 Sound Transit Lynnwood Link Ext - 821,555 N County 230kV Bank Addition 22,930 321,922 Subtotal New Connection Construction $ 23,249,019 $ 29,209,476 Subtotal Capital Expansion $ 14,151,982 $ 11,465,699 Station Reliability Improvement Program $ 1,054,642 $ 1,083,312 INFORMATION TECHNOLOGY CAPITAL Oso Substation Upgrade 3,894,717 - ITS Automation/Improvement Projects $ 1,823,652 $ 209,600 Stimson-Stanwood 115kV Line Rebuild 43,143 1,000,000 ITS Operations Hardware and Software 1,229,575 1,106,801 Casino Substation - Replace Transformer - - Subtotal Information Technology Capital $ 3,053,227 $ 1,316,401 Stimson Crossing Substation - Double Bank 176,676 - Smokey Point Substation - Double Bank - - TELECOMMUNICATIONS / WIRELESS ATTACHMENTS/ ENERGY STORAGE Stanwood to Camano 115kV Line - Rebuild - 320,473 Microgrid Energy Storage (MESA 3) $ 1,150,000 $ 6,061,650 Delta Substation - 5th Feeder 696,775 662,126 Smart Grid Test lab 91,000 58,307 Twentieth Ave -Replace BK1 Swtichgear 496,472 2,050,956 Service to Telecommunication Companies - - Transmission Relay Upgrade 101,043 104,074 Microwave Radio System 559,534 250,000 Brightwater 115kV Ring Bus Relay Upgrade 179,734 185,127 Fiber Optic System - 1,050,785 Subtotal Capital Upgrade $ 6,643,202 $ 5,406,068 Telecom Modernization 784,851 892,259 Wood Pole Program $ 4,609,956 $ 5,340,000 Wireless Infrastructure/Voice Radio System 403,533 1,173,595 Cable Replacement Program 4,741,275 4,700,000 Voice Radio System 720,638 - Facilities Relocations and Control Zone 3,577,617 3,500,000 Subtotal Telecomm/Wireless Attachments/Energy Storage $ 3,709,557 $ 9,486,596 Substation Emergency Equipment 602,790 - Cascade Feeder Rebuild 1,074,126 - FACILITIES CAPITAL Ballinger 5th Feeder 1,360,066 342,000 Local Office Design and Construction $ 7,694,691 $ 10,558,947 Martha Lake 12-73 Reconductoring 337,038 33,600 Roofing Projects 4,068,847 2,853,600 Underground Lynnwood and Aldewood Circuits 283,618 765,528 Other Facilities Capital/Equipment 2,601,552 2,794,496 Woods Creek to Lake Chaplain Circuit Tie 465,748 959,877 75th Street Business Center Upgrades 5,412,462 - Joint Pole Removal 200,133 200,182 Subtotal Facilities Capital $ 19,777,552 $ 16,207,043 Scada Upgrade 745,141 100,458 Substation Circuit Switcher Replacement 369,258 662,284 Other Capital Floral Hills Switchgear Replacement 235,286 1,917,000 New and Replacement Vehicles $ 4,701,639 $ 6,500,000 Delta - SCADA Ctrl on Each Line Position 179,100 - Tools, Testing, and Office Equipment - 245,952 Everett - SCADA Ctrl on Each Line Position - 217,216 Transportation/Replacement Vehicles $ 4,701,639 $ 6,745,952 Thrashers Site Improvements 89,673 90,683 Paine Field Bk2 Transformer Replacement - 183,565 Less O&M Costs Related to Capital Construction (5,100,000) (250,000) Turners Corner 88,241 1,239,813 North Marysville XFMR Replacement 197,174 1,833,308 Hat Island Cable - 3,500,000 Total Capital Expenditures $ 92,812,767 $ 111,503,376 Aluminum Bell and Cutout Program - 482,682 Distribution Inertia Switch - 1,495,169 New Feeder Tie Between 133 and 260 41,964 - Subtotal Capital Asset $ 19,198,205 $ 27,563,365

Substation Security Project $ 196,369 $ - Distribution Automation 1,650,232 1,552,776 Distribution Line Improvements Unspecified 1,581,783 2,800,000 Subtotal Capital Outlay $ 3,428,385 $ 4,352,776

20. 180/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Administration Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 17.1 1,791,325 18.0 1,873,691 18.0 1,940,409 Labor - Overtime 601200 33,035 24,498 45,100 Employee and Retiree Benefits 601300 6,002 - - Travel and Education 605000 126,202 217,402 222,420 Property and Liability Insurance 615100 - - - Materials, Equipment & Supplies 611300 52,392 72,510 55,582 Coded Stock Material 611100 41,192 17,175 17,200 Public and Small Works Contracts 614100 - - - Professional Services Contracts 614000 349,138 493,500 610,500 Other Contracted Services 614200 105,143 12,750 22,750 Rents and Utilities 616100 1,756 6,000 12,200 Land, Property and Easements 617000 - - - Postage 619300 - - - Dues, Memberships & Subscriptions 619200 50,995 55,665 52,800 Overheads/Other 698000 1,158,831 1,205,830 1,253,527 Total Administration Division 17.1 $ 3,716,011 18.0 $ 3,979,021 18.0 $ 4,232,488

Snohomish County PUD | 2020 PROPOSED BUDGET 181/218 21. 2020 Proposed Budget Corporate Communications Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 19.1 1,442,966 19.9 1,450,438 20.9 1,555,964 Labor - Overtime 601200 17,539 16,000 16,000 Employee and Retiree Benefits 601300 1,271 - - Travel and Education 605000 19,536 30,825 35,000 Property and Liability Insurance 615100 - - - Materials, Equipment & Supplies 611300 272,965 287,000 280,500 Coded Stock Material 611100 248,004 275,000 273,700 Public and Small Works Contracts 614100 - - - Professional Services Contracts 614000 254,254 301,000 312,600 Other Contracted Services 614200 774,152 926,931 929,511 Rents and Utilities 616100 8,535 13,475 9,775 Land, Property and Easements 617000 - - - Postage 619300 1,370,948 1,659,500 1,658,700 Dues, Memberships & Subscriptions 619200 23,023 34,000 34,800 Overheads/Other 698000 964,540 974,840 1,048,123 Total Corporate Communications Division 19.1 $ 5,397,733 19.9 $ 5,969,009 20.9 $ 6,154,672

22. 182/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Legal Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 12.9 1,722,375 13 1,742,647 16 2,027,080 Labor - Overtime 601200 - - - Employee and Retiree Benefits 601300 - - - Travel and Education 605000 66,122 76,426 102,105 Property and Liability Insurance 615100 70,000 190,000 190,000 Materials, Equipment & Supplies 611300 41,027 38,700 44,600 Coded Stock Material 611100 - - - Public and Small Works Contracts 614100 - - - Professional Services Contracts 614000 1,087,969 1,180,000 1,175,000 Other Contracted Services 614200 127,506 190,625 162,625 Rents and Utilities 616100 - - - Land, Property and Easements 617000 - - - Postage 619300 - - - Refunds 619400 (4,744) - - Dues, Memberships & Subscriptions 619200 10,352 13,865 14,770 Overheads/Other 698000 1,097,576 1,115,294 1,297,331 Total Legal Division 12.9 $ 4,222,927 13.0 $ 4,547,557 16.0 $ 5,013,512

Snohomish County PUD | 2020 PROPOSED BUDGET 183/218 23. 2020 Proposed Budget Finance Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 128.3 8,265,216 135 8,427,076 135 8,859,119 Labor - Overtime 601200 495,643 267,000 412,000 Employee and Retiree Benefits 601300 3,803 - - Travel and Education 605000 57,261 112,980 117,715 Property and Liability Insurance 615100 1,543,714 1,777,201 1,871,081 Materials, Equipment & Supplies 611300 66,555 68,272 82,372 Coded Stock Material 611100 224,396 272,952 203,475 Public and Small Works Contracts 614100 - - - Professional Services Contracts 614000 377,149 542,459 570,337 Other Contracted Services 614200 4,560,635 5,845,919 5,677,621 Rents and Utilities 616100 - 780 1,200 Dues, Memberships & Subscriptions 619200 12,332 16,935 16,733 Overheads/Other 698000 5,374,070 5,479,721 5,784,742 Total Finance Division 128.3 $ 20,980,772 135.0 $ 22,811,295 135.0 $ 23,596,395

24. 184/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Customer and Energy Services Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 162.0 11,823,363 170 12,233,242 164 12,109,287 Labor - Overtime 601200 401,414 - 503,900 - 380,000 Employee and Retiree Benefits 601300 2,728 - - - - Travel and Education 605000 256,220 - 304,203 - 207,946 Property and Liability Insurance 615100 - - - - - Materials, Equipment & Supplies 611300 115,082 - 615,300 - 126,000 Coded Stock Material 611100 33,539 - 26,400 - 28,100 Public and Small Works Contracts 614100 - - - - - Professional Services Contracts 614000 492,561 - 1,183,000 - 1,107,000 Other Contracted Services 614200 9,691,597 - 14,416,400 - 11,642,500 Rents and Utilities 616100 13,995 - 16,000 - 14,500 Land, Property and Easements 617000 - - - - - Postage 619300 - - 2,500 - 2,500 Dues, Memberships & Subscriptions 619200 444,744 - 499,979 - 372,384 Overheads/Other 698000 7,574,037 - 7,914,123 - 7,827,202 Total Energy Services Division 162.0 30,849,280 170.5 37,715,051 163.5 33,817,427

Snohomish County PUD | 2020 PROPOSED BUDGET 185/218 25. 2020 Proposed Budget Facilities and Security Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 55.3 3,360,119 59.9 3,574,976 60.9 3,636,279 Labor - Overtime 601200 71,839 - 261,200 - 127,000 Employee and Retiree Benefits 601300 1,223 - - - - Travel and Education 605000 23,001 - 33,270 - 34,800 Property and Liability Insurance 615100 - - - - - Materials, Equipment & Supplies 611300 738,826 - 1,046,000 - 927,700 Coded Stock Material 611100 116,012 - 146,000 - 128,000 Public and Small Works Contracts 614100 1,573,606 - 604,200 - 968,000 Professional Services Contracts 614000 1,415,724 - 1,896,000 - 1,766,500 Other Contracted Services 614200 1,602,369 - 1,774,063 - 1,438,450 Rents and Utilities 616100 615,646 - 513,300 - 397,900 Land, Property and Easements 617000 11,127 - 8,000 - 10,500 Postage 619300 - - - - - Refunds 619400 - - - - - Dues, Memberships & Subscriptions 619200 3,885 - 4,405 - 5,325 Overheads/Other 698000 2,170,631 - 2,353,137 - 2,374,389 Total Facilities and Security Division 55.3 $ 11,704,007 59.9 $ 12,214,550 60.9 $ 11,814,842

26. 186/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Human Resources and Benefits Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results Budget Budget Labor - Straight Time 601100 20.1 18,286,590 20 21,901,067 23 24,454,716 Labor - Overtime 601200 - 500 500 Travel and Education 605000 134,056 224,725 114,750 Employee Benefits 613000 46,898,221 45,567,378 46,142,969 Property and Liability Insurance 615100 105,586 105,000 - Materials, Equipment & Supplies 611300 58,353 82,700 90,700 Coded Stock Material 611100 53 750 750 Public and Small Works Contracts 614100 - - - Professional Services Contracts 614000 561,599 861,450 1,392,100 Other Contracted Services 614200 119,261 104,500 138,200 Rents and Utilities 616100 - - - Land, Property and Easements 617000 - - - Refunds 619400 (11,045) - - Postage 619300 - - - Dues, Memberships & Subscriptions 619200 24,615 27,839 22,909 Overheads/Other 698000 1,134,269 1,073,862 1,267,812 Total Employee Resources Division 20.1 $ 67,311,559 20.0 $ 69,949,771 23.0 $ 73,625,406

Snohomish County PUD | 2020 PROPOSED BUDGET 187/218 27. 2020 Proposed Budget Information Technology Services Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results Budget Budget Labor - Straight Time 601100 89.8 9,109,419 95 9,010,752 96 9,850,450 Labor - Overtime 601200 11,290 168,200 15,000 Employee and Retiree Benefits 601300 8,889 - - Travel and Education 605000 137,010 158,900 158,900 Property and Liability Insurance 615100 - - - Materials, Equipment & Supplies 611300 761,480 713,226 1,162,545 Coded Stock Material 611100 3,616 10,000 10,000 Public and Small Works Contracts 614100 - - - Professional Services Contracts 614000 941,179 3,584,080 2,925,500 Other Contracted Services 614200 7,604,242 9,095,584 9,734,094 Rents and Utilities 616100 987,707 1,047,180 1,047,180 Land, Property and Easements 617000 - - - Postage 619300 - - - Dues, Memberships & Subscriptions 619200 13,038 15,657 23,683 Overheads/Other 698000 5,656,713 5,795,394 6,308,938 Total Information Technology Services 89.8 $ 25,234,584 95.0 $ 29,598,973 96.0 $ 31,236,289

28. 188/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Power and Transmission Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 27.4 2,858,849 30 3,112,214 30 3,307,249 Labor - Overtime 601200 206,884 - 200,000 - 210,000 Employee and Retiree Benefits 601300 - - - - - Travel and Education 605000 110,290 - 151,775 - 145,431 Property and Liability Insurance 615100 - - - - - Materials, Equipment & Supplies 611300 19,759 - 11,600 - 11,830 Coded Stock Material 611100 - - - - - Public and Small Works Contracts 614100 - - - - - Professional Services Contracts 614000 8,724 - 398,000 - 185,000 Other Contracted Services 614200 398,925 - 435,740 - 393,254 Rents and Utilities 616100 - - - - - Land, Property and Easements 617000 - - - - - Postage 619300 - - - - - Dues, Memberships & Subscriptions 619200 445,325 - 704,190 - 406,140 Overheads/Other 698000 1,863,765 - 2,023,817 - 2,156,540 Total Power and Transmission 27.4 $ 5,912,521 30.0 $ 7,037,336 30.0 $ 6,815,444

Snohomish County PUD | 2020 PROPOSED BUDGET 189/218 29. 2020 Proposed Budget Distribution and Engineering Division Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 498.0 28,789,480 524 28,670,175 522 29,302,900 Labor - Overtime 601200 7,217,286 - 2,701,585 - 4,908,115 Employee and Retiree Benefits 601300 10,103 - - - - Travel and Education 605000 402,776 - 368,999 - 475,601 Property and Liability Insurance 615100 - - - - - Materials, Equipment & Supplies 611300 5,352,995 - 3,510,666 - 4,029,221 Coded Stock Material 611100 2,485,167 - 1,387,603 - 1,806,349 Public and Small Works Contracts 614100 8,158,616 - 6,277,475 - 7,165,200 Professional Services Contracts 614000 1,274,551 - 1,360,000 - 1,487,000 Other Contracted Services 614200 2,108,572 - 3,027,503 - 2,317,134 Rents and Utilities 616100 574,225 - 526,201 - 449,881 Land, Property and Easements 617000 203,202 - 174,078 - 180,000 Postage 619300 5 - 15 - 15 Dues, Memberships & Subscriptions 619200 96,616 - 139,850 - 144,199 Refunds 619400 199,909 - - - - Capital Operating Expense 619501 6,451,572 - 5,100,000 - 250,000 Overheads/Other 698000 20,119,625 - 18,253,182 - 18,911,541 Total Distribution and Engineering Division 498.0 $ 83,444,699 524.2 $ 71,497,331 522.4 $ 71,427,156

30. 190/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Other Costs Operating and Maintenance by Cost Element

2018 2019 2020 Cost Element Cost Element FTE Results FTE Budget FTE Budget Labor - Straight Time 601100 - (4,078,714) - (4,493,248) - (4,000,152) Labor - Overtime 601200 (784,910) - - - (531,960) Employee and Retiree Benefits 601300 (13,113,419) - - - - Travel and Education 605000 (6,120) - (38,660) - (33,835) Property and Liability Insurance 615100 (114,484) - - - - Materials, Equipment & Supplies 611300 2,146,718 - 1,069,500 - 1,083,525 Coded Stock Material 611100 (551,984) - (537,000) - (462,000) Public and Small Works Contracts 614100 - - - - - Professional Services Contracts 614000 - - - - - Other Contracted Services 614200 (123,176) - (466,927) - (554,800) Rents and Utilities 616100 (274,666) - (60,780) - (61,200) Land, Property and Easements 617000 - - - - - Dues, Memberships & Subscriptions 619200 613,867 - 588,231 - 560,239 Refunds 619400 (80,606) - - - - Uncollectible Expense 618000 1,881,797 - 2,987,424 - 1,808,174 Overheads/Other 698000 (71,179,027) - (79,758,875) - (79,609,724) Total Other Costs $ - $ (85,664,721) $ - $ (80,710,331) $ 1 $ (81,801,728)

Snohomish County PUD | 2020 PROPOSED BUDGET 191/218 31. 32. 192/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 PROPOSED BUDGET

he Generation System is financed and accounted for as a system separate Calligan Creek Projects (both 6 MW projects located in King County). The Electric from the Electric System. The Generation System consists of the Jackson System has covenanted to purchase all power and energy available from the Genera‑ THydroelectric Project (an operating generating facility with a nameplate tion System, and the net cash expenditures of the Generation System are treated as capacity of 111.8 MW located on the Sultan River), the Youngs Creek Hydroelectric a component of the Electric System’s purchased power. The Generation System is Project (a 7.5 MW project located near Sultan) the Woods Creek Hydroelectric charged for administrative functions provided by the Electric System that support Project (a 650 KW project also located near Sultan), and the Hancock Creek and its operations.

Snohomish County PUD | 2020 PROPOSED BUDGET 193/218 33. COMPARATIVE ANALYSIS Operating Revenues Schedule 2 is a summary comparing the 2020 Proposed Budget for the Generation The majority of the Generation System’s costs, and the MWh generated, are passed System with the 2019 Budget. on to the Electric System via energy sales (recorded as a purchased power by the Electric System). Energy sales are $16.9 million lower in the 2020 Proposed Budget due to capital bonds for the Jackson Project being substantially paid off. Schedule 2 GENERATION SYSTEM Operating Expenditures COMPARATIVE FINANCIAL DATA ($000’s) Operating and maintenance expenditures in the 2020 Proposed Budget are $3.4 million higher than 2019 due primarily to a scheduled shutdown of the Jackson 2020 2019 Proposed Hydroelectric Project for maintenance. Estimated deprecation expenditures of $5 Budget Budget million reflect the current depreciation schedules on assets for 2020. Depreciation Operating Revenues is an estimate of the reduced value of the Generation System’s fixed assets. Energy Sales $ 42,169 $ 25,358 Other Operating Revenues 140 – Interest charges reflect current debt payment schedules on existing debt. Total Operating Revenues $ 42,309 $ 25,358 Cash Adjustments to Net Income Operating Expenses Operating & Maintenance Expenses $ 6,965 $ 10,076 Capital expenditures in the 2020 Proposed Budget are $3.0 million, $700,000 lower Taxes 98 95 than the 2019 Budget. Capital expenditures include $2.1 million related to capital Depreciation 5,416 5,524 maintenance for the Jackson Hydroelectric Project. Total Operating Expenses $ 12,479 $ 15,695 Debt service principal is lower in the 2020 Proposed Budget compared to 2019, Net Operating Income $ 29,830 $ 8,837 reflecting the reduction of pay‑ Other Income & Expense $881 $1,660 ments on the Jackson Hydro‑ Interest Charges 6,435 5,412 electric Project construction Contributions 50 50 bonds. There are no planned Net Income $ 24,326 $ 5,135 reserve transfers in the 2020 Cash Adjustments to Net Income Proposed Budget. Capital Expenditures $ (2,327) $ 3,030 Debt Service Principal (29,402) (8,455) Chart F illustrates the relative Depreciation 5,416 5,524 percentages of Generation Sys‑ Loan Repayments and Others 1,987 – tem costs transferred to the Estimated Changes in Reserves $ – $ – Electric system as a component of purchased power.

34. 194/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Exhibit 6

Generation System - Combined 2018 2019 2020 Proposed Operating Revenues FTE Results FTE Budget FTE Budget Net Energy Sales Jackson Hydro 30.8 $ 20,584,714 29.8 $ 19,880,774 33.6 $ 11,720,182 Generation System - Other 14,185,332 15,761,196 6,736,332 Youngs Creek 2,052,903 1,965,542 1,941,153 Woods Creek 211,622 183,947 159,636 Renewable Generation 941,360 256,328 1,025,400 Calligan Hydro 1,738,667 1,922,316 1,792,648 Hancock Creek 2,219,010 2,198,535 1,982,408 Total Net Energy Sales $ 41,933,608 $ 42,168,636 $ 25,357,759 Non Operating Revenues Misc Operating Expense Reimbursement 84,385 140,000 - Total Other Operating Revenues $ 84,385 $ 140,000 $ - Total Operating Revenues $ 42,017,993 $ 42,308,636 $ 25,357,759

Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element FTE Results Budget Budget Labor - Straight Time 601100 2,007,213 2,478,537 3,261,814 Labor - Overtime 601200 204,587 89,500 174,500 Travel and Education 605000 40,028 67,377 97,427 Employee Benefits 601300 715,931 - - Insurance and Claims 615100 247,275 220,815 271,654 Materials, Equipment & Supplies 611300 471,210 654,800 2,125,815 Coded Stock Material 611100 22,795 27,500 24,500 Public and Small Works Contracts 614100 405,228 210,000 125,000 Professional Services Contracts 614000 409,071 487,610 807,620 Other Contracted Services 614200 483,212 824,425 749,740 Rents and Utilities 616100 220,249 237,653 239,353 Land, Property and Easements 617000 - 8,750 7,750 Dues, Memberships & Subscriptions 619200 54,130 52,670 65,415 Refunds 619400 56,713 - - Overheads 698000 1,262,171 1,605,464 2,125,306 Total Operating & Maintenance Expenses - $ 6,602,070 - $ 6,965,101 $ 10,075,894 Total Taxes 105,664 - 97,640 - 95,172 - Total Depreciation 5,306,946 5,415,999 5,524,319 Total Generation Operating Expenses $ 12,014,680 $ 12,478,740 $ 15,695,384

Snohomish County PUD | 2020 PROPOSED BUDGET 195/218 35. 2020 Proposed Budget Exhibit 6

Jackson Hydroelectric Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time 601100 $ 1,678,750 $ 2,466,037 $ 3,236,814 Labor - Overtime 601200 193,119 75,000 155,000 Travel and Education 605000 34,902 67,377 97,427 Employee Benefits 601300 688,703 - - Insurance and Claims 615100 200,874 163,793 215,411 Materials, Equipment & Supplies 611300 387,732 543,800 2,065,315 Coded Stock Material 611100 22,795 12,000 12,000 Public and Small Works Contracts 614100 373,382 120,000 40,000 Professional Services Contracts 614000 262,811 383,510 443,470 Other Contracted Services 614200 407,364 663,780 552,495 Rents and Utilities 616100 142,732 137,353 142,353 Land, Property and Easements 617000 597 8,750 7,750 Refunds 619401 1,661 - - Dues, Memberships & Subscriptions 619200 54,130 52,670 65,415 Overheads 698000 1,083,135 1,592,184 2,103,171 Total Operating & Maintenance Expenses $ 5,532,687 $ 6,286,254 $ 9,136,621 Taxes 98,337 83,256 80,087 Depreciation 3,223,821 3,404,039 3,472,120 Jackson Total Operating Expenses $ 8,854,845 $ 9,773,549 $ 12,688,828

Generation System Debt Service Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time 601100 $ 13,228 $ 12,500 $ 25,000 Employee Benefits 601300 1,767 - - Professional Services Contracts 614000 3,658 - - Other Contracted Services 614200 8,007 5,000 15,000 Overheads 698000 6,394 8,000 16,000 Total Operating & Maintenance Expenses $ 33,054 $ 25,500 $ 56,000

Other Generation Operating Expenses $ 33,054 $ 25,500 $ 56,000

36. 196/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Exhibit 6

Renewable Generation Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time 601100 $ 95,226 $ - $ - Travel and Education 605000 3,971 - - Employee Benefits 601300 21,398 - - Professional Services Contracts 614000 120,170 - 327,000 Refunds 619400 58,098 - - Overheads 698000 34,919 - - Total Operating & Maintenance Expenses $ 333,782 $ - $ 327,000

Renewable Generation Total Operating Expenses $ 333,782 $ - $ 327,000

Youngs Creek Hydroelectirc 2018 2019 2020 Proposed Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time 601100 $ 54,356 $ - $ - Labor - Overtime 601200 4,178 6,500 6,500 Employee Benefits 601300 2,032 - - Insurance and Claims 615100 19,583 18,790 20,244 Materials, Equipment & Supplies 611300 22,298 32,000 16,500 Coded Stock Material 611100 - 3,500 2,500 Public and Small Works Contracts 614100 31,846 35,000 85,000 Professional Services Contracts 614000 9,641 40,000 2,100 Other Contracted Services 614200 14,162 30,975 39,875 Rents and Utilities 616100 28,210 25,050 25,050 Refunds 619400 (34) - - Overheads 698000 33,055 1,600 1,685 Total Operating & Maintenance Expenses $ 219,328 $ 193,415 $ 199,454 Taxes 1,043 3,886 3,674 Depreciation 700,398 718,568 732,939 Youngs Creek Total Operating Expenses $ 920,769 $ 915,869 $ 936,068

Snohomish County PUD | 2020 PROPOSED BUDGET 197/218 37. 2020 Proposed Budget Exhibit 6

Woods Creek Hydroelectric Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time 601100 $ 52,336 $ - $ - Labor - Overtime 601200 893 3,000 3,000 Employee Benefits 601300 2,032 - - Insurance and Claims 615100 2,865 3,515 3,597 Materials, Equipment & Supplies 611300 27,732 53,000 21,000 Public and Small Works Contracts 614100 - 5,000 - Professional Services Contracts 614000 1,944 26,500 3,450 Other Contracted Services 614200 11,048 35,125 25,025 Rents and Utilities 616100 6,101 10,000 9,000 Overheads 698000 31,248 960 750 Total Operating & Maintenance Expenses $ 134,848 $ 137,100 $ 65,822 Taxes 401 331 273 Depreciation 40,753 41,782 42,618 Woods Creek Total Operating Expenses $ 176,001 $ 179,213 $ 108,713

Calligan Hydroelectric Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time 601100 $ 59,131 $ - $ - Labor - Overtime 601200 1,622 - 5,000 Insurance and Claims 615100 13,033 19,170 17,018 Materials, Equipment & Supplies 611300 15,044 10,500 10,500 Coded Stock Material 611100 - 6,000 6,000 Public and Small Works Contracts 614100 - 25,000 - Professional Services Contracts 614000 - 18,800 30,800 Other Contracted Services 614200 19,620 42,285 63,685 Rents and Utilities 616100 21,501 32,625 31,825 Overheads 698000 38,087 960 2,030 Total Operating & Maintenance Expenses $ 168,615 $ 155,340 $ 166,858 Taxes 2,787 5,084 5,277 Depreciation 657,423 617,921 630,279 Calligan Creek Total Operating Expenses $ 828,824 $ - $ 778,345 $ 802,414

38. 198/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Exhibit 6

Hancock Hydroelectric Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element Results Budget Budget Labor - Straight Time 601100 $ 54,184 $ - $ - Labor - Overtime 601200 4,775 5,000 5,000 Travel and Education 605000 577 - - Insurance and Claims 615100 10,920 15,547 15,384 Materials, Equipment & Supplies 611300 18,404 15,500 12,500 Coded Stock Material 611100 - 6,000 4,000 Public and Small Works Contracts 614100 - 25,000 - Professional Services Contracts 614000 10,848 18,800 800 Other Contracted Services 614200 23,010 47,260 53,660 Rents and Utilities 616100 21,705 32,625 31,125 Overheads 698000 35,332 1,760 1,670 Total Operating & Maintenance Expenses $ 179,756 $ 167,492 $ 124,139 Taxes 3,097 5,084 5,860 Depreciation 684,552 633,689 646,363 Hancock Creek Total Operating Expenses $ 867,405 $ 806,265 $ 776,362

Generation System - Capital Expenditures 2018 2019 2020 Proposed Results Budget Budget Jackson Hydroelectric Project $ 8,137,838 $ 1,966,008 $ 2,195,104 Renewable Generation 8,334 256,328 698,400 Youngs Creek 161,336 87,858 68,000 Woods Creek (3,069) 16,675 68,000 Calligan Creek 1,038,496 - - Hancock Creek 2,112,127 - - Total Generation System Capital $ 11,455,062 $ 2,326,869 $ 3,029,504

Snohomish County PUD | 2020 PROPOSED BUDGET 199/218 39. 40. 200/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 PROPOSED BUDGET

he Water System is financed and accounted for as a system separate from the Electric and Generation Systems. It operates primarily to provide water T service to approximately 21,500 customers in central Snohomish County. The Water System purchases the majority of the water it sells to customers from the City of Everett. The assets of the system include transmission mains, pump stations, distribution mains and services, supply wells, reservoirs, meters, maintenance fa‑ cilities, and equipment. The Water System is charged for administrative functions provided by the Electric System. ASSUMPTIONS The 2020 Proposed Budget is based on the following assumptions: Water Purchases The majority of the water sold by the PUD is purchased from the City of Everett. The City of Everett wholesale water rates are expected to increase 3.5% in 2020, which is reflected in the budget for purchased water costs. Full-time Equivalent Employees (FTE) The 2020 Proposed Budget includes 1 additional FTE. (Note: Employee figures do not include services provided by the Electric System including accounting and finance, real estate, employee resources, vehicle and equipment maintenance, in‑ formation technology services, telecommunications, legal, contracts, facilities and customer service functions.) Asset Acquisition In 2018, the Water System completed the acquisition of the assets of the Warm Beach Water System, which served about 600 customers. The 2020 Proposed Bud‑ get includes funding for capital and other improvements of the Warm Beach Water System. The 2020 Proposed Budget also includes funding from loans and grants from the Drinking Water State Revolving Fund (DWSRF) to help offset some of the acquisition and costs.

Snohomish County PUD | 2020 PROPOSED BUDGET 201/218 41. COMPARATIVE ANALYSIS Operating Revenues Schedule 3 is a summary comparing the 2020 Proposed Budget for the Water Sys‑ Water retail sales are estimated at $12.5 million. Other operating revenues include tem with the 2019 Budget. $235,000 in property rental and other miscellaneous fees. A proposed 2% rate in‑ crease is planned for 2020. Schedule 3 WATER SYSTEM Operating Expenditures COMPARATIVE FINANCIAL DATA Purchased water costs are budgeted at $3.2 million, an increase of $0.4 million from ($000’s) 2019 levels. Water purchases needed from the City of Everett include the impact of a 2020 3.5% wholesale water rate increase, and planned shutdown of the Lake Stevens well. 2019 Proposed Water purchases are offset partially by production from the PUD’s Lake Stevens Budget Budget Operating Revenues well water treatment facility. Water Retail Sales $ 12,160 $ 12,515 Operating and maintenance expenditures for the 2020 Proposed Budget are higher Water Wholesale Sales 425 477 than 2019 budgeted levels. Other Operating Revenues 355 363 Estimated depreciation of $3.0 million is roughly equivalent to 2019. Depreciation Total Operating Revenues $ 12,940 $ 13,355 is an estimate of the reduced value of the PUD’s fixed assets. Operating Expenses ($000’s) Purchased Water $2,881 $3,240 Contributions are expected to increase in 2020 as a result of a higher level of de‑ Operating & Maintenance 5,401 5,924 veloper activity. Taxes 652 672 Depreciation 2,965 3,024 Cash Adjustments to Net Income Total Operating Expenses $ 11,899 $ 12,861 The 2020 Proposed Budget provides approximately $9.6 million for capital expendi‑ tures and construction projects and features several significant main replacements Net Operating Income $1,041 $495 as well as capital expenditures to bring the Warm Beach system to alignment with Other Income & Expense 713 3,386 PUD service standards. The table below lists the significant capital expenditures Interest Charges (686) (519) included in the 2020 Proposed Budget. Contributions 3,887 3,945 Net Income $ 4,955 $ 7,307 Significant 2020 Water System Construction Projects/Programs Cash Adjustments to Net Income ($000’s) Capital Expenditures $ (5,825) $ (9,664) Warm Beach - Clarence Ave Main Replacement $ 1,568 Debt Service Principal (1,983) (1,825) Warm Beach - Marine Dr Main Replacement 1,191 Depreciation 2,965 3,024 Loans and Other 531 3,180 Walker Hill Reservoir 1 Improvements and Re-coat 1,075 Warm Beach - Soundview Dr Main Replacement 916 Estimated Changes in Reserves $ 643 $ (2,022) Lake Stevens Regional Decant Facility 795

42. 202/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Water System Exhibit 7 Operating and Other Revenue Operating Revenues 2017 2018 2019 2020 Proposed Water Retail Sales Results Results Budget Budget Sale of Water - Retail SF & MF (includes Surcharge) $ 11,479,742 $ 11,696,493 $ 11,532,270 $ 11,867,838 Low Income / Senior Discounts - - (113,000) (116,699) Sale of Water - Commercial 780,544 846,367 741,174 764,158 Total Water Retail Sales 12,260,286 12,542,860 12,160,444 12,515,297

Sale of Water - City of Granite Falls Wholesale 278,533 294,858 259,491 264,681 Sale of Water - City of Arlington Wholesale 96,163 128,252 94,091 95,973 Sale of Water - Other (Snohomish & Goldbar) 118,166 122,053 71,607 116,000 Total Wholesale Water Sales 492,862 545,163 425,189 476,654 Total Water Sales 12,753,148 13,088,023 12,585,633 12,991,951

Other Operating Revenues Lake Roesiger Septic Tank Pumping Revenue 13,522 12,327 13,932 14,141 Property Rental 219,031 234,630 229,895 235,413 OtherMiscellaneous Revenue Receipts & Engineering Fees/Other 111,537 150,108 111,352 113,579 Total Other Revenues 344,090 397,065 355,179 363,133 Total Operating Revenues $ 13,097,239 $ 13,485,088 $ 12,940,812 $ 13,355,084

Other Revenue Interest Income and Expense Investment Income 202,196 362,651 137,928 162,470 Assessments for LUDS Interest 43,828 55,161 44,000 44,000 Subtotal - Interest Income and Other 246,024 417,812 181,928 206,470 Grant Income/Loan Forgiveness - - 531,395 3,179,576

Contributions General Facilities Charges 1,350,935 2,656,655 2,079,929 2,121,527 New Service Connections 332,416 286,292 345,846 352,763 Distribution Service Charges 443,300 480,981 461,209 470,433 Non-Tax Distrubution Charges (5,803) 16,693 - - Non-Cash Contributions/Donated Plant 1,608,735 2,277,404 1,000,000 1,000,000 Subtotal - Contributions 3,729,583 5,718,024 3,886,984 3,944,723 Assessments for LUD Principal 44,837 15,027 132,000 132,000

Snohomish County PUD | 2020 PROPOSED BUDGET 203/218 43. 2020 Proposed Budget Water System Exhibit 8 Operating Expenses Operating Expenses 2018 2019 2020 Proposed Operating & Maintenance Cost Element FTE Results FTE Budget FTE Budget Labor - Straight-time 601100 27.0 $ 2,046,842 27.0 $ 2,219,226 28.0 $ 2,510,422 Labor - Overtime 601200 100,545 130,000 130,000 Travel and Education 605000 9,332 22,400 22,400 Property and Liability Insurance 615100 52,440 155,596 170,602 Rents and Utilities 616100 301,959 336,000 357,000 Postage 619300 25,400 26,500 27,600 Dues, Memberships & Subscriptions 619200 5,101 7,500 7,500 Public and Small Works Contracts 614100 59,977 30,000 30,000 Professional Services Contracts 614000 212,372 167,500 538,500 Other Contracted Services 614200 763,379 820,892 949,988 Materials, Equipment & Supplies 611300 606,406 338,875 343,875 Uncollectible Expense 618000 37,625 60,704 62,576 Coded Stock Material 611100 146,017 60,000 60,000 Land, Property and Easements 617000 23,900 50,000 50,000 Overheads 698000 1,182,529 1,298,656 1,498,355 A&G Credit (256,810) (323,087) (834,834) Total Operating & Maintenance by Cost Element 27.0 $ 5,091,595 27.0 $ 5,400,762 28.0 $ 5,923,984

Purchased Water 2,437,883 2,881,430 3,240,372 Taxes 687,658 652,140 671,761 Depreciation 2,907,000 2,965,000 3,024,443

Total Operating Expense $ 11,124,136 $ 11,899,332 $ 12,860,561

44. 204/218 Snohomish County PUD | 2020 PROPOSED BUDGET 2020 Proposed Budget Water System Exhibit 9

EXHIBIT 9- PUD NO. 1 OF SNOHOMISH COUNTY - 2020 WATER UTILITY CAPITAL BUDGET

19.0% Contracted Services

Other Donated Materials / Contracted Utility / Rental Land & PROJECT DESCRIPTION PHASE Plant Labor ST Labor OT Coded Stock Vehicles PSC PWC Services Expense Easements Permits Overheads TOTAL

Design & Crew Inspection for Donated Plant 0 140,000 10,000 15,000 9,098 0 0 0 0 1,000 9,054 115,848 300,000 Donated Plant 1,500,000 0 0 0 0 0 0 0 0 0 0 0 1,500,000 CIP #43 - 32nd St SE / SR 9 Main Replacement Design / Construction 0 7,100 0 0 307 0 53,000 1,000 0 500 1,000 12,093 75,000

CIP #52 - Warm Beach - Soundview Dr Main Replacement Design / Construction 0 35,000 0 0 7,000 55,000 694,000 1,000 0 0 5,857 118,143 916,000 CIP #53 - Warm Beach - Marine Dr Main Replacement Design / Construction 0 55,000 0 0 10,000 65,000 899,000 0 0 1,000 1,964 159,036 1,191,000

CIP #54 - Warm Beach - Clarence Ave Main Replacement Design / Construction 0 65,000 0 0 25,000 71,000 1,200,000 0 0 1,000 857 205,143 1,568,000 CIP #55 - Warm Beach - Kayak Intertie Design / Construction 0 25,000 0 0 20,000 10,000 410,000 4,036 0 1,000 500 72,464 543,000 CIP #56 - Downtown LS Festival St Main Extension Design / Construction 0 30,000 0 1,000 35,100 5,000 0 409 0 0 500 27,991 100,000

CIP #57 - Warm Beach Misc Improvements (10 Hydrants) Design / Permitting 0 2,591 0 0 0 0 0 393 0 0 0 2,016 5,000

CIP #98 - Forced Right of Way Relocations / Replacements Design / Construction 0 30,000 0 5,000 27,000 2,685 0 1,788 0 0 5,000 28,527 100,000 CIP #106 - Warm Beach Well 4 Replacement Design / Construction 0 8,300 0 0 4,279 0 80,000 0 0 0 0 16,421 109,000 CIP #107 - Small System Well Spare Parts (Pump, motor, wire) Design / Construction 0 5,000 0 0 257,321 0 0 0 0 0 0 34,679 297,000 CIP #202 - Kayak Reservoir 2 Design / Permitting 0 8,500 0 0 0 10,000 0 0 0 9,143 5,000 9,357 42,000 CIP #203 - Walker Hill Reservoir 1 Improvements and Re- coat Design / Permitting 0 15,000 0 0 5,000 130,000 795,500 0 5,250 0 500 123,750 1,075,000 CIP #300 - Misc. Meter Replacement Program Design / Construction 0 10,000 0 20,000 0 0 0 1,286 0 500 0 13,214 45,000 CIP #301 - Vehicles and Equipment Material Purchase 0 3,000 0 1,575 68,500 0 0 0 0 0 0 10,925 84,000 CIP #302 Misc Power Operated Equipment Material Purchase 0 1,320 0 0 30,069 0 0 0 0 0 0 4,611 36,000 CIP #304 Misc Tools and Equipment Material Purchase 0 454 0 0 10,001 0 0 0 0 0 0 1,545 12,000 CIP #305 - New Services Design / Construction 0 63,000 15,000 85,000 20,000 0 0 2,748 0 0 5,395 78,857 270,000 CIP #310 - Warm Beach Water Treatment and SCADA Upgrades Design / Permitting 0 10,000 0 0 0 127,000 0 0 0 0 143 22,857 160,000 CIP #312 - Lake Stevens Treatment Corrosion Control Optimization Construction 0 20,000 0 0 50,766 5,000 300,000 1,555 5,000 0 0 58,679 441,000 CIP #313 - Lake Stevens Regional Decant Facility Design / Construction 0 10,000 0 0 0 90,000 600,000 450 0 0 3,657 90,893 795,000

TOTAL CAPITAL TO PLANT: 1,500,000 544,265 25,000 127,575 579,441 570,685 5,031,500 14,665 10,250 14,143 39,427 1,207,050 9,664,000

Snohomish9/3/2019 County PUD | 2020 PROPOSED BUDGET 205/218 45. 46. 206/218 Snohomish County PUD | 2020 PROPOSED BUDGET 207/218 Snohomish County PUD | 2020 PROPOSED BUDGET 208/218 SNOHOMISH COUNTY PUD • 2020 PROPOSED BUDGET • SNOPUD.COM

BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 6

TITLE

CEO/General Manager’s Report

SUBMITTED FOR: CEO/General Manager’s Report

CEO/General Manager John Haarlow 8473 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

The CEO/General Manager will report on District related items.

List Attachments: None

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BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 7A

TITLE

Commission Reports

SUBMITTED FOR: Commission Business

Commission Melissa Collins 8616 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT:

The Commissioners regularly attend and participate in meetings, seminars, and workshops and report on their activities.

List Attachments: None

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BUSINESS OF THE COMMISSION

Meeting Date: October 7, 2019 Agenda Item: 8A

TITLE

Governance Planning Calendar

SUBMITTED FOR: Governance Planning

Commission Melissa Collins 8616 Department Contact Extension Date of Previous Briefing: Estimated Expenditure: Presentation Planned

ACTION REQUIRED:

Decision Preparation Incidental Monitoring Report Policy Discussion (Information) Policy Decision Statutory

SUMMARY STATEMENT: Identify the relevant Board policies and impacts:

Governance Process, Agenda Planning, GP-4: To accomplish its job products with a governance style consistent with Board policies, the Board will follow an annual agenda ….

The Planning Calendar is enclosed for Board review.

List Attachments: Governance Planning Calendar

211/218 Governance Planning Calendar – 2019

To be Scheduled To be Scheduled

• Community Choice Aggregation (CCA) • Monthly Performance Dashboard

• 2020 Reliability Update • SAP Platform (Workshop)

• Energy Efficiency (2018 Review/2019 Overview) • Pole Attachment Rates (Fall 2019) • Real Estate Properties • WPUDA Membership Pros/Cons • AMI Workshop (1st Quarter 2020)

**For Planning Purposes Only212/218 and Subject to Change at any Time** Governance Planning Calendar – 2019

October 7, 2019 October 9, 2019 Morning Session: Special Meeting: • Community Engagement • Celebration/Dedication at Youngs Creek in • Low-Income Update Honor of District Employee Danny Miles • Public Power Council (PPC) Briefing on Energy Northwest (ENW)

Afternoon Session: • Public Hearing: Open 2020 Proposed Budget Hearing • Governance Planning Calendar

**For Planning Purposes Only213/218 and Subject to Change at any Time** Governance Planning Calendar – 2019

October 16, 2019 October 22, 2019 Special Meeting: Morning Session: • Board Workshop – Governance Policy • Community Engagement Review • Energy Risk Management Report – 3rd Quarter • Water Supply Update

Afternoon Session: • Public Hearing: Schedule 200 (net metering clean up) • Governance Planning Calendar

**For Planning Purposes Only214/218 and Subject to Change at any Time** Governance Planning Calendar – 2019

October 29, 2019 Special Meeting: • Workshop - Customer Experience

**For Planning Purposes Only215/218 and Subject to Change at any Time** Governance Planning Calendar – 2019

November 5, 2019 November 19, 2019 Morning Session: Morning Session:

• 2020 Water Rates Presentation • Community Engagement • Community Engagement

Afternoon Session: Afternoon Session: • Public Hearing: • Public Hearing: Continue Public Hearing on the 2020 Continue Public Hearing on the 2020 Proposed Budget Proposed Budget including Detailed Capital Review and Planning • Public Hearing and Action: 2020 Water Rates Schedule 200 (net metering) • Adopt Regular Commission Meeting • Monitoring Report: Dates for the Year 2020 3rd Quarter Financial Conditions and • Governance Planning Calendar Activities Monitoring Report

• Governance Planning Calendar

**For Planning Purposes Only216/218 and Subject to Change at any Time** Governance Planning Calendar – 2019

December 3, 2019 December 17, 2019 Morning Session: Morning Session: • Community Engagement • Community Engagement • Kurt Miller, Executive Director – Northwest RiverPartners • 2019 Audit Summary Afternoon Session: Afternoon Session: • • Public Hearing: Public Hearing and Action:  st Continue Public Hearing on the 2020 Disposal of Surplus Property - 1 Proposed Budget Quarter Adopt 2020 Budget • Public Hearing and Action: Confirm Final Assessment Roll for LUD Adopt 2020 Water Rates No. 62 • Monitoring Report: • Adopt 2020 Governance Planning Financial Planning and Budgeting Calendar Monitoring Report • Elect Board Officers for the Year 2020 • Proposed 2020 Governance Planning Calendar

**For Planning Purposes Only217/218 and Subject to Change at any Time** 2019 Year-at-a-Glance Calendar

January February March April S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 1 2 3 4 5 6 1 2 3 4 5 1 2 3 4 5 6 7 8 9 7 8 9 10 11 12 13 6 7 8 9 10 11 12 3 4 5 6 7 8 9 10 11 12 13 14 15 16 14 15 16 17 18 19 20 13 14 15 16 17 18 19 10 11 12 13 14 15 16 17 18 19 20 21 22 23 21 22 23 24 25 26 27 20 21 22 23 24 25 26 17 18 19 20 21 22 23 24 25 26 27 28 29 30 28 29 30 27 28 29 30 31 24 25 26 27 28 31

May June July August S M T W T F S S M T W T F S S M T W T F S S M T W T F S 5 6 7 8 9 10 11 2 3 4 5 6 7 8 1 2 3 4 5 6 4 5 6 7 8 9 10 12 13 14 15 16 17 18 9 10 11 12 13 14 15 7 8 9 10 11 12 13 11 12 13 14 15 16 17 19 20 21 22 23 24 25 16 17 18 19 20 21 22 14 15 16 17 18 19 20 18 19 20 21 22 23 24 26 27 28 29 30 31 23 24 25 26 27 28 29 21 22 23 24 25 26 27 25 26 27 28 29 30 31 30 28 29 30 31

September October November December S M T W T F S S M T W T F S S M T W T F S S M T W T F S 1 2 3 4 5 6 7 1 2 3 4 5 1 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 6 7 8 9 10 11 12 3 4 5 6 7 8 9 8 9 10 11 12 13 14 15 16 17 18 19 20 21 13 14 15 16 17 18 19 10 11 12 13 14 15 16 15 16 17 18 19 20 21 22 23 24 25 26 27 28 20 21 22 23 24 25 26 17 18 19 20 21 22 23 22 23 24 25 26 27 28 29 30 27 28 29 30 31 24 25 26 27 28 29 30 29 30 31

Holiday

Commission Meeting

218/218