AGENDA BENTON COUNTY PUBLIC UTILITY DISTRICT NO. 1 COMMISSION MEETING

Tuesday August 28, 2018 9:00 a.m. 2721 West 10th Ave., Kennewick

1. Pledge of Allegiance

2. Initiative 1631, Cancellation of Public Hearing Scheduled for August 28th, 9:00 a.m. Action Item/Chad Bartram/Commission (pg.3)

3. Initiative 1631, Setting Public Hearing for September 11, 2018, 9:00 a.m. Action Item/Chad Bartram/Commission (pg.3)

4. Public Comment (Public in attendance should read the “Guidelines for Public Participation at Commission Meetings”, available the day of the meeting, or at www.bentonpud.org, Guidelines.

5. APPROVAL OF CONSENT AGENDA (All matters listed within the Consent Agenda have been distributed to each member of the Commission for reading and study, are considered to be routine, and will be enacted by one motion of the Commission with no separate discussion. If separate discussion is desired by any member of the Commission, that item will be removed from the Consent Agenda and placed on the Regular Agenda by request.) a) Commission Minutes of August 14, 2018. (pg.4) b) Periodic Travel Report dated August 28, 2018. (pg.9) c) Vouchers dated August 28, 2018. (pg.10) d) Resolution No. 2471, Approving PURMS Revised Resolution No. 6-7-18-1 and 2018 Amendments to PURMS Interlocal Agreement. (pg.27) e) Bank of America, Contract Award Recommendation. (pg.51) f) Bid Package No. 18-14, Construction of 15’x18’ Stucco Building and Installation of Chiller/Boilers, Reject all bids. (pg.107) g) Vincent Brothers, LLP, Project Completion and Acceptance. (pg.108) h) Jobs Report to Commission dated August 1, 2018. (pg.110)

6. REPORT FROM MANAGEMENT

7. BUSINESS AGENDA

a) DJ’s Electrical, Inc – Joint Use – NESC Compliance and Cable Replacement Construction Project – Contract Change Order No. 4, Contract No. 17-07 Action Item/Evan Edwards/Rick Dunn (pg.113) b) Orchard View North Feeder - Work Order 523432 Action Item/Mike Irving/Rick Dunn (pg.117) c) Financial Forecast Presentation Info. Only/Jon Meyer/Keith Mercer (pg.119) 1

d) Resolution No. 2472 Amending the 2018 Budget Action Item/Jon Meyer/Keith Mercer (pg.120) e) Performance Measurement – 2nd Quarter 2018 Report Info. Only/Jon Meyer/Kent Zirker (pg.133) f) July 2018 Financial Statements Info. Only/Kent Zirker (pg.159)

8. Other Business

9. Future Planning

10. Meeting Reports

11. Executive Session

(To request an accommodation to attend a commission meeting due to a disability, contact [email protected], or call (509) 582-1227, and the District will make every effort to reasonably accommodate identified needs.)

2 X Business Agenda Second Reading I Consent Agenda

I nfo Only/Possible Action lnfo Only

COMMISSION MEETING AGENDA ITEM

Subject: lnitiative L63L - Cancellation of August 28,2018 Public Hearing at 9:00 a.m lnitiative 1631 - Setting Public Hearing for September LL, 2018 at 9:00 a.m Agenda ltem No 2and3

Meeting Date: August 28,2018

Presented by: Chad B. Bartram Stoff Presenting ltem

Approved by (dept): Chad B. Bartram Director/Monager

Approved for Chad B G e ne ra I M o nage r/Asst G M Commission review:

Motion for Commission Consideration: Motion cancelling the Publíc Hearing on lnitiative 1631 scheduled for 9:00 a.m. on August 28,2OI8

Motion setting the Public Hearing on Tuesday, September 1.1,,2018, at 9:00 a.m. at the Administration Office of Benton PUD, 272! West 10th Avenue, Kennewick, Washington, for the purpose of hearing discussion and receiving public comment on a proposed resolution opposing lnitiative L63L, known as the Protect Washington Act.

Recom mendation/Background Due to unanticipated District issues, staff recommends cancelling the public hearing scheduled for today and setting a new public hearing on lnitiative 163L for September Lt,2OI8 at 9:00 a.m.

The Public Hearing originally scheduled for August 28,2018 was not publicly noticed by legal ad or news release prior to staff's determination to not hold the Hearing today, therefore no public cancellation in advance of today's meeting was needed. Today's commission meeting agenda and packet was distributed to the Commission and published on the District's website on Thursday, August 23, 2018, and the agenda included the recommendation to cancel today's Hearing and set the new Hearing date. Each commissioner was also individually contacted by District staff.

Summarv The public hearing on lnitiative 1631 is recommended to be held on September 1I,20L8, at 9:00 a.m

Fiscal lmpact No fiscal impact.

3 PUBLIC UTILITY DISTRICT NO. 1 OF BENTON COUNTY

Date: August t4,2OL8 Time: 9:00 a.m. Place 2721-West L0th Avenue, Kennewick, Washington

Attendees: Commissioners Bush, Hall and Sanders General Manager Bartram Assistant General Manager Hunter Legal Counsel Hultgrenn Senior Director of Engineering and Power Management Dunn Director of Finance Meyer Director of Customer Programs and Services Ball Director of lT and Broadband Services Folta Manager of Communications and Governmental Relations Miller Manager of Customer Service McAloon Manager of Power Contracts & Analytics/Treasurer White Manager of Human Resources Wenner Manager of Conservation & Renewable Energy Programs Johnson Manager of Contracts & Purchasing Ochweri Manager of Business Applications Holbrook Manager of Accounting Zirker Manager of Risk Management & Treasury Mercer Supervisor of lT lnfrastructure Crum Power and Energy Programs Analyst Dykes Supervisor of Executive Administration Cole Roxanne Weller, Department Specialist - Power Management

Guest: Dennis Walters, Dana Engineering

The Pledge of Allegiance was given

Pubfic Hearing -zOLg Draft lntegrated Resource Plan (lRP) Commission President Barry Bush called the Public Hearing to order at 9:00 a.m., and stated the purpose of today's meeting was to hear discussion and allow for public comment on the District's consideration to adopt a resolution approving its 20L8 lntegrated Resource Plan.

Senior Director of Engineering and Power Management gave an executive summary review of the IRP and discussed the recommended action plan which did not change since the IRP was

Commission Meeting Minutes August 14,2018 Page 1 of5

4 presented at the July 24,20L8 commission meeting. No questions or discussion was held by the Commission.

At 9:L0 a.m., Commission President Barry Bush opened the meeting for public comment and none were received; the public hearing was closed at 9:l-1" a.m.

Senior Director thanked Power and Energy Programs Analyst Dykes and Manager of Conservation & Renewable Energy Programs Johnson for their assistance in developing the lRP.

Resolution No. 2468, 2018 lntegrated Resource Plan Senior Director recommended the Commission approve a resolution adopting the 2018 lntegrated Resource Plan.

Motion by Lori Sanders, seconded by Barry Bush adopting Resolution No. 2468, approving the District's 2018 lntegrated Resource Plan. MOTION CARRIED UNANIMOUSLY.

Safety Minute Roxanne Weller, Department Specialist - Power Management, gave a one minute for safety presentation on stretching techniques to help prevent injuries,

Public Comment Mr. Dennis Walter, Dana Engineering, commented on the safety presentation, noting stretching was a good means of greatly reducing strains and sprains.

Treasurer's Report Treasurer reviewed the July 20L8 Treasurer's Report. The Commission accepted the July 20L8 Treasurer's Report, The counterparty credit and sector reports were distributed and briefly reviewed.

Consent Agenda Motion by Lori Sanders, seconded by Jeff Hall by to approve the Consent Agenda as follows: a) Approving Commission Meeting Minutes of July 24,20L8. b) Approving Periodic Travel Report dated August L4,20t8. c) Approving Vouchers audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims certified as required by RCW 42.24.090, have been recorded on a listing made available to the Commission. As of this date, the Commission does approve the following for payment: Accounts Payable: Automated Clearing House (DD) payments 69709-69729 69886-69946 in the total amount of 5902,01.2.92, Checks & Customer Refund payments (CHK) 74O5L-74234 in the total amount of 5906,923.45, Electronic Fund Transfer (WIRE) payments 457I-4588 in the total amount of $7,707,617.42; Residential Conservation Rebates: Credits on Customer Accounts in the total amount of SL40.00; Payroll: Direct Deposit 07/26/tB 69730-69885 in the total amount of 5344,313.90, for a grand total of

Commission Meeting Minutes August 14,2018 Page 2 of5

5 59,861,007.69. Voided checks for July 2018 in the total amount of 590.36 were included on the report. d) Adopting Resolution No. 2469, appointing Treasurer for the District effective August L4, 2018. e) Adopting Resolution No.2470, approving the Authority to lssue Checks or Warrants and lnitiate Electronic Funds Transfers (EFTs), by District employees and Commission appointed positions effective August 14, 2018. f) Amending Resolution No.2467, adding the Total Compensation Philosophy Statement, effective July 24, 2018. g) Cancelling Resolution No. 2066, Establishing the Accounting for Hedging Activities Related to the Purchase and Sale of Energy. h) Approving the amended Designation of Representatives to Various Organizations for 2018, changing various organizational representatives as presented today. i) Reviewing 20IB-20!9 Strategic Plan - 2nd Quarter Report. j) Reviewing Conservation Rebate Report - 2nd Quarter Report. MOTION CARRIED UNANIMOUSLY.

Business Agenda

Presentation on ElectroMagnetic Pulses (EMP) Mr. Walters gave a presentation on high-altitude electromagnetic pulses and what they do. A discussion was held with the Commission on impacts to the electrical grid.

At 10:05 a.m., Commission President Barry Bush announced that the commission meeting would recess for 10 m¡nutes.

At 10:15 a.m., Commission President Barry Bush reconvened the commission meeting into regular open public session.

Management Report Assistant General Mo noger: 1) The Bofer Canyon fire that impacted the Canyon Lakes area and surrounding lands destroyed 23 poles. Repairs to District facilities are anticipated to be completed in L-2 weeks. Manager of Communications attended a press conference with the City of Kennewick, fire, police and staff, and other first responders. PUD crews were complimented for their work during the extreme conditions, and expressions of thanks were given on the District's community partnership with the fire departments and the City of Kennewick. A copy of a letter from Marie Mosley, Kennewick City Manager, was distributed.

Senior Director of Engineering ond Power Monogement: L. An update was given on the state of the Bonneville Power Administration (BPA) Tri- Cities area load, imports and generation going into the recent heat wave. A news release from (BPA) was distributed which addresses how BPA is ready to meet the hot weather energy

Commission Meeting Minutes August 14,2018 Page 3 of5

6 demands. Handouts illustrating the volatility and high prices experienced in the day ahead wholesale electricity markets during the heat wave were distributed and briefly reviewed.

Monoger of Power Contracts & Anolytics: L The Commission was updated on BPA's financial position for the fiscal year (FY) ending September 30, 2018, noting BPA's third quarter forecast for a Slice true-up credit and Benton PUD's share would be a credit of 5516,000 in 2018, BPA recently provided an initial projection for the tYZO/2t rate increases, which showed a potential 5% increase in power and L0% increase in transmission. A brief discussion was held on the upcoming rate case.

Director of Finonce: 1. An update was given on the RFP that was issued this summer for banking services and a line of credit. The District is currently working on creating contracts with the apparent successful proposer, Bank of America. Contracts for these services will be brought forward for Commission approval at an upcoming meeting.

2. A lengthy resolution on PURMS will be broughtto the next commission meeting, making several housekeeping changes.

Director of Customer Progroms ond Services: 1,. The Commission was updated on the sale of Trios to RCCH, which occurred on August 3, 2018. Final bills have been rendered and were delivered to the Trios Accounts Payable Department. District staff will continue to monitor the remaining Trios bills until they are paid.

Manoger of Conservation & Renewable Energy Programs: L. The OIE and Ely Community Solar Project newsletters were distributed and briefly reviewed. 2. Rooftop solar FAQs were distributed and discussed.

Business Agenda (continued)

Southridge Substation Property, 6190 West Brinkley Road, Kennewick, Washington Senior Director recommended the Commission approve the purchase of real property located at 6190 West Brinkley Road, Kennewick, Washington. This property is needed for future electrical requirements in the Southridge area.

Motion by Lori Sanders, seconded by Jeff Hall authorizing the General Manager, on behalf of the District, to sign Agreement to Purchase and Sell Real Estate, Contract No. L8-2L-Lt2, and any other documents necessary, to complete the purchase of approximately 3.31- acres of property adjacent to the District's existing Southridge Substation property located at 6190 West Brinkley Road in Kennewick, Washington, in the amount of S259,555, plus any additional fees and taxes relating to property closing. MOTION CARRIED UNANIMOUSLY.

Commission Meeting Minutes August 14,2018 Page 4 of5

7 Discussion on lnitiative 1631, 'Îhe Protect Washington Act" General Manager stated that this presentation was to continue to provide information to the Commission relating to lnitiative 1-631 (lnitiative) and its potential impacts to the District and the District's customers.

Power and Energy Programs Analyst gave a presentation on the lmpacts of lnitiative 1631, and concluded by reviewing staff assumptions.

General Manager asked if the Commission had a preference concerning whether to take a position on the lnitiative or take no position. The Commission communicated a preference to oppose the lnitiative, subject to a public hearing. General Manager distributed a draft resolution which was reviewed in detail to ensure it met the intent of the Commission. Concerning the financial impacts of the lnitiative, Commissioner Lori Sanders suggested that the analysis consider the emission factor used in l-732 for unspecified market purchases. Commissioner Barry Bush asked if the lnitiative cost impacts and other cost impacts could b broken out on customer bills. THIS PUBLI( HEARING WILLNOT Motion by Lori Sanders, seconded by Jeff Hall setting a public hearing for Tuesday, August OCCUR AND IS BEING ue 2018, at 9:00 a.m., at the administration office of Benton PUD, 2721, West l-Oth Aven CANCELLET Kennewick, Washington, for the purpose of hearing discussion and receiving public comm THE on a proposed resolution, opposing lnitiative 163L, known as the Protect Washington Act. MORNING O Aucust 2Br MOTION CARRIED UNANIMOUSLY.

General Manager recommended the Perforrnance Measures Report for the 2nd quarter be moved to the next comrnission meet¡ng and the Commission concurred.

At 12:10 p.m., Commission President Barry Bush announced that the Commission would go into executive session with legal counsel for 10 minutes for the purpose of discussing potential litigation.

At 12:20 p.m,, Commission President Barry Bush announced that the Commission would reconvene into regular open public session.

Hearing no objection, Commission President Barry Bush adjourned the Commission Meeting L2:20 p.m.

Barry A, Bush, President ATTEST

Lori Kays-Sanders, Secretary

Commission Meeting Minutes August 14,2018 Page 5 of5

8 Períodic Trøvel Report - August 28, 2018

Date Størt Business Døys Nøme C¡ry Purpose

7t27t20'18 Burrus, Rob Tigard, OR PICK UP TRUCK AT TERREK FACILITY

8t21t2018 Swanson, Michelle Walla Walla, WA NISC ABS INVENTORY / PURCHASING MANAGEMENT WORKSHOP

8t21t2018 Judy, Jay Walla Walla, WA ABS INVENTORY WORKSHOP

8t22t2018 Lanphear, Levi Walla Walla, WA NISC ABS INVENTORY / PURCHASING MANAGEMENT WORKSHOP

8t22t2018 Newell, Paula Walla Walla, WA NISC ABS INVENTORY / PURCHASING MANAGEMENT WORKSHOP

8t23t2018 Zirker, Kent Walla Walla, WA NISC ABS INVENTORY / PURCHASING MANAGEMENT WORKSHOP

8127120'.t8 2 Johnson, Chris Spokane, WA BPA REGIONAL UTILITY ROUNDTABLE

8t27t2018 2 Fischer, Kevin Spokane, WA BPA REGIONAL UTILITY ROUNDTABLE

8t27t2018 2 Mapes, Terry Spokane, WA BPA REGIONAL UTILITY ROUNDTABLE

8t27t2018 2 Philipp, Nancy Spokane, WA BPA REGIONAL UTILITY ROUNDTABLE

9t5t2018 2 Johnson, Chris Portland, OR PACKWOOD PROJECT ANNUAL MEETING

9t12t2018 2 Johnson, Chris Puyallup, WA WHITE CREEK BUDGET FINANCE COMMITTEE MEETING

912312018 5 Diaz, Jesus Destin, FL SURVALENT TECHNOLOGIES

9t23t2018 5 Tharp, John Destin, FL SURVALENT TECHNOLOGIES

9t25t20't8 3 Sidwell, Kayla Spokane, WA WA GOVERNOR'S SAFETY CONFERENCE

9t26t2018 2 Aldrich, Justin Spokane, WA WA GOVERNOR'S SAFETY CONFERENCE

9t26t2018 2 lsakson, Robert Spokane, WA WA GOVERNOR'S SAFETY CONFERENCE

Tuesdøy, August 21, 2018 Page I ofI 9 I

PAYMENT APPROVAL August 28,2018

The vouchers presented on this Payment Approval Report for approval by the Board of Commissioners have been audited and certified by the auditing officer as required by RCW 42.24.080, and those expense reimbursement claims by officers and employees have been certified as required by RCW 42.24.090.

Type of Payment Startinq # End¡ns # Paoe # Amount Accounts Payable: Automated Clear¡ng House (DD) Payments 701 05 70r69 1-7

s 1.059.400.58 Checks & Customer Refund Payments (CHK) 74235 74302 8-13 $ 247,713.01 Electronic Fund Transfer (WIRE) Payments 4591 4596 14-15 4598 4598 15 $ 370.757.59 Residential Conservation Rebates: Credits on Customer Accounts 16 $ 960.00 Purchase Card Deta¡l: Pavroll Direct Depos¡t - 08/09/18 69947 70104 $ 342,920.72

TOTAL $ 2,021.751.90

Void DD Voirl Checks Auqust-1 I B $ 313.91 Void W¡res

t, the undersigned Aud¡tor of Public lJtility District No. 1 of Benton County, do hereby certify under penalty of periury that the materials have been fumished, fñe seryices rendered, or the tabor performed as described, or that any advance payment is due and payable pursuant to a contract or is availabte as an option for fult or partial fullillment of a contractual obligation, and that the claims identified ¡n th¡s repoft are just, due and unpaid obligat¡ons aga¡nst the District and that I am authorized to authenticate and ceft¡fy to said claims.

Jon L. Meyer, Auditor Date

by: Approved by:

Chad B. Bartram, Manager Bany A. Bush, President

Jeffrey D. Hall, Vice-President

Lo r¡ Kay s-S a n de rs, Secretary

10 BENTON COUNTY PUD NO. I Revision:92859 0812012018 8:08:56 AM Accounts Payable Page I Check Register

081061201 8 To 0811912018 Bank Account: I - Benton PUD ACH/Wire Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount

70105 08/08/2018 DD 2872 AWREHN&ASSOC COBRA 66.00 COBRA 66.00 Total for Check/Tran - 70105: 132.00

70106 08/08/2018 DD t736 A W REHN & ASSOCIATES, INC. Flex Spending Health Care 2,356.82 Flex Spending Dependent Care 1,024.49 Total for Check/Tran - 70106: 3,381 .31

70107 08/08/2018 DD 4'.75 ABM JANITONAL SERVICES wall spotting - extra cleaning 169.74 wall spotting - extra cleaning 628.26 Total for Check/Tran - 70107 : 798.00

70108 08/08/2018 DD 9r2 ACCURATE CALIBRATION SERVICES, L Annual Calibration and Certification -107.50 Annual Calibration and Certification 1,357.50 Total for Check/Tran - 70108: 1,250.00

70109 08/08/2018 DD 963 ANIXTERINC. material 3.90 material 125.98 material 2,732.81 material 2r5.03 material 2,440.78 Total for Check/Tran - 70109: 5,518.50

70110 08/08/2018 DD 811 AUS WEST LOCKBOX weekly svc 21.94 weekly svc 44.24 weekly svc 40.61 weekly svc 30.52 weekly svc 41.35 Total for Checl¡/Tran - 70110: 178.66

70111 08/08/2018 DD I 328 CHAD BARTRAM TEA NW PartnersÆPC/PNUCCÆortland Group 828.81

701 12 08/08/2018 DD 2032 ROBERT BURRUS Pick up Truck at Terrex Facility 18.00

70113 08/08/2018 DD 460 CDW GOVERNMENT,LLC Dell Precision 3520 Laptop t,567.r0

70114 08/08/2018 DD 2985 CHINOOK HEATING & AIR,INC. REEP 600.00

51204 /pro/rpttemplate/acctlZ.4l.l / ap/ AP _CHK_REGISTER.xml.rpt 11 BENTON COUNTY PUD NO. 1 Revision:92859 08120/2018 8:08:56 AM Accounts Payable Page2 Check Register

081061201 8 To 081 I9l20L8 B¡nk Account: I - Benton PIID ACH/lVire Check / Pmt Tr¡n D¡te Type Vendor Vendor Name Reference Amount

70115 08/08/2018 DD 2680 CO-ENERGY Gasoline svc 6t3.96

70116 08/08/2018 DD 375 DAYCO TIEATING & A/C REEP 600.00 REEP 600.00 Total for Check/Tr¡n - 70116: 1,200.00

70117 08/08/2018 DD 3732 JAMES DYKES Portland Grp Mtg 80.00

70118 08/08/2018 DD 3742 EMPLOYMENT SCREENING SERVICES, I Screening Svc 204.50 Screening Svc 140.00 Tot¡l for Check/Tr¡n - 701lE: 344.50

70119 08/08/2018 DD 3175 FRONTIER COMMUNICATIONS NW INC. monthly billing 89. l0

70120 08/08/2018 DD 79 GENERAL PACIFIC,INC. material 4,724.10 CONN. PED./ CLEAR 4 POS 371.87 CONN. PED./ CLEAR 4 POS 1,001.18 Tot¿l for Check/Tran - 70120: 6,097.15

70121 08/08/2018 DD 88 GRAYBAR ELECTRIC CO, INC. Port Terminal 100' 1,523.01

70122 08/08/2018 DD 3t7t JODI HENDERSON PPC Mtg 325.85

70123 08/08/2018 DD 3018 HRAVEBATRUST MSA / VEBA TruSt 22,600.00

70124 08/08/2018 DD l8l8 IBEWLOCAL 77 IBEW Part-Time Dues Assessment 8.95 IBEW BA Dues Assessment 5,337.92 IBEW A Dues Assessment 2.949.41 Total for Checl¡/Tran - 70124: 8,296.28

70125 08/08/2018 DD 1632 INTERCONTINENTAL EXCI{ANGE, INC. E Confirm Charges 07118 66.00 Ice Trade Vault Charge 07/18 375.00 Total for Checl¡/Tran - 70125: 441.00

70126 08/08/2018 DD 2t4 JACOBS & RHODES REEP 1,200.00 REEP 600.00 REEP 1,200.00 REEP 1,200.00

51204 /pro/rpttemplate/ac ctlz.4 1.1 / apl AP _CHK_REGISTER.xml.rpt 12 BENTON COUNTY PUD NO. I Revision:92859 08/20/2018 8:08:56 AM Accounts Payable Page 3 Check Register

081061201 8 To 0811912018 Bank Account: I - Benton PUD ACH/Wire Check / Pmt Tran Date Typ" Vendor Vendor Name Reference Amount

REEP 600.00 REEP 1,200.00 REEP l,200-00 REEP 600.00 Tot¡l for Check/Tran - 70126 7,800.00

70127 08/08/2018 DD 103 KENNEWICK, CITY OF Occupation Tax 07/18 432,729.95

70128 08/08/2018 DD ll0 MCFARLAND CASCADE CO. rnaterial 9,265.'75 Poles 20384.22 Total for Check/Tran - 70128: 29,649.97

70129 08/08/2018 DD 888 KAREN MILLER WPUDA 3',76.51

70130 08/08/2018 DD 919 NOANET reapir fìber 3,62't.24

70131 08/08/2018 DD 585 PARADISE BOTTLED WATER CO monthly billing 1,192.21 monthly billing 662.79 monthly billing 98'7.64 Total for Check/Tran - 70131 2,842.64

70132 08/08/2018 DD r24l PARAMOT]NT COMMT]NICATIONS, INC. EMAC 9,278.24 EMAC 939.39 Columbia River Electric 3,571.20 Columbia River Electric 950.25 Amon Creek Elementary 2t,214.62 Amon Creek Elementary 982.83 Total for ChecklTran -70132:. 36,936.53

70133 08/08/2018 DD 3837 PLANETERIA MEDIA LLC PSA 200.00

70134 08/08/2018 DD 587 RAINES ELECTRIC, INC. meter repair - Benton City 606.96

70135 08/08/2018 DD 821 SCHWEITZER ENGINEERING LABORAT SEL-35 lR Feeder Recloser Control 4,925.01 SEL-35 lR Feeder Recloser Control 4,925.01 Total for Check/Tran - 70135: 9,850.02

5t204 /pro/rpttemplate/acctl2.4 l.l I apl AP _CHK_REGISTER.xml.rpt 13 BENTON COLINTY PUD NO. I Revision:92859 0812012018 8:08:56 AM Accounts Payable Page 4 Check Register

081061201 8 To 081 I9l20I8 Bank Account: I - Benton PUD ACH/Wire Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount 70136 2154 professional 08/08/2018 DD SENSUS USA,INC. Svc 7,602.00 Meter, Sensus 25 iConA 2004 Residential 375.85 Total for Check/Tran - 70136: 7,977.85

70137 08/08/2018 DD 3067 STOEL RIVES, LLP Profèssional Svc 412.50

70138 08/08/2018 DD 3696 SUMMIT LAW GROUP, PLLC Professinal Svc 457.50

70139 08/0s/20rs DD 3001 TALEMETRY INC. HireDesk Corp Professional Users -605.01 HireDesk Corp Professional Users '1,640.0r Total for Check/Tran - 70139: 7,035.00

70140 08/08/2018 DD I 163 TYNDALE ENTERPRISES, INC clothing- Diaz t22.50

70141 08/08/2018 DD 1048 UNITED WAY OF BENTON & FRANKLIN EE United Way Contribution 841.96

70t42 08/08/2018 DD 3098 US BANK CORPORATE PAYMENT SYST Operations - Prosser PCard 07/18 32.4t Admin Prg Mgr PCard 07/18 5,005.64 Comm & Gov Relations PCard 07/18 4,388.20 Human Resources PCard 07118 6,343.84 Fin & Bus Svc PCard 07l18 1,836.08 Key Accts PCard 07/18 88.3ó Cust Svc Prg Mgr PCard 07/18 1,847.04 Contracts & Purchasing PCard 07/18 77.28 Eng Prg Mgr 07/18 3,369.19 Info Svc PCard 07118 4,301 - I l Ops Prg Mgr PCard 07/18 3,161.95 Meter Shop PCard 07/18 4,297.58 Transformer Shop PCard 07ll 8 t,600.67 Maintenance Shop PCard 07118 3,530.94 Auto Shop PCard 07/18 11,728.84

Warehouse Prg Mgr PCard 07/18 l 3, I 79.88 Prosser Branch PCard 07/18 880.94 Power Mgmt PCard 07/18 624.46 Total for Check/Tran - 70142: 66,294.4t

51204 /pro/rpttemplate/accl/2.41.1 I apl AP _CHK_REGISTER.xml.rpt 14 BENTON COUNTY PUD NO. I Revision: 92859 0812012018 8:08:56 AM Accounts Payable Page 5 Check Register

081061201 8 To 081 t9l20l8 BankAccount: I - Benton PUD ACIfWire Check / Pmt Tran l)ate Type Vendor VendorName Reference Amount

70143 08/08/2018 DD 4235 WATER STREET PUBLIC AFFAIRS, LLC Lobbying 5,593.40

70144 08/08/2018 DD 3619 MELINA WENNER CWPU UIP 3rd Qtr Gen Mtg 380.36

70145 08/08/2018 DD 182 WESCO DISTNBUTION TERM END VHCL-4/O I2BN 347.95

70146 08/08/2018 DD 3415 KEVINKWHITE TEA NW Partnen/PPC/PNUCCÆortland Group 820.90

70147 08/15/2018 DD 2872 AWREHN&ASSOC FSA Med/Dep Care 198.00

70148 08/1512018 DD 963 ANIXTERINC. CT 200:5 1,791.90 Control Cable,3C - #12, 600V 432.23 CLEVIS INSUL 4 SQ D 520.19 Totel for Check/Trrn - 70148: 2,744.32

70149 08/15/2018 DD 8ll AUS WESTLOCKBOX weekly svc 44.24 weekly svc 40.6r weekly svc 30.52 weekly svc 41.35 weekly svc 21.94 Tot¡l for Check/Tran - 70149: 178.66

70150 08/15/2018 DD 36 BENTON PUD - REVOLVING FLJND-MAI Credit Balance Retund 554.27 Easement Recording Fees 404.00 Total for Checl¡/Tran - 70150: 958.27

70151 08/15/2018 DD 613 CAMPBELL & COMPANY REEP 600.00 REEP 600.00 REEP 600.00 Totel for Check/Tr¡n - 70151 1,800.00

70152 08/15/2018 DD l8l0 CARLSON SALES METERING SOLUTION Trailer Mounted UG Puller 179,190.00

70153 08/15/2018 DD 375 DAYCO I{EATING & A/C REEP 600.00 REEP 600.00 REEP 600.00 Tot¡l for Checl¡/Tran - 70153: 1,800.00

51204 / pro/ rpltenplatel acctJ2.4 1.1 I apl AP _CHK_REGISTER.xml.rpt 15 BENTON COI]NTY PUD NO. I Revision:92859 0812012018 8:08:56 AM Accounts Payable Page 6 Check Register

081061201 8 To 081 l9l20l8 Bank Account: I - Benton PUD ACH/\ilire Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount

70154 08/15/2018 DD 339 DELL MARKETING CORP Dell Optiplex for Ops Meeting 1,059.98

70155 08/15/2018 DD 2757 RICK DLINN 2018 TEA NW Parrners / PPC 476.11

70156 08/15/2018 DD 3742 EMPLOYMENT SCREENING SERVICES, I Screening Svc 529.50

70157 08/15/2018 DD 3 130 GDS ASSOCIATES, INC. PSA 15,242.50

70158 08/15/2018 DD 1624 JEFFREY HALL APPA Policy Makers Council 1,237.41

70159 08/15/2018 DD 724 HERITAGE PROFESSIONAL LANDSCAPI monthly billing 1,298.52 monthly billing 262.11 monthly billing 29t.t2 monthly billing 300.44 rnonlhty billing 793.50 monthly billing 232.06 monthly billing 788.40 monthly billing 33s.66 Total for Check/Tran - 70159 4,301.81

70160 08/15/2018 DD 10175 K&L GATES, LLP Rec Purchase/Sale Agrmnt Pudget Sound 850.50

70161 08/15/2018 DD 2027 KUFFEL, HULTGRENN, KLASHKE AND Professional Svc 4,195.17

70162 08/15/2018 DD ll0 MCFARLAND CASCADE CO. Poles 34,592.36

70163 08/15/2018 DD 888 KAREN MILLER PPC Mtg 325.85

70164 08/15/2018 DD t24t PARAMOUNT COMMUNICATIONS, INC. Columbia Center Mall l,698.83 Columbia Center Mall 521.28 Meyers Auto Tech 3,595.94 Meyers Auto Tech 86.79 Fountain Building Material 1,840.12 Fountain Building Material 412.68 Clearwater Dental 5,436.82 Clea¡water Dental 179.19 Horse Heaven Hills Pet Clinic 5,275.2r

51204 I pr o I rpTtemplate / acctl2.4 I . I I ap I AP _CHK_REGISTER.xml. rpt 16 BENTON COLTNTY PUDNO. 1 Revision: 92859 08120/2018 8:08:5ó AM Accounts Payable PageT Check Register

081061201 8 To 0811912018 Bank Account: I - Benton PUD ACH/Wire Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount

Horse Heaven Hills Pet Clinic 727.62 Total for Checl¡/Tran - 70164: t9,774.48

70165 08/15/2018 DD 10007 POWERGRID SOLUTIONS, INC switchgear w/aisle 48,356.32 switchgear w/aisle -3.829.32 Totel for Check/Tran - 70165: 44,52'7.00

70166 08/15/20r8 DD 2154 SENSUS USA,INC. Meter, Sensus 25 Stratus 2004 15,599.30

70167 08/15/2018 DD 3226 SHI INTERNATIONAL CORP Upgrade SQL Server 49,585.80

ESD Software 7.680. l 9 Total for Check/Tran - 70167 57,265.99

70168 08/15/2018 DD l163 TYNDALE ENTERPRISES, INC Clothing - Isakson 75.20 Clothing - Szendre 157.79

Clothing - Isakson I 12.5 I Tofal for Check/Tr¡n - 70168: 345.50

70169 08/15/2018 DD 182 WESCO DISTRTBUTION Mule Tape 1,420.49

Total Payments for Bank Account - I : (65) 1,059,400.58 Total Voids for Bank Account - I : (0) 0.00 Total for Bank Account - I : (65) 1,059,400.58

51204 /pro/rpttemplate/acctl2.4 l.l / ap/ AP _CHK_REGISTER.xml.rpt 17 BENTON COUNTY PUD NO. I Revision:92859 08/2012018 8:08:56 AM Accounts Payable Page 8 Check Register

081061201 8 To 081 l9l20l8

Bank Account: 2 - BPUD Accounts Payable Warrants Check / Pmt Tran D¡te Type Vendor Vendor Name Reference Amount

7393t 06/2712018 CHK 99999 JAKOB E COLLINS Credit Balance Refund 121.34VOID

73960 06/27/2018 CHK 99999 THE WILDFLOWER TRIBE Credit Balance Refund l92.o7volD

7423s 08/08/2018 CHK 3572 A-ONE REFzuGERATION & HEATING,IN REEP 600.00 RTEP 600.00 REEP 600.00 Tofal for Checl¡/Tran -74235 1,800.00

74236 0810812018 CHK 3224 ALL SAFE PEST CONTROL pest control svc 76.02 pest control svc 76.02

Total for Check/Tran - 7 4236: 152.04

'7423'7 0810812018 CHK 215 ALLANELECTRIC AMI 370.33

74238 08108/2018 CHK 258 APOLLO MECHANICAL CONTRACTORS REEP 600.00 REEP 600.00 REEP 600.00 Total for Check/Tran -74238: l,800.00

74239 0810812018 CHK 689 BENTON FRANKLIN COMMT]NITY ACTI LIEEP WX PTg 5.00

74240 08t08/2018 CHK 25g BENTON FRANKLIN COMMI-INITY ACTI Helping Hands/Senior Disabled Prgs r,810.00 Help Hands 07130118 1,342.85 Total for Check/Tran - 74240:. 3,152.85

'742410810812018 CHK 35 BENTON PUD - CUSTOMER ACCOUNT D monthly billing 515.1 I

74242 08/08/2018 CHK 3344 BOYD'S TREE SERVICE. LLC Tree Trimming Svc 7,049.r9 Tree Trimming Svc 5,713.34 Tofal for Check/Tran -74242: 12,762.53

74243 08/08/2018 CHK 32 CITY OF BENTON CITY RF,F,P 9,901.60 '74244 08/08/2018 CHK 3715 CLEARESULT CONSULTING, INC Consulitng Svc 13,305.61

74245 08/08/2018 CHK 321 COSTCO 201 8 Membership Renewal 180.00 '74246 08/08/2018 CHK 3439 DJ'S ELECTRICAL,INC. NESC Compliance 48,166.45

51204 /pro/rpttemplate/acct/2.41. I I apl AP _CHK_REGISTER.xml.rpt 18 BENTON COUNTY PUD NO. I Revision:92859 08/20/2018 8:08:56 AM Accounts Payable Page 9 Check Register

081061201 8 To 081 I9l20l8 Bank Account: 2 - BPUD Accounts Payable Warrants Check / Pmt Tran Date Type Vendor Vendor N¡me Reference Amount

74247 0810812018 CHK 99 KIE SUPPLY CORP pipe 364.90

74248 08/0812018 CHK t2t OXARC,INC. fire ext demo training 325.80

74249 08t08t20t8 CHK 2176 PACIFIC OFFICE AUTOMATION. TNC monthly billing 226.t6

74250 0810812018 CHK 962 PACIFIC POWER monthly billing 432.66

7425t 0810812018 CHK 128 PERFECTION GLASS,INC. REEP 2, 150.00 REEP 3ó8. t9 REEP 296.25 REEP 1t5.29 REEP 214.lr REEP 239.07 REEP 240.00 REEP 330.06 REEP t27.89 Total for Check/Tran -74251 4,080.86

74252 0810812018 CHK r35 PROSSER, CITY OF Monthly Billing t.03 Monthly Billing 9.60 Monthly Billing t,705.39 Monthly Billing 753.58 Occupation Tax 07118 35.984.53 Total for Check/Tran -74252: 38,454.13

74253 0810812018 CHK 2648 RAILROAD MANAGEMENT COMPANY I License Fees 2r4.01 License Fees 738.53 Total for Checl¡/Tran - 742532 952.54

74254 0810812018 CHK l4l RICHLAND, CITY OF Fiber lease 293.22 fiber lease 293.22 Occupation Tax 07/18 1,224.99

Total for Check/Tran -74254: t,8 1 1 .43

74255 08/08/2018 CHK 3226 SHI INTERNATIONAL CORP ESD Software 14,5t2.02

51204 /pro/rpttemplate/acct/2.4 L l / ap l AP _CHK_REGISTER. xml. rpt 19 BENTON COUNTY PUD NO. I Revision:92859 08/20/2018 8:08:56 AM Accounts Payable Page l0 Check Register

081061201 8 To 0811912018 Bank Account: 2 - BPUD Accounts Payable Warrants Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount

software/maintenance 540.83

Total for Checl¡/Tran - 74255 I 5,052.85

74256 0810812018 CHK 2699 TOTAL ENERGY MANAGEMENT & HVA REEP r,200.00 REEP 1,200-00 Total for Check/Tran -74256 2,400.00

74257 0810812018 CHK 3589 TOTAL QUALITY AIR, LLC REEP 600.00

74258 08t0812018 CHK 300ó TRI-CITY GLASS,INC. REEP lr3.64 REEP 222.99 REEP 791.40

Total for Check/Tran - 7 4258: 1,128.03 '742s9 08/08/2018 CHK l3 04 US CELLULAR monthly billing I I 1.88

74260 08108/2018 CHK 170 WASH STATE DEPT LABOR & INDUST Hot Water Heater Inspection 30.40

74261 0810812018 CHK 366 WASH STATE DEPT LABOR & INDUST 2018 Assessment Fees 342.50 '74262 08t08/2018 CHK 437 WASH STATE DEPT SUPPORT REGIST Gamishment - Child Support 675.25

74263 08t08t20t8 CHK t72 WASH STATE DEPT TRANSPORTATION Buried and Aerial Fiber 1,249.92

74264 0810812018 CHK 99999 ARCHSTONE INVESTMENTS LLC Credit Balance Refund 148.75

74265 0810812018 CHK 99999 CAITLIN CHANNER Credit Balance Refund I'14.60

74266 08/08t2018 CHK 99999 LISA M CRUZ Credit Balance Refund 14.20

74267 0810812018 CHK 99999 BARBARA DUPREL Credit Balance Refund 98.19

74268 08/08/2018 CHK 99999 JAMES E GLOVER Credit Balance Refund t66.87

74269 08/08/2018 CHK 99999 ALBERT L HOLMES Credit Balance Refund t,270.00

74270 08/08/20t8 CHK 99999 BRITTANY HUTCHINS Credit Balance Refund 72.62 '14271 08/08/2018 CHK 99999 MICHELLE MC KTNNEY Credit Balance Refund 82.65 '74272 08108/2018 CHK 99999 CHARLENE L MCCORMICK Credit Balance Refund t47.84 't4273 08/08/2018 CHK 99999 SHAMARA NORTHERN Credit Balance Refund 141.28

51204 /pro/rpttempl atel accTl 2. 4 1 I /aplAP_CHK_REGISTER.xml.rpt 20 BENTON COT]NTY PUD NO. 1 Revision:92859 08120/2018 8:08:56 AM Accounts Payab e Page I I Check Register

081061201 8 To 081 I9l20I8

Bank Account: 2 - BPUD Accounts Payable Warrants Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount

74274 08/08/2018 CHK 99999 POWERHOUSE REALTY LLC Credit Balance Retund 222.56

742'75 08/0812018 CHK 99999 RICARDO RAMIREZ GOMEZ Credit Balance Retund t59.44

'74276 08t08120r8 CHK 99999 ISMAEL RAMOS Credit Balance Retund 27.04

'74277 08t08t2018 CHK 99999 EDWBIGES SANCHEZ CASTANEDA Credit Balance Retund t20.12

74278 08t08t20r8 CHK 99999 UNLIMITED LABOR SOLUTIONS LLC Credit Balance Retund 33.79

74279 08n5t2018 CHK 2425 AT&T MOBILITY monthly billing 6'7.51

'74280 08t15/2018 CHK 35 BENTON PUD - CUSTOMER ACCOUNT D monthly billing 395. I 5

7428t 0811512018 CHK 3344 BOYD'S TREE SERVICE, LLC Tree Trimming Svc 7,465.48 Tree Trimming Svc 4,597.t6

Total for Check/Tran - 7 4281: 12,062.64

'14282 08/15/2818 CHK 2988 BRUCE HEATING & AIR CONDITIONING hvac repatr -3.44 hvac repair 16t.26 Heat pump installation 39,295.48

Tofal for Check/Tran - 7 4282 39,453.30

'74283 081t512018 CHK 42t6 CNA SURETY WA Blanket Highway Permit Bond 200.00

74284 081r5120t8 CHK 2831 CORRECTIONAL INDUSTRIES Chair 370.33

74285 0811512018 CHK 2450 D. HITTLE & ASSCOCIATES. INC Professional Svc 354-00 Professional Svc 2,625.00 Professioal Svc 708.00 Professinal Svc 2,17't.94 Totaf for Check/Tran -74285:, 5,864.94

74286 08/15/2018 CHK 3029 DELTA HEATING & COOLING, INC. REEP 850.00

74287 081t512018 CHK 3235 DESERTGREEN LAV/N TREE & PEST CO insecticide treatment 5,028. I 8

74288 0811512018 CHK 233 INTERMOUNTAINWESTINSULATION REEP 932.79

74289 08/ts/2018 CHK 99 KIE SUPPLY CORP material 395.30

51204 /pro/rpttemplate/acctl2.4 l.l / ap/ AP _CHK_REGISTER.xml.rpt 21 BENTON COLTNTY PUDNO. 1 Revision: 92859 0812012018 8:08:56 AM Accounts Payable Page 12 Check Register

081061201 8 To 081 l9l20l8 Bank Account: 2 - BPUD Accounts Payable Warrants Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount

material 569.06

Total for Check/Tran - 7 42E9 964.36

74290 08115/2018 CHK ll8 NORTHWEST PUBLIC POWER ASSOCIA NWPPA Reg - A. Darling 2,270.00

74291 08/15/2018 CHK 2176 PACIFIC OFFICE AUTOMATION, INC. monthly billing 50.26 monthly billing 150.01 monthly billing 2t2.96 Total for Check/Tran -742912 413.23 '74292 08/15/2018 CHK 10120 PUBLIC GENERATING POOL 2018 Special Assessment 12,500.00 '14293 08/15t2018 CHK 10100 STAFF TESTING,INC. IBM Assess l0 -5.49 IBM Assess 10 346.65 Total for Checl¡/Tran - 74293: 341.16

'74294 0811512018 CHK 193 UNITED PARCEL SERVICE OF AMERICA mailing svc 91. t9 mailing svc t22.t0 Total for Check/Tran -742942 213.29

74295 081t512018 CHK 992 VERIZON NORTHWEST monthly billing 901.83 '14296 08/15/20t8 CHK 575 WELLS FARGO BANK Investment Safekeeping Svc 750.00

74297 081t512018 CHK 99999 MUSLIM T AGAEV Credit Balance Refund 93.93

74298 081t5120r8 CHK 99999 ALEXA ALLEN Credit Balance Refund I I 1.05 't4299 08115120t8 CHK 99999 CLARISSA MONTES Credit Balance Refund 102.44

74300 0811512018 CHK 99999 NOURA Y OSMAN Credit Balance Refund 82.39 't4301 0811512018 CHK 99999 DAN A RAAP Credit Balance Refund 159.15 '14302 081t512018 CHK 99999 RESTAURANTE EL ASADERO Credit Balance Refund 354.56

Total Payments for Bank Account - 2 : (68) 247 ,713 .01 Total Voids for Bank Account - 2 : (2\ 313.91 Total for Bank Account - 2 : (70) 248,026.92

5t204 /pro/rpttemplate/acctl2.4 l.l I apl AP _CHK_REGISTER.xml.rpt 22 BENTON COUNTY PUDNO. I Revision:92859 08120/2018 8:08:56 AM Accounts Payable Page 13 Check Register

Grand Tot¡l for Payments r (133) 1,307,1 13.59

Grand Total for Voids r (2) 3t3.91 Grand Total : (135) r,307,427.50

s1204 /pro/rpttemplate/acø/2.4 1.1 / apl AP _CHK_REGISTER. xml.rpt 23 BENTON COUNTY PUD NO. I Revision: 92859 0812012018 9:10:07 AM Accounts Payable Pæe l¡t Check Register ALL

Bank Account: I - Benton PUD ACIVWiTe Check / Pmt Tran Date Type Vendor Vendor Name Reference Amount

4591 0712512018 WIRE t290 BONNEVILLE PO$/ER ADMINISTRATIO Southridge Sub - Environmental Study 10,000.00 Phillips Bay #4 Sub - new load 15,000.00 Total for Check/Tran - 4591 25,000.00

4s92 08t08t2018 WIRE 3194 EDF TRADING NORTH AMERICA, LLC Purchased Gas /Swaps 08/18 37,200.00

4593 08109/2018 WIRE 1567 ICMA RETIREMENT CORP Plan C 457(b) Employee Contribution 6,412.91 Plan C 401(a) Option 5, Step 4 EE Contri 1,767.80 Plan C 401(a) Option 4, Step 4 EE Contri 677.23 Plan C 401(a) Option 4, Step 3 EE Contri 423.32 Plan C 401(a) Option 4, Step 2 EE Contri 6l1.00 Plan C 401(a) Option 4, Step I EE Contri 144.61 Plan C 401(a) Option 2 EE Contribution 2,327.11 Plan C 401(a) Option I EE Contribution 3,324.01 Plan C 401(a) EE Contribution 1,269.23 Plan B a57@) Employee Contribution 19,202.72 Plan A 457(b) Employee Contribution 5,5t6.94 457(b) Roth EE Contribution 2,367.54 457(b) Leave EE Contribution 8,865.59 Deferred Comp - ER 8.567.39 Total for Check/Tran - 4593: 61,477.40

4594 07/3t/2018 WIRE 10052 JACK HENRY & ASSOCIATES, INC. Merchant Svc 433.00

4s9s 08/09/2018 WIRE 2205 TINITED STATES TREASURY Social Securþ - Employer 33,729.s7 Social Security - Employee 33,729.57 Medicare - Employer 8,027.34 Medicare - Employee 8,027.34 Federal Income Tax 57,303.88 Total for Checl¡/Tran - 4595: 140,817.70

4s96 08/09/2018 WIRE l7l WASH STATE DEPT RETIREMENT SYS PERS Plan 3E l0% All Ages 633.54 PERS Plan 3D 7% All Ages 86.31 PERS Plan 3C 8.5o/o Age 45+ 224.30 s1204 /pro/rpttemplate/ac ct12.41. 1 / apl AP _CHK_REGISTER.xml.rpt 24 BENTON COUNTY PUD NO. 1 Revision: 92859 0812012018 9:10:07 AM Accounts Check Register ALL

Bank Account: I - Benton PtlD ACIIIIViTe Check/ Pmt Tr¿n Date Type Vendor Vendor Name Reference Amount

PERS Plan 3A 5% All Ages 1,705.65 PERS Plan2 3s,711.35 PERS -ER 67,083.14 Tot¿l for Checl¡/Tran - 4596: 105,444.29

4598 07/05/2018 WIRE 199 WASH STATE DEPT REVENUE-LEASEH 2nd Qtr Leasehold Excise Tax 385.20

Total for Bank Account - I (7) 370,7s7.s9

Grand Total (7) 370,757.59

/pro/rpttemplaæ/ac ct/2.4 l. I I apl AP 51204 -CHK-REGISTER.xml.rpt 25 ,ilIW IF.U,D BENTON PUD . RESIDENTIAL CONSERVATION REBATE DETAIL Date Customer Rebate Amount Rebate Description 08/06/201 I Booth Properties $ 20.00 Rebate - Energy Star Clothes Washer 08/06/201 I Booth Properties $ 50.00 Rebate - Energy Star Clothes Dryer 08/06/201 I Jackson, Joan $ 20.00 Rebate - Energy Star Clothes Washer 08/06/2018 Maciboba, Steve $ 20.00 Rebate - Energy Star Clothes Washer 08/06/2018 Richardson, Jennie $ 20.00 Rebate - Energy Star Clothes Washer 08/06/201 I Richardson, Jennie $ 50.00 Rebate - Energy Star Clothes Dryer 08/06/201 I Lusso, J R $ 20.00 Rebate - Energy Star Clothes Washer 08/06/2018 Lusso, J R $ 50.00 Rebate - Energy Star Clothes Dryer 08/09/201 I Roby, Catherine $ 20.00 Rebate - Energy Star Clothes Washer 08/09/2018 Roby, Catherine $ 5o.oo Rebate - Energy Star Clothes Dryer 08t13t2018 Crowe, Hollyn $ 500.00 Rebate - Energy Star Water Heater 08/15/201 I Taylor, Marshall $ 20.00 Rebate - Energy Star Clothes Washer 08t15t2018 Taylor, Marshall $ 50.00 Rebate - Energy Star Clothes Dryer 08t15t2018 Vasquez, Britney $ 20.00 Rebate - Energy Star Clothes Washer 08t15t2018 Vasquez, Britney $ 50.00 Rebate - Energy Star Clothes Dryer

$ 960.00

Page 16 26 BETITOil Business Agenda Second Reading X Consent Agenda

I nfo Only/Possible Action lnfo Only

COMMISSION MEETING AGENDA ITEM

Subject: Motion to Adopt Resolution No Approving PU RMS Revised Resolution No. 6-7-L8-1" and 2018 Amend ments to PURMS lnterlocal reement Agenda ltem No:

Meeting Date: August 28,20L8 Presented by: Keith Mercer /4Á Stoff Presenting ltem Approved by (dept): Jon Meyer Director/Monoger KfU fr_Jrn Approved for Chad Bartram Gene ra I M o noge r/Asst G M Commission review:

Motion for Commission Consideration:

Motion adopting Resolution N".¿>?qrl \ declaring approval of PURMS revised Resolution No. 6-7-t9-L and ratifying the approval by the District's representative at the PURMS semi-annual Board Meeting on June 7, 2018, and declaring approval and authorizing execution of the 2018 amendments to PURMS lnterlocal Agreement.

Recommendation/Backeround

At the semi-annual PURMS Board meeting on June 7,2018, the Board considered PURMs Revised Resolution No. 6-7-18-L adopting amendments to the PURMS lnterlocal Agreement. Amendments being approved and/or incorporated fall into three categories:

1. The Liability and Property Pool "Funding Rules" approved by the Board in 201-6 and additional revisions and clarifications. ' Replenishing Risk Pool's Actual Balance via Assessments - Determining the Amount of the Assessment . Funding Contingent Reserves Assessments - lssuance and Collection ' Pre-Funding Contingent Reserves - Accounting for and Payment of Claims Costs . Withdrawing Members' and Former Members' Ongoing Obligation to pay Assessments for Contingent Reserves . Withdrawing or Former Member's Right to participate in Declared Refund of Surplus Contingent Reserves . Accounting for Special Purpose Account Funds

2. Some general amendments being proposed on issues that have been identified based on experience under the terms of the 2011 lLA. . Executive Committee Authority to lnterpret and Apply the ILA and other Program Documents

27 PURMS and/or Risk Pools' Authority to Purchase Other Excess, Different or Additional

I nsu ra nce

3. Newly prepared "Supplemental Voting Procedures" to help ensure that PURMS can timely amend its Program Documents in the future while still complying with the requirements of WAC 200-L00-02021(1) and the requirements of the Washington Open Public Meetings Act (RCW 42.30 et. seq.) . Amendments to Program Documents - Adjournment and Supplemental Voting Procedure ' Requirements of Authorizing Resolutions . Board Meetings - One Member/One Vote - Majority Vote and Quorum - Other Voting Standards - Adjournment and Supplemental Voting Procedure

This Authorizing Resolution must be adopted by the governing body of each PURMS Member in order to enact amendments to the PURMS lnterlocal Agreement.

Summarv

Approval of this Resolution will ratify changes to the PURMS lnterlocal Agreement that were approved by the PURMS Board at its semi-annual meeting on June 7,2018. These changes keep the lnterlocal Agreement into conformity with requirements in the WAC and RCW.

Fiscal lmpact

Future assessments to PURMS members will be made at funding levels required by the WAC,

28 BENTON County PUD - Authorizing Resolution Adopting PURMS 2018 Amended and Restated InterlocalAgreement

RESOLUTION NO. 2471

A RESOLUTION OF THE COMMISSION OF PUBLIC UTILITY DISTRICT NO. I OF BENTON COUNTY, WASHINGTON (the "DISTRICT"): 1. DECLARING ITS APPROVAL OF PUBLIC UTILITY RISK MANAGEMENT SERVICES (*PURMS") RESOLUTION NO. 6-7-18-1 AND RATIFYING THE AFFIRMATIVE VOTE ON SAID RESOLUTION BY THE DISTRICT'S VOTING REPRESENTATIVE AT THE PURMS SEMI-ANNUAL BOARD MEETING ON JUNE 7, 2018; and

2. DECLARING ITS APPROVAL OF THE PURMS 2018 AMENDED AND RESTATED INTERLOCAL AGREEMENT (,,20L8 ILA") AND AUTHORTZING THE DISTRTCT'S SIGNING REPRESENTATIVE TO EXECUTE THE DUPLICATE ORIGINAL SIGNATURE PAGE FOR THE 2018 AMENDED AND RESTATED ILA F'OR AND ON BEHALF OF THE DISTRICT.

PUBLIC UTILITY DISTRICT NO. 1 OF BENTON COUNTY Benton County, Washington

BE IT RESOLVED BY THE COMMISSION OF PUBLIC UTILITY DISTRICT NO. 1 OF BENTON COLTNTY, WASHINGTON, as follows:

A. PURMS Joint Self-Insurance Prosram and the District's Particination in PURMS' Risk Pools.

WHEREAS, Public Utility District No. 1 of Benton County, Washington ("District") is a municipal corporation organized and existing under and by virtue of the Constitution and the laws of the State of Washington;

WHEREAS, Public Utility Risk Management Services ("PURMS") is an unincorporated association of Local Government Entities organized and existing under the laws of the State of V/ashington, including RCW 48.62 et. seq. (re "Lacal Government Insurance Transactions"), RCW 39.34 et. seq, (the "Interlocal Cooperation Act") and other applicable statutes enacted to permit and facilitate the joint exercise by Local Government Entities of their powers;

\ilHEREAS, the District is currently a signatory to the PURMS' Interlocal Agreement, originally dated December 20, 1976 (then called the "Self-Insurance Agreement" or "SIA"), as most recently amended and restated and adopted by PURMS' Members, effective as of November 10, 2011 (hereinaft er, "2011 ILA");

WHEREAS, PURMS is also subject to WAC $ 200-100 et. seq. governing local government entity liability and property joint self-insurance programs, and WAC $ 200-l l0 et. seq. governing health and welfare joint self-insurance programs (collectively, "Programs");

29 BENTON County PUD * Authorizing Resolution Adopting PURMS 2018 Amended and Restated InterlocalAgreement

WHEREAS, PURMS exists and operates pursuant to the terms of its Interlocal Agreement for the purpose, among other things, of providing its Members with joint self-insurance coverage and jointly purchased excess or stop-loss coverage for liability claims, property losses and health and welfare benefits, and joint administration and handling of claims relating to such coverages, through three separate Risk Pools known as the "Liability Pool", the "Property Pool" and the "Health & Welfare Pool" (collectively, PURMS' "Risk Pools");

\ryHEREAS, pursuantto fl 6 of the 2011 ILA, the business and affairs of PURMS and its Risk Pools are managed and governed by and through its Board of DirectorS ("Board") and

implemented day-to-d ay by PURMS' Administrator ("Administrator") ;

WHEREAS, the District is currently a Member of PURMS and participates tn one or more of PURMS' Risk Pools; and

WHEREAS, the District has determined that its ongoing participation as a Member of such Risk Pool(s) provides the District with the benefits and costs savings of joint self-insurance coverage, jointly purchased excess or stop-loss insurance and common administration through the Risk Pool(s).

B. Notice and Publication of Proposed 2018 Amended and Restated PURMS Interlocal Agreement -'Waiver of anv Defects in Notice

WHEREAS, the PURMS 2011 ILA is being amended and restated in the form of the 2018 Amended and Restated ILA (sometimes referred to as the "2018 ILA") in order to incorporate certain amendments that have already been approved by the PURMS Board and Members via previously adopted PURMS Resolutions, as well as additional proposed amendments that were considered for the first time by the Board and Members at the PURMS Semi-Annual Board Meeting on June 7,2018;

\ryHEREAS, the 2018 Amended and Restated ILA, reflecting the provisions of the 2011 ILA that are being substantively amended, was published to the Members of PURMS on PURMS V/ebsite on May I0,2018, with Notice and a link thereto provided by email to the Members on that same date;

WHEREAS, ILA tl 5.a.5(a) and WAC 200-100-02019 require thirty (30) days' notice to Program Members and the Washington State Risk Manager ("SRM") of any amendments to a Program's interlocal agreement;

WHEREAS, the May 10, 2018, Notice regarding adoption of the 2018 Amended and Restated ILA technically was 2 days short of the required thirty (30) notice to Members regarding amendment of the ILA for consideration at the June 7, 2018, Semi-Annual Board Meeting;

WHEREAS, the provisions of the 2011 ILA that are being substantively amended in the 2018 ILA were identified and generally described in the PURMS Resolution No. 6-7-18-18, which was provided to PURMS' Members, including the District, via email link to PURMS

2

30 BENTON County PUD - Authorizing Resolution Adopting PURMS 2018 Amended and Restated InterlocalAgreement

V/ebsite ten (10) days before the PURMS Board's Semi-Annual Board Meeting at which the Vote on the amendments and the 2018 Amended and Restated ILA was set to be taken;

\ryHEREAS, a Director or Voting Representative for every Member was present at or participating by telephone conference call in the June 7, 2018, Semi-Annual Board Meeting and all were provided an opportunity to object to the 2-day shorter-than-required notice and no verbal or written objection was made;

\ryHEREAS, PURMS Resolution No. 6-7-18-1 constitutes a written waiver of any defective Notice as contemplated by ILA 115.4.5(a); and

\ryHEREAS, this Authorizing Resolution hereby affirms the District's Voting Representative's waiver of any defects in the Notice relating to amendments reflected in the 2018 Amended and Restated ILA, as contemplated by ILA'lT 5.a.5(a) and WAC 200-100-02019.

C. Resulatory Requirements for Government Entity Joint Self-Insurance Proqrams to Amend their Interlocal Agreements.

1. Requirement of Thirtv Days' Notice to Members and State Risk Manaser for Chanses t'Bylaws". to a Programts "Interlocal Agreementtt or

WHEREAS, V/AC 200-100-065(2) requires written notification to SRM prior to implementing any changes to a liability or property Program's interlocal agreement or bylaws;

\ryHEREAS, WAC 200-110-270 includes the same requirement of written notification to Members and SRM with respect to any changes to the interlocal agreement governing health and welfare Programs; and

\ryHEREAS, SRM was provided with the same Notice and access to the 2018 Amended and Restated ILA as was provided to the PURMS Members, as identified in fl B. above.

2. Requirements that Members of a Program must Adopt Authorizing Resolutions approving Amendments to the Proqram's "Interlocal Aqreement'o and Sign a Copy of the Amendments.

\ryHEREAS, V/AC 200- I 00-02 021 (2) requires :

That changes to a liability or property Program's interlocal agreement be adopted by ^, ordinance or resolution of the governing body of each member ("Authorizing Resolution");

b. That a copy of the Amendments be signed by each member's "authorized representative" (hereinafter, referred to as "Signing Representative"); and

c. That a copy of the adopted Authorizing Resolution and the signed Amendments be provided to and retained by the Program.

a J

31 BENTON County PUD - Authorizing Resolution Adopting PURMS 2018 Amended and Restated InterlocalAgreement

WHEREAS, WAC 200-110-280(2) contains identical requirements for changes to a health and welfare Program's interlocal agreement;

WHEREAS, the 2011 ILA also requires the same or similar notice, procedures and documentation(see TT 5.4.3 - 5.4.5);

WHEREAS, therefore, as a result of these V/AC and ILA requirements

a. The "governing body" of each PURMS Member must adopt this Authorizing Resolution approving the 2018 Amended and Restated ILA and designating the Member's "Signing Representative"; and

b. In addition, since the Amendments to the 2011 ILA are incorporated into the 2018 Amended and Restated ILA, each Member's Signing Representative must execute a Duplicate Original Signature Page to the 2018 Amended and Restated ILA.

D. District's Ratification of Vote of Votins Representation approvins PURMS Resolution No. 6-7-18-1.

\ryHEREAS, on June 7, 2018, the PURMS Board met for its Semi-Annual Meeting and, among other things, considered Resolution No. 6-7-18-l;

WHEREAS, the Voting Standard applicable to adopting the 2018 Amended and Restated ILA is a Unanimous Vote of all PURMS Members;

WHEREAS, a Voting Representative for each of the nineteen (19) current Members of PURMS participated in the Semi-Annual Board Meeting, either in person or via telephone conference call, as established by a Roll Call at the meeting;

WHEREAS, the District's Voting Representative, Kevin White, attended the Semi-Annual Board Meeting, Voted in favor of PURMS Resolution No. 6-7-18-1 approving the 2018 Amended and Restated ILA, and signed the Resolution on behalf of the District'

WHEREAS, the District hereby approves PURMS Resolution No. 6-7-18-1 and ratifies the affirmative Vote of its Voting Representative at the PURMS Semi-Annual Board Meeting; and

\ryHEREAS, a copy of PURMS Resolution No. 6-7-18-1, as Unanimously approved and executed at the June 7, 2018, Semi-Annual Board Meeting, is attached to this Authorizing Resolution as Exhibit L.

E. The District's Adoption of the Authorizinq Resolution is in the Best Interest of the District.

\ryHEREAS, the Commission, as governing body for the District, has reviewed and considered PURMS Resolution No. 6-7-18-1, the amendments to the 2011 ILA as incorporated into the 2018 Amended and Restated ILA, and the terms of the 2018 Amended and Restated ILA and finds them acceptable and consistent with the insurance needs of the District as a Member of PURMS and a continuing participant in one or more of its Risk Pool(s); and

4

32 BENTON County PUD - Authorizing Resolution Adopting PURMS 2018 Amended and Restated InterlocalAgreement

\ryHEREAS, the Commission, as governing body for the District, fuither fìnds the terms of this Authorizing Resolution acceptable and consistent with the insurance needs of the District as a Member of PURMS and a continuing participant in one or more of its Risk Pool(s).

F. Effective Dates of the Amendments to the 20L1 ILA and the PURMS 2018 Amended and Restated ILA.

WHEREAS, the District approves the Effective Dates for the various Amendments to the 2011 ILA, and for the 2018 ILA itself, as provided in fl VIII. of PURMS Resolution No 6-7- I 8-; and

WHEREAS, the District fuither approves and ratifies the de facto earlier implementation of certain of the Amendments to the PURMS 2011ILA, as provided in prior PURMS' Resolutions or in the Amendments themselves, or as may have been directed by the Board or Executive Committee, notwithstanding whether the Effective Dates or de facto implementation dates preceded the District's approval and adoption of this Authorizing Resolution, and the District hereby specifically approves any such earlier Effective Dates or implementation of the Amendments to the 20ll ILA.

G. Sienine Representative Authorized bv the District to Execute Documents relatins to the PURMS 2018 Amended and Restated ILA.

WHEREAS, 1T IX.C.1 of Resolution No. 6-7-18-1 contemplates that each Member shall identify its Director, Designated Employee or other representative specifically authorized by this Authorizing Resolution to execute the 2018 Amended and Restated ILA on behalf of and binding upon the District ("Signing Representative"); and

WHEREAS, the Commission, as the governing body for the District, hereby designates holding the position of with the District, as its Signing Representative, to sign the Duplicate Original Signature Page for the PURMS 2018 Amended and Restated ILA, attached hereto as Exhibit 2.

NOW, THEREFORE, IT IS HEREBY FOUND, DETERMINED, AND ORDERED as follows:

Section 1: The Commission hereby acknowledges timely receipt of Notice of PURMS publication to Members on its Website of the proposed 2018 Amended and Restated Interlocal Agreement and timely receipt of PURMS Resolution No. 6-7-18-1, and further, hereby waives any objection it might have regarding the adequacy of the Notice to the Board and Members of the amendments to the 20ll ILA.

Section 2: The Commission finds that PURMS Resolution No.6-7-18-l and the 2018 Amended and Restated Interlocal Agreement adequately and appropriately assist PURMS in maintaining compliance with existing applicable laws and in the prudent and effìcient operation and administration of PURMS' Risk Pools, and therefore, benefit the District as a Member thereof.

5

33 BENTON County PUD - Authorizing Resolution Adopting PURMS 2018 Amended and Restated Interlocal Agreement

Section 3: The Commission finds that approving Resolution No.6-7-18-1 and the 2018 Amended and Restated Interlocal Agreement are in the best interests of the District, and the District hereby approves the same.

Section 4: The Commission further hereby ratifies the affirmative Vote of its Voting Representative approving Resolution No. 6-7-18-l at the PURMS June 7, 2018 Semi-Annual Board Meeting.

Section 5: The Commission hereby approves and adopts the PURMS 2018 Amended and Restated Interlocal Agreement, as published to Members as described in fl B. above, and subject to any necessary conforming changes or corections approved by the PURMS Executive Committee prior to final publication of the 2018 Amended and Restated ILA by PURMS on its V/ebsite.

Section 6: V/ithout limiting the generality of Section 5 above, if the District is or becomes a Member of the PURMS Liability andlor Property Pool, the District hereby expressly adopts the Liability and Property Pool "Program Funding Rules" contained in fl 134. of the 2018 Amended and Restated ILA.

Section 7: V/ithout limiting the generality of Section 5 above, if the District is or becomes a Member of the PURMS Health and Welfare Pool, the District hereby expressly adopts the Health and Welfare Pool "Program Funding Rules" contained in fl 138. of the 2018 Amended and Restated ILA.

Section 8: The Commission hereby authorizes its Signing Representative designated in fl G, above to sign the Duplicate Original Signature Page for the PURMS 2018 Amended and Restated ILA and to provide the executed Duplicate Original Signature Page, along with a copy of this Authorizing Resolution as approved and fully executed by the Commission, to PURMS' Administrator within forty-five (45) days from receipt of this Authorizing Resolution.

Section 9: This Authorizing Resolution shall be in effect from and after its date of passage; provided, the Authorizing Resolution hereby ratifìes application of and action taken under any of the Amendments to PURMS' Interlocal Agreement that may have Effective Dates or otherwise be or have been implemented prior to the date of passage of this Authorizing Resolution, as provided in fl F. above.

ADOPTED by the Commission of Public Utility District No, I of Benton County, Washington, at a regular meeting thereof, held on the _ day of 2018

PUBLIC UTILITY DISTRICT NO. 1 OF BENTON COUNTY

At Washington

By:

Its:

6

34 BENTON County PUD - Authorizing Resolution Adopting PURMS 2018 Amended and Restated Interlocal Agreement

ATTEST

By:

7 35 BENTON PUD Authorizing Resolution No.247l

EXHIBIT 1

PURMS Board Resolution No. 6-7-18-l re Adoptíon of PURMS 2018 Amended and Restøted Interlocøl Agreement (Attached)

36 lìcsolr¡tion No. 6-7-18-1 r'e: ;lcloption a/ P UtlÃ,lS 20 l<\ tl¡ne ntletl ct¡tr.l llc,sti.ttetl /nlcrloc'ctl Å gre etnt:nt

ARD RE OLUTION NO. 6-7-18-

for PUBLIC UTILITY IìISK MANAGNIVIENT SIIIìVICES JOINT SELF-INSURANCII F{.JNI)

I. Gcncral Authority ¿rnd B¿¡cl

WHEIIEAS, pursuant to the authority grantecl in RCW 48.62 er. ser¡., PLrblic tJlilil\, I{isk fulanagernent Services ("I]IJRN4S") has establishecl ancl operates threc Risk Pools thlough rvhich the local govemrnent entity fylerrbers of tile lìisk Pools jointly self-in,sLrre liability^ pt'operty ancl health & rvclÍìrre clairtrs (r'esltectively, "Liability Pool", "Property Pôol" and "l{&W Pool");

WFIEREAS, the operation of these R.isk Pools and the rights ancl obligations o1'the Membcrs ol the llisk Pools are governed by an agreenlent entitled "lnterìocal Agreenretit fbr tlie Public tJtility Ri:;k lrrlanagement Services Joint Seif-Insurance Fund" ("PlJlìN4S' Interlocal Agrcemettt" c-rL "1L4")), rvhich incorporätes by reference the other prograrn documents identifred in Jf 5.1 o1'thc ILz\ (inclrrdìng Covcrages, Asscssment Fol'mulas and Cllainrs Resolution Procecltu'cs" "Plogt'arìl I)ocuments") collectivcly constituting tirc PURMS ¿'Joint Self-lnsurancc Agreerrelrt" (or "Sìz\");

\ryHlilìliAS, thc II.A, wliich was originally dated Decenlber 20, 1976, over thc yeals h¿ts been amencled arrd lestated, as needecl aird appropriate, pursuant to RCW 48.62 et. seq. ancl [tC\\¡ 39.34 el. seq., ¿ts ulost recenïly amendecl ¿rnd rest¿rled pursuant to PUIWIS itesoh-rtion No. ll-10-11-1 on November I 0, 201 1 ("2011 II.z\");

\VHEIUiAS. pursuant to l[ 6 o1'the 201I llr\, tlie l:usiness and allàirs ol'PlJIllVlS are rnanergecl ¿urtt sovclitccl by the Boarcl of l)irectols ("Board"), which consists of' oue i)irccltl' ft'olr eacÌt l)tJRMS Mcnl[rcr. anc]

lVHIJIlttAS,'r14.2 oi'the 2011 ILA provides that PURMS shall h¿rvc all oi'the arrthor-i1y t¿r.aniecl or irnpliccl by applicable Washington lar,v.

II I'urposc ol'll,esolution - Adorl tion of 2018 Amended and Rcstatetl ILA

WfltrlltiAS, the 2011 ll-¡\ is beiiig amcncled and restatecl in the lbrnr of thc 2018 A¡nenclecl ancl I(cstated |L^ ("2018 ILA") in order to inco¡porate cer-tain anlenclnelìts that have alreaclv bcen approvecl by the Boarcl and I\4embers, as i.r,ell as aclclitional proposecì lnrenclrnenls being consiclerccl 1'or thc first time by tire lloard ancl i\zlembcrs, as sjet out in morc clctail in ll Iì1. bclrirv; and

WlIFltìE¡\S, the ¿imenclments being ap¡n'orrecl ancl/ol inc<-irporatecl into thc 2018 II-¡\ f:'all into thrce catetlerrics:

PTJI{MS I]O,,\RI) 1 RIISO Lt ITION No. ó-7- I 8- I 37 Itesolrrtiorr No. 6-7-18-l t'e'. ;lclo¡ttirsn ú' I'}t-llLluls 20lB Amenclecl cttcl l?.e,statetl lnt¿rlocal Agreentent

l. Thc l,iabiiity tulti Plopert¡, ,Dool "Fuflcling Rulcs" zi¡rptovecl by tlic Boaicl in 20lro ("241(t L&P Irunding Rulcs"; scc fl III.A below);

2. So¡re general anrenclrlents being ploposed olt issltcs tliat h¡ive bccn iclelltil'iccl lrasccl oll cxltcr-tcnce urtr.ler tl'ìe tenns of the 2011 1l,A ("Experietrce Autcndlrents"; ,rce fl lll.B belorv), and

3. Neu,l.v prcparcd "suppiemental Voting Proceclrtres" to heip c11stìre that !tllìiVlS carr tittrelS' arne¡cl its Prograrn l)ocunrents in the fLture r.vhile still cornplying rvith thc reclr-tir"cnlctrls,r[' W.A(ì ?00-i00-02021(l) a¡rJ tlre ¡erqr-ri¡cments of the Waslrirrglon Opctr PLri.lic V[t,-'tillgs Acr (RCW 423A et. seq.) ("Supplen.rentai Voting Procedures"; see lil1l.C belorv). III. Overvierv of dnrents [ncoruorated in 2018 tLA

A. Incorporat ion o1' PrevieiuslY ¿\rr eci7tJ16 Liabilifv tnd Pronerty Poo lIÌunilins Rulcs

1ryi-iEäEAS, at tite Noveurbcr 3,2016, Board meeting, by Rcsolr:tion No. ii-3-16-3, thc Boarci acloptecl stitrst¡¡tial revisions to the Pro¡5ram l:uncling Rules f-or the PUIìMS Liability atrcl Propcrly Pool.s containecl irr the 2011 I[.A, for the ïeasons stated in $ Il thereol'("2016 [-&P Fr.rndrng I?rrlec"l' r\t¡açr /_-

!VHEIIEAS, rhc 20161,&P liuncling Rules were clesigned to facilitate thc Liability ancl Plopcrt-v Pools' ongoing conrirliarrce u'ìth the Program Funding Reqr.tirements contained jn WAC 200-100- 0300i by proviclingrnechanislns to adjustthe I{iskPools'funding 1ì'om year-1.o-¡'car itr t'cspr,rttsc 1t) cþirnges in thc requirccl r\ctuarial Funding Levels estabiislied each year by tlie atrlrual ActL.rarial Rcport tlre Risk PooÌs are recluireci to obtain uttcicr WAC 2A0-100-03001;

\,VHERII,¡\S. Resolution No. l1-3-16-3 provicled in l[ X.D. that tlie Ef[ective Date lbr the 2016 1,&P Funcling Rules r,r,oulcl tte deernecl to be November 3, 2Q16, otrce sttfficient iVferrilrcrs iq:provctl thc Iìcsolr-rtion:

WftIlIìllAS, ¡rrovidirrg Mernbels u'ith an Authorizing Resollrtion for fornally aclopting thc 2t)16 l,.tP FLrncling lìLrles to the IL¡\ uitimately was delayed to allow sonre adclitional arllendtlents to thc 201 1 ILA so all couicl be aclopted at olle tìnte, in one clocutrent;

Wiiäiìü/rS, iirllorving thcir' 2016 adoption by l{esolution, the 20.1 6 l-&dl' i';turciirtg l{Lrics ir¡tvc bcclr lurthcrl'cvisec'l ancl clariJìec1 in several respects, as iclentif-ìeri b,v pink lbnt ìn valiorts placcs iit ii 1 3A oi'lhc 2018 lL,¿\;

WIIEI{Iì¿\S, the 2016l.-&P l,'Lrnding ltules that r,vere adopted at the Novenrber i,2016, i:loarcl lneeiing anii rire aciriitionai revisions ¿urci ciarifications reiet'euceci aìlove are ttow set fòrtir irl iirlai fornr irr Íi i 3,'\ of thc 20ill iLA;

Pt,ll{lvlS LIO¡\RD ) lìllsOt.llTION No. 6-7- l 8-1 38 lìcsolution No. 6-7-18-1 rc ,4ck4ttion a/' j'Ull.A4,S 2018 ,4ruentlecl ttncl ]le.slttled lnter/t¡c¿tl Àgreemenl

IVHIIlìnÄS, the provisions of the I-.tP Funciing Rules that have been clarified allcl arllcntlecl sillcc the original ac'loption oI tllc 2016 L&P FLurciing Rules attcl irtcorpot'atecl into the 20]8 ¡\nrenclccl .ll.A ancl Rest¿itecl are iclentifiecl by paraglaph rclerence atrcl sLrbject heacling fls set oLtt bclolv: t[ 13A.2.2(b) - lìeplenishinr¿ [{isk I'o01 's Actual Bal vi¿r Assessnrcnts -- nnininu the A¡lrclr-u-rt of' the Assessment

{ I3A.8.2 - Ftulclinr¿ bv Con c'ent Reserves Assessnrcnts -- Isslt¿t 2l rrcl Clollection t[ 13A.e.4 - Pre-Funclinq C nt Reserves - Accountine I'or artd P avr¡ent ol' Clainls Costs.

I 134.11.3(a) - Withdi'ar,vinq Me¡nbers' and Forme¡ Members' Oneoing Oblisation to r)av ;\ssessments for insent Reserves

!{ 13,,\.11.3(a) - \\/ithclrar,r,nis o1' Fo er lVfember"s Rìsht to ParLicioate in f)er:larcd Iìefirncl o1' lus

1113A.13.4 - S i¿ri P SC

\TIIERIIAS, the nature, putpose and effect of these amendeclplovisions of the 20161,&P Lruncìirtg tìr-rles have beeit revier.vecl and discr.rssed at the Operations Comnittee meetjng on N4üy i1,2018. ancl the Aclnrilristrative and Executive Comrnittee nreetings on Juue 6,2A18, ancl all clLtestiorts of Cornnrjttee rlellbers rvere satisfäctorily anslvered b), the Administrator attcllor Pl lI{MS Clortllse L fl. Adoption:urd Incorrroration of Previ ouslv Pronosed 2077 "Exloericnce"Amencllnents

WHIiIìliAS, the other provisions of thc 20il iLA that have becn a¡nenclecl alc iclcnti{ìed tr-v paragräplr re ference erncl srLlrject ireaciing as set out belolv (except for the nerv Strppletnetttal Voting Pmceclures r.vhich äre aclch'essecl in r¡iIILC, below):

1T e.1.4. veC Authori to ther Pro grarn l)ocun:ì.ent$.

T 14.6 - PURI/S ancl/or Risk Poois' A tv to Ptirchase Other Ilxcess. Di.tI'erelrt rlr ¡\dcl i tional lqiurance

WHAIì.IIAS, the n¿ìtlìre, prtrposc ancl elfect of these proposed amencln'¡cnts have becn revielved arrd ciiscusscd at the Opcrations Committee nreeting on May 31,2018, aucl the Aclnlinisir.ativc ¿irrcl Executive Conlriittee meetings on .lune 6,2018, and ali qr-restions of'Cotlnrittee ttrcnrbers ivere .satisfactor.ily an.srvereci by the r\drninistrator ancl/or PURlvlS Clouusel.

C. r\clo¡rtion lnd Incn rnor':¡tion of the Nerv Sunplemental Voting Proccclrlres

W[[E]ìEAS, 1hc ne\\, proposecl Sr,r¡rplemental Voting ]'rocech¡rcs amenclìng thc 20ll Il.A ¿rre identifiecl l-r-v ¡rarragralth rcfèrence ancl subject heacling as set orit lrelolv:

PIJI(MS l_ì0Alì.t) 3 lìliSOLtl'i'tON No. 6-7- I fì-1 39 Iìesolr¡firin No. 6-7-78-1 rt: Aclol:tion o/' P (lllluls 201I ¡lmenrlecl and R¿slrttcrl Irtterlrtc'ul tlorrtptr¡pnl

* ti5.3.2 - I)ocurncrrts entai Votin Proccclnrc"

1l s.4"4. - I{ecl r-rirelnen ts o.f' AuthoÌ'i zillr¿ Resolutions

T 6.3. l-loar"cl NIee tincs * One Menlber/One Vote - Maioritv Vote ancl Ouot'r.tnr - Olhcr' Voring Standalcis - Acl iorirrulent and Surnienrental Vo tinç¡ Proceclul'c

WIIERIi¡\S,'l'hc c,herrrges in li 6.3.4 go hancl-in-h¿urd rvith those in !i 5.3.2 (discrrssecl ¿rbovc); Pzrragraph 5.3.2 aliows r-he Supplcmental Voling Proceclure to be appliecl iu anrencling the PI-IRVtS Progranr l)ocuments that are subject to a Votìng Stanciard greater than Majority Votc; Paragrapl:s 6.3.4 altci 6.3.5 set fortlr the sribstance of the new Supplemenläl Voting Procedttres ancl provicle tirat tliey :rpply to urtlt issue that is bef-ore the Boarcl that is subject to a Voting Stattdarcl gleater' than i\4ajority Vote:

if 6..1.4. lloarcl Meetins Proceclures to secure Maxinrunr Menrber Particination in Boarcl Votes on Anrendnlents to Prog.r'anr Dcl ts and Irlnortant ResoÌutions.

(a) Pleset 'l'inre Ranse lo¡ Boarcl V to Faciiitate Merlber" Ilenlote Particinati on/Votins ancl S ns Annlicahle Votins Stand¿rrcls

(b) Not Voti otr tire Decisio V lvlembers' o l)uplicate Ori einal Sisnature Page

(o) Jlrocecir-rre if Decision Issue is not }rinalb, De-c.idecl b-v tlre Vo1gtui-t*llq Roald Meeting.

¿\ n rr Þr'¡rnerlr r rl' ïn [i'¡,'ì ir¡ I l-) (] cT6l{tt-.'""-, rlinrrrnnrenf anrl Srinnlerrrerrtnl \/nti itate S¿rtis Votíns Stanclards f'or Decision fs Ihaf arr: sul'licct to a I-lìshel th¿iu lVf ¿tjority Votc

(a) Member's Rjeht to Subinit a Suppleinental Vote at Iìeconveneçl Mçp1l¡]e r-rntil Finai Resolr-rtion of Board Decision Issue.

(b) Proviclins lvlenrbcrs with Noticq_ of iì.cconvcncd ivlccting__D_gg¡$_Ul aC of' then Flxeclrteci

(c) Iìeconveneci Boarcl lVleetinr¡

( cl ) l)ocrur ent i l!,Ygls alt Rcconvened ivleeting.

WHIiiìttAS, tlic nat.Llre - purposc ¿rnd cflèct of thc uew llrolrosccl Strpplcnrcntal Voting I'rt)cctlLu'es havc bcur rcvicu,ccl anrl cliscusscd a1 the Oircrafions f.lonlmittee mectins on May 31.2018. iLnt'i thc

PURN4S I]OAI{I) 4 l{f1sOl,t I1'lON No. (r-7- I 8-1 40 Iìesolution No. 6-7-18-1 r:c: Ádttptir¡n ol' f't.lRiVISi 2018 ¡lnrctttlecl ¿tncl lle,çtttted lrttct'1oc'ttl Agree menl

Acirninisr¡ative ancl l':,reclrtive Committee nreetings on .irttte 6, 201¡J, altcl all clrlestiolìs ol Clolumittee nretnhers r.vel'e satisl¡lctorily ansrverecl by the Achnillistl'¿ttor atrcl/ol'PIIRVIS ("ltttrrlscl.

IV elnbel-s - ¿ltv cts*A ela a d u

\VFII|RE¡\S. as r.equired by tj 7.1.2(a) of the 2011 ILA, the Board's Agcrrcla sent to il¡lenrbet's tctr (10) ciays bcfbt'e consicieration at its semi-annual meeting on Jitne 7,2018, inclucles a rcl'el'etrccr rhat there rvill bc a Vote ¿it tire Bciard nrecting on lhis Resolution No.6-?-18-1 r'c ilclopliott oI

P U R Ã/1,5' 2 0 I B Á n t e n t{ e cl ancl lle s t a t e cl I nt er I o c ct I il gr e e nt e nl . lVIIEIìE¿\S, by email fi'ort the Aclministlator', clatecl Nzlay 1 0,2A18, all Nlembers were proviclecl a link to thc PtJlìf",fS Websitc rvhere the 2018.Amended ancl Restated iLA is fìrlly set fbrth u,ith the provisions of thc 2011 lt.A that are beìng amcncied identifred irr colol fbnt,

WHIiIllt ¿\S, the sarne infbl'mation rvas provided at tire satne tilrre ilr the sanre nlannct' lry P{-JRMS' Aclministraror to Shannon Stubel of the ,State Rjsk Manager's Ofïjcc, as requircd [r1, WAC 200-100-020i 9r

WHEIIEAS, il 5.4.5 of the ILA plovicles for rrotice ancl a copy of tire proposecl ¿ultenclrnenls to the ILA to be providecl to iV{enlbers thirly (30) days prior to the l3oard trteetitrg to adopt slrch arnenclnrcnts;I

WIIEI{trAS. \\/ACl 200-i00-02019 reciuires a siniilar thirty (30) day rlotice to thc iVletlbcrs ¿rncl the St¿rtc Risk Managet' OIfic,e of arny proposed anrenclmcnts to tlrc bylarvs ilt jttlct'loczrl argreement;2

WIIERE¡\S, thc May 1 0. 201 8, notice r egarcling adoption of'the 201 I Arlrenclecl and Re stater.l I [.¡\ (rvhich inclucles thc 2016 L&P.Funding Rules, the two "Hxpet'ience" Ar¡entlrncnts and the lterv

5.4.5. Ar¡¡entlnlcnt of Il,À -. Notice antl Proccdurc. PUJ{MS shall provide l\4ct¡tbcrs ol'all lìisk Pools rvitll notilrcation olany proposed ¡\nrenclnrents to the ILA thirty (30) days in aclvance o1'thc Roald nreeting at rvhich suclr proposecl Amencllnents are to be cortsidcred and voted ttpon, trlong u,ith a copy oI the proposecl Amencltrents; providecl, horvever:

(a) Wr'ítte n Wliver oJ'Thirty D¿ry Noticc. Noiicc ol-anrenclnrcnt o{'tllc ll,¡\ less tllittt thirt,v (30) days fiorn tlie lJoarul llleeting may Lre ivaiverl by a Menrber's I)ircctor in u,ritinu al llic lltLa¡ri iVlcetirrg rvlttl the sanre el'flcct as thc thirty (30) day ¡e¡içç r'i,tti-tld have l¡acl.

W¡\C 200-100-02019 St¡r¡rcla¡'tls fbr oDçl!!!j!1.U,-_ !\A_tlliç!tti.r:11 of chart-slei !o þ]'-l-S1\i9 9l-Ul-LSl-þç4L¡gISgl!çlL

[ìr'cr¡, .joint sell:insr¡ra¡lcc pro.grânl shall prclvicle ¡iotìficatìon ol the intent. to c]ritngc lìte þ1'lxvvs o¡ i¡lterlgcal ¡rgì-ee¡lenI to c¿rch nlel'nber of the joirrt sell-insurance l)rogran'ì anc] the st¡te l'isk ltliìn¿lgct by regular or electt'onic nlail at lcast thirty days in advance of'tlre rueetine during rvllich a vQte o¡1 [hc proposeci chan.gc rvill occur. Such notiflcation shall include a copy of proposed chan-ees.

PTJI{MS ROAIìI) ) RF.SOLt-l'I'lON No. (r-7- I ti- l 41 Iìcsolrrtion No. 6-7-18-l re rlcloption al P{JRÌ¡lS 201I Amcnlletl und llestcLte¿l InterlocctÌ À greemenl

ciranges {o the SLr¡tltlertrcìr1ai Voling iiroceclurcs), technically, was 2 days shori of tlte required thirty (30) rroticc to iVlcntbers regai'c1ing amenclment of the I1".¡\ lbr consicle t'alion ¿ìt the .ltrtle 7. 20 1 8, Scnii-1\nnual llc¡ald ìvlecting:

WHL,RÐAS, ¿rll ol'the amenclments in substantially their current lbr¡n, cxcept f'or lhe tter,v chattgc,s to the Supplenteritiil Voting Proccclures^ wereploviclecl to lvlernbel's on October3,20l7, thirty (30) der1,s 5.1¡tc thc Board's Novcmbcr2,2017, Annual Meeting at whicli they rvere originalìy sct ttr be consiclerccl (ì-rereir-raftcr, coJlcctivcly re ferreci to as the "Froposed 2017 ILA Anrenclnretrt.';"),

WIIEIìIìAS- all of thc Ì)r'oposecl-2A17 ILA Ame.ndments, inch.rcling tire adclitiona.l clariflcations ttl the 2016 i,.8"P l;uncling lìulcs, wele lrresented and discussccl in some cletail at the October 25. 2017, Operatìons Committee nreetirrg;

IVHBIìI¿AS, ll -5.4.5(a) of the TLA plovides that notice less than tlrilty (30) clays bef'ore the lJo¿rrcl meeting rnay be r.vaiveci by llre l)ir:ectors in writing at the tneeting;

WllhllllfAS. all Dilector"s ol Voting Representatives present at or participating ìn lhe.lLutc 7. 2018, Senti-AltnLral Boarcl rleetillg were prc."'ided an opportunity to objcct Lo lllc Z-Cay shortcl'- than-requirecl notice ancl ncr velbal or r,vritten objection was macle;

WIIBREAS, this Resolution No.6-7-18-1 shall constitute such awritten waiver of any clclì:clive notice as contemplatecl by If,A ï 5.a.5(a);

}VHIiRIIAS, givetr

(a) PtJIìiVS'plior discr:ssions of th.e Proposecl 2017 IIA Alnendnrents, incìuclìng sr"rbscquent clranges ancl cla¡ifications lo the 2A16L&l> Irunding Ri"rles; ancl

(b)"1'hc cover le[ter-to I)tJltlvlS lvlernbers, clated lvlay 8,2018, subrlittecl by PiJiìN4S'Cencral Ctlunsel ¿ilon! r"r,,!¡h thÈJ 2018 Arnendecl and Rest¡ateci II.y'.,'¡¡hiclr e::1;l:rins tl:c Jristcr'.,anci l'ea:;on..i l-or PUI{rVfS't:riginal Sr-rpplenrental Voting Procednre containcd in the 20li Il-,\, ¿ilid fii¡tltei'exltlains the reasons for ilie llroposed amendmertts thereto i'eflectecl iti tlie rrew Supplerlental Voting Procechires;

'Ihe Bo¿rrcl, zrncl the I)irectors participating in the Boarcl meeting, fincl it necessary arid ap¡rro¡rriate to waive thc thirty (30) clay llotice lecluirement of ILA T 5,4.5 fol"the t\,vo days'sl'lolt notice unrlcr tlre cilculnsl"ances; and

Wiìiiiìft1¡\S, thc Lloarci fìrriher iincïs lirai the two days'short noticc of'the anrencin'rcnts rcllcctcci in tile 2018 ¡\mcnclecl ancl Restatecl IL¡\, under the circnurstances, constitutes subst¿rntial conr¡rliancc: with tlic notice t'cc¡uiLcmetit ol-\\¡¡\(l 2A0-100-02019, anct to the extenl tliel,i¡¿11,¿ lc.r¿al aì.rtholil1, 1,-, cio str, Lhc i-l

PTJIìIV1S BO¡\IìD 6 RllS0i.t.ll'lON No. 6,-7 - | 8-1 42 lìesolutinn No., 6-7-18-i rL' tldo¡ttiott tl' PtlllfulS 20I <3 An¡encle tl u¡tr.l lle,ytutt:.tl lnterlot'ul 'lgt"eemen/

V. llr-irnl Þ'indincs'with respect to 2018 ¡lrnenrìcrl :r¡rcl [ìestaterl ll,¡\

WlIllfìE¡\S. thc PtJlìlVS Aclniinistrative Comlnittee ¿rlcl Lr.xecutive (.lonrmiltec aì'c lccoÌllnlcn(ling that the Boald" anil PURMS' Membels: (a) apptove ancl aclopt ail of the proposecl amenclments to tlie 2011 interlocal Agreetrrent; and (2) approve and aclopt the 2018 ¿\nrended artcl Restatec.l ILr\, as so arnendccl;

WIIIiRIìAS, the lJo¿ud has revicu,ccl the anrcntlments tr¡ thc provisi.ons ol'thc 20ll ll.z\ ancl Boarci members havc askecl \,vi"iatever questions deenrecl necessary of the Aclrrinistratclr ancli'or Gerreral Cor-ursel regarding the szirne, ancl the Boarcl finds the proposed anrenchlcnts to the 2ü I I il.A ¿urcl tire acloption of the 2018 Anrcndcd and Rcstated ILA are erppropriate to the operltìons ancl fincling of the lìisk llools. vI. Voti¡lg St¿rndard - Unani¡nous Vote

\,VHEIIIiAS, all i)URMS Vfembcrs tlrat participate in ¿rt least one Risk Pool rnust be signatories to the hrterlocal Agreernent;

\ryHEREAS, this iìesoiution No. 6-7-18-1 and trdoption of tire anlenclments to the 2011 IL¡\ requilc ¿r {-lnanirnous Vote olali PIJRMS'cun'entMembers signatory to ti-lc 2011 IL¡\ (.rc¿ IL¡\ * 5.4.i(a) and 5.4.2). VII. Definitions for 2û18 ILA

'WIilIitìE¡\S, nlost il nol all o1'tile rvorcls arrd plrrases iii lhe 2018 ¡\menclccl ¡ncl Iìestatecl ll-A ncccling to l^rc clcfìncd arc short-titletl u,here fìrst used in the te.rt of t.he IL.,\:

\\¡l.ii-Rlì¡\S, t'or corlvenience of lirtnre rcfcrencc, an alpliabetical list of thcsc short-titlecl w()r(ls artcl phrases. r,vith cross-rc[crenccs to parâgraphs in the II,A r,vhere tliey are rrsed, will bc ¡rLrblislretl on PURNÍS' \fuctrsite. VIII" EíI'ective Dates of'Arnendnrents fncorporatecl in 2018 ILA

WltBlìIJ¡\S, the effective date for acioption of the 2018 Amenclecl ancl lìeslated iL.¿\ shall be decnrccl to Lrc as of'Jr"rne 7,2018, notwilhstanding the clate thal the l¿rst PURiVIS iVletrbcr-¿il)pro\/es this lìesolr,rtìon No. 6-7-18-l purstrant 1o the Unanimons Voting Stanclarcl, except 1o the extcnt proviclccl olhcnvisc in !11Ì ,4., IJ. aucl Ll. belorv:

A. WIIIIR"|'],,\S, thc cil'cctivc clatc tòr thc 2016 L"tP ì''r-urcling Iìi,ilcs shall lrc as of Novcrnbcr'3. 201{:, as ¡rroviclecl in lìesolution No. 11-3-16-3 arlopting those lrundirrg IlLrles, which slr¿rll also be tlre cfièctive date of t]re aclditiotral amenclrrents to the 2016 L.&P FrLulclinq lì.ulcs ['rcinr: itp¡n'oved pursuant to this lìesolutionNo. 6-7-18-1, as iclentìflcci in (¡f 1li.A:

PURN,IS iJOA]U] 7 RllSOl.Ul'lON No. (r-7- I 8-l 43 Ììesofirtit¡n No. 6-7-18-t ic: ,,lilo¡ttion o/ l'{illiVíS' 2018 ;lntenclecl ctntl Rc:s'ttttccl [¡itarlt¡c'ttl tJ,\tÁ,,r,¡¡t¡,¡',ttt t.r¡ttçt''

¡1. VVillÌRItl,¡\S. the ei'lèctive ciate for the !:ixperience Anrenclnrents shaii lte as of tlie efi'cctive cla{e o1 this 20i8 ¡\nlenclecl ancl lìcstatecl ILA, as provided in the frLst W}'IERE¡\S claLrsc i¡r this ijVlll; ancl

C. }YHIìIìEi\S, tlre Autenchlcnts eslabljshing or relaling to the ner,v changcs lu the Supplenrcntal Voting Procedures (incltrcling thc lflf iclentified in III.C. above) shall be effèctive as of thc cfltctivc rìatc o1' tlie 20I8 ¡\rnenclecl ancl Iìestatecl lLr\; proviciecl that such Sr,rpple nrctltll Vr:tirrg Procecllu'cs shall Lrc rlccrncd cllective ancl appiicable, retioactively to the cxtetrt lucccss¿u-)/ JÌrr sr:ch Procçclnres to be applic¿rble to dre Vote to ¿ìpprovc ettrd atlo¡rt this 20 I fl Ar:tenclecl encl lìes;t¿rted ILA.

IX. RITSOLI]TION

NOW, T}IEtttrþ'OllE" be it resolveci that:

A. ¡\rloption of fhis Resolution No. 6-'Ì-18-1

The Boarcl irereby aclopts tliis Iìesc¡lution No,6-7-18-1in its entirety, giving substantive efl'ect tcr the WllEl{EAS clauses r,vhere appropliate. This Resohrtion sliall become eff-ective, ?.Ìs olJune 7. 20i8, on the clatc the Voting l{epresentative of last PURMS Member signs the Resolutiolt or a PtlI{MS Officer signs tlic Resohrtion olr behall'of and with the express authorization o.f a Menll¡et'" thereby rnaking the Vote for acloption of thc 2018 Anrended and Restatecl I[,4 tuanitnoLls.

Iì. Adontion ol20l8 Amcnclccl a¡rd lìes tl tecl ILA

l'he Lloard hel'ebv Votcs tr¡ ¿rclopt the 2018 ¡\ntenclecl and Restatecl lLA, in the T'onrr publisheci trt tlle lVlclnbcls on Ij,tJ.ll.i\4S \\¡ebsite on Nfay 10,2018, sr"rbject to thc llxcct-ttrvc Comn.rittec'.s

ongoirig aLrthorit.v r,r,ilh respect to tlic s¿ìt1lc, as provideci in 11 9.4.1 of the 2018 Ii,,;\, ancl fìrlthcr .,.,1.ì^,.r r/\ a11!, r',r1-.crn,.ri',-,.,'*,-','';,,-.'.,,. a:.,'.,5'.,'l /-.""".-.'l Jaiirjúva iii c¡lr_y rrlrrlr.)rur^.i,.i,.t^-i^l r(¡l \/¡ ¡r\r¡¡-.)L¡UJl¿ltlL, \'v uultvvllUilJ vl wwllrv¡¡rrlrlË^^,.f'-,-,..;,',' ^1.,-,.,',..,.utt(ltJËL.) \.rv¡rulctl \'\,t¡l¡.ì!l dctemrines nced to be ln¿rcle pric;r'1o final publication of the 2018 ILA on PURÌr4S' Websitc.

,, C'. Post-Board Meetins Action - Nlember Ado of 01 8 Amcnded ,tn d R cstatcd ILA bv Authorizing Resolution - I'ublicntion of.Z018 ILA.

l. ,,\uthorizing lì.esolutiolrs lbr Members ¿rnd Exccution of Duplicate Original Signlrturc I'ages..liollor,ving tirc Iloai'd nreeiing, thc Administrator ancl Gencral Corinscl slrall ¡rroviclc each iVlerntrr:r^r,vitlr ¿r for-nl of'¡\Lrthorrzing Resolution for tite Mernl:er lo iise 1o reflecl thc ir¡r¡troval ancl aclci¡rtio¡r of'the 2018 Ämended and l{estatcd IL,A by the N4cmber's gt)r'cr-ning body. Each iVle¡lber shall also be proviclecl with a ciLrplicate original signziture pagc lbr lhc 2018 ¿\nrcnclccl ¿rncl llcst;rtecl ILA to bc e;recutecl by the l\4ernber rellresentiìtivc clcsirln¿rLcd in tirc iVicrulrcr''s ¡\Lrtiiorizrng l(csoirrtit¡lr. lire irrioplccl z\rrtilirrizinq ltcsoirrlit'rn iulcl tlre' signccl clnpliczrte oliginal Sigltature Page fbl the 2018 iI-A sìrall bc l.ctur¡rerl to Pt.JIlN'lS' ,¡\cinri nistr-¿rtor- in clue coursc.

PUIII\4S BOr\RI) I I{ESOI-L11-ION No. 6-7- l8-l 44 Resolution No. (r-7-18-1 rc: tltlo¡stion tl l'UlLM,S 2t)l I Atne.ncle¿l rtn¿l \ie,çtttte¿l lnterlocul Ågreement

2. Publication of'2018 II-A to lVlembers on PURNIS' Welisite. The fìnaì apl;rovccl atlcl acloptecl 2018 Antenclecl ancl Restatecl ILA shall be publishe

3. Il,A Tahle of Contcnfs ¿rnd Se¡rarate Alphabetical I,ist of Definitions for lVords antl Phrases used in 2018 ILA. l'o facilitate Member access to ¡rrovisions ancl use atlcl Ltnclcrstancling of thc 2018 II-,A., t1:e Website shall also provicie a'l'able of Cotrtents fbr the 20 i 8 ILz\ ancl a sellaratc alplrabetical lisl of Definitions lor the rvords atrcl phrases trsecl irr the 2018 Il-¡\.

D Onrre¡ing Iixecutive Committee Authoritv Consistent r,vith the atrthorìty cif Lhc þlxecLtlivc Comrnittee, as clarified in'll 9.1.4 of the 20l8ILA, the Executive Committee sltall have lhe authority to m¿r.ke cìecisions regarcling any issue that arises in connection r,vith final arlttptioit anci pr-rblicatíon of'Lhe 2018 ¡\mcnded and Restated ILA, subject to revicw by the lJo¿rrcl ¿rncl proviclecl in ll 9.1.4^

X. RIICORD of ROLL C¡\LL re Nlembers Present or P¿ì rticinatinr¡ in Mcetins llemotelv l. PIJRìWS Bo¿rrcl consists of a total of nineteen (i9) ivlembers ancl the allirnrative Vote o{'all Membe¡s is rcqr.rired to pass this Resoltttion No. 6-7-18-1.

2. Tire Rccorcl ol'the I{oll Call at the Boarcl lvleeting is as lbllorvs [Noæ: to be cortrp]eted irl hancl ¿rt the iVlecting by or Lrncler tlie direction of a PURTVIS OfTìcerJ:

¿¡ IVlembers llarticipating in the ille cting Remotely (via telephonc confercnce call):

N¡¡æ_ol'Menrber Name of Voting Rcprese.¡'itative

i{ '¡ n 1l/c,c ÃlÊt f'v|*

L' c

tl Vle nrbcrs r\bse nt and not Participating or Voting Remotely: t\löi.lr,

1u-¡lttti+u'iA ¡)i¡ô Ri¡roy fru È¿^ia¿t Þ¿{¿ lrrrib PltjRN4S I]OAiìI) I i{ESOL.i.r I ION No. 6-l -18-1 45 Resolution No. 6-7-! tl-l le rldoption of PURMS 2018 Antencletl ctnrl lle.vta¡ecl Interlocttl /lgreentenl

Iìased on thc Roll Clail, a Quonrrn o1'.-._-. PIiRMS Directors entitlecl to Vote on this Resoliition vvas pl'esent at or otheru,ise participalecl in this June 7, 20i8 Senli-AnnLral Board lt'zieeting.

XI. P.BCORD OF VOTIIS For Resolution No. 6-?-18-l

N:rme of iVlcnrbcrs \¡ctins ¿¡t the Vlembers Vûtine Via Signnturc and l)¿rte r¡f PURIVIS Nlccting or Voting Reconvenetl Meeti¡l lfitle of lV[embcrrs Signatr¡re Member Re_mqtelv* fpr,u'suant to Supplenr enta! V¡¡finr¡ * l'[Jse initials of' Voting Voting Plocedure] R*rrr*r*.nãtirq i(e eTìtatlve Yote /g; Yote egçLU*.\! Yote for Yote against Resoir-rtìon Resolrrtion Resolution f{esolution No.6-7-18-1 No. 6-7-18-1 No. 6-7-18-1 No.6-7-18-l

Asotin PUI) ¿-sarrt þoZ{ry ./\ -. ^^ ' ¿-A't/þ- I ,-- - r- 'i Ln¡ -/ L-J//yft?Luv-- t¿z - -D /ð l-/ lv

Ilenton PUD V, ./ Ø=zæ ç{> lt( /1./L---J TtW¿u¡¿C Clallam PtJI) I

tr5/,on Grays Harbor I'U t) lrlX'-^-: ¡4lr"t;,t .Y¿t";,¿rn v'tt,,/-¡i -'/ ,t.î Ç' "' / .:1:i¡tr-i'lrì-lv , .IclTerson PUD :\ \-/¿ ,(í *r,r- < a/Ìt¿ù/ "' - ''7-tf I i(itsap PUÐ I r.þ Þtt\.À5 l**f- ¿e ÞerP Ê r r2

Lervis PIJI) f\ f\ nn . /vdÀ¿./\r ^ I \ ¿¿\,À*å-. Å-)^U l' Ca t-rrn¡g-ç'¿c¡,?r- e-'l lg Nltson PtJl.) No.3 .¿í-f ' i:," / --, i, NoaNet ív w r t::1' { Ø PUIIMS BOAI{D l0 RIISOLLJTION No. 6-7-I 8-I 46 lìcsolution No. 6-7-18-l rc'. llcloptian o/' PLlRÃ,1,5 2018 tlntencled oncl lle,slcttecl lnterloc¿t' ;lgreentent

v Oli:rnogan PUD ( fåA/- fueÅ,tg 6't'tå Clc- Èçro Pacific IlUl) No.2 L" 7'/Y 4uw*u-t\¡s"¡n , ¡s Pend Oreille ( (*^ i" t{: PUD û&_ C."t"l ô4 rss¿ o^,Lrç'rL- Skagit PUD ,/ nt4 fl./¿rl, U"z/ I Skamania PUI) A ttc þu Êt\).9 à-*r. t Þ* Brne.rrt- Stevens PUD fur'v,^{H* Ø 7 b T4- 6rne,,øtl ú^^2l^- Thurston PUf) /l ,[At le**-- L-\.. ( ' lY|) ørw> L-7,t; - Þt'.= tDe'q r Wahkiakum fu¿¿ qlf PUD +J,\) butloø, odaü Jlud t hr Whatcom PUD (.'^ 17'l'' i^'t:,i|4 Y/L) t,.I "t/ '/,() {

'k A PLIRMS Of licel shall i¡rdicate the Vote and sigu the signature space and inserl the clate for the Votes of any fVlembels Votirtg Rernotely at the Meeting.

PURIIS OFFICERS: By signature below, the indicated PURMS' Olïiccrs Attest to:

(1) 'fhe RECORD ol'ROLL CALL reflected in u X above.

(2) The Summ:rra of Voteslom tlte Meeting as reflectcd belorv b¿¡sed on the lìFlClOllD of VOI'ES in t[XI above.

Number of Votes fìecluirecl to Pass the Resolr-rtion: ti

'fotal NLrrrrber of-Mernbers that Voted at the lloard Meeting {

'l'otal Votes in fàvor of Resolution No. 6-7-18-l:

Nurnber of'Members that clici not Vote al lSoarcl .lVfeetirrg; û

PURMS BO¡\R]) 1t RtsSOLtJl'lON No. 6-7- l8-l 47 Resolution No.6-7-18-I re: AcloJttion of PURMS 2018 Antended ancl Restatecl Interlocal Agreenzenl

ICentity of Nlembeis that did not Vote at Board lvleeting: Lta-rlt-¡

Status of Vote ns of Conclusion of Bo¿rrd Mee

(3) Nlotion fbr Acljournment and lìecorrvenecl lloard lVleeting

Tlris section to be compìetccl.] Date: (- I ' l'ts Kn omrnissioner, Pend Oreille PUD PURMS Presidenl

By Date Conrmissioner, Kiickitat PUD PURMS Vice-Presicient

Date d"'-" t8 Don Nuxoll, Comrnissìoner, PURMS Secretary

PURIVIS I]OARD 12

RESOLI,JTION No. 6-7- I 8- I 48 BENTON PUD Authorizing Resolution No.2471

EXHIBIT 2

Duplicate Orieinal Sienature Pase for PURMS 2018 Amended and Restated Interlocal Agreement

ASOTIN COUNTY PUD BENTON COUNTY PUD By: By: Its: Its: Date Date:

CLALLAM COUNTY PUD GRAYS HARBOR COUNTY PUD By: By Its: Its: Date: Date:

JEFFERSON COUNTY PUD KITSAP COUNTY PUD By By: Its: Its Date: Date

KLICKITAT COUNTY PUD LEWIS COUNTY PUD By By: Its: Its: Date: Date:

MASON COUNTY PUD NO.3 NOANET By: By Its: Its: Date Date:

OKANOGAN COUNTY PUD PACIFIC COUNTY PUD NO. 2 By: By: Its: Its: Date Date

PEND OREILLE COUNTY PUD SKAGIT COUNTY PUD By By Its: Its: Date: Date:

SKAMANIA COUNTY PUD STEVENS COUNTY PUD By: By: Its: Its: Date Date:

Signature Page for PURMS 2018 Amended and Restated ILA (Duplicate Original) 49 BENTON PUD Authorizing Resolution No.2471

EXHIBIT 2

THURSTON COUNTY PUD WAHKIAKUM COUNTY PUD By: By Its: Its: Date: Date:

WHATCOM COUNTY PUD By: Its: Date:

Signature Page for 2 PURMS 2018 Amended and Restated ILA (Duplicate Original) 50 Business Agenda Second Reoding X Consent Agenda

I nfo Only/Possible Action lnfo Only COMMISSION MEETING AGENDA ITEM

Su bject: RFP Contract Award #L8-16-02 Bank of America Agenda ltem No: 7e Meeting Date: August 28,20t8 Presented by: Keith Merc", (M Staff Presenting ltem Approved by (dept): Jon Meyer Director/Monqger )/.q( o_ Approved for Chad B. Bartram General Manager/Asst GM Commission review: {ñþ

Motion for Commission Consideration Motion authorizing the General Manager on behalf of the District to sign a contract with Bank of America, Contract #t8-I6-02, for banking service fees for a not-to-exceed amount of ' S120,000.00 for a term date of January L,2019 through December 3t,2O2L

Backsroúnd The District's existing banking service fees contract is with Bank of America and expires December 31, 2018. After evaluating our current banking service needs, a Request for Proposal (RFP) for banking services was sent out on May 29, 20t8, with proposals due July L0, 20L8. The following banks submitted proposals:

o Bank of America ¡ Banner Bank o Washington Trust Bank o Umpqua Bank

District staff evaluated each proposal using pre-established criteria and Bank of America received the highest score. The scoring/selection criteria included, but was not limited to the Bank's financial position, Bank's ability to pledge adequate securities against District funds, experience in providing bank services requested in proposal to similar accounts, ability to meet service requirements, proposed fees, charges, and rates, cost of transitioning to a new bank, and cash management products availablethat will enhance the District's banking procedures.

Summarv Recommend entering into a contract with Bank of America for banking service fees beginning January I,21tg and expiring December 3t,2O2t in an amount not to exceed $L20,000,

Fiscal lmpact Banking service fees are included in the 20L9 budget in the amount of 535,000.

51 BEffiOT

CoNTRACT #18-16-02

PUBLIC UTILIW DISTRICT NO. 1 OF BENTON COUNW AGREEMENT FOR SERVICES

"Banking Services and letter of Credit"

PARTIES

This Agreement is entered into by and between Publíc Utility Distrid No. 7 of Benton County with its principal place of business located at272L W. L0th Avenue, Kennewick, Washington, hereinafter referred to as the 'District" and Bank of America - MerrÍll Lynch with offices and its principa I place of business located in Seattle, WA , hereinafter referred to as the "Controctor" .

STATEMENT OI WORK

Provide the District with banking services and a Letter of Credit as described in Appendix A

III. COMPENSATION

Ihe Contracforwill be paid within a period of thirty (30) days after receipt of invoice and in accordance with Appendix B - Schedule of Payments, attached hereto.

The maximum amount payable by the District to the Controctor under this Agreement shall not exceed $12o,ooo.oo.

IV TERM OF AGREEMENT

This Agreement shall commence on January L,2OL9 and terminate on December 3L,202L.

V DOCUM ENTS INCORPORATED

The following documents are, by this reference, incorporated into and made a part of this Agreement for Services.

Appendix A - Statement of Work Appendix B - Schedule of Poyments Appendix C - Speciol Conditions (if opplicable) Appendix D - Reimbursement of Expenses Appendix E - Confidentiolity ond Non-Disclosure Agreement

1 Rev. 10/6/14

52 REffiOT -F-A-ll coNTRACT #18-16-02

Also incorporated by this reference are "General Terms and Conditions Benton PUD Agreement for Services" (attached).

VI. ADMINISTRATION

The District's Contracting Officer for this work is Michelle Ochweri. The District's Technical Representative for this work is Keith Mercer.

VII. BOUND PARTIES

This Agreement shall be binding upon the parties hereto and their representatives, heirs, executors, successors and assigns.

VIII. EXECUTION

lN WITNESS WHEREOF, the parties hereto have duly executed this Agreement.

The District is a public entity subject to the disclosure requirements of the Washinglon Public Records Act of RCW 42.56. The vendor expressly acknowledges and agrees that its proposal and any information vendor submits with its proposal is subject to public disclosure pursuant to the Public Records Act or other applicable faw and the District may disclose vendor's proposal andlor accompanying information at its sole discretion in accordance with its obligations under applicable law.

The District must comply with the Preservation and Destruction of Public Records RCW 40.14. The vendor expressly acknowledges and agrees that it will maintain all records and documentation related to the contract in accordance with its obligations under applicable law.

PUBLIC UTILITY DISTRICT NO. 1 BANK OF AMERICA MERRILT TYNCH OF BENTON COUNTY

By By

Title Title

Dote UBlNumber

Dote

2 Rev. 10/6/14

53 ßErlr0il

CONTRACT #L8.L6.O2

GENERAL TERMS AND CONDITIONS Benton PUD A8reement for Services

1. DÉTINITIONS

A. Distr¡ct "D¡strict" shall mean Public Utility District No. 1of Benton County, a municipal Corporation of the State of Washington

B. Contractor "Contractor" shall mean the person, firm, partnership or corporation who has executed this Agreement.

C. Subcontractor A person, firm, partnership, or corporation having a contractwith Contractor or with a Subcontractor to any tier of Controctorfor the performance of any part of the work.

2. AGREEMËNT

This Agreement represents and ¡ncorporates the entire understand¡ng of the parties hereto concerning the statement ofwork specified in Appendix A, and each party acknowledges that there are no warranties, representations, covenants or understandings of any kind, manner or description whatsoever by either party to the other except as expressly set forth and herein above written.

3. INDEPENDENTCONTRACTOR

lnperformingserv¡cesunderthisAgreement, Controctorshalloperateasandhavethestatusofanindependentcontractorandshallnotactasorbean agent or employee of the Distflct. For this reason, all of The Contractor's activities will be at its own risk.

Contractor confirms that Controctor has not retired under the Washington State 2008 ea rly retirement factors program.

4. PROFESSIONATCONDUCÏ

Contractor agtees to perform its services w¡th that standard of care, skill and diligence normally provided by a professional person in the performance of such services in respect to work sim¡lar to that hereunder. Contractotishereby given notice that the Drsfrrctwill be relying on the accuracy¡ competence, and completeness of Contructor's services hereunder in utilizing the results of such seryices.

5 INDEMNIFICATION

Contractor shall protect, hold free and harmless, defend and pay on behalf of the Disfricf (including its managers, commissioners and employees) all liability, penalties, costs, losses, damage, expense, causes of action, claims, or judgments, (including attorney's fees) resulting from injury or death, sustained by any person (including controctor's employees) or damage to property of any kind which injury, death, or damage arises out of or is in any way connected with controctor's per'Íormance of this contract. Controctorl hold harmless agreement shall apply to any act or omission, willful misconduct or negligence whether passive or active, on the part o't controctor (its agents or employees); except, that this agreement shall not be applicable to injury, death, or damage to property or persons arising from the sole negligence or the sole willful misconduct of Public Utility District No. 1 of Benton County, its managers, commissioners, and employees.

ln any and all claims against the Distrrct by any employee of Controctor, the indemnification and hold-harmless obligation herein shall not be limited in any way by any l¡m¡tat¡on on the amount or type of damages, compensation or benefits payable by or for the Cont¡øcfor under worker's compensation acts, d¡sability benefit acts, or other employee benefit acts, AND CONTRACIOR SPECItICALLY AND EXPRESSTY WAIVES ANY IMMUNIW UNDER SUCH ACTS. CONTRACTOß ACKNOWIÊDGES THAT THIS WAIVER HAS BEEN MUTUAIIY NEGOTIATED BY THE PARTIES.

6. INSURANCE

the Controctot shall have, and mainta¡n throughout the Contract period, insurance and benefits in the following minimum requirements:

(a) Workers' compensation insurance, Social Security, Federal lncome Tax deductions, and any other taxes or payroll deduct¡ons required by law for, Rev.07t14t11 3

54 BEilTOil

ä.ll.D CoNTRACT #18-16-02 or on behalf, of its employees.

(b) Employer's liability, professional liability, commercial general liability (bodily injury and property damage) and comprehensive auto-mobile liability (bodìly injury and property damage) insurance, with each policy having maximum limits of not less than 51,000,000.

(cl Contractor shall provide an endorsement on the Commercial General Liability and Property Damage policy naming the District as additional insured and add a separation of insured clause or a cross liability endorsement.

The Dlstflct shall have the right at anytime to require commercial general liability, automobile liability, and property damage insurance greaterthan those required in subsection (b) of this section.

Contructor shall deliver to the Purchasing Department of the D¡str¡ct, no later than ten (10) days after award of the Agreement, but in any event prior to execution of the Agreement by the Drstflct and prior to commencing work, Certificates of lnsurance, identified on their face as the Agreement Numberto which applicable, as evidence that policies providing such coverage and lim¡ts of insurance are in full force and effect, which Certificates shall prov¡de that not less than thirty (30) days advance notice will be given in writing to the D,strict prior to cancellation, termination or alteration of said policies of insurance. Suchadvancenoticeofcancellation,term¡nation,oralterationofsaidpoliciesshall bedeliveredtothePurchasingDepartmentoftheDrstricf.

7, WA6ES

lfapplicable,TheContractorshall complywithRevisedCodeofWashingtonSect¡on39.12,providingforpaymentof prevailingwages. Noworkman, laborer, or mechanic employed in the performance of any part of th¡s contract shall be paid less than the 'prevailing rate of wage' as determined by the industria I stat¡stician of the Department of Labor a nd lndustries. The sched ule of the prevailing wage rates for the locality or localities where this contract will be performed is by reference made a part of this contract as though fully set forth herein.

It will be the responsibility oÍ the Contractor to pay all filing fees necessary to comply with RCW 39.12.

Additionally, the Contractor shall conform to the wage rates, employee benefits, and working condit¡ons expressed in the current collective bargaining agreement applicable to l.B.E.W. Local 77 construction membership. Verification of payment will be furnished to the Drsfrict by way of certified payroll documents upon D¡'stíct request. This requirement can be fulfilled bV the Controctor having an agreement with Local 77.

8. PERIORMANCE BOND

fhe Contractor may be required to furnish a performance bond in the form attached hereto with a surety author¡zed to do business in the State of Washington, in a penal sum not less the 100% of the contract.

9, DISCOVERY OF CONFTICTS, ERRORS, OMISSIONS OR DISCREPANCIES

lncaseof conflictordiscrepancies,errors, oromissionsamongvariouspartsoftheAgreement,themattershall besubmittedimmed¡atelybyControctor to the D,stnct for clar¡fication. Any work affected by such conflicts, discrepancies, errors or om¡ssions which is performed by Contractor ptiot to clarification by the District shall be at Contractor's risk.

10, SUBCONTRACTS

Any contract entered into by Contractor wlth any subcontractor or any person or organization for the performance of this Agreement or any portion thereof without prior written consent of D,sf/ict shall be void. Consent will not be given to any proposed contract, as mentioned above, which would relieve Contractor ot its surety of their responsibil¡t¡es under this Agreement.

11. COMPLIANCE WITH I.AWS

This Agreement shall be governed by and construed in accordance with the laws of the State of Washington.

Contractor shall promptly give all notices and comply strictly with all laws, codes, ordinances, rules, orders and regulations applicable to the work. Contractor shall hold the Drstnct harmless as a result of any infractions thereof by it or any of its Subcontractors.

Without limitation on the forego¡ng,the Contractor shall comply with (¡) the Washington lndustr¡al Safety and Health Act (WISHA); (ii) if required, Executive Order No. 11246, dated September 24, L965, as amended by Executive Order 11375, including posting of notices, filing of reports, and initiation of programs; and, if required, the Contractor also will contract with all of its vendors, subcontractors, and/or agents to comply with the foregoing Executive Rev.07t14t11 4

55 REilTOIJ -P-A-l' CoNTRACT #t8-L6-O2

Orders.

12, TERMINATION

The Distflct may, by written notice to the Controctoö terminate this Agreement in whole or in part any time, e¡ther forthe Distr¡ctb convenience, orfor the default of Confroctor. Upon such termination, all data, draw¡ngs, specificationt reports, estimates, summaries, and such other information and materials as may have been accumulated by the Controctor in the exclusive performance of this Agreement shall, in the manner and to the extent determined bythe Drst cf, become the property of and be delivered to the D,stflct.

lf the termination is for the convenience of the Drstnct, an equitable adjustment in the Agreement price shall be made by Agreement be|.lrreen Contructor and the D,'strrcf in the compensation to be paid Controctor under this Agreement, but no amount shall be allowed for anticipated profit or unperformed services.

lf, after notice of termination for failure to fulfill Agreement obligation, it is determined that the Contractor had not so failed, the term¡nation shall be deemed to have been effected for the convenience of the DisÜ¡ct. ln such event, adjustment in the Agreement price shall be made as provided in paragraph ii, above.

The rights and remedies of the D,stricf prov¡ded in this Article are in addition to any other rights and remedies provided by law or under this Agreement.

13, CHANGES

The Drstrrcf may at any time, by written order, make changes within the Statement of Work of the Agreement in the serv¡ces to be performed. lf such changes cause an increase or decrease in the cost of, or time required for performance ofany services underth¡s Agreement, an equ¡table adjustment shall be made and the Agreement shall be modified in writing accordingly. Any claim for adjustment under this Article must be asserted in writing within thirty (30) days from the date of receipt by the Contractor of the notification of change, unless the D,stnct grants a further period of time before the date offinal payment under the Agreement.

No services for which an additional cost or fee will be charged by the Controctor shall be furnished without the prior written authorization of the D,'st¿ct.

14, PROGRESS REVIÊW

The services performed under this Agreement shall be subject to review by the Dr'strict. This periodic review shall not relieve the Contractor of responsibllity for proper performance of the services.

15. AUDITS

The Contractor shall, during the l¡fe of this contract and for a period of three (3) years following final settlement and close out of the contract, reta¡n sufficient evidence, which shall be freely disclosed to the Drstrrct, its agents, representatives and the Bonneville PowerAdministration to permit ver¡fication of proper performance of entitlement to payments for work under this contract.

76, PUBTIC RECORDS

lhe Contractor shall provide public records submitted in the manner directed by the D,st,bt the Contrøctot shall maintain on file and have available to the Districf its calculations in legible form for a period of three (3) years following termination of this Agreement drawings, specificationt reports and any other documents prepared bY the Contrøctor in connection with any or all of the services furnished hereunder shall be the property of the D,'stflct

L7, INVOICES

Contractorshall invoicereferencingthisAgreementnumberandtheWorkReleaseOrderNumber,ifany. lnvoicesshall benumbered,itemizedand supportedbyproperdocumentationinaccordancewiththeprovisionsofAppendixB,Scheduleof Payments. lnvoicesaretobemailedinduplicatedirectly to:

Benton PUD Attn: Accounts Poyoble PO Box 6270 Ke n newi ck, W oshi n gto n 993 36

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CONTRACT #L8.L6.02

18. REIMBURSEMENT OI ÊXPENSES

General: Expenses of a personal nature which do not benefit the Drstrict and which might have been ¡ncurred whether or notthe traveler was on official business are not reimbursable. These include entertainment, alcoholic beverages, clothes laundering or dry cleaning, traffic violations, s¡de trips not related to Dr'str,¡t business, expenses of family or other persons not authorized to receive re¡mbursement from the Drsfíct, trip insurance, and personal purchases. Receipts for hotel/motel accommodations, air travel, and rental car shall be attached to invoices as documentation of expenditures, regardless of amount. Receipts for taxi, other forms of local travel, parking fees and other incidental expenses need not be attached unless the amount of the claim exceeds $35 per item.

Transportation: Travel should be by the most d¡rect route available, and the mode of transport should be the one that is most economical and consistent with the purposes of the trip. The traveler should accept the lowest transportat¡on fares meeting the trip requirements. lndirect routing and stopovers for personal reasons are to be approved in advance and noted on the Travel Expense Report. Related additional costs are not reimbursable.

Lodeine: Payment for lodging is at actual cost for reasonable accommodations, which can vary depending on the location of travel Travelers are required to attach an itemized lodging receipt for approved occupancy to the invoice.

Meals: Travelers are eligible to receive a per diem meal allowance wh¡le conducting official Drstrrct business. Receipts are not requ¡red. Travelers are eligible to receive a meal allowance if the business trip requires them to be in travel status during their normal mealtime (i.e., breakfast, lunch or dinner). The per diem meal allowance is considered to be a reimbursement for meal expenses. Per diem amounts will be reduced in instances where a traveler does not incur expenses for meals because they are furnished or included in the registration fee for a meeting or conference. Per diem meal allowances are not reduced for meals served on airlines or for continental breakfast served at the hotel or seminar/conference. IRS Publication, 1542, Per D¡em Rotet will provide per diem rates for travel within the continental United States, Finance & Administrative Services will maintain a table of the per diem rates, including tax and tip, which shall establish the maximum reimbursement for single meals. The D,sfrictAuditor may approve an exception to the per diem meal allowance and allow for the reimbursement of actual meal expenses under special circumstances. ln such cases, receipts w¡ll be required for reimbursement. Reimbursement for t¡ps and gratuit¡es will be limited to 18% of the meal cost. Contact F¡nance & Administrative Services for per diem rates for foreign travel.

Communication Expenses: The cost of business telephone calls is reimbursable, including brief calls (up to 5 minutes)to a traveler's home relating to safe arrival, change in travel plans and airport transportation. Charges for fax machine and lnternet are eligible for reimbursement if Disfrict business requires such communication.

Other Expenses: Actual costs are reimbursed for necessary baggage handling and other ¡ncidental business expenses, including reasonable and customary tips for valet service and housekeeping.

19. NOTICES

Any not¡ce required to be given under this Agreement shall be given by depositing in the U.S. Ma¡l with registered postage prepaid to the address of the Distt¡ct ot Controctor, respectively, as set forth herein and shall be effective on the date of mailing as shown by the postmark or shall be given In writ¡ng served on an officer of the Contractot ot on the Contracts and Purchasing Manager of the Drstrict.

20. TITLE

TheDrstrrctshallretaintitletoallDrstn'ctfurnishedproperty. AllDrstrictpropertyandallpropertyacquiredbytheContractorcI itssubcontractorsare subjecttotheprovisionsofthisclause. lfthiscontractcontainsaprovisiondirectingtheControctororitssubcontractortopurchasematerialorequipment for which the District will reimburse the Contractor ü its subcontractors as a direct item of cost under this contract -

(i) Title to material and equipment purchased from a vendor shall pass to and vest ¡n the Drstícf upon random delivery of such material and equipment, and

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coNTRACT #18-16-02

(ii) Tiile to all other material and equipment shall pass to and vest in the D,strict upon

(a) lssuance of the material and equipment for use in contract performance; or

(b) Commencement of proceedings of the material and equipment or its use in contract performance; or

(c) Reimbursement of the cost of the material and equipment by the District, whichever occurs first.

EENDE

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coNTRACT #18-16-02

Appendix A Statement of Work COMPLIANCE WITH STATUTES: ls the bank a member of

1) Federal or State of Washington chartered bank with branch banking facilities located within the District's service territory in Benton County Washington. YesX ruoI Bank of America, N.A. (BANA) is a wholly owned indirect subsidiary of Bank of America Corporation, a federally chartered national banking association under the authority of The Office of the Comptroller of the Currency and authorized to do business in all states within the United States. As a national bank, Bank of America, N.A. is not subject to licensing and supervision by state regulators due to preemption under Federal law.

Please provide the address of the branch banking facilities located with the District's service territory:

Financial Centers in Kennewicþ WA

Financial Center Name Address Kennewick 3420 W Kennewick Ave Columbia Mall 7600 W Quinault Ave Richland 1007 Knight Street

2l Member of the Federal Reserve System, and be insured by the Federal Deposit lnsurance

Corffiation. vF No Bank of Amçr;ica is a direct member of the Federal Reserve System and has access to all of its systems and is insured by the Federal Deposit lnsurance Corporation (FDIC). As a result, the first $250,000 in District balances are covered by FDIC insurance. As explained below, all other funds are collateralized under Washington PDPC rules.

3l Qualified public pursuant to the Washington Public Deposit Protection Act (RGW 39.58) with a capital structure sufficient to support the District's deposits. vesX ¡¡oI Bank of America is a qualified public depository approved by the Washington Public Deposit Protection Commission (PDPC) and complies with all federal and state statues. Bank of America has the largest Proportional Net Worth of any PDPC depository. The most current I

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Washington State proportional net worth as reported by the PDPC is listed below

03.31.18 WA 03.31.2018 WA 04.30.18 WA 05.31.18 WA Depository lnstitution Proportional Net Public Deposits Public Deposits Public Deposits Worth

Bank of America, N.A. 5591,781,408 5664,956,420 5553,488,031 54,762,7s2,777

CONTAGT PERSON: 1) Local senior level management person who will be responsible for overseeing the District's entire relationship, who would serve as the District's primary contact and who would be able to make decisions regarding operational aspects of this Agreement. Name Email Phone Number Alex Johnston [email protected] 206.358.8938

2l List of contact information of personnel within the bank who are qualified to provide information and assistance in the following areas: Name Phone Number

Alex Johnston 206.358.8938 . Generallnformation: Brian Riley 3L2.992.8164 o Safekeeping and Securities Clearance: Craig Scott 503.795.6454 r Posting and Deposit Discrepancies: Lita Evans 702.824.90s2 . Stop Payments: Alex Johnston 206.3s8.8938 ¡ Balance Adjustments: Alex Johnston 206.358.89 ¡ CollateralAdequacy: Lita Evans 702.824s052 r lnternal Transfers: Lita Evans 702.824.90 o Wire Transferc: Lita Evans 702.824.9052 o Online Service: Chris Schuer 3L2.234.3436 o Certificates of Deposit rate quotes:

ON.LINE SERVICES:

¡ Have the ability to provide web-based banking XT I

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CoNTRACT #L8-t6-02

serv¡ces Yes No

For ultimate visibility and control of your banking services, the District will have access to award winning, online client access portal, CashPro Online. From initiating payment sactions and funding disbursements, to managing receivables and investing excess funds, web-based banking platform delivers simple access and stringent control over virtually all financial services your business uses wherever and whenever you choose. -

District designates authorized users to connect to virtually all of your services such as ACH, wire transfer, account transfers, check management and information reporting.

( B @ lnformation Payments Receivables Notifications Reporting Ë + CashPro Online Escrow* Ð ¡r ^^ rer ServiceCenter* lnvest* Trade Credit*

CashPro Payments for AGH, wire and check The District can continue to use the CashPro Payments application to initiate a variety of payments:

Wire payments: lnitiate high value domestic and international wire payments, such as payments made to the State. CashPro Payments offers free standing or repetitive wire templates. ACH: Originate ACH credit for payroll and vendor payments and direct debit customer accounts for billing charges. For direct debit, all you will need is an authorization form from the customer. 10

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CoNTRACT #L8-t6-02

CashPro Payments allows you to initiate as many ACH transactions and provides clear, easy-to-follow screens that guide you through each step. User-friendly processes reduce or eliminate the cost of using outside vendors to perform your ACH transactions. Simply key in transaction information such as dollar amount, account number and bank lD number or use the CashPro Online data import capability to upload information from your internal application systems to avoid rekeying. Account transfers: Move funds - or make account transfers - between select U.S. accounts at Bank of America in a real-time environment. While U.S. account transfers can be initiated at any time, real-time posting is only available between the hours of I a.m. and 8 p.m. Eastern, Monday through Friday (excluding bank holidays). ln addition, users can future date-transfers up to 365 calendar days.

Stop payments: Use the Check Management toolto request stop payment on a check. Check Management is a consolidated tool that encompasses Account Reconciliation, File lmport, Positive Pay, Stop Payments and lnquiry.

GashPro Information Reporting for reporting CashPro lnformation Reporting application is used to view account balances, transaction summaries and transaction detail information.

. Previous-day information from other U.S. banks is available at approximately 3:30 a.m. Pacific, Monday through Friday. View balance and summary reporting to view most status (balance) and summary BAI code items, including closing ledger balance, opening ledger balance, collected/closing available balance, opening available balance, as well as transaction summary and float totals, if applicable.

. Current-day (intra-day| reporting from U.S. banks, the first incoming data exchange feed is received at approximately 6:30 a.m. Pacific, Monday through Friday. Access reports to include balance and summaries only, transactions only or a combination of balance, summary and detail transaction information. Users can specify the type of data to be reported by choosing from more than 20 pre- defined, standard report templates or by customizing report content using various features. Custom report features include criteria based on accounts, dates, currency, transaction types, BAI codes, 11

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CoNTRACT #18-16-02

transaction amounts, specific text information or reference information

Statement and report download and/or export

Custom and predefined reports or statements be downloaded online as a PDF file for print or exported as an Excel file for upload to the District's accounting system.

Historical information We exceed your requirement of six months history. As a standard component of information reporting, CashPro Online offers 24 months of history for previous-day reporting and 10 calendar days of history for current-day reporting. The retention periods across other CashPro Online modules vary depending on the application data.

Transaction search From lnformation Reporting, the District can perform a transaction search on ACH, wire, returned items zero balance transaction, transfers and deposits.

. Provide positive pay and Payee Positive Pay YeX NJI To combat check fraud, we offer a full suite of Positive Pay services that includes Traditional, Teller and Payee Positive Pay services.

Traditional Positive Pay compares the check serial number and dollar amount of the paid ¡tem to the issue record on file and reports all except¡ons to the

Teller Positive Pay updates the District's issue file to our teller system.

Payee Positive Pay Examines payee name and compares the issue

Allow multiple users with different security level access to account data XT 12

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CoNTRACT #18-16-02

Yes No District users can view only the accounts and access the functions for which they are authorized.

CashPro Online supports a delegated administration model whereby the bank initially establishes administrators selected by the District. Your administrators then have the ability to add, delete and entitle users to services and accounts, as appropriate. As a result, there is no need to contact the bank to establish new users.

A District administrator plus a mandatory secondary approver maintain user security. The administrator defines the functions, accounts and limits to which users have rights.

The enhanced dual-administration feature incorporates best operating practices by requiring a second administrator to approve changes to user authorization. The dual approval feature achieves segregation of duty and helps prevent a single person from initiating and approving a payment.

CashPro Online allows for dynamic limits and segregation of those limits between free-form and repetitive transactions at the account and user level.

a Have the ability to provide calendar month and yearly

staElnents yE No Demand Deposit Account statements are available online the next business day following the end of the statement cycle. Paper statements are mailed within seven days of the cycle cutoff date. We also offer PDF eStatements and CSV files.

The District can create yearly statements using the lnformation Reporting and Statements module of CashPro Online.

o Heve the ability to provide daily bank statements for reconciliation with fund balances and collected and ledger balances vesX rvol The District can access current- and previous-day information using our CashPro channels online, mobile device or through a host-to-host connection. Reports are available on -demand or through automated delivery with a variety of custom options.

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4w.a.D CoNTRACT #18-16-02 GashPro lnformation Reporting for reporting CashPro lnformation Reporting application is used to view account balances, transaction summaries and transaction detail information.

. Previous-day information from other U.S. banks is available at approximately 3:30 a.m. Pacific, Monday through Friday. View balance and summary reporting to view most status (balance) and summary BAI code items, including closing ledger balance, opening ledger balance, collected/closing available balance, opening available balance, as well as transaction summary and float totals, if applicable. . Current-day (intra-day) reporting from U.S. banks, the first incoming data exchange feed is received at approximately 5:30 a.m. Pacific, Monday through Friday. Access reports to include balance and summaries only, transactions only or a combination of balance, summary and detail transaction information. Users can specify the type of data to be reported by choosing from more than 20 pre-defined, standard report templates or by customizing report content using various features. Custom report features include criteria based on accounts, dates, currency, transaction types, BAI codes, transaction amounts, specific text information or reference information.

Statement and report download and/or export Custom and predefined reports or statements be downloaded online as a PDF file for print or exported as an Excel file for upload to the District's accounting system.

. Have the ability to stop payment ve8 Nf, Our online service allows the District to place, manage and cancel stop payment transactions. Users can enter up to 25 entries at one time, and create or cancel a stop in the same session. Stop payments can be placed for six, 12,18,24 and 36 month durations. When initiating a stop, the user is advised when a stop payment exists or when the check was paid within the last 365 days.

. Provide Check 21 deposit Yes E No ""rffit"" lmage Cash Letter (lCL) service provides the District with a more streamlined and efficient way to electronically deposit U.S. denominated checks drawn on U.S. banks. The District will 14

65 BErr0il

CoNTRACT #18-16-02 continue to use your remittance processing high-speed capture equipment to capture MICR line and front and back images of checks, then create and electronically send us an image cash letter file in lieu of delivering a traditional paper cash letter or deposit. lmage Cash Letter belongs to a suite of payment solutions that enable check conversion and allows the District to truncate original checks for deposit thus making your deposit more efficient. lmage cash letter files can be sent multiple times per day. The District may submit files that contain multiple cash letters. A file can contain a maximum of 500 cash letters. Each cash letter is considered a separate deposit and is posted to the account you specify during setup The cutoff for same-day processing is 7 p m Pacific.

Additional service recommendation: GashPro Remote Deposit -rt Additionally, we offer CashPro Remote Deposit as an efficient and easy-to-use to electronically deposit check receivables. This low-cost process uses a bank-provided scanner in conjunction with your current treasury portal, CashPro Online, capitalizing on the way you currently manage your deposit accounts you have with us today.

CashPro Remote Deposit, is a web-based application that allows the District to make electronic deposits from your desktops using bank approved scanners. Using Remote Deposit, your authorized users simply scan and capture images and MICR data of U.S dollar items drawn on U.S. banks, then transmits that data to Bank of America. The cutoff for same-day processing is 9 p.m. Pacific.

Additional service recommendation : CashPro llllobile Gheck Deposit -It To eliminate the need for scanners, the District may consider our CashPro Mobile Check Deposit service. CashPro Mobile Check Deposit allows you to deposit checks ínto a remote deposit account using an iOS or Android device. Extended deadline of 10 p.m. for same day credit applies to CashPro Mobile Check Deposit.

a Provide online wire transfers services (repetitive and non-repetitive) YeX Nf, Bank.of America's Wire Transfer services enables the District to make global high-value, time sensitive payments online through CashPro Payments. Wire Transfer service offers same-day

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4w.a.D coNTRACT #18-16-02 funds transfer capabilities with immediate payment finality and is designed to let you easily transfer funds that are cleared through the Federal Reserve System (Fedwire) or the Clearing House lnterbank Payment System (CHIPS).

The District can establish repetitive templates online in CashPro Payments, including user- defined template code numbers and names. New repetitive codes may be easily added and managed within the application. Since templates are created in real-time, they are available immediately.

CashPro Payments has time-saving features, such as the ability to enter a transaction and "save as" template, or the ability to create a template via the action dropdown within a transaction report. This eliminates the need to rekey data into a template. Flexible entitlement controls determine which users are authorized to create, modify and approve templates.

Later this year we'll roll out Real Time payments. This entirely new payment method combines the low cost of an electronic payment, such as a same-day ACH and delivers funds almost instantaneously. Real Time Payments will initially have a limit of $25,000, so they won't replace wire transfers at this point. But, over the life of this contract it's likely they will enable very quick settlement for investing and, possibly, bond transactions. We don't yet have pricing for this service, but as more information becomes available we'll offer this services as an amendment to our contract. Please refer to the Real Time Payments fact sheet in the Appendices.

o Provide direct deposit Yes f] No ""rMb"" With the Bank of America Direct Deposit service, the District will continue to make payments directly to payees' checking or savings account, improving efficiency and reducing your exposure to check fraud. This service can be used for direct disbursement of payroll into employee accounts and other consumer type payments such as expense reimbursements, pension payments and dividend payments.

We provide further information on our Direct Deposit Service below

¡ Provide ACH services vesX rvol

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CoNTRACT #18-16-02

Bank of America has offered ACH services for more than 40 years. We are available to help you offer new ACH services and increase existing participation with options such as Same Day ACH. Our depth of ACH network knowledge has made us one of the leading ACH banks in the country as ranked by NACHA. Our extensive ACH experience allows us to provide flexibility and -support to meet your ACH needs.

Bank of America supports a number of ACH input options suited to your needs and preferences. The District can continue to initiate ACH transactions via direct file transmission

a Provide ACH services to process files to debit customer accounts veX Nt Our Consumer Debit Service will allow the District to collect one time or recurring payments from consumers, such as utilities, membership fees, loan payments, insurance premiums, online purchases, etc. Prior to originating a debit, the District must comply the NACHA Rules, including Rules that define how a company must gain authorization before debiting an account. ACH debits can be posted to consumer accounts at most financial institutions in the U,S. and Canada.

a Provide electronic warrant redemption veX Nil The bank will provide the District with electronic warrant redemption with online access to reports and images through previous day reporting via CashPro Online. Currently the District is using Positive Pay with no account reconcilement. We can offer the District with a full suite of Account Reconcilement options in addition to Positive Pay.

Additional service recommendation: Full Account Reconciliation -tt Our full account reconciliation plan balances items posted to your account and delivers paid and outstanding check data in a timely manner, thus saving the District time. As we process checks, our reconcilement system automatically captures, audits and stores the serial number, date and amount of each transaction.

How Full Account Reconciliation works The District electronically provides information to Bank of America on the individual checks

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coNTRACT #18-16-02 being issued prior to issuance. This information includes serial number, date issued and dollar amount. You can also include additional data for payee name and/or other discretionary data on each issue record.

As checks are presented and posted to your Demand Deposit Account, we match the paid items to the issued items on file and produce reports at the end of your accounting cycle showing the results of the match. ln addition to the standard reconciliation reports, a file can be transmitted that includes paid check and/or outstanding check information.

Additional service recommendation: Partial Account Reconcilement -rt lf the District prefers to reconcile your accounts using an in-house system, our partial account reconcilement service can make your operations faster and more efficient, while giving you better control. We provide you with paid check information that you can quickly apply to your reconcilement system with no-re-keying.

Additionalseruice recommendation: Daily Paid Check File -rt With both our Full and Partial account reconciliation plans and in addition to normal cycle-end reconciliation, the District can receive an optional file that provides a daily file of "clean" paid check information. Output transmission of paid item file is available in standard or Electronic Data lnterchange (EDl) formats.

The daily paid items file enables you to receive fully matched and reconciled paid check data daily for further posting to an internal accounting system that validates entries before posting and expedites your reconciliation cycle.

a Provide electronic funds transfer services within the District's accounts veX Nt Ihç Distfict can continue to initiate and monitor internal and wire transfers though CashPro Online. Our flexible online system allows you to quickly and easily initiate internal and domestic wire transfers via the internet.

Once a user is entitled to the CashPro Payments application, a wide variety of payment types can be initiated. Administrators define the authority for entry and approval based on user, account and payment type for freeform and repetitive transactions. Simple, complex and

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ä.ll.o coNTRACT #18-16-02 panel approval configurations are available. Once the criteria are met for entry and approval of a payment transaction, the payment is released for processing. As a security feature, CashPro Payments requires a minimum of one approval for all payment types. A SafePass@ token response is also required on approval.

o Provide web-based payment options, especially in regards to payment services veX Nil With CashPro Payments, the District can initiate a range of payment types through a streamilneo process that reduces risk, while improving productivity. The following payment options are available with CashPro Online:

ACH - Originate unlimited transactions in a single session. User-friendly screens provide instructions on how to enter information, or data can be imported to help eliminate manual keying. Wire transfer - lnitiate a broad range of payment types to manage your business. As payment information is entered, the screen is intuitively modified to accommodate each type of transfer. lnitiate wire transfers in U.S. dollars or other currencies.

r lmage access for all warrants, checks and check deposits veX Nt The.Distriçt will continue to view, receive and archive images through our lmage Access services. lmage delivery will continue through CashPro Online.

The District can retrieve images of paid items, deposited items, debits/credits and returned items as early as they are presented or captured by the bank, with images available on a next-business-day basis, by 8 a.m. local time.

Online images are available up to the established retention period: 90 days, 180 days, one year, two years, seven years and 10 years for paid items, debits (notices of adjustment) and credits (deposit slips, notices of adjustment). Returned item retention is available up to seven years. Deposited item retention is available up to seven years.

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o Provide monthly analys¡s reports ve¡ tt¡ The bank can provide monthly account analysis statements by individual account and at a group level. Online statements are available the sixth business day of the month through CashPro Online. Paper statements are mailed no later than the 1Oth business day of the month following the analysis period. Analysis statement (ASC X12822) transmissions are available one day after the paper statements are mailed.

o Have the ability to provide mobile banking veX Ndl VYjth CashPro Mobile, the District can access the capabilities of CashPro Online outside normal office workstations. CashPro Mobile provides the following functionalities:

Administrative functions As a primary administrator, you can unlock, deactivate and reset users from your mobile device. This may reduce the need to log in to CashPro Online from a computer when it is not convenient and decrease the turnaround time for user administration requests.

I lnformation reporting View your current-day, previous-day and multibank summary account balances by bank lD, account or currency updated in sync with CashPro Online. -

Payment initiation and approval Review and approve pending payments easily, with a choice of single or multiple payment approval capabilities to match your workflow. lnitiate payments from templates and transfer funds between your accounts Decision Check Postive Pay exceptions.

ANALYSIS REPORT: The account analysis will contain, at a minimum, the following: ¡ Average Iedger balance

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71 BEffiOT

CoNTRACT #L8-t6-O2 Yes6 to¡

a Average float vesX rvoE a Average collected balance vesX ruoI a Average negative collected balXle yes ruoI

a Average positive collected balance

vesX No

a Reserve requirement

vesX No

a Available balance for earnings .r"Elr", ruof]

a Price levels for each activity vesX ruoI Monthly volumes by type vesX ruoI

a Earnings credit allowance (provide an explanation of how the earnings credit rate is calculated) yesX ruoI We are pleased^to offer the District an ECR of 130 bps in conjunction with a new account, known ds a PFIC Plus. Please refer to page 26 îor a more complete description of this account

ECR Galculation The Earningg Credit Rate (ECR) on your account is used to calculate your Earnings Allowance, which is based on your average investable balance. A client's ECR may vary and, at our discretion, this rate may change at any time. The ECR is applied to the monthly

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ä.u.0 coNTRACT #18-16-02 average positive collected balances net of reserve requirement (investable balance). As of March '1, 2009, the reserve requirement is 0%. This may be changed at any time.

Specifically, the formula for calculating earnings is:

lnvestable Balance x ECR x Davs in Month Number of Days in the Year

The reserve requirement, if applicable, is deducted from the average positive collected balance before the ECR is calculated. The reserve requirement is not currently deducted from average positive collected balances for ECR calculation but a reserve requirement may be reinstated at any time.

a ls a sample account analysis report included in the proposal? YeX Nil A Guide to Reoding Your Anolysis Statement, which includes a sample statement along with definitions and calculations, is in the Appendices.

STATEMENTS: ls a sample bank statement included in the proposal? vesX ruoI Demand deposit account statements are available via CashPro Online the business day following the end of the statement cycle. Paper statements are mailed within seven days of the cycle cutoff date, but could be eliminated to reduce overall fees depending on the District's need. The bank provides DDA statemenUend of period statement every month even if there is no activity for the account.

A sample Bank Statement is in the Appendices

PAYROLL DIRECT DEPOSIT: Does the bank allow the District to utilize AGH or "Direct Deposif' payroll processing, allowing employees to select the bank(s) of their choice. vesX ruoI We will gladly meet the proposed requirement. The Direct Deposit Service allows the District to offer direct deposit of payroll to your employees. A direct deposit of payroll program provides the District and your employees with the following benefits:

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CONTRACT #L8.L6.02

Eliminate check-cashing hassles and fees Access to funds the morning of payday Eliminates lost paychecks and stop payment costs

Transmission options ACH payments may be initiated from CashPro Online or via direct file transmission. Today, the District utilizes our direct file transmission.

Deadlines Our delivery times are extremely flexible and are based on your specific business needs. We will generally process the District's work as soon as it is received. Our ACH operators process on a continuous flow basis, resulting in flexible deadlines. For payroll files, we do recommend transmitting your payroll files two business days prior to the effective date to allow sufficient lead time for the receiving financial institution to make funds available at the opening of business on the settlement date.

ACH cutoff times (alltime are Pacific)

Transfer Type NACHA-formatted CashProo ACH' CashPro Connect Days Prior to Transmissionl Payments3 Settlement

Same-ctay.* Transit ltems 5 6 a.m. 5 a.m. 5 a.m. 0 business days 10:30 a.m. 9:30 a.m. 9:30 a.m On-Us ltems"6 6 p.m.'t 5:30 p.m.8 5 p.m.t 6:30 p.m.'8 6 p.m.t 5 p.m.- e Next-day Transit & 8:30 p.m. 7 p.m.'to 6:30 p.m 1 business day On-Us ltems 8 p.m. Sundays & Transit ltems 7 p.m. 6:30 p.m. 6 p.m L calendar day Holidays 11 U.S. ACH Canada 6 p.m 5:30 p.m 5 p.m.'tu 1 business day Cross- Mexico 6 p.m 5:30 p.m N/A 1 business day Border 12 Panama 6 p.m 5:30 p.m 5 p.m.to 2 business days Europe 6 p.m 5:30 p.m 5 p.m.to 2 business days

I These deadlines apply to all NACHA-formatted transmission entríes you deliver directly to the Texas and Virginia processing sítes. Files are not considered delivered until the ACH site has successfully received the complete file that meets our processing standards. 2 These deadlines apply to entr¡es delivered via the CashPro ACH service. Batches you have entered which have received the necessary approvals are typically extracted on the half hour between 5 a.m. and 8 p.m. Pacific each banking day and once at 6:30 p.m. Pacific on Sundays. 23

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3 These deadlines apply to entries delivered via CashPro Connect Payments and EFD services. Files are not cons¡dered delivered untíl CashPro Connect Payments has successfully received the complete f¡le that meets the CashPro Connect Payments standards. aSame-day deadlines apply to eligible items with a same-day or stale Effective Entry Date. Transit credit entries became eligible September 2?,2O16; transit debit entries become available September t5,2OL7,ltems delivered by the earlier transit item deadline are delivered to the ACH Operator for process¡ng in the first same-day window; items delivered by the second transit item deadline are del¡vered for processing in the second same-day window. s Transit ltems are entries destined for non-Bank of America domestic accounts, 6 On-Us ltems are entr¡es destined for Bank of America domestic accounts, 7 Deadline is for entries delivered to the Virginia processíng site. 8 Deadline is for entries delivered to the Texas processing site, e Next-day deadlines apply to items with an Effective Entry Date one business day in the future and items with a same-day or stale Effective Entry Date, which are ineligible for same-day processing. 10 Deadline is for credit entries originated by clients on the ACH Prefunding Service delivered to the Virginia processíng site. ll Sundays and Holidays deadlines apply to transit items destined for non-Bank of America domestic accounts. On three-day weekends with a Monday holiday, and for holidays occurring during the middle of a week, settlement occurs on the business day following the holiday. 12 U.S. ACH Cross-Border deadlines apply to transit items destined for non-domestic accounts in the countries ¡nd¡cated. When scheduling the delivery of your entries, ensure that you accommodate U.S. holidays and the holidays in the specific countr¡es to which you are sending payments. 13These deadlines apply to single currency U.S. dollar (USD) transit items, delivered via CashPro Connect, destined for non- domestíc accounts denominated in USD in the countries indicated.

DISBURSEMENT SERVICES: Does the Bank agree to furnish standard disbursing services for all accounts to include the payment of all warrants upon presentment? vesX rr¡ol We agree to furnish standard disbursing services to all District accounts, including payment of warrants upon presentment.

Bank of America Merrill Lynch offers full reconciliation services in conjunction with Traditional, Teller and Payee Positive Pay.

Our traditional positive pay service provides electronic access to view all check activity on your accounts. The District electronically provides information to Bank of America Merrill Lynch on the individual checks being issued prior to issuance. This information includes serial number, date issued and dollar amount. You can also include additional data for payee name and/or other discretionary data on each issue record.

As checks are presented and posted to your Demand Deposit Account, we match the paid items to the issued items on file and produce reports at the end of your accounting cycle showing the results of the match. ln addition to the standard reconciliation reports, a file can be transmitted that includes paid check and/or outstanding check information.

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You may send check issue information daily, weekly or on any schedule that precedes the release of checks.

The District receives notification of exception items by 10 a.m. local time the following morning through CashPro Online. You have until 4 p.m. localtime to notify the bank of a Pay or Return decision on each exception item.

We automatically capture check images that are available the next business day, allowing you to make rapid decisions on checks that are potentially fraudulent.

Our Teller positive pay service allows tellers at financial centers nationwide to determine if a check presented for cashing is included on a positive pay client's issue file. Payee positive pay adds another level of security by examining the payee name and comparing it to your issue information to determine if the payee has been altered.

Optional safeguards for check fraud detection include a maximum dollar control feature to display checks more than a client-designated amount and a stale-dating feature to identify checks presented for payment that have been outstanding over a set time period.

The District can enjoy online access to a consolidated module with time-saving features and user-friendly pages. CashPro Check Management encompasses Account Reconciliation, which includes File lmport, Positive Pay, Stop Payments and lnquiry.

ACH TRANSACTIONS: Does the Bank agree to the acceptance of AGH credits and debits. Also, provide the District with the ability to process AGH files to debit customer bank accounts? vesX ruoI As a direct member of NACHA, Bank of America is an Ordering Depository Financial lnstitution (ODFI) and Receiving Depository Financial lnstitution (RDFI) that is capable of sending and receiving ACH transactions.

We confirm the District will continue to have the ability to process ACH debit transactions to your customer's bank accounts. W: ¡ Does the Bank provide the ability to send online wire transfers on a repetitive or non-repetitive basis, and also to provide the ability to receive wire transfers?

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ä.4.0 coNTRACT #18-16-02 Y"tX *oI Bank of America's Wire Transfer services enable the District to make global high-value, time sensitive payments online through CashPro Payments. Since you initiate about 18 wire transfers a month, the online method is ideal for the District.

Wire Transfer service offers same-day funds transfer capabilities with immediate payment finality and is designed to let you easily transfer funds that are cleared through the Federal Reserve System (Fedwire) or the Clearing House lnterbank Payment System (CHIPS). Additionally, cross border payments are advised via SWIFT.

Wire payment types (domestic, international and foreign exchange) may include: repetitive and non- repetitive, drawdowns, standing order, book, multibank transfers and IRS tax payments.

lncoming wire transfers The District is notified of incoming wires by following methods

a CashPro Online (internet) - Current- and previous-day wire transfer information reporting is available in report or BAI file format. t CashPro Notifications - Alerts are delivered by voice, text, email or fax and provide the status of wire transfer activity. You receive: Notice of all incoming and outgoing wires Notification to approvers of pending transactions Email notice to recipient when wires are initiated End-of-day summary of all wire activity

r Does the Bank provide the ability to restrict outgoing wire transfers (debits) to only those authorized, authorization must be given by two online users before the outgoing wire can be released? . vesX ruoI Since wire payments are high value, we employ the following security methods for wires that you initiate and release online.

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ä.u.0 CoNTRACT #18-16-02

Securitymethod Features/Benefits

One Time Password Token I System requires mandatory use of a token device for the signing of payment (CashPro Payments) transactions online. Advanced algorithms generate unique six-digit, one-time passwords to help authenticate each online transaction. A unique one-time password synchronizes with the bank's backend system to prove that the person signing the transaction physically possesses the token. Enjoy robust protection against fraud and identity theft, as the code expires as soon as it is used. Once access is obtained, information passed to the user is encrypted. (Once the message leaves the bank, it is unreadable outside of the CashPro Online application.) When using CashPro Online, you must assign primary administrators (dual administration is required), to create users, change passwords and entitle users to application-specific administration for any application to which you subscribe. (Please note: Primary administrator entitlement is only required for those administrators who are responsible for setting up administrators of new CashPro Online services).

Application-specific Assign dual application-specific administrators for the CashPro Payments Administration application.

Transaction Level Controls Create approval limits, controlled at the user and account level, to restrict the users who can approve extraordinary transactions: - Entitle each user to a specific transaction limit, approval limit and daily cumulative limit. - Establish dynamic approval ranges that require additional approvals for transactions above specific amount thresholds. Leverage up to nine additional approvers per transaction. - Employ the panel approval function that defines groups of users to approve transactions with explicit amount ranges. Use easy-to-use input and template screens for non-repetitive and repetitive wire transactions. For the latter, you can create a repetitive template, which helps streamline the process.

W: a W¡¡l the Bank guarantee immediate cred¡t on all wire transfers, ACH transactions and government checks upon receipt and all other checks based on the Bank's Availability Schedule? All deposits rece¡ved before the Bank's established deadline will be credited daily.

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78 BEilTOil -F-A-ll coNTRACT #18-16-02 Yes¡ tol

Cut-off (Wire Transfer) We can accommodate all wire requirements and limits for the District and will continue to provide automated wire transfer services through CashPro Online. Account transfers within CashPro Payments allow you to move funds between select U.S. accounts at Bank of America Merrill Lynch in a real-time environment at a discounted per-item charge. While U.S. account transfers can be initiated at any time, real- time posting is only available between the hours of 5 a.m. and 5 p.m. Pacific, Monday through Friday (excluding bank holidays). ln addition, users can future-date transfers up to 365 calendar days.

ACH availability ACH transactions received from other banks are available at the opening of the business day on their etfective date. Those received from Bank of America Merrill Lynch originators, and carrying a same-day effective date, are available during the settlement date after origination processing is completed.

Origination settlement is applied at the opening of the business day on the settlement date, unless origination settlement is the same business day. Same business day origination settlement is memo posted to the settlement account shortly after origination processing is completed, and hard posted at the end of the settlement business date.

Funds Availability A Funds Availability Schedule is provided in the Appendices. Many of the availability schedules provide an enhanced offering of immediate availability for On-Us items. On-Us deposited items are assigned zero-day availability, if deposited in the state on which they are drawn. Availability is calculated by item. The following fund types have same-day availability and can be used immediately by each entity when deposited into your account(s):

. Checks drawn on Bank of America (On-Us) . lncoming wire transfers . ACH credits designated for settlement on the current-day . Cash . Maturing investments made through Bank of America

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Federal Reserve schedule For the bank's clearing services, we follow the Federal Reserve schedule per Regulation CC guidelines. The availability of funds from other sources/items including checks drawn on other banks is based on our check availability schedule, which is updated by the bank periodically to reflect changes in our check collection methods. Generally, checks drawn on local banks are collected in one business day and out-of-state checks are collected in two business days. a ls a copy of the Bank's Availability Schedule Included in the proposal? Yes X Nfl Please see the Appendices for a Funds Avoilobility Schedule.

POSITIVE PAY: Will the Bank provide a means for the District to upload disbursed check information that will be compared to checks that are presented to the bank for clearing? Any discrepancies shall be cleared by the appropriate authorized person before checks are paid by the bank. Any applicable cost should be quoted in the Proposed Fees, Charges and Rates document. vesX ¡¡oI With more than 200 check payments a month, we recommend our suite of Positive Pay Services: Traditional Positive Pay, Teller Positive Pay and Payee Positive Pay to help combat check fraud.

Traditional Positive Pay compares the check serial number and dollar amount of the paid ¡tem to the issue record on file and reports all exceptions to the District.

Teller Positive Pay updates the D¡str¡ct's issue file to our teller system. With Payee Positive Pay, payee name is also provided for verification.

Payee Positive Pay examlnes payee name and compares the issue information to determine if payee name has been altered.

With Positive Pay, you submit check issue information to the bank on a daily, weekly or monthly basis. As items are presented for payment and posted against your account(s), we compare check MICR information to your file in order to identify the following exception items.

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ä.ll.o CoNTRACT #18-16-02

Exception items Description

Paid No lssue Checks not on the issue file Duplicate Paid Checks with duplicate serial numbers lssue Amount Differs Checks for which the paid amount differs from the issue file Check Cancelled Checks for which the outstanding issues have been cancelled Zero Serial Number Checks posted to the account without a serial number Long Serial Number Checks for which the serial number length does not meet the specified maximum (optional) Short Serial Number Checks for which the serial number length does not meet the specified minimum (optional) Max Dollar Exceeded Checks exceeding a maximum dollar amount (optional) Stale Date Checks that are stale dated (optional) Payee Mismatch Checks for which the payee name on the printed check do not match the payee name with the issue information received (if subscribed to Payee Positive Pay) Payee Not Found Checks for which the payee name on the printed check was not included with the issue information received (if subscribed to Payee Positive Pay)

The District will receive notification of exception items by 10 a.m. the following morning through CashPro Online. You have until 4 p.m. to notify the bank of a Pay or Return decision on each exception item.

The following actions can be taken

¡ Pay - When the check is valid and the bank should pay this item. . Pay and Update lssue - When the check should be paid and the issue on file requires an update. This decision type is only available for the exception reason lssue Amount Differs. lf the account subscribes to Payee Positive Pay, the except¡on reasons of Payee Mismatch and Payee Not Found also apply. r Return - Fraud - When the check is fraudulent and should not be paid. ¡ Return - Refer to Maker - When the check should not be paid for any reason other than fraud. An online confirmation report is available the following business day. lt details the action taken on each exception item by the District and the bank.

ln addition to providing check issue information (serial number and amount) to our banking center teller system, we additionally pass payee name information (where provided) for those accounts flagged as Payee Positive Pay and Teller Positive Pay. This enhancement better equips our bank tellers to detect potentially fraudulent checks before

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they are cashed

Pricing We provide the pricing for our Positive Pay services in Appendix A, Banking Services Pricing.

SAFEKEEPING: Will the bank provides Safekeeping Services?

vesl rr¡oX While Bank of America provides safekeeping services, we aren't proposing to offer this service to the District as a part of this proposal. ln our experience, the State of Washington contract for this service offers the best value for entities such as the District. We have, however, provided the name for our municipal safekeeping contact and would be happy to answer any questions the District has related to this service.

INTEREST RATES: Please provide floating interest rate bids and a fixed interest rate bids on accounts and Certificates of Deposit.

We are pleased to offer the District a 1.30o/o Earning Credit Rate on your Analyzed Demand Deposit Accounts and a 1.00o/o interest rate on the Public Fund lnterest Checking Account.

Rates on Certificate of Deposits vary and are dependent upon the dollar amount and term. Upon award of this contract and further information required, we would be happy to discuss Certificate of Deposit rates with the District.

SAFE CONNECT DEPOSIT:

¡ ls the Bank willing to work with the District's third party vendor and allow for daily safe connect deposits and currency exchange through a safe connect safe. vesX ruoI Bank of America's SafeConnect solution enables the District to receive accelerated credit for cash deposited into a bill-validating safe, which is provided by an armored carrier. We recommend the District continue the contract with your armored carrier for rental of a deposit-only electronic safe, hardware service, maintenance and the armored carrier service. Bank of America Merrill Lynch will establish connectivity and provide next-day credit for currency placed in the safe.

Deadlines Bank of America Merrill Lynch hard-posts credit for deposited cash if received before the 31

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daily cutoff time of I pm Pacific. Transactions received after this cutoff time, will hard- post the next business day. Same day credit is contingent upon the carrier sweep and the file transmission to the bank.

Change orders The District may place orders for currency and coin 24 hours a day by using the automated telephone entry systems. Using a unique client identification number and password provided by the bank, you can order U.S. denominated coin and currency from our Seattle cash vault via a touch-tone phone in a secure environment. The change order delivery dates can be scheduled for delivery on the day your armored carrier comes to service the safe.

a Willthe Bank allow remote check deposits? vesX ruoE Currently the District utilize lmage Cash Letter for your check deposits. ln addition to lmage Cash Letter, we offer CashPro Remote Deposit service.

Bank of America Merrill Lynch's web-based CashPro Remote Deposit application can be used to make electronic deposits from your desktop using bank provided scanners. Authorized users simply scan and capture images and MICR data of checks received and transmit that data to Bank of America Merrill Lynch using an encrypted internet connection.

How this service works for the District To streamline your deposit procedures, the District can process between 100 and 100,000 checks per month, per location, using CashPro Remote Deposit. Users may access funds and reconcile accounts faster by making electronic deposits from their desktops using bank-provided scanners. The service automatically populates remittance and check detail to save time and reduce keying errors. And, because it is accessed via CashPro Online, our web-based platform, the District can protect check information through robust security features and strict user authorizations.

Below is an overview of Bank of America's CashPro Remote Deposit process. This example is for a check-only deposit; remittance deposits will vary based on the District's setup.

Steps for a check only deposit Compile all items to be deposited and compute the expected total of the deposit

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Log into our global internet-based client access channel and select Remote Deposit. Click Create New Deposit and select the account to which the deposit will be made. Select an account group; this function replaces the need for paper deposit tickets that have been encoded with a static location number. Remote Deposit feeds the account group number to downstream applications. Select the deposit type and enter the depos¡t total. Align the items for deposit within the scanner tray, placing as many items as fit comfortably in the tray. Up to 500 items may be deposited at one time with no limit to the number of deposits that can be made in a day. Click Start Capture. As images are scanned, they populate on the screen. Use custom fields to manually record information about the items or use associated rules to automatically populate static information, like unit, account or customer number. Confirm the declared amount is in balance with the scanned items and transmit the deposit. As you transmit the images and data of each item, the status of each deposit is updated in real time. Use the Reports tab to run a variety of reports, customize reports and export data to your account reconcilement platform. Perform research on ¡tems that need additional reconcilement, search by multiple criteria including amount, date and custom field data.

We recommend that you store the physical items in a protected environment lor 14 business days and then destroy them.

Scanners and deposit deadlines Scanners are provided free of char:ge for each qualified District location. Deadlines are ass¡gned based on user location, so for the District, the deposit deadline would be 9 p.m Pacific.

Gash OVERDRAFTS:

¡ ls the bank willing to determining cash overdrafts, by adding the daily cash balance in all District accounts together and if a negative balance occurs, the District's account is considered to be over- drafted An applicable insufficient funds fee can then be charged. vesX ruoI A charge for collected overdrafts is calculated on the monthly negative collected balance on each account that may be overdrawn. We do not aggregate balances when calculating for overdrafts. The calculation is:

Avg. døily negotive collected balance x Avg. negotive collected bolonce 33

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ratex Number of dovs in t 360

Bank charges on negative collected balance can be offset by earning allowance for the current month calculated on the investable balance. The bank standard for Overdraft lnterest Charge on negative collected balance is US Prime + sYo. The rates are variable and subject to change without notice.

. ls the bank will allow for daylight verdraft? Yes X Nil Bank of America may establish a Daylight Overdraft Limit (DOL) for clients in good standing who regularly send wires pending same-day receipt of funds from other sources. The DOL is available at the sole discretion of Bank of America, N.A., and is subject to bank approval and is continually reviewed by the bank. The DOL would be subject to such other terms and conditions as may be required by Bank of America, N.A. There is currently no service charge for this courtesy service, so long as the clients ledger balance in the applicable account exceeds zero at the end of the day after all processing is completed. However, this may change based on future regulatory requirements or changes in the pricing policies of Bank of America, N.A. (Note: lf the ledger balance is positive, but the collected balance is negative, the negative balance would be subject to an uncollected funds interest charge; however, this is unrelated to the DOL.)

The bank will determine the amount of the daylight overdraft facility required upon award of the contract and discussions with the District.

COMPUTERIZED OUTPUT: Does the Bank provide the capability for the Districtto download paid items that will be utilized in the bank account reconciliation process? vesX ruoE Currently the District does not receive a daily paid items file via transmission. We provide the District with the ability to download paid items via CashPro Online lnformation Reporting.

With our Full or Partial Positive Pay Reconcilement service, we are able to provide the District with an optional daily paid item file. This service provides a daily file of "clean" paid check information, in addition to normal cycle-end reconciliation. Output transmission of paid item files is available in ARP standard or EDI formats.

The daily paid items file enables the District to receive fully matched and reconciled paid

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coNTRACT #18-16-02 check data daily for further posting to an internal accounting system, thus validating entries before posting and expediting your reoonciliation cycle. The daily paid items transmission includes paid items and may optionally include cancels, stops, miscellaneous credits and miscellaneous debits

PAYMENT FOR SERVICES: Please mark your one of the following or any other viable proposed payment option for services and supplies provided.

f settlement for service charges will occur annually.

lf the earnings credit exceeds the total service charges for the year, there is no service charge payment due.

lf the earnings credit is less than the total service charges for the year period, an invoice for the amount of the net deficiency will be presented to the District prior to January 15 the year following the year the service charges were incurred. We are propos¡ng a monthly analysis settlement with deficiencies paid by direct debit to a District designated account. lt is our intent that the Earnings Credit Rate (ECR) proposed will offset all bank service charges making this proposal cost free to the District.

For the past year,'the ECR provided to the District is 35 basis points. We propose a minimum of 130 basis points ECR and 100 basis points PFIC interest rate to the District for the term of this contract. We will evaluate the rate based on market conditions and adjust as needed upon mutual consultation with the District.

As mentioned above, we expect to be able to offer the District a new type of checking account with the start of this new contract. Our PFIC Plus account combines the benefits of a high rate earnings credit account with an improved interest earning feature.

A PFIC Plus account allocates the exact amount of District balances needed to offset banking fees each month in a calculation that occurs just after moth end. Additional balances earn "hard dollar" interest that is credit to a District account around the Sth business day of the next month.

Assuming the District maintained $4,000,000 of balances in the PFIC Plus account, monthly activity fees were $3,000 for all of the District's accounts and rates of 1.30% for ECR and 1.00% for PFIC, the following calculation shows the benefit of this arrangement:

The first calculation would determine the amount of balances needed to exactly cover the month's banking fees. Using $3,000 in fees and an ECR of 1.30o/o yields a figure of $2.8 million [$3,OOO / 30 X 365 / .013 = $2,807,692]. 35

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. The excess balances of $1.2 million [$4.0 million less the $2.8 million needed to cover that month's activity feelwould earn $986 in interest [$1.2 million X 30 / 365 X .0101 for the month. In addition to the much higher interest rates we're proposing to offer, the PFIC Plus account structure means the District doesn't need to worry about over-compensating the Bank by leaving more funds in the accounts than is needed to pay for services. While the PFIC rate is below the current LGIP, and it would make sense today to leave excess balances to generate PFIC earnings, this arrangement frees District staff from the need to tightly manage balances.

While we're confident the PFIC Plus account will be available at the start of the contract as it is already used by bank clients in the eastern U.S., we would do some sort of manual adjustment to achieve the same benefit to the District if the PFIC Plus roll-out is delayed.

CASH MANAGEMENT: Banks are invited to propose additional cash management services that are not specified. We recommend the District consider the following service enhancements. Pricing for these solutions will be provided upon further discussion with the District.

ACH Positive Pay for additional fraud protection Another ACH fraud tool the District can consider is ACH Positive Pay, where only items that meet your authorization criteria are posted to your account. The District will set up authorized trading partners online.

Items received from authorized trading partners are posted to your account and are not presented as positive pay exceptions. Transactions received from partners that are not defined as authorized are presented as Positive Pay exceptions through CashPro Online. Most of your ACH Positive Pay exceptions are presented in the early morning of the transaction settlement day, while others are presented throughout the day. You have until 3 p.m. Pacific to decision exception items and notify us of that decision. Exception transactions not dispositioned by the cutoff time are automatically returned.

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GashPro Connect services CashPro Gonnect Payments The District can originate all of your payments in a single file. You may include cross-currency wires, corporate checks, drafts and dV low-value/ACH payments as part of a combined file. We perform any necessary edits, translate the data into required global formats and fonruard the transactions to the aoorooriate clearino systems.

Receivables When you receive payments, we extract, reformat and integrate {¿Y the payment information, including any accompanying remittance data. This information can then be delivered to you through data transmission in a variety of formats. The District can view the information using our GlobalAdvice@ reporting feature, or in a report format through CashPro Online or encrypted email.

Reporting Global current-day and previous-day transaction data can be delivered to you through traditional host-to-host data transmission in a variety of formats into dv your accounting, treasury workstation or Enterprise Resource Planning (ERP) systems for domestic or international accounts.

Digital Disbursements The Bank of America Digital Disbursement service provides an economical and convenient way to distribute funds faster than by check and without the recipient's personal bank account information. All you need from your U.S. consumer customers is their mobile number or email address - as long as they have an account at a U.S.-based financial institution. Digital Disbursements leverages Zelle'", a network of some of the nation's leading financial institutions. ln 2016, the Zel/e Network processed 170 million transactions and more than $55 billion in volume.

Additionally, more than 86 million consumers experience Zelle through the mobile banking apps of the zelle Network partners, which allows for simple online registration with their bank.

A potential use of this service would be ratepayer refunds, particularly for those that are moving and closing their accounts. Today a check is mailed but often that is not 37

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forwarded to the ratepayer's new address. That means District staff must deal with the escheatment process. When an individual moves they likely keep their cell phone number and their email address, That means a Digital Disbursement payment is much more likely to be received and no escheatment will be required. ln addition, the quick payment increases customer satisfaction.

A rough estimate, based on volume of 200 such payments a month is $1.00 a payment, While that's more expensive than direct banking fees for issuing a check, the total cost to the District, including staff time, could be much less.

METHOD PAYMENT PAYMENT FUiIDING CONFIRMATION INfTIATION NOTIFICATION RECEIVEO A g aE- e v \gF 1 ^v s tl I I iìl¡t' :l+f i:d i¿' i rt¡.:¡:l ts.;; i 'r ¿s I 3uçi¡ress iì,1r.;!itjfìt I ONE-TIME Confirm recipient Send us your rec¡p¡ent's lhe recipient receives Payment is depos¡ted on RE€ISTRATTON I an automated basis into agrees to receive a name, email address or an email or text with I d¡g¡tal d¡sbursement. mob¡le number and the instruct¡ons for úI the recipient's account payment amount, receiving the money, the same or next day.*

\ lJìri e?isIP:É'iJ Ri:. joi;:¡'t

The unretistered recipient links an email address or mobile number to his bank account one t¡me- registration information is maintained at Zelle***

* Please note: This refers to period of time during which payments are generally available. Depending on the receiving bank and time of day, payments can be received same day or next business day. Actual times may vary. Available to U.S. bank account holders only.

**Zelle and Zelle related marks and logos are property of Early Warning Services, LLC.

Settlement options Debit settlements can post on a file, batch or transaction level basis; credit entries can post as a consolidated entry or individual entries.

Multiple processing options The District can employ file, batch or per item dollar amount tolerance limits to monitor your 38

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Digital Disbursement transactions. lf your limits are exceeded, you will be notified by report and the batch/file suspended until your confirmation to move forward is received. Based upon preference, approvals can also be required for all batches within files.

Reporting and output transmission options Online reports, output transmissions and file acknowledgements can streamline the District's reconciliation and may be used to electronically update your in-house systems with status of your Digital Disbursement transactions. You can also see settlement entries for these payments in your current-/previous-day information reporting and notifications.

Expansion plans Our new Global Digital Disbursement service provides an economical and convenient way for the District to distribute funds to your consumer recipients in the U.S. (including Puerto Rico and U.S. Virgin lslands), UK, Germany, France, ltaly, Mexico and the Philippines using the recipient's email address. Payments are made through one of the world's leading global payments platforms, PayPal. The Global Digital Disbursement Service provides the ability to send funds cross-border more cost effectively than an internationalwire, and to make payments in the U.S. faster than mailing a check. This business to consumer solution can help you gain efficiencies and reduce costs for any type of consumer disbursement you need to make overseas.

IMPLEMENTATION SCHEDULE: Provide an implementation schedule time line from the awarding of the agreement to complete migration of banking services. By remaining with Bank of America, the District will not have to go through a complex conversion with a new bank the District can continue to use each of your current core treasury management systems- without disruption or testing. All accounts, routing numbers and processes stay intact. You also avoid a time-consuming and costly conversion process, including the time it takes to train staff and the cost associated with running dual systems. Bank of America will continue to deliver uninterrupted service and support to the District.

As your current provider, there is no need to assemble a transition team your established client team continues to provide responsive, knowledgeable - support

1{J{$r"-{1';{.H 39

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No No need for Service burdensome tra nsition continuity for conversions team the District or testing

A Sømple lmplementøtion Project Plon for new services is in the Appendices.

SUBMITTING FINANCIAL STATEMENTS: ls the Bank's Annual Financial Report (past two (2) years included in the proposal? vesX ruoI ln support of green initiatives, a link to the bank's 2016 and 2017 audited financial statements is provided below.

http://med ia. corporate- ir.neUmedia files/lROL7 1 n 1595/BOAML AR2016.pdf http://med ia.corporate- ir.neUmedia files/IROL/71l71 595/BOAML AR201 7.pdf

REFERENCES: Please provide a list of three (3) references of current Public Fund users that utilize Cash Management Products similar to those requested in the proposal.

Client's Name Name of Representative Address Phone number

Energy Northwest Jeff Windham, Assistant Treasurer

Reference 1) 76 North Power Plant Loop, Richland WA - 509.377.8026 99354

Grant County Public Utility District No 2 Cary West, Sr Accountant Reference 2) 3 C Street SW, Ephrata, WA 98823 509.793.1451

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Public Utility District No L of Snohomish County Jim Herrling, Sr Manager Treasury Reference 3) 2320 California Street, Everett, WA 98201 42s.783.8303

Because we are proposing to provide both treasury and credit services to the District, we are providing references that can speak to both of these elements.

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Appendix B Schedule of Payments

Description Estimated Price per item Monthly Total Rate Fixed Until Monthly Levels

Account Maintenance 5 s 3.00 s 1s.00 L2l3L/202r Banking Center Deposit I4 s 2.50 s 35.00 L2/3L/202L Vault Deposit 15 s 1.00 s 15.00 L2/3L/2O2L Check Deposit - Paper 2 s 0.60 s 1,.20 L2/3r/202L Check Deposit - Encoded ltems (Unencoded) 3 s 0.10 s 0.30 L2/3t/2O2L Check Deposit - ICL or RDSO 39 s 0.L2 s 4.68 12/3L/202L lmage Deposited ltems - rcl 10,060 s 0.03 s 301.80 t2/3L/202L CLS Deposited Foreign Items L s L.25 s L.2s L2/3L/202L Debits Posted - Other 9 s s L2/3L/202L Debits Posted - Electronic 44 $ 5 L2/3t/202L Credits Posted - Electronic 295 s s t2/3L/202t Deposit Correction - Non Cash L s s 12/3L/202r General Checks Paid - Truncated 2L3 s 0.10 s 2L.30 L2/3t/2O2L ZBA Master Account Maintenance T s 15.00 5 15.00 t2/3t/2021 ZBA Subsidiary Account Maintenance 2 5 s L2/3L/202L ZBA Per Transaction L9 s $ L2/3r/202L Returns - Chargeback 8 s 7.OO s s6.00 L2/3r/202L

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Returns - Re-clear t4 s s t2/3L/202L Returns - Re-clear Services 2 s s L2/3r/2021 Stop Pay Automates <= 12 months L s s.00 s s.00 L2/3t/202t Stop Pay Manual <= 12 months 5 s 10.00 s 50.00 L2/3t/202L GCS Stop Payment 7 s 8.00 s s6.00 L2/3L/2021 Deposit Account Statements 25 s s L2/3L/202r Transmission Maintenance L s 100.00 s 100.00 Lzl3L/2021

Cu rrency/Coin Deposit / S100-BKG CTR L,6L2 s 0.3s s 564.20 L2/3t/202r Currency/Coin Deposit / Sroo-vlr L4 5 0.04 s 0.s6 L2/3t/202r Currency/Coin Deposit / s100-NoNST-VLT (supplied) 51 s 0.08 s 4.08 Lzl3t/202t Coin Supplied/Roll - VLT L31 5 0.04 s 5.24 Lzl3t/2021 Deposit Correction - Cash L s s L2ßrl202r Deposit Conditioning - Surcharge - Vault T s s 12/3L/2O2L Safe Connect Currency Deposit - SL00 4,7L3 s 0.03 s L47.39 t2/3L/202L Safe Connect Services 2 s 60.00 s 120.00 L2/3L/202L Fax Notification - Receipt - VLT L5 s 1.50 s 22.sO L2/3L/202L Fax Notification - DCN - VLT 8 s 1.50 s L2.O0 L2/3u202r Change Order - Auto - VLT 9 s s L2/3L/202t

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Change Order - Late - VLT 4 s s L2/3L/2021.

ACH Optional RPTS - Electronic 19 s 5 L2/3L/202r ACH Delete / Reversal t s 7.50 s 7.50 t2/3L/2021 ACH Return ltem 38 s 1.50 s 57.00 L2/3L/202t ACH Transmission Setup / Test L s s L2/3L/202r ACH Output - File L s s L2l3L/202t ACH Monthly Maintenance 4 s s L2/3L1202r ACH Setup 2 s s 72/3L/202r ACH lnput - File IT s 6.00 s 66.00 t2/3L/202L ACH Blocks Authority lnstructions 1-10 9 s s 12ßr/202L ACH Blocks Authority lnstruction LL+ 15 s s L2/3L/202r ACH lnput - Batch 25 s 8.00 5 200.00 L2/3t/202L ACH Blocks Authority Maintenance 3 s 8.00 s 24.00 L2/3r/202L ACH Blocks Authority Add - Change 3 s 3.00 s 9.00 L2/3t/202L ACH Originated Addenda 4LL s 0.01 s 4.L7 L2/3r/2027 Delete/Reverse Batch Files 2 s 40.00 s 80.00 t2/3L/2O2t ACH Notif of Change (Noc) 7 s 1.00 s 7.00 12/3L/202r ACH Standard RPTS - Electronic L9 s s L2/3r/2O2t ACH Consumer On US Credits 28 $ 0.0s s L.40 L2/3t/202t ACH Consumer Off Us Credits 485 s 0.05 s 24.25 L2/3L/202t

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ä.4.0 CoNTRACT #18-L6-O2 ACH Consumer On Us Debits 634 s 0.05 s 31.70 L2/3L/202L ACH Consumer Off Us Debits 5,798 s 0.05 s 289.90 L2/31./202L ACH Corporate On US Credits 24 s 0.05 5 L.20 t2/3L/2O2L ACH Corporate Off Us Credits 87 s 0.0s s 4.35 r2ßL/202r ACH Corporate On Us Debits 78 s 0.05 s 3.90 t2/3L/202L ACH Unauthorized Entry L $ 2.00 s 2.00 t2/3L/202L ACH Credit Received Item 285 s s L2/3L/202r ACH Debit Received Item 75 s s t2/3L/202L

Monthly Maintenance Basic (GP) t s s L2/3L/2O2L Customer Maintenance Temporary Storage 52 s s L2/3L1202t ManualAccount Transfers 2 5 L2.O0 s 24.00 t2/3L/202L Book Credit t s s Lzl3L/2O2L Electric Wire Out - Domestic t7 s s.00 s 8s.00 L2/3t/202L Electric Wire Out - USD lnternational 2 s 10.00 5 20.00 t2/3r/2021. Electric Wire Out - Book DB 3 s 2.50 s 7.50 tzl3Ll202L lncoming Domestic Wire 7 s 4.00 s 28.00 t2/3L/202L Wire Advance - Phone (Advíce) T s 7.50 s 7.50 L2/3L/202L Wire Advance - Mail (Advice) L s 1.50 s 1.50 L2/3L/2O2L

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ARP Void Cancel ltems !4 s s L2/3L/202L Positive Pay Exceptions 5 s s L2/3L/202L ARP Positive Pay Maintenance - No Recon L s 25.00 s 2s.00 L2/3L/202L ARP Positive Pay Return - Other (includes Default) t $ s 12/3L/202r Payee Positive Pay - lssue Match 288 S 0.o2 s 5.76 L2/3L1202L Payee Positive Pay - Maintenance L s s L2/3L1202L ARP Positive Pay lnput File - Transaction T s s L2/31/2O2L ARP Positive Pay lnput File - Transaction 4 s s nßr/202L ARP Positive Pay No Recon lnput ltem 238 s o.o2 s 4.76 t2/3L/202L

ARP Positive Pay Notif 60 s s L2/3L/2021 Wire Payee Advising L s s L2/3L/202t Online Subscription (4 Users) t 5 s0.00 s s0.00 L2/3L/202r Prem lr Maintenance L s s L2/3L1202t Prem PDR Account 3 s 2s.00 s 75.00 L2/31./2O2L Prem PDR ltem Stored 962 s 0.09 s 86.58 L2/31/202L PER CDR Account L 5 25.00 s 25.00 t2/3L/202L Prem CDR ltem 648 s 0.04 s 2s.92 t2/3L/202r Prem Research ltem L4 s s 12/3L/202r Prem Research ltem 5L0 s s L2/3L/202t Per lmage Access I4 s $ L2/3L/202L Transaction History (52.00 for 1-5 ltems, 6+ items Sf .sO¡ L s 2.00 s 2.00 L2/3L/202L

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Remittance / Payment Advice Report Per Account L s 10.00 s 10.00 L2/3t/202L Remittance / Payment Advice lnvoice Received 33L s 0.01 s 3.31 r2ßL/2O2L CPC Rec lnvoice Volume 406 s 0.01_ 5 4.06 L2/3t/202r Maintenance Receiving T s 10.00 s 10.00 L2/31/202r Monthly Maintenance (CPC Rec) L s 2s.00 s 25.00 L2/3L/202r

i r\r i,'\ t i lmage Archive - 90 Days 67 s s t2/3L/202L lmageArchive -7Days 230 s s L2/3L/2O2t lmage Maintenance (Charge to first account only) 4 s L0.00 s 10.00 t2/3L/2021

Check Copy 1 s s rzßLl202L Earnings (Based on current balances) s (1le.48) s (11e.48) L2/3r/202L Credit Applied s s 12/3r/202L Non-Relationship Customer Check Cashed I s 8.00 $ 8.00 L2/31,/202L Other Specific Services s t2/3L/202L Expense Allowance s L2/3L/202r Deposit Bags L2/3t/202L

Bank By Mail Deposit L s 0.72 s 0.r2 L2ßr/202t ACH On US Debits - Same Day L s 0.50 s 0.s0 12/3L/2021 ACH Off Us Credits - Same Day L s 0.50 s 0.s0 L2/3L/202L 47

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ACH On US Credits - Same Day ! s 0.50 s 0.s0 L2/3L/202L ACH Off Us Debits - Same Day T s 0.s0 s 0.50 L2/3r/202r Deposit Bank Assessment Fee (per S1,000 rate subject to change) 3,5L7 s 0.t461 s 513.8337 L2/3L/202L

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Appendix C Special Conditions

Changes to General Terms and Conditions: None

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Appendix D Reimbursement of Expenses

General: As a public entity, good stewardship requires expenses to be allowable, accurate and reasonable. Expenses that do not meet these criteria may be denied for reimbursement. Expenses of a personal nature which do not benefit the District and which might have been incurred whether or not the traveler was on official business are not reimbursable. These include entertainment, alcoholic beverages, clothes laundering or dry cleaning, traffic violations, side trips not related to District business, expenses of family or other persons not authorized to receive reimbursement from the District, trip insurance, and personal purchases.

Receipts for hotel/motel accommodations, air travel, rental car, baggage fees, any other airline fees and airport pa rking sha ll be attached to invoices as documentation of expenditures, regordless of omount. Receipts for meals must be attached to invoices if the per diem method is not used (see Meals). Receipts for taxi, other forms of local travel, parking fees and other incidental expenses need not be attached unless the amount of the claim exceeds SgS.OO per item.

Transportation: Travel should be by the most direct route available, and the mode of transport should be the one that is most economical and consistent with the purposes of the trip. The traveler should accept the lowest transportation fares meeting the trip requirements. ln the case of indirect routing and stopovers for personal reasons, reimbursable expenses are to be limited to the most economical cost of the direct route, while any additional expenses are not reimbursable. Benton PUD reserves the right to make partial reimbursement if transportation costs are excessive or unreasonable.

Lodsins: Payment for lodging is at actual cost for reasonable accommodations at a commercial lodging establishment, which can vary depending on the location of travel. Contractors should stay at the most cost effective location, considering lodging and transportation costs, meeting location, and personal safety. Benton PUD reserves the right to make partial reimbursement if lodging costs are excessive or unreasonable. lf Contractor has questions or concerns, they should seek advance approval.

The lodging expense limitations should be applied to the lodging rate before taxes. Thus, the amount reimbursed or paid for lodging expenses may exceed the established lodging limitation.

Travelers are required to attach an itemized lodging receipt for approved occupancy to the invoice. The following items must be included on the itemized receipt:

Traveler's name or names Name and address of the place of lodging 50

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ä.4.0 coNTRACT #18-16-02 Date(s)occupied Actual rate charged per room

Other charges such as tips, room service, movies, personal phone calls, laundry services, late checkout fees, meals or miscellaneous charges are not included in the lodging expense and are not reimbursable.

Pre-approval from the District will be required if the travelers intends on staying longer than five (5) business days.

Meals: Travelers must choose between per diem reimbursement and actual meal costs documented by receipts. Only one method may be used for this contract. lf actual meal cost reimbursement is chosen, reimbursement may be denied if no receipt is provided. The District reserves the right to limit meal expenses tothemaximumperdiem(M&lE)amountreferredtointhenextparagraph. Actualcostsinexcessofthe maximum per diem (M&lE) amount will be reviewed by the Contract Work Manager and the District's Auditor or Deputy Auditor.

Per Diem (M&lE) lf the per diem method is chosen then travelers are eligible to receive the per diem and incidentalexpense (M&lE) allowance authorized by the IRS while conducting official District business. Receipts are not required. The M&lE allowance will be paid up to a maximum of 75% of the M&lE allowance on days of departure and return. Per diem amounts will be reduced in instances where a traveler does not incur expenses for meals because they are furnished or included in the registration fee for a meeting or conference. Per diem meal allowances are not reduced for límited continental breakfasts served at the hotel or seminar/conference. The per diem M&lE allowance recognized by the IRS is published by the U.S. General Services Administration (www.gsa.govlperdiem) for travel within the continental United States.

lncidental expenses that are included in the per diem M&lE allowance include fees and tips given to porters, baggage carriers, bellhops and housekeeping.

Actual Medl Costs Actual meal costs are reimbursable and must be accompanied by a detailed receipt listing the items purchased. Credít card receipts without details of the expenditures are not acceptable. The purchase of alcoholicbeveragesisnotreimbursable. lfactual mealcostsaresubmittedforreimbursement,theDistrict may deny reimbursement for lack of detailed receipt or unreasonable costs. The District will reimburse tips up to 18%. Tips of 53 or less are acceptable regardless of the cost of the meal.

Communication Expenses: The cost of business telephone calls is reimbursable, including brief calls (up to 5 minutes) to a traveler's home relating to safe arrival, change in travel plans and airport transportation.

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Charges for fax machine and lnternet are eligible for reimbursement if District business requires such communication.

Other Expenses: Actual costs for reasonable and substantiated business costs are reimbursed for other incidental business expenses not specifically included in the per diem M&lE allowance and not specifically addressed elsewhere.

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Appendix E Confidentiality and Non-Disclosure Agreement

This Confidentiality Agreement ("Agreement") is by and between Public Utility District No. 1 of Benton County ("BPUD"), a municipal corporation governed under RCW 54 of the laws of the State of Washington, and Bank of America / Merrill Lynch ("Bank").

For purposes of this Agreement, "Confidential lnformation" shall include BPUD's customer, employee, or vendor information, alltechnical and business information or materialthat has or could have commercial value or other interest in the business or prospective business of BPUD, and all information and material provided by the BPUD which is not an open public record subject to disclosure under the Washington Public Records Act. Confidential lnformation also includes all information of which unauthorized disclosure could be detrimental to the interests of BPUD or its customers, whether or not such information is identified as Confidential lnformation.

For purposes of this Agreement, "Bank" shall include all employees, consultants, advisors and subcontractors of Bank ("its Representatives").

Bank hereby agrees as follows:

1. Bank and its Representatives shall use the Confidential lnformation solely for the purposes directly related to the business set forth in Bank's agreement with BPUD and shall not in any way use the Confidential lnformation to the detriment of BPUD. Nothing in this Agreement shall be construed as granting any rights to Bank, by license or otherwise, to any BPUD's Confidential lnformation.

Bank agrees to obtain and utilize such Confidential lnformation provided by BPUD solely for the purposes described above, and to otherwise hold such information confidential pursuant to the terms of this Agreement.

2. ln the event third parties attempt to obtain the Confidential lnformation by legal process, the Bank agrees that it will not release or disclose any Confidential lnformation until BPUD has notice of the legal process and has been given reasonable opportunity to contest such release of information and/or to assert the confidentiality privilege.

3. Upon demand by BPUD, all information, including written notes, photographs, memoranda, or notes taken by Bank that is Confidential lnformation shall be returned to BPUD.

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4. Confidential lnformation shall not be disclosed to any third party without prior written consent of BPUD except as permitted under the Defend Trade Secrets.Act.

The Defend Trade Secrets Act provides that an individual may not be held criminally or civilly liable under any federal or state trade secret law for disclosure of a trade secret: (1) made in confidence to a government official, either directly or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; and/or (2) in a compliant or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, an individual suing an employer for retaliation based on the reporting of a suspected violation of law may disclose a trade secret to his or her attorney and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under seal and the individual does not disclose the trade secret except pursuant to court order.

5. lt is understood that Bank shall have no obligation with respect to any information known by it or generally known within the industry prior to the date of this Agreement, or become common knowledge with the industry thereafter.

6. Bank acknowledges that any disclosure of Confidential lnformation will cause irreparable harm to the BPUD, and agrees to exercise the highest degree of care in safeguarding Confidential lnformation against loss, theft, or other inadvertent disclosure and agrees generally to take all steps necessary to ensure the maintenance of confidentiality including obligating any of its Representatives who receive Confidential lnformation to covenants of confidentiality.

7. The obligation set forth in this Agreement will continue for as long as Bank possesses Confidential lnformation. lf Bank fails to abide by this Agreement, the BPUD will be entitled to specific performance, including immediate issuance of a temporary restraining order or preliminary injunction enforcing this Agreement, and to judgment for damages caused bythe Bank's breach, and to any other remedies provided by applicable law. Any breach of this Agreement shall constitute a default in performance by Bank in any contract between the BPUD and Bank. lf any suit or action is filed by BPUD to enforce this Agreement, or otherwise with respect to the subject matter of this Agreement, the prevailing party shall be entitled to

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CoNTRACT #L8-16-02 recover reasonable attorney fees incurred in the preparation or in prosecution or defense of such suit or action as affixed by the trial court, and if any appeal is taken from the decision of the trial court, reasonable attorney fees as affixed by the appellate court. This Agreement shall be governed by and construed in accordance with the laws of the State of Washington.

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106 BEilTOfl Business Agenda Second Reading X Consent Agendo

I nfo O n ly/ Possi bl e Acti o n lnfo Only COMMISSION MEETING AGENDA ITEM

Subject: Bid Package #L8-L4 - Construction of L5'xL8' Stucco Building and lnstallation of Chiller / Boilers - Reject all Bids Agenda ltem No: ffi Meeting Date August 28,20L8

Presented by: John Schafer Stoff Presenting ltem A4- Approved by (dept) Stephen B.Hu6ter Director/Monager

chad B, Bartram General Manoger/Asst GM EW: CW

Motion for Commission Consideration Motion to reject all bids received for Bid Package #L8-1.4, Construction of L5'x18'Stucco Building and lnstallation of Chiller / Boilers based on the bid submitted exceeded the Engineering Estimate by L5%.

Background The District issued Bid #1B-L4 - Construction of l-5'X1B' Stucco Building & lnstallation of Chiller/Boiler on July 25,2OL8; the intension of the bid was to contract with a qualified contractor to construct a building that would hold a new chiller and 2 boilers. On August 1-0, 2018 the bid was opened. Bids were issued to 24 Contractors/Plan Centers and one bid was received; Vincent Brothers:

Vincent Brothers Line 1 S285,512.00 (installation of chiller/boilers and construction of building) Line 2 $56,055.00 (installation of wall)

The District's Engineers estimate for this project was 575,000. Based on this estimate, the bid received exceeds the estimate by a significant amount. Clarifications have been made by the District with Vincent Brothers and the Mechanical Engineer for this project. After reviewing this information it is the thoughts of the District that the cost of the materials and the project timeline is the reason for the differential in cost received on this bid. Additional review will made on this project and a new bid will be issued for this project.

Summarv Recommend the District reject the bid received for Bid Package # L8-I4 and re-issue a bid after review of all documents,

Fiscal lmpact N/A

107 BEffiOil Business Agendo Second Reoding X Consent Agenda

ä-a-n I O n ly/ P ossi bl e Actio n nfo lnfo Only COMMISSION MEETING AGENDA ITEM

Subject: r Project Completion and Acceptance for Contract #L8-09, Vincent Brothers, LLP ,Agenda ltem No:

Meeting Date: August 28,2018

Presented by: Michelle Ochweri Støff Presenting ltem

Approved by (dept): Jon Meyer Director/Mqnoger

Approved for Chad B. Bartram Ge ne rql M ø noge r/Asst G M Commission review

Motion for Commission Consideration Motion authorizing the General Manager on behalf of the District to sign Contract Completion and Acceptance for Kiosk lnstallation at Kennewick and Prosser by Vincent Brothers, LLP for Contract #LB-09, (CPO #5L574), in the amount of 570,132.00 plus Washington State sales tax.

Background The District entered into a contracton April 13,2OI8 with Vincent Brothers, LLPto installthe kiosk's at Kennewick and Prosser, the work for the installations were for the amount of S70,132.00. The contract work was complete on July L8, 2018.

Summarv The installation of the kiosk'sfrom Vincent Brothers, LLP has been provided duringthe duration of the contract and the invoices fortheir services have been received and paid; therefore, the contract is now ready to be closed.

Fiscal lmpact This project completion and acceptance will have no additional fiscal impact on the District. Upon closingthis contract the retainage which was held perthe term of the contract will be released.

108 BETTOTI ä-a-L PROJECT COMPLETION AND ACCEPTANCE (Contracts $60,000 and greater)

TO Commission/General Manager BENTON PUD

The following information is submitted to the Commission/General Manager after being reviewed and certified as being accurate by District staff. The work has been fully completed and approved by the staff.

CONTRACT NUMBER 1B-09 (CPO #51574)

CONTRACT DESCRIPTION Kiosk lnstallation - Kennewick and Prosser

CONTRACTOR NAME Vincent Brother, LLP

UBI NUMBER 602701 699

AFFIDAVIT NUMBER 797872

DATE WORK COMMENCED April 13, 2018

DATE WORK COMPLETED July 18,2018

DATE ACCEPTED BY STAFF July'18,2018

CONTRACT BID AMOUNT $67,725.00

CONTRACT ADDITIONS $2,407.00

ACTUAL CONTRACT AMOUNT $70,132.00

SALES TAX $6,03'1.35

TOTAL CONTRACT AMOUNT $76,163.35

AMOUNT RETAINED $3,506.60

Submitted by Michelle o"n*Ñ Date: Auqust 2 1. 2018

Accepted by Commission 201 (Date) (Chad B. Bartram, General Manager)

Bonding Co. Westfield lnsurance Company Agent Westfield. Ohio

Original - Vault File Copy to - Accounting Revised July 2014

109 Business Agenda Second Reoding X Consent Agendo

I nfo O n ly/ Possi ble Acti o n lnfo Only

COMMISSION MEETING AGENDA ITEM

Subject: Jobs Report for Commission Agenda ltem No 5ts', Meeting Date: August 28,2OL8

Presented by: Brenda Webb Staff Presenting ltem

Approved by (dept): Rick Dunn Director/Monoger

Approved for Chad B. Bartram General Monager/Asst GM Commission review:

Motion for Commission Consideration:

None.

Recommendation/Backeround

District Resolution No. L607 authorizes the General Manager to approve constructlon and maintenance work orders up to 5100,000.

The attached summary table (Jobs Report) provides a list of work orders with an estimated cost of less than 5100,000. The Jobs Report is presented generally once a month to the Commission for the purpose of maintaining open communications and accountability for projects of significant value; generally over S15,000. The report is intended for information only with no Commission action being requested.

Summarv

The attached Jobs Report provides a summary of work orders of significant value up to the 5100,000 limit authorized for approval by the General Manager.

Fiscal lmpact

Report only.

110 Engi neeri ng Department MEMO To: Rick Dunn From: Brenda Webb Date: August t,2OL8 Re: Jobs Report to Commission

Reimb./Aídto Estimøted Net Costto tob No. Name Locøtion Descríptìon Engíneer Const.; lncludes tob Cost BPUD Salvage Highland View Viking Builders Single phase line extension to (1) 5L4484 Heights-36th & SME 59O,420.62 564,649.22 LLC new subdivision 525,771..40 Gum Ave Remove poles & OH 336/lnstall Pahlisch 53649L Bermuda Rd pole to move cap bank, install CMB 599,32L.26 599,321.26 So.o Homes, lnc vaults & UG feeder Kennewick Relocate overhead feeder to 537231, 125 S Conway Pl TA s25,7rt.37 So.o School District maintain clearance Szs,ttt.El

Bagley Underground three phase line (21 543100 540L Ridgeline Dr CMB 516,979.77 s5,525.51 Landscaping extension. stL,454.26 6208 W Okanogan Underground three phase line s431_1_0 BillYap CMB 547,834.L7 Ave extension iql,B3q.tl s0.0 W 31't Ave - Apple Underground line extension to (3) 544506 Matt Smith CMB 572,9O3.37 S¿8,s8s.zt Valley, PH 4A serve 39 lots 524,3L7.66

1321 N Columbia Set new J-box and transformer, (41 5448!7 Simon CMB s18,388.96 58,873.74 Center Blvd re-route two existing services 59,5r5.22 Underground line extension to 2- (s) 545392 Jeff Oliver 4L72w 24th Ave CMB 5s2,L92.68 516,or2.77 future1,000A & 2-8004 services S36,179.91 llPage B.'Webb111 Reimb./Aíd to Estimated Net Costto lob No. Nqme Loceition DescriptÍon Engìneer Const,; Includes tob Cost BPUD Sølvage 7000 w Three phase underground line (6) 546277 Toyota Center CMB Sto,+gg.t+ 52,L85.76 Grandridge Blvd extension to 1,600A service St+,zsg.gg

(L) 514484 - District Cost (S25,77t.4O1is to install multiple single phase transformers; 4-25kVA, 8-37.5kV4, & 2-5OkVA. (2) 543100 - District Cost (511,454.261is to install a three phase 300kVA transformer. (3) 529337 - District Cost (524,3L7.66) is to install multiple single phase transformers; 8-25kVA and 6-37.5kV4. (4) 5448L7 - District Cost (S9,515.221is to install a three phase 150kVA transformer. (5) 545392 - District Cost (36,179.91) is to install multiple three phase transformers; 2-300kVA & 1-500kVA. Fiber/conduit will be installed for future use. (6) 546277 - District Cost (St+,253.38) is to install a three phase 750kVA transformer.

2lP age B. Webb112 X Business Agenda Second Reoding Consent Agenda lnfo Only/Possible Action lnfo Only COMMISSION MEETING AGENDA ITEM Subject: Contract Change Order #4 - DJ's Electrical, lnc. - Joint Use - NESC Compliance and Cable Replacement Construction Project, Contract #1.7- 07 Agenda ltem No:

Meeting Date: Se mber 12,20L7

Presented by: Evan Edwards Stoff Presenting ltem

Approved by (dept): Rick Dunn Director/Manager

Approved for Chad B. Bartram Ge ne rol M ø noge r/Asst G M Commission review

Motion for Commission Consideration Motion to authorize the General Manager on behalf of the District to sign Change Order #4 of Contract #L7-07 Joint Use - NESC Compliance, Cable Replacement and Construction Projects with DJ's Electrical, lnc.; to extend the term of the contract to September 30, 2019 and increase the contract amount by 52,329,956 for a new Not to Exceed (NTE) amount of 55,300,609 plus Washington State sales tax in accordance with RCW 54.04.080.

Background Staff recommends extending the contract term for contracl 17-07 to September 30, 2019. The contract was awarded in September 2017 with up to a three year term, renewable on an annual basis.

DJ's Electric has been highly responsive to the District's emerging work load and project priorities and has been a very valuable partner in the District's ongoing construction efforts related to Joint Use NESC Corrections, cable replacement, and capital projects. Extending the contract term ensures continuity for our Joint Use Correction program as well as our Cable Replacement program, and makes labor resources available for system improvement projects that otherwise compete with District labor which has customer related projects as the highest priority.

With the extension of the contract term staff recommends the NTE amount of the contract be increased to ensure funding to the end of the extended contact term.

One of the primary work scopes for this contract is the District's long term Cable Replacement program. At the beginning of 20L7 the District had over 27 miles of single phase cable and over L0 miles of three phase cable requiring replacement. Of the 27 miles of single.phase cable roughly 2.5 miles were completed by a separate contract leaving just over 24 miles requiring replacement,2L miles will require conduit to be installed either by trenching or directional bore. The remaining 3 miles of the single phase cable is older cable reaching the end of ¡ts l¡fe,

113 but installed in conduit. There is just over 10 miles of three phase cable requiring replacement of which roughly half will require conduit to be installed either by trenching or directional bore.

The estimated cost of contact labor to replacement of cable was $800,000 per year in 2QI7 and 20L8. Staff's latest estimates are that future budgeting will need to increase to S1,200,000 per year hence the 2018 budget amendment of $400,000.

As the cable replacement program moves into replacing cable that does not require conduit installation the amount of cable replaced per year will increase if funding stays consistent.

Currently June 2018 DJ's has completed 2.32 miles of single phase cable replacement that required conduit to be installed either by trenching or directional boring. DJ's is completing roughly 2000 feet per month at a cost of roughly S100,000 per month.

The District's Cable Replacement program included a proposed budget amendment for the remainder of 2018 of 5400,000. To ensure Cable Replacement program contract labor is available through September 2019, the 2019 Budget includes 5900,000 through the end of the third quarter of 2019.

The District's Joint Use NESC Compliance program is also part of this contract. ln April of 2018 a contract change order increased the contract NTE by S1,000,000 with 5750,000 going towards the "One Touch" program with a portion to be reimbursed by our Joint Use partners, and 5250,000 going towards the upgrades to open wire secondary that is contributing to Joint Use violations. This change order will be accounted for in a budget amendment. Since the term of the contract is being extended, we would like to increase to include proposed 20L9 budget dollars through the end of the contract term. This includ es 5767,520 towards our "One Touch" program of which we expected to receive 5+60,512 in reimbursement from our partners, and 5187,500 for open wire secondary upgrades.

Staff is also seeking commission approval of work order #523432 that will include DJ's Electric contract labor to install a new feeder conduit system from Orchard View Substation north to Clearwater Avenue where it will meet up with a new double circuit overhead line that will be constructed using District line labor. The estimated cost for the underground portion to be completed by DJ's Electric is $149,500 and will be included as Line ltem #7 on the contract purchase order. ln addition to the cable replacement projects being worked in 2018, the District utilized DJ's Electric labor to install new primary electric and fiber conduits across Columbia Center Blvd. in anticipation of a City of Kennewick (COK) paving project. This project was necessary to avoid a seven year moratorium on cutting and patching COK roads that have been newly paved. The cost of this project was $OO,O¡S.+1 and is pending payment and will be included as line item #8 on the contract purchase order.

This change order will also credit $2,678.58 to line item #3 of the associated contract purchase order from line item #1. to correct an incorrect charge related to NESC Joint Use Correction work being charged to cable replacement.

114 Summarv This NTE increase will continue the momentum of cable replacement and Joint Use Corrections and avoid mobilization and de-mobilization cost. lt also ensures that the planned capacity improvements to the Vista Field area continue as planned, and that future feeder cable replacement projects for Vista Substation can be completed as planned

Fiscal lmpact The 2018 budget for cable replacement is anticipated to be spent by the end of August therefore a budget amendment has been submitted to continue cable replacement projects through the end of the year. Projects for Columbia Center Blvd. conduit crossings and the Orchard View north feeder were not budgeted for at all in the original budget but are included with the 20L8 proposed amended budget as well.

The proposed 2019 budget includes allocations for continued Joint Use corrections efforts and cable replacements and the requested contract NTE increase is for through the end of the third quarter of 20L9 at which time the contract with DJ's Electric, lnc. will be re-evaluated.

This contract change order assumes that both the 20L8 amended budget and the 20L9 proposed budget receive commission approval in the coming months.

Contract Expected #L7-07 Joint User BPUD Net DESCRIPT¡ON Totals Contribution Expense L7-07 Current Contract amount following CO#3 52,970,6s3 5944,642 52,026,0rr Change Order #4 Distribution Projects s209,536 n/a s209,536 Change Order #4 JU-NESC Compliance (thru Q3 L9') 516l,szo 5460,512 s307,008 Change Order f3 OWS Removal (thru Q3 19') s187,500 n/a s187,500 Change Order #4 Cable Replacement (Amended 18') s4oo,ooo n/a s4oo,ooo Change Order #4 Cable Replacement (th ru Q3 L9') Sgoo,ooo n/a sgoo,ooo Totals $s, 435,2O9 s1,405,154 s4,030,055

115 Contract Change Order

272Lw.1otn Au". PO Box 6270 Kennewick, WA 99336

1. Contract Change No. 2. Contract No. 3. Effective Date 4 L7-O7 August 28,20L8

4. Contract Name & Address 5. Contract Cost Adjustment - This Change Only x - |NCREASE 52,329,956 DJ's Electrical, lnc. - DECREASE S 2319 SE Grace Ave. + Washington State Sales Tax Battle Ground, WA 98604 6. Contract Schedule Adjustment - This Change Only

New Expiration Date: September 30, 2019

7. Description of Changes:

Extend the term of the contract to September 30, 2019 and increase the contract amount by 52,329,956 for a new Not to Exceed (NTE) amount of 55,300,609 plus Washington State sales tax in accordance with RCW 54.04.080.

EXCEPT AS PROVIDED HEREIN, Att TERMS AND CONDITIONS OF THE CONTRACT REMAIN UNCHANGED AND IN FUtt FORCE AND EFFECT

8. Name of Contractor (Print or Type) 9. Benton PUD (Print or Type)

S¡gnature Signature

By By Chad B. Bartram

Title Title General Manager

Date Date M4ch 13, 2018

116 Business Agenda Second Reading X Consent Agenda

I nfo O n ly/P ossi ble Acti o n lnfo Only COMMISSION MEETING AGENDA ITEM

Subject: Work Order 523432 - Orchard View North Feeder Agenda ltem No: \y) Meeting Date August 28,20t8 Presented by: Mike lrving Stoff Presenting ltem

Approved by (dept) Rick Dunn Director/Manager

Approved for Chad B. Bartram General Manager/Asst GM Commission review: w Motion foî Com mission Consideration Motion approving work order #523432 for the construction of an underground feeder from Orchard View Substation north to Clearwater Ave along with the Re-Conductor and addition of a 2nd circuit to the existing overhead distribution line along West Clearwater Ave from S Colorado St to N Quay St.

Background This project increases distribution feeder capacity to accommodate the Port of Kennewick's Vista Field re-development plans and to increase capacity for the existing South Vista Field area which is experiencing further development and load growth.

Summary Approval of work order #523432 will authorize the construction of the electrical facilities necessary to meet the request for electrical services by the Port of Kennewick and will provide distribution facilities needed to help ensure long-term reliable electrical service is maintained.

Fiscallmpact The estimated project cost is 5553,925.16. Material Cost is 5t6l,770.o6, BPUD Labor Cost is 5242,655.I0 and Contractor Labor Cost is 5149,500.00 including tax and an adder for possible hand trenching and/or rock trenching. This project was not included in the District's original 2018 capital budget but will be included in the 20L8 budget amendment.

117 Projects to be Presented at the Benton PUD

Commission Meeting On

August 28th, 2Ot8

Project Name: Orchard View North Feeder W0.#2523432

Location: Orchard View Sub north to Clearwater Ave, east to Quay St

Justification: Additional needed capacity in the Vista Field area

Location Map

118 BEilTOT Business Agendo Second Reading Consent Agenda

I nfo O nly/Possi bl e Acti on lnfo Only

COMMISSION MEET¡NG AGENDA ITEM

Subject: Financial Forecast Presentation

Agenda ltem No: fl^ lL' Meeting Date: August 28,2018 Presented by: Jon Meyer / Keith Mercer StaÍf Presenting ltem Approved by (dept): Jon Meyer Director/Mandger Approved for Chad Bartram General Monoge r/Asst GM Commission review

Background None

Summarv District staff will present information on the current financial forecast.

Fiscal lmpact None

119 Business Agenda Second Reading Consent Agenda

I nf o O nly/P ossi b I e Acti on lnfo Only

COMMISSION MEETING AGENDA ITEM

Subject: Resolution No. 24-12 Amending the 20L8 Budget Agenda ltem No lcl Meeting Date: August 28,201.8 Presented by: Jon Meyer / Keith Mercer KM Staff Presenting ltem Approved by (dept): Jon Meyer Director/Manoger

Approved for chadB.trnrr1ØÐ G e neral M o noge r/Asst G M Commission review:

Motion for Commission Consideration: Motion to adopt Resolution No.?-fi? amending the 20L8 Budget.

Recommendation/Background The Commission passed Resolution No. 2433 adopting the 2018 Budget on Decemb er 1.2,20L7. ln accordance with the District's Financial Policies, a budget amendment will be presented to the Commission each year, as necessary, reflecting the latest projections for both revenues and expenditures through the end of the year. The purpose of amending the budget during the year is to formalize year-end estimates for purposes of financial forecasting and to reprioritize planned spending based on updated business assumptions.

The budget amendments will be reflected in the August financial statements. The budget amendment includes the following:

a lncrease of 5789,614 in Electric Revenues based on the updated revenue forecast and is primarily due to increased projected loads in the updated load forecast adopted April 10, 20t8, which was partially offset by lower than projected loads in January/February due to warmer than average temperatures and increased projected interest income from investments due to increased LGIP investment rates. a Decrease of S1,876,171. in Net Power Expense based on current mark-to-market (original budget set at 25th percentile and actual water flows are significantly higher than average in 2018. a lncrease of 51,300,723 in Electric Non-Power Operating Expense primarily due to increased National Electrical Safety Code (NESC) compliance program costs (public safety) and labor allocation true-up for Operating and Maintenance (O&M) labor that was budgeted in Capital Projects.

120 a Net decrease of $1,578,231in Electric Capital Additions primarily due to transmission projects shifted from 20L8 to 20L9 and labor allocation true-up for O&M labor that was budgeted in Capital Projects.

Summarv The recommended amendments to the 20L8 Budget will be reviewed at the August 28, 20t8 meeting. Budget amendments will reflect known and expected changes in the operations of the District for 20L8.

Fiscal lmpact Adoption of the 2018 Amended Budget will establish revised targets for the current fiscal year

121 RESOLUTION NO. 2472

August 28,2018

A RESOLUTION OF THE COMMISSION OF PUBLIC UTILITY DISTRICT NO. 1. OF BENTON COUNTY ADOPTING THE 201.8 BUDGET AMENDMENT

WHEREAS, Resolution No. 2433 adopted the 2018 Budget for the Public Utility District No. L of Benton County (the "District") on December 12, 20L7; AND

WHEREAS, Resolution No.2313, District Financial Policies, adopted March 24,201.5, sets forth financial goals for the District which, among other requirements, established budgetary and procurement controls over expenditures indicating that the Commission shall approve total amounts for each of five budget categories, including Revenues, Net Power Expense, Non- Power Operating Expenses, Net Capital Additions and Debt Service, and requiring that budget amendments be presented to the Commission each year, as necessary; AND

WHEREAS, District staff has reviewed the District's actual revenues and costs through July 2018 and has developed revised budget requirements for each of the five budget categories for 2018; AND

WHEREAS, projected retail revenues are slightly above original budget due to increased projected loads in the updated load forecast, adopted April 10, 20L8, which was partially offset by lower than projected loads in January/February due to warmer than average temperatures in those months and projected interest income from investments has increased due to a significant increase in the LGIP rates in 2018; AND

WHEREAS, annual Net Power Supply is projected to be less than originally budgeted due to the original budget being set at the 25th percentile and actual water flows are significantly above normal for the year, resulting in a decrease in secondary market purchases and increase in secondary market sales; AND

WHEREAS, Non-Power Operating Expenses are projected to be above original budget primarily due to increased National Electrical Safety Code (NESC) compliance program costs (public safety) and labor allocation true-up for Operating and Maintenance (O&M) labor that was budgeted in Capital Projects; AND

WHEREAS, Net Capital Additions are projected to be less than originally budgeted primarily due to transmission projects shifted from 2018 to 2019 and labor allocation true-up for O&M labor that was budgeted in Capital Projects; AND

Page L of 2

122 NOW, THEREFORE, BE lT RESOLVED by the Commission of Public Utility District No. L of Benton County that the 2018 Amended Budget, with projected Revenues (excluding wholesale power sales and capital contributions) of S135,556,883, Net Power Expenses (including wholesale power sales) of 580,652,142, Non-Power Operating Expenses (excluding interest expense) of 547,706,443, Net Capital Additions (excluding capitalized interest and including capital contributions) of S16,456,968, and Debt Service (including principal and interest on debt) of 55,7t5,457 be adopted.

ADOPTED By the Commission of Public Utility Distr.ict No. L of Benton County at an open meeting, with notice of such meeting given as required by law, this 28th day of August 2018.

Barry A. Bush, President

ATTEST:

Lori Kays-Sanders, Secretary

Page 2 of 2

123 PUBTIC UTILITY DISTRICT NO.1 OF BENTON COUNTY 2018 BUDGET AMENDMENT August 28, 2018

Non-Power Net Power Operat¡ng Net Cap¡tal Debt Llne Department / ltem Revenues Expense Exoense Add¡tions Service # lll I2l (31 (4t {s) 7 2018 Approved Eudget s L34.767.269 s82.s28.313 s 46.405.720 s18.O35.199 s 5.700.4s7 2 3 Electr¡c Amendments 4 Net Power Supplv 5 BPA Slice True-up (516.420) 6 BPA Spill Surcharge 207.226 7 Net Frederickson Expense Reduct¡on (Add¡tional Fixed Cost Recovery) (L.234,Lz!l I Renewable Energy Credit Purchases 131.133 9 Reduct¡on ¡n Option Premiums (127,2721 70 Other Purchases - Power s68.080 71 lncrease in Secondary Market Sales 11.368.0671 12 lncrease ¡n Transmission Sales (286.7301 13 Additional Market Purchases for Warmer than Average July/August 7s0.000 14 L5 Ooerat¡nq Revenues 16 Energy Sales - Retail 389.614 77 78 Operations & Maintenance 79 NESC Compliance - Public Safety 514,301 20 Public Generat¡ng Pool (PGP) Membersh¡p s6.2s0 21 Occupatlon Taxes 60,000 22 Regular Labor Under Run due to Attrition 1150.0001 23 Addit¡onal Overt¡me due to Attrition and Emerg¡ng Work 1s0,000 24 Labor Allocation True-up for O&M Labor Budgeted ¡n Capital 411.086 1411.086) 25 Labor Benefìts Allocat¡on True-up for O&M Labor Budgeted in Capital 259.086 1259.0861 26 27 CaÞ¡tal Pioiects 28 Transm¡ssion 29 BPA lnterconnection - Southridge Sub/Line Tap f535.000) 30 BPA McNary 115kV Point of Delivery f550_000ì 37 Transmiss¡on Line - Sunset Rd. to Dallas Rd. 1909.070) 32 Other Transm¡ssion Projects (a6.7421 33 Distr¡but¡on 34 Orchard V¡ew f2 498.698 i5 Distribut¡on Rêtulators SCADA Comm. 1172.s001 36 Phi-8, New Feeder North to Cochrane 190.000) 37 Voltage Optimlzation - Kennew¡ck 117s.000ì 38 whitcomb Regulators 159.2s7) 39 Xfmrs and Run Secondary 464.730 40 Orchard View Bay #2 Sub Feeder Getaways f201.2s0ì 41 *Cold Creek Sub Feeder Upgrade 389.266 42 *W. Metal¡ne Avenue COK Road Widen¡ng 477.644 *Orchard 43 View Sub Feeder ß2 Upgrade to Vista F¡eld 50r,072 44 *H2Fs2 - Agri NW Shed (4) Addition 216.529 45 Dist. Cable Replacement s00,000 46 NESC Compliance - Public Safety lss.000ì 47 Other Distribut¡on Projects 1875.9361 48 General Plant 49 Asphalt Admin Drive Through & West Park¡ng (120.0001 50 Dry F¡re System Bu¡lding #3 & #2 (Ops.) {45,000) 51 Kiosk - Kennewick & Prosser 54.000 52 Pa¡nt - Operation Dock Area 112.000ì 53 Replace Line Truck #128 (ordered but will be rece¡ved in 2019) 1340.0001 54 lnformat¡on Technoloqv f27.000ì 55 Contr¡butions ¡n Aid (ClACl 1239,1071 56 57 Non Departmental: 58 lnterest lncome 400,000 59 New LOC Contract 15,000 60 61 Subtotal Electric Amendments s 789.614

124 Page 1 of 9 PUBLIC UTILITY DISTRICT NO.1 OF BENTON COUNW 2018 BUDGET AMENDMENT Au8ust 28, 2018

Non-Power Net Power Operatlng Net Cap¡tal Debt Line Department / ltem Revenues ExDense Expense Additions Sewice # {1) I2l {31 f4l (5) 62 63 2017 Cap¡tal Proiects comoleted in 2018 (2017 Under Runl 64 Switch Upgrade/Add¡t¡ons 154.681 65 New Substation Lesl¡e 274.739 66 Distribut¡on Automation for Voltage Optim¡zation 52,300 67 Vl5-1to VIS-6, UG Tie Across W. Quinault Ave 100.000 68 HED4, Reliability and Sectionalizing 75,000 69 Southridge Property Acquisit¡on 303927 70 Other D¡stribution Projects 94,2L3 71 HVAC-Admin&Prosser 175,000 72 7i 2017 Cap¡tal Pro¡ects completed ¡n 2018 Total s 74 75 Potential 2018 Carry Over 76 77 Broadband Amendments 78 Broadband 79 80 Subtotal Broadband Amendments s s s s s 87 82 TOTAT AMENDMENTS s 789.614 83 84 2018 Budget as Amended 85 86 Budset CatePories 87 (1). Revenues excluding wholesale power sales and capital contr¡butions. 88 (2) Net Power Expenses including wholesale power sales. 89 (3) Non-Power Operat¡ng Expenses excluding interest expense. 90 (4) Net Cap¡tal Add¡t¡ons excluding capital¡zed interest and including capital contr¡but¡ons. 97 (5) Debt Seruice ¡ncluding principal and interest on debt. 92 * Emerging proiects, due to customer growth

125 Page 2 of 9 Comparative Operating Statement Public Utility District No. 1 of Benton County 2018 Amended Budget

2018 2018 Amended Original !ncrease/ % Budget Budget (Decrease) Change OPERATING REVENUES Energy Sales - Retail s130,828,0s6 5L30,438,442 s389,614 0.3% Energy Sales fòr Resale !7,IL5,236 13,007,988 4,107,248 31,.6% Transmission of Power for Others L,t86,730 900,000 286,730 3r.9% Broadband Revenue 2,330,324 2,330,324 0.0% Other Revenue 1,598,503 1,s98,s03 o.o%

TOTAL OPERATING REVENUES 153,058,849 148,275,257 4,783,591 3.2%

OPERATING EXPENSES Purchased Power 85,s48,s77 83,064,5t7 2,484,060 3.0% Purchased Transmission and Ancillary Services 13,268,0L2 13,234,265 33,747 03% Conservation L37,519 r37,s79 0.0%

Total Power Supply 98,954,108 96,436,301 2,st7,807 2.6%

Transmission Operation & Maintenance 192,901. 184,70I 8,200 4.4% Distribution Operation & Maintenance 10,147,082 9,5s4,070 s93,011 6.2% Pole Contacts: Sup & Eng Exp s67,301 53,000 5L4,301 Broadband Expense 938,415 938,4rs 0.o% Customer Accounting, Collection and lnformation 4,525,4I9 4,447,493 77,926 7.8% Administrative & General 7,377 ,243 7,329,959 47,284 O.6/o Subtotal before Taxes & Depreciation 23,748,36L 22,507,638 L,240,723 5.5% Taxes 13,903,000 13,843,000 60,000 0.4% Depreciation & Amortization 10,05s,082 10,055,082 o.0% Total Other Operating Expenses 47,706,443 46,405,720 L,300,723 2.8%

TOTAL OPERATING EXPENSES 146,660,551 t42,842,O21 3,919,530 2:7%

oPERATTNG TNCOME (LOSS) 6,398,298 5,433,236 965,062 t7.8%

NONOPERATING REVENUES & EXPENSES lnterest lncome 800,000 400,000 400,000 100.0% Other lncome 376,070 376,070 0.0% lnterest Expense (2,720,760) (2,70s,7601 (1s,000) o.6% Debt Discount & Expense Amortizat¡on 453,710 453,7L0 0.ÙYo

TOTAL NONOPERATING REVENUES & EXPENSES (1,090,9801 (1,475,980) 385,000 -26.1%

rNcoME (LOSSI BEFORE CONTRTBUTTONS 5,307,318 ?,957,256 1,350,062 34.1%

CAPITAL CONTRISUTIONS 1,615,856 t,376,749 239,LO7 17.4%

CHANGE IN NET POSITION $s,334,00s 5r,599,169 29.8%

NET POWER 80,652,L42 3g2,szg,3t3 (s1,876,171) -2.3%

CHANGE IN NET POSITION 56,923,174 $s,334,00s S1,s99,169 29.8% Less: Gross Capital in Excess of Depreciation 18,272,2t91 (9,611,3431 L,339,t24 -L3.9To Less: Principal Payment on Outstanding Debt (3,s70,000) (3,s70,000) 0,o% Plus: Non-Cash ltems (Prepaid Expense Amortizations, etc.) s63,426 563,426 o.o% ESTIMATED ADDITION/{REDUCTION) TO CASH RESERVES (s43ss,6191 1s7,283,9t21 s2,928,29t -40.2%

126 Page 3 of 9 Comparative Capital Budget Public Utility District No. 1 of Benton County 2018 Amended Budget

20L8 Amendment 2018 Original lncrease / %ol Ca G Change Transmission Transmission Proiects s 753,409 s 2,679,s40 s (1.926.1311 -7r.88% Transmission Total 753,409 2,679,540 (1,926,1311 -7t.88% Distribution Capacity & Reliabilitv 6,915,019 4,839,097 2,075,922 42.90% Customer Growth 4,054,751 3,517,421 537,330 t5.28% Repair & Replace 2,034,967 1,495,000 539,967 36.12% Other 358,956 2,6L0,169 (2,251,2731 -86.25% Distribution Total t3,363,694 12,46L,687 902,OO7 7.24% Broadband Broadband 1,385,586 1,385,586 0.00% Broadband Total 1,385,586 1,385,596 0.00% General Plant General Plant t,206,492 1,494,492 (288,000) -79.27% General Plant Total 1,206,492 1,494,492 (288,000) -t9.27%

I nformation Technology I nformation Technology 1,257,500 1,284,500 (27,OOOI -2.t0% Other 706,743 106,743 o.oo%

I nformation Technology Total L,363,643 t,390,643 (27,000) -L.94% Capital lnterest Capital lnterest 254,477 254,477 0.00% Capital lnterest Total 254,477 254,477 o.o0% Contributions in Aid Broadband (s0,000) (s0,000) 0,00% Capacity & Reliability (2s7,6341 (257,6341 nla Customer Growth (7,144,2491 (7,094,7491 (49,s00) 4.52/o Transmission Proiects (46,973) (46,9731 nla Other (117,000) (232,000) 115,000 -49.s7% Contributions in Aid Total (1,61s,8s61 0,376,7491 l239,t07l t7.37% Grand Total 5 t6,7Lt,4qs $ L8,289,676 S 0,s7g,2gtl -9,63%

4of9 127 COMPARATIVE BROADBAND BUDGET Public Utility District No. 1of Benton County 2018 Amended Budget

2018 2018 Amended Original lncrease/ % Budget Budget (Decrease) Change Revenue Sz,g?o,924 52,3ro,324 $o 0.0% Operating Expenses (938,415) (938,4151 o.o% Net lncome (Loss) 1,391,909 1,391,909 o.o%

Broadband Capital:

G ross Capital Expenditures 1,385,586 1,385,585 o.o% Capital Contributions nla Net Capital Expenditures 1,385,586 1,385,586 o.o%

Net Cash lrom | (to) Broadband $6,323 56,323 $o o.o%

Summary does not include depreciation or internol interest

128 Page 5 of 9 Comparative Budget by Activity Code Public Utility District No. 1of Benton County 2018 Amended Budget

2018 20t8 Amended Original lncrease/ % Budget Budget (Decrease) Change

Allocated Costs:

88 Payroll Taxes 5L,077,449 5L,077,449 So O.Oo/o 101 Employee Benefits 5 34 5,183,834 O.Oo/o Allocated Cost Total

Payroll: 10 District Overtime Labor 813,16t 663,161 1.50,000 22.6% LL All Other District Labor 793 794 -t.L% Distr¡ct Labor Total

Power Cost: 9 Purchased Power 95,185,645 92,675,338 2,570,307 2.70/o Power Cost Total 95,185,645 92,675,338 2,5L0,307 2.7%

System Costs: L Contingency (387,640l, (270,000) (LL7,640) 43.60/o 12 Materials & Supplies 3,676,575 2,438,800 1,,237,776 50.8% 13 Store Expense - Non Labor 25,000 25,000 0.o% i+ SmallTools & Materials 107,050 L07,050 o.o%

15 Transportation Expense-Gas&Oil 225,500 225,500 O.Oo/o 16 Transportation Exp-Repair&Main 179,500 179,500 o.o% 17 Operation & Maintenance Exp 485,778 4L0,778 75,000 t8.3o/o 18 Misc Construction Expense L,L78,364 2,032,678 (854,314) -42.0% 19 Tree Trimming - Contract 605,000 605,000 0.0% 20 Off-the-Dock Labor 96,226 974,236 (878,010) -90.L% 21. Elec Construction Contracts 2,998,602 L,3L5,000 1,683,602 728.O% 22 Contract Temporary Labor n/a

23 Environmental 22,000 22,000 O.Oo/o System Cost Total 9,211,956 8,065,542 t,t46,4!4 14.20/0

General Expenditures: 25 Maintenance of Software 897,650 888,890 8,760 LOo/o 26 Computer Hardware & Equip Exp 6L,000 66,000 (5,000) -7.6%

27 Personal Computer Software 33,500 33,500 O.Oo/o 28 Personal Computer O&M Costs 7t9,700 L23,700 (4,000) -3.2o/o 29 Personal Computer Supplies&Exp L2,000 72,OOO o.o% 30 Customer Service Expenses 409,682 409,682 0.0% 33 Office Supplies & Expenses 68,400 68,400 0.0% 34 lnsurance 557,450 559,450 (2,000) -0.4% 37 Grounds Care 95,000 95,000 o.o% 38 Maint of Bldg & lmprovements 299,t48 235,000 64,748 27.3o/o 39 Maint of Equipment 47,750 4L,770 5,980 L4.3o/o 40 Rents 329,929 329,929 0.0% 41 lnsurance Damages & Other Reim !2,600 10,000 2,600 26.0% 129 Page 6 of 9 Comparative Budget by Activity Code Public Utility District No. 1 of Benton County 2018 Amended Budget

2018 20t8 Amended Original lncrease/ o/o Budget Budget (Decrease) Change 42 Business Expense & Travel 259,750 26t,400 (1,650) -O.60/o 43 Training Expense & Travel 285,410 273,860 11,550 4.2% 44 Other General Expenses 9L0,799 910,799 0 0.0% 45 Subscriptions & Publications 23,990 23,990 0.0% 46 Treasurer Expenses 430,850 425,850 5,000 L.2% General Expenditure Total 4,954,609 4,769,220 85,388 1.8%

Utilities: 50 Telephone & Answering Services 202,284 199,284 3,000 L.5% 51. Water,Ga rbage, lrrigation&Other 73,000 73,000 o.o% Utilities Total 275,284 272,284 3,000 t.t%

Outside Services: 60 Audit Examination - State 108,000 100,500 7,500 7.5o/o 61 Professional Services L,2L3,976 29 L -8.7% Outside Services Total L,321,976 l,43O,O7O (108,094) -7.6%

Dues and Assessments: 70 Civic & Service Organizations L8,965 18,965 o.o% 72 lndustry Assoc Assessments 474,552 418,302 56,250 13.4% 73 Other Assessments n/a Dues and Assessments Total 493,517 437,267 56,250 t2.9%

Taxes: 80 Public Utility & Excise Tax 5,175,000 5,L75,000 O.0o/o 81 State Privilege Tax 2,669,000 2,669,000 0.0% 82 City Occupation Taxes 6,059,000 5,999,000 60,000 I.0o/o 87 Retailing & Wholesaling n/a 89 Service Taxes n/a Taxes Total 13,903,000 13,843,000 60,000 0.4%

Other Employee Costs: 104 Other Employee Costs 143,924 L43,924 0.0% Other Employee Costs Total 143,924 t43,924 o.o%

Energy Resources: 107 Residential Loans n/a L08 NonReimburse Conservation Cost n/a 109 Conservation Advertising n/a LLL lnspection Services n/a 112 Residential Conservation Exp 440,881 440,88! 0.0% LL3 Commercial Conservation Exp 500,000 500,000 o.o% 114 lndustrial Conservation Exp 700,000 700,000 0.0% LL5 lrrigation Conservation Exp 275,OOO 275,000 0.0%

130 Page 7 of 9 Comparative Budget by Activity Code Public Utility District No. 1 of Benton County 2018 Amended Budget

2018 2018 Amended Original lnôrease/ % Budget Budget (Decrease) Change L16 Energy Savings Plan Exp 100, 000 100,000 o.o%

117 Appliance Efficiency Program 250,000 250,000 O.Oo/o

118 Appliance Efficiency Program 180, 000 180,000 O.Oo/o Energy Resources Total 2,445,881 2,445,881 o.o%

Public lnformation:

119 Public lnformation Expenses 238,000 238,000 O.Oo/o Public lnformation Total 238,000 238,000 o,oo/o

Purchased Electr¡c Plant & Equip: 120 Substat¡on Xfrs & Regulators 595,388 1.,384,477 (789,089) -57.0o/o 121 Substation Equip & Materials 1,,273,574 1,065,969 207,545 L95% L22 Line Devices 578,566 452,658 L25,907 27.8% 123 Transformers & Related ltems 7,276,800 948,000 328,800 34.7% 124 Meters & Related ltems 230,000 160,000 70,000 43.8o/o L25 Land & Land Ríghts - Electric 260,000 265,320 (5,320) -2.0% 126 SCADA Master Statíon Equipment n/a 127 SCADA Communications Equipment 89,292 230,000 (140,708) -6t.2% 128 SCADA Substation Equipment 35,000 20,000 L5,000 75.0o/o 129 SCADA Travel&NonDistrict Labor n/a Purchased Electric Plant and Equip Total 4338,559 4,526,424 (187,86s) -4.2%

Generation: 140 Generation Plant & Equipment Capital Generation Plant & Equip Total

Purchased General Plant & Equip: 130 Land & Land Rights - General n/a L3L Structures & lmprovements 343,880 291,880 52,000 t7.8% L32 Office Equipment 7,OOO 7,000 (0) 0.0% 133 Transportation Equipment 722,OOO 1,o62,ooo (340,000) -32.0% 134 Tools, Shop & Stores Equipment 5,000 5,000 0.0% 135 Laboratory & Test Equipment 69,000 94,000 (25,000) -26.6% 136 Communícation Equipment 450,000 455,000 (5,000) 'l.Lo/o L37 Capitalized Computer Software 1.36,000 L23,000 L3,000 to.6% 138 Computer Equipment 536,500 602,500 (66,000) -L1..0% 139 Miscellaneous General Plant 50,000 50,000 n/a Purchased General Plant & Equip Total 2,319,380 2,640,380 (321,000) -t2.2%

Debt Service: L50 Principal 3,570,000 3,570,000 o.o% 151" lnterest 2,090,457 2,090,457 0.0% Debt Service Total 5,660,457 5,660,457 o.o%

131 Page 8 of 9 Comparative Budget by Activity Code Public Utility District No. 1 of Benton County 2018 Amended Budget

2018 2018 Amended Original Increase/ % Budget Budget (Decrease) Change Other Misc. Expenditures: 200 New Services Expenses 4,000 4,000 O.0o/o 201 New Product Expenses 3,500 3,500 O.0o/o 202 Mutual Aid & Other Reimb Expense n/a 303 WCEF Expense n/a 304 Grant Expense n/a Other Misc Expenditures Total 7,500 7,50O 0.0%

Non Reporting: 5 Construction OH Allocated (0) (0) 0 700.0% 6 Warehouse & SmlToolAllocated !t5,778 0 64,578 n/a 7 Warehouse & SmlToolAllocated (3s7,092) (0) (357,092) n/a 8 Warehouse & SmlTool Allocated 33,802 14,767 19,035 L283% Non Reporting Total (2O7,5t31 14,766 (273,4791 nla

Grand Total st60,692,4t0 s157,670,289 s?,022,L2t t.9%

Depreciation: 301 Depreciation 10,351,499 70,351,499 0.0% Depreciation Total S10,351,499 510,351,499 so o.o%

132 Page 9 of 9 Business Agenda Second Reoding Consent Agendo

I nfo Only/P ossi b le Acti on lnfo Only

COMMISSION MEETING AGENDA ¡TEM

Subject Performance Measurement - 2nd Quarter 2018 Report Agenda ltem No Meeting Date August 28,2018 Presented by: Jon Meyer/Kent Tirker eY Staff Item Approved by (dept) Jon M r Director/Monoger Approved for "(rfrD Commission review Chad B. Bartram General Monoger/Asst GM

Motion for Commi Consideration

None

Recom mendation/Background Performance measurement is a process that assesses the effectiveness of organizations or work groups in achieving their mission and objectives. The District has developed24 performance measures aligned with the District's strateg¡c anchors. The District's performance measurement program focuses on high-level measures that provide information to staff, the Commission, and the public as to the performance of the District in key areas. The report is available on the District's website, consistent with our objective to openly provide information to our stakeholders allowing of our performance. I them to measure the effectiveness i During the 2nd quarter, 17 of the 24 performance measures were rated as having positive quarterly performance, two were yellow, two were red, and three were blue/under construction. There are two measures under construction, due to the implementation of a new customer information system (NISC). They are targeted to return in 2018. Staff will highlight the following measures during the Commission meeting: o Telephone Service Level o O&M/Net Capital . H¡ring Efficiency o Conservation o Broadbønd Network Reliability o Enterprise Applicøtion Reliability o lnfrostructure Component Reliobility

Summarv Staff will review the Performance Measurement Report for the 2nd quarter of 2018 during the Commission meeting. The presentation will provide a review of actual vs. target performance for select indicators.

Fiscal lmpact None

133 2018 PERFORMANCE MEASURES

Benton PUD Strategic Anchors Customer Value, Stewardship, Reliability, Safety, Skilled Workforce

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Customer Telephone Electronic Service Order Rates Back Bill Rate Satisfaction Service Level Payments Process

Karen Miller Christie McAloon Christie McAloon Mike Irving Kevin White Christie McAloon Page 2 Page 3 Page 4 Page 5 Page 6 Page 7

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Unrestricted Days Cash Costs per kWh v. O&M Costs per O&M/Capital Collections Reserve Level On Hand COSA Customer

Kevin White Kevin White Kevin White Kent Zirker Kent Zirker Christie McAloon Page 8 Page 9 Page 10 Page 11 Page 12 Page 13

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Training and Hiring Day Ahead Power Secondary Conservation Safety Development Efficiency Price vs. ICE Market Sales I-937

Steve Hunter Melina Wenner Melina Wenner Kevin White Kevin White Chris Johnson Page 14 Page 15 Page 16 Page 17 Page 18 Page 19

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Broadband Enterprise Infrastructure Energy Loss Electric Electric System Network Application Component Percentage Reliability Outages Reliability Reliability Reliability Chris Folta Evan Edwards Evan Edwards Evan Edwards Chris Folta Chris Folta Page 20 Page 21 Page 22 Page 23 Page 24 Page 25 Target Q3 2018 Target Q3 2018

Legend The color assigned for each measure is a subjective evaluation of both the quarterly results, shown in the quarterly squares as well as the outlook for the calendar year compared to established targets, shown in the large box. The legend below provides general guidance for assigning colors. Positive performance - positive year-end outlook and exceeding quarterly expectation Q1 Q2 Q3 Q4 Improvement needed - concern about year-end outlook and less than quarterly expectation Indicator Title Adverse performance - negative year-end outlook and negative quarterly performance Outlook Data not available or no activity during the quarter

1 134 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Customer Satisfaction Outlook

Definition Track overall customer satisfaction and assess interaction with and use of services provided by Benton PUD.

How Performance Measure is Computed Surveys can be conducted via bill inserts or phone interviews. For bill inserts questions are answered on a 7 point scale. The % measurement is the % of respondents who were satisfied overall (response of 5 or above). For a phone survey, overall satisfaction is measured on a 5 point scale. The % measurement is the % of respondents who were satisfied overall (response of 4 or above).

Goal Green - 70% and above, Yellow - 55% to 70%, Red - Below 55%. Based on overall satisfaction and satisfaction with services. Goal Actual Survey Type Q1 70 % Q1 NA % Q2 70 % Q2 NA % Q3 70 % Q3 NA % Q4 70 % Q4 NA %

Quarterly Performance Summary No customer satisfaction survey was conducted this quarter.

Customer Satisfaction Insert Phone 94.9 2013 - 2018 100 96.6 90.0 91.8 89.0 90.9 93.8 89.6 87.8 87.0 88.0 10-Yr. Avg. 75 87% % Goal 70% 50

25

Customer Survey Results Survey Customer 0

Responsible Manager: Karen Miller

Data Provider: Jodi Henderson Report Date: 7/16/2018

2 135 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Telephone Service Level (Customer Service Queue) Outlook Definition Measures service level in the customer service queue, achieving a minimum of 70% of all calls answered within 30 seconds or less and 90% of calls answered in 120 seconds or less. This measure captures the timeliness of answering calls routed to the customer service queue, and the effectiveness of the department staff in terms of managing and monitoring the call queue.

How Performance Measure is Computed Service level reporting capabilities are provided by the Cisco phone system. The system measures the speed of answering all incoming customer service calls and maintains that data in a log that can be queried via the Cisco reporting application. The percentage of incoming calls that are answered within 30 seconds and 120 seconds will be displayed for each quarter, and the rating will be based on the quarterly results. The 12 month rolling average will be provided to reflect historical perspective.

Goal Answering at least 70% of incoming calls within 30 seconds or less and 90% of calls within 120 seconds or less, based on quarterly performance. A green rating will be achieved if both goals are met, a yellow rating if one goal is met and a red rating if neither goal is met for the quarter.

Calls Answered Within 30 Seconds Calls Answered Within 120 Seconds

Number Quarterly Rolling Quarterly Rolling Goal Goal of Calls Performance Performance Performance Performance Rating Q1 23,931 70% 72% 70% 90% 89% 88% Both goals met Q2 22,068 70% 74% 71% 90% 91% 87% One goal met Q3 Neither goal met Q4

Quarterly Performance Summary This performance measure received a green rating. The 30 second goal was exceeded at 74% for the quarter with over 16,000 calls answered within 30 seconds or less. The 120 second metric was achieved at 91%.

Also of note is a reduction of 4,113 calls during Q2 2018 in comparison to Q2 2016. In Q2 2016 CSRs handled 26,181 calls compared to 22,068 in Q2 2018. The decrease in call volume can be attributed to the implementation of NISC as customers have more payment options and access to real time account information.

Calls Answered within 30 Seconds Calls Answered within 120 Seconds by Customer Service by Customer Service 100% 100%

91% 90% 90% 89% 88% 87% 75% 75% 74% 72% 70% 70% 70% 71%

50% 50%

Goal Goal 25% 25% Quarterly Performance Quarterly Performance Rolling 12-Months Rolling 12-Months

0% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Responsible Manager: Christie McAloon

Data Provider: Lurii Blackwell Report Date: 7/11/2018

136 2018 Status Q1 Q2 Q3 Q4 Performance Measure Title Electronic Payments Outlook Definition Outlook Measures the percentage of total payments made to the District using electronic payment channels such as the SmartHub website and mobile application, IVR (Integrated Voice Recognition telephone payment system), Pay Now (one time payment website), Autopay or a customers' bank bill pay website. Increasing the number of electronic payments can lower costs by reducing the manual processes required to post payments and reduce errors associated with manual processes. Providing multiple electronic payment channels can lead to increased customer satisfaction and further the Districts efforts in customer engagement.

How Performance Measure is Computed The number of payments processed through Auto Pay, SmartHub website and Mobile Application, IVR system, Pay Now and bank websites will be compared to the total number of District payments processed during the quarter. A green rating will be assigned if 48% or more of total payments are made by electronic methods during the quarter; yellow rating for 45-47%, and red rating if the number of electronic payments is less than 45% of total payments during the quarter. This rating criteria may be refined as more history is developed and penetration levels are identified from similar utilities.

Rating 48%+ 45-47% <45% Goal Minimum of 45% of total payments will be made by electronic methods. Type of Payments Electronic Payments

Pay Now One Total Electronic Percentage SmartHub SmartHub Telephone Time Bank Website Payments Payments Electronic Auto Pay Website Mobile App System - IVR Payment Payment Q1 156,648 83,739 53.5% Q1 29,839 17,074 6,855 6,025 8,888 15,058 Q2 150,042 82,902 55.3% Q2 29,782 16,915 8,476 4,615 9,546 13,568 Q3 Q3 Q4 Q4

Quarterly Performance Summary The percentage of electronic payments increased by 1.8% in Q2 to 55.3%. While the SmartHub Website and Autopay remained nearly the same, the SmartHub Mobile App realized a 24% increase and the PayNow One Time Payment realized a 7% increase. The Telephone System IVR experienced a 23% decrease and Bank Website Payments continued to decrease in Q2 by 10%. With the percentage of electronic payments continuing to increase, the trend continues to show customers are moving towards the Benton PUD payment channels and away from their bank websites. 56% 55% Customer Electronic Payments 55.3% 54% 53.1% 53.5% 53% 52% 52.1% 51.6% 51% 51.0% 51.2% 50.2% 50% 49.6% 50.1% 49.5% 49% 48.2% 48% 47% Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018

Series1 Series2

Responsible Manager: Christie McAloon

Data Provider: Christie McAloon Report Date: 8/3/2018 4 137 2018 Status Q1 Q2 Q3 Q4 Performance Measure Title Outlook Service Order Time Tracking

Definition Once a new or altered service is eligible for energization*, the following items will be measured: 1) Length of time it takes the Operations Center to energize a new service once Engineering has transitioned the electronic service order to them in the Work Flow Management system (WFM), after the customer has met the criteria described by the * below. 2) Length of time it takes to set up the customer account in the Customer Care & Billing (CC&B) system for billing after Operations transitions it over to them from the WFM system. *Eligible for energization is based on the customer meeting the following criteria: trench has been inspected on an underground service, fees have been paid, L & I state approval has been received, and customer is ready for power. The District has no control over the time span to energize a new or altered service until the criteria has been met.

How Performance Measure is Computed - 1st Chart After Engineering has released all holds in the WFM system, it is transitioned to Operations. Performance is measured from the date received by Operations in WFM and the completion date of when the meter was set (energized).

How Performance Measure is Computed - 2nd Chart This part of the performance is measured by the Operations completed date to the date it was transitioned to CIS for customer account set-up. The last performance is measured by the date CIS receives the electronic Service Order from Operations, to the date CIS transitions the electronic service order to GIS. This shows how many days it took for CIS to set-up the customer account in CC&B before transitioning it to the GIS department. These queries are run from the Oracle database within the WFM system. Goal The goal is to energize new services and transition it to Customer Service within an average of 7 days after customer criteria has been met and new accounts set up in CC&B within an average of one week (5 days) after being transitioned from Operations to Customer Service.

Rating Criteria: Operations Customer Service Combined Rating 7 days or less 5 days or less Both green 8 - 9 days 6 - 7 days Either is yellow > 9 days > 7 days Either is red

Q1 Q2 Q3 Q4 In Days Goal Actual Goal Actual Goal Actual Goal Actual Connection (Chart 1) 7 NA 7 4 7 7 Ops to CIS (Chart 2) 5 NA 5 1 5 5 CC&B System (Chart 2) 5 NA 5 2 5 5 New services count 221 300

Quarterly Performance Summary During the second quarter of 2018, it took 4 days on average, for a new service to be energized once the customer had met all of the requirements. Additionally, it took 1 day for the Service Order to be processed and transitioned to Customer Service. The number of days it took Customer Service on average to set-up a new account in CIS and transition it to GIS for posting on the maps was 2 days. Our goals were met.

Days for Meter Connection Days from Meter Set to Customer Service and Days from New Service Accounts set-up in CC&B System to GIS 8 6

Meter Set (days) Goal Goal (5 days) ( 7 days) Meter Set to Cust Svc 6 Cust Svc to CC&B 4

4 Days Days

2 2

2 4 1

0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Responsible Manager: Mike Irving Report Date: 8/6/2018 Data Providers: Marietta Kostenko 5 138 Performance Measure Title 2018 Status Rate Comparisons Q1 Q2 Q3 Q4 Outlook Definition This indicator compares an average monthly bill for the District's current rates for Residential and Large General Service (LGS) to other utilities in the Northwest. A benchmarking base amount of 1,350 kWh is used for Residential customers. LGS customers energy use is 115,000 kWh and demand of 300kW.

How Performance Measure is Computed Gather current rates from 16 utilities throughout the Northwest and graph Benton PUD in relation to these utilities. Utilities selected for comparisons must purchase 60% or more of their power from BPA.

Goal Performance will be measured based on a quarterly rate comparison. A green rating will be assigned if the District's average monthly bill is below the median monthly bill, a yellow rating will be assigned if the District's average monthly bill is in the quartile above the median, and a red rating will be assigned if the District's average monthly bill is in the highest quartile.

Residential Large General Service Average Monthly Bill Average Monthly Bill

Goal Actual Goal Actual Q1 < $121 $116 Q1 < $8,041 $7,234 Q2 < $121 $116 Q2 < $8,041 $7,234 Q3 Q3 Q4 Q4 Quarterly Performance Summary During Q2 2018, the District's rates were below the median of comparable utilities, so a green rating was assigned to residential and large general service. None of the 16 benchmark utilities had rate actions in Q2 2018.

Residential Large General Service $160 $10,000 Goal Actual Goal Actual $140 $8,041 $8,041 $121 $121 $116 $8,000 $120 $116 $7,234 $7,234

$100 $6,000 $80

$60 $4,000

$40 $2,000 $20

$0 $0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Responsible Manager: Kevin White

Data Provider: Katie Homer Report Date: 7/24/2018

6 139 2018 Status Q1 Q2 Q3 Q4 Performance Measure Title Outlook Back Bills and Billing Corrections due to District Errors

Definition Back bills and bill corrections can have a significant impact on customers and on District staff. While some back bills are due to customer error (signing up for service at the wrong apartment or mislabeled meter bases), other back bills are preventable. Some examples of avoidable back bills include equipment failure that is overlooked for a period of time and results in a back bill of more than one month, or not transferring a low income discount when a customer moves. Only preventable back bills due to staff error, or those that were caused by equipment failure not detected in a timely manner, will be counted in this performance measure. When a significant back bill occurs, the rating could be assigned a yellow or red rating depending on the severity of the back bill. This rating would be assigned regardless of the number of back bills during the period. How Performance Measure is Computed On a quarterly basis, the number of back bills caused by the following reasons will be reported: defective meter, incorrect multiplier, service orders not processed in a timely manner, data entry error in CIS, missing low income discount, incorrect bill cycle, switched meters and data entry errors. Back bills are processed by the Billing Specialist and will be tracked in a spreadsheet that captures the number of back bills falling into these categories, and the nature of the back bill (i.e. customer error or District error). Each customer affected by a backbill will be counted as "1". For example, all customers affected by a District-caused meter switch will be counted. Goal

Less than 16 Number of Back Bills Number of Between 16 - 24 Goal Actual Bills Issued Greater than 24 Q1 137,993 <16 7

Q1 128,295 <16 7 Q3 <16 Q4 <16

Quarterly Performance Summary Seven preventable back bills occurred during Q2 2018. The following is a recap of each occurrence: 1)A customer was signed up in error at the wrong meter, 2) A senior discount was not transferred to a new address, 3 & 4) A CIS configuration error resulted in a refund, 5) A service order requesting removal of a security light was not processed in a timely manner resulting in a refund, 6) A service was not stopped and transferred to the landlord on the day requested, 7) A meter was installed after a fire but a service order was not processed in CIS

Number of Back Bills During Period Goal Actual 25

20 <16 <16 15

10 7 7

5

0 18 Q1 18 Q2

Responsible Manager: Christie McAloon Data Provider: Christie McAloon Report Date: 8/2/2018

7 140 2018 Status Q1 Q2 Q3 Q4 Performance Measure Title Outlook Unrestricted Reserve Level Definition Total Unrestricted Reserves include Minimum Operating Reserves and Designated Reserves, such as the Rate Stabilization Account, Power Market Volatility Account, Customer Deposits Account, Special Capital Account, and Bond Insurance Replacement Account, as defined in the District's Financial Policies adopted by Resolution No. 2313 and reported in the monthly financial statements. Beginning in 2015, Minimum Operating Reserves are defined as 90 days cash on hand.

How Performance Measure is Computed Compare approved annual budget Total Unrestricted Reserve balances as projected at quarter-end to the Minimum Operating Reserve balances projected for year-end.

Goal Maintain Total Unrestricted Reserves above the minimum level as defined by the District’s Financial Policies. A green rating will be assigned if Total Unrestricted Reserves are above 120% of the minimum level. A yellow rating will be assigned if Total Unrestricted Reserves are between 120% and 100% of the minimum level and below the Budget planned cash levels without the expectation of recovery by year-end. A red rating will be assigned if Total Unrestricted Reserves are below the minimum level or expected to fall below the minimum level without the expectation of recovery by year-end or if any borrowings of cash are utilized to cover operating expenses.

$ Millions Minimum Budget Actual Year-end Forecast Q1 $32.463 $52.454 $54.967 Date Jun. 2018 Q2 $32.463 $49.366 $53.581 Revenue Increase N/A Q3 $32.463 $51.851 Effective Date N/A Q4 $32.463 $46.649 Year-end Reserves $50.244

Quarterly Performance Summary Unrestricted reserves were $4.2 million higher than the 2018 Budget at the end of Q2. The main contributors to the higher than budgeted reserves are timing of capital expenditures and a good water year resulting in lower than budgeted net power costs (net power costs are budgeted at the 25th percentile). Unrestricted reserves decreased by nearly $1.4 million in Q2. Although capital expenditures were under budget, the nearly $3.2 million in capital expenditures contributed to the overall decrease in unrestricted reserves for Q2. In 2018, the District anticipates a $5.5 million drawdown of reserves, utilizing designated funds set aside from the 2016 bond issue to fund significant transmission and substation projects over the next few years. The projected drawdown of reserves may be below $5.5 million with a potential sizeable BPA Slice true-up credit and potential increased revenues with the warmer than average temperatures in late July and projected in early August.

Unrestricted Reserve Levels 60 55 50

45 40 35 ($Millions) 30 25

Budget 2018 Actual Financial Policy Minimum

Responsible Manager: Kevin White

Data Provider: Katie Homer Report Date: 7/24/2018

8 141 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Days Cash on Hand Outlook Definition Days Cash on Hand measures the number of days an enterprise can cover its operating expenses using unrestricted cash and investments and assuming no additional revenue is collected. Total Unrestricted Reserves include Minimum Operating Reserves and Designated Reserves, such as the Power Market Volatility Account, Customer Deposits Account, Special Capital Account, and Bond Insurance Replacement Account. This ratio is useful for measuring the relative strength of a utility's financial liquidity. It must be evaluated in conjunction with identified immediate risks to cash flow and compared to the number of days it takes for the utility to raise its rates and begin to receive additional revenues. How Performance Measure is Computed Days Cash on Hand is computed by multiplying the total unrestricted cash and investments by 365 and then dividing that result by the total operating expenses (excluding depreciation and amortization) on a rolling 12-month basis. Goal The District's current Financial Policies establish a Minimum Operating Reserve of 90 Days Cash on Hand and require financial plans to maintain Days Cash on Hand to achieve or maintain the Targeted Bond Rating (median of public power utilities). Targeted Days Cash on Hand shall consider relevant and recent benchmark data published by rating agencies for similar rated utilities. Moody’s published Days Cash on Hand ratio medians for distribution system utility in June 2014 and the range was 117 to 126. The Fitch Ratings "U.S. Public Power Peer Study" issued in June 2016 calculates a median of 140 days cash on hand for A+ rated retail utilities. Staff's recommended Targeted Days Cash on Hand is 120 days +/-10%. This measure will be rated "green" if the Days Cash on Hand is at or above the bottom of the recommended range (108 days), "yellow" if the Days Cash on Hand is between the Minimum Operating Reserve (90 days) and the bottom of the recommended range, and "red" if the Days Cash on Hand is lower than the Minimum Operating Reserve.

Medians Designated Reserves - Year-end Forecast Moody's Fitch District (A/Aa Avg) (A+) Target Actual Description DCOH Q1 122 140 108 to 132 152 Minimum Operating Reserves 90 Q2 122 140 108 to 132 147 Bond Insurance Replacement 7 Q3 122 140 108 to 132 Power Market Volatility 10 Q4 122 140 108 to 132 Special Capital 26 Customer Deposits 4 Jun. 2018 Year-end Forecast 137

Quarterly Performance Summary The District had 147 Days Cash on Hand (DCOH) at the end of Q2 2018 resulting in a green rating. Unrestricted reserves decreased by about $1.4 million, or about 5 DCOH, from Q1 2018. Although capital expenditures were under budget, the nearly $3.2 million in capital expenditures contributed to the overall decrease in unrestricted reserves. The 12-month rolling average operating expenses were nearly flat compared to Q1 2018 with an approximate increase of 0.1%. In 2018, the District is projecting a decrease of 18 DCOH, utilizing funds in the Special Capital Account that were set aside from the 2016 bond issue to fund significant transmission and substation projects over the next few years. The projected DCOH may be higher than 137 DCOH with a potential sizeable BPA Slice true-up credit and potential increased revenues with the warmer than average temperatures in late July and projected in early August.

180 155 160 143 154 147 136 137 140 140 127 132 120 122 108 100 80 60 40 20 0 Actual Actual Actual Actual Actual Actual 2018 2013 2014 2015 2016 2017 Q2 2018 Forecast Days Cash on Hand District Target Range District Target Range

Responsible Manager: Kevin White

Data Provider: Michelle Swanson 9 Report Date: 7/25/2018 142 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Actual Costs per kWh and COSA Comparison Outlook

Definition The Net Power Costs per kWh and COSA Comparison is a comparison of the actual Net Power Cost per kWh and the Net Power Cost per kWh as used in the COSA model. The Other Costs per kWh and COSA Comparison is a comparison of other costs and revenues per kWh and other costs and revenues per kWh as used in the COSA model. The COSA used in the calculation is the model that current rates are developed from. Components of other costs include operation and maintenance expenses, taxes (excluding municipal occupation taxes), net capital, debt service, broadband and miscellaneous revenues, and exclude depreciation. These comparisons serve as validation of the assumptions used in the COSA model which contributes to more accurate rate projections.

How Performance Measure is Computed The Net Power Cost per kWh and COSA Comparison is computed by taking the 12-month rolling net power cost and dividing by the 12-month rolling billed retail kWh as reported in the District's financial statements. The Other Costs per kWh and COSA Comparison is computed by taking the 12-month rolling other costs and dividing by the 12-month rolling billed retail KWh as reported by District financial statements. In addition, actual year-to-date calculations are provided for both comparisons.

Goal For a green rating, total costs per kWh on a rolling 12-month basis should be no higher than 5% of the COSA model. A yellow rating would be assigned if total cost variances were between 6% - 10% or a concerning trend is identified; and a red rating would be assigned if total cost variances were in excess of 10% from the COSA model or a significant concerning trend is identified.

Net Power Costs per kWh (cents) Other Costs per kWh (cents) Total Costs per kWh (cents)

Rolling Rolling Rolling 12- 12- 12- 2018 Rolling 12- YTD Months 2018 Rolling 12- YTD Months 2018 Rolling 12- YTD Months COSA Months Actual to COSA COSA Months Actual to COSA COSA Months Actual to COSA Q1 4.652 4.585 4.787 -1.4% Q1 2.851 2.491 2.894 -12.6% Q1 7.503 7.076 7.681 -5.7% Q2 4.652 4.551 4.423 -2.2% Q2 2.851 2.502 2.575 -12.2% Q2 7.503 7.053 6.998 -6.0% Q3 Q3 Q3 Q4 Q4 Q4

2018 COSA Net Power Cost $81,511,177 2018 COSA Total Costs $131,465,771 2018 COSA Other Costs $49,954,594 2018 COSA Retail kWh 1,752,042,624 Quarterly Performance Summary This measure compares costs per kWh to the 2018 COSA. At the end of Q2, the rolling 12-month total costs of 7.053 cents per kWh are 6.0% less than the COSA model. The rolling 12-month net power costs of 4.551 cents per kWh are 2.2% less than the COSA model. The rolling 12- month cost per kWh is lower primarily because the COSA is based on the 2018 Budget, which is conservatively set at the 25th percentile level, and we have experienced above average water over rolling 12-month period. The rolling 12-month other costs of 2.502 cents per kWh is 12.2% less than the COSA model. The rolling 12-month cost per kWh is lower because other costs include under runs in capital expenditures in Q3 2017 through Q2 2018. This measure is rated "green" at 6.0% below the COSA model.

Total Costs per kWh and COSA Comparison 9 2018 COSA YTD Actual Rolling 12-Months 8

7

6

5

7.50 7.68 7.50 4 7.08 7.00 7.05

(cents) kWh per Costs Total 3

2

1 Q1 Q2 Q3 Q4

Responsible Manager: Kevin White

Data Provider: Briana Herrington Report Date: 7/25/2018 10 143 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 O&M / Net Capital Outlook Definition This indicator measures the District's actual operations and maintenance (O&M) expenses vs. budget and the actual net capital expenditures vs. budget on a year-to-date basis. O&M expenses include transmission, distribution, broadband and all District internal costs and exclude power supply costs, taxes, depreciation, interest expense and other non-operating expenses. O&M and capital expenditures are a subset of all expenditures incurred by the District. While all costs are controllable by the District in the long-term, management has more direct control of these costs over the short-term and may more immediately impact District financial results through decisions in these areas.

How Performance Measure is Computed The official budget that is approved by the Commission for the calendar year will represent the standard against which actual results are measured. The original budget may be amended by the Commission during August of each year. Year-to-date O&M expenses and net capital expenditures will be compared to budget at the end of each quarter. Goal Meet the year-to-date budget projections. in millions O & M Net Capital YTD % of YTD % of YTD YTD Original Total Original Total Actual Actual Budget Budget Budget Budget Q1 $5.704 $6.277 28% Q1 $5.151 $3.031 17% Q2 $11.394 $11.998 53% Q2 $9.545 $5.847 32% Q3 Q3 Q4* $22.508 Q4* $18.290 * % of total budget * % of total budget Quarterly Performance Summary The numbers included in this calculation are based on premliniary financial data. O&M expenses of $12 million through the second quarter of 2018 are 5% or $604k above the budget primarily due to increased labor and benefits to O&M verses capital ($220k) and NESC compliance District's expense ($282k) Preliminary net capital expenditures of $5.8 million through the second quarter are below the YTD budget by about $3.7 million (39%), primarily due to timing of payments for capital projects, transformers, and cable replacement. This measure is rated green for the second quarter. Even though O&M is above budget, overall labor expense is below budget.

O & M Net Capital Actual vs. Budget Actual vs. Budget

$21 22.5 $18 YTD Actual YTD Actual 18.3

$18 $15 YTD Original Budget YTD Original Budget $15 $12 $12 $9 12.0 11.4 9.5 $9 $6 $6 5.8 Expenses (in millions) 6.3 5.7 5.2

Expenses (in millions) $3 $3 3.0 $0 $0 Q1 Q2 Q3 Q4* Q1 Q2 Q3 Q4*

Responsible Manager: Kent Zirker Data Provider: Michelle Swanson Report Date: 7/20/2018 11 144 2018 Status Performance Measure Title Q1 Q2 Q3 Q4

O&M Costs per Customer Outlook

Definition This performance measure will track the District’s non-power operating and maintenance (O&M) costs per customer, excluding broadband and reimbursable mutual aid costs and including bad debt expense. O&M expenses are a subset of all expenditures incurred by the District. While all costs are controllable by the District in the long-term, management has more direct control of O&M costs over the short-term and may more immediately impact District financial results through decisions in these areas.

How Performance Measure is Computed Actual O&M expenses, excluding broadband and reimbursable mutual aid costs and including bad debt expense, as reported in the financial statements will be divided by the average number of active service agreements on a rolling 12-month basis. Results at the end of each quarter will be compared to the 2018 target of $409 per customer. The 2018 target was developed from the 2018 budget of $405 per customer incremented by $200,000 or $4 per customer to allow for variations in the level of internal labor charged to capital projects v. expense. A rating of green will be assigned if the O&M costs per customer are within 2% of the target; a rating of yellow will be assigned if the O&M costs per customer are more than 2% but less than 3% higher than the target; a rating of red will be assigned if the O&M costs per customer are more than 3% higher than the target.

Goal Maintain or decrease the O&M costs per customer as compared to the 2018 target of $409 per customer.

O & M 2018 2018 Stated (1) Year 2018 Target Actual Information Only Dollars Dollars Q1 $409 $413 Benton PUD - CY 2016 Actual*(2) $389 $413 Q2 $409 $414 Benton PUD - CY 2017 Actual* $389 $401 Q3 $409 Benton PUD - CY 2018 Budget* $409 $409 Q4 $409 APPA - 2015 West median(3) $561 $613 APPA - 2016 West median(3) $584 $620 * includes bad debt expense (1) Escalated at 3% per year (2) 2016 actual reflects significant one-time reductions and deferrals. (3) Selected Financial and Operating Ratios of Public Power Systems survey (Note: accounting for payroll taxes and benefits may vary among utilities) Quarterly Performance Summary The numbers included in this calculation are based on preliminary financial data. O&M costs per customer on a rolling 12- month basis at the end of the second quarter were $414, which is 1.2% above the target amount. In addition, the District continues to be well below the APPA West median of $620.

O & M Costs per Customer 2016 APPA $600 West $550 Median 2018 Target 2018 Actual - Rolling 12 Months $500

$450 2018 $400 $414 Target $409 $413 $409 $409 $409 $350

$300

$250

$200 Q1 Q2 Q3 Q4

Responsible Manager: Kent Zirker Data Provider: Michelle Swanson Report Date: 7/20/2018

12 145 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Accounts Receivable Collections Outlook

Definition Percentage of accounts receivable that are paid within 60 days after billing.

How Performance Measure is Computed The percentage is calculated by dividing the amount of accounts receivable under 60 days by the total amount of accounts receivable for electric customers. This measure does not include miscellaneous accounts receivable, such as power billings or cost reimbursements. Goal The goal is to increase the percentage of accounts receivable under 60 days to a level of 90% or more of the total accounts receivable. A green rating will be achieved if the actual results are at 90% or higher; a yellow rating will be assigned if the actual results are between 85% to 90%; a red rating will be assigned if the actual results are below 85%. Goal Actual Q1 90% Q1 94% Q2 90% Q2 95% Q3 90% Q3 Q4 90% Q4

Quarterly Performance Summary This performance measure is rated green for the quarter. While end of the quarter results were at 95%, April and May were at 93% and 94% respectively.

Percentage of Accounts Receivable Under 60 Days 100%

95%

90% Goal - green rating

85% Limit - yellow rating

80%

Responsible Manager: Christie McAloon

Data Provider: Kent Zirker Report Date: 8/2/2018

13 146 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Safety Outlook Definition The measure will benchmark reportable injuries or illnesses as recorded on the OSHA 300 log. The summary will specify incidents and look for trends and opportunities to correct through training, retraining, work procedure changes, engineering controls or other reasonable actions to address. How Performance Measure is Computed We will use the OSHA Form 300A "Summary of Work Related Injuries and Illnesses" for safety benchmarking against the Bureau of Labor Statistic numbers published each year. The basic requirement for recording an illness or injury is if it results in any of the following: death, days away from work, restricted work or transfer to another job, medical treatment beyond first aid, loss of consciousness, or a significant injury or illness diagnosed by a physician or other licensed health care professional. The incidence rates are calculated according to the following formula: (N/EH) x 200,000 where N = number of incidents for the previous 12-months and EH = total hours worked by all employees during the same 12-month period. The 200,000 is the constant for 100 full-time workers working 40 hours per week for 50 weeks per year. Benchmark (not to exceed) The benchmark is to be less than the Total Recordable Cases as published annually by the Bureau of Labor Statistics. This figure changes annually as a result of OSHA 300 log reports. This measure will be rated green if BPUD calculated reportable incidents are below 80% of the benchmark, yellow if they are between 80%-120% of the benchmark, and red if they are over 120% of the benchmark or as a result of a serious injury and/or Labor and Industries citation. Benchmark BPUD Q1 5.3 1.3 Q2 5.3 1.3 Q3 5.3 Q4 5.3 Quarterly Performance Summary The following two incidents were reported on the OSHA 300 form in the last 12 months (July 1, 2017 - June 30, 2018): - 05.30.18: Line Foreman: Sprained left ankle when stepped into a hole in long grass - this resulted in a lost time injury - 01.05.18: Payroll Specialist II: suffered broken ribs due to slip and fall - this resulted in a lost time injury

SAFETY Benchmark BPUD 7 Limit - red rating 6

5 Limit - yellow rating 4

3 5.3 5.3 5.3 5.3 2 INCIDENT RATE

1 1.3 1.3 0 Q1 Q2 Q3 Q4

Responsible Manager: Steve Hunter

Data Provider: Diane Schlekewey Report Date: 7/27/2018

14 147 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Training & Development Attendance Outlook

Definition This performance measure reflects the results achieved in meeting the training and development attendance goals for the quarter. The training goal includes those Leadership and Workforce courses approved by the Leadership Team. Under utilization wastes the resources of the learning staff member (LSM) (preparing for courses that are not delivered), causes rework (having to facilitate make up classes) and wastes the purchase of participant materials. The goal is to ensure the majority of scheduled participants attend the training, while allowing flexibility for those on approved medical leave of absence. Lack of meeting the attendance goals may reflect other legitimate schedule conflicts, ineffective course frequency or length, priority-setting improvements needed of participants and/or their managers, or other factors that may interfere with the training goal for the quarter.

How Performance Measure is Computed The target is derived each quarter based on the District Leadership and Workforce training goals approved by the Leadership Team. It is the percentage of learning hours completed against the scheduled learning hours, with the goal minimum set at 90% of the required training participants' learning hours to achieve a green rating. A yellow rating reflects attendance at 80 - 89.99% of required participants, and a red rating reflects below 80% of required participants. Goal Achieve 90% of training goal minimum (required attendees).

Training Hours Training Hours % to Goal Goal Completed Color Rating Q1 357 357 100% 90% + Q2 33 32 98% 80.00-89.99% Q3 < 80% Over 105% Q4 Year Total: 390 389 100% Quarterly Performance Summary During the second quarter of 2018, 100% of scheduled learning hours were completed for six new hires (Lineman Pre-Apprentice, Substation Electrician - Journeyman, Lineman - Journeyman, Engineering Intern and two Customer Service Representative I On-Call); The following required trainings were scheduled for and attended during the quarter resulting in an overall green rating with 98% attendance: Scheduled Attended Attendance % HR Policies 6 6 100% Records Policy 3 3 100% Ethics and Conduct 6 6 100% Workplace Violence Prevention 6 6 100% Customer Service Sensitive Information 26 25 96%

Training & Development Learning Hours 500 450 400 350 389 389 300 357 357 250 200 150 100 50 33 32 0 Q1 Q2 Q3 Q4 Annual Statistics: District Training Goal Training Hours Completed

Responsible Manager: Melina Wenner Data Provider: Kayla Sidwell Report Date: 7/14/2018

15 148 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Hiring Efficiency - "Time to Fill" Outlook Definition The purpose of assessing "Time to Fill" is to measure the time in calendar days from approval of a job requisition up to the existing employee acceptance of a new job offer or the date a candidates background screening is cleared by the Manager of Human Resources. Human Resources will use this information to determine and report to District management areas of strength and areas that may need adjustment to ensure recruitment process timelines are not extended to unreasonable lengths.

How Performance Measure is Computed This measure shows the average number of days to fill a position by EEO category, for both non-bid and bid jobs, on a monthly and annual basis. Goal Green ratings will be issued when all the bid jobs filled in the measured quarter average 28 days or less and for non-bid jobs when the average filled is 60 days or less. Yellow ratings will be issued when the days to fill for bid jobs are 29 to 35 days and for non-bid jobs when the days to fill are 61 to 74 days or when either the bid or non- bid job rating is green and the other is yellow. An overall red rating will be issued when either the bid or non-bid rating is red. The rating for Outlook will be based on the Age of Open Positions, using the previously noted measurements, and estimation of additional time to fill. (Note: Annual numbers are provided for informational purposes only). Quarterly Performance Summary During the second quarter of 2018, the District successfully filled nine (9) posted positions. The non-bid positions filled were 1 - Engineering Technician, 2 - On Call Customer Service Representatives, 1 - Business Intelligence/ETL Developer, 1 - Distribution Design Technician, and 1 - Lineman Journeyman. The second quarter rating for non-bid positions is green. The bid positions filled were 1 - Customer Service Specialist (Prosser), 1 - Customer Service Representative II (Kennewick), and 1 - Customer Service Representative II (Prosser). The second quarter rating for bid positions is green. At the conclusion of the second quarter, the District had six (6) positions remaining open: 1 - Lineman Journeyman (Prosser), 1 - Lineman Journeyman (Kennewick), 1 - Applications Analyst I or II, 1 - Maintenancework II, 1 - Supervisor or Manager of Risk Management & Treasury Operations, and 1 - Customer Service Representative I or II (Prosser). The outlook is red as the Lineman Journeyman position in Prosser had to be re-posted and it is expected to be difficult to find applicants. Five of the six posted positions are in the interview and/or selection process and are offers have been made or are expected to be made within the first 2 weeks of the second quarter.

Quarter 2: Non-Bid Positions Filled Quarter 2: Bid Positions Filled Average Days to Fill by EEO Category Average Days to Fill by EEO Category 100 40 Administrative Support 75 Workers 30 Administrative Support 50 Craft Workers 20 Workers

25 40 47 50 Days to Fill 10 Days to Fill 30 Professionals 8 0 0 Positions Filled: 6 Average Days to Fill: 43 Technicians Positions Filled: 3 Average Days to Fill: 8

Annual Average Time to Fill Non-Bid Positions Annual Average of Time to Fill Bid Positions (Year to Date) Administrative Support (Year to Date) 100 Workers 40 Craft Workers 75 30 Administrative 50 Laborers & Helpers 20 Support Workers 65 25 51 48 50 10 40 Professionals Days to Fill Days to Fill 8 0 0 Technicians Positions Filled: 11 Average Days to Fill: 49 Positions Filled: 3 Average Days to Fill: 8

Age of Open Position as of 6/30/2018

80 60 96 40 44 20 51 Days Open 3 36 18 1 0 Lineman-Journeyman Applications Analyst I or Maintenanceworker II Lineman-JM (Prosser) Supv/Mgr of Risk Mgmt CSR I or II (Prosser) II and Treasury Ops

Responsible Manager: Melina Wenner Data Provider: Karen Dunlap Report Date: 7/10/2018

16 149 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Day Ahead Power Price vs. ICE Index Outlook Definition Measures the difference between the daily weighted average unit price for actual purchase and sale transactions and the Intercontinental Exchange (ICE) Firm Mid-Columbia Price Index for the same day. This measure evaluates the effectiveness of the District in executing transactions relative to the average market price for all transactions for a particular day. The ability to transact at close to the daily ICE index price is important for the District. The District from time to time enters into financial transactions that contain settlement provisions based upon ICE index prices. The efficacy of hedging with financial transactions is diminished if the District is unable to execute transactions near the index price. Additionally, the District is required to compensate the other Packwood purchasers for non-firm energy production at a price indexed to the daily ICE index price.

How Performance Measure is Computed A single $/MWh figure will be calculated for each calendar quarter that reflects the difference between the actual weighted average price of all transactions executed by the District and the weighted average price if all transactions had been priced at the daily ICE Index prices. Purchase and sale transactions will be melded into this single figure. Purchases made at less than index, and sales made at greater than index, will be treated as positive values. Purchases made at greater than index, and sales made at less than index, will be treated as negative values. If the weighted average price of all District transactions during a calendar quarter exactly equals the weighted average ICE index price, the performance measure will equal $0/MWh. To the extent the District sells energy above index or purchases energy below index, the performance measure will be greater than $0/MWh. To the extent the District sells energy below index or purchases energy above index, the performance measure will be less than $0/MWh.

Goal Unit prices equal to daily ICE price index. A green rating will be assigned if actual unit price is above index or less than $.10 below index; a yellow rating if actual is below index by $.11 - $.30; a red rating if actual is more than $.30 below index. Volume (MWh) Avg Price vs Index Goal Actual Purchase Sale Purchase Sale Q1 $0.00 $1.17 Q1 12,901 195,788 0.19 1.23 Q2 $0.00 $0.98 Q2 25,095 133,120 0.00 1.17 Q3 $0.00 Q3 - - 0.00 0.00 Q4 $0.00 Q4 - - 0.00 0.00 Annual $0.00 $ 1.09 YTD 37,996 328,908 0.06 1.21 Quarterly Performance Summary TEA day ahead trading continues to outperform the market and add value to the District. Ending the quarter above index by a weighted average of $0.98, resulting in a green rating for this performance measure.

Performance vs. ICE Index $1.70 $1.50 Actual $1.30 $1.17 $1.10 $0.98 $0.90 $0.70 $0.50 $0.30 $0.10 $0.00 $0.00 Price ($/MWh) ($0.10) ($0.30) ($0.50) Variance in Day Ahead Variance in Day PowerAhead Q1 Q2 Q3 Q4

Responsible Manager: Kevin White Data Provider: Alex Wong/TEA Report Date: 7/31/2018

17 150 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Secondary Market Sales Outlook

Definition Measures how well the District forecasted monthly average market price, sales volume and surplus sales revenue obtained for MWh's sold to other utilities, brokers, and power marketers during the fiscal quarter. The measure also evaluates the effectiveness of the District's management of power supply risk through the use of long-term contracts, hedging, forward sales, and financial derivatives. Surplus sales revenue earned from secondary market sales is a critical element of the District's net power costs. How Performance Measure is Computed Quarterly status based on sum actual monthly secondary sales revenue versus the sum of budgeted monthly secondary sales revenue. Outlook is based on the likelihood of meeting annual budgeted secondary sales revenue by comparing cumulative year to date secondary sales revenue with updated sales revenue projection for remaining portion of the year. Goal Achieve secondary sales revenue equal to or greater than the budgeted secondary sales revenue. A green rating will be assigned if actual secondary sales revenue is equal to or less than 10% below budgeted secondary sales revenue; a yellow rating if price is 11% - 19% below budgeted secondary sales revenue; a red rating if price is 20% or more below budgeted secondary sales revenue. $35 Monthly Market Prices $30 $25 $20 $15 $10 $5 $0 Jul Jan Jun Oct Feb Apr Sep Dec Aug Nov Mar May

Budget Actuals

Quarterly Performance Summary Market prices were below budget in Q2 but surplus sales volume were higher than expected resulting in an additional $609K secondary market sales over budget during Q2. The District observed an 80% increase in surplus sales volume over what was budgeted for the quarter due to increased precipitation and lower than forecasted retail loads from mild weather. The increase in sales volume offset an 18% decrease in average market price resulting in quarterly total surplus sales revenues of $1,803,312, which is 51% above the second quarter forecast of $1,194,585. The District received a green rating for the quarter. With updated projections based on increased water supply and projected market conditions, the District expects to observe $19,111,288 in surplus revenues, 47% above the adopted budget of $13,007,988, receiving a green rating for the outlook. The District continues utilizing hedging to mitigate market price and water supply fluctuations. $2.5 $8.0 Secondary Market Sales $7.0 $2.0 $6.0

$1.5

$5.0

$4.0 $1.0 $ (Millions) $ (Millions) $3.0 $0.5 $2.0

$0.0 $1.0 Jul Jan Jun Oct Apr Feb Sep Dec Aug Nov Mar May $0.0 Budget Actuals YTD Budget YTD Actual

Responsible Manager: Kevin White Data Provider: James Dykes 18 Report Date: 7/31/2018 151 2018 Status Q1 Q2 Q3 Q4 Performance Measure Title Outlook Conservation Plan Bi-Annual Actuals/Target

Definition

The District will monitor our quarterly conservation accomplishments and target levels in compliance with the Energy Independence Act (EIA). The District's ten-year cost-effective conservation resource potential and 2018-2019 biennial target was developed to meet the District's conservation objectives and was approved by Commission on October 24, 2017. The objective is to meet or exceed the Districts 2018-2019 energy savings biennial target. Program savings are from District conservation programs acheived specifically in our service area. Northwest Energy Efficiency Alliance (NEEA) savings include codes and market transformation acheived in our service area.

How Performance Measure is Computed Actual Savings are acquired through the implementation of energy efficiency measures in the District's conservation programs along with savings from NEEA. The savings value of these measures is determined by the Northwest Power and Conservation Council.

Goal Ensure the District is on track to meet the 2018-19 conservation biennial target. Green rating is meeting or exceeding the target/goal to date. Yellow rating is from 0 to -5%, and red rating is -5% or more.

Q1 Q2 Q3 Q4 Cumulative Cumulative Cumulative Cumulative 2018 Target Actual Target Actual Target Actual Target Actual Programs 0.33 0.41 Carryover 0.56 0.56 NEEA 0.06 0.13 Total aMW 0.84 0.96 1.13 1.10 1.41 1.69

Q1 Q2 Q3 Q4 Cumulative Cumulative Cumulative Cumulative 2019 Target Actual Target Actual Target Actual Target Actual Programs Carryover NEEA Total aMW 1.97 2.25 2.53 2.81

Quarterly Performance Summary Although the Q2 target was narrowly missed, numerous commercial and industrial projects are in progress and there is currently 0.57 aMW scheduled to be completed in the 2018 calendar year. Updated NEEA numbers indicate market transformation savings will be higher than originally projected. Outlook remains green.

Conservation 2-year EIA Cumulative Target/Actual 3.00 NEEA Actual Programs Carryover Actual 2.81 Carryover Target CPA Target 2.53 2.50 2.25

1.97 2.00 1.69

1.50 1.41

1.13 1.10 aMW 0.96 1.00 0.84

0.50

0.00

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019

Responsible Manager: Chris Johnson

Data Provider: Terry Mapes Report Date: 7/30/2018 19 152 2018 Status Performance Measure Title 3 - 9 s 4 - s9 5 - 9 s All Green= Q1 Q2 Q3 Q4 99.9=G 99.95=G 99.999=G Any Yellow= 99.8=Y 99.90=Y 99.995=Y Any Red= Broadband Network Reliability 99.5=R 99.85=R 99.950=R Outlook Definition We will be measuring four areas of network reliability: NoaNet (Regional Network), SONET (Fiber Backbone), Ethernet (Customer Fiber) and Wireless. The measure of value and performance of a network is determined by the reliability of the network and at the extent to which it can maintain an adequate level of "up" time and service to the end users. The District's Broadband network consists of four segments and each of these segments will be measured independently as a part of the total network reliability. The measurements and tracking process will allow the Broadband technical and management staff to determine the level of service and value of the network to the Retail Service Providers and the end users they serve. The results of the measurements will be part of the rate setting structure, level of service guarantees provided to RSPs and performance of staff. How Performance Measure is Computed Target performance for backbone and upstream to NoaNet is to operate at 5-9's reliability, laterals at 4-9's reliability, and wireless at 3-9's reliability. Goal Maintain an adequate level of "up" time and service to end users. Regional Network Fiber Backbone Customer Fiber Wireless Goal Actual Goal Actual Goal Actual Goal Actual Q1 99.999% 100.000% Q1 99.999% 100.000% Q1 99.99% 99.99% Q1 99.9% 99.9% Q2 99.999% 100.000% Q2 99.999% 99.982% Q2 99.99% 100.00% Q2 99.9% 99.9% Q3 99.999% Q3 99.999% Q3 99.99% Q3 99.9% Q4 99.999% Q4 99.999% Q4 99.99% Q4 99.9% Quarterly Performance Summary This performance measure is rated yellow for 2nd Quarter due to a single significant fiber optic cable outage lasting nearly nine hours caused by a fire located near Benton City. The outage on was on a fiber optic cable that serves as the District's primary data communication path. To mitigate this in the future, an alternate fiber path around Benton County is actively being contructed in Q3 2018.

Regional Network Fiber Backbone

100.000% 100.000% 99.998% 99.996% 99.996% 99.992% 99.994% 99.988% 99.992% 99.984% 99.990% 99.980% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Goal Actual Goal Actual

Customer Fiber Wireless

100.00% 100.0% 99.98% 99.8% 99.96% 99.6% 99.94% 99.4% 99.92% 99.2% 99.90% 99.0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Goal Actual Goal Actual

Responsible Manager: Chris Folta Data Provider: Shawn Rose Report Date: 8/2/2018

20 153 2018 Status Performance Measure Title Q1 Q2 Q3 Q4 Energy Loss Percentage Outlook Definition Energy Loss Percentage is the ratio of energy losses within the electrical system to total load as reported by BPA. This ratio measures how much energy is lost in the District's electrical system and is an indicator of the efficiency of the electrical system. It represents the percentage of electrical energy that is bought or generated by the utility, but is not available to be sold to customers. Losses include both physical losses that occur in the distribution system and metering and billing cycle losses.

How Performance Measure is Computed This measure is computed by dividing the excess of BPA reported load over billed retail kWh on a rolling 12-month basis.

Goal Industry Standard: The industry standard of 3.40% represents the median for 19 utilities with 50,000 to 100,000 customers in the 2016 APPA survey "Selected Financial and Operating Ratios of Public Power Systems" published in December 2017. Using the median as our benchmark provides a stable and relevant reference given the diversity of BPUD's distribution system and the fact we serve both urban and rural areas. Rating: A green rating will be assigned if actuals are no more than one percentage point above the Industry Standard. A yellow rating will be assigned if actuals are between one and two percentages points above the Industry Standard, and a red rating will be assigned if actuals are more than two percentage points above the industry standard.

BPUD Industry BPA Billed Billed Standard Actual (aMW) (aMW) Loss (aMW) Q1 3.40% 3.54% 204.3 197.1 7.2 Q2 3.40% 3.51% 206.2 199.0 7.2 Q3 3.40% Q4 3.40% Quarterly Performance Summary This measure is rated green for the second quarter because the actual energy loss percentage of 3.51% was less than one percentage point above the industry median for utilities in our customer size class.

8 Energy Loss Percentage 6% Industry Standard Actual

5%

4%

3%

3.40% 3.54% 3.40% 3.51% 3.40% 3.40% Energy Energy Losses (%) 2%

1% Q1 Q2 Q3 Q4

Responsible Manager: Evan Edwards Data Provider: Kent Zirker Report Date: 8/2/2018

21 154 2018 Status Q1 Q2 Q3 Q4 Outlook Performance Measure Title Electric Reliability Definitions SAIFI - System average interruption frequency index SAIFI = Σ Number of Customer Interruptions Indicates how often the average customer experiences Number of Customers Served a sustained (greater than or equal to 5 minutes) interruption.

SAIDI - System average interruption duration index SAIDI = Σ Customer Interruption Duration Indicates the total duration of interruption for the Number of Customers Served average customer during a predefined period of time.

CAIDI - Customer average interruption duration index CAIDI = Σ Customer Interruption Duration = SAIDI Indicates the average time required to restore service. Σ Number of Customer Interruptions SAIFI

MajorThis Eventperformance Day - A day measure in which the is daily currently system SAIDI unavailable. exceeds a Major This Event measure Day threshold is being value evaluated (TMED). Statistically, days exceeding the TMEDand isthreshold targeted are daysto return on which in the 2018. energy delivery system experienced stresses beyond that normally expected. How Performance Measure is Computed Interruption information is logged into the District's Outage Management System (OMS), either automatically from the District's SCADA system or manually. The OMS calculates and reports outage statistics for interruptions lasting longer than five minutes, including Major Event Days and excluding planned outages and customer problems. Goal Compare recent 12-month performance to a goal equal to a four year (2005-2008) historical average. The performance rating will be "green" if the index is up to 20% above the goal, "yellow" if between 20% and 40% above and "red" if greater than 40% above the goal. Quarterly Performance Summary Over the 12-month time period from January-2017 to December-2017, SAIFI of 0.47 interruptions is below the goal of 0.5 resulting in a green rating. SAIDI of 63.3 minutes is above the goal of 60, but less than 120% of the goal (72) resulting in a green rating. CAIDI of 134.4 minutes is above the goal of 120, but less than 120% of the goal (144) resulting in a green rating. The 12 month statistics for SAIFI, SAIDI, and CAIDI have shown increases. Concern has been raised that the “stock” reporting in OMS is not filtering outage data to align with our reporting metrics. The data has been manually recalculated for 2017. Going forward either custom reports will be incorporated into NISC or the reporting will be calculated in Tableau.

SAIFI SAIDI Monthly rolling 12-months Monthly rolling 12-months 0.80 120

0.70 100

0.60 80 0.50 0.50 60 0.40 40

Minutes 32.1 0.30 20 Interruptions 0.20 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Goal < 0.5 Interruptions Goal 2017 2018 Goal < 60 Minutes Goal 2017 2018

CAIDI Monthly rolling 12-months 180 160

140 120 (Placeholder for future) 100 Minutes 80 60 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Goal < 120 Minutes Goal 2017 2018

Responsible Manager: Evan Edwards Data Provider: Dax Berven Report Date: 8/1/2018

22 155 2018 Status Q1 Q2 Q3 Q4 Outlook Performance Measure Title Electric System Outages Definitions Outage - Interruption of electrical service, for greater than or equal to 5 minutes, to one or more customers, excluding planned outages. Cause - The reason the outage occurred. Region - The geographic zone, as defined by the District's Geographical Information System, where the outage occurred. Customer - A metered electrical service point for which an active bill account is established at a specific location. Customer Minutes Out - The number of customers interrupted in an outage multiplied by the duration of the outage in minutes.

How Performance Measure is Computed Outage information is logged into the District's Outage Management System (OMS). Every outage that occurs has an associated cause, region, number of customers affected and the number of customer minutes out. The outage data is queried from the OMS database using reporting tools and entered into a spreadsheet for summation and graphing purposes. The data is reported for a rolling 12-month time period, which removes any seasonal variation when looking for trends. This data is similar to the data used for calculating the quarterly performance measure titled "Reliability Indices". The reliability indices are useful as a performance indicator and for benchmarking purposes, but they do not provide the detail required to fully understand what factors are influencing reliability. This performance measure is currently unavailable. Due to the implementation of a new customer Goal Toinformationidentify electric systemoutage (NISC) trends this by cause measure and region is being over a 12-month evaluatedtime period. and is Trends targetedin the negative to return direction inwill 2018.result in a yellow rating; otherwise a green rating will apply. No red ratings will be used.

Quarterly Performance Summary

Rolling 12 Months Reported Quarterly Outage Statistics 2018-Q2 2018-Q3 2018-Q4 2019-Q1 2019-Q2 Overall Summary: These outage indices were paused at the initial rollout of NISC’s OMS software to allow for data conversion. It was Outage Count 961 - - - - decided to extend this pause to allow the analysis window to move past the time period where crews were being trained on data entry Customers Out 24,939 - - - - into the new software. As such 2018-Q2 is being presented without a comparison to previous 12 month windows. As future quarters Customer Minutes Out 167,900 - - - - are added comparisons to previous 12-month windows will resume.

Outages by Cause 2018-Q2 - - - - Cause Summary: See overall summary above. Equipment 344 - - - - Animals 165 - - - - Weather 31 - - - - Foreign Interference 46 - - - - Vegetation 91 - - - - Undetermined 284 - - - - Total 961 0 0 0 0

Outages by Region 2018-Q2 - - - - Region Summary: See overall summary above. East Kennewick 393 - - - - West Kennewick 275 - - - - Benton City & Prosser 237 - - - - River & Hanford 56 - - - - Total 961 0 0 0 0

Responsible Manager: Evan Edwards Data Provider: Dax Berven Report Date: 8/1/2018

23 156 2018 Status Performance Measure Title 1 Y or All GreenG = = Q1 Q2 Q3 Q4 2 Y or 1 R = Enterprise Application Reliability 2 R = Outlook Definition Measures the reliability of seven enterprise software applications: HPRM (document management system), iVUE (customer information system, financials and payroll, outage management system, document vault, payments, outbound IVR and work scheduling), Epicor HCM (human resources management system), GIS (mapping system), SCADA (electrical system monitoring and operations system) and AMI (automated metering system). We will also measure the realiability of the databases that support these applications. The measure of value and performance of software applications is determined by the reliability and maintaining an adequate level of "up" time and service to the end users. The measurements will allow management staff to determine the level of service and value of each application to the end users they serve.

*note for the applications to be considered available, all parts must be available as defined by each system owner

24x7 Applications* Business Hour Applications* Downtime Rating Downtime Rating 0-13 mins Green 0-6 mins Green 14-25 mins Yellow 10-37 mins Yellow > 26 mins Red > 37 mins Red *iVUE, GIS, SCADA, AMI, Databases *TRIM, HRMS

How Performance Measure is Computed Target performance for each application has been defined by the respective System Owner and is indicated in the "Goal" columns below. For HPRM and HRMS, the performance is based on Business Hours and iVUE, GIS, SCADA, AMI and the databases are based on 24x7 availability. Each system has a Scheduled Maintenance Window for allowed after hours maintenance that will be excluded from the measurements.

Goal Maintain an adequate level of "up" time and service to end users.

Quarterly Performance Summary This performance measure is rated red for 2nd Quarter due to iVUE and the GIS experiencing significant downtime. Parts of the cloud services that are required for iVUE to be fully functional were down for 260 minutes during the quarter, of which 198 only the SecurePay IVR was down, the other 62 minutes other applications including the Payment Gateway and SmartHub were down. During this quarter the software licenses for the GIS software expired. District staff upgraded the licenses that we could, NISC needed to assist with upgrading the licenses for one component. District staff were unable to use online maps during the time it took NISC support to locate where the license key needed to be updated, and perform a reboot of the server and services to restore the application for use.

System Goal Q1 Q2 Q3 Q4 HPRM 99.99% 100.00% 100.00% iVUE 99.99% 99.90% 99.80% HRMS 99.99% 100.00% 100.00% GIS 99.99% 100.00% 99.37% SCADA 99.99% 100.00% 100.00% AMI 99.99% 100.00% 100.00% Databases 99.99% 100.00% 100.00%

Responsible Manager: Chris Folta Data Provider: Jennifer Holbrook Report Date: 6/30/2018

24 157 2018 Status Performance Measure Title 1 Y or All G = Q1 Q2 Q3 Q4 2 Y or 1 R = Infrastructure Component Reliability 2 R = Outlook Definition Measures the reliability of eight key Infrastructure components: Network (Core business computer network), NoaNet Service (Outside Internet provider), Kennewick-Prosser communications link, TEA/SCADA Network (The Energy Authority and SCADA communications), SAN (Storage Area Network), VDI (Virtual Desktop Infrastructure), Phones (Phone System), and Exchange (Email System). The measure of value and performance of infrastructure components is determined by the reliability and maintaining an adequate level of "up" time and service to the end users. The measurements will allow management staff to determine the level of service and value of each application to the end users they serve. Below is a chart to explain the thresholds in minutes of unplanned downtime.

24x7 w/99.9% uptime 24x7 w/99.95 uptime 24x7 w/99.99 uptime Downtime Rating Downtime Rating Downtime Rating 0-130 mins Green 0-65 mins Green 0-13 mins Green 131-258 mins Yellow 65-129 mins Yellow 14-25 mins Yellow >= 259 mins Red >= 130 mins Red >= 26 mins Red *Network, NoaNet, TEA-SCADA *Phones *Kenn-Pross, SAN, VDI, Exch

How Performance Measure is Computed Target performance for each component has been defined by the respective System Owner and is indicated in the "Goal" column below. All components are based on 24x7 availability.

Goal Maintain an adequate level of "up" time and service to end users.

Quarterly Performance Summary This performance measure is rated red for 2nd Quarter due to a Frontier Communication's long distance outage that occurred over a two day period. An additional factor in the red rating was a fire located near Benton City and I-82 damaged electrical distribution facilities that carry key fiber optic cables causing an outage in the District's primary data communication path between the Kennewick and Prosser offices. This event resulted in the Prosser office being unable to access netowrk and business systems for 90 minutes during regular business hours.

System Goal Q1 Q2 Q3 Q4 Network 99.90% 100.00% 99.99% NoaNet Service 99.90% 100.00% 100.00% Kenn to Pros Link 99.99% 100.00% 99.58% TEA-SCADA Net 99.90% 100.00% 100.00% SAN 99.99% 100.00% 100.00% VDI 99.99% 100.00% 100.00% Phones 99.95% 99.71% 99.05% Exchange 99.99% 100.00% 100.00%

Chris Folta Data Provider: Duane Crum Report Date: 7/30/2018

25 158 Business Agenda Second Reading I Consent Agendo

I nfo O n ly/ P ossi bl e Acti o n lnfo Only

COMMISSION MEETING AGENDA ITEM

Subject July 20L8 Financials

Agenda ltem No:

Meeting Date August'lç 28,2OtB

Presented by: Kent Zirker LY' Stoff Presenting ltem Approved by (dept): Jon Meyer +? k Director/Monager Approved for Chad B. Bartram Ge ne ro I M anage r/Asst G M Commission review: aw

Motion for Commission Consideration:

None

Recom mendation/BackRround

None

Summarv

The July financial statements will be reviewed during the Commission meeting.

Fiscal lmpact

None

159