MINUTES OF THE REGULAR MEETING OF THE COMMISSION …

1 MINUTES OF THE REGULAR MEETING OF THE COMMISSION public utility district NO. 1 OF SKAGIT county , WASHINGTON March 14, 2017 The REGULAR MEETING of the COMMISSION of public utility district No. 1 was held in the Aqua Room of the utility located at 1415 Freeway Drive, Mount Vernon, Washington, on March 14, 2017. The MEETING was called to order at 4:30 PM. Those Commissioners in attendance were: Robbie Robertson, President, Eron Berg, Vice President; and Al Littlefield Secretary. Also in attendance were: George Sidhu, Interim General Manager; Mark Handzlik, Interim Engineering Manager; Gary Chrysler, IT Manager; Sally Saxton, Interim Treasurer, Peter Gilbert, Attorney; and Kim Carpenter, Clerk of the Board; Audience: Judy Littlefield, Diane Robertson, Larry Saunders, Jessica Sidhu, Randy Brower, Brandt Barnes, Dale Ragan, Councilman, City of Mount Vernon, Ed Stauffer, Curt Tronsdal, Carl VanderSar, Nick Cecotti, George & Tina Wolner and Mike Newman.

2 district Employees: Mike Fox, Bill Trueman, Ben Hansen, Kevin Tate, Kathy White, Cathy Langlow, Chris Shaff, Chris Smith, Mike Demers, Mark Semrau, Karen Morgan, Cort Wilson, Krista Lewis, Mike Benton. Commissioner Littlefield led the Pledge of Allegiance. Commissioner Littlefield moved to approve the Consent Agenda for March 14, 2017: a. Approval of Agenda 03/14/17 b. Approval of MINUTES 02/28/17 c. Approval of Vouchers No. 2719-Voucher Nos. 8744-8791, Payroll Check Nos. 17702-17778 ($593, ) 03/07/17 No. 2720-Voucher Nos. 8792-8864 ($404, ) 03/14/17 No. 2721-Voucher No. 8865 ($2, ) 03/14/17 d. Project Acceptance 30th Street Transmission Line Phase II Commissioner Berg abstained from Voucher Approval No. 8865.

3 The motion passed. Under Audience Comments: Ed Stauffer commented on the request for water service from the South Lake Samish area of Whatcom county ; the 1996 Memorandum of Agreement (MOA) reserve allocation; and Skagit county growth management planning. Car VanderSar provided background regarding his request for a waiver of the abandoned service fee for his Sterling Road property and stated his situation is unique and calls for a waiver. Nick Cecotti commented on changes regarding hydrant meter use and fill stations. Discussion ensued regarding various aspects of district policy and Mr. Cecotti will be provided with a copy of said hydrant meter policy. George Wolner commented favorably on the new room setup and requested speakers use microphones.

4 Under New Business Resolution No. 2243-17, A RESOLUTION OF THE COMMISSION OF public utility district NO. 1 OF SKAGIT county , WASHINGTON, APPOINTING A GENERAL MANAGER EFFECTIVE MARCH 14, 2017 AND AUTHORIZING AN EMPLOYMENT AGREEMENT WITH SAID MANAGER TO FIX HIS COMPENSATION IN COMPLIANCE WITH RCW Commissioner Robertson read aloud a memorandum from Attorney Gilbert regarding background behind the resolution presented. Commissioner Robertson stated he would entertain a motion for adoption of Resolution No. 2243-17 and proposed employment agreement. Commissioner Berg commented on his point of view regarding the proposed appointment of George Sidhu, including performance evaluation and his confidence in the recommendation.

5 Commissioner Berg stated that the COMMISSION met with all of Mr. Sidhu s direct reports and the overwhelming feeling from the team was one of confidence in his ability and positive comments regarding integrity, teamwork and morale. Commissioner Berg moved to adopt Resolution No. 2243-17 as presented. Commissioner Littlefield read aloud the title of the proposed resolution. The motion passed. Manager Sidhu thanked the COMMISSION and staff for their kind words and confidence in his ability. He stated he will do his best to continue the hard work and appreciates the great team of employees that are here. Under Old Business: Manager s Report, Interim Manager Sidhu presented reports for the following: Engineering: district Projects Crews are working on Denny Place, E.

6 Section Street to Hazel Street, Hazel Street, Denny Place to 15th Street, E. Section Street, S. 13th Street to S. 15th Street, Quentin Avenue, E. Section Street to Hazel Street and S. 19th Street, E. Broadway to E. Section Street, E. Fowler Street, S. 14th Street to S. 18th Street, beginning with Fowler Street where they have laid approximately 800 feet of pipe. Crews have completed minor repairs to the Mundt Creek intake structure to keep it operational until we make final repairs to the structure. The gate between the structure and the pipe that carries the water to Judy Reservoir was lodged partially closed. The Contractor on the Chemical Feed Project has completed the installation of the first three of 5 chemical feed pumps.

7 They have rescheduled the startup for Wednesday, March 15, 2017 Administration Reminder of upcoming Work Sessions 3/21 Engineering; 4:00 PM 4/3 Governance & Administration; 3:00 PM 4/4 Finance & Customer Service; 4:00 PM Would like to address the community fiber plan from the Port on the 3/28 agenda and have asked representatives from the Port to attend for discussion in an open MEETING . Lake Samish - Request for Water Service Discussion Manager Sidhu reviewed various aspects of the request, including past history, options provided by the COMMISSION and staff, DOH funded report, DOH compliance order, needed water treatment plant upgrades, and repeated appearances before the Board. Under New Business, Continued: Manager Sidhu presented Resolution No.

8 2244-17, A RESOLUTION OF THE COMMISSION OF public utility district NO. 1 OF SKAGIT county , WASHINGTON, GRANTING THE GENERAL MANAGER AUTHORITY TO ENTER INTO WASHINGTON STATE DEPARTMENT OF ECOLOGY AGREEMENT NO. WQC-2017-SCPUD1-00038 (FINANCIAL ASSISTANCE FOR GILLIGAN CREEK WATERSHED PROPERTY PROTECTION PROJECT). He stated the resolution authorizes the DOE funding agreement for purchase of property around the surface water intake at Gilligan Creek. Discussion ensued regarding various aspects of the project. Manager Sidhu and Commissioner Robertson thanked Environmental Services Coordinator Trueman for his efforts in bringing the project forward to this point. Commissioner Berg moved to adopt Resolution No. 2244-17 as presented.

9 The motion passed. Manager Sidhu presented a recommendation to award the bid for 6, 8, and 12-inch ductile iron pipe to HD Supply Waterworks in the amount of $328, Commissioner Berg moved to award the ductile iron pipe bid to HD Supply Waterworks in the amount of $328, The motion passed. Manager Sidhu presented a recommendation to modify the Agreement for Professional Services with HDR Engineering for the Mundt Creek Intake Improvements Project with Work Order No. 15, Amendment No. 1. The scope of work includes Preliminary Design, Final Design and Construction Documents, and Bidding and Construction Phase Services. Interim Engineering Manager Handzlik presented an overview of the project, including maintenance, efficiency, and savings in pumping costs.

10 Commissioner Berg moved to approve Work Order No. 15, Amendment No. 1 to the Agreement for Professional Services with HDR Engineering in the amount of $51,709. The motion passed. 2017 Goal Setting for General Manager Discussion. The COMMISSION suggested goals they would like to see General Manager Sidhu accomplish and General Manager Sidhu presented his suggestions as well. Discussion ensued regarding various goals. Manager Sidhu will review the suggestions and add further discussion to the agenda of 03/28. Under Commissioner Comments, Commissioner Littlefield stated he is very happy with the decision to appoint George Sidhu, whom he met 10 years ago and is glad to have him as General Manager. Commissioner Berg asked how many resolutions of the district there are; Clerk of the Board Carpenter replied 2,244 as of today.