METROPOLITAN UTILITIES DISTRICT Committee Meetings · ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES Mr. Frost moved to approve Management's recommendations with regard to

METROPOLITAN UTILITIES DISTRICT Committee Meetings

8:15 a.m. November 7, 2018

AGENDA

1. Safety Briefing 2. Roll Call 3. Open Meetings Act Notice

Construction and Operations – Frost, Cavanaugh, Friend, 1. Capital Expenditures [Ron Reisner, SVP – Chief Operations Officer] – Tab 5 2. Amendment #1 - Design of Florence Chemical Building Renovation [Ron Reisner, SVP

– Chief Operations Officer] – Tab 6 3. Acceptance of Contracts and Payment of Final Estimates [Ron Reisner, SVP – Chief

Operations Officer] – Tab 7 4. Bids on Materials and Contracts [Jon Zellars, Director of Purchasing ] – Tab 8

Services and Extensions – Howard. Friend, Begley 1. Main Extensions [Ron Reisner, SVP – Chief Operations Officer] – Tab 9

Judicial and Legislative – Dowd, Cavanaugh, Howard 1. Declaration Of Surplus Property for Walnut Hill [Mark Mendenhall, SVP – General

Counsel] – Tab 10 2. Settlement of Civil Litigation [Mark Mendenhall, SVP – General Counsel] – Tab 11

Personnel Committee – Begley, Frost, Friend 1. Wage and/or Salary Increases and Ratifications [Bonnie Savine, VP - Human

Resources] - Tab 12 2. Ratification of Vice President, Information Technology Services [Bonnie Savine, VP -

Human Resources] – Tab 13

Accounts, Expenditures, Finance and Rates – McGowan, Begley, Dowd 1. 2019 Budget Workshop – Personnel & Capital [Joe Schaffart, VP – Accounting] - Tab 16

METROPOLITAN UTILITIES DISTRICT Regular Meeting

9:00 a.m. November 7, 2018

AGENDA

1. 2. 3. 4.

Roll Call Open Meetings Act Notice Pledge of Allegiance Approval of Minutes – Committee Meetings & Regular Board Meeting for October 3, 2018

CONSTRUCTION & OPERATIONS

5. 6. 7. 8.

.

Capital Expenditures Amendment #1 – Design of Florence Chemical Building Renovation Acceptance of Contracts and Payment of Final Estimates Bids on Materials and Contracts

SERVICES & EXTENSIONS

9. Main Extensions

JUDICIAL &

LEGISLATIVE 10. 11.

Declaration of Surplus Property for Walnut Hill Settlement of Civil Litigation

PERSONNEL 12.

13. Wage and/or Salary Increases and Ratifications Ratification of Vice President, Information Technology Services

BOARD 14. 15.

Other Matters of District Business for Discussion CLOSED SESSION – Real Estate Matters & Litigation

Safety Briefing

METROPOLITAN UTILITIES DISTRICT

Minutes of Committee Meetings

October 3, 2018

Senior Vice President of Safety, Security and Field Operations Steve Ausdemore provided a briefing regarding the District's safety and security protocol for all individuals in attendance at the Board Meeting in the event of an emergency.

Roll Call Chairman Dave Friend called the Committee Meetings to order at 8: 15 a.m. On a

roll call vote, the following members were present:

Tom Dowd Dave Friend Jack Frost

Mike McGowan Gwen Howard

Tim Cavanaugh Jim Begley

Mark Doyle, Secretary and President

Also present were various members of the staff, representatives from I BEW #1521 , and other members of the public.

Open Meetings Act Notice Chairman Friend advised those in attendance that a copy of the Open Meetings

Act was posted in the rear of the Board Room.

Chairman Friend reminded those in attendance that the Committee Meetings were being livestreamed.

Construction and Operations - Frost, Cavanaugh, Friend Senior Vice President and Chief Operations Officer Ron Reisner reviewed the

proposed capital expenditures as outlined in his letter to the Committee dated September 20, 2018.

Mr. Reisner reviewed the proposed acceptance of contracts and payment of final estimates as outlined in his letter to the Committee dated September 20, 2018.

Director of Purchasing Jon Zellars reviewed the proposed bids on materials and contracts as outlined in his letter to the Committee dated September 21, 2018.

Committee Meetings & Regular Board Meeting October 3, 2018

Page 1 of 6

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Services and Extensions - Howard, Friend, Begley Mr. Reisner reviewed the proposed main extensions as outlined in his letter to the

Committee dated September 20, 2018.

Personnel - Begley, Frost, Friend Vice President of Human Resources Bonnie Savine reviewed her letter to the

Committee dated September 24, 2018 regarding District employee wage and salary increases and ratifications.

Ms. Savine reviewed her letter entitled HMO Design Recommended Changes dated September 25, 2018.

Committee of the Whole President Mark Doyle presented the District Strategic Update, a six-month

progress report requested by the Board at the time of his hiring. Mr. Doyle noted that the update was an opportunity to report on accomplishments, ongoing projects and goals under the broader subject headings of safety and business continuity, organizational excellence, customer experience, reliability, and financial stability.

At the conclusion of the presentation, Chairman Friend asked if any Board Members or members of the public had any comments. Mr. McGowan inquired as to the status of the planned development of a new pump station near 156th and West Dodge Road which had been discussed at the previous month's Board Meeting. Mr. Doyle reported that a decision has been reached to develop the design of the station in 2019 and will be included in next year's budget plan. Mr. McGowan also inquired about the development of a master water plan. Mr. Doyle confirmed that internal discussions are ongoing.

Chairman Friend announced that the regular Board Meeting would convene at 9:46 a.m.

MED/mjm

Mark E. Doyle Secretary and Preside


Page 2 of 6

METROPOLITAN UTILITIES DISTRICT

Minutes of Regular Board Meeting

October 3, 2018

The Board of Directors of the Metropolitan Utilities District of Omaha met in the Board Room of the Headquarters Building at 1723 Harney Street in regular session at 9:48 a.m. on September 5, 2018.

Advance notice of the meeting was posted on the first floor of the Headquarters Building from September 5, 2018 to October 3, 2018. Notice of the meeting was published in The Omaha World-Herald on Sunday, September 23, 2018. The agenda of the meeting was available for public inspection at the office of the Secretary and Preside,nt and delivered to Board Members on September 25, 2018. The agendas and accompanying board documents were posted to the M.U.D. website on September 27, 2018.

AGENDA NO.1 ROLL CALL

Chairman Dave Friend called the meeting to order at 9:48 a.m. On a roll call vote, the following members were present:

Tom Dowd Dave Friend Jack Frost

Mike McGowan Gwen Howard

Tim Cavanaugh Jim Begley

Mark Doyle, Secretary and President

Also present were various members of the staff, representatives from I BEW #1521 , and other members of the public.

AGENDA NO. 2 OPEN MEETINGS ACT NOTICE

Chairman Friend advised those in attendance that a copy of the Open Meetings Act was posted in the rear of the Board Room.

Chairman Friend announced to those in attendance that the regular Board Meeting was being livestreamed.

AGENDA NO. 3 PLEDGE OF ALLEGIANCE

Chairman Friend invited those who wished to participate, to stand and recite the Pledge of Allegiance.


Page 3 of 6

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AGENDAN0.4 APPROVAL OF MINUTES FOR COMMITTEE MEETINGS AND REGULAR BOARD MEETING FOR SEPTEMBER 5, 2018

Mr. Frost moved to approve the minutes for the Committee Meetings and regular Board Meeting for September 5, 2018, which was seconded by Mr. Cavanaugh and carried on a roll call vote.

Voting Yes: Dowd, Friend, Frost, McGowan, Howard, Cavanaugh, Begley Voting No: None

MINUTES FILE DOCUMENT NO. 137810

AGENDA NO. 5 CAPITAL EXPENDITURES

Mr. Frost moved to approve the capital expenditures as outlined in Mr. Reisner's letter to the Committee dated September 20, 2018, which was seconded by Mr. Begley and carried on a roll call vote.

Voting Yes: Dowd, Friend , Frost, McGowan, Howard, Cavanaugh, Begley Voting No: None


AGENDA NO. 6 ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES

Mr. Frost moved to approve Management's recommendations with regard to the acceptance of contracts and payment of final estimates as outlined in Mr. Reisner's letter to the Committee dated September 20, 2018. The motion was seconded by Mr. Dowd and carried on a roll call vote.



AGENDA NO. 7 BIDS ON MATERIALS AND CONTRACTS

Mr. Frost moved to approve Management's recommendations with regard to bids for materials and contracts described in Mr. Zellars' letter to the Committee dated September 21, 2018. The motion was seconded by Mr. Cavanaugh and carried on a roll call vote.




Page 4 of 6

AGENDA NO. 8 MAIN EXTENSIONS

Ms. Howard moved to approve the main extensions as outlined in Mr. Reisner's letter to the Committee dated September 20, 2018. The motion was seconded by Mr. Begley and carried on a roll call vote.



AGENDA NO. 9 WAGE AND/OR SALARY INCREASES AND RATIFICATIONS

Mr. Begley moved to approve the wage and salary increases and ratifications as outlined in Ms. Savine's letter to the Committee dated September 24, 2018, which was seconded by Mr. Cavanaugh and carried on a roll call vote.



AGENDA NO. 10 HMO PLAN DESIGN CHANGES FOR 2019

Mr. Begley moved to approve the HMO Plan Design Changes for 2019 as outlined in Ms. Savine's letter to the Committee dated September 25, 2018, which was seconded by Mr. McGowan and carried on a roll call vote.



AGENDA NO. 11 OTHER MATTERS OF DISTRICT BUSINESS FOR DISCUSSION

Chairman Friend asked if any Board Member or member of the public in attendance at the meeting had any comments they would like to share. There were none.

AGENDA NO. 12 CLOSED SESSION - LITIGATION MATTERS

At 9:54 a.m., Mr. Cavanaugh moved to go into Closed Session for the purpose of discussing litigation matters, which was seconded by Mr. McGowan and carried on a roll call vote.



Page 5 of 6


Chairman Friend requested that all those in attendance other than Board Members and select staff members leave by the rear of the Board Room.

At 10:52 a.m., Mr. Begley moved to return to Open Session, which was seconded by Mr. McGowan and carried on a roll call vote.



Mr. Frost moved to adjourn the meeting which was seconded by Mr. Cavanaugh and carried on a roll call vote.



The meeting was adjourned at 10:53 a.m.

MED/mjm

Secretary and President


Page 6 of 6

METROPOLITAN UTILITIES DISTRICT Inter-Department Communication

October 19, 2018

Subject: CAPITAL EXPENDITURES

To: Committee on Construction and Operations cc: all Board Members, Doyle, Mendenhall , Schneider, Ausdemore, Stanley and

all Vice Presidents

From: Ron K. Reisner, Senior Vice President, Chief Operations Officer

The following items will be on the November 7, 2018, Committee Agenda for consideration and the November 7, 2018, Board Agenda for approval:

SYSTEM IMPROVEMENTS

1. 100051001033 - $122,512 - Install 240 feet of 6-inch water main in 35th Street north of Dodge Street. This main is being installed in accordance with the District's Infill Main Policy to prevent additional private lines along 35th Street, reinforce the distribution system and improve fire flows in the area. Icon Properties Midtown, LLC has requested water service for 3412 Dodge Street and will pay $34,000 toward the infill main. The payment represents approximately 28% of the estimated cost of the main. The District has the potential to recover the remaining portion of the main cost of $88,512 through future connections to this main.

2. 100054000988 and 100068000968 - $520,000 - Install 5,370 feet of 8-inch and smaller gas mains and abandon 5,105 feet of 8-inch and smaller gas mains, 153rd to 158th Streets and Pepperwood Drive to Corby Street. This work is required to eliminate conflicts with proposed grading , paving and storm sewer work being done along 156th Street and Biondo Street for a City of Omaha project. This work is not reimbursable as the mains are in public right-of-way. Three gas services will be replaced at an estimated cost of $13,000. The associated water main expenditure was approved at the July Board Meeting.

3. 100053001381 and associated job numbers - $840,600 - Maple Street from 69th

to 76th Streets and 72nd Street from Maple to Wirt Streets - Install 3,850 feet of 2- and 4-inch gas mains and 1,120 feet of 6- and 8-inch water mains; abandon 3,000 feet of 3-inch and smaller gas mains and 1,160 feet of 6- and 8-inch water mains. This work is required to eliminate conflicts with proposed grading, paving and storm sewer work being done for City of Omaha projects. This work is not reimbursable as the mains are in public right-of-way. There will be 24 gas services and 10 water services connected to the new mains at an estimated cost of $93,000 and $28,000, respectively.

4. 100083001074 - $170,000 - Replace underground piping cathodic protection system at Platte South. The cathodic protection system that inhibits corrosion to the steel piping under and adjacent to the Platte South Treatment Plant was installed in 1974, is not operating effectively and is in need of replacement. A professional services study was performed by Lake Superior Consulting, which recommended replacement of the existing

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cathodic protection system, as the original system lacks the required power output to properly protect the existing piping according to current standards. Management is recommending, with approval of this expenditure, that Lake Superior Consulting be retained to provide the necessary material resources and oversight to replace the existing cathodic protection system. Approval of this capital expenditure approves the sourcing of the project to Lake Superior Consulting.

5. 100051001028 and 100065001584 - $60,000 - Replace 36-inch butterfly valve, 30th and Binney Streets. This valve is inoperable and failed in an unknown position. The valve was installed in 1983 and repair parts are no longer available.

BUILDINGS, PLANTS AND EQUIPMENT

1. 100084001220 - $100,000 - SUPPLEMENTAL RATIFICATION - Line stop fittings and valves, 117th Propane Air Plant main shaft building. The original expenditure request of $130,000, approved in September 2017, was based upon an initial estimate by WSP USA. The additional costs of the project, which was completed in May of 2018, can be attributed to an unforeseen propane leak and the project taking longer than expected due to unanticipated complexity in a very tight and congested space. Additional work included removing the concrete floor in order to make space for welding, and longer than expected purging of the space was required in order to keep the environment in a safe, non-flammable working condition. Other unexpected factors included severe weather delays, difficulty in performing a line stopping procedure and additional pressure tests that were not originally planned.

2. 100071000689 - $105,000 - Replace existing piping and fittings for lime transfer line, Platte West. Due to internal erosion and abrasion, one of the two pneumatic lime unloading lines at the Platte West Treatment Plant has deteriorated and needs to be repaired. Sections of piping and numerous fittings used on this line are different from the second transfer line, which has not experienced similar degradation. The damaged sections of the existing line will be replaced with pipe and fittings similar to those on the undamaged line.

Approved:

Ron K. Reis er Senior Vice President, Chief Operations Officer (402) 504-7110

-2-


October 15, 2018

Subject: AMENDMENT NO. 1 - Florence Water Treatment Plant - Engineering Services for the Phase Ill Chemical Building Architectural , Structural, Mechanical, Electrical, Instrumentation, and Process Improvements

To: Committee on Construction and Operations cc: all Board Members, Doyle, Mendenhall, Reisner, Schneider, Ausdemore,

Stanley and all Vice Presidents

From: Michael A. Koenig, Director - Water Production & Pumping

On April 5th, 2017, the Board of Directors authorized the President to enter into an

agreement with HOR Engineering, Inc. for professional engineering services for the design, bid and construction phase services for the Florence Water Treatment Plant Chemical Building Renovation Project. This letter is to request an amendment to the existing agreement. Additional services, not included in the original scope of work, are being requested. A summary of these services, which have been completed, is detailed below:

• Addition of a replacement generator for the Chemical Building. This item was included in the capital budget, however the design of the replacement was not a part of the original scope of services for this project. As design progressed, the additional electrical load on the building for the process and mechanical improvements required a larger generator to be designed and coordinated with the other scoped building electrical upgrades.

• Relocation of the pre-sedimentation basin electrical service from the Chemical Building to the pre-sedimentation basins. Electrical work that was originally planned for future pre-sedimentation basin renovation projects is being done now in conjunction with the Chemical Building renovations. The pre-sedimentation basins electrical service is currently interconnected with the Chemical Building electrical service and needs to be separated under this project to avoid purchasing expendable equipment and costly rework in the future .

Additionally under this item, the Pre-sedimentation effluent flow meter control lines were rerouted, and lights and receptacles replaced.

• Replacement of additional roofing. After the design commenced, it was determined the existing nine-year old roofs above the lab additions and track bay needed to be replaced. Heavy construction will occur adjacent to these roofs and subject them to higher than normal traffic. Also, because the existing heating and air conditioning equipment, and process and dust collection systems will be removed and the new equipment placed in different locations, a mixture of patches will further degrade the existing roof. Finally, code compliance requires a secondary overflow drain to be retrofitted into the roof which will require the installation of additional drain baskets and piping cut into the roof which will further compromise its integrity.

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• Separation of the sanitary and storm sewers. During design it was discovered that the sanitary and storm sewers for the chemical building were connected. Separation of the sanitary and the storm sewers was required by code, including a new separate connection to the City of Omaha's sanitary sewer main located just west of the property.

• Inclusion of a Storm Water Pollution Prevention Plan (SWPPP). This effort was not anticipated as part of the original scope, but became necessary due to the additional areas impacted by the unexpected sanitary sewer separation and additional electrical work listed above.

In addition to the design related changes listed above, Sodium Permanganate is now being used for zebra mussel control, requiring a feed point at the river intakes. The best path forward was to delete the Sodium Permanganate system from the Chemical Building which included an adjustment of the adjacent lime system to allow additional space for operation and maintenance of the lime equipment. These adjustments include more working space around the lime aging tanks, lime feed pumps and electrical control panels.

This amendment also includes additional fees to account for increased construction phase services. These services include review of additional shop drawings and assistance with answering contractor questions that come up during construction that are related to the design. Although the District provides a resident inspector to minimize these charges, a certain amount of construction-related assistance is required.

The original agreement was for $1,329,100 and included as part of a $1,750,000 expenditure approved at the April 5th Board Meeting. Amendment No. 1, in the amount of $292,900, will increase the contract amount to $1,622,000, which represents a 22% increase. Your approval of Amendment No. 1 is requested.

James A. Snields Vice President, Water Operations

Mark Mendenhall Senior Vice President, General Counsel

,., /4 / & /~~✓ Michael A. Koenig Director - Water Production & Pumping (402) 504-7487

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October 22, 2018

Subject: ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES

To: Committee on Construction and Operations cc: all Board Members, Doyle, Mendenhall, Schneider, Ausdemore, Stanley and all Vice

Presidents


Work has been satisfactorily completed on the following contracts and final payments are recommended:

Board Amounts Contract Consultant Approval Date

Agreement Actual Final

a. Est. 3 - HOR Engineering, Inc., 100083001043, Professional

March 1, 2017 $59,409.00 $38,528.40 $615.68 services to replace two production wells, Platte West.

Comments: All work has been completed by the consultant, is acceptable and in compliance with the scope of work. Due to a reduction of construction phase services, the remaining balance was not required.

Contract Board Amounts

Approval Date *Unit Price Bid Actual Final

b. Est. 2 - Cedar Construction, 100055001222, Install water mains in Anchor Pointe II and

August 2, 2017 $330,064.00 $329,756.70 $25,389.24 Anchor Pointe Villas, Kilpatrick Pkwy. (approximately 172nd St.) and Potter St.

Comments: There was a decrease in unit quantities of $1,007.30 and an increase of $700.00 for flowable concrete fill material.

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Approved

Contract Board Amounts Approval Date *Unit Price Bid Actual Final

c. Est. 4 - Q3 Contracting, Inc., 100092001525, 100082000040-43, 100042000003, Gas main October 3, 2018 $1,444,833.98 $1,036,555.73 $65,274.83 replacement, 56th to 61 st Sts., Biondo St. to Western Ave.

Comments: There was a significant reduction in unit quantities of $407,528.38 due to overestimation of the amount of restoration needed and a decrease of $749.87 for a failed soil test and struck gas service.


d. Est. 2 - Cedar Construction ., 100055001226, Install water

October 4, 2017 $111,824.00 $115,686.60 $7,171.33 mains in Remington Ridge Estates, 197th and Redwood Sts.

Comments: There was an increase in unit quantities of $3,862.60 due to extra piping needed to make a connection.


e. Est. 6 - Cedar Construction, 100055001204, 100055001231, 100057000437, Install water August 2, 2017 $879,835.50 $913,557.85 $64,163.61 mains in Blue Sage Creek, 216th

and "F" Sts.

Comments: There was an increase in unit quantities of $10,955.35 due to extra augering and an increase of $22,767.00 for extra required items including working in frost and additional mobilization, pipe depth and erosion control measures.


f. Est. 2 - Kersten Construction, 100055001229, Install water

October 4, 2017 $231,222.00 $238,604.76 $31,129.99 mains for 370 North Subdivision near 150th St. and Hwy. 370.

Comments: There was a reduction in unit quantities of $6,154.50, an increase of $5,237.76 for a fence to be removed and reinstalled and an increase of $8,299.50 to replace unacceptable backfill and for additional paving.

-2-


g. Est. 2 - Cedar Construction, 100057000416-17, 100055001151, Install

May 4, 2016 $347,545.25 $469,503.15 $134,571.10 transmission water main in 204th

and Fort Sts. to serve Arbor View Subdivision.

Comments: There was an increase in unit quantities of $23,306.30 for additional fittings, augering and a clay separation liner. There was also an increase of $98,651.60 to install additional restrained joint pipe, provide acceptable backfill material, enlarge a concrete backing block for a 16-inch bend, replace a sidewalk and associated ramp, and provide additional seeding and soil erosion control measures.

*Based upon Engineering's estimated unit quantities.

4~· Approved:

Senior Vice President, Chief Operations Officer (402) 504-7110

-3-


October 26, 2018

Subject: BIDS ON MATERIALS AND CONTRACTS DURING THE MONTH OF OCTOBER

To: Construction & Operations Committee cc: All Board Members, Doyle, Ausdemore, Mendenhall, Reisner, Schneider, Stanley

and all Vice Presidents

From: Jon A. Zellars, Director, Purchasing

The following items will be on the November 7, 2018 Committee Agenda for consideration and the November 7, 2018 Board Agenda for approval. The recommended bid is balded and listed first.

WATER/GAS MAIN CONTRACTS

Item

Install Water Mains in McGregor Brae; 156th & Spruce Streets 100055001262 100057000457 WP 1608 Engineering Estimate: $360,619.00

Bids Sent / Rec'd

18/3

Bidder Amount Bid

Kersten Construction $356,757.00 Cedar Construction 365,127.90 Judds Bros. 422,210.00

(A C&A in the amount of $471,336.00 will be presented to the Board on November 7, 2018 for approval.)

Install Water Mains in Copper Creek; 168th Street & Military Road 100055001270 WP 1619 Engineering Estimate: $304,633.00

18/2 Kersten Construction $302,033.00 Cedar Construction 316,114.80


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Item

Replace Existing Fittings for Lime Transfer Line - Platte West WTP 100071000689 WP 1617

OTHER

Bids Sent / Rec'd

4/4

Bidder Amount Bid

Grunwald Mechanical $80,652.00 MMC Mechanical 88,251.99 Prairie Mechanical 100,500.00 Waldinger Corporation 137,618.00


Item

ANNUAL

Bids Sent / Rec'd

Ready Mixed Concrete 11/2 (Estimated 300 YDS) (January 1, 2019 to December 31, 2019)

Gas Meters, Class 250 w/ ERT Extension #1 (11,000 Units) (January 1, 2019 to December 31, 2019)

Gas Meters, Class 400 w/ ERT Extension #1 (500 Units) (January 1, 2019 to December 31, 2019)

2:e-~-Director, P~ sing , (402) 504-7253

1 /1

1/1

Approved: Debra A. Schneider

Bidder Amount Bid

Ready Mixed Concrete $193,899.00 Consolidated Concrete $222,750.00

Itron $1,430,000.00

Itron $101,185.00

m~d)l Senior Vice President, CFO

Mark E. Doyle President

Page 2 of 2

1.

2.


October 25, 2018

Subject: MAIN EXTENSIONS

To: Services and Extensions Committee cc: All Board Members, Doyle, Mendenhall, Schneider, Ausdemore, Stanley and all

Vice Presidents


The following main extensions will be on the November 7, 2018, Committee Agenda for consideration and the November 7, 2018, Board Agenda for approval:

WATER

Job Number Project Cost Applicant Construction M.U.D. Cost Contribution by Applicant

100055001262 $ 93,019 $ 93,019 100057000457 378,317 378,317

$0 $0 Pioneer Main Fee 22,707 22,707

Total $494,043 $494,043

This main is being installed to provide domestic water service and fire protection to six commercial lots in McGregor Brae Subdivision, 156th and Spruce Streets. There is a pioneer main fee due to the existing 16- and 24-inch water mains in Bennington Road and 156th Street. (City of Bennington zoning, McGregor Interests)

Job Number Project Cost Applicant Construction M.U.D. Cost

Contribution by Applicant

100055001270 $462,110 $462,110 Pioneer Main Fee 79,208 79,208 $0 $0

Total $541,318 $541,318

This main is being installed to provide domestic water service and fire protection to 92 single-residence lots in Copper Creek Subdivision, 168th Street and Military Road. There is a pioneer main fee due to the existing 12- and 36-inch water mains in State Street and 168th Street. (City of Omaha zoning, Copper Holdings, LLC)

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1.

GAS

Job Total Cost Revenue

Developer Developer Credits Total Deficiency Number Estimated

Equivalent Estimate Developer

100060001323 $102,126 $57,964 $51,393 $22,800 $102,126 $28,593

This main is being installed to provide gas service to two commercial businesses at 3603 North 222nd

Street and 22145 West Maple Road. Management is recommending oversizing approximately 4, 780 feet of approach main as a 4-inch main at an estimated District cost of $44, 162. The applicant has agreed to pay the cost of the deficiency. (City of Omaha zoning, Prime Real Estate, LLC)

Approved:

~¾.-· Senior Vice President, Chief Operations Officer (402) 504-7110

-2-


October 29, 2018

Subject: DECLARATION OF SURPLUS PROPERTY -WALNUT HILL RESERVOIR

To: Judiciary and Legislative Committee

Cc: All Board Members; Messrs. Doyle, Reisner, Stanley, Ausdemore, Ms. Schneider, and all Vice Presidents

From: Mark Mendenhall, Senior Vice President, General Counsel

District management recommends that the reservoirs at Walnut Hill from Hamilton to Nicholas Street and from 40th Street to Park Road (approximately 38th

Street) be declared surplus. The area to be declared surplus does not include the District's own property to the east currently containing a park, baseball field, and water fountain . The area also does not include the southwest corner of 40th and Nicholas Street that contains a communication tower. The reservoirs have not been in service for 10 years, and there are no current or future plans to use the reservoirs. The area to be declared surplus is more fully described on the attached Exhibit "A".

A resolution has been prepared authorizing the Senior Vice President/General Counsel to advertise the property for sale subject to the final approval of the sale by the Board of Directors.

This matter will appear on the agenda at the J&L Committee meeting for discussion on November 7, 2018, and on the agenda of the November 7, 2018 board meeting.

Approved:

~~~?1-T---Mark Doyle President 402-504-7187

Mark Mendenhall Senior Vice President/General Counsel 402-504-7129

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RESOLUTION

WHEREAS, Management of the Metropolitan Utilities District of Omaha (the "District") has determined that the reservoirs at Walnut Hill are no longer needed for current or future operations of the District, and it is the best interest of the District to sell the reservoirs.

WHEREAS, Exhibit "A" is attached and incorporated by reference providing a legal description of the area to be declared surplus subject to refinements as needed to effectuate the sale of the surplus property.

THEREFORE, the Board of Directors declares the reservoirs as defined in the letter to the J&L Committee and in Exhibit "A" as surplus and directs the Senior Vice President/General Counsel to provide for the sale of the reservoirs subject to a final approval of the sale by this Board .

Adopted :

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Approved


October 29, 2018

Subject: SETTLEMENT OF CIVIL LITIGATION, DAN KAISER v. METROPOLITAN UTILITIES DISTRICT

To: All Board Members

Cc: Messrs. Doyle, Reisner, Stanley, Ausdemore and Ms. Schneider

From: Mark Mendenhall, Senior Vice President/ General Counsel

Dan Kaiser filed an action against the Metropolitan Utilities District of Omaha ("District") in the Nebraska Workers' Compensation Court on or about October 15, 2017, such lawsuit docketed at Doc 215, Page 1377. The Complaint alleged an injury that occurred in March, 2017. The matter has been in litigation since the date the Complaint was filed.

The District's Law Department, including its outside counsel, have now reached a tentative lump sum settlement agreement with Mr. Kaiser and his attorney. This settlement is pending this Board's approval. The settlement recommendation equals $305,000 and will resolve all future ongoing payments.

Pursuant to Neb. Rev. Stat. § 84-713(3), this matter must be placed upon the agenda, and we have done so with a memo that does not go into the details of the District's legal position, which is a matter that is allowed to be kept confidential under Neb. Rev. Stat. § 84-713(2). This memo provides that detail and is subject to AttorneyClient Privilege.

If the Board desires, further discussion of this matter can he held in a Closed Session at the November 7 Board Meeting .

If you have any questions, please feel free to contact me.

Approved :

~ oyl President

Mark Mendenhall SVP/ General Counsel

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Approved


October 26, 2018

Subject: Wage and/or Salary Increases and Ratifications, November 2018 Board Meeting

To: Personnel Committee members Begley, Friend, and Frost cc: Board Members Cavanaugh, Dowd, Howard, and McGowan; President Doyle, and

Sr. Vice Presidents Ausdemore, Mendenhall, Reisner, Schneider and Stanley

From: Bonnie Savine, Vice President, Human Resources

The Human Resources Department is recommending the Board of Directors approve the wage or salary increases outlined below. All positions involve District employees earning more than $10,000 per year and therefore require your approval.

1. Operating and Clerical (OAC) Wage Increases Due To Promotion

The Human Resources Department is recommending the Board of Directors approve wage increases for the following Employees within the OAC classification . These wage increases are based on a job selection process, are in compliance with the Collective Bargaining Agreement, and are made following the posting and application process for a job opening in the District. The effective date for these increases will be the beginning of the next OAC pay period following Board approval.

Employee: Current position (department): New position (department): Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date:


Priscilla Cardenas Customer Account Clerk II (Customer Accounting) Customer Account Clerk Ill (Customer Accounting) $25.50; Step 4 $26.91; Step 3 5.53% September 18, 2000

Danita Stanfield Administrative Clerk II (Customer Services) Communications Clerk II (Customer Services) $25.52; Step 4 $28.19; Step 1 10.46% March 21 , 2005

2. Operating and Clerical (OAC) Wage Increases Due To Job Transfer

The Human Resources Department is recommending the Board of Directors approve wage increases for the following Employees within the OAC classification. A transferring employee who is at less than Standard Wage will be moved to an equal rate in the new job classification or, if there is not an identical wage rate, to the nearest higher wage rate in the new job classification . These wage increases are based on a formal selection process, are in compliance with the Collective Bargaining Agreement, and are made following the posting and application process for a job opening in the District. The effective date for these increases will be the beginning of the next OAC pay period following Board approval.

There are no recommendations for approval this month.

E0121328

Approved

Wage and/or Salary Increases and Ratifications Page 2

3. Operating and Clerical (OAC) Wage Increases Due To Job Progression

The Human Resources Department is recommending the Board of Directors approve the following wage increases for the OAC employees who have successfully completed required training and who have been recommended by their supervisor for promotion as they progress within their job family. All increases are based on the bargaining unit wage structure. The effective date for these increases will be the beginning of the next OAC pay period following board approval.




Daniel Hall Customer Service Technician Trainee (Field Service Operations) Apprentice Customer Service Technician (Field Service Operations) $26.23; Step 4 $29.08; Step 2 10.87% September 8, 2014

Brian Paskach Pipe Layer Trainee (Construction) Pipe Layer (Construction) $26.55; Step 4 $28.53; Step 2 7.46% October 3, 2016

Joshua Shannon Customer Service Technician Trainee (Field Service Operations) Apprentice Customer Service Technician (Field Service Operations) $26.23; Step 4 $29.08; Step 2 10.87% June 9, 2014

4. Supervisory, Professional and Administrative (SPA) Salary Increases Due To Job Promotion

The following SPA employees are selected for promotion. It is recommended the President be authorized to increase the salary of these employees. Thes.e SPA positions have been evaluated, graded, appropriate job descriptions completed, and posting guidelines fulfilled . The effective date for these salaries will be the beginning of the next SPA pay period following board approval.


Stanley Bobbett Field Engineer I (Plant Engineering) Field Engineer II (Plant Engineering) $73,303; SPA-01 $76,968; SPA-02 5.00% September 24, 2007

Wage and/or Salary Increases and Ratifications Page 3

Supervisory, Professional and Administrative (SPA) New Hire Ratification

Board of Director Ratification of salaries, for new SPA employees hired from outside the District, is required to confirm the salary within the grade established for the position. Authorization to ratify the annual salary of SPA employees hired from outside the District will be requested each month, if appropriate.

Employee: Current position (department): Current rate; step/grade: District hire date:

Date /approJed

Dafuappr.6ved

Bradley Marco IT Asset Specialist (Information Technology) $68,505; SPA-03 October 8, 2018

---


October 26, 2018

Subject: Ratification of Vice President, Information Technology Services

To: Personnel Committee members Begley, Friend, and Frost cc: Board Members Cavanaugh, Dowd, Howard, and McGowan

President Doyle, and Senior Vice Presidents Ausdemore, Mendenhall, Reisner, Schneider and Stanley

From: Bonnie Savine, Vice President, Human Resources

The District had a budgeted opening for a Vice President, Information Technology Services in the Information Technology Department. This letter requests authorization to ratify the annual salary of Susan G. Lobsiger as a Vice President, Information Technology Services.

Ms. Lobsiger was hired at the annual salary of $150,000 which is below the Established Rate for the Supervisory, Professional and Administrative Grade SPA-11. The Board has previously approved the Grade SPA-11 range of $124,619 to $161,219.

This item will be on the agenda of the November 7, 2018, Board meeting. It is recommended the Board of Directors ratify Ms. Lobsiger's annual salary of $150,000 as a Vice President, Information Technology Services. Your approval for this action is recommended.

APPROVED:

1MJ '7.A~-;;::::!i~~ Mark E. Doyle President

Vice President, Human Resources

E0121328

Approved

Working DraftPersonnel

Capital Projects

Metropolitan Utilities District 2019 Budget

E0121328

Info Purposes

Other O&M12%

Water Capital Expenditures

20%

Gas Capital Expenditures

17%

Payroll & Benefits51%

2019 Projected Spend = $240M

2

Components of District Spending(Water & Gas Combined)

8% Capitalized to Projects

Personnel


4

2019 Personnel Budget(Water & Gas Combined)

As of December 31

2018 Budget

2018 Estimate

2018 Budget

(Submitted)2019

Budget

Full-Time 825 820 831 820

Part-Time 8 7 7 7

Total 833 827 838 827

SPA29%

OAC71%

Employees by TypeAs submitted

2019 Budget

Customer Services17%

Construction17%

Field Service13%

Water Operations

12%

Engineering10%

Information Technology

6%

Transportation4%

Maintenance4%

Gas Operations5%

All Other12%

Headcount by DepartmentAs submitted

2019 Budget

825 820 831 820

87

7

7

740

760

780

800

820

840

860

2018 Budget 2018 Estimate 2018 Budget(Submitted)

2019 Budget

Full‐Time Part‐Time

827 827

(11)(6)

833 838

• •

5

Full-Time EmployeesMonthly Trend

827

819

807805

808

796798

807 807

828 829 827 827828

825 825 825 826 826 826 825

820

780

790

800

810

820

830

840

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018 Actual 2018 Budget Dec 2018 & 2019 Target

Actuals Jan ‐ Sep

-----•-...................

---------... _..,., ____ .,.,~----•---~ ....... ---~•-------..... ,----.. •------i, ..... ---... 1----......

- •

Travel & Memberships Summary


2018 2019 IncreaseTRAVEL Budget Budget (Decrease)

TOTAL AS SUBMITTED 267,100$ 274,300$ 7,200$

Budget Adjustment (35,825) (43,025) (7,200)

TOTAL TRAVEL 231,275$ 231,275$ -$

7

Travel & Memberships Summary2019 Budget

2018 2019 IncreaseBudget Budget (Decrease)

MEMBERSHIPS - Funded by MUD

Individual Memberships 36,808$ 42,959$ 6,151$

Company-wide Memberships 118,000$ 118,600$ 600$

TOTAL MEMBERSHIPS - Funded by MUD 154,808$ 161,559$ 6,751$

MEMBERSHIPS - Funded by NNG Marketing Incentive Fund

TOTAL MEMBERSHIPS - Funded by NNG 185,151$ 189,915$ 4,764$

C )

Capital Expenditures

Water Department


2018 ACT/EST 2019 BUDGETLINE 2018 2018 2019 VS. VS.NO DESCRIPTION BUDGET ACT/EST BUDGET 2018 BUDGET 2018 BUDGET

Mains1 * Water Construction Mains (WCM) 4.0$ 4.0$ 3.1$ -$ (0.9)$ 2 Water Cast Iron Main Replacement (WCI) 12.4 8.2 12.0 (4.2) (0.4) 3 * Water Construction Relocation Mains (WCR) 2.2 2.8 1.8 0.6 (0.4) 4 * Water Construction Contract Mains (WCC) 6.2 11.9 7.9 5.7 1.7 5 * Water Construction Developer Mains (WCD) 0.2 0.3 0.3 0.1 0.1 6 * Water Construction Pioneer Main (WCP) 5.6 6.6 5.4 1.0 (0.2)

Total Mains 30.6 33.8 30.5 3.2 (0.1)

Other Distribution System Property7 Replacement of Obsolete/Broken Hydrants 0.3 0.3 0.3 - - 8 Replacement of Obsolete/Broken Valves 0.4 0.4 0.4 - -

Total Other Distribution System Property 0.7 0.7 0.7 - -

Buildings, Land and Equipment9 Buildings, Land and Equipment Platte West 1.1 0.7 1.0 (0.4) (0.1) 10 Buildings, Land and Equipment Florence 16.3 15.3 18.5 (1.0) 2.2 11 Buildings, Land and Equipment Platte South 2.7 0.8 2.6 (1.9) (0.1) 12 Buildings, Land and Equipment - Other - 1.1 0.5 1.1 0.5 13 Repumping 3.8 0.1 1.4 (3.7) (2.4) 14 Construction Machines 1.7 1.3 3.0 (0.4) 1.3 15 Furniture, Equipment and Miscellaneous 0.7 0.6 0.5 (0.1) (0.2)

Total Building, Land and Equipment 26.3 19.9 27.5 (6.4) 1.2

16 Salvage Credits on Construction Machines (0.1) (0.1) (0.1) - -

Total Plant Additions and Replacements 57.5$ 54.3$ 58.6$ (3.2)$ 1.1$

Funds received on Reimbursable Projects above * 10.8$ 11.2$ 11.3$ 0.4$ 0.5$

* Components of certain main types are paid for by customers/developers.

VARIANCES

9

WATER DEPARTMENTPLANT ADDITIONS AND REPLACEMENTS

($ in millions)

r ~ r ~,

10

WATER DEPARTMENTPLANT ADDITIONS AND REPLACEMENTS BY TYPE

2019 BUDGET

Florence$18.5 32% Platte South

$2.6 4%

Platte West$1.0 2%

Repumping$1.4 2%

Construction Machines$3.0 5%

All Other$1.6 3%

Cast Iron Mains$12.0 20%

All Other Mains$18.5 32%

Total Proposed 2019 Spend $58.6 Million

11

WATER DEPARTMENTFIVE YEAR PROJECTION OF PLANT ADDITIONS AND REPLACEMENTS

($ in millions)

$8.2$12.0 $12.4

$19.1

$26.2

$33.8

$25.6 $18.5 $15.7

$15.0

$13.9

$12.7$15.3

$18.5

$10.8

$7.9

$7.7

$6.3$0.8$2.6

$5.4$2.5

$4.2

$4.0

$1.3

$3.0

$2.5 $2.6

$2.7

$2.7

$2.3

$1.6

$5.5$3.3

$1.3

$1.4

$‐

$10

$20

$30

$40

$50

$60

$70

2018 2019 2020 2021 2022 2023

Act/Est Budget Estimate Estimate Estimate Estimate

All Other

Platte West

Repumping

Constr. Machines

Platte South

Florence

All Other Mains

Cast Iron Mains

$54.3

$58.6

$53.9

$50.7

$56.7

$61.4

•

•

•

•

•

•

•

•


Gas Department


WE'LL BE THROUGH HERE SBORnY THIS NEW BAS MAIN WILL PROVIDE •ETTER SERVICE TD THIS HU

2018 ACT/EST 2019 BUDGETLINE 2018 2018 2019 VS. VS.NO DESCRIPTION BUDGET ACT/EST BUDGET 2018 BUDGET 2018 BUDGET

Mains1 Gas Construction Mains (GCM) 2.0$ 1.1$ 2.0$ (0.9)$ -$ 2 Gas Cast Iron Main Replacement (GCI) 12.1 11.3 11.6 (0.8) (0.5) 3 Gas Construction Relocation Mains (GCR) 1.0 2.4 1.5 1.4 0.5 4 Gas Revenue Mains (GRM) 2.1 2.6 2.8 0.5 0.7

Total Mains 17.2 17.4 17.9 0.2 0.7

5 Replacement of Small Gas Valves 0.1 0.1 0.1 - -

Other Distribution System Property6 Metering Equipment 2.1 1.8 2.0 (0.3) (0.1) 7 New Services 3.5 2.6 2.9 (0.9) (0.6) 8 Leaking Service Replacement 2.6 2.2 2.4 (0.4) (0.2) 9 GIR Service Replacements (MUD) 4.6 5.4 5.1 0.8 0.5 10 GIR Service Replacements (Contracted) 3.8 3.5 3.9 (0.3) 0.1 11 Regulator Stations & Equipment 0.5 0.3 0.4 (0.2) (0.1)

Total Other Distribution System Property 17.1 15.8 16.7 (1.3) (0.4)

Buildings, Land and Equipment12 * Buildings, Land and Equipment - LNG/Propane 5.4 2.8 2.7 (2.6) (2.7) 13 Buildings, Land and Equipment - All Other 2.3 0.9 2.5 (1.4) 0.2 14 Information Technology Equipment 2.3 1.6 3.2 (0.7) 0.9 15 Motor Vehicles 3.0 2.4 4.0 (0.6) 1.0 16 Furniture, Equipment and Miscellaneous 0.9 0.7 1.3 (0.2) 0.4

Total Buildings, Land and Equipment 13.9 8.4 13.7 (5.5) (0.2)

Major System Retirements17 Service Piping Abandonments 0.6 0.6 0.6 - -

Salvage Credits on Motor Vehicles (0.1) (0.1) (0.1) - -

Total Plant Additions and Replacements 48.8$ 42.2$ 48.9$ (6.6)$ 0.1$

Gas Cost Adjustment recovered in Projects above * 4.0$ 3.0$ 3.8$ (1.0)$ (0.2)$

* The cost of certain projects is recovered via the Gas Cost Adjustment component of rates.

VARIANCES

13

GAS DEPARTMENTPLANT ADDITIONS AND REPLACEMENTS

($ in millions)

r ) r ~. - -

14

GAS DEPARTMENTPLANT ADDITIONS AND REPLACEMENTS BY TYPE

2019 BUDGET

Bldgs, Land & Equip$5.2 11%

All Other$1.9 4%

Information Technology

$3.2 6%

Motor Vehicles$4.0 8%

All Other Mains$6.3 13%

Cast Iron Mains & Services$20.6 42%

Services, Meters & Regulator Equip

$7.7 16%

Total Proposed 2019 Spend $48.9 Million

15

GAS DEPARTMENTFIVE YEAR PROJECTION OF PLANT ADDITIONS AND REPLACEMENTS

($ in millions)

$20.2 $20.6 $20.7 $21.9 $22.7 $23.7

$6.1 $6.3 $4.8$4.6 $4.6

$4.7

$6.9$7.7

$7.7$7.7 $7.7

$7.8

$3.7$5.2

$3.8$5.2 $5.0

$5.0$2.4

$4.0

$4.1$2.6 $2.7

$2.7

$1.6

$3.2

$2.0 $1.9 $1.8 $1.7

$1.3

$1.9

$1.5 $1.4 $1.5 $1.4

$‐

$10

$20

$30

$40

$50

2018 2019 2020 2021 2022 2023

Act/Est Budget Estimate Estimate Estimate Estimate

All Other

InformationTechnology

Motor Vehicles

Bldgs, Land & Equip

Services, Meters &Regulator Equip

All Other Mains

Cast Iron Mains &Services

$42.2

$48.9

$44.6 $45.3 $46.0 $47.0

•

•

•

•

•

•

•

Thank youAccounting Department, 1951


WorkingDraft

Appendix

Great things in business are never done by one person.They’re done by a team of

people.~Steve Jobs

The road tosuccess is always

under construction.~Arnold Palmer

Field Services, 1942

45th & Bedford Water Main


Personnel


+1 President’s Office– Addition of Senior VP, Safety, Security, & Field Operations(1) Safety & Security – Vice President, Safety & Security+1 Information Technology – Director, Planning & Process Improvement transferred to IT(3) Planning & Process Improvement – (1) Director, Planning & Process Improvement transferred to IT; (1) Senior Process Financial Analyst transferred to Accounting; (1) Senior Project Manager position(1) Gas Operations – (1) Gas Plant Engineer; (1) Full-time Administrative Clerk; +1 Part-time Administrative Clerk+3 Field Service Operations – +1 Field Foreman; (1) Administrative Clerk II; +8 Customer Service Technician Trainees; +3 Field Helpers; (4) Customer Service Technicians; (3) Apprentice Customer Service Technicians(2) Water Operations – (1) Water Plant Shift Foreman (Florence); +1 Assistant Director (Platte West); (1) Plant Foreman (Platte West); (1) General Maintenance Mechanic (Water Distribution) (3) Maintenance – (1) Facilities Manager; (1) Maintenance Mechanic Helper; (1) Building Engineer(9) Customer Services – +1 Full-Time Administrative Clerk II (Customer Service Administration); (1) Part-Time Administrative Clerk III (Meter Reading); (5) Customer Service Clerk (Customer Service); (1) Supervisor, QA & Large Customers (Customer Accounting); (1) Training Supervisor (Customer Accounting); +1 Quality Control Specialist (Customer Accounting); +1 Cashier II; (3) Full-Time Customer Service Clerk (Credit Services); (1) Part-Time Customer Service Clerk (Credit Services) (2) Marketing – (1) Contractor Service Representative II; (1) Builder Services Clerk+2 Purchasing, Stores & Measurement – +1 Industrial Gas Meter Technician - overlap 2019 retirement (Measurement); +1 Supervisor, Stores - overlap 2019 retirement (Stores)+1 Accounting – +1 Senior Process Financial Analyst transferred from Planning & Process Improvement (3) Engineering – (1) Senior Engineering Technician (Engineering Design); (3) Engineer I (Engineering Design); +1 Engineering Technician - Corrosion (Engineering Design)+0 Construction – +1 Training Foreman (overlap 2019 retirement); (1) Pipe Layer Trainee

19

Number of Employees2018 Budget vs. 2018 Estimate

(as of December 31)Department Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time Total

President's Office 8 - 8 9 - 9 1 - 1

Legal 7 - 7 7 - 7 - - -

Human Resources 11 - 11 11 - 11 - - -

Safety & Security 10 - 10 9 - 9 (1) - (1)

Information Technology 50 - 50 51 - 51 1 - 1

Planning & Process Improvement 3 - 3 - - - (3) - (3)

Gas Operations 41 - 41 39 1 40 (2) 1 (1)

Field Service Operations 101 - 101 105 - 105 4 - 4

Water Operations 104 2 106 102 2 104 (2) - (2)

Maintenance 39 1 40 36 1 37 (3) - (3)

Customer Services 149 5 154 142 3 145 (7) (2) (9)

Marketing 14 - 14 12 - 12 (2) - (2)

Rates & Regulatory Affairs 3 - 3 3 - 3 - - -

Purchasing, Stores & Measurement 32 - 32 34 - 34 2 - 2

Accounting 15 - 15 16 - 16 1 - 1

Engineering 88 - 88 85 - 85 (3) - (3)

Construction 141 - 141 141 - 141 - - -

Transportation 31 - 31 31 - 31 - - -

SUBTOTAL (As submitted) 847 8 855 833 7 840 (14) (1) (15)

Budget Adjustment (22) - (22) (13) - (13) 9 - 9

TOTAL 825 8 833 820 7 827 (5) (1) (6)

2018 Budget 2018 Estimate Increase / (Decrease)

20

Number of EmployeesSeptember 2018 Actual vs. December 2018 Estimate

(as of last day of the month)

+4 Information Technology – +1 Vice President, Information Technology; +1 Systems Architecture HANA Manager; +1 IT Asset Specialist; +1 GIS Data Specialist;+1 ERP Technical/Functional Analyst; (1) Sr. Process Financial Analyst transferred to Accounting

(1) Field Service Operations – (1) Administrative Clerk+6 Water Operations – +1 Valve Maintenance Mechanic; +3 General Maintenance Mechanic; +2 Water Maintenance Trainees (all Water Distribution)+3 Customer Services – +3 Customer Service Clerk I (Customer Service); +1 Digital Media Specialist (Admin); (1) Customer Service Clerk II (Customer Accounting)+2 Purchasing, Stores & Measurement – +1 Industrial Gas Meter Technician - overlap 2019 retirement (Measurement); +1 Supervisor, Stores - overlap 2019 retirement (Stores)+1 Accounting – +1 Senior Process Financial Analyst transferred from Planning & Process Improvement +2 Engineering – +1 Design Engineer; +1 Engineer II; +1 Engineer I; (1) Corrosion Engineer+8 Construction – +3 Pipe Layer Trainees; +5 WIR Crew+1 Transportation – +1 Auto Service Person

Department Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time TotalPresident's Office 9 - 9 9 - 9 - - -

Legal 7 - 7 7 - 7 - - -

Human Resources 11 - 11 11 - 11 - - -

Safety & Security 9 - 9 9 - 9 - - -

Information Technology 47 - 47 51 - 51 4 - 4

Gas Operations 39 1 40 39 1 40 - - -

Field Service Operations 106 - 106 105 - 105 (1) - (1)

Water Operations 96 2 98 102 2 104 6 - 6

Maintenance 36 1 37 36 1 37 - - -

Customer Services 139 3 142 142 3 145 3 - 3

Marketing 12 - 12 12 - 12 - - -


Purchasing, Stores & Measurement 32 - 32 34 - 34 2 - 2

Accounting 15 - 15 16 - 16 1 - 1

Engineering 83 - 83 85 - 85 2 - 2

Construction 133 - 133 141 - 141 8 - 8

Transportation 30 - 30 31 - 31 1 - 1

SUBTOTAL (As submitted) 807 7 814 833 7 840 26 - 26

Budget Adjustment - - - (13) - (13) (13) - (13)

TOTAL 807 7 814 820 7 827 13 - 13

September 2018 Actual December 2018 Estimate Increase / (Decrease)

21

Number of Employees2018 Estimate vs. 2019 Budget

(as of December 31)

+1 Safety & Security – Vice President, Safety & Security+0 Field Service Operations – +1 Director, Field Service; +1 QA/Compliance Foreman; (1) Field Foreman (overlap for 2019 retirement); (1) Customer Service Tech(1) Customer Services – (1) Investigator (Meter Reading) transferred to Measurement(1) Purchasing, Stores & Measurement – +1 Investigator (Measurement) transferred from Meter Reading; (1) Industrial Gas Meter Technician retirement (Measurement);

(1) Supervisor, Stores retirement (Stores)(1) Construction – (1) Training Foreman retirement

Department Full-Time Part-Time Total Full-Time Part-Time Total Full-Time Part-Time TotalPresident's Office 9 - 9 9 - 9 - - -

Legal 7 - 7 7 - 7 - - -

Human Resources 11 - 11 11 - 11 - - -

Safety & Security 9 - 9 10 - 10 1 - 1

Information Technology 51 - 51 51 - 51 - - -

Gas Operations 39 1 40 39 1 40 - - -

Field Service Operations 105 - 105 105 - 105 - - -

Water Operations 102 2 104 102 2 104 - - -

Maintenance 36 1 37 36 1 37 - - -

Customer Services 142 3 145 141 3 144 (1) - (1)

Marketing 12 - 12 12 - 12 - - -


Purchasing, Stores & Measurement 34 - 34 33 - 33 (1) - (1)

Accounting 16 - 16 16 - 16 - - -

Engineering 85 - 85 85 - 85 - - -

Construction 141 - 141 140 - 140 (1) - (1)

Transportation 31 - 31 31 - 31 - - -

SUBTOTAL (As submitted) 833 7 840 831 7 838 (2) - (2)

Budget Adjustment (13) - (13) (11) - (11) 2 - 2

TOTAL 820 7 827 820 7 827 - - -

2019 Budget2018 Estimate Increase / (Decrease)

2010 2011 2012 2013 2014 2015 2016 2017 2018Avg Svc 33 30 33 24 27 28 28 28 29Avg Age 62 61 61 62 60 62 62 62 61Count 18 20 31 30 17 20 18 27 41

‐

10

20

30

40

50

60

70

22

Retirees Per Year2010 through September 30, 2018

9 months

-......

Full-Time

Department Employees Total 55 and older 60 and olderPresident's Office 9 8 4 2

Legal 7 6 3 2

Human Resources 11 8 2 2

Safety & Security 9 3 - -

Field Service Operations 105 89 34 5

Information Technology 49 29 9 7

Gas Operations 39 39 16 4

Water Operations 98 84 37 14

Maintenance 36 33 16 8

Customer Services 139 107 39 18

Marketing 12 10 3 2

Rates & Regulatory Affairs 3 2 1 -

Purchasing, Stores & Measurement 31 29 11 5

Accounting 15 9 3 -

Engineering 83 62 18 4

Construction 133 90 26 8

Transportation 30 20 12 5

TOTALS 809 628 234 86

% of Total Full‐Time Employees 100% 78% 29% 11%

Vested Employees

23

Employee DemographicsAs of October 8, 2018

~

l t I

1%

4%

7%

11%

12%

15%

20%

19%

10%

1%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

< 25 25‐29 30‐34 35‐39 40‐44 45‐49 50‐54 55‐59 60‐64 65 +

157

80

10

121

9492

56

29

8

162

24

Employees by Age GroupAs of October 8, 2018

30% age 55+

Travel Summary



President's Office 15,500$ 29,500$ 14,000$

Legal 7,550 11,050 3,500

Human Resources 13,750 14,250 500

Safety & Security 36,750 34,500 (2,250)

Field Services 8,700 10,000 1,300

Information Technology 62,000 43,500 (18,500)

Gas Operations 21,700 21,700 -

Water Operations 10,050 16,350 6,300

Maintenance 3,850 3,850 -

Customer Services 10,000 11,000 1,000

Marketing 12,000 11,700 (300)

Rates & Regulatory Affairs 7,000 6,000 (1,000)

Purchasing, Stores & Measurement 11,100 14,100 3,000

Accounting, Stores, & Purchasing 8,000 6,000 (2,000)

Engineering 33,150 32,550 (600)

Construction 4,000 5,500 1,500

Transportation 2,000 2,750 750

TOTAL AS SUBMITTED 267,100$ 274,300$ 7,200$

Budget Adjustment (35,825) (43,025) (7,200)

TOTAL 231,275$ 231,275$ -$ 26

Travel Summary2019 Budget

C )

Memberships Summary


28

Memberships Funded by MUD2019 Budget

2018 2019 IncreaseFunded by MUD: Budget Budget (Decrease)

President's Office 7,735$ 7,805$ 70$ Legal 2,228 2,342 114 Human Resources 2,685 2,789 104 Safety & Security 3,170 2,220 (950) Field Services 5,030 5,043 13 Information Technology 2,400 2,700 300 Gas Operations 1,575 885 (690) Water Operations 5,715 12,670 6,955 Maintenance 1,170 405 (765) Customer Services 740 750 10 Marketing 940 640 (300) Rates & Regulatory Affairs 80 300 220 Purchasing, Stores, & Measurement 720 955 235 Accounting 1,070 1,110 40 Engineering 1,550 2,345 795

TOTAL INDIVIDUAL MEMBERSHIPS 36,808$ 42,959$ 6,151$

American Public Gas Association 54,600$ 54,000$ (600)$ American Gas Association 25,000 26,200 1,200 American Water Works Association 20,000 20,000 - Water Research Foundation 12,000 12,000 - Mountain Plains Minority Supplier Development Council 3,000 3,000 - National Safety Council 1,350 1,350 - Center for Energy Workforce Development 1,250 1,250 - NTEA (Association for the Work Truck Industry) 600 600 - Workers Compensation Association of Nebraska 200 200 -

Total Company-wide Memberships 118,000$ 118,600$ 600$

Total Memberships funded by MUD 154,808$ 161,559$ 6,751$

29

Memberships Funded by NNG2019 Budget


Funded by NNG Marketing Incentive Fund:Prosper Omaha 50,000$ 50,000$ -$ Build Omaha 40,000 40,000 - Chamber of Commerce (various municipalities) 29,416 30,600 1,184 Metro Omaha Builders Association 25,000 25,000 - Natural Gas Vehicles America 16,500 20,130 3,630 National Association of Remodeling Industry 10,000 10,000 - Sarpy County Economic Development Corporation 9,885 9,885 - Gateway Development Corporation (Washington County) 800 1,000 200 Heating Cooling Contractors Association 800 800 - Business Ethics Alliance 500 500 - Clean Cities Membership 500 500 - Downtown Omaha, Inc. 500 500 - Green Omaha Coalition 500 500 - Mechanical Contractors Association of Omaha 500 500 - Omaha Restaurant Association 250 - (250)

TOTAL MEMBERSHIPS - Funded by NNG 185,151$ 189,915$ 4,764$

Professional Services/Consulting


31

Professional Services / ConsultingSummary

2018 Budget 2019 Budget pensIncrease / (Decrease)

President's Office 470,250$ 487,300$ 17,050$

Law Department - 36,000 36,000

Human Resources 175,000 190,460 15,460

Safety & Security 24,300 40,000 15,700

Accounting 73,100 76,200 3,100

Marketing - 25,000 25,000

Rates & Regulatory Affairs 1,160 - (1,160)

Customer Services 4,800 99,800 95,000

Field Services 23,800 - (23,800)

Gas Operations 525,000 235,000 (290,000)

Planning & Process Improvement 16,250 - (16,250)

Information Technology 4,897,401 5,525,424 628,023

Water OperationsWater Operations Administration 90,000 - (90,000) Florence 930,000 1,505,000 575,000 Platte South 12,000 12,000 - Platte West 340,000 434,000 94,000

Total Water Operations 1,372,000 1,951,000 579,000

Maintenance 30,400 75,000 44,600

EngineeringPlant Engineering 1,460,000 1,675,000 215,000 Engineering Design 699,600 976,000 276,400

Total Engineering 2,159,600 2,651,000 491,400

TOTAL MUD 9,773,061$ 11,392,184$ 1,619,123$

32

Professional Services / Consulting2019 Budget

Total

President's Office1. Outside legal fees 400,000$ 2. Actuarial valuation, pension and OPEB 43,550 3. Recording, streaming of monthly board meetings 27,000 4. Financial advisory services 10,000 5. Tax and compliance work on water bonds 6,750 Total President's Office 487,300$

Law Department1. Outside legal assistance 36,000$ Total Law Department $ 36,000

Human Resources1. Benefits Consulting 95,460$ 2. Consulting for programs/plans to provide leadership development training 50,000$ 3. Actuarial services for retirement plan projections, retiree drug subsidy, Qualified Domestic Relations Orders, and any other HR actuarial needs 20,000 4. SPA Supervisor Training, MUD University 20,000 5. SPA ad-hoc job evaluations 5,000 Total Human Resources 190,460$

Safety & Security1. Hazardous Material Response Training 15,000$ 2. Emergency Planning Training 15,000$ 3. Confined Space Training 10,000 Total Safety & Security 40,000$

33


* Indicates capitalized item

TotalAccounting1. Audit of Financial Statements 73,200$ 2. Audit of Pension investment values (per GASB 68) 2,000 3. OPEB work for GASB 74/75 1,000 Total Accounting $ 76,200

Marketing1. Verdis / Etal Sustainability Initiative 25,000$ Total Marketing 25,000$

Customer Service1. Qualitrics third party customer surveys 40,000$ 2. After call survey 30,000$ 3. One Call Now web-based outbound calls 25,000$ 4. Social media support 4,800$ Total Customer Service $ 99,800

Gas Operations1. Propane Air Simulator project 100,000$ *2. Vaporization study 100,000 3. Maintain/improve programming at LNG/Propane Air plants 25,000 4. Drawing updates/improvements 10,000 Total Gas Operations 235,000$

34


Total

Information Technology A. Consulting Expensed in IT Cost Centers 1. FNTS (First National Technology Solutions) data subscription fee 2,400,000$ 2. Resources to manage the Customer Relationship Management (CRM) module 350,000 3. BusinessObjects (BOBJ) report development for Mobility, Human Resources, and Accounting 220,000 4. Draw commercial services in GIS for Engineering 252,000 5. Security related consulting associated with 24X7 remote monitoring, migration to new security plan and risk management 200,000 6. Scanning for Human Resources, Legal and Accounting 174,023 Subtotal Consulting Expensed in IT Cost Centers 3,596,023$

B. Consulting Included within Capital Projects 1. Implementation of SAP HANA platform that combines database, application processing, and integration services on a single platform 200,000$ 2. SuccessFactors (Employee Central) 700,000 3. SAP Business Process Consolidation/Planning (BPC) 300,000 4. Environment, Health, and Safety (EHSM) 200,000 5. Sewer Separation (CRM Data Model) 150,000 6. SCADA (Supervisory Control and Data Acquisition) Central Historian 150,000 7. Cyber Security related consulting 75,000 8. MCF Upgrades / Features 100,000 9. SAP Quality Management (QM) for meter testing in Measurement 54,401 Subtotal Consulting Included within Capital Projects 1,929,401$

Total Information Technology 5,525,424$

35



TotalWater Operations1. Florence A. 2019 design work associated with Florence CIP 1,350,000 * B. Design chemical building ASMEI (Architectural, Structural, Mechanical, Electrical, and Instrumentation) 150,000 * C. SCADA (Supervisory Control and Data Acquisition) programming and maintenance 5,000 2. Platte South A. SCADA (Supervisory Control and Data Acquisition) programming and maintenance 12,000 3. Platte West - 404 Permit Requirements A. Environmental monitoring - wetlands, wetland mitigation sites 350,000 B. River gauging station maintenance 30,000 C. Groundwater sampling 25,000 4. Platte West A. SCADA (Supervisory Control and Data Acquisition) programming and maintenance 24,000 B. All other 5,000 Total Water Operations 1,951,000$

Maintenance1. RICE (Regulatory Impact Analysis for the Stationary Combustion Engine) Clean Air Act compliance monitoring 75,000$ Total Maintenance 75,000$

36



TotalEngineering1. Plant Engineering A. Design for various capital improvement projects (based on historical average for last two years - will be included in capital budget as part of underlying projects) 1,000,000$ B. Design West Dodge Zone 3 pump station 400,000 C. Water main inspection work 125,000 D. Soil & Concrete Testing 100,000 E. Storm water pollution prevention plan (regulatory compliance requirement) 50,000 2. Engineering Design A. Design cast iron water main replacements and water main extensions (will be included in capital budget as part of underlying projects) 600,000 B. Hydraulic Modeling and risk ranking of water distribution system 325,000 C. Topographic surveys for internal use in designing water main replacements and extensions 25,000 D. Wetlands delineation surveys, reporting and permitting 20,000 E. Drone inspection of mains on bridges and supports 3,000 F. Long-term Physical Document Storage 3,000 Total Engineering 2,651,000$

TOTAL MUD 11,392,184$


Water Department


MAIN TYPES INCLUDED IN CAPITAL EXPENDITURES BUDGETDEFINITIONAL INFORMATION – WATER

38

WCM Main ‐ Water Construction Mains

WCI Main ‐ Water Cast Iron Main Replacement (Infrastructure)

WCR Main ‐ Water Construction Relocation

WCC Main ‐ Water Construction Contract

WCD Main ‐ Water Construction Developer

WCP Main ‐ Water Construction Pioneer Main

Water main extensions for which installation is contracted by a developer, and District costs are reimbursed.

A pioneer approach main is a main connected to the existing distribution system where adequate capacity is available to meet the requirements of the applicant, and is sized to provide service to the applicant and adjacent areas. It extends to the far end of the property/development to be served. The developer contributes to the cost of these mains.

Construction is necessary for improvement and betterment of the system and may or may not make service available to an unserved area. All costs are borne by the District but are recovered through connection charges/impact fees.

Replacement of cast iron infrastructure mains.

A relocation job required because of a highway, bridge or sewer construction project that involves distances greater than 25 feet. Relocation of less than 25 feet is maintenance, and charged to expense (and therefore, not reflected in the capital budget).

The extension of a main that is requested by a customer; District costs are reimbursed by the "requestor".

39

WATER DEPARTMENTFIVE YEAR PROJECTION OF PLANT ADDITIONS AND REPLACEMENTS

($ in millions)

LINE 2018 2018 2019 2020 2021 2022 2023NO DESCRIPTION BUDGET ACT/EST BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE

Mains1 * Water Construction Mains (WCM) 4.0$ 4.0$ 3.1$ 3.1$ 3.0$ 2.7$ 2.6$ 2 Water Cast Iron Main Replacement (WCI) 12.4 8.2 12.0 12.4 19.1 26.2 33.8 3 * Water Construction Relocation Mains (WCR) 2.2 2.8 1.8 1.9 2.0 2.0 2.1 4 * Water Construction Contract Mains (WCC) 6.2 11.9 7.9 5.1 4.6 4.5 4.0 5 * Water Construction Developer Mains (WCD) 0.2 0.3 0.3 0.3 0.3 0.3 0.3 6 * Water Construction Pioneer Main (WCP) 5.6 6.6 5.4 5.3 5.1 4.4 3.7

Total Mains 30.6 33.8 30.5 28.1 34.1 40.1 46.5

Other Distribution System Property7 Replacement of Obsolete/Broken Hydrants 0.3 0.3 0.3 0.3 0.3 0.3 0.3 8 Replacement of Obsolete/Broken Valves 0.4 0.4 0.4 0.4 0.4 0.4 0.4

Total Other Distribution System Property 0.7 0.7 0.7 0.7 0.7 0.7 0.7

Buildings, Land and Equipment9 Buildings, Land and Equipment Platte West 1.1 0.7 1.0 1.0 0.3 0.7 0.5 10 Buildings, Land and Equipment Florence 16.3 15.3 18.5 10.8 7.9 7.7 6.3 11 Buildings, Land and Equipment Platte South 2.7 0.8 2.6 5.4 2.5 4.2 4.0 12 Buildings, Land and Equipment - Other - 1.1 0.5 4.0 2.0 - - 13 Repumping 3.8 0.1 1.4 0.6 - - - 14 Construction Machines 1.7 1.3 3.0 2.5 2.6 2.7 2.7 15 Furniture, Equipment and Miscellaneous 0.7 0.6 0.5 0.9 0.7 0.7 0.8

Total Building, Land and Equipment 26.3 19.9 27.5 25.2 16.0 16.0 14.3

16 Salvage Credits on Construction Machines (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)

Total Plant Additions and Replacements 57.5$ 54.3$ 58.6$ 53.9$ 50.7$ 56.7$ 61.4$

Funds received on Reimbursable Projects above * 10.8$ 11.2$ 11.3$ 9.6$ 5.2$ 6.4$ 5.5$

Water cast iron mains/services to be abandoned (miles) 11 8 10 10 15 20 25

* Components of certain main types are paid for by customers/developers.

Buildings, Land & Equipment ‐ FlorenceConstruct Chemical Feed Building ‐ ASMEI (Architectural, Structural, Mechanical, Electrical, and Instrumentation) Improvements 9,861,000$ 1,337,610$ Construct Low Service Pump House ‐ ASMEI Improvements 3,651,000 460,000 Construct Basin 1 ‐ Rehabilitation 1,890,352 Design Pre‐Sedimentation ‐ Perf Inlet Baffle, Replace Scraper 812,700 Design Basin 1, 2 & 3 Rehabilitation 606,000 Low Service Pump House ‐ Valve Replacement 500,000 250,000 Design Low Service Pump House ‐ ASMEI Improvements 300,000 112,000 Engine Building ‐ Exhaust Fan Installation & Ex Platforms 199,300 Site Civil ‐ Railroad Track Maintenance 193,005 Design Chemical Feed Building ‐ ASMEI Improvements 120,000 All Other < $100,000 individually 374,176

Total Buildings, Land & Equipment ‐ Florence 18,507,533$

40

WATER DEPARTMENT2019 PROJECT DETAIL

2019 2020

Buildings, Land & Equipment ‐ Platte WestGenerator Control System Upgrade 300,000$ Solids Contact Units (SCU) Water/Air Line Replacement 120,000 All Other < $100,000 individually 531,830

Total Buildings, Land & Equipment ‐ Platte West 951,830$ Buildings, Land & Equipment ‐ Platte South

Construct Wellfield Electrical Power Replacement 1,000,000$ 3,460,000$ Replace Filter Plant Valves and Operators 600,000 1,595,803 Replace Chlorine Scrubber Caustic with Dry System 210,000 Replace Plant Cathodic Protection System 169,588 Replace Handrails Around Upflow Basins 130,000 Install Handrails Around Filters 125,000 Design Wellfield Electrical Power Replacement 100,000 All Other < $100,000 individually 233,740

Total Buildings, Land & Equipment ‐ Platte South 2,568,328$

41

WATER DEPARTMENT2019 PROJECT DETAIL

2019 2020Buildings, Land & Equipment ‐ Other

Design West Dodge Zone 3 Pump Station 500,000$

Total Buildings, Land & Equipment ‐ Other 500,000$

RepumpingPurchase and Install Variable Speed Drives at 3 Pump Stations 750,000$ 350,000$ Install Fire Alarm Systems at 8 Remaining Pump Stations 200,000 Install 6 Pressure Monitoring Points at 8 Remaining Pump Stations 150,000 Various Repairs at Cornhusker Pump Station 100,000 All Other < $100,000 individually 182,000

Total Repumping 1,382,000$ Construction Machines

(4) Kubota Backhoe Loaders with Trailers for Construction

(1) Bore Rig JT25 for Construction (WI R)

(2) JD410 Backhoe Loaders for Construction

(1) Replace Hydraulic I nground Truck Lift for Transportation

(3) Vacuum Excavators (2 for Construction; 1 for Water Distribution)

(4) Vibratory Plows for Construction

(2) JD310 Backhoe Loaders for Water Distribution

(3) Skid Steer Loaders for Construction

(1) JD410 Backhoe Loader for Construction (WI R)

(1) Mini Excavator Rubber Track for Construction (WI R)

All Other< $100,000 individually

Total Construction Machines

Furniture, Equipment and Miscellaneous Wholesale Water Meter Rehabilitation (Measurement)

All Other< $100,000 individually

Total Furniture, Equipment and Miscellaneous

$ 400,000

400,000

335,000

325,000

270,000

240,000

230,000

220,000

162,000

138,000

307,000

$ 3,027,000

$ 150,000

324,695

$ 474,695

42

WATER DEPARTMENTPLANT ADDITIONS AND REPLACEMENTS

FUNDING SOURCES – “COLORS OF MONEY”($ in millions)

LINE NO DESCRIPTION

1

2

3

4

Mains

Water Construction Mains (WCM)

Water Cast Iron Main Replacement (WCI)

Waler Construction Relocation Mains (WCR)

Waler Construction Contract Mains (WCC)

5 Water Construction Developer Mains (WCD)

6 Water Construction Pioneer Main (WCP)

Other Distribution System Property

7 Replacement of Obsolete/Broken Hydrants

8 Replacement of Obsolete/Broken Valves

Buildings Land and Equipment

9 Buildings, Land and Equipment - Platte West

10 Buildings, Land and Equipment- Florence

11 Buildings, Land and Equipment - Platte South

12 Buildings, Land and Equipment-Other

13 Repumping

14 Construction Machines

15 Furniture, Equipment and Mscellaneous

16 Salvagg Credits on Construction Machinesffransfers

Total Plant Additions and Replacements

Variance: 2017 Budget vs_ 2016 Budget

Reimbursable Projects Included Above**

2018 BUDGET

$ 4_0

12_4

2_2

6_2

0_2

5_6 30_6

0_3

0-4 0-7

u 16_3

2-7

3_8

1-7

0-7 26_3

{0-1}

$ 57.5

$ 10_8

2018 2019 ACT/EST BUDGET

$ 4_0 $ 3_1

8_2 12_0

2_8 1-8

11_9 7_9

0_3 0_3

6_6 5-4 33_8 30_5

0_3 0_3

0-4 0-4 0-7 0-7

0-7 1-0

15_3 18_5

0_8 2_6

1-1 0_5

0_1 1-4

1-3 3_0

0_6 0_5 19_9 27_5

{0-1} {0_1}

$ 54.3 $ 58.6

$ 1-1

$ 11-2 $ 11-3

* Bond issuance "MIi result in incremental bond carrying costs (principal and interest payments) to be funded by Service/Commodity rates

** Components of certain main types are paid for by customers/developers.

*

FUNDING SOURCES Primary I secondary I Tertiary

~Jr ·~ I· . = •

• ~ ...,..,,.., • .,

, ____, • ':1

~ .

.......... • • l'.!D~l ... • • • •

I· .I

"Colors of Money":

Costs recovered via Impact Fees; various categories of main expenditures analyzed to determine fee (assessed based on meter size for new water service connections)_

Funded by "Water Infrastructure Replacement" charge.

I· Funded by Service/Commodity rates.

I • . L l Funded by customers/developers - costs are not incurred unless requested by a customer/ developer; MUD sometimes serves as Pioneer main "developer'', in which case, costs are recovered over time as connections occur to the Pioneer main.

1·• Funded via bond issuances; debt principal and interest payments funded by Service/Commodity rates .

42


Gas Department


WE'LL BE THROUGH HERE SHORTLY THIS NEW BAI MAIN WILL PROVIDE

IETTH SERVICE TD THIS HH

MAIN TYPES INCLUDED IN CAPITAL EXPENDITURES BUDGETDEFINITIONAL INFORMATION – GAS

44

GCM Main ‐ Gas Construction Mains

GCI Main ‐ Gas Cast Iron Main Replacement (Infrastructure)

GCR Main ‐ Gas Construction Relocation

GCC Main ‐ Gas Construction Contract

GRM Main ‐ Gas Revenue MainA Gas main installed under a contract where an allowance for contribution‐in‐aid of construction is based on incremental net income. If 10 year revenue analysis determines that cost will be recovered, there is no contribution.

Construction is necessary for improvement and betterment of the system and may or may not make service available to an unserved area. All costs are borne by the District.

Replacement of cast iron infrastructure mains.

A relocation job required because of a highway, bridge or sewer construction project that involves distances greater than 25 feet. Relocation of less than 25 feet is maintenance, and charged to expense (and therefore, not reflected in the capital budget).

The extension or relocation of a main that is requested by a customer; District costs are reimbursed by the "requestor".

45

GAS DEPARTMENTFIVE YEAR PROJECTION OF PLANT ADDITIONS AND REPLACEMENTS

($ in millions)

LINE 2018 2018 2019 2020 2021 2022 2023NO DESCRIPTION BUDGET ACT/EST BUDGET ESTIMATE ESTIMATE ESTIMATE ESTIMATE

Mains1 Gas Construction Mains (GCM) 2.0$ 1.1$ 2.0$ 1.5$ 1.2$ 1.2$ 1.2$ 2 Gas Cast Iron Main Replacement (GCI) 12.1 11.3 11.6 11.8 12.2 12.6 13.43 Gas Construction Relocation Mains (GCR) 1.0 2.4 1.5 1.5 1.6 1.6 1.75 Gas Revenue Mains (GRM) 2.1 2.6 2.8 1.8 1.8 1.8 1.8

Total Mains 17.2 17.4 17.9 16.6 16.8 17.2 18.1

6 Replacement of Small Gas Valves 0.1 0.1 0.1 0.1 0.1 0.1 0.1

Other Distribution System Property7 Metering Equipment 2.1 1.8 2.0 2.1 2.1 2.2 2.38 New Services 3.5 2.6 2.9 3.0 3.1 3.1 3.29 Leaking Service Replacement 2.6 2.2 2.4 2.2 2.1 1.9 1.810 GIR Service Replacements (MUD) 4.6 5.4 5.1 5.3 5.4 5.6 5.711 GIR Service Replacements (Contracted) 3.8 3.5 3.9 3.6 4.3 4.5 4.612 Regulator Stations & Equipment 0.5 0.3 0.4 0.4 0.4 0.5 0.5

Total Other Distribution System Property 17.1 15.8 16.7 16.6 17.4 17.8 18.1

Buildings, Land and Equipment13 * Buildings, Land and Equipment - LNG/Propane 5.4 2.8 2.7 3.7 5.2 5.0 5.014 Buildings, Land and Equipment - All Other 2.3 0.9 2.5 0.1 15 Information Technology Equipment 2.3 1.6 3.2 2.0 1.9 1.8 1.716 Motor Vehicles 3.0 2.4 4.0 4.1 2.6 2.7 2.717 Furniture, Equipment and Miscellaneous 0.9 0.7 1.3 0.9 0.9 1.0 1.0

Total Buildings, Land and Equipment 13.9 8.4 13.7 10.8 10.6 10.5 10.4

Major System Retirements18 Service Piping Abandonments 0.6 0.6 0.6 0.6 0.5 0.5 0.4

Salvage Credits on Motor Vehicles (0.1) (0.1) (0.1) (0.1) (0.1) (0.1) (0.1)

Total Plant Additions and Replacements 48.8$ 42.2$ 48.9$ 44.6$ 45.3$ 46.0$ 47.0$

Gas Cost Adjustment recovered in Projects above * 4.0$ 3.0$ 3.8$ 3.7$ 5.2$ 5.0$ 5.0$

Gas cast iron mains/services to be abandoned:Dollars 20.5$ 20.2$ 20.6$ 20.7$ 21.9$ 22.7$ 23.7$ Miles 40 40 40 40 40 40 40


Buildings, Land & EquipmentPropane Logging, Casing Sleeve, Pump Replacement 1,500,000$ Replace Roof on Construction Center 1,500,000 LNG Tank Top Modifications 800,000 LNG Plant Security Fencing 370,790 Operating Center Security Fencing 347,397 District Security & Emergency Operations Center 300,000 Remodel Operating Center Stairwells and First Floor Halls 123,971 LNG Vaporization Study 100,000 Exterior Lighting for Operations and Construction Centers 100,000 All Other < $100,000 individually 126,000

Total Buildings, Land & Equipment 5,268,158$

46

GAS DEPARTMENT2019 PROJECT DETAIL

2019 2020 2021

Information Technology SuccessFactors Employee Central (Benefits/Workforce) 700,000$ 700,000$ SAP BPC (Business Process Consolidation/Planning) 475,000 Network Switch Replacement 335,000 EHSM (Environmental, Health, and Safety) 300,000 Platte West SCADA (Supervisory Control and Data Acquisition) Upgrade and Hardware Replacement 275,000 SAP HANA Platform Implementation 200,000 1,300,000 1,000,000SAP CRM (Customer Relationship Management) data model 150,000 SCADA Central Historian 150,000 SCADA Network Redundancy and Segmentation 140,000 MCF Upgrade / Features 100,000 All Other < $100,000 individually 334,401

Total Information Technology 3,159,401$

Buildings, Land & Equipment Propane Logging, Casing Sleeve, Pump Replacement $ 1,500,000

Replace Roof on Construction Center 1,500,000

LNG Tank Top Modifications 800,000

LNG Plant Security Fencing 370,790

Operating Center Security Fencing 347,397

District Security & Emergency Operations Center 300,000

Remodel Operating Center Stairwells and First Floor Halls 123,971

LNG Vaporization Study 100,000

Exterior Lighting for Operations and Construction Centers 100,000

All Other< $100,000 individually 126,000

Total Buildings, Land & Equipment $ 5,268,158

47

GAS DEPARTMENT2019 PROJECT DETAIL

2019 2020 2021Motor Vehicles

(4) Tandem Axle Dump Truck Chassis 640,000$ (4) CNG F550 Valve Turner Trucks with Rear Turner for Water Distribution 480,000 (4) CNG Crew Cab Crew Trucks for Construction 410,000 410,000 (1) CNG Tandem Axle Vacuum Excavator Truck for Construction (WIR) 400,000 (3) CNG Single Axle Dump Trucks for Construction 300,000 180,000 (1) CNG Bottle Trailer 250,000 (6) 1/2 Ton Pickups for Various Departments 240,000 (1) Crew Truck Body and Crane 235,000 (1) CNG Tandem Axle Dump Truck for Construction (WIR) 200,000 (3) E450 Cube Vans for Field Service 180,000 (4) Trailers for Construction 120,000 All Other < $100,000 individually 582,500

Total Motor Vehicles 4,037,500$

Furniture, Fixtures and EquipmentMetretek ‐ Upgrade metering system for large interruptible and firm gas customers 140,000$ 117th & Fort Propane Air Simulator 140,000 LNG Flow Meters Out of Plant 100,000 Miscellaneous Tool Replacement > $1,000 100,000 All Other < $100,000 individually 819,700

Total Furniture, Fixtures and Equipment 1,299,700$

48

GAS DEPARTMENTPLANT ADDITIONS AND REPLACEMENTS

FUNDING SOURCES – “COLORS OF MONEY”($ in millions)

LINE 2018 2018 2019 NO DESCRIPTION BUDGET ACT/EST BUDGET

Mains

1 Gas Construction Mains (GCM) $ 2.0 $ 1.1 $ 2.0

2 Gas Cast Iron Main Replacement (GCI) 12.1 11 .3 11.6

3 Gas Construction Relocation Mains (GCR) 1.0 2.4 1.5

4 Gas Construction Contract Mains (GCC)

4 Gas Revenue Mains (GRM) 2.1 2.6 2.8 17.2 17.4 17.9

5 Replacement of Small Gas Valves 0.1 0.1 0.1

Other Distribution System Property

6 Metering Equipment 2.1 1.8 2.0

7 New Services 3.5 2.6 2.9

8 Leaking Service Replacement 2.6 2.2 2.4

9 GIR Service Replacements (MUD) 4.6 5.4 5.1

10 GIR Service Replacements (Contracted) 3.8 3.5 3.9

11 Regulator Stations Infrastructure

11 Regulator Stations & Equipment 0.5 0.3 0.4 17.1 15.8 16.7

Buildings, Land and Eguipment

12 Buildings, Land and Equipment - LNG/Propane 5.4 2.8 2.7

13 Buildings, Land and Equipment - All Other 2.3 0.9 2.5

14 Information Technology Equipment 2.3 1.6 3.2

15 Motor Vehicles 3.0 2.4 4.0

16 Furniture, Equipment and Miscellaneous 0.9 0.7 1.3 13.9 8.4 13.7

MajQr System Retirements

17 Service Piping Abandonments 0.6 0.6 0.6

Salvaae Credits on Motor Vehicles (0.1) (0.1) (0.1)

Total Plant Additions and Replacements $ 48.8 $ 42.2 $ 48.9

Variance: 2017 Budget vs. 2016 Budget $ 0.1

GCA Recoverable Projects Included Above * $ 4.0 $ 3.0 $ 3.8


FUNDING SOURCES

Primary Secondary

• . l:ill ~ I • • .

13:ir-.:.I

I:::«• . • ; -• . . ·-• . ~ • . . • ..

• ,

~

• .'.,

.

~ • I~

• I . • . . -~ • • .

13:i "I . • l:J

ll'! r.r :JI

"Colors of Money'':

l3J Funded by Service/Commodity rates.

Funded by "Gas Infrastructure Replacement" charge.

Funded by addition to fixed rates (Gas Cost

Adjustment) related to operational "peaking"

expenditures at LNG and propane caverns. Not

charged to interruptible customers.

48

METROPOLITAN UTILITIES DISTRICT Committee Meetings · ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES Mr. Frost moved to approve Management's recommendations with regard to

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