METROPOLITAN UTILITIES DISTRICT Committee Meetings · 2018-03-07 · Mr. Keep invited Mr. McGowan...

METROPOLITAN UTILITIES DISTRICT

Committee Meetings

8:15 a.m. March 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. Acceptance of Contracts and Payment of Final Estimate [Ron Reisner, SVP & Chief

Operations Officer] – Tab 6 3. Bids on Materials and Contracts [Jon Zellars, Director - Purchasing] – Tab 7

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

Accounts, Expenditures, Finance and Rates – McGowan, Begley, Dowd 1. Earth Day Promotional Rate for Compressed Natural Gas (CNG) [Dave DeBoer, VP –

Rates & Regulatory Affairs] – Tab 10

Judiciary and Legislative – Dowd, Cavanaugh, Howard 1. Second Legislative Report for 2018 [Rick Kubat, Governmental Relations Attorney] –

Tab 11 Personnel – Begley, Frost, Friend

1. Promotions and Ratifications [Bonnie Savine, VP - Human Resources] – Tab 12 2. Consideration of Proposed Collective Bargaining Agreement [Bonnie Savine, VP -

Human Resources] - Tab 13 3. SPA Salary Structure Adjustment [Bonnie Savine, VP - Human Resources] - Tab 14

Committee of the Whole 1. State of the District [Scott Keep, President] – Tab 20


Regular Meeting 9:00 a.m. March 7, 2018

AGENDA

1. Roll Call 2. Open Meetings Act Notice 3. Pledge of Allegiance 4. Approval of Minutes – Committee Meetings & Regular Board Meeting for

February 7, 2018

CONSTRUCTION & OPERATIONS

5. 6. 7. 8.

Capital Expenditures Acceptance of Contracts and Payment of Final Estimates Bids on Materials and Contracts Notice of Purchases Between $25,000 and $50,000

SERVICES & EXTENSIONS

9.

Main Extensions

ACCOUNTS,

EXPENDITURES, FINANCE &

RATES

10. Earth Day Promotional Rate for Compressed Natural Gas (CNG)

JUDICIARY & LEGISLATIVE

11. Second Legislative Report for 2018

PERSONNEL 12.

13. 14.

Promotions and Ratifications Consideration of Proposed Collective Bargaining Agreement SPA Salary Structure Adjustment

BOARD 15. 16.

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


Minutes of Committee Meetings

February 7, 2018

Vice President of Safety and Security 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 evacuation of the building.

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

call vote, the following members were present:

Jim Begley Tom Dowd Dave Friend Jack Frost

Mike McGowan Gwen Howard

Tim Cavanaugh Scott Keep, Secretary and President

Also present were various members of the staff, representatives from IBEW #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 Mr. Reisner reviewed the proposed capital expenditures, as outlined in his letter

to the Committee dated January 26, 2018.

Mr. Zellars reviewed the proposed bids on materials and contracts as outlined in his letter to the Committee dated January 26, 2018.

Services and Extensions~ Howard. Friend, Begley Mr. Reisner reviewed his letter to the Committee dated January 24, 2018

regarding proposed main extensions.

Committee Meetings & Regular Board Meeting February 7, 2018

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Insurance and Pensions - Howard. McGowan, Begley Ms. Schneider introduced Sterling Gabbitas, Senior Investment Consultant for

Vanguard Institutional Advisory Services, who reviewed 2017's investment performance for the District's retirement plan and other post-employment benefits plan. Mr. Gabbitas reported that the net rate of return on these funds remains high and the economy remains strong, despite the recent week's stock market drop. He advised that Vanguard will continue to adhere to its long-standing investment policy favoring high quality investments and adherence to the agreed upon asset allocation mix for each of the plans, despite the likelihood of future market volatility.

Accounts. Expenditures. Finance & Rates - McGowan, Beglev. Dowd Mr. Schaffart reviewed the Reimbursement Resolutions as outlined in his letter

dated January 29, 2018. The resolutions will authorize the District to use proceeds from the anticipated bond issuances approved by the Board in the District's 2018 budget, and apply those proceeds to reimburse the District for qualified expenditures incurred during the following time periods: (1) sixty days prior to the date of the reimbursement resolutions, (2) from the date of the resolutions to the dates of the bond issuances, and (3) from the date of bond issuance until bond proceeds are fully expended. The previously approved bond issuances relate to the ongoing Florence Capital Improvement and Renovation Plan project and the cast iron gas main replacement project. It is anticipated the Water Department bond will fund Florence Capital Improvement projects from mid-2018 through 2021; the Gas Department bond will fund expenditures on cast iron gas main replacement exceed the associated infrastructure replacement revenue stream over the 2018 through 2020 time period.

Judiciary and Legislative- Dowd, Cavanaugh, Howard Mr. Kubat reported on several legislative bills outlined in his First Legislative

Report for the 2018 Legislative Session dated January 30, 2018. In addition to requesting approval of the positions recommended by Management, he also requested that an Addendum be added recommending the Board take a position in opposition to two legislative bills, LB 1108 and LB 1084, specifically and limited to the portion that proposes increases in sales taxes. Both the letter to the Committee and the Addendum would then be voted on by the Board at the regular Board Meeting.

Mr. Keep invited Mr. McGowan to relay his concerns to the Board about the City of Omaha's escalating sewer fees which, by mutual agreement, appear on MUD billing statements. These fees will continue to escalate far beyond its current level in the years to come, gradually comprising higher and higher portions of a customer's total bill. He distributed a handout demonstrating the projected percentage increase of the total water bill due to sewer fees based on historical data, rising from 30% in 2006 to 70% in 2027. Mr. Kubat added that the Legislature's Revenue Committee was recently provided information by the City of Omaha comparing the sales tax revenue collected by the State of Nebraska for sewer fees prior to the implementation of the City of Omaha's sewer separation project, an unfunded federal mandate, and the substantial sales tax revenue collected as a result of the CSO project.


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Personnel - Begley, Frost, Friend Ms. Savine reviewed her letter to the Committee dated January 26, 2018

regarding District employee promotions and new hire ratifications. She also reported the total current employee count is 833 as compared to last year's count of 842 total employees.

Chairman Friend asked if any Board Members or any member of the public had any further comments to share. Mr. McGowan inquired as to the impact of the colder weather on District gas sales. Mr. Keep responded that gas sales revenue was 4% higher than the budgeted amount. Chairman Friend announced the Committee meetings were concluded and the Board members would reconvene for its regular Board Meeting at 9:25 a.m.

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ffJ«x1!~ Scott L. Keep, Secretary and President


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Minutes of Regular Board Meeting

February 7, 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 9:25 a.m. on February 7, 2018.

Advance notice of the meeting was posted on the first floor of the Headquarters Building from January 3, 2018 to February 7, 2018. Notice of the meeting was published in the Omaha World~Herald on Sunday, January 28, 2018. The agenda of the meeting was available for public inspection at the office of the Secretary and President and delivered to Board Members on January 30, 2018. The agendas and accompanying board documents were posted to the M.U.D. website on January 31, 2018.

AGENDA N0.1 ROLLCALL

Chairman Friend called the meeting to order at 9:25 a.m. On a roll call vote, the following members were present:

Jim Begley Tom Dowd Dave Friend Jack Frost

Mike McGowan Gwen Howard

Tim Cavanaugh Scott Keep, Secretary and President

Also present were various members of the staff, representatives from IBEW #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 reminded 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.


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AGENDA N0.4 APPROVAL OF MINUTES FOR COMMITTEE MEETINGS AND REGULAR BOARD MEETING FOR JANUARY 3. 2018

Mr. Frost moved to approve the minutes for the Committee Meetings and regular Board Meeting for January 3, 2018, which was seconded by Mr. Cavanaugh and carried on a roll call vote.

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

MINUTES FILE DOCUMENT NO. 137715

AGENDA NO.5 CAPITAL EXPENDITURES

Mr. Frost moved to approve the capital expenditures as outlined in Mr. Reisner's letter to the Committee dated January 26, 2018 which was seconded by Ms. Howard and carried on a roll call vote.



AGENDA N0.6 BIDS ON MATERIALS AND CONTRACTS

Mr. Frost moved for approval of Management's recommendations with regard to bids for materials and contracts as described in Mr. Zellars' letter to the Committee dated January 26, 2018. The motion was seconded by Mr. Begley and carried on a roll call vote.


AGENDA NO.7 MAIN EXTENSIONS


Ms. Howard moved to approve the proposed main extensions as outlined in the Jetter from Mr. Reisner dated January 24, 2018, which was seconded by Mr. Cavanaugh and carried on a roll call vote.




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AGENDA NO.8 REIMBURSEMENT RESOLUTIONS

Mr. McGowan moved to approve the Reimbursement Resolutions as outlined in Mr. Schaffart's letter to the Committee dated January 29, 2018 which was seconded by Mr. Begley and carried on a roll call vote.



AGENDA NO.9 FIRST LEGISLATIVE REPORT- 2018 SESSION

Mr. Dowd moved to approve Management's recommended positions on legislative bills identified in the First Legislative Report dated January 30, 2018 and an Addendum which recommended opposition to two additional legislative bills, LB 1108 and LB 1084. The motion was seconded by Ms. Howard and carried on a roll call vote.



AGENDA N0. 10 PROMOTIONS AND RATIFICATIONS

Mr. Begley moved to approve the promotional increases and ratifications as outlined in Ms. Savine's letter to the Committee dated January 26, 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 whether any Board Members had any further comments they would like to offer. There were none. Chairman Friend asked whether there were any members of the audience who wished to share any comments. There were none.

AGENDA NO. 12 CLOSED SESSION - PENDING LITIGATION, REAL ESTATE AND COLLECTIVE BARGAINING

Mr. Begley moved to go into Closed Session for the purpose of discussing pending litigation, real estate matters and collective bargaining. The motion was seconded by Ms. Howard and carried on a roll call vote.


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Mr. Begley left the Closed Session meeting at 12:30 p.m.

At 12:35 p.m., Mr. Frost moved to return to Open Session which was seconded by Mr. Cavanaugh and carried on a roll call vote.

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


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

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


The meeting was adjourned at 12:37 p.m.

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Committee Meetings & Regula r Board Meeting February 7, 2018

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METROPOLITAN UTILITIES DISTRICT Inter-Department Communication

February 22, 2018

Subject: CAPITAL EXPENDITURES

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

Presidents

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

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

SYSTEM IMPROVEMENTS

1. 100054000994 and 100068000975- $65,000- Replace 1,270 feet of 2- and 4-inch gas mains in Ridgewood Avenue, Woolworth to Poppleton Avenues. This work is required to eliminate conflicts with proposed storm sewer construction as part of a City of Omaha project. This work is not reimbursable as the mains are in public right-ofway. There will be 14 residential gas services replaced at an estimated cost of $42,000.

2. 100054000993 and associated job numbers - $520,000 -Abandon 1,940 feet of 4- and 6-inch gas mains and below ground regulator station, and 970 feet of 8-inch water main. Install 2,045 feet of 4- and 6-inch gas mains and above ground regulator station, 150th Street and West Dodge Road. The gas and water main work is being done to eliminate conflicts with proposed work associated with the West Farm Subdivision. Approximately $390.400 of the requested work is reimbursable as this is a private project. The regulator station work, which will be at District expense of approximately $129,000, will be done in conjunction with the developer's project and move the regulator to an above ground location.

BUILDINGS, PLANTS AND EQUIPMENT

1. 100083001047 - $440,000 - Professional engineering services for the design of the Platte South well field electrical distribution system replacement. The existing well field electrical distribution system was placed into service when the plant went online in 1968. Due to its age and absence of redundancy, a study was completed in 2016 to evaluate its existing physical condition, estimate its remaining lifespan and provide budgetary replacement costs. The study determined that the existing electrical distribution system was near the end of its useful life and recommended replacement. This request is for approval to hire an engineering firm to perform the design of the replacement system, and develop construction drawings and specifications. In order to keep the plant fully operational, this project will likely take place in several phases with construction beginning

E0121328

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in late 2018 and completion anticipated for early 2020 and prior to the high pumping season.

A request for proposals process was utilized to review and select a consultant for this project. Three engineering firms provided proposals and were interviewed by a District committee made up of key project personnel from the Water and Engineering departments. HDR Engineering provided the best, most complete and detailed proposal and is being recommended to provide the necessary design services. Management is requesting that approval of this expenditure will also authorize the President to enter into a professional services agreement with HDR Engineering to provide the project's design.

2. 1 00087000592 - $440,000 - Purchase two replacement backhoe loaders for Construction. The requested backhoe loaders will replace similar machines that have reached a point where they are no longer economical to maintain. The new machines will be used by our Construction main gangs and replace 2007 John Deere models.

3. 100084001226 - $800,000 - Cavern pump and well casing inspections, 1171

h Propane Air Plant. The below ground propane cavern was constructed in the early 1960s and stores propane for use during peak shaving operations. This project will provide inspection services for two propane pumps and their associated well casings, and replacement of a deep well water pump and inspection of its casing. Management is requesting that approval of this expenditure will also authorize the President to enter into a professional services agreement with WSP USA for design, inspection, construction and overall project management.

Approved:

g/~ 7:/1(~ Scott L. Keep President

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

-2-


February 23, 2018

Subject: ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES

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


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

Contract Board Amounts Approval Date *Unit Price Bid Actual Final

a. Est. 2 ~Kersten Construction, 100055001203, Install water June 7, 2017 $207,036.00 $201 ,909.00 $15,226.88 mains in Pebblebrook 2, 168th and Doreen Sts.

. . Comments: There was a reduction 1n umt quant1t1es of $5, 127.00 .

Board Amounts

Contract Consultant Approval Date Agreement Actual Final

b. Est. 13 ~ JEO Consulting Group, 100083001018, Professional engineering services for the April 28, 2016 $39,600.00 $39,600.00 $891.00 design of the roof replacement, 36th and Edna pump station.

Comments: All design work has been completed by the consultant, ts acceptable and 1n compliance with the scope of work.

Contract Board Amounts

Approval Date Bid Actual Final

c. Est. 5 ~ Corrado Construction, 100083001019,Roof replacement, 36th and Edna pump September 7, 2016 $219,513.00 $281,464.70 $70,683.45

station.

Comments: There were three change orders that resulted in a total increase of $61,951.70. These increased costs were due primarily to structural modifications to the building including an additional bond beam and reinforcement, relocating structural columns, unexpected structural steel modifications, and additional grouting.

*Based upon Engineering's estimated unit quantities.~

Approved: ~. · · , .

.-J~/1/ Ro K.~ ~~ ~ /) 7 Senior Vice President, Chief Operations Officer Scott L. Keep (402) 504~711 0 President

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February 23, 2018

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

To: Construction & Operations Committee cc: All Board Members, Keep, Doyle, Mendenhall, Reisner, Schneider, and all Vice

Presidents

From: Jon A. Zellars, Director, Purchasing

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

WATER/GAS MAIN CONTRACTS

lnstall1 ,360' of 24" Ductile Iron Water Main & 1 ,500' of 12" Ductile Iron Water Main in 180th Street from Grand Avenue to Fort Street & Fort Street from 177'h Street to 1801h Street 100057000441 100057000442 WP 1525 Engineering Estimate: $375,575.00

Bids Sent I Rec'd

23/4

Bidder

Kersten Cedar Thompson Judds Bros.

Amount Bid

$400,168.00 433,328.00 495,135.00 503,365.00

(C&A for 100057000441 and 100057000442 approved July 12, 2017 in the amount of $529,287.00)

Install Water Mains in Sagewood Valley, North 180th & Fort Streets 100055001240 100057000447 WP 1560 Engineering Estimate: $270,553.00

23/6 Kersten $246,288.00 Cedar 249,090.50 Thompson 266,995.00 A. Raymond Plumbing 274,519.70 Compass Utility 279,689.53 Tab 284,905.00

(A C&A in the amount of $374,473.00 will be presented to the Board on March 7, 2018 for approval.)

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Install Water Mains in Indian Creek Commercial Plaza, 203rd Street from Ames Avenue to Laramie Road 100055001241 WP 1561 Engineering Estimate: $104,698.00

23/6 Kersten $85,775.00 Compass Utility 85,953.56 Cedar 87,945.00 A. Raymond Plumbing 88,840.00 Thompson 92,825.00 Tab 98,840.10


Install Water Mains in Summer Hill Farm, 23/5 Cedar $500,901.00 168th & Reynolds Streets Kersten 504,389.50 100055001244 100057000453 Tab 539,130.80 WP 1568 Thompson 556,955.00 Engineering Estimate: $552,330.00 A. Raymond Plumbing 569,850.50 (A C&A in the amount of $768,781.00 will be presented to the Board on March 7, 2018 for approval.)

Install Water Mains in Belle Lago, 48th Street & Lawnwood Drive 100055001245 WP 1569 Engineering Estimate: $215,050.00

23/5 Kersten $174,342.00 Cedar 177,023.50 A. Raymond Plumbing 195,460.00 Compass Utility 198,120.50 Tab 203,291.70


Install Water Mains in Falling Waters, 198th & Jefferson Streets 100055001247 WP 1571 Engineering Estimate: $248,733.00

23/6 Kersten $209,567.00 Cedar 215,102.00 Tab 220,253.90 A. Raymond Plumbing 234,925.00 Compass Utility 235,355.83 Thompson 251 ,205.00


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OTHER

Bids Sent Item I Rec'd Bidder

Three (3) Heavy Duty Commercial 12/1 Husker Auto Cutaway Cab, Chassis & Cargo Body 100088000738 *Bid rejected, doesn't meet specifications

Two (2) Heavy Duty Rubber Tire, 4x4,LoaderlBackhoe 100087000592

12/2 Murphy Tractor NMC Cat

Amount Bid

$38,497.00*

$375,991.00 431,284.00


Construction Center Cameras 1/1 Prime Communications $39,311.02 100090001317 (C&A for 100090001317 approved February 12, 2018 in the amount of $49,800.00)

Construction Phase Inspection Services for Contracted Water Mains Extension #4 *Estimate based on 2017 billing (February 25, 2018 to February 24, 2021)

Resilient Seated Gate Valves (May 1, 2018 to April 30, 2019)

1/1

ANNUAL

I Rec'd

14/5

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JEO Consulting

Bidder

Kennedy Valve ClowValve M&H Valve Mueller Water Technology

$215,000.00*

Amount Bid

$466,764.20 486,644.24 496,381.50 535,388.77 546,153.30

Concrete & Asphalt Pavement Repairs at Various M.U.D. Construction Sites Extension #3 (June 1, 2018 to May 30, 2019)

of£?:;{~ Scott L. Keep President

-

1/1 Swain Construction $205,865.00

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February 23, 2018

Subject: NOTICE OF PURCHASES BETWEEN $25,000 - $50,000

To: All Board Members cc: Keep, Doyle, Mendenhall, Reisner, Schneider and all Vice Presidents

From: Jon A. Zellars, Director, Purchasing

During the month of February the following item was purchased or contracted for and is being submitted to the Board to be placed on file. The purchase or contract was initiated with the low bidder which is balded and listed first.

Soil, Concrete and Subsurface Exploration and Testing Services at Various M.U.D. Construction Sites Extension #2 (May 1, 2018 to April 30, 2019)

Lawn Mowing Services for Various M.U.D. Water Facilities (2018 Season)

Lawn Mowing Services for LNG & Propane Air Facility (2018 Season)

rs Director, Purchasing (402) 504-7253

Approved:

Bids Sent I Rec'd

1/1

17/5

17/6

Bidder

ISG & Associates

A-Plush Lawns Brad Taylor, Inc. Royal Lawns, Inc. Larson Enterprises Smithers, Inc.

Royal Lawns A-Plush Lawns Nebraska's Best Lawn Brad Taylor, Inc. Larson Enterprises Smithers, Inc.

Amount Bid

$44,015.00

$43,740.00 48,653.64 66,320.00 69,910.00

125,940.00

$49,612.00 62,548.00 77,290.00 86,125.20 97,410.00

193,490.00

Debra A. Schneider el~;,r~ Scott L. Keep President Senior Vice President, CFO

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1.

2.

3.


February 22, 2018

Subject: MAIN EXTENSIONS

To: Services and Extensions Committee cc: All Board Members, Keep, Doyle, Mendenhall, Schneider and all Vice Presidents


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

WATER

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

100055001241 $159,996 $159,996 Pioneer Contribution - 30.081

$190,077 $0 $0

This main is being installed to provide domestic water service and fire protection to eight commercia/lots in Indian Creek Commercial Plaza, 20~ Street and Ames Avenue. There are pioneer main fees in the amount of $30,081 due to the existing 24- and 30-inch water mains in 204th and 19Z"d Streets. (City of Omaha zoning, Gottsch Enterprises)


100055001240 $270,663 $270,663 100057000447 103,810 103,810

Pioneer Contribution - 58.703 $374,473 $433,176 $0 $0

This main is being installed to provide domestic water service and fire protection to 129 single-residence lots in Sagewood Valley Subdivision, 1Bdh and Fort Streets. There are pioneer main fees in the amount of $58, 703 due to the existing 24- and 30-inch water mains in 18dh Street and West Maple Road. (City of Omaha zoning, Celebrity Homes)

Job Number Project Cost Applicant Construction

M.U.D. Cost Contribution by Applicant

100055001244 $447,134 $447,134.00 100057000453 321,647 321,647.00

Pioneer Contribution - 69,091.00 Connection Charges - 11,835.80

$768,781 $849,707.80 $0 $0

This main is being installed to provide domestic water service and fire protection to 160 single-residence lots in Summer Hill Farm Subdivision, 168th and Reynolds Streets. There are pioneer main fees in the amount of $69,091 due to the existing 36-inch water mains in State Street and connection charges of $11,835.80. (County of Douglas zoning, KMS-168 LLC)

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WATER (con't)


100055001245 $297,870 $297,870 Pioneer Contribution - 69,975

$367,845 $0 $0 4.

This main is being installed to provide domestic water service and fire ~rotection to 80 single-residence Jots and one multi-residence lot in Belle Lago Subdivision, 48 Street and Lawnwood Drive. There are pioneer main fees in the amount of $69,975 due to the existing 12- and 16-inch water mains in Capehart Road and 4dh Street. (City of Bellevue zoning, The Home Company)


100055001247 $357,112 $357,112 Pioneer Contribution - 12.450

$369,562 $0 $0 5.

This main is being installed to provide domestic water service and fire protection to 87 single-residence lots in Falling Waters Subdivision, 19dh and Jefferson Streets. There are pioneer main fees in the amount of $12,450 due to the existing 36-inch water main in Harrison Street. (City of Omaha zoning, BSR)

GAS

Job Number Cost Revenue Credits

Total Deficiency Estimated Equivalent Applicant Other

100060001287 $58,968 $43,521 $34,023 $0 $58,968 $9,498

1. This main is being installed to provide gas service to 15 commercial lots in Antler View Subdivision, 19~d Street and West Maple Road. Management is recommending oversizing 1,200 feet of approach main as a 4-inch main at an estimated District cost of $15,447. The developer has agreed to pay the cost of the deficiency. (City of Omaha zoning, 192 Maple, LLC)

Job Number Cost Revenue Credits

Total Deficiency Estimated Equivalent AppJicant Other

100060001290 $147,162 $105,851 $106,240 $0 $147,162 $0

2. This main is being installed to provide gas service to 128 single-residence lots in Indian Pointe Subdivision, 186'h Street and George Miller Parkway. Management is recommending oversizing 4,490 feet of approach main as a 4-inch main at an estimated District cost of $41,311. (City of Omaha zoning, FRK Development, LLC)

-2-

3.

GAS (con't)

Job Number Cost Revenue Credits Total Deficiency

Estimated Equivalent Applicant Other

100060001275 $130,209 $99,342 $122,840 $0 $0

This main is being installed to provide gas service to 148 single-residence lots in Spruce 180 Subdivision, 1801

h and Locust Streets. Management is recommending oversizing 2, 890 feet of approach main as a 4-inch main at an estimated District cost of $30, 867. (City of Omaha zoning, Spruce 180, LLC)

Approved:

e/dll~1!~ Scott L. Keep President

Ro K. Rei ner Senior Vice President, Chief Operations Officer (402) 504-7110


February 23, 2018

Subject: PROMOTIONAL RATE FOR EARTH DAY - CNG

To: AEF&R Committee cc: all Board Members; Keep, Mendenhall, Reisner, Schneider, Doyle and all

Vice Presidents

From: Kyle M. Bowman, Business Development Specialist

April 22, 2018 will mark the 48th anniversary of Earth Day. Since the opening of the District's Compressed Natural Gas (CNG) fueling stations, the Board of Directors has approved the CNG rate of $0.999 per gasoline gallon equivalent (GGE) on Earth Day in an effort to raise the awareness of the positive benefits of using CNG as a transportation fuel. The District continues to see support of CNG through fleets such as Premier Midwest Beverage, AmeriPride Linen, Papillion Sanitation, Gretna Sanitation, Backlund Plumbing and Metro Transit.

This year, we have reached out to Lincoln Airport Authority, Black Hills Energy, Stirk CNG, 1-80 Fuel, and Trillium CNG. As partners, we would like to promote this day as an Omaha/Lincoln Earth Day event.

Therefore, it is requested that the Schedule D, CNG Service Rate be changed to $0.999/GGE from 9:00 a.m. on April 22nd to 9:00 a.m. on April 23rd (the business day for selling CNG). This rate reduction is only applicable to natural gas compressed by the Metropolitan Utilities District, and includes all applicable federal and state taxes.

I am available to discuss further if you have any questions. This matter will be placed on the March 7, 2018 Committee Agenda for consideration and the Board Agenda for approval.

·/l~ L t, M. Bowman Business Development Specialist

Approved:

~7~ President

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February 27, 2018

Subject: SECOND LEGISLATIVE REPORT- 2018 SESSION

To: Judiciary and Legislative Committee

cc: All Board Members; Keep, Doyle, Mendenhall, Schneider, Reisner; all Vice Presidents; Nowka

From: Rick Kubat, Government Relations Attorney

The 60-day session is over half way complete, and the last day for Committee hearings was February 27, 2018. Senator, Committee and Speaker priorities have been determined, and controversial bills without a priority designation are unlikely to be debated by the full legislature this session.

2018 LEGISLATIVE BILLS

LB 693 (Blood)- Creates penalties and fines for using unmanned aircraft (drones) to fly over private property and near buildings to secretly peep or spy into any dwelling of any other person. LB 693 prohibits flying a drone at a height of less than three hundred feet above ground of critical infrastructure or 200 feet over the highest structure without permission to do so. There are drone-use exemptions provided for lawful criminal investigations, governmental operations, utility work, and commercial operators.

Board Pas: Neutral Status: Judiciary Committee, Hearing February 23, 2018

LB 740 (Lindstrom) - Allows vehicles and trailers owned by the District to maintain permanent license plates. LB 7 40 was introduced by Senator Lindstrom on behalf of the District for the simple efficiency of maintaining permanent plates on District vehicles and trailers.

Board Pos: Support Status: Transportation and Telecommunications Committee, Remains in

Committee

LB 758 (Hughes)- Allows Natural Resource Districts (NRD) that acquire private land for water augmentation for streamflow enhancement to voluntarily pay property taxes. LB 758 was introduced in response to the Nebraska Cooperative Republican Platte Enhancement Project (NCORPE). Prior to ENCORPE, the land was previously on the tax rolls as privately owned irrigated agriculture. Under NRD ownership, the majority of the property is now tax exempt because it is primarily used for the public purpose of water augmentation and is thus exempt. The ENCORPE project and a similar smaller project known as Rock Creek are used to meet interstate compact compliance by enhancing streamflow to the Republican River water basin. LB 758 as amended would

E0121328

Approved

allow NCORPE and Rock Creek to voluntarily pay current and previous year's property taxes. LB 758 is currently on general file.

Board Pos: Neutral Status: Final Reading

LB 763 (Harr) - Creates the criminal sanction of a Class I misdemeanor to knowingly obstruct or hinder a public power employee from performing lawful duties.

Board Pos: Support Status: Judiciary Committee, Remains in Committee

LB 808 (Harr) - Changes provisions relating to community gardens and seed libraries. LB 808 provides financial assistance for water related costs associated with community gardens. It requires a transfer of $100,000 from the Water Sustainability Fund to set up a grant program to assist community gardens with water hook-up fees, water usage fees, and water conservation efforts to be administered by the Nebraska Department of Agriculture. Senator Harr has indicated that if the proposed legislation passes, an amendment will be offered to strike current statutory language that provides the ability for community gardens to apply to water utilities for reduced or fixed water rates.

Board Pos: Neutral Status: Agriculture Committee, Remains in Committee, Designated as a

Committee Priority

LB 831 (Wayne)- Political subdivisions with legislative bodies to include the District may not pay its members more than two times the annual salary of a member of the state legislature. LB 831 sets a roughly $24,000 pay lid for qualifying elected officials.

Board Pos: Neutral Status: Government, Military and Veterans Affairs Committee, Remains in

Committee

LB 1011 (Harr)- Provides a duty for drivers approaching certain stopped vehicles on a roadway, to include utility vehicles using flashing lights, to exercise due care and to move one lane over when possible.

Board Pos: Support Status: Transportation and Telecommunications Committee, Remains in

Committee

LB 1021 (Schumacher)- Seeks to eliminate several agricultural related tax exemptions including water used for irrigated agriculture. Management's recommendation of opposition to LB 1031 is specific to the removal of the current CNG sales tax exemption for electricity used in the compression of natural gas for retail sale as a vehicular fuel. Additionally, management opposes the removal of the sales tax exemption currently provided for water used in manufacturing.

Board Pos: Oppose both the elimination of electricity CNG exemption and the exemption for water used in manufacturing.

Status: Revenue Committee, Hearing February 27, 2018

LB 1031 (Friesen) - Changes excavation notification and marking requirements, provides for large scale project planning meetings, rulemaking authority and cost allocation under the One-Call Notification System Act. LB 1031 would change One-Call notice requirements to include the excavator's e-mail address. The primary change provided for in the bill creates a definition of large projects and requires large project excavators to pay for locating costs and further requires a project planning meeting of excavators and utility operators. The State Fire Marshal would be charged with establishing regulations related to large scale projects.

Board Pos: Neutral Status: Transportation and Telecommunications Committee, Remains in

Committee

LB 1071 (Lindstrom) - Provides for a turn-back of a portion of state sales tax dollars collected for sewer and potable water services. The legislature would determine what percentage of the 5.5% of sales tax revenue collected would be sent back to assist municipalities and utilities with sewer and potable water infrastructure and replacement costs. Senator Thibedeau co-signed LB 1071.

Board Pos: Support Status: Revenue Committee, Remains in Committee

LB 1088 (Wayne) -Is a voluminous tax bill primarily dealing with, but not limited to, the state aid to education formula, taxation of internet sales, and property tax relief. It is brought to your attention because Section 31 of the bill would remove the current sales tax exemption for electricity used in the compression of natural gas for retail sale as a vehicular fuel. Management's recommendation of opposition is specific to the elimination of the current electricity exemption for CNG.

Board Pos: Oppose the elimination of electricity CNG exemption Status: Revenue Committee, Hearing February 27, 2018

LB 1115 (Murante) - the total population of political subdivisions for election and boundary purposes shall be established on the basis of population by the federal decennial census less the noncitizen population. If LB 1115 were to become law, the District could not take "noncitizen" population into consideration for District boundaries or subdivision determinations.

Board Pos: Neutral Status: Government, Military and Veterans Affairs Committee, Hearing February

27,2018

2017 CARRY OVER BILLS

LB 30 (Kolterman)- Proposes to require Omaha and Lincoln police and firefighter new hires are enrolled in cash balance plans. The effective date of when LB 30 would apply to new hires has yet to be determined. Proponents of LB 30 included the Platte Institute, Dave Nabity, Lincoln Independent Business Association, and a National pension reform organization. Numerous labor organizations opposed LB 30 including, but not limited to, Omaha and Lincoln police and firefighter associations, additional national and statewide labor entities, the Omaha City Council, the Omaha Police Chief, and several others. Senator Kolterman emphasized that his proposal was to assure solvency in current employee retirement plans and would only affect new hires. Opponents to the legislation emphasized that the fiscal condition of both Omaha and Lincoln pensions were significantly improving and on the path to being fully funded with additional employee contributions. Additionally, LB 30 would hinder recruiting in difficult hiring times, particularly for law enforcement.

Board position: Status:

Neutral Remains in the Retirement Systems Committee, Retirement Systems Committee priority bill

LB 127 (Groene}- Requires each public body to publish a public meeting notice in a newspaper of general circulation in each county of the public body's jurisdiction. LB 127, as amended, clarifies that the Omaha World Herald would be sufficient for notice to District constituents. The public body could also use additional methods of public notice and would also be required to record the alternative methods and dates of the public notice in the minutes.

Board position: Neutral Status: Placed on General File

LB 218 (Groene) - Places restrictions on the use of land and water used for augmentation projects to meet interstate compact compliance. LB 218 was introduced in response to the Nebraska Cooperative Republican Platte Enhancement Project (NCORPE}. In 2012, four Natural Resource Districts joined to procure roughly 19,000 acres in Lincoln County to retire irrigated lands for a ground water augmentation project to provide water to tributaries of the Platte and Republican Rivers in order to comply with interstate compacts. LB 218 requires several additional public notice requirements for the NCORPE project or for future similar augmentation projects. The bill is specific to augmentation projects for compact compliance. As currently drafted, LB 218 does not affect ground water pumping by municipal water suppliers.

Board position: Neutral Status: Remains in Natural Resources Committee

LB 305 (Crawford}- Creates the Paid Family Medical Leave Act for all employees in Nebraska to be operated by the Nebraska Department of Labor. Employees would be entitled to take up to 12 weeks of paid family medical leave for their own health or the birth or adoption of a child and up to six weeks of leave for the care of a family member. The program would start in 2020, and qualifying employees would be required to pay

into the program at a cost of no more than $2.00 per week. The program is mandatory for all employees. Eligibility begins for full-time employees after four or more consecutive weeks of work and 25 days for part-time employees. The program is funded by a payroll tax of up to one-half of one percent of employee wages as determined by the Commissioner of Labor. Claims for paid leave would be processed by the Commissioner of Labor. All other benefits due to the employee would accrue during the leave if the benefits are allowed to accrue for any other type of leave granted by the employer.

Board position: Neutral Status: Remains in Business and Labor Committee

LB 313 (Briese)- Increases Nebraska's current 5.5% state sales tax rate to 6.5% in order to provide additional dollars for property tax relief. LB 313 proposes to adjust specific earned income tax credits. The District's opposition to LB 313 is specific to the increased sales tax rate, which would be applied to some District material and input costs and the collective gas and water bill.

Board position: Oppose Status: Remains in Revenue Committee

LB 365 (Blood)- Proposes to change what a public body can charge for public record requests from non-residents. Allows public bodies to charge non-residents for the existing salary or pay obligations to the public officers or employees, including a charge for the services of an attorney to review the requested public records.

Board position: Support Status: Placed on General File

LB 410 (Smith)- Changes the Public Service Commission from five to seven members with staggered elections. The Governor would be allowed to initially appoint the two new additional Public Service Commissioners for their first term, and then Public Service Commissioners become subject to district elections.

Board position: Neutral Status: Remains in Transportation and Telecommunications Committee

LB 494 (Briese)- Broadens the public records exception to permit the withholding of public records, which could pose a threat to public safety or the security of critical energy infrastructure. LB 494 was amended to mirror definitions provided for under federal law.

Board position: Support Status: Placed on General File

LB 503 (Brewer) - Prohibits public employers from deducting union dues or assessments, except as required by an existing collective bargaining agreement. Future collective bargaining agreements could not contain a provision permitting public employers from deducting union dues or assessments.

Board position: Neutral Status: Remains in Business and Labor Committee

LB 510 (Ebke) - Prohibits political subdivisions from having installment contracts for purchases of real or personal properties which collectively exceed $25 million. Senator Ebke has indicated that LB 510 would not apply to gas supply contracts.

Board position: Neutral Status: Remains in Government, Military and Veterans Affairs Committee

LB 559 (Schumacher)- Prohibits credit card processors from charging exchange fees on specifically the sales tax portion of a bill. For example, if a county, MUD, or a business has a $100 transaction in the City of Omaha, the total charge would be $107 ($7 sales tax includes $5.5 state and $1 .5 city sales tax). LB 559 would prohibit the credit card processors from charging a transaction fee on the $7 of tax. LB 559 is not intended to prohibit businesses or political subdivisions from recouping transaction costs.

Board position: Neutral Status: Remains in Banking, Commerce and Insurance Committee

LB 664 (Kuehn)- Prohibits political subdivisions from using any tax or fee imposed by a government body to employ or contract with a lobbyist. Senator Kuehn has indicated LB 664 would apply to utility fees or charges. Committee testimony clarified that LB 664 is intended to specifically prohibit contracting with outside lobbyists. Political subdivisions would still have the authority to internally employ staff for lobbying purposes.

Board position: Oppose Status: Remains in Government, Military and Veterans Affairs Committee

~~ Richard A. Kubat Government Relations Attorney 402-504-7125

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

c/Jt~~~ Scott Keep, President 402-504-7106


February 23, 2018

Subject: Promotion Increases and Ratifications, March 2018 Board Meeting

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

Vice Presidents Doyle, Mendenhall, Reisner and Schneider

From: Bonnie Savina, Vice President, Human Resources

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

1. Bargaining Unit/OAC - Promotion Increases

The Human Resources Department is recommending that the Board of Directors approve wage increases for the following Employees within the Bargaining Unit/OAC classification. These wage recommendations 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.

Employee: Tony Dillow Current position (department): Crew Leader {Construction} New position (department): Group Leader (Construction) Current rate; step/grade: $39.04; Step 4 Proposed rate; step/grade: $40.99; Step 4 Percent of increase: 5.00% District hire date: March 3, 1997

Employee: Ann Wenninghoff Current position (department): Administrative Clerk Ill (Construction) New position (department): Administrative Clerk V (Construction) Current rate; step/grade: $26.40; Step 4 Proposed rate; step/grade: $28.43; Step 1 Percent of increase: 7.69% District hire date: June 22, 1998

Employee: Thomas Zach Current position (department): Mechanic (Transportation) New position (department): Senior Mechanic (Transportation} Current rate; step/grade: $34.71; Step 4 Proposed rate; step/grade: $38.19; Step 4 Percent of increase: 10.03% District hire date: January 20, 2009

E0121328

Approved

Promotion Increases and Ratifications Page 2

2. Bargaining Unit/OAC Promotion Increases Due To Job Progression

The Human Resources Department is recommending that the Board of Directors approve the following wage increases for the Bargaining Unit/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.

Employee: Daniel Chaffin Current position (department): Customer Service Technician Trainee (Field Services Operations) New position (department): Apprentice Customer Service Technician (Field Services Operations) Current rate; step/grade: $25.84; Step 4 Proposed rate; step/grade: $28.65; Step 2 Percent of increase: 10.87% District hire date: November 3, 2008

Employee: Justin Corcoran Current position (department): Customer Service Technician Trainee (Field Services Operations) New position (department): Apprentice Customer Service Technician (Field Services Operations) Current rate; step/grade: $25.84; Step 4 Proposed rate; step/grade: $28.65; Step 2 Percent of increase: 10.87% District hire date: August 19, 2013

Employee: Linda Gravert Current position (department): Customer Service Technician Trainee (Field Services Operations) New position (department): Apprentice Customer Service Technician (Field Services Operations) Current rate; step/grade: $25.84; Step 4 Proposed rate; step/grade: $28.65; Step 2 Percent of increase: 10.87% District hire date: November 4, 2002

Employee: Michael Jacobson Current position (department): Customer Service Technician Trainee (Field Services Operations) New position (department): Apprentice Customer Service Technician (Field Services Operations) Current rate; step/grade: $25.84; Step 4 Proposed rate; step/grade: $28.65; Step 2 Percent of increase: 10.87% District hire date: July 14, 2014

Employee: Blaine Lazio Current position (department): Customer Service Technician Trainee (Field Services Operations) New position (department): Apprentice Customer Service Technician (Field Services Operations) Current rate; step/grade: $25.84; Step 4 Proposed rate; step/grade: $28.65; Step 2 Percent of increase: 10.87% District hire date: June 9, 2014

Promotion Increases and Ratifications Page 3

Employee: Aaron Osterholm Current position (department): Customer Service Technician Trainee (Field Services Operations) New position (department): Apprentice Customer Service Technician (Field Services Operations) Current rate; step/grade: $25.84; Step 4 Proposed rate; step/grade: $28.65; Step 2 Percent of increase: 10.87% District hire date: June 15, 2015

Employee: Robert Stewart Current position (department): Customer Service Technician Trainee (Field Services Operations) New position (department): Apprentice Customer Service Technician (Field Services Operations) Current rate; step/grade: $25.84; Step 4 Proposed rate; step/grade: $28.65; Step 2 Percent of increase: 10.87% District hire date: October 10, 2011

3. Supervisory, Professional and Administrative - Increases

The following Supervisory, Professional and Administrative (SPA) employees have been promoted. It is recommended the President be authorized to increase the salary of these employees. These 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.

Employee: Ann Boesen Current position (department): Human Resources Specialist (Human Resources} New position (department): Manager, Compensation and Benefits (Human Resources) Current rate; step/grade: $65,553; SPA-1 Proposed rate; step/grade: $79,931; SPA-5 Entry Percent of increase: 21 .19% District hire date: May 16, 2016

4. Supervisory, Professional and Administrative - 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.

Date approVed -

Date approved d~~ 1..( Scott L. Keep ~ President


lnter·Department Communication

February 22, 2018

SUBJECT: Approval of Collective Bargaining Agreement

TO: Personnel Committee: Jim Begley, Chairperson; Jack Frost; Dave Friend cc: All Board Members and Messrs. Keep, Doyle, Mendenhall, Reisner, Schneider

FROM: Bonnie Savine, Vice President, Human Resources

The District reached a tentative agreement with the leadership of the IBEW 1521 on January 31, 2018. On February 7, 2018, the major provisions of that tentative agreement were reviewed with you. Union members are voting on the tentative agreement on March 6, 2018.

Bargaining meetings between management and the Union began nearly one year ago. Both groups recognize the importance of having a purposeful contract that supports the District's strategic objectives. Management focused on a few areas of the contract during bargaining: wages, pension contribution rates, health insurance contribution rates and prescription co-pays, overtime and standby language.

Some components of the tentative agreement are as follows:

The agreement is a 5-year agreement beginning April1 , 2018 and ending March 31, 2023.

Wage increases in the first year are 1.5%. Wage increases in the second year are 2.75%. Wage increases in the third, fourth and fifth year are 2.25%.

The Health Insurance contribution rates are: 2018 2019 2020 2021 2022 2023 13% 13.5% 14% 14.5% 15% 15%

The Pension contribution rates are: 2018 2019 2020 2021 2022 2023 6.0% 7.0% 7.5% 8.0% 8.5% 9.0%

Additional components of the agreement are attached for reference.

E0121328

Approved

Management recommends the Board approve the Collective Bargaining Agreement and authorize the President to enter into the Collective Bargaining Agreement with the IBEW 1521. I will be available to answer questions at the March 7, 2018 Board meeting.

APPROVED:

~~K~~ President

~ METROPOLITAN U TILI TI ES D IS TR I CT

Highlights of the Tentative Bargaining Agreement

Wages: Effective annually on the pay period beginning closest to Aprills1•

A. 2018-1.50% increase - April7, 2018 B. 2019 - 2.75% increase- April6, 2019 C. 2020- 2.25% increase - April4, 2020 D. 2021 - 2.25% increase- April3, 2021 E. 2022 - 2.25% increase- April 2, 2022

Benefits: 1. Health Insurance

A. Employee Health Insurance Contribution (PPO health plan)

I Employee Contributions

EE Only

EE +One

Family

2017

13%

13%

13%

2018

13%

13%

13%

*Changes in 2019-2022 will be effective January l s1•

B. Deductibles

] In-Network -Deductible

EE Only

EE +One (Same as Family)

Family

C. Coinsurance Percentage

2017 2018 2019*

90% I 90%/10% I 88%/12%

2017 2018

$660 $660

$1,350 $1,350

$1,350 $1,350

In-Network

2020

I 88%/12% I Out -of-Network

70% I 70%/30% I 70%/30% 1 70%/30% 1

*Changes in 2019 will be effective January l s1 .

Calendar Years

2019* 2020* 2021*

13.5% 14% 14.5%

13.5% 14% 14.5%

13.5% 14% 14.5%

Calendar Years

2019* 2020 2021

$$700 $700 $700

$1,400 $1,400 $1,400

$1,400 $1,400 $1,400

2021 2022

88%/12% 88%/12%

70%/30% 70%/30%

2022* 2023

15% 15%

15% 15%

15% 15%

2022 2023

$700 $700

$1,400 $1,400

$1,400 $1,400

2023

88%/12%

70%/30%

D. Coinsurance Limit

In-Network • Medical Coinsurance Umlt Coinsurance Limit

EE Only

EE +One

Family

E. Medical Copays

2017 $1,030

$1,750

$1,750

2018 2019* $1,030 $1,300

$1,750 $2,600

$1,750 $2,600

2020 2021* 2022 2023* $1,300 $1,550 $1,550 $1,800

$2,600 $3,100 $3,100 $3,600

$2,600 $3,100 $3,100 $3,600

I Medical Copays In-Network Medical Copays

Office Visits (PCP)

Office Visits (Specialist)

Telehealth

Urgent Care visits

Emergency Room Visits•

"'ER Copay waived if admitted

F. Prescription Copays:

I Pharmacy Copays

Retail (30 day)

Generic

Brand A Formulary

Brand- Non-Formulary

Specialty

Pharmacy Copays

M ail Order

Generic

Brand - Formulary

Brand- Non-Formulary

Specialty

2017

$6

$24

$30

Same

2017 $20

$20

$5

$20

$100

2017 $5

$30

$50

N/A

2018

$6

$24

$30

Same

* Changes in 2019 will be effective January 1$1•

**No Mail Order available Out of Network**

2018 2019 2020 $20 $20 $20

$20 $20 $20

$5 $5 $5

$20 $20 $20

$100 $100 $100

In-Network

2018 2019* 2020 $5 $7 $7

$30 $30 $30

$50 $50 $50

N/A $100 $100

2019* 2020

90 Day Supply

$14 $14

$60 $60

$100 $100

$200 $200

2121 2022 2023 $20 $20 $20

$20 $20 $20

$5 $5 $5

$20 $20 $20

$100 $100 $100

2121 2022 2023 $7 $7 $7

$30 $30 $30

$50 $50 $50

$100 $100 $100

2021 2022 2023

$14 $14 $14

$60 $60 $60

$100 $100 $100

$200 $200 $200

2. Dentallnsurance

Dental PPO Plan:

B) Maintenance/Simple Restorative

C) Complex Restorative

Lifetime: D) Orthodontia

*Changes in 2022 will be effective January 15t.

• Effective January 1, 2019:

ln~Network

2017 2018 2019 2020 2021 2022

$0 $0 $0 $0 $0 $0

$25 $25 $25 $25 $25 $50

$0 $0 $0 $0 $0 $0

1. Annual limit for coverages A, B & C be increased from $1,500/person to $2,000/person.

2. Benefits will include Nitrous Oxide for A, B & C coverage

Coinsurance In-Network Percentage

2019• 2020 2021 2022&23

Preventive 100% 100% 100% 100%

Maintenance/Simple Restorative 88%/12% 88%/12% 88%/12% 88%/12%

Complex Restorative 60%/40% 60%/40% 60%/40% 60%/40%

Ortho 60%/40% 60%/40% 60%/40% 60%/40%

Employee Contributions PPO Dental Plan

2017 2018 2019 2020 2021 2022• 2023 EE Only 31% 31% 31% 31% 31% 32% 32%

Couple 39% 39% 39% 39% 39% 40% 40%

Single Parent 39% 39% 39% 39% 39% 40% 40%

Family 40% 40% 40% 40% 40% 40% 40% *Changes in 2022 will be effective on January 1st.

3. Pension -All Eligible Employees

In determining the contribution to be made by the District to the Retirement Plan each year, the

District's contribution rate shall be no less than the Employee contribution rate for the year.

2017 2018 2019* 2020 2021 2022 Employee

6% 6.00% 7.00% 7.50% 8.00% 8.50% Contributions

•changes in 2019- 2023 will be effective on January ls1•

4. Basic Life Insurance:

A) Amount of Coverage 1. 2018: No change: Continue with employee coverage at one times annual base wages up

to $60,000 maximum 2. 2019: Increase employee coverage to one times annual base wages

B) Employee Contribution 1. 2018: No change: Continue with current rate at 6.3% of premium 2. 2019: Eliminate employee contribution

Article VII- Hours of Work. Premium Pay for Shift Workers, Basic Pay Rates and Overtime Compensation Section 5. Premium Pay for Shift Workers Effective April 7, 2018: Increase shift pay for second shift from $.86/ hour to $1.00/hour. Increase shift pay for third shift from $1.04/hour to $1.25/hour.

Section 9. Distribution of Overtime (For all divisions except those listed in Sections 9A., 98. and 9C.) Revised language in this section.

Section 14. Stand-By Procedure and Compensation Revised language in this section.

Article VIII- Job Posting Section 2. Posting and Bidding Procedure Section updated to include electronic methods in the procedure.

Article XVIII- Miscellaneous Provisions Section 4. Memberships The amount of the District's contribution per calendar year will be increased from $30 per employee to $50 per employee effective 2019.

Section 7. Safety Shoes Effective April1, 2018: The District will contribute up to $130 toward the cost of safety shoes every twelve (12) months.

2023

9.00%


February 23, 2018

Subject: SPA SALARY STRUCTURE ADJUSTMENT

To: Personnel Committee, Jim Begley Chairperson, Jack Frost, and Dave Friend cc: All Board Members, Keep, Doyle, Mendenhall, Reisner, and Schneider

From: Bonnie Savine, Vice President, Human Resources

As a matter of policy, the salary structure for SPA employees is reviewed by the District's management on an annual basis. Following the review a summary, which may include a recommendation for an adjustment, is made to the Board. Any adjustment authorized by the Board will be effective on March 1, 2018.

The 2018 recommendation reflects management's commitment to the strategic initiatives of the District. Other factors impacting the recommendation continue to be changes to SPA Benefits (pension contributions), the SPA/Bargaining Unit General Increase Comparison, and Compensation Survey Data. The information in this memo supports management's recommendation for the 2018 SPA Salary Structure adjustment of 2.0%

District Strategic Initiatives In reviewing the District strategic plan the District-wide strategy summarizes the initiatives and focus of company. The District-wide strategy states: The District's long-term success depends on overall financial stability, which is achieved by supplying significant value to our customers, delivered by a highly efficient and sustainable operation with empowered employees who make up the core of our organization. In contributing to the overall financial stability of the company a 2.0% salary scale adjustment is fiscally responsible.

SPA Pension Contribution Increase The SPA employee group would have an increase to their pension contribution effective September 1, 2018 from 6.0% to 6.5%. Effective January 1, 2019 the contribution would increase to 7.0%.

SPA/Bargaining Unit General Increase Comparison The District has maintained and monitored an index which compares the cumulative effect of increases over the years as they apply to the Bargaining Unit wage system (OAC employees) and the Supervisory, Professional, and Administrative (SPA employees) salary structure. This index is maintained in an effort to assure that some equity remains between the two groups. The SPA salary structure has increased Jess than the OAC structure over the years since the index was established in 1983. In other words, general increases for OAC employees have been more than those granted to SPA employees on a ten year cumulative basis. (See Attachment: 2018 OAC- SPA General Increase Review)

A review of the last ten (10) years reflects a cumulative percent difference of 5.23% in favor of the OAC group. The SPA group continues to lag in this parity comparison. General Increases are not part of any wage or salary determination for any particular position. The General Increase is an annual across-the-board increase for OAC employees per the contract, and is an increase determined annually for the SPA employees through Board action. Please note that the 5.23% disparity in cumulative wages already reflects the proposed 2.0% increase for SPA employee's in 2018. Also note that the 2018 budget includes a 2.0% increase for OAC Employees. At this time however, there is not an approved general increase for OAC employees for 2018.

Salary compression issues between management personnel and subordinates do exist. This adjustment helps ensure that the gap between management and their subordinate's annual salary does

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SPA Salary Structure Adjustment February 23, 2018 Page2

not shrink further. The District will continue to address compression for management personnel per District policy.

Compensation Survey Data Each year, the District reviews salary data made available by outside consulting services and professional organizations. The data is consistent with what has been published in recent years. As part of this year's survey the District collected the following increase data:

• World at Work 2017-2018 Salary Budget Survey: Projected median salary increase for 2018

• Mercer's 2016/2017 U.S. Compensation Planning Survey: Projected salary increase budgeted for 2017

• Hay Group 2018 Planned Salary Budget Increase: Average for salaried employees

• Society of Human Resource Management (SHRM): Projected 2017 average salary exempt salary increase

• Human Resource Association of the Midlands (HRAM) Anticipated overall increase to the salary range for 2018

• Willis Towers Watson/AGA Projected 2018 pay increase

Published Survey Data Average

Recommendation

3.2%

2.9%

3.0%

3.2%

3.1 o/o

3.0%

3.06%

• Increase the SPA salary scale's minimum and maximum by 2.0% effective March 1, 2018. • Grant a maximum 2.0% general increase effective March 1, 2018 to all SPA employees who have

demonstrated satisfactory performance; per the following guidelines:

The 2017 SPA appraisals will be reviewed and SPA General Increases will be awarded, based on the aggregate appraisal score of each SPA employee, according to the 1 through 5 rating system. o An employee with an appraisal score for the prior calendar year of 3.0 to 5.0 will receive the

entire Board authorized General Increase.

o An appraisal score of 2.5 to 2.99 shall result in adjustment to 75% of the General Increase.

o An appraisal score of 2.0 to 2.49 shall result in adjustment to 50% of the General Increase.

o An appraisal score of 1.99 or lower will result in no increase for the employee.

•see the full2018 SPA Compensation Guidelines for more information. • If compression issues are identified, an adjustment will be made which will maintain a 10%

differential between the highest paid OAC position (or position designated by management) and the position of the SPA employee who supervises the OAC employee. A report will be completed in February to identify SPA employees that are eligible for a Progression Increase on March 1, 2018. Only these identified employees will be eligible for a Progression Increase on March 1. 2018. If an employee is at the maximum for their pay grade per this report and they do not qualify for the full

SPA Salary Structure Adjustment January 20, 2017 Page3

General Increase effective March 1, 2018, they will not be eligible for a Progression Increase in 2018. They will be eligible for a Progression Increase in 2019 because their annual salary will be below the new maximum salary for the grade.

• SPA employees eligible for a 2018 progression increase are subject to the following guidelines:

The 2017 SPA appraisals will be reviewed, and SPA Progression Increases will be awarded. based on the aggregate appraisal score of each SPA employee, according to the 1 through 5 rating system. Progression Increases are subject to the proration schedule for employees hired, promoted or transferred in the previous year (2017). The Progression Increases are determined by the following:

o An appraisal score of 3.0 or higher shall result in the entire 5% Progression Increase or applicable prorated progression percentage if the employee was hired or changed jobs in 2017.

o An appraisal score of 2.5 to 2.99 shall result 75% of the maximum Progression Increase.

o An appraisal score of 2.00 to 2.49 shall result 50% of the maximum Progression Increase.

o An appraisal score of 1.99 or lower shall result in no annual Progression Increase for the SPA employee for the year.

*See the full2018 SPA Compensation Guidelines for more information.

The budgeted SPA increase in annual payroll was 2.0% percent which totals $409,058 I will discuss this proposal at the February 7, 2018 Board Meeting and will be available to answer questions at that time.

APPROVED:

Scott L. Keep President

Attachments:

Bonnie Savine Vice President, Human Resources

2018 OAC - SPA General Increase Review-10 year history 2018 SPA Compensation Guidelines 2018 SPA Salary Scale

Budgeted

Budgeted

DATE Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Sep-14 Apr-15 Apr-16 Apr-17 Apr-18 ---

DATE

Apr-08 Apr-09 Apr-10 Apr-11 Apr-12 Apr-13 Sep-14 Apr-15 Apr-16 Apr-17 Apr-18

METROPOLITAN UTILITIES DISTRICT 2018 OAC- SPA General Increase Review

10 Year History

COMPARATIVE INCREASE OAC DATE

4.00% Jun-08 4.00o/o Jun-09 3.90% Jun-10 0.00% Jun-11 0.00% Jun-12 3.50°/o Jun-13 3.50o/o Jan-14 3.50% Jan-15 3.50% Mar-16 3.50o/o Mar-17 2.00o/o Proposed Mar-18 -

CUMULATIVE OAC DATE 100.00% 104.00°/o Jun-08 108.16% Jun-09 112.38% Jun-10 112.38% Jun-11 112.38% Jun-12 116.31o/o Jun-13 120.38% Jan-14 124.60% Jan-15 128.96% Mar-16 133.47% Mar-17 136.14°/o Proposed Mar-18 ~

10 Yr Cumulative percent difference OAC over SPA= The proposed SPA 2017 increase retains the 0/o spread of:

SPA 3.73°/o 2.85% 1.57°/o 0.00°/o 0.00% 2.00% 3.50o/o 3.50% 3.50o/o 3.50°/o 2.00o/o

SPA 100.00o/o 103.73o/o 106.69o/o 108.36% 108.36o/o 108.36o/o 110.53% 114.40°/o 118.40% 122.54°/o 126.83°/o

1.• 129.37%

5.23°/o 5.23o/o

SPA Compensation Guidelines for 2018 (Appraisal Year 2017)

General Increases

All SPA employees will be eligible for the approved General Increase. The increase will be effective on the same date as a Board of Director's approved revision to the SPA salary structure. Employees may receive up to the same percentage increase as the structure increase for their assigned grade. For 2018, the effective date is March 1, 2018. This policy will be reviewed and updated for each calendar year in January of each succeeding year. General Increases for SPA employees are subject to the following:

The prior year's SPA appraisals will be reviewed, and SPA General Increases will be awarded, based on the aggregate appraisal score of each SPA employee, according to the 1 through 5 rating system.

• An employee with an appraisal score for the prior calendar year of 3.0 to 5.0 will receive the entire Board authorized General Increase.

• An appraisal score of 2.5 to 2.99 shall result in adjustment to 75% of the General Increase.

• An appraisal score of 2.0 to 2.49 shall result in adjustment to 50% of the General Increase.

• An appraisal score of 1.99 or lower will result in no Increase for the employee.

Progression Increases

Note: All progression increases are subject to the *proration schedule, if applicable, during the first year of hire, transfer, or promotion. (See the attached *Proration Schedule chart.)

Progression Increases of up to 5% can be annually granted to SPA employees who have not attained the Maximum salary of their job grade. This includes employees who are promoted or transferred, or who are new hires still eligible to obtain Progression increases--- until the Maximum salary for the grade has been reached. The progression increase will be determined by scores achieved on the prior year's annual appraisal. Progression Increases are granted effective March 151 of each year (subject to the proration schedule). The Progression Increases are determined by the following:

• An appraisal score of 3.0 or higher shall result in the entire 5% Progression Increase or applicable prorated progression percentage if the employee was hired or changed jobs in 2017.

• An appraisal score of 2.5 to 2.99 shall result 75% of the maximum Progression Increase (75% X 5% = 3.75%).

1

• An appraisal score of 2.00 to 2.49 shall result 50% of the maximum Progression Increase (50% X 5% = 2.5%).

• An appraisal score of 1.99 or lower shall result in no annual Progression Increase for the SPA employee for the year.

Timely Appraisal Completion Requirements

All OAC and SPA appraisals must be timely completed by supervisors.

SPA employee voluntary self-evaluations will commence in December. Supervisors will commence their evaluations and preparation of appraisals in mid-December, continuing through late-January. The deadline to complete SPA appraisals by supervisors will be January 26, 2018. The deadline for 2"d level managers will be February 1, 2018.

It is expected that all SPA appraisals will be completed for the 2017 calendar year, and going forward, In compliance with the policy.

*Proration Schedule {effective March 11 2015}

(Based on month of Hire, Promotion or Transfer)

• March 12/12 = 1.0000x5% =5.00%

• April 11/12 = .9167 X 5% =4.58%

• May 10/12 = .8333 xS% =4.17%

• June 9/12 = .7500 xS% = 3.75%

• July 8/12 = .6667x 5% =3.33%

• August 7/12 = .5833 X 5% =2.92%

• September 6/12 = .sooo xS% = 2.50%

• October 5/12 = .4167 xS% = 2.08%

• November 4/12 = .3333 X 5% = 1.67%

• December 3/12 = .2500x 5% = 1.25%

• January 2/12 = .1667 x5% = .83%

• February 1/12 = .0833x 5% = .42%

Notes: • Prorated progression increases, per the above guidelines and proration schedule

became effective March 1, 2015. These guidelines replaced previous compensation policy for progression increases during the first year in a job.

• Employees who do no not meet standards for a second year in a row will be limited to 75%, 50%, etc. of their total eligible 2018 increase.

2

j_ METROPOLITAN UTIL I TIES DISTRICT

I! S~ 4 S~lary Scale lr ~-' -· ~-

2.0% {n~ase I'Bffective ~March 1, 201_8 7 M;:,., - '< j:

Grades 2018 Minimum 2018 Maximum I . SPA -13 $163,390 $234,871

SPA -12 $135,369 $194,591 -

SPA -11 $124,619 $161,219

SPA -10 $115,838 $149,867

SPA-9 $108,131 $138,766

SPA-8 $100,474 $128,425

SPA-7 $93,150 $118,582 ' ~

I SPA-6 $86,374 $109,502

SPA-S $79,931 $100,927

SPA-4 $74,044 $93,112

SPA-3 $68,505 $85,790

SPA-2 $63,536 $79,233

SPA-1 $59,020 $73,303 , ...

*b.istrict President's Salary Noll Included -~

March 2018

State of the District 1

Construction Crew Gas Main Abandonment

Minne Lusa Project Capital Improvements

Metropolitan Utilities District

Mission Statement

We provide safe, reliable, and cost-effective natural gas and water services to our community.

2

Employees Volunteer & Donate to the Community

2017 Priorities Safety

Employee Public

Reliability

Continuity of Operations IT Reliability Cast Iron Pipe Replacement

Customer Service

Customer Experience Plan 2-Hour Appointment

Window

Lead Water Service Strategy

3

Construction Crew Gas Infrastructure Replacement

2018 Priorities Safety

Employee Public

Reliability

Continuity of Operations Infrastructure

Cast Iron Pipe Replacement Florence

Metering System Financial Stability

Long-term Growth

Customer Experience Delivering the Right

Customer Experience 100% of the Time

4

Business Continuity Exercise

District Vision Statement

To maintain our commitment to serve our community, while striving to become one of the nation's top utilities. This will be demonstrated by achieving industry leading performance in: Safety Reliability Customer Service Efficiency Regulatory

Compliance Financial Stability

5

6

EMPLOYEE SAFETY Key Performance Indicators (KPI’s)

Employee Safety Employee’s safety, health, and welfare at work is a primary focus for all within the District

Benchmark Sources: BLS-Bureau of Labor Statistics; AGA-American Gas Association

2014 2015 2016 2017 2017 2016 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Goals Goals Top Median Bottom Benchmark Source

Recordable Injury Rate per 200,000 hrs. worked 3.80 4.29 5.12 3.37 1.6 2.52 1.6 4.0 6.1 BLS

Preventable Vehicle Accident Rate per 1,000,000 miles driven 10.79 8.98 6.75 6.87 4.26 5.84 2.84 Mean AGA

District GPS Safety Rate Speeding Events 0.62 0.56 0.75 0.75 0.75 MUD

7

Employee Safety: Incident Comparisons

10 Year Personal Injury Average 2006-2016: 51.9 incidents per year

65

80

61 5948 51

42 38 3540

47

30

0

10

20

30

40

50

60

70

80

90

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Num

ber

of In

juri

es

10 Year Injury Trend

Median Annual Injury Rate 51.9

2017 = All-Time Low Rate of Recordable Injuries

Employee Safety: Personal Injuries 2017 had the lowest rate of workplace injuries on record

8

Workplace Injuries (30) 60% were the result of

“Conditions Beyond Control” (e.g. insect bites, routine activities, vehicle accidents, etc.)

23% were the result of “Unsafe Acts”

17% were the result of “Unsafe Conditions”

Leading Types of Injuries: 60% (18 total) of injuries are sprains and strains

1 1

2

1

2

5

18

1 Carpal Tunnel

1 Rash, Reaction

2 Animal Bite, Sting

1 Abrasion

2 Slips/Trips

5 Cuts, Lacerations, Puncture

18 Sprains, Strains

Employee Safety: Vehicle Accidents 9

Total Vehicle Accidents (32) 65% were preventable (PVA) (21)

Over 80% of Preventable Vehicle Accidents (PVAs) involved a collision with a fixed object resulting in the creation of the M.U.D. PVA Reduction Strategic Initiative for 2018

012345678

8 6 5

2

Preventable Vehicle Accident (PVA) Collision Location

2017

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

15

5

1

Preventable Vehicle Accident (PVA) Causes 2017

Employee Safety: 2017 Initiatives 10

Personal Protective Equipment: Policy Creation for Compliance and Enhanced Employee Safety

Vehicle Operator Policy Development: Park Smart, Walk-A-Round and Safety Enhancements District-Wide.

Creation of High Visibility Safety Apparel Policy

Modification of Driving Policy for Increased Safety

Expansion of Existing GPS Technology: Dispatch Efficiency and Driver Safety Performance assurance

Mutual Aid Development: “Trench Rescue” with Area Special Operations Teams

Active Shooter Training: expanding to include See Something/Say Something and De-escalation


Active Outreach with City of Omaha for Traffic Safety Addition of Portable Rumble Strips to increase field

Safety Actively Participating with American Gas Association

to define best practices for gas operations, lone-worker safety, evacuations and gas emergency response

Supervisor safety training and performance metrics aimed at increased engagement

Commercial Drivers License (CDL) Training contracted to Metropolitan Community College

Intensive in-house driver training program (Safety employee certified as driver trainer in December, 2016)

Improved Safety and Security staff visibility 90 Comprehensive Site Safety Visits scheduled Monthly


Preventable Vehicle Accident Rate Reduction Implement Vehicle Operator Policy Implement Preventable Vehicle Accident Policy

Work-place Injury Reduction Strategy

Implement High Visibility Safety Apparel Policy Deliver Safety Training through Learning Management System

Lone Worker Safety/Security Enhancement Strategy

De-escalation Training Risk Awareness, Identification and Reduction Strategy

Mass Communication System

Design, Budget and Implement System Global Employee Awareness Strategic Initiative

Increase Site Visits and Overall Safety Focus Personal Protective Equipment; Compliance and Review Enhanced Supervisor Safety Training

Cross Functional Team Development for Near-Miss Investigations

Using Root Cause Analysis to Identify Causation to Reduce Loss Representatives from across the District

Expanded Certification and Specialty Training Chemical Facility, Anti-Terrorism Compliance

13

PUBLIC SAFETY Key Performance Indicators (KPI’s)

Public Safety The welfare and protection of the general public is a critical responsibility and focus for all District personnel

Critical Public Safety Programs (Monitored) Gas Leak Awareness “District Pipeline Public Awareness Plan” “Nebraska 811 – Call Before You Dig” Leak Survey Program Walking; Mobile; Business District Manhole & Vault; Downtown Gas Services Cross-Bore Inspection & Reporting

Valve Audit Program (Gas & Water)

Benchmark Sources: AWWA-American Water Works Association; ; AGA-American Gas Association

2014 2015 2016 2017 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Top Median Bottom Benchmark Source

Emergency Response - Gas (min) 31.17 25.6 25.9 21.4 23 26 31 AGA

Emergency Restoration – Water (hr) 3.2 2.3 Q4 3.1 4.0 1.9 3.3 8.1 AWWA

Public Safety: 2017 Initiatives Emergency Response: Completed & On-Going Created and Implemented New Gas-Filled Structure

Emergency Response Policy Emergency Response Roles Redefined:

Adopted and Expanded Incident Command System (ICS) Created Emergency Response and Incident Management Team

Emergency Response Vehicle Placed in Service

Improved Quality Assurance/Quality Control (QA/QC): Post-Incident Review Meetings Emergency Calls Locating Valve Audit Program

Applied Technology: Texting for Notifications and Valve Info Click/Work Manager Utility Viewer Ipad distribution GPS

Expanded ESChat Communications and Portable Radio use Added Portable Radios to Communication Plan

On Existing 911 Radio Framework

14

June 18th, 2017 9th & Dodge

July 31st, 2017 Creighton University

Public Safety: 2017 Initiatives Emergency Response Initiatives: In-Progress & Planned Expanded Training:

Simulations/Drills

Centralized Hazardous Materials Response Teams Expanded Relationship and Dialogue with:

Area Fire Departments Critical Infrastructure and Community Partners Douglas/Sarpy 911 Hosted Infrastructure & Community Partners Exercise at Platte West

Started Putting All the Pieces Together:

15

March 14th, 2017 Trench Rescue Event; Omaha, Ne

Employee Safety

Public Safety

Continuityof

OperationsSecurity

Emergency Response

Public Safety: 2018 Initiatives 16

Execute Emergency Communication Strategy

Continued and Expanded Involvement in Public Safety Committees, Groups and Boards

Execute Traffic Safety Enhancements

Incident Management Team Response to Emergencies

Expanded Training: Emergency Drills for Field Service Personnel Joint Exercises

Continue On-Going Staffing Assessment

Continue Active Industry Involvement

Omaha Public Safety Training Center (OPSTC)

Reliability: District Water Plants 17

Florence Platte South

Platte West

18

Reliability Our customers can count on our service availability and support being provided in a fashion that aligns with the District’s values.

RELIABILITY Key Performance Indicators (KPI’s)

Benchmark Sources: SLA-Service Level Agreement

2015 2016 2017 BENCHMARK

KPI's Yr-End Yr-End Yr-End Top Median Bottom Benchmark Source

Uptime % for business critical systems (SAP, GIS, OpenText & Payment Systems)

99.90% 99.0% SAP target SLA for Cloud-Hosted Systems

Breaks per mile of pipes - Gas (Cast Iron) 0.25 0.16 0.18 0.10 0.19 0.27

AGA

Breaks per 100 miles of pipes - Water 13.3 15 16.7 3.5 7.4 16.3

AWWA

Unplanned Disruptions of Water Service < 4 Hrs (per 1000 accts) .37 Q4 2.54 3.2 0.46 0.92 2.13

AWWA

Total Unplanned Disruptions of Gas Service (per 1000 accts) 0.02 Q4 0.27 0.30 0.54 1.12 2.04

AGA

Reliability: 2017 Initiatives 19

Information Technology Data Center Moved to Private Cloud

Gas & Water Infrastructure Replacement

Florence Capital Improvement Plan (CIP)

Business Continuity Replaced boil-off compressors at

Liquefied Natural Gas (LNG) Plant Back-up Generator for

Construction Center & Compressed Natural Gas (CNG) Station

Completed 5th and final phase of Gas Distribution SCADA Master Plan

Data Center Move Team

Minne Lusa Refurbishment

Reliability: Gas & Water Infrastructure 20

7.7 9.2

23.019.3 20.2

26.430.7 32.0 34.0 34.9

405.45

5.5 3.96.6

9.4

3.9 4.18.3 9.1 10.6 9.2 11

1.9

0

5

10

15

20

25

30

35

40

45

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Budget

IR Program - Cast Iron ReplacementMiles of Main

Gas Cast Iron Gas Other Water Cast Iron Water Other

Reliability: Gas & Water Infrastructure 21

**Beginning in 2017 the definition of “Break” was refined with “leaks” and “hits” removed and tracked separately**

0

100

200

300

400

500

600

700

800

Annual Pipe Damage

Gas Hits

Gas Leaks

Gas Breaks

Water Hits

Water Leaks

Water Breaks

2017 Business Continuity Program (BCP) 22

Business Continuity Manager Added

Complete Safety (Public and Employee) initiatives started in 2017

Expand Public Safety Posture throughout service area with industry and community partners

Expand participation with Sarpy and Douglas County Emergency Management

Improved Safety, Security, Business Continuity and Emergency Response training to include in-house and District first responder simulations/drills/table-top exercises; BCP Tabletop occurred on November 8th, 2017.

Deployed Portable Radios for Emergency Scene Communications and created formal emergency

communications strategy on the 911 framework

Complete Business Continuity Plan Delivered March 1st, 2018

Business Continuity Plan Continuity of Operations

Business Continuity: 2018 Initiatives 23

Business Continuity Training & Activities: Conduct Two Scaled Exercises in CY 2018 Continue On-Going Staffing Assessment Execute comprehensive risk reduction strategy for

Construction Center and District Capital Assets

Business Continuity Plan: Test Draft 0 of Final BCP Deliver Final BCP Draft 1 to President Plan Updates Stress-Test Current Security Contract

Evolution of Emergency Drills for operations crews And Emergency Operation Plan Revisions Mass Communication System Adopted and

Deployed Q1 2018

M.U.D. Emergency Command Center

Reliability: 2018 Initiatives Major System Improvements

144th & W. Dodge to Pacific 36” Connection Main 148th – 156th W. Dodge Road 30” Main West Dodge Pump Station

Florence, Platte South CIPS 117th & Fort well casings inspection Replace 2nd boil off compressor at LNG Plant Gas & Water Infrastructure Replacement Information Technology:

Cyber Security SCADA Systems

Future of Downtown Building Metering Infrastructure:

Plan for Next 25 Years Advanced Metering Infrastructure (AMI) vs Existing

Encoder Receiver Transmitters (ERT’s)

24

Construction Crew Gas Infrastructure Replacement

25

Customer Service Customers can count on the District providing excellent services and an overall positive experience with every interaction.

CUSTOMER SERVICE Key Performance Indicators

Benchmark Sources: EEI-Edison Electric Institute; AWWA-American Water Works Association

2014 2015 2016 2017 2018 BENCHMARK

KPI's Baseline Yr-End Yr-End Yr-End Goals Top Median Bottom Benchmark Source

Appointments made; % adherence to 2-Hr window

TBD 93.0% 95% 99% 98% 90%

EEI-AGA DataSource

Billing - Corrected Bill Rate (per 10,000 billings)

16 12.5 6.7 6.0 Top Quartile 5.3 11.6 36.4

AWWA

Call Center - % Calls Answered 79% 95.5% 95.8% 94.6% 95% MUD Target

Call Center - Average Wait Time 4.2 1.6 1.4 1.7 < 2.0 MUD Target

QA Customer Accounting (Avg Score) 94%

95%

96%

95%

MUD target

QA Customer Service (Avg Score) 86.5%

90.4%

94%

95%

MUD target

Customer Service Initiatives

2017 Projects In-Process or

Completed

2-Hr Appointment Scheduling

Outbound Calling Capability/Campaigns

Recurring E-Checks Builder/Contractor

Online Self-Service

2018 Projects Budgeted

Recurring Credit Card

Payments Interactive Voice

Response (IVR) Enhancements

Self-Service Options Invoice Redesign

26

Launched Customer Experience - 2017

Annual Customer Satisfaction Survey created, released and incorporated into Geographic Information System (GIS)

Customer Service and Communication Training Initiated

District-Wide Customer Experience Committee formed

27

Customer Experience Committee – December, 2017

Customer Survey Results Summary 28

83% of Customers are either very satisfied (51%) or somewhat satisfied (32%) with MUD’s performance.

Customer Experience - 2018 Annual Customer Satisfaction Survey with GIS Creation and implementation of quarterly surveys

Emergency Response, Customer Service, Infrastructure Replacement, Technology

Customer Journey Mapping Customer Service Definitions District-Wide Customer Service Training Communication and Engagement

Customer Experience Vision Statement Our commitment:

Get it right the first time – Always! Excellence, Accuracy, Timeliness

29

30

Efficiency The District must effectively utilize its resources to accomplish its mission by maximizing productivity and demonstrating optimal performance.

EFFICIENCY Key Performance Indicators

2014 2015 2016 2017 BENCHMARK


Total Customer Service Cost per Account

$47.69 $47.90 $45.59 $43.45 $22.71 $38.91 $51.84 AWWA

O&M expense per customer (Gas) excluding Cost of Natural Gas and 'gas peak shaving'

$212 $229 $233 $225

MUD target

O&M expense per customer (Water) $337 $360 $356 $360 $314 $396 $530

AWWA

HR-Employee Turnover Rate 5.8% 4.3% 4.3% 6.6% 6.0% 7.2% 12.2%

AWWA

Efficiency: BPI 2017 Initiatives Lean Six Sigma/Creighton

Partnership Training:

35 Yellowbelts (111 total) 12 Greenbelts

Certification: 18 Yellowbelts (67 total)

Benefit Opportunities Identified ~$5.6M Annual program-to-date

Business Process Improvement (BPI)

Final Meters-to-Cash Projects Completed (4)

Leadership Assigned – Water IR, GRM, NNG

31

Employee Recognition ‘17 Yellowbelt Lean Six Sigma Certification

Employee Recognition ‘17 Greenbelt Lean Six Sigma Certification

Efficiency: BPI 2018 Initiatives Lean Six Sigma Training – Creighton Partnership

Yellow Belt Training Green Belt Candidate Selection

Green Belt Project Mentoring Mentor and Coach 12 Green Belts working 6 Projects

Metretek/Meter reading process Review Move Water Distribution and Construction to Paperless Orders Main Break Data Collection and Reporting Service Cutoff Procedures Eliminate Field Services “Paper” sales orders Enhance the Budget Process

Water Main Break Analysis Paving Cuts Customer Experience

Project Management Coaching, Mentoring and Training

KPI’s Tier I & II – Improvement Planning Install Plan for Updating the Strategic Plan

New Vision and Mission Statement: Focus on Customers & Employees

32

33

Regulatory Compliance The District shall adhere to all applicable laws, regulations, guidelines, and specifications relevant to its business.

REGULATORY

Drinking Water Compliance Gas Operations Reporting Compliance Liquefied Natural Gas (LNG)

Operator Qualification Human Resource Reporting Compliance Taxes DOT / PHMSA PCI Industry Reporting Compliance Cyber Security Related Compliance (CFATS) Physical Security Related Compliance (CFATS and DOT) Distribution Integrity Management (PHMSA based reporting)

PCI-Payment Card Industry; DOT-Dept of Transportation; PHMSA-Pipeline & Hazardous Materials Safety Administration; CFATS-Chemical Facility Anti-Terrorism Standards

Regulatory Compliance: 2017 Performance

Maintained regulatory compliance for all primary and critical regulations

Above-average performance on the Chemical Facility Anti-Terrorism Standards (CFATS) compliance inspection

34

Liquefied Natural Gas (LNG) Plant

Regulatory Compliance: 2017 Initiatives

Excess Flow Valve Rule

Lead Water Service Strategy

Platte South NDEQ Discharge Permit

Regulatory Monitoring System

35

Platte South Water Treatment Plant

Regulatory Compliance: 2018 Initiatives 36

Platte South Nebraska Department of Environmental Quality (NDEQ) Discharge Permit

Chemical Facilities Antiterrorism Standards (CFATS)

Role of the Compliance Manager and the Law Department

Propane Air Plant

Financial Stability: 5 Critical Factors

1) Providing our customers with affordable gas and water service

2) Sustainable reinvestment in our infrastructure

3) Proper funding of our promises to our employees

4) Maintaining debt service coverage

5) Maintaining adequate cash reserves

37

Accounting Staff

38

Financial Stability

Key Performance Indicator

FINANCIAL

2014 2015 2016 2017 BENCHMARK


Affordability - Gas (200 CCF) $144.74 $104.35

$111.89

$116.92 $144.98 $165.70 $209.91

MLGW

Affordability - Water (10 CCF) $27.81 $28.37 $29.23 $29.37 $24.16 $30.78 $42.75 MLGW

Debt Service Coverage - Water 2.56X 2.26x 3.02x 3.17x 1.2X Bond Agreement

Cash Reserves (days cash on hand) - Gas 216 249 215 180 MUD target

Cash Reserves (days cash on hand) - Water 139 235 357 180 MUD target

Sustainable Reinvestment - Gas Infrastructure $14.4M $16.3M $19.7M $19.2M MUD Budget

Sustainable Reinvestment - Water Infrastructure $11.4M $10.8M $12.4M $12.0M MUD Budget

Proper Funding of Promises to Employees - OPEB $5.0M $5.0M $7.0M $7.0M MUD Budget

Proper Funding of Promises to Employees - Pension 86% 87% 88% 100% 80% MUD Budget

$13.

71

$18.

36

$20.

05

$20.

14

$20.

27

$20.

43

$21.

61

$21.

77

$24.

57

$23.

76

$24.

16

$25.

54

$25.

60

$25.

65

$25.

85

$27.

37

$28.

00

$29.

01

$29.

37

$30.

08

$30.

44

$30.

78

$31.

64

$32.

10

$32.

32

$33.

41

$34.

32

$34.

51

$36.

70

$38.

10

$38.

22

$40.

41 $42.

75

$42.

80

$-

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$45.00

Aver

age

Bill

Am

ount

(10

CC

F)

City, StateSource: MLGW (Memphis Light Gas & Water)

39

2017 Residential “Water” Bill Comparison

Source: MLGW (Memphis Light Gas & Water)

40

2017 Residential “Gas” Bill Comparison $8

5.57

$117

.33

$117

.33

$118

.80

$122

.88

$127

.68

$132

.56

$137

.65

$139

.28

$140

.22

$141

.97

$144

.50

$145

.46

$145

.60

$146

.86

$148

.86

$152

.76

$154

.24

$156

.31

$161

.41

$161

.71

$162

.98

$165

.02

$165

.70

$166

.03

$171

.46

$178

.01

$178

.21

$178

.98

$180

.83

$190

.62

$191

.92

$198

.00

$205

.71

$-

$50.00

$100.00

$150.00

$200.00

$250.00

Aver

age

Bill

Amou

nt (1

00 C

CF)

City, State

Financial Stability: Progress in 2017

Gas rates remain below national and Midwest averages 7th lowest out of 34 metro areas listed in the 2017 Memphis Light Gas & Water survey

Water rates trend mid-range nationally and regionally compared with other utilities 20th lowest out of 34 metro areas listed in the 2017 Memphis Light Gas & Water survey

Reinvesting in infrastructure $19.7 million invested in gas cast iron replacement, 40 miles of main abandoned $12.4 million invested in water cast iron replacement, 11 miles of main abandoned $11.2 million invested in Florence capital improvement projects

Funding promises to employees Pension plan 88% funded as of January 1st, 2018 Contributed $7 million to OPEB trust fund in 2017

Bond ratings: Water upgraded from A1 to Aa2 by Moody’s (AA- by S&P). Gas remains strong at Aa2 (AA by S&P).

Debt service coverage of 3.17x (1.2x required by bond agreement)

41

Financial Stability: Progress in 2017 cont.

Cash reserves exceed target of 180 days cash on hand (Gas=215; Water=357)

Completed Central Plains Energy Project (CPEP) #3 Refunding Transaction enabling CPEP to refund 2012 Bonds in 2022 with Lower Interest Rates $77 million increase in gas price discounts from 2022-2038

Entered into 30-year Prepay with Tennessee Energy Acquisition Corp.

$0.27/Dth discount for first 5 years resulting in $1.4 million savings

42

Prepay Estimated Discounts 43

– Discounts based on extending existing agreements as well as pending agreements over next 2 years

– Estimated $73M in savings over 10-yr Period – CPEP #1 volumes stop flowing on 10/31/20 reducing 2021 discounts. CPEP #3

discount increases from $0.35/Dth to $1.35/Dth in August, 2022.

$-

$0.050

$0.100

$0.150

$0.200

$0.250

$0.300

$0.350

$0.400

$-

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027

PrePay Discounts

Est. Annual $ Est. $/Dth Total Sales

CPEP #1 vol. stops flowing

Pre-pay discounts increase from $5M to $10M in next 5 years

Proper Funding of Promises to Employees 44

The District’s pension plan had assets of $402,738,799 at December 31, 2017, representing a funded ratio of 88%.

$7 million contributed to OPEB trust fund in 2017; Cash funding in 2018 will be 94% of annual required contribution.

$3.9 $3.2 $4.0 $4.3

$5.0 $7.0

$12.5

22%

46%

66%

94%

0%

20%

40%

60%

80%

100%

$-

$5.0

$10.0

$15.0

$20.0

2015 Actual 2016 Actual 2017 Actual 2018 Budget

OPEB Cash Funding($ in millions)

"Pay-As-You-Go" Trust Funding Cash Funding as % of Annual OPEB Cost

Maintaining Adequate Cash Reserves 45

Cash reserves remain strong in both Gas and Water. Internal goal is to maintain an amount equal to six

months of operating expenses (180 days).

Financial Stability: 5-Year Rate Increase Trends 46

5.5%

5.0%

3.5%

2.5% 2.5%2.5%

0.0% 0.0%

1.0%

0.0%0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

2014 2015 2016 2017 2018

Rate Increases

Water Gas

**Water rate increases were to both service charge and commodity except 2018 where the increase was only to commodity**

Financial Stability: Priorities for 2018 Achieve bottom line budget targets in 2018 for Water and Gas,

while maintaining an appropriate balance in other aspects of the District’s operations, and adjusting spend rate to compensate for weather and other unknown factors.

Operate at 825 full-time employee level

Replace 40 miles of cast iron gas mains Replace 11 miles of water cast iron mains Increase OPEB trust funding to $12.5 million in 2018 Continue capital spend management

$32.6 million bond issuance planned in 2018 to fund portion of GIR spending through 2020 $38.7 million bond issuance planned in 2018 to fund Florence CIP through 2021 Major system improvements of $9.8 million planned in 2018 (West Farm development)

Continue marketing and expand economic development efforts

Long-term Water Supply Planning with City of Lincoln

47

Gas Sales (DTH)

Water Pumpage (MG)

Annual Sales Trends 48

48,000,000

53,000,000

58,000,000

63,000,000

68,000,000

73,000,000

78,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Total Gas Sales (DTH) Water Pumpage (MG)

CNG Sales 49

2018 CNG Sales as a whole are projected to be equal to a Top 10 gas customer.

Austin, TX

Des Moines, IA

Kansas City, MO-KS

Nashville, TN

Omaha

Raleigh, NC

0

50

100

150

200

250

300

350

400

2001 2005 2010 2015 2020 2025 2030 2035 2040

Real GDP (in billions of chained 2009 dollars)

Austin, TX Des Moines, IA Recession

GDP Comparison 50

Austin, TX

Des Moines, IA

Kansas City, MO-KS

Nashville, TN

Omaha Raleigh, NC

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

4.5

2010 2015 2020 2025 2030 2035 2040

Population (in millions)

* * * *

Source: U.S. Census Bureau, Population Division * Projection

Population Growth 51

3.1%

1.9%

0.8%

2.4%

1.1%

1.8%

Est. Avg. Annual Growth Rate

Customer Growth 52

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2003 2005 2007 2009 2011 2013 2015 2017 2019 2021

MUD Customers

Gas Water

5-Year Projected Annual Growth Rate: 0.8%

Questions or Comments? 53

METROPOLITAN UTILITIES DISTRICT Committee Meetings · 2018-03-07 · Mr. Keep invited Mr. McGowan...

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