METROPOLITAN UTILITIES DISTRICT Committee Meetings · 2019-06-05 · Voting Yes: Dowd, Frost,...

8:15 a.m. June 5, 2019

METROPOLITAN UTILITIES DISTRICT Committee Meetings

AGENDA

1. Safety Briefing2. Roll Call3. Open Meetings Act Notice4. Recognition of Partnership 4 Kids Mentors

Construction and Operations – Frost, Cavanaugh, Friend 1. Capital Expenditures [Dave DeBoer, SVP – Chief Operations Officer] – Tab 52. Acceptance of Contracts and Payment of Final Estimates [Dave DeBoer, SVP – Chief

Operations Officer] – Tab 63. Water Infrastructure Structural Lining Pilot Program [Dave DeBoer, SVP – Chief Operations

Officer] – Tab 194. Change Order No. 3 – Florence WTP Phase III Chemical Building Improvements [Mike

Koenig – Director of Water Production & Pumping] – Tab 75. Bids on Materials and Contracts [Jon Zellars, Director – Purchasing] – Tab 8

Services and Extensions – Howard, Friend, Begley 1. Main Extensions [Cory O’Brien – VP, Engineering & Construction] – Tab 10

Insurance and Pensions Committee – Howard, McGowan, Begley 1. Insurance Renewal [Joseph Schaffart, SVP & Chief Financial Officer] – Tab 11

Judicial and Legislative – Dowd, Cavanaugh, Howard 1. Fifth Legislative Report for 2019 [Rick Kubat, Governmental Relations Attorney] – Tab 122. Interlocal Agreement with the City of Springfield, Nebraska [Mark Mendenhall, SVP –

General Counsel] – Tab 13

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

Tab 142. Vice President, Safety, Security & Business Continuity Recommendation [Bonnie Savine,

VP - Human Resources] - Tab 153. Salary Increase Recommendation for SVP, Chief Operations Officer and SVP, Chief

Financial Officer [Bonnie Savine, VP - Human Resources] - Tab 16

9:00 a.m. June 5, 2019

METROPOLITAN UTILITIES DISTRICT Regular Meeting

AGENDA

1. 2. 3. 4.

Roll Call Open Meetings Act Notice Pledge of Allegiance Approval of Minutes – Public Hearing, Committee Meetings & Regular Board Meeting for May 1, 2019

CONSTRUCTION & OPERATIONS

5. 6. 7. 8. 9.

Capital Expenditures Acceptance of Contracts and Payment of Final Estimates Change Order No. 3 – Florence WTP Phase III Chemical Building Improvements Bids on Materials and Contracts Notice of Purchases Between $25,000 and $50,000

SERVICES & EXTENSIONS

10. Main Extensions

INSURANCE & PENSIONS

11. Insurance Renewal

JUDICIAL & LEGISLATIVE

12. 13.

Fifth Legislative Report for 2019Interlocal Agreement with the City of Springfield, Nebraska

PERSONNEL 14.15. 16.

Wage and/or Salary Increases and RatificationsVice President, Safety, Security & Business Continuity RecommendationSalary Increase Recommendation SVP, Chief Operations Officer and SVP, ChiefFinancial Officer

BOARD 17.18.

Other Matters of District Business for DiscussionCLOSED SESSION – Real Estate, Litigation & Personnel Matters

METROPOLITAN UTILITIES DISTRICT

Minutes of Public Hearing & Committee Meetings

May 1, 2019

Safety Briefing Senior Vice-President of Safety, Security and Field Operations Steve Ausdemore

provided a briefing regarding the District's safety and security protocol for all individuals in attendance at the Board Meeting in the event of an emergency.

Roll Call Chairman Tim Cavanaugh called the Committee Meetings to order at 8:15 a.m.

On a roll call vote, the following members were present:

Tom Dowd Jack Frost

Mike McGowan Gwen Howard

Tim Cavanaugh Jim Begley

Mark Doyle, Secretary and President

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

Mr. Friend was absent.

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

Meetings Act was posted in the rear of the Board Room.

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

Public Hearing - Billing Price Book (RESOLUTION) Mr. Cavanaugh announced that the Public Hearing on the Billing Price Book

revisions would begin. Manager of Budgeting and Financial Analysis Mark Myers reviewed the materials provided to Board Members, including an April 20, 2018 letter from Vice-President of Accounting Joseph Schaffart briefly outlining the revision process, a PowerPoint presentation, a detailed summary of the Billing Price Book revisions and the Resolution authorizing the implementation of the revisions. Mr. Myers pointed out that the annual review and revision process ensures that the pricing methodologies accurately represent the District's actual costs as nearly as possible, and that the District's customers are charged appropriately for these services.

Public Hearing, Committee Meetings & Regular Board Meeting May 1, 2019

Page 1 of 9

E0121328

Approved

At the conclusion of the presentation, Mr. Cavanaugh asked if anyone in the audience would like to comment on any of the proposed revisions that had been presented. There were none.

Construction and Operations - Frost, Cavanaugh, Friend Vice-President of Engineering and Construction Cory O'Brien reviewed the

proposed capital expenditures as outlined in his letter to the Committee dated April 17, 2019.

Mr. O'Brien reviewed the proposed acceptance of contracts and payment of final estimates as outlined in his letter to the Committee dated April 19, 2019.

Director of Purchasing Jon Zellars reviewed the proposed bids on materials and contracts as outlined in his letter to the Committee dated April 19, 2019.

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

Committee dated April 17, 2019.

Judicial and Legislative - Dowd, Cavanaugh, Howard Governmental Relations Attorney Rick Kubat reviewed his Fourth Legislative

Report dated April 23, 2019, updating the status of legislative bills that are currently of interest to the District.

Personnel - Begley, Frost, Friend Vice-President of Human Resources Bonnie Savine reviewed the proposed Wage

and/or Salary Increases and Ratifications as outlined in her letter to the Committee dated April 19, 2019.

Ms. Savine reviewed the Bargaining Unit Wage Reopener Recommendation as outlined in her letter dated April 18, 2019.

Ms. Savine reviewed her letter to the Committee dated April 24, 2019 presenting the recommendations from the Personnel Committee for selection of David DeBoer for the position of Senior Vice-President, Chief Operations Officer, and Joseph Schaffart for the position of Senior Vice-President, Chief Financial Officer.

Governance Committee - Begley, Dowd, Cavanaugh Senior Vice-President and General Counsel Mark Mendenhall reviewed the

proposed amendments to the Board Bylaws, as outlined in his letter to the Committee dated April 23, 2019 and as initially presented to the Board at its March 6, 2019 Board Meeting for consideration in his letter dated February 27, 2019.

Committee of the Whole President Mark Doyle presented the State of the District.


Page 2 of 9

Chairman Cavanaugh asked if any Board Members had any further comments. Board Members commended Mr. Doyle for the extensive review of the District's initiatives during the past year since Mr. Doyle's tenure as President first began, and the preview of District initiatives anticipated for the future. Chairman Cavanaugh asked if any members of the public had any comments. There were none.

At 9:36 a.m., Chairman Cavanaugh announced that the Committee Meetings were concluded and the regular Board Meeting would begin at 9:45 a.m.

MED/mjm

Mark E. Doyle Secretary and President


Page 3 of 9

METROPOLITAN UTILITIES DISTRICT

Minutes of Regular Board Meeting

May 1, 2019

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 9:45 a.m. on May 1, 2019.

Advance notice of the meeting was posted on the first floor of the Headquarters Building from April 3, 2019 to May 1, 2019. Notice of the meeting was published in The Omaha World-Herald on Sunday, April 21, 2019. The agenda of the meeting was available for public inspection at the office of the Secretary and President and delivered to Board Members on April 17, 2019. The agendas and accompanying board documents were posted to the M.U.D. website on April 25, 2019.

AGENDA NO.1 ROLL CALL

Chairman Tim Cavanaugh called the meeting to order at 9:46 a.m. On a roll call vote, the following members were present:

Tom Dowd Jack Frost

Mike McGowan Gwen Howard

Tim Cavanaugh Jim Begley

Mark Doyle, Secretary and President

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

Mr. Friend was absent.

AGENDA NO. 2 OPEN MEETINGS ACT NOTICE

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

Chairman Cavanaugh announced that the regular Board Meeting was being livestreamed .

AGENDA NO. 3 PLEDGE OF ALLEGIANCE

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


Page 4 of 9

E0121328

Approved

AGENDA NO. 4 APPROVAL OF MINUTES FOR COMMITTEE MEETINGS AND REGULAR BOARD MEETING FOR APRIL 31 2019

Mr. Frost moved to approve the minutes of the Committee Meetings and regular Board Meeting for April 3, 2019, which was seconded by Mr. Begley and carried on a roll call vote.

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

MINUTES FILE DOCUMENT NO. 137905

AGENDA NO. 5 BILLING PRICE BOOK (RESOLUTION)

Mr. McGowan moved to approve the Resolution authorizing the implementation of the proposed revisions of billing prices for service work and materials as recommended by Management together with the accompanying materials, effective June 2, 2019. The motion was seconded by Mr. Begley and carried on a roll call vote .



AGENDA NO. 6 CAPITAL EXPENDITURES

Mr. Frost moved to approve the capital expenditures as outlined in Mr. O'Brien's letter to the Committee dated April 17, 2019, which was seconded by Mr. McGowan and carried on a roll call vote.



AGENDA NO. 7 ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES

Mr. Frost moved to approve the acceptance of contracts and payment of final estimates as outlined in Mr. O'Brien's letter to the Committee dated April 19, 2019. The motion was seconded by Mr. McGowan and carried on a roll call vote.




Page 5 of 9

AGENDA NO. 8 BIDS ON MATERIALS AND CONTRACTS

Mr. Frost moved to approve Management's recommendations with regard to bids for materials and contracts as described in Mr. Zellars' letter to the Committee dated April 19, 2019. The motion was seconded by Mr. McGowan and carried on a roll call vote.



AGENDA NO. 9 MAIN EXTENSIONS

Ms. Howard moved to approve the main extensions as outlined in Mr. O'Brien's letter to the Committee dated April 17, 2019. The motion was seconded by Mr. Begley and carried on a roll call vote.



AGENDA NO. 10 FOURTH LEGISLATIVE REPORT FOR 2019

Mr. Dowd moved to approve the Fourth Legislative Report dated April 23, 2019 as presented to the Committee by Mr. Kubat, which was seconded by Ms. Howard and carried on a roll call vote.



AGENDA NO. 11 WAGE AND/OR SALARY INCREASES AND RATIFICATIONS

Mr. Begley moved to approve the wage and/or salary increases and ratifications as outlined in Ms. Savine's letter to the Committee dated April 19, 2019, which was seconded by Mr. Frost and carried on a roll call vote.




Page 6 of 9

AGENDA NO. 12 BARGAINING UNIT WAGE REOPENER RECOMMENDATION

Mr. Begley moved to approve the Bargaining Unit Wage Reopener Recommendation as outlined in Ms. Savine's letter to the Committee dated April 18, 2019, which was seconded by Mr. McGowan and carried on a roll call vote.



AGENDA NO. 13 SELECTION OF SENIOR VICE-PRESIDENT/CHIEF OPERATIONS OFFICER AND SENIOR VICE-PRESIDENT, CHIEF FINANCIAL OFFICER

Mr. Begley moved to approve the selection of Dave Deboer as Senior VicePresident and Chief Operations Officer, and Joseph Schaffart as Senior Vice-President and Chief Financial Officer, as recommended by the Personnel Committee and as outlined in Ms. Savine's letter to the Committee dated April 24, 2019. The motion was seconded by Mr. McGowan and carried on a roll call vote.



AGENDA NO. 14 AMENDMENTS TO BOARD BYLAWS

Mr. Begley moved to approve the amendments to the Board Bylaws as outlined in Mr. Mendenhall's letter to the Committee dated April 23, 2019, accompanied by the Bylaws draft showing the proposed changes. The agenda item was presented at the March 6, 2019 Board Meeting and laid over for two successive regular Board Meetings as required under the Board Bylaws (Article XI, Section 1). The motion was seconded by Ms. Howard and carried on a roll call vote.



The sequence of the agenda items was changed to allow for a Closed Session prior to the vote taken on the President's performance and salary review.

Chairman Cavanaugh announced that the Board would be going into Closed Session but would first take up the agenda item pertaining to Other Matters of District Business for Discussion.


Page 7 of 9

Mr. Mendenhall reported that President Doyle signed the purchase agreement the previous day for the District's new headquarters building and noted that the District's Facilities Management team has begun preparations for the move. He reminded the Board that M.U.D. is committed to maintaining a presence in the downtown area at the Omaha Public Power District's (OPPD) headquarters building.

Mr. Doyle noted that the relocation is the first piece of the facilities master plan to consolidate, optimize and modernize the District's work space, and the District is looking ahead to the development of a Construction Center annex and a training center, further advancing the District's strategic objectives of safety and business continuity. Mr. Doyle thanked OPPD for factoring M.U.D. into its plans for the development of a safe and secure customer service-oriented lobby area. Mr. Doyle noted that the continued cooperative partnership between the two utilities serves the public's interests.

Chairman Cavanaugh asked if there were any other comments. There were none.

CLOSED SESSION - LITIGATION & PERSONNEL MATTERS At 9:57 a.m., Mr. Frost moved to go into Closed Session for the purpose of

discussing litigation and personnel, which was seconded by Mr. Begley and carried on a roll call vote.



At 10:58, Mr. Begley moved to return to Open Session which was seconded by Mr. Frost and carried on a roll call vote.



AGENDA NO. 15 PRESIDENT'S PERFORMANCE AND SALARY REVIEW

Mr. Begley moved to approve a salary of $287,500 retroactive to March 1, 2019, which was seconded by Ms. Howard and carried on a roll call vote.




Page 8 of 9

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



The meeting was adjourned at 11 :00 a.m.

MED/mjm

Secretary and President


Page 9 of 9

METROPOLITAN UTILITIES DISTRICT Inter-Department Communication

May 22, 2019

Subject: CAPITAL EXPENDITURES

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

and all Vice Presidents

From: Dave W. DeBoer, Senior Vice President, Chief Operations Officer

The following items will be on the June 5, 2019 Committee Agenda for consideration and the June 5, 2019 Board Agenda for approval:

BUILDINGS, PLANTS AND EQUIPMENT

1. 100071000697 - $325,000 - Contracted hydrant painting. Water Distribution has a work plan to paint 3,000 to 4,000 hydrants every year. Part of this effort is accomplished with summer employees, but most are done by a contract painter. The contractor will sandblast, prime and apply a top coat which provides a longer lasting finish. Our customers are typically appreciative of hydrants in their area having a fresh coat of paint since the before and after finish is very noticeable. Paint color also provides information to the fire department. This authorization will allow us to paint up to 3,015 hydrants via contract.

2. 100083001096 - $2,838,200 - Rehabilitation of Basin 1, Florence. In 2010, the District completed a Capital Improvements Plan (GIP) which identified several projects to be completed between 2017 and 2020 known as Phase Ill. Phase Ill of the GIP consists of both condition-related improvement/repair projects and process-related improvement projects. This project includes the rehabilitation of Basin 1 as identified in Phase Ill of the GIP. Major items of repair and improvement include repairing concrete on the basin floor and sloped walls, resealing concrete seams/cracks, removing and replacing cementitious overlay, structural modifications to the effluent weir structure and replacing mud valve control lines. Some safety upgrades include a fixed access ladder system, installing an above-grade structure to house the piping header for controls of the mud valves and boundary cables between the existing railings.

3. 100003011818, 100003011819 and 100003011820 - $3,000,000 - Flood repairs to Florence, Platte West and Platte South. The District's three water production facilities were significantly impacted by the March 2019 flood event. Flooding caused damage to wellfield roads, deposited large amounts of sand and filled drainage ditches, scattered trees and other objects throughout the wellfields, weakened river bank embankment, damaged electrical services, weakened existing levees and created large washout areas. It is critical to restore the facilities to pre-flood conditions in a timely

E0121328

Approved

manner. In addition to design and construction, assistance with FEMA compliance and guidance for program requirements to maximize reimbursement is needed. Please note that we anticipate most of the expenditures will be recovered through the District's insurance provider and FEMA. It is requested that the President be authorized to enter into an agreement with various consultants and contractors as needed to provide services related to the March 2019 flood event. The majority of the consultant services at Platte South will be sole-sourced with HOR.

4. 100084001246 - $88,000 - Parking lot improvements, LNG. All damaged pavement in the parking lot south of the office building will be removed and replaced. Various areas of curb repair will be done in the parking lot west of the office building. During the winter, a plow truck struck and uplifted a curb inlet. This will be reset to its original condition. Lastly, damaged pavement panels on the south side of the plant will be removed and replaced.

Approved:

Dave W. DeBoer Senior Vice President, Chief Operations Officer (402) 504-7209

-2-


May 24, 2019

Subject: ACCEPTANCE OF CONTRACTS AND PAYMENT OF FINAL ESTIMATES

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

Presidents

From: Dave W. DeBoer, Senior Vice President, Chief Operations Officer

Work has been satisfactorily completed on the following contracts and final payment is recommended:

Contract Board Amounts Approval Date *Unit Price Bid Actual Final

a. Est. 8 - City of Omaha, 100053001355, 100053001356, 100067001338, Joint contract -

December 6, 2017 $348,303.30 $317,510.78 $27,793.79 City of Omaha 168th Street improvement project, Boyle Street to Bedford Avenue.

Comments: There was a reduction in unit quantities of $30,792.52.


b. Est. 2 - T J Osborn Construction, 100057000438, 100055001205, 100057000425, 100055001171, Install 2,320 feet December 6, 2017 $645,000.00 $645,000.00 $37,003.99 of 36-inch water main in 168th

Street from Highway 370 to Jackson Street.

Comments: All work has been completed by the contractor, is acceptable and in compliance with the scope of work.


c. Est. 2 - Tab Construction, 100055001243, I nstal I water

February 7, 2018 $74,236.40 $78,279.10 $10,183.96 mains in Relevant Community Church, 21220 Elkhorn Drive.

Comments: There were increases in unit quantities of $1,942.70 and $2,100.00 for concrete pavement.

E0121328

Approved

Contract Board Amounts Approval Date Bid Actual Final

d. Est. 2 - Independent Roofing, 100083001072, Roof

June 13, 2018 $49,800.00 $49,800.00 $7,050.00 replacement at the 132nd Street pump station.

Comments: All work has been completed by the contractor, is acceptable and in compliance with the scope of work.

Contract Board Amounts Approval Date Bid Actual Final

e. Est. 3 - Cedar Construction, 100055001214, 100057000440, Install water mains in Palisades December 6, 2017 $504,862.00 $522,269.00 $66,379.49 West, 180th Street and Palisades Drive.

Comments: There were increases in unit quantities of $12,914.50 due to extra work required to adjust the depth of a portion of the main and $4,492.50 for extra depth, erosion and mobilization.

*Based upon Engineering's estimated unit quantities.

Approved:

Dave W. DeBoer Senior Vice President, Chief Operations Officer (402) 504-7209

-2-


May 30, 2019

Subject: WATER INFRASTRUCTURE STRUCTURAL LINING PILOT PROGRAM -FER-PAL INFRASTRUCTURE

To: Committee on Construction & Operations cc: All Board Members, Doyle, Schaffart, DeBoer, Mendenhall, Stanley, Ausdemore, and all Vice Presidents

From: Stephanie L. Henn, Director, Plant Engineering

Overview

The District's aging water mains currently require replacement or rehabilitation to restore more reliability to the water distribution system and reduce water main breaks.

As a part of the District's water infrastructure replacement program, in 2019, the goal is to abandon 10 miles of aging water infrastructure pipe. To accomplish this, we are embarking on a multiphased approach, including direct replacement, and other technologies.

One of these technologies is the structural lining of existing pipe. While this is a newer technology, the District has used this on 3 larger business/residential projects and a few smaller repair type projects over the last 9 years. The District has chosen Fer-Pal Infrastructure ("Fer-Pal") for a structural lining pilot program for this endeavor in 2019.

2019 Goals

Including the proposed structural lining projects that the District is planning for 2019, the following 10-mile abandonment goal break down for 2019 is as follows:

• MUD Crews (direct replacement- ductile iron) • Roloff Construction (direct replacement - ductile iron) • M.E. Collins (direct replacement- ductile iron & PVC) • Fer-Pal (structural lining)

TOTAL

4.75 miles 1.75 miles 1.25 miles 2.25 miles

10 miles

Page 1 of 3

E0121328

Approved

Structural Lining Technology

Structural lining is a rehabilitation solution, rather than direct replacement for aging water infrastructure piping. This process involves installing a high strength liner inside the existing water main. The expected benefits of lining the main versus direct replacement includes faster construction, fewer traffic and paving impacts, and fewer excavations, all of which benefit our customers.

The cleaning and lining process requires the existing water main be taken out of service. To provide uninterrupted water and fire hydrant service, a temporary "by-pass" water system, comprised of PVC plastic piping, will be installed above ground on both sides of the street, with hoses connected to an outside water faucet on each home, providing water to each home or business.

Pilot Year 2019

In 2019, the District plans to hire Fer-Pal to perform structural lining of existing aging water infrastructure pipe for a total of up to 4 projects to abandon a total of approximately 2.25 miles. This will be considered a pilot year with Fer-Pal. Provided the work and costs are acceptable, and both parties would like to continue, the work can be expanded in 2020 and beyond, being reviewed annually.

We anticipate Fer-Pal beginning work in June of this year, and be completed by November. Depending on how the work progresses, the District will have the option to stop Fer-Pal from starting any of the projects during pilot period if the work is progressing slowly and winter weather nears.

Fer-Pal is an established structural lining contractor. Structural lining technology has been in existence for approximately 40 years. Fer-Pal was established in 1986 as a trenchless technology company for water main rehabilitation solutions. They are based in both Canada and the United States, having offices in three locations (one in Canada, two in the United States). Fer-Pal specializes in projects utilizing their structural lining technology in cities in both countries.

Fer-Pal will be using a local subcontractor that will be performing all the paving, restoration, and water piping connection work.

We are currently negotiating prices with Fer-Pal for the 2019 construction season. We are confident that we will come to an agreement on estimated prices that are reasonable and comparative to previous structural lining projects. Price negotiations for possible future work would occur annually, providing the work is going well, and both parties want to continue.

Near the end of the 2019 construction season, we will have a better idea of how the actual, instead of estimated prices, compare to both previous structural lining projects and direct replacement projects being performed this year in the different aspects of the water infrastructure replacement program.

Page 2 of 3

Conclusion

The District has selected Fer-Pal Infrastructure to perform a structural lining pilot program in 2019. This endeavor with help us achieve our goal of abandoning 10 miles of aging water infrastructure piping in 2019. Structural lining is a rehabilitation solution, rather than a direct replacement application for aging water infrastructure pipe. This involves installing a high strength liner inside the existing water main . While structural lining is a newer technology, the District has used it on and off over the last 9 years.

Provided that the work and costs are acceptable, and both the District and Fer-Pal would like to continue, the work can be expanded in 2020 and reviewed annually.

It is important that the District use different approaches and technologies to achieve our 10-mile abandonment goal as a part of the water infrastructure replacement plan in 2019 and as we expand these goals in the future. Ultimately, over time, more aging water infrastructure piping will be removed from the system, resulting in safe, more reliable water service for our customers.

Management is recommending that with the approval of this request, the president be authorized to enter into a contract with Fer-Pal Infrastructure to structurally line existing water mains in 2019 as one part of the District's water infrastructure replacement program. Your approval is requested.

APPROVED: ~

~~ Cory J. O'Brien Vice President, Engineering & Construction

CONCURRED:

David DeBoer Senior Vice President, Operations

Step nie L. Henn Director, Plant Engineering

Page 3 of 3

DocuSign Envelope ID: 92F02AC7-A686-4511-9CDE-6B920CCAA0DB


May 22, 2019

SUBJECT: CHANGE ORDER NO. 3 - Florence WTP Phase Ill Chemical Building Improvements - 100083001062

TO:

FROM:

Construction and Operations Committee (Messrs . Frost, Cavanaugh and Friend) Cc: All Board Members and Messrs. Doyle, Mendenhall, DeBoer, Stanley, Schaffart, Ausdemore and All Vice Presidents

Michael A. Koenig, Director- Water Pumping and Production

On May 2, 2018 the Board of Directors awarded a contract to Hawkins Construction Company for the Phase Ill Chemical Building Improvements at the Florence Water Treatment Plant. The original contract price was $22,127,439.10 with the approval of Change Orders No 1 and 2 increasing the total contract price to $22,172,101.99. Change Order No. 3 in the amount of $145,226.70 consists of eleven (11) items and increases the total contract price to $22,317,328.69 (0.6% increase) .

Item No. 1 represents an additional cost of $41,898.40 to correct errors on the Input/output (1/0) point locations and to add a new stainless-steel enclosure for the 1/0 cards. The errors resulted in some rework by the contractor including drawing revisions and wiring changes . Since this change was the result of the Engineer's errors and required rework to correct the Engineer will share in the costs and reimburse the District for a portion of the costs.

Item No. 2 represents an additional cost of $4,088.00 for changes to the door and hardware schedule requested by District Security staff. The bulk of these charges relate to the addition of a security door behind the reception desk that can be monitored and locked down if required to keep non-staff from the office areas.

Item No. 3 represents an additional cost of $8 ,127.00 for additions/modifications to the powder activated carbon (PAC) unloading dust collector fire suppression system piping and wiring. In order to coordinate the filtration systems on the third-floor storage bins ventilation systems, the hardware and control loop descriptions were not included in the original contract documents until the bin ventilation system submittals where received. Doing so will ensures a more consistent system matching equipment and operation logic of the on each leg of the unloading system which will improve operation, maintenance and simplify spare parts.

Item No. 4 represents an additional cost of $4,329.00 for added valves on the lime feed pump discharge lines. These valves allow for manual isolation of the lime loop form the pump to be used for maintenance of the pump and was recommended post design by the systems manufacturer, RDP Technologies, Inc. Without these valves the plant maintenance staff would need to drain slurry onto the floor requiring significant cleanup and waste of product.

Item No. 5 represents an additional cost of $18,205.30 to modify the Chemical Storage Floor cross conveyor slide gate locations in addition to adding an additional gate. This modification allows for chemical (lime, alum and soda ash) unloading to occur via the

E0121328

Approved

DocuSign Envelope ID: 92F02AC7-A686-451 1-9CDE-6B920CCAA0DB

plant's control system. The slide gates were originally shown in the design documents on the bottom side of the cross conveyor replacing the manual isolation gates for maintenance activities. Without this change the system would not be able to divert dry chemicals from the elevation leg to the cross/delivery augers without manipulating existing diverter valves which were very difficult to operate without large pipe wrenches and chain wheel operators.

Item No. 6 represents an additional cost of $9,950.00 for revised wall sections and details. Drawing sheets were reissued by HOR to document changes made in the Shop Drawing review process to Curtainwall , Fascia and Soffit, and supply additional detail for these areas. Changes and additional detail included work items not originally in the Contractor's bid.

Item No. 7 represents an additional cost of $21,933.00 for extending hoses and piping in the concrete hose chase (flume). This flume extends 900 feet from the Chemical Building to the Primary Treatment Basins. During the winter it was noted that the lime, alum and soda ash pvc piping that runs in the flume had shrunk and in some cases fallen from its pipe supports. In order to mitigate this issue in the future the District opted to add short stub sections of tubing in the flume at the bends.

Item No. 8 represents an additional cost of $15,523.00 to install steel platforms at the Primary Treatment Basin. This platform holds the new lime feed system's dosing assemblies. The dosing assembly at each basin was supplied by the lime slaking equipment manufacturer, RDP Technologies, and is an insulated enclosure. Inside this enclosure resides the equipment (flow meter, pinch valve, grit trap and associated piping). The original location of these assemblies was shown on the existing walkway. However, once the assemblies and enclosures were on site and a mockup of one was made, it was found that given the equipment layout and the routine maintenance required within the enclosures necessitated changes. The best solution for this is to provide a platform at each primary basin so that these enclosures can mount independent of the walkway. Other benefits from this solution include not congesting the existing walkway and blocking the maintenance of the basins intermediate drive gear and motor. Also, the existing cathodic protection will not require relocation which will partially offset the installation costs. This item is only for the labor required to install the platform and the material component change order was added in Change Order No. 2.

Item No. 9 represents an additional cost of $4,434.00 to detail, furnish and install window sill mounting steel for the third-floor window sills. The design drawings were based on conditions shown in the original building construction drawings from the 1950's. Those drawings were showing an imbedded steel lintel that was planned to be used for anchoring the new window framework to acquire the proper wind load rating of the glass system. Once the demo of the existing masonry was performed, it was discovered that the original drawings were not accurate and the steel that was shown didn't exist. Without this added steel the window system in this area would not be able to meet the wind load rating required and therefore the manufacturer would not warrant its installation .

Item No. 10 represents an additional cost of $14,456.00 to refine the specified reverse osmosis (RO) lab water system. During the submittal review of the specified system, it

2

DocuSign Envelope ID: 92F02AC7-A686-4511-9CDE-6B920CCAA0DB

was found that there were some components that didn't get included in the contract. Those items include a storage tank and recirculation system to make sure there would not be a supply interruption during usage. The extra components consist of a storage tank, a recirculation pump and an ultra violet unit to disinfect the stored RO water. Without these added components the RO water quality would degrade and become contaminated with bacteria growth and contaminate the sterile water supply that the lab relies on for much of their testing.

Item No. 11 represents an additional cost of $2,283.00 to correct issues found on a roof drain location. The contractor identified a problem with roof drain pipe configuration that would potentially allow the roof drain piping to freeze. Based on this finding the roof drain piping was relocated and reconfigured . The reconfigured roof drain piping required a changed slope on the canopy roof and four additional thru-wall scuppers.

To prevent delays, construction of these items is underway and your approval is requested.

[/\4i~:lgb~1 M .F3,il0A125jlCJ194G~ -- •

IcnaeI A . I\.Oentg Director, Water Pumping and Production

Approved:

~~ J im61§hter8s°°· Vice President, Water Operations

[ADocuSlgned by:

L~s~~ Mark Mendenhall Senior Vice President, General Counsel

3

lnDocuSlgned by:

L£~A~:EE~~!~ Dave W. DeBoer Senior Vice President, Chief Operations Officer

~DocuSlgned by:

~ 1~?:s~!1. Mark E. Doye President


May 23, 2019

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

To: Construction & Operations Committee cc: All Board Members, Doyle, Ausdemore, DeBoer, Mendenhall, Schaffart, Stanley

and all Vice Presidents

From: Jon A. Zellars, Director, Purchasing

The following items will be on the June 5, 2019 Committee Agenda for consideration and the June 5, 2019 Board Agenda for approval. The recommended bid is balded and listed first.

WATER/GAS MAIN CONTRACTS

Item

Install Water Mains in Ida Pointe North, 185th Street and Purple Martin Parkway 100057000462 100055001296 100055001280 WP1640 Engineering Estimate: $962,264.00

Bids Sent / Rec'd

18/2

Bidders

T.J. Osborn Const. Cedar Construction

Bid Amount

$1,162,631.00 1,212,942.00

(A C&A in the amount of $1,444,852.00 will be presented to the Board on June 5, 2019 for approval.)

Install Water Mains in 180th Street and George Miller Parkway for Elkhorn High School #3 100055001277 WP1635 Engineering Estimate: $85,970.00

18/3 Kersten Construction Cedar Construction Pat Thomas Const.

$91,932.00 105,550.00 125,931.50

(A C&A in the amount of $129,471.00 will be presented to the Board on June 5, 2019 for approval.)

Install Water Mains in Karen Christian Church, 6010 N. 49th Street 100055001294 WP 1667 Engineering Estimate: $119,685.00

18/2 Cedar Construction Kersten Construction

$107,043.43 148,513.00


Page 1 of 3

E0121328

Approved

Install Water Mains in Prairie Hollow 154th Street and Highway 36 100055001283 10053001401 100067001381 WP1646 Engineering Estimate: $193,133.00

18/1 Cedar Construction $197,395.00


Install Water Mains in Remmington Ridge, 196th Street and Giles Road 100055001289 100057000465 WP1655 Engineering Estimate: $290,215.00

18/2 Cedar Construction Kersten Construction

$266,175.50 271,707.00


Install Water Mains in 1-80 Logistics Hub, 18/2 132nd Street and Cornhusker Road 100055001298 WP 1672 Engineering Estimate: $209,832.00

Kersten Construction Cedar Construction

$189,027.00 199,845.00


OTHER

Bids Sent Item / Rec'd Bidders Bid Amount

Install Internal Joint Seals in a 30" 2/2 Miller Pipeline $48,950.00* Cast Iron Water Main in "Q" Street Hydra Tech 40,615.50* between South 26th Street and Ed Babe Gomez Avenue 100051001040 R1977 *Reject all bids

Two (2) 24,000 LB Tandem Axle 7/3 Northern Truck Eq. $42,668.00* Trailers NMC 43,000.00* 100088000756 MGS 60,796.00* *Reject all bids

Page 2 of 3

Rehabilitate Basin #1 at the Florence Water Treatment Plant 100083001096

13/2 McGill Restoration Building Crafts

$2,244,244.00 3,300,000.00

(A C&A in the amount of $2,838,200.00 will be presented to the Board on June 5, 2019 for approval.)

LNG Parking Lot Improvements 3/1 Cormaci Construction $68,600.00 100084001246 GP2488 (A C&A in the amount of $88,000.00 will be presented to the Board on June 5, 2019 for approval.)

Item

Sandblast and Paint District Fire Hydrants (June 2019 to December 2021)

Jon A. Zellars Director, Purchasing ( 402) 504-7253

Approved:

Joseph J. Schaffart ~

Senior Vice President, CFO

711 Mark E. Doyle President

ANNUALS

Bids Sent / Rec'd

5/3

Page 3 of 3

Bidders

Muscat Painting Buss Lincoln W.S. Bunch

Bid Amount

$508,184.00 617,200.00

1,259,390.00


May 23 , 2019

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

To: All Board Members cc: Doyle, Ausdemore, DeBoer, Mendenhall, Schaffart, Stanley and all Vice

Presidents

From: Jon A. Zellars, Director, Purchasing

During the month of May, 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.

Service the #3 Florence Low Service Wound Rotor Induction Motor

Jon A. Zellars Director, Purchasing (402) 504-7253

Joseph J. Schaffart Senior Vice President, CFO

Bids Sent / Rec'd

4/2

Page 1 of 1

Bidder

Hupp Electric Motors Malloy Electric

Amount Bid

$34,825.00 57,895.00

~~ Mark E. Doyle President

E0121328

Placed on File

1.

2.

3.


May 28, 2019

Subject: MAIN EXTENSIONS

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

Vice Presidents

From: Cory J. O'Brien, Vice President, Engineering and Construction

The following main extensions will be on the June 5, 2019 Committee Agenda for consideration and the June 5, 2019 Board Agenda for approval:

WATER

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

100055001277 $129,471 $129,471 Pioneer Contribution 21,472 21,472 $0 $0

Total $150,943 $150,943

These mains are being installed to provide domestic water service and fire protection to one school lot at 180th Street and George B. Miller Parkway. There are pioneer main fees of $21,472 due to the 30-inch water main in West Maple Road and the 24-inch water main in 180th Street. (City of Omaha zoning, DLR Group)

Job Number Project Cost Applicant Construction

M.U.D. Cost Contribution by Applicant

100055001289 $226,033 $226,033 100057000465 131,959 131,959

$0 $0 Pioneer Contribution 39,371 39,371 Total $397,363 $397,363

These mains are being installed to provide domestic water service and fire protection to 52 single-residence lots in Remington Ridge Subdivision, 198th Street and West Giles Road. There are pioneer main fees of $39,371 due to the 36-inch water mains in 192nd and Harrison Streets. (Sarpy County zoning, Boyer Young Equities XIV, LLC)


100055001298 $240,227 $240,227 Pioneer Contribution 74,634 74,634 $0 $0

Total $314,861 $314,861

These mains are being installed to provide domestic water service and fire protection to five industrial lots in 1-80 Logistics Hub Subdivision, 132nd Street and Cornhusker Road. There are pioneer main fees of $74,634 due to the 24-inch water mains in 132nd Street. (City of Papillion zoning, Tribedo, LLC)

E0121328

Approved

4.

5.

6.

WATER (con't)


100055001294 $140,742 $140,742 $0 $0

These mains are being installed to provide domestic water service and fire protection to Karen Christian Revival Church at 6010 North 49th Street. (City of Omaha zoning, Karen Christian Revival Church)


100055001283 $201,482 $201,482 $ 0 100053001401 52,548 0

$0 52,548

Pioneer Contribution 36,458 36,458 0 Total $290,488 $237,940 $52 ,548

This main is being installed to provide domestic water service and fire protection to 83 single-residence lots in Prairie Hollow Subdivision, Allen Street and State Highway 36. There was a relocation necessary because an existing 8-inch water main crossing the subdivision was outside its easement. This main was acquired by the District with the Bennington water system. There are pioneer main fees of $36,458 due to the 24-inch water main in 156th Street and 16-inch water mains in 156th Street and Bennington Road. (City of Bennington zoning, Smart Development, LLC)


100055001280 $ 519,140 $ 519,140 $ 0 100055001296 32,092 32,092 0 100057000462 893,620 495,065 $0 398,555

Pioneer Contribution 33,530 33,530 0 Total $1,478,382 $1,079,827 $398,555

These mains are being installed to provide domestic water service and fire protection to four lots for an elementary and middle school campus in the Ida Pointe North Subdivision, 185th Street and Purple Martin Parkway. The developer is required to pay a 12-inch equivalent cost (55.4%) of the 24-inich main in 180th Street in the amount of $495,065. Impact fees will pay for the oversizing in the amount of $398,555. There are pioneer main fees of $33,530 due to the 24- and 30-inch water mains in 180th

Street and West Maple Road. (City of Omaha zoning, Elkhorn Public Schools)

Approved:

Dave W. DeBoer Senior Vice President, Chief Operations Officer

-2-

&!~ Cory J. O'Brien Vice President, Engineering and Construction (402) 504-7851

METROPOLITAN UTILITIES DISTRICT Inter-Departmental Communication

May 28, 2019

Subject: INSURANCE RENEWALS - PROPERTY, BOILER, CAVERNS, CONSTRUCTION EQUIPMENT, AUTO/FLEET AND DATA PROCESSING EQUIPMENT

To:

From:

Insurance and Pension Committee cc: All Board Members; Doyle, Ausdemore, DeBoer, Mendenhall , Stanley and all Vice

Presidents

Joseph J. Schaffart, Senior Vice President, Chief Financial Officer

The following insurance policies expire June 15, 2019 and require action:

Property Policy Equipment Breakdown Data Processing Equipment

LNG/Propane Caverns/Contents Construction Equipment Auto/Fleet

Following is a brief description of the various insurance policies to be renewed and the corresponding policy-specific points of interest:

Property/LNG Propane Caverns/Equipment Breakdown/Data Processing

First-party insurance that addresses all risks of physical loss or damage, including but not limited to property damage, extra expense and machinery breakdown, losses from terrorism, earth movement, windstorm, storm surge, flooding and other coverages as described in the policy. Please note that the policy cost information presented below has been adjusted to remove commissions and engineering related fees associated with loss control and risk assessment.

Property - without LNG & Caverns Insurance Carrier Total Insurable Values Average Rate per $100 of Insured Value Premium

Property - LNG & Caverns

Insurance Carrier Total Insurable Values Average Rate per $100 of Insured Value Premium

Equipment Breakdown


Expiring Policy

AEGIS/Starr Tech $830.1 million NIA-combined rate NIA-combined


AEGIS/Starr Tech Included above NIA-combined rate NIA-combined

Proposed Policy

AEGIS/Starr Tech $87 4 . 7 million *1 NIA - combined rate NIA - combined premium

AEGIS/Starr Tech $82.5 million N/A - combined rate NIA - combined premium

AEGIS/Starr Tech Included above N/A - combined rate N/A - combined premium

E0121328

Approved

Data Processing Equipment Insurance Carrier Total Insurable Values Average Rate per $100 of Insured Value Premium


Total Property/Equipment Breakdown/Data Processing

Total Insurable Values $911.6 million Average Rate per $100 of Insured Value $0.0430 Premium $391 ,852

Auto/Fleet

AEGIS/Starr Tech $6.2 million N/A - combined rate N/A - combined premium

$963.4 million $0.0520 $500,604

Physical damage insurance coverage for comprehensive and specified perils losses resulting from theft, fire, vandalism or various natural disasters (weather, etc.).

Insurance Carrier Vehicle Count - All Types Overall Average Rate per Unit Premium

Construction/Contractor's Equipment

Expiring Policy Nationwide 443 $84.47 $37,422

Proposed Policy Nationwide 446 $92.02 $41,040

Coverage directed at loss or damage to covered property defined as owned and rented construction equipment, tools and heavy equipment when the loss is caused by covered perils.


Subtotal - Premiums

Inspection Fees

Insurance Brokerage Fees

Total Insurance Premiums and Fees

Expiring Policy Continental Casualty $32.4 million $0.0981 $31 ,806

$461,080

$6,100

$57,500

$524,680

Proposed Policy Continental Casualty $32.9 million $0.0991 $32,646

$574,290

$6,100

$57,500

$637,890

*1 Includes $8.5 million for the new Corporate Headquarters building as well as the value of the Downtown building.

Consistent with the approach used for the expiring insurance program, the AEGIS program has a $300 million loss limit per loss, despite total property insurable values of $963.4 million. Loss limits are provided by most carriers because the total level of values will likely exceed their individual capacity, and because it is highly unlikely that an insured will incur a 100% loss to all assets from any one occurrence. In determining premiums, insurers determine the Maximum Foreseeable Loss (MFL) for

-2-

the assets being insured. AEGIS has estimated the MFL for the District as being under $100 million; Aon and AEGIS believe a $300 million loss limit is more than adequate to address the District's risk. It should be noted that the aforementioned $963.4 million of insurable value is spread among many separate locations; it is highly unlikely that one event would result in a 100% loss at all locations.

The proposed insurance premiums are notably higher than prior year amounts due to: 1) an insurance market that has experienced substantial claim losses (Hurricane Florence, Hurricane Michael and a major gas explosion in the Northeast), 2) the District's pending flood damage claim that is estimated at $3 million, and 3) increased insurable values. Due to the magnitude of the increase in premiums, a representative from Aon Risk Services, Gary Wagner, will be present at the June 5, 2019 Board Committee meeting to speak to this issue and to address any questions you may have.

Please note that an Aon-prepared Executive Summary has been attached as well as additional detailed schedules for each of the policies referenced above to facilitate review. Consistent with prior practice, our insurance broker markets the various lines of coverage to additional insurance carriers, to ensure that we are provided the best value. In light of the aforementioned change in the insurance marketplace, this was particularly important this year. The marketing efforts employed by Aon are addressed in the attached schedules and will be addressed by Mr. Wagner as part of his commentary at the Committee meeting.

Management recommends the Board approve the insurance proposals noted above for the period June 15, 2019 through June 15, 2020. As noted above, the insurance proposals result in combined annual premiums and fees of $637,890, which represents an increase of $113,210, or 21 .6%, as compared to the prior combined premiums and fees of $524,680. The increase is driven by an increase in insurable values as well as an increase in the cost per dollar of insured value for the reasons cited previously.

Approved:

Attachments

rJ-r Joseph J. Schaffart Senior Vice President, Chief Financial Officer (402) 504-7111

-3-

AON Empower Results•

Metropolitan Utilities District

Proposal of Coverage

Property/Equipment Breakdown Auto Comprehensive and Special Cause of Loss

Contractor's Equipment

June 15, 2019 to June 15, 2020

AON TABLE OF CONTENTS

EXECUTIVE SUMMARY.............................................................................................................. 1

PREMIUM SUMMARY/ REVENUE DISCLOSURE.......................................................................... 2

Rate I Exposure Comparison

INSURANCE PROPOSAL............................................................................................................ 3

• Coverage Overview

The services and placements outlined in this proposal will be provided in accordance with the terms of the notices and policies set forth in Aons Disclosures and Commitments to Clients letter, (see also http:llwww.aon.com/about-aon/corporate•governance/guidelines-policieslars-disclosures-commitmentsjsp).

Section 1

AON Empower Re1u1ts•

EXECUTIVE SUMMARY

MARKET OVERVIEW The insurance market is in a transitioning phase which is becoming more challenging. Both the property and casualty markets are hardening and for the first time in years we are seeing rate pressure across the property, general liability, auto, and umbrella lines regardless of loss history.

In the last half of 2018, the utility property sector experienced Hurricane Florence in September and Hurricane Michael in October, a major gas explosion in the Northeast, a large steam turbine event in October and continued wildfires in the West. Industry results have been poor across most underwriting portfolios. Most results are just now being announced, but we know from several of our key underwriting partners that overall property results and results of the utility sector have been poor.

Regardless of utility sector results and the fact that market capacity for power and utility clients remains abundant, most markets are pushing for rate increases as high as double digits (10% to 20%). With rate increases being sought, there are still opportunistic markets looking to write new business or to expand their lines on some accounts, effectively applying pressure to keep rate increases to a minimum. We have seen further momentum for increased rate from the market. In the 4th quarter 2018, rate increases were in the low single digit, in the first quarter of 2019 rate increases have been in the 5% to 10% range, however the hardening of the market is gaining momentum where loss free accounts are now seeing rate increases around to 10% with outliers for clients with adverse loss experience.

Unfortunately, the District experienced property damage as a result of the regional flooding which occurred in March 2019 and there is an open flood claim with AEGIS and Starr Tech. At this time the loss is conservatively estimated at $3.0m.

The auto continues to be a loss-leader for casualty insurers. Auto claims continue to trend higher in both severity and frequency, primarily driven by increased costs in contingent and vicarious liabilities (medical and litigation), distracted driving and the opioid epidemic, and the increased repair costs and complexity to repair newer model vehicles. The monoline comprehensive auto market capacity is limited and many insurers continue to be impacted comprehensive in this region (hail and flood) . As a result, we continue to see high singledigit to low double-digit increases, even those with positive loss experience.

For 2018, the renewal strategy was to maintain the program structure and manage the transitioning insurance market. In addition to approaching the incumbent markets, it was recommended to obtain alternatives from various insurers to try and drive competition and minimize the rate increases. Typically, it is not recommended to move an insurance program to another insurer while there is an open claim as it can lead to difficulty in settling the claim and achieving a satisfactory result. However, we believed it would still be prudent to look at other options for the District considering the hardening market.


PROPERTY

The District's property program is a $300.0m loss limit with a $100.0k deductible for all losses except $250.0k at the LNG facility and caverns. The policy includes a $25.0m sublimit for earthquake and flood. Business interruption is not included, but $1 0.0m in extra expense coverage along with other sublimits are included. The program is split equally between AEGIS and Starr Tech.

The District's property values increased $43.3m or 4.7% when compared to 2018. This includes the new corporate office building added at the end of April. As mentioned, the District currently has an open flood claim. A claim adjuster has been assigned and the damages and repairs are still being evaluated.

Aon approached the incumbent markets of AEGIS and Starr Tech. Additional markets approached included AIG, Allianz, HDI, Liberty International, Munich Re, Swiss Re and Zurich. The results of the marketing were as follows: • AEGIS:

o AEGIS provided their renewal quote at expiring terms except for an increase in the flood deductible of 2.5% of the Insured Value of the locations damaged, minimum $250,000 with a rate increase of 19.85%. AEGIS is pushing a 10% rate increase on loss-free accounts. The price with the 19.85% increase is $490,200 inclusive of terrorism on a 100% basis. At a 50% program, this result is a $51,600 increase that is a combination of the 5. 7% increase in values and a 19.85% rate increase.

o AEGIS has agreed to an engineering reimbursement (Loss Control Allowance) of up to 2.5% of the premium applicable to the District's engineering costs, not including jurisdictional inspections required by the state. This would cover the $6.0k net charge that Starr Tech would charge for the 50% non-Starr Tech portion of the insurance placement.

o Upon further negotiations with AEGIS to get some additional relief on the quote, we to remove the % flood deductible to just the flat $250.0k flood deductible, but AEGIS came back with either the 2.5% minimum $250.0k deductible or a flat $500.0k deductible. Further negotiations led to obtaining agreement to combine the two options: 2.5%, minimum $250.0k and maximum $500.0k.

• Starr Tech: o Provided an initial quote with terms and conditions as expiring (except for a few

sublimits that were added - restricting coverage) for a premium of $511 ,008 inclusive of terrorism on a 100% basis. At a 50% program, this result is a $57, 152 increase that is a combination of the 5.7% increase in values and a 21 .88% rate increase. As with all the insurance markets, Starr Tech is seeking rate increases of about 10% on loss free accounts, so with the current claim on the District's current program, the rate increase quoted is in line with the market. Starr Tech also offered engineering services for $12.0k, but since they agreed to cover 50% of the cost the charge will be $6.0k, which will be reimbursed to the District by AEGIS through the Loss Control Allowance.

o Aon was able to negotiate with Starr Tech to revert the sublimits back to expiring for no additional premium. However, they seem to be holding firm on the addition of Riot to the 72-hour occurrence definition.

o Aon asked Starr Tech what the premium savings would be if the Flood deductible was increased to $250,000 to provide an alternative. On a 100% basis the premium savings would be $15.4k or $7.7k for their 50% share which equates to about a 10-year payback and reduces the rate increase to 18.2%. We usually would like to

AON Empower Re1u1ts•

see a 5-year payback with regard to deductible changes, but this is related to one peril not all covered perils. This will have to be District's decision whether the premium savings is worth the additional retention the District have should a flood occur.

• AIG: Indicated interest, but the biggest line AIG could offer was 10% at a minimum 100% premium of $1,000,000.

• Allianz: declined to quote, underwriter tried several different departments but could not find a department where Metropolitan Utilities District fit their appetite.

• HDI: Indicated interest in the program, but did not respond by quote deadline. HDI stated it was still waiting on its modeling which is a way HDI will communicate on a declination.

• Liberty International: Indicated pricing was around $600,000 with a possible line size of 25% ($75m) and the underwriter is awaiting for internal approvals. A formal quote was not further pursed as the indicated premium was not competitive.

• Munich Re: The underwriter obtained approval for a 20% line at a 100% price of $587,000 including terrorism with a restrictive Cyber exclusion and Flood deductible increase to $250,000 and $500,000 for Flood in Flood Zones A&V {<100-year flood zones).

• Swiss Re: Not competitive. Provided an indicated minimum rate of 0.08 per $100 of value or $770,753. Underwriter also had some concerns with regard to the LNG site.

• Zurich: The Underwriter was not successful in obtaining approval to offer terms. There were some engineering concerns with regard to the caverns and other items. We are awaiting the items of concern so that engineering loss control can address if their view is incorrect or if additional information needs to be provided.

As can be seen in the discussion above, although the rate increase for the incumbent markets (AEGIS and Starr Tech) averaged 20.88%, the market is currently obtaining about a 10% rate increase on accounts with no losses. Alternative markets' premium indications were significantly higher than that of the incumbents. It is our recommendation to continue to place the property coverage with AEGIS and Starr Tech.

CONTRACTOR'S EQUIPMENT The District's contractor's equipment policy provides physical damage coverage for owned equipment and short-term leased or borrowed equipment with limits of $500.0k per item and $200.0k per item, respectively, subject to a $40.0k deductible. This coverage applies to the equipment whether at a District site or off-site.

The market for inland marine/contractor's equipment coverages mirrors that of the property markets whereas rate increases are desired by insurers. Values of the contractor's equipment increased 1.6% in 2019. There were no claims in 2018.

Aon worked with the incumbent insurer, CNA, to obtain a competitive quote and was able to negotiate a premium of $32.6k which is a 1.0% net average rate reduction when compared to expiring. This result is well below the rate increases typically being sought in the marketplace. The $840 increased premium is due to the increase in values and rate. The coverage and terms remain as expiring. Aon also reached out to multiple other markets for alternative options on the contractor's equipment program and the results were as follows: • One Beacon: It provided a competitive quote of $32,8k, but required a $50.0k deductible

vs. the $40.0k deductible of CNA. It also offered a few coverages enhancements of adding $100.0k Leased/Rented Equipment to Others, $2.5k per item/$10.0k per occurrence for Employee Tools, and increased time for Newly Acquired Property from 120 days to 356 days. The quote included 15% commission whereas the CNA program

AON Empower Re11.11ts•

is net of commission. Although this provide an additional savings of $4.9k, the higher deductible would generate a higher overall cost to the District. Considering the higher deductible, the long-term relationship the District has developed with CAN, and the historical competitiveness of the CNA program, it is not believed the differences warrant moving coverage to One Beacon.

• Nationwide: Looked at potential to combine with the auto program and it declined. • C&F: Declined as too small and wouldn't be competitive. • Chubb: Declined as wouldn't be competitive. • EMC: Declined due to exposures. • Liberty: Declined as wouldn't be competitive. • QBE: Declined as too small and wouldn't be competitive. • Philadelphia: Declined due to exposures and couldn't write as a monoline program. • Travelers: Indicated rate of $0.16-$0.18 was not competitive. • Zurich: Declined as wouldn't be competitive.

AUTO PHYSICAL DAMAGE The District's auto policy provides comprehensive physical damage for private passenger vehicles and specified perils physical damage coverage, designated perils such as wind, hail, theft and flood, for larger vehicles. The policy does not include physical damage resulting from a collision or overturn or third-party liability coverage. The current policy through Nationwide includes a deductible of $1.0k for private passenger vehicles and a $500 deductible for larger vehicles.

The District's fleet size of 446 units was a slight increase compared to the 2018 reported fleet of 443 units. There was an $8.6k hail claim in 2017 and no claims in 2018.

Aon approached the incumbent, Nationwide, for its best pricing and was able to negotiate a renewal quote of $48.3k. Nationwide also advised its deductibles must increase to $1 .0k for all vehicles. The Nationwide quote included 15% commission, same as expiring. Because of the commissions being credited to the fee, the net result is a premium increase of $3.6k and an average rate increase of 8.9% per unit result. Aon also reached out to markets listed under the contractor's equipment no other market was willing to quote a comprehensive physical damage only auto policy due to coverage terms or pricing.

ENGINEERING AND JURISDICTIONAL BOILER INSPECTIONS The 2018 engineering inspections of the District's assets were provided by Starr and the jurisdictional boiler inspections were provided by ARISE. As indicated in the property section, Aon was able to negotiate the engineering services as part of the premium (through the Loss Control Allowance/Reimbursement) by both Starr Tech and AEGIS, so that there would not be an additional charge (on a net basis) for the services in 2019. The Florence Water Treatment Facility, Platte West and LNG plant will be scheduled for inspection in 2019.

ARISE quoted an annual fee of $6.1 k for the District's jurisdictional boiler inspections which is the same as expiring.


SUMMARY AND RECOMMENDATION Aon believes the results achieved are acceptable under the current market conditions and in consideration of the District's open flood claim. The rate increases received are consistent with what Aon is experiencing in the marketplace. Aon pursued alternate options, but all of the markets approached provided higher premiums or declined to offer an option, which validate the incumbent markets position on the rates. Based on the results, it is recommended that the District bind the property program to be shared equally between AEGIS and Starr Tech. The primary benefit is that the insurers can be leveraged against the other when negotiating policy terms and pricing or a claim settlement to achieve the most beneficial result. The combined program between AEGIS and Starr Tech also is the lowest cost option compared to other markets approached. However, the District will need to decide which flood deductible it would want on the Starr Tech 50% share: $100.0k or $250.0k. The $250.0k deductible would provide some premium savings but the District would have a higher deductible if it incurs a flood loss.

It also is recommended that the District bind the standalone options for the contractor's equipment and auto physical damage coverage as expiring. Finally, it is recommended that the jurisdictional boiler inspections be contracted with ARISE. Starr Tech will provide the engineering services for a $12.0k fee that will be reduced by 50%, Starr Tech's share, which will be reimbursed AEGIS through the Loss Control Allowance to which they agreed providing no additional cost to the District.

We appreciate our continued partnership with the District and look forward to discussing the contents of this report if you should have any questions.

Section 2

MUD 2018 to 2019 Comparison

2018 Renewal 2019 Renewal Difference Net Net Net

Average Net Average Net Average

Program Insurer Value Net Premium Rate Program Insurer Value Premium Rate Value % Premium % Rate ¾

Property-No LNG AEGIS/ $ 830,073,820 s - Property-No LNG AEGIS/ $ 866,247,965 $ - $ 36,174,145 4.4%

Property-LNG & Caverns Starr Tech $ 75,931,226 $ - Property-LNG & Caverns Starr Tech $ 82,530,859 $ - $ 6,599,633 8.7%

Property-New Corp. Office Starr Tech $ - $ - Property-New Corp. Office Starr Tech s 8,500,000 s - s 8,500,000

Equipment Breakdown Included $ - Equipment Breakdown Included $ - Included

EDP s 5,611,955 $ - EDP $ 6,161,801 $ - $ 549,846 9.8%

Total $ 911,617,001 $ 391,852 0.0430 Total $ 963,440,625 $500,604 0.0520 $ 51,823,624 5.7% $108,752 27.8% 0.0090 20.9%

Contractor Equipment C.N.A $ 32,421,008 $ 31,806 0.0981 Contractor Equipment C.N.A $ 32,942,927 s 32,646 0.0991 $ 521,919 1.6% $ 840 2.6% 0.0010 1.0%

Auto-Comp/Spec Only Nationwide 443 $ 37,422 $ 84.47 Auto-Comp/Spec Only Nationwide 446 $ 41,040 $ 92.02 3 0.7% $ 3,618 9.7% $ 7.54 8.9%

Total Net Premium $ 461,080 Total Net Premium $ 574,290 $113,210

Engineering Starr Tech Included Engineering Starr Tech Included

Jurisdictional ARISE $ 6,100 Jurisdictional ARISE $ 6,100

$ 6,100 $ 6,100 $ -

Aon Compensation Fee $ 57,500 Aon Compensation Fee $ 57,500 $ -

Total Costs $ 524,680 Total Costs $637,890 $113,210

Note 1: Premium includes terrorism and does not include surplus lines taxes. Surplus lines taxes on the AEGIS portion of the 2019 property premium 1s $7,353.

Note 2: The new corporate office at 7350 World Communication Drive was added 4/30/19 for $8.Sm. Aon was able to get AEGIS and Starr to agree to waive any additional premium for the 18-19 term. The premium is included in the 19-20

term.

Note 3: Nationwide on the Auto cannot remove all commissions . The 2018 premium was $44,026 w ith 15% commission. The 2019 premium Is $48,282 with 15% commission. Only net premium is shown as all commissions are credited against

the Aon fee

Section 3

Proposal of Coverage

Metropolitan Utilities District 1723 Harney Street

Omaha, NE 68102

Property/Equipment Breakdown Auto Comprehensive and Special Cause of Loss

Contractor's Equipment June 15, 2019 to June 15, 2020

Presented by:

Gary Wagner, AAI, AIC

AON Aon Risk Solutions

17807 Burke Street, Suite 401 Omaha, NE 68118

Phone: (402} 697.1400 (800} 729.1011

Fax: (402} 697.0017 Aon Risk Services Central, Inc.

Aon Risk Insurance Services Central, Inc. CA License #OD04043

Rating Summary

Carrier AM Best Rating Admitted or

Line of Business Non Admitted

AEGIS AXIII Non-Admitted Property, Equipment Breakdown

Starr Tech A++XV Admitted Property, Equipment Breakdown

Nationwide A+ aa- Admitted Auto Comp/SCOL

CNA AXV Admitted Contractor's Equipment

GUIDE TO A.M. BEST'S RATINGS

Financial Strength Ratings A Best's Financial Strength Rating (FSR) is an opinion as to an insurer's financial strength and ability to meet its onQoinA obliQations to policyholders.

Ratina Descriptor Definition A++,A+ Superior Assigned to companies that have, in our opinion, a superior ability to meet their ongoing obligations to

~ policyholders. ::, A,A- Excellent Assigned to companies that have, in our opinion, an excellent ability to meet their ongoing obligations c., to policyholders. Q) u, B++,B+ Good Assigned lo companies that have, in our opinion, a good ability to meet their ongoing obligations to

policyholders. B, B- Fair Assigned to companies that have, in our opinion, a fair ability to meet their ongoing obligations to

policyholders, but are financially vulnerable to adverse changes in underwriting and economic conditions.

C++, C+ Marginal Assigned to companies that have, in our opinion, a marginal ability to meet their ongoing obligations to policyholders, but are financially vulnerable to adverse changes in underwriting and economic conditions.

C, C- Weak Assigned to companies that have, in our opinion, a weak ability to meet their ongoing obligations to Q) policyholders, but are financially vulnerable to adverse changes in underwriting and economic :c conditions. ns

D Poor Assigned to companies that have, in our opinion, a poor ability to meet their ongoing obligations to ... Q) C: policyholders and are financially very vulnerable to adverse changes in underwriting and economic ::, conditions.

> E Under Assigned to companies (and possibly their subsidiaries/affiliates) that have been placed by an Regulatory insurance regulatory authority under a significant fonm of supervision, control or restraint whereby they Supervision are no longer allowed to conduct nonnal ongoing insurance operations. This would include

conservatorship or rehabilitation, but does not include liquidation. It may also be assigned to comoanies is·sued cease and desist orders by regulators outside their home state or country.

F In liquidation Assigned to companies that have been placed under an order of liquidation by a court of law or whose owners have voluntarily agreed to liquidate the company. Note: Companies that voluntarily liquidate or dissolve their charters are oenerallv not insolvent.

s Suspended Assigned to companies that have experienced sudden and significant events affecting their balance sheet strength or operating performance whereby the rating implications cannot be evaluated due to a . . . I k ft de t I i nnaton

Not Rated Categories Assigned to companies reported on by A.M. Best, but not assigned a Best's Rating. The five categories are as follows:

To enhance the usefulness of our ratings, A.M. Best assigns each letter rated (A++ through D) insurance company a Financial Size Category (FSC). The FSC is designed to provide a convenient indicator of the size of a company in terms of its statutory surplus and related accounts.

Class I Less than 1,000,000 Class IX 250,000,000 to 500,000,000

Class II 1,000,000 to 2,000,000 Class X 500,000,000 to 750,000,000

Class Ill 2,000,000 to 5,000,000 Class XI 750,000,000 lo 1,000,000,000

Class IV 5,000,000 to 10,000,000 Class XII 1,000,000,000 to 1,250,000,000

Class V 10,000,000 to 25,000,000 Class XIII 1,250,000,000 to 1,500,000,000

Class VI 25,000,000 to 50,000,000 Class XIV 1,500,000,000 to 2,000,000,000

Class VII 50,000,000 to 100,000,000 Class XV 2,000,000,000 or greater

Class VIII 100,000,000 lo 250,000,000

Named Insured

Entity* Federal Employer Identification # (FEIN)

Metropolitan Utilities District

*The first entity listed should be the First Named Insured to be shown on the dee page of each policy.

Please notify your Aon representative if additional entities need to be added to this schedule.

Property/Equipment Breakdown

All Risks of direct physical loss or damage, including but not limited to Property Damage, Extra Expense and Machinery Breakdown, losses arising from Terrorism, Earth Movement, Named Windstorm, Storm Surge, Flooding and other coverages as more fully described in the policy.

INSURANCE COMPANY:

POLICY NUMBER:

POLICY PERIOD:

LIMITS OF INSURANCE:

COINSURANCE:

DEDUCTIBLES:

FLOOD DEDUCTIBLES:

VALUATION BASIS:

CAUSES OF Loss:

TERRORISM:

AEGIS/STARR TECH

TBD

JUNE 15, 2019 TO JUNE 15, 2020

$300,000,000 Loss Limit

None

$ $

100,000 Property Damage-Per Occurrence, except as scheduled 250,000 LNG Plant & Caverns

$ 100,000 Starr Tech 2.5% of Location(s) Values; $250,000 Minimum/$500,000 Maximum AEGIS

Direct Damage Based on Repair or Replacement

All Risk subject to policy terms, conditions and exclusions

Includes certified and non-certified

MORTGAGEE(S} & Loss PAYEE(s): Per Schedule On File With Carrier

Proprietary Information: Data provided on this page Is proprietary between Aon and Metropolitan Utllltles District. S This Insurance document is furnished to you as a matter of information for your convenience. II only summarizes the listed policy(ies) and Is not Intended to reflect all the terms and conditions or exclusions of such policy(ies). Moreover, the information contained In this document reflects coverage as of the date of this summary as shown below of the policy(ies) and does not Include subsequent changes. This document Is not an Insurance policy and does not amend, alter or extend the coverage afforded by the listed policy(ies). The insurance afforded by the listed policy(ies) Is subject to ail the terms, exclusions and conditions of such policy(ies).

Property/Equipment Breakdown - Continued

NOTABLE SUB LIMITS:

(Please refer to the policy for a complete list of the sub limits):

Coverage Limlt/Subllmit --

Per Occurrence and in the Annual Aggregate

Earthquake $25,000,000 except $5,000,000 in the annual aggregate as respects Miscellaneous Property and Automatic Coverage Per Occurrence and in the Annual Aggregate

Flood $25,000,000 except $5,000,000 in the annual aggregate as respects Miscellaneous Property and Automatic Coveraqe

Accounts Receivable $10,000,000 Per Occurrence

Per Occurrence but not to exceed $10,000,000 per location; contract price not

Automatic Coverage 120 Days to exceed sublimit; includes a $5 million aggregate for Flood and Earthquake which is part of, not in addition to, the overall aqqreqates for Flood and Earthquake

Civil/Military Authority 30 Days Per Occurrence five (5) statute-mile limitation

Claims Preparation Fees $2,000,000 Per Occurrence

Debris Removal (25% or) $10,000,000 Per Occurrence

Decontamination Costs $5,000,000 Per Occurrence

Errors & Omissions $10,000,000 Per Occurrence

Expediting Expense $10,000,000 Per Occurrence

Extra Expense $10,000,000 Per Occurrence Excludes replacement power Per Occurrence but not to exceed

Ingress/Egress 30 Days $5,000,000 limit; five (5) statute-mile limitation

Land and Water Contaminant Cleanup. $2,000,000 Per Occurrence and in the Annual Aggregate

Removal and Disposal

Law and Ordinance $15,000,000 Per Occurrence

Leasehold Interest $5,000,000 Per Occurrence Per Occurrence includes a $5 million

Miscellaneous Property $10,000,000 aggregate for Flood and Earthquake which is part of, not in addition to, the overall aaareqates for Flood and Earthquake

Mobile Equipment $2,000,000 Per Occurrence

Property in Course of Construction $10,000,000 Per Occurrence Protection and Preservation of Property and

$5,000,000 TE Per Occurrence

Service Interruption $10,000,000 Per Occurrence Property Damage and Time Element combined

Transportation $15,000,000 Per Occurrence

Valuable Papers and Records and Fine Arts $5,000,000 Per Occurrence

Proprietary lnfonnatlon: Data provided on this page is proprietary between Aon and Metropolitan Utllltles District 6 This insurance document is furnished to you as a matter or Information for your convenience. It only summarizes the listed policy(ies) and is not intended to reflect all the terms and conditions or exclusions or such policy(ies). Moreover, the information contained in this document reflects coverage as or the date or this summary as shown below or the policy(ies) and does not include subsequent changes. This document is not an Insurance policy and does not amend, alter or extend the coverage afforded by the listed poiicy(ies). The insurance afforded by the listed policy(ies) is subject to all the terms, exclusions and conditions or such policy(les).

Automobile

First-party physical damage insurance coverage for comprehensive and specified perils losses. No coverage for first-party collision losses. No coverage for third-party liability losses caused by injuries to persons and legal liability imposed on the insured for such injuries or for damage to property of others.

INSURANCE COMPANY: NATIONWIDE

POLICY NUMBER: TBD POLICY PERIOD: JUNE 15, 2019 TO JUNE 15, 2020

LIABILITY

No Bodily Injury/Property Damage Combined Single Limit

No Personal Injury Protection

No Medical Payments/Each Person

No Uninsured Motorist/Underinsured Motorist

PHYSICAL DAMAGE

Comprehensive

Specific Causes of Loss

No Collision

SYMBOL DESCRIPTION:

Actual Cash Value

Actual Cash Value

Symbol 1 Any Auto 2 Owned Autos Only

LIMIT

SYMBOL

3

4

3 Owned Private Passenger Autos Only 4 Owned Autos Other Than Private Passenger Autos Only 5 Owned Autos Subject to No Fault 6 Owned Autos Subject to Compulsory Uninsured Motorist Law 7 Specifically Described Autos 8 Hired Autos Only 9 Non-Owned Autos Only 10

SYMBOL

DEDUCTIBLE

$

$

1,000

1,000

Proprietary lnfonnatlon: Data provided on this page is proprietary between Aon and Metropolitan Utilities District. 7 This Insurance document is furnished to you as a matter of Information for your convenience. It only summarizes the listed policy(ies) and Is not Intended to reflect all the terms and conditions or exclusions of such policy(ies). Moreover, the information contained in this document reflects coverage as of the date of this summary as shown below of the pollcy(ies) and does not include subsequent changes. This document Is not an insurance policy and does not amend, alter or extend the coverage afforded by the listed policy(ies). The insurance afforded by the listed policy(ies) is subject to all the terms, exclusions and conditions of such pollcy(les).

Automobile (continued)

OTHER PROVISIONS

Yes Composite Rated - (Annual Audit) Yes Fire, Fire and Theft, Fire, Theft and Windstorm and Limited Specified Causes of Loss Yes Governmental Bodies Amendatory Endorsement Yes Calculation of Premium Yes Exclusion of Terrorism

Classification Private Passenger Light Commercial Medium Commercial Heavy Commercial Extra Heavy Commercial Trailers

Rate Per Unit $ 81 .00 $ 87.00 $138.00 $120.57 $301 .58 $ 32.00

Vehicle Count 56 220 74 70 19 7

Proprietary lnfonnatlon: Data provided on this page is proprietary between Aon and Metropolitan Utilities District 8 This Insurance document Is furnished to you as a matter of Information for your convenience. It only summarizes the listed pollcy(les) and is not intended to reflect all the terms and conditions or exclusions of such policy(ies). Moreover, the Information contained in this document reflects coverage as of the date of this summary as shown below of the policy(ies) and does not include subsequent changes. This document is not an Insurance policy and does not amend, alter or extend the coverage afforded by the listed policy(ies). The Insurance afforded by the listed pollcy(les) is subject to all the terms, exclusions and conditions of such pollcy(ies).

Contractor's Equipment A group of property insurance coverages designed to insure exposures that cannot be conveniently or reasonably confined to a fixed location or insured at a standard rate under a standard form. Coverage includes property owned or temporarily leased or borrowed equipment.

INSURANCE COMPANY:

POLICY NUMBER:

POLICY PERIOD:

Contractors Equipment

CNA

TBD 6-15-2019 TO 6-15-2020

Total Equipment Values Maximum per Occurrence Limit

Covered Property: Per Item Limits Blanket Coverage on Equipment - per item Small Tools - per item Employee Tools- per item Employee Tools - per employee Leased & Rented Equipment to others - per item Leased, Borrowed, Rented Equipment from others - per item

Deductible:

$ 32,942,927 $ 33,457,947

$ 500,000 Not Covered Not Covered Not Covered Not Covered $ 300,000

$ 50,000 Valuation: Replacement Cost - 10 years or newer (ACV older equipment)

Additional Coverages Arson and Crime Reward Data Restoration Expense Debris Removal Additional Amount Fire Dept Charge & Extiguishing Expense Loss Adjustment Expense Maintenance Supplies, Spare Parts, Fuel Recharge of Fire Suppression Equipment

$ $ $ $ $ $ $

5,000 25,000

100,000 25,000 25,000 10,000 25,000

Proprietary lnfonnatlon: Data provided on this page is proprietary between Aon and Metropolitan Utilities District. 9 This insurance document is furnished to you as a matter of Information for your ccnvenience. It only summarizes the listed policy(ies) and is not intended to reflect all the terms and ccnditions or exclusions of such policy(ies). Moreover, the information ccntained in this document reflects ccverage as of the date of this summary as shown below of the policy(ies) and does not include subsequent changes. This document is not an Insurance policy and does not amend, alter or extend the ccverage afforded by the listed policy(les). The Insurance afforded by the listed policy(ies) is subject to all the terms, exclusions and conditions of such policy(ies).

Contractor's Equipment - Continued

Coverage Extensions

Expediting Expense Pollutant Cleanup and Removal Unintentional Errors and Omissions Equipment Loaned To Others Preservation of Property Waterbourne Property in Transit Weight of Load Coverage Waterbourne Property

Newly Acquired Property (Physical Damage)

Rental Reimbursement

Limit per Occurrence Limit per Item Time Limit Deductible

Limit per Occurrence Aggregate Limit Waiting Period

$ 50,000 $ 50,000 $ 25,000

Included Included Included Included

Excluded

$ 500,000 $ 500,000

120 days $ 50,000

$ 50,000 $ 50,000

24 hours

Proprietary Information: Data provided on this page is proprietary between Aon and Metropolitan Utilities District 1 O Thls insurance document is furnished to you as a matter of lnfonnalion for your convenience. It only summarizes the fisted policy(ies) and Is not Intended to reflect all the tenns and conditions or exclusions of such policy(ies). Moreover, the Information contained in this document reflects coverage as or the date of this summary as shown below of the policy(ies) and does not include subsequent changes. This document Is not an Insurance policy and does not amend, alter or extend the coverage afforded by the listed policy(ies). The insurance afforded by the listed pollcy(les) is subject to all the tenns, exclusions and conditions of such policy(les).


May 28, 2019

Subject: FIFTH LEGISLATIVE REPORT - 2019 SESSION

To: Judiciary and Legislative Committee

cc: All Board Members; Doyle, Mendenhall, Stanley, Ausdemore; all Vice Presidents; Nowka

From: Rick Kubat, Government Relations Attorney

Provided below are updates on legislative positions taken by the Board of Directors. The Legislature is expected to adjourn Sine Die on Friday May 31, 2019.

LB 16 (Briese) - Broadens the public records exception to permit the withholding of public records of physical and cyber assets which could pose a threat to critical energy infrastructure. LB 16 partially mirrors definitions provided for under federal law.

Board Position: Support Status: Signed into law by Governor Ricketts

LB 48 (Stinner) - Under current Nebraska law, a property owner can lose a water appropriation if the Department of Natural Resources determines that water has not been put to a beneficial use for more than five consecutive years. LB 48 provides an exception for non-use for up to 30 years if the land is under an acreage reserve program, production quota or participation in a federal, state or natural resources district program. Under current law, sufficient cause for nonuse for similar programs is limited to 15 years.

Board Position: Neutral Status: Signed into law by Governor Ricketts

LB 148 (Groene) - Requires the public hearing on a proposed budget statement be held separately from any regularly scheduled meeting of the governing body. The public hearing on the budget shall not be limited by time, and any member of the public desiring to speak on the proposed budget statement must be given a reasonable amount of time to speak. LB 148 also requires the governing body make a detailed presentation of the proposed budget statement and make at least three copies of the budget statement available to the public. Additionally, LB 148 requires budget notice be published in a newspaper of general circulation within the public body's jurisdiction and, if available, in a digital advertisement on such newspaper's website . The public body would be required to record the methods and dates of such notice in its minutes.

Board Position: Neutral Status: Placed on General File with a committee amendment

E0121328

Placed on File

LB 150 (Brewer) - Permits political subdivisions to charge a fee for the fulfillment of public record requests by non-residents of Nebraska. Unlike the charge for Nebraska residents, the fee for non-residents would include a charge for the existing salary for public employees who do the work to fulfill the request. An exception is provided for news media regardless of their state of domicile.

Board Position: Support Status: Remains in Gov't, Military and Veterans Affairs Committee

LB 204 (Briese) - Requires that bonds issued by any joint entity on or after the effective date would have to be approved by the majority of qualified electors of each public agency which is part of the joint entity. At the Committee hearing, Senator Briese requested that LB 204 be indefinitely postponed. Jim Knight, the City of Hastings and others were prepared to meet with Senator Briese on this matter to discuss LB 204's negative impact on CPEP bonding when the District was informed that the proposal would be pulled .

Board Position: Oppose Status: Remains in Gov't, Military and Veterans Affairs Committee

LB 242 (Lindstrom) - Provides for a turn-back of a portion of the 5.5% of state sales tax dollars collected for sewer and potable water services. The turn-back of revenue is specifically designated and earmarked for potable water and wastewater infrastructure assistance. As amended, LB 242 would turn-back 36% of the 5.5% of state sales tax dollars collected for water and sewer services from July 1, 2019 through June 30, 2021, a turn-back of 56% of the 5.5% of state sales tax dollars collected from July 1, 2021 through June 30, 2023 and a turn-back of 76% of the 5.5% of state sales tax dollars collected after July 1, 2023. LB 242 received support in the form of testimony from the District, Donna Garden on behalf of the City of Lincoln, City Council Woman Amy Melton and Jim Theiler on behalf of the City of Omaha, Rodney Storm for the City of Blair and James Timmerman on behalf of Nebraska Beef and the Coalition of Agricultural Manufacturers. No opposition testimony or opposition letters were submitted to the Revenue Committee. Support letters were provided by the Nebraska League of Municipalities, Omaha-Council Bluffs Metropolitan Area Planning Agency, Omaha and Lincoln Chambers of Commerce and the Cities of Beatrice, Hastings, Plattsmouth, Grand Island, South Sioux City and Waverly.

Board Position: Support Status: Remains in Revenue Committee

LB 289 (Linehan) - LB 289 was introduced as a placeholder bill to allow the Revenue Committee to formulate an omnibus property tax relief proposal. As amended, the bill includes a three-quarter cent increase in state sales tax beginning July 1, 2019. LB 284 makes numerous statutory changes. These changes include, but are not limited to, altering the state aid to schools formula, the elimination of some sales tax exemptions, increasing the cigarette tax and altering the real property valuation methodology. In accordance with previous direction from the Board, the Revenue Committee has been notified of the District's opposition to any proposed increase in state sales tax.

-2-

Board Position: Status:

Oppose any proposal to increase the state sales tax rate Placed on General File with various amendments

LB 302 (Hughes)- Merges the State Energy Office and the Department of Environmental Quality (NDEQ) to create the Department of Environment and Energy. The Director of the Department of Environmental Quality becomes the new Director of Environment and Energy. LB 302 also authorizes the State of Nebraska to assume the 404 permitting process pending agreement between federal agencies and the state of Nebraska.

Board Position: Neutral Status: Signed into law by Governor Ricketts

LB 342 (La Grone) - Changes where candidates for the MUD Board may file for office from the Douglas County Election Commissioner's Office to the Nebraska Secretary of State's Office. The Secretary of State's Office would become responsible for the posting of election results for the MUD Board. LB 342 does not make any changes to the current filing requirements of Board candidates under the Nebraska Accountability and Disclosure Commission.

Board Position: Neutral Status: Amended into LB 411 and Signed into law by Governor Ricketts

LB 368 (Hughes) - Eliminates all "overappropriated" references in state statute. LB 368 declares all basins previously deemed overappropriated as fully appropriated following the effective date of the legislation. It requires surface water controls be included in an integrated management plan and be adopted by the Department of Natural Resources (DNR) to maintain compliance with any compact, decree, formal state contract or agreement. LB 368 would require the DNR to manage reservoirs in fully appropriated river basins. Such reservoirs shall not exceed 80% of capacity prior to March 1 of any year so that said structures would be capable of capturing snow melt and runoff. The DNR would develop a management plan for such structures as part of an integrated management plan.

Board Position: Neutral Status: Remains in Natural Resources Committee

LB 412 (Geist) - Requires a vote of the registered voters of political subdivisions before a joint public agency could be created. The political subdivisions would be prohibited from entering into an agreement until the voters of each political subdivision have approved the creation of the joint agency.

Board Position: Neutral Status: Remains in Gov't, Military and Veterans Affairs Committee

LB 462 (Friesen) - LB 462 was substantively altered via several amendments before consideration by the full legislature. Concerns brought forward by the District, other operators and excavators were removed from the bill. The final version of LB 462 became

-3-

non-controversial amongst parties subject to the One-Call Act. The bill largely codifies current practices and makes some modest changes to One-Call statutory provisions.

Board Position: Oppose Status: Substantively altered via amendments and passed Final Reading

LB 476 (McCollister) - Under current law, MUD is required to pay cities 2% of gross annual revenue derived from retail sales of gas and water. The 2% statutory payment was enacted into law before Compressed Natural Gas (CNG) was contemplated as a vehicular fuel. Current law provides an exemption from the 2% payment for CNG when used as a vehicular fuel. However, the current exemption for CNG is set to expire January 1, 2020, making CNG subject to the additional 2%. LB 476 would eliminate the sunset provision under current law and eliminate the additional 2% fee on CNG. No opposition testimony or opposition letters were provided at the Committee hearing on February 26. Support testimony was offered on behalf of the District and by Curt Simon of Omaha Metro Area Transit. A request has been made for LB 476 to appear on the consent calendar.

Board Position: Support Status: Passed Final Reading

LB 574 (Brewer) - Previous Nebraska law required the MUD Board of Directors to meet monthly on the first Wednesday of every month. LB 574 was amended into LB 411 and the new law allows the Board to designate and alter the specific date of monthly meetings. LB 574 contained the Emergency Clause and became law with the Governor's signature.

Board Position: Support Status: Amended into LB 411 and Signed into law y Governor Ricketts

Approved:

Mark Mendenhall Senior Vice President/General Counsel

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

-4-


May 29, 2019

Subject: INTERLOCAL AGREEMENT WITH THE CITY OF SPRINGFIELD

To: Judiciary and Legislative Committee (Dowd, Cavanaugh and Howard)

Cc: All Board Members, President Doyle, Messrs., Ausdemore, Stanley, Schaffart, Mendenhall and DeBoer

From: Joseph Kehm, Attorney

The District's Marketing Department over the last few years has negotiated water boundary agreements with nearby cities under the lnterlocal Cooperation Act, Neb. Rev. Stat. § 13-8001 et seq. As the name suggests, water boundary agreements demarcate the boundaries of the District's water service area. Cities agree not to extend their water distribution system to serve customers located within that area.

Recently, the District and the City of Springfield reached a water boundary agreement, a copy of which is attached along with a map of the proposed boundary. On May 21, 2019, the Springfield City Council approved Resolution 2019-5 to enter into this agreement with the District.

As with previous water boundary agreements, the principal purpose of this agreement is to facilitate development. Under the District's Water Rules and Regulations, developers pay the upfront cost of a new "pioneer" water main into undeveloped areas but are reimbursed any connection fees paid by new customers that tap into the new main over a 20 year period. The boundary agreement ensures that this policy will continue to provide the intended incentive for prospective developers. Because there is no risk that Springfield will provide water within the District's service area, developers have assurance that their upfront costs to pioneer water mains within the District's service area will be reimbursed if new customers move into the area.

In addition to facilitating development, this agreement will avoid duplication of the costs for planning, designing, and constructing potable water infrastructure into undeveloped areas.

During negotiations, the District and the City of Springfield also worked out details to address the potential for Springfield to become a wholesale water customer of the District should it decide to do so in the future. The agreement addresses that potential as well.

Management is recommending that the Board authorize the President, on behalf of the District, to enter into the proposed lnterlocal water boundary agreement with the City of Springfield .

E0121328

Approved

This matter will appear on the agenda for this Committee's June 5, 2019 meeting as well as the June 5, 2019 Regular Board MeehA§-A eAda for consideration.

APPROVED:

Mark Mendenhall Senior Vice President/General Counsel

~ D President

\ { osep Kehm AttQ.r:_r) y 402-504-7241

INTERLOCAL COOPERATION AGREEMENT PROVIDING FOR THE DEVELOPMENT OF BOUNDARIES

FOR POTABLE WATER SERVICES AND FAClLITlES

This lnterlocal Cooperation Agreement ("Agreement"), effective as of the date of

the last signature below ("Effective Date"), is made and entered into by the City of

Springfield, Nebraska, a City of the Second Class and political subdivision of the State of

Nebraska ("City"), and the Metropolitan Utilities District of Omaha, a municipal corporation

and political subdivision of the State of Nebraska ("District").

RECITALS WHEREAS, pursuant to the lnterlocal Cooperation Act, Neb. Rev. Stat. §§ 13-801

to 13-827 ("Act"), any power or powers, privileges, or authority exercised or capable of

exercise by a political subdivision may be exercised and enjoyed jointly with any other

political subdivision, and any two or more political subdivisions may enter into agreements

with one another for joint or cooperative action; and

WHEREAS, the City currently operates potable water services and facilities

serving customers within, and outside of, its incorporated limits, and the District currently

operates potable water services and facilities serving other customers in the Omaha

Metro area; and

WHEREAS, the purpose of the Act is to permit local governmental units to make

the most efficient use of their powers by enabling them to cooperate with other

governmental units on a basis of mutual advantage and, consistent with this purpose, the

City and the District wish to enter into an interlocal agreement to enable each to provide

potable water to their respective constituencies in a manner that will accord best with the

geographic, economic, population, and other factors influencing the needs and

development of local communities; and

WHEREAS, the City and the District deem it to be to their mutual advantage to cooperate

with each other to provide potable water services and facilities in a manner and pursuant to forms

of governmental organization that will accord best with geographic, economic, and other factors

influencing the needs and development of their respective potable water systems; and

WHEREAS, the City and the District desire to make more efficient use of their

powers to provide potable water services and facilities by cooperating to their mutual

benefit in the elimination of duplication of public costs that result in the dual exercise

of planning, designing, and construction within their overlapping service areas; and

WHEREAS, the City and the District agree that an agreement should be

reached with respect to the present and future development of boundaries depicting

their respective potable water service areas; and

WHEREAS, the City and the District wish to enter into this Agreement whereby

they will define the boundary of their respective potable water service areas.

NOW, for and in consideration of the terms and provisions of this Agreement

and the mutual obligations and undertakings therein, the City and the District agree

as follows:

1. Authority and Purpose.

1.1 This Agreement is to allow the development of boundaries for the potable

water services and facilities for the City and the District so that said boundaries can

be balanced and established for the appropriate planning, design, and construction

of such services and facilities in order to provide for the most economical expenditures

of their respective funds.

1.2 The agreed boundary lines dividing the potable water services and facilities

service areas of the City and the District within the areas of their common service

areas shall be as outlined on the attached map designated as Exhibit A.

1.3 The City recognizes that at some point in the future, the City will likely need

the District as a supplemental wholesale supplier of potable water to the City. In that

event, the City and the District will work out the specifics of the wholesale service

including:

1.3.1 The location of all wholesale water service meters to be specified by the City

but likely in the general vicinity of ½ mile south of Fairview Road at Highway 50 and

also ½ mile south of Fairview Road at 132nd Street in Sarpy County, Nebraska.

1.3.2 An agreement to specify installation costs to be paid by the City as defined in

the District's Billing Price Book, Water Rules and Regulations, and/or by a separate

Main Extension Agreement if needed.

1.3.3 An agreement to specify commodity costs pursuant to the District's Wholesale

Water Service (“WWS”) Rate Schedule in effect at the time the District becomes a

wholesale supplier of potable water to the City. By way of illustration only, a copy of

the District's current WWS schedule is attached as Exhibit B.

1.4 The City and the District recognize that at some point in the future the City's

corporate limits may, due to annexations by the City, extend into the District's potable

water service area as designated in Exhibit A. This Agreement does not in any

manner prohibit or restrict the City's statutory powers of annexation, or prohibit or

restrict the City from extending its corporate limits into the District's potable water

service area as designated in Exhibit A. Notwithstanding the foregoing, however, any

City annexations into the District's potable water service area as designated in Exhibit

A shall not in any manner cause or result in the annexed properties to be excluded

or removed from the District's potable water service area or prohibit or restrict the

District from providing retail water services to the annexed properties.

1.5 The City and the District have the authority to enter into any contracts to

effectuate this authority and responsibility. It is not anticipated that any new real or

personal property shall be needed under the Agreement.

1.6 It is the purpose of this Agreement for the City and the District to make efficient

use of their powers by cooperating with each other on the basis of mutual advantage

and to jointly exercise their authority and responsibilities as provided in this

Agreement.

2. Administration of Agreement.

2.1 The City and the District will each name one individual in their employment to

be that entity's primary representative to administer the Agreement. Each

representative shall communicate with the other as necessary to carry out the terms

of the Agreement. It is anticipated that additional employees of each entity will

participate in the matters related to the Agreement.

2.2 The representatives and other employees of each entity will meet periodically

to discuss the potential wholesale arrangement described in Paragraph 1.3, as well

as other matters related to the Agreement which may result in modifications to the

boundaries shown in Exhibit A. Modifications to the boundaries shown in Exhibit A

can be reasonably made and agreed to in writing when reasonably necessary to

serve the purposes of this Agreement to cooperate, to make efficient use of powers,

to avoid the duplication of public costs that result from the dual exercise of powers in

overlapping service areas, and to provide potable water in a manner that will accord

best with geographic, economic, population, the parties' respective potable water

system's capacities, and other factors influencing the needs and development of local

communities.

2.3 No separate legal or administrative entity is created under this Interlocal

Agreement.

2.4 Despite the establishment of boundaries, each entity may "loop" their potable

water facilities into the other's service areas to minimize "dead end" mains and

improve water quality, fire protection, and supply reliability. However, service taps will

not be allowed on mains outside of established service boundaries.

3. Duration and Financing.

3.1 This Agreement shall commence on the Effective Date and will remain in effect

until terminated by written agreement of both parties. This Agreement can only be

terminated by mutual, written agreement of the City and the District. Furthermore, any

amendment to the terms of this Agreement shall require mutual agreement of the Parties in

writing.

3.2 The City and the District agree that any internal costs or expenses related to the

Agreement shall be paid by the individual entity incurring the same. Any external costs

necessary to the Agreement including, but not limited to, consultants that are jointly

determined and agreed to be needed to carry out the purpose of the Agreement shall be

equally shared and paid for from the respective annual budgets of the City and the District.

Upon the termination of this Agreement, the District's water mains and related

appurtenances, including any potable water facility "looped" into the City's service area

under this Agreement, shall remain the property of the District. Likewise, upon the

termination of this Agreement, the City's water mains and related appurtenances,

including any potable water facility "looped" into the District's service area under this

Agreement, shall remain the property of the City.

4. General Liability Provisions.

4.1 The City and the District agree that each will be responsible for its own acts and

omissions and the results thereof and shall not be responsible for the acts or omissions

of the other and the results thereof. Each party therefore agrees that it will assume all

risk and liability to itself, its agents or employees for any injury to persons or property

resulting in any manner from the conduct of its own operations and the operations of its

agents or employees under this Agreement, and for any loss, cost, or damage caused

thereby during the performance of this Agreement.

4.2 The City agrees to indemnify, defend, and hold harmless the District, its officers,

directors, employees and agents from and against any claims, liabilities, and costs

(including reasonable attorneys' fees) for bodily injury, death, or physical damage to any

third party to the extent caused by the negligent acts or omissions of the City in performing

its work under this Agreement. This indemnity shall survive the termination of this

Agreement.

4.3 The District agrees to indemnify, defend, and hold harmless the City, its officers,

directors, employees and agents from and against any claims, liabilities, and costs

(including reasonable attorneys' fees) for bodily injury, death, or physical damage to any

third party to the extent caused by the negligent acts or omissions of the District in

performing its work under this Agreement. This indemnity shall survive the termination of

this Agreement.

5. Assignment.

This Agreement shall be binding upon and inure to the benefit of the City and the District

and their successors or assigns; provided, this Agreement shall not be assigned or

otherwise transferred to a third party without the prior written consent of the other hereto.

6. Notices. All notices or other communications which are required or permitted herein shall be in

writing and sufficient if delivered personally, sent by facsimile transmission followed by

written confirmation of receipt, sent by overnight commercial air courier (such as Federal

Express), or sent by registered or certified mail, postage prepaid, return receipt

requested, to the other.

7. Governing Law.

This Agreement shall be governed by and interpreted in accordance with the law of the

State of Nebraska, without regard to conflict of law principles.

8. Entire Agreement. This Agreement constitutes the entire Agreement of the City and the District with respect

to the subject matter hereof. All prior agreements, representations, statements, and

negotiations are hereby superseded. This Agreement may be amended only by a writing

executed by both parties.

9. Approval of Agreement and Effective Date.

Each has secured the approval of its respective governing body to enter into this

Agreement. This Agreement shall be executed in duplicate originals. All requirements for

periodic meetings or action shall date from the Effective Date of this Agreement. Each

person signing this Agreement has authority to bind the entity for which he or she signs

to the terms of this Agreement.

10. No Taxing Authority. For purposes of Neb. Rev. Stat. § 13-804(3)(f), no taxes will be levied, collected, or

accounted for under this Agreement. 11. No Jointly Held Property.

For purposes of Neb. Rev. Stat. § 13-804(4)(b), and except has may be provided herein,

no real or personal property will be jointly acquired, held, or disposed of under this

Agreement.

12. Non-Discrimination

For purposes of Neb. Rev. Stat. § 48-1122, City and District shall not discriminate against

any employee or applicant for employment, to be employed in the performance of such

contract, with respect to hire, tenure, terms, conditions, or privileges of employment,

because of race, color, religion, sex, disability, or national origin.

CITY OF SPRINGFIELD, NEBRASKA

by:__________________________________

printed name:_________________________

title:________________________________

_

date:________________________________

METROPOLITAN UTILITIES DISTRICT OF OMAHA

by:___________________________________

printed name:__________________________

title:__________________________________

date:__________________________________

EXHIBIT B

Schedule WWS - Wholesale Water Service Effective January 2, 2018 (Supersedes Schedule WWS effective January 2, 2017)

Availability Subject to approval by the Board of Directors of each contract for deliveries here under, this rate is available for and required of municipal and other governmental entities purchasing water for distribution and/or resale to ultimate consumers for residential, commercial, industrial, irrigation and other purposes. Rate - Monthly Billing

Service Charge Meter Size (inches) Monthly Charge ($) 5/8 13.02 3/4 19.54 1 32.55 1 1/2 65.11 2 104.18 3 208.34 4 240.00 6 475.00 8 700.00 10 940.00 12 1,405.00

Commodity Charge First 5,000 CCF (100 cubic feet) or less $5,709.00 Over 5,000 CCF (per 100 cubic feet) $0.9820

Minimum Monthly Bill The minimum monthly charge shall be $5,709.00 plus the monthly service charge as indicated above. Payment Bills rendered at the above schedules are due and payable within 15 days of date of bill unless otherwise provided for by contract. Contract Customer must execute written agreement with District for a term of not less than five (5) years which is made a part of this rate schedule.

Date: 5-8-2019

Springfield/Papillion Boundary

City ofSpringfield

City ofPapillion

MUD / City of PapillionWater Service TerritoryBoundary

MUD / City of GretnaWater Service Territory

Boundary

Gretna WaterService Territory

Springfield Water Service

Territory

Papillion Water Service Territory

MUD Water Service Territory

MUD Water Service Territory

Possible Future

WholesaleConnection

PossibleFuture

WholesaleConnection

MUD / City of SpringfieldWater Service Territory

Boundary

POSSIBLEFUTURE MUDWATER MAIN

EXISTING MUDWATER MAIN

E 2nd St

Ced

ar C

reek

Rd

Capehart Rd

EPl a

ttev ie w Dr

2nd St

D

oreenS t

S17

6th

St

Cypress Dr

S178t h

S t

Oakmo nt DrS

181s

tSt

114t

h S

t

S 1

80th

Ave

Summit Dr

S 1

32nd

St

S 1

56th

St

S17

3rd

St

Oakmont Dr

S17

9th

St

Oliv

e St

Cedar Creek Rd

Col ony

D r

Meadow Ri dg eD

r

S175th

Cir

S14

7th

St

S

176 t

hS

t

N Depot St

S18

4 th

Av e

Luv Rd

S172n d

Cir

Morgan Ave S hepard St

Sage St

S150thSt

S18

6th

St

Ri v ieraD r

S 1

68th

St

Bl uebird Ct

S

amant ha Rd

S192nd

Plz

S c hofiel d Dr

S1 66 th

S t

Cooper St

Wood l and Dr

C u ste r R d

Crest

Vi ew

Dr

M ercur y S t

S 15

4th

St

Lynam Dr

Cornhusker Rd

C

a nyon Trl

Barr Ln

Mitchell Rd

S17

3rd

Ave

Country Ln

Frontier RdS

18

9 th

St

S14

2nd St

Sh epard St

S14

8 thSt

Huske

r Ln

Prairie Corners Rd

S 1 61s

tSt

Lincoln Rd

S17

3 rd

Cir

S layton St

108t

h S

t

Schirra St

S175th

C ir

Summit Dr

S 1

73rd

St

2nd St

Old Post Rd

Ashland Rd

Glenn St

Sag eStS

194t

hS

t

Sapp Broth

ers Dr

Lynn C rest Ln

Hus

ke

r Ln

S 1 42

n

dSt

S19

2nd

St

Cornish Plz

Sack Rd

Fronti

er Rd

Ram b lewo od Dr

S152n d

St

S1

50 thA

ve

Chey

enneR

d

Wic

kers

ham

Blv

d

Whitney Rd

Riha Rd

S 1

88th

St

S 1

56th

St

S 1

80th

St

S 1

92nd

St

S 1

80th

St

S 1

68th

St

Crest R d

Cornhusker Rd

Buffalo RdS

108

th S

t

S11

1th

St

S 1

92nd

St

S 1

50th

St

Schram Rd

Cornish Rd

S 1

56th

St

Ruff Rd

S 1

68th

St

S 1

80th

St

S 1

92nd

St

Buffalo Rd

S 16

8th

St

S 18

0th

St

Platteview Rd

Fairview Rd

S 18

0th

St

Pflug Rd

¬«50

¬«66

¬«370

¬«31

¬«50

¬«370 ¬«370¬«370 ¬«370¬«370

§̈¦80

²

Document Path: \\mud.com\Departments\Engineering\Private\Engineering design\Water Design\Communities\City of Springfield Water\Springfield Water Boundary Map 5-8-19.mxd

0 4,000 8,0002,000Feet

EXHIBIT AWater Service Territory Map


May 24, 2019

Subject: Wage and/or Salary Increases and Ratifications, June 2019 Board Meeting

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

President Doyle, and Senior Vice Presidents Ausdemore, DeBoer, Mendenhall, Schaffart and Stanley

From: Bonnie Savine, Vice President, Human Resources

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

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

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

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



Dale Bumgardner Crew Leader (Construction) Group Leader (Construction) $40. 72; Step 4 $42.76; Step 4 5.01% October 11 , 1993

Darrell Klusaw Customer Service Technician (Field Service Operations) Senior Customer Service Technician (Field Service Operations) $39.06; Step 4 $42.18; Step 4 7.99% June 2, 2008

Denise McCracken Administrative Clerk Ill (Field Service Administration) Administrative Clerk V (Field Service Administration) $27.53; Step 4 $29.64; Step 1 7.66% February 7, 2011

E0121328

Approved

Wage and/or Salary Increases and Ratifications Page 2





Trisha Miller Administrative Clerk II (Field Service Administration) Administrative Clerk Ill (Field Service Administration) $26.22; Step 4 $27 .53; Step 4 5.00% February 18, 2014

Robert Nielsen Crew Leader (Construction) Group Leader (Construction) $40. 72; Step 4 $42. 76; Step 4 5.01% April 17, 2000

Todd Pignotti Mechanic (Transportation) Senior Mechanic (Transportation) $36.20; Step 4 $39.82; Step 4 10.00% September 23, 2013

Cherie Shryock Human Resources Assistant (Human Resources) Stores Clerk I (Stores) $29.62; Step 4 $30.64; Step 4 3.44% November 7, 2011

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

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

There are no recommendations for approval this month.

Wage and/or Salary Increases and Ratifications Page 3

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

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



Joseph Flegg Pipe Layer Trainee (Construction) Pipe Layer (Construction) $27.28; Step 4 $29.32; Step 2 7.48% May 8, 2017

Nathaniel Million Pipe Layer Trainee (Construction) Pipe Layer (Construction) $27.28; Step 4 $29.32; Step 2 7.48% July 11, 2016

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

The following SPA employees are selected for promotion. It is recommended the President be authorized to increase the salary of these employees. 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.



Shalon Buffum SAP CRB Business Analyst (Customer Services) Director, Customer Service (Customer Services) $92,247; SPA-04 $103,237; SPA-08 11 .91% September 17, 2007

Robert Taylor Design Engineer (Engineering Design) Senior Design Engineer (Engineering Design) $100,457; SPA-05 $105,480; SPA-07 5.00% May19,2014

Wage and/or Sa lary Increases and Ratifications Page 4

5. Supervisory, Professional and Administrative (SPA) Temporary Salary Increase

Matthew Radik, Building Operator, has begun a temporary assignment approved by Mr. Doyle to assist the Facilities Management Division by providing facilities supervision for the Construction Center and Operations Center, in addition to his regular duties at the Downtown Facility. In consideration of the temporary assignment, management is requesting a temporary 5% salary increase.

Employee: Current rate; step/grade: Proposed rate; step/grade: Percent of increase: District hire date:

Matthew Radik $81,733; SPA-02 (TX) $85,820; SPA-02 (TX) 5.00% January 21, 1980

Supervisory, Professional and Administrative (SPA) New Hire Ratification

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

There are no recommendations for approval this month.

Bonnie Savine Vice President, Human Resources

APPROVED:

Mark A. Mendenhall Sr. Vice President, General Counsel


May 27, 2019

Subject: Promotion of Vice President, Safety, Security and Business Continuity

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

President Doyle and Senior Vice Presidents Ausdemore, DeBoer, Mendenhall, Schaffart and Stanley


The District is recommending the Board of Directors approve the promotion of Michael (Shane) Hunter from Manager, Safety, to Vice President, Safety, Security and Business Continuity, Safety and Security Division .

Mr. Hunter received both his Bachelor's and Master's Degrees from Bellevue University, Bellevue, Nebraska. Mr. Hunter was hired by the District on May 1, 2017, as the Manager, Safety.

Based on his education, credentials and work experience prior to and while employed by the District, Mr. Hunter is being recommended for the position of Vice President, Safety, Security and Business Continuity, Safety and Security Division . Mr. Hunter's promotion would be from Grade SPA - 6 to a Grade SPA -11 on the Supervisory, Professional and Administrative Scale.

In view of the additional responsibilities of this position as the Vice President, Safety, Security and Business Continuity, Safety and Security Division ; it is recommended the President be authorized to increase the salary of Mr. Hunter to $128,046 per year effective June 16, 2019. This recommendation follows Personnel Policy Manual language that the employee shall not be paid less than the Minimum of the new salary grade.


APPROVED:


E0121328

Approved


May 27, 2019

Subject: Salary Increase Recommendation for Senior Vice President, Chief Operations Officer & Senior Vice President, Chief Financial Officer

To: Personnel Committee members Begley, Friend, and Frost cc: Board Members Cavanaugh, Dowd, Howard, and McGowan; President Doyle and Senior Vice Presidents Ausdemore, DeBoer, Mendenhall, Schaffart and Stanley


It is recommended that the Board of Directors approve the salary increase recommendations for David DeBoer, Senior Vice President, Chief Operations Officer and Joseph Schaffart, Senior Vice President, Chief Financial Officer.

In accordance with the Personal Policy Manual section 5-9 employees shall be rewarded in proportion to their contribution to the District. Promotional salary adjustments shall be granted upon the assumption of positions involving greater duties and responsibilities. A promotional adjustment shall be based on a change in duties which places a person in a position that is in a higher salary grade. Guidelines for promotional salary adjustments are as follows:

1. Raise the employee's salary five percent (5%) .

2. The employee's new salary shall not exceed the Maximum Rate of the new salary grade.

3. The employee shall not be paid less than the Minimum of the new salary grade

The recommendation for Joseph Schaffart is a 5% increase. His current salary is $165,653.00. The recommended new salary with promotional increase is $173,936.00. This recommendation follows policy language of a 5% raise in salary.

The recommendation for David DeBoer is an 11 .05% increase. His current salary is $151 ,183.00. The recommended new salary with promotional increase is $167,883.00. This recommendation follows policy language that the employee shall not be paid less than the Minimum of the new salary grade.


APPROVED:


E0121328

Approved

METROPOLITAN UTILITIES DISTRICT Committee Meetings · 2019-06-05 · Voting Yes: Dowd, Frost,...

Documents

Transcript of METROPOLITAN UTILITIES DISTRICT Committee Meetings · 2019-06-05 · Voting Yes: Dowd, Frost,...