We have taken the issues, questions and concerns related to our fiber optic program very seriously - as we have said on numerous occasions we would. We are addressing those issues in a decisive manner.

Over the past several months, we have responded to numerous information requests, provided opportunities for and listened to public comment and made all our reports - whether draft or final - available for public inspection and discussion. We have consistently said that we would wait until we saw the State Auditor's report before responding to those problems. Today, now that we have received a draft report from the Auditor's office, Commissioners will take the following actions.

1. Direct Grand PUD's attorney to attempt to recover any inappropriate payments made to Benton REA according to the motion we have already passed, while recognizing that may be very difficult.

2. Immediately change the leadership of the fiber division - specifically the director and business manager - and direct the new leaders to focus on improving the Grant PUD's relationships with companies which utilize the fiber system to serve Grant County citizens. In addition, we will require weekly reports and updates be provided along with monthly financials - directly to Commissioners.

3. Reprimand the Manager. While we respect and commend the Manager for his leadership and talent in other aspects of District management, we will reprimand him for failure to apply the same leadership skills in developing a good working environment in the fiber area.

4. Instruct staff to not enter into any contracts similar to the ones executed with Benton REA, GVNW and PowerTelNet, in the future.

5. After we have more consultation with legal counsel, additional actions will be forthcoming.

Earlier this year, Grant PUD responded to anonymous allegations made about our fiber program. Grand PUD Commissioners hired Seattle-based attorney James Austini to conduct an independent investigation. His report was sent to the Washington State Auditor's Office and that office has conducted an investigation as part of the utility's annual audit. Both reports have been made available for public review.

The District has until December 3rd to formally respond to the State auditor's draft findings. Even though we are taking this action today, we will work with staff this week to finalize our formal reply to the State Auditor's report.

We are guided in our actions by two key findings by both independent audits. First, that no one personally benefitted from what has been done to advance our fiber program. Second, that the actions of our Grant PUD staff - and our actions as well - were intended to provide benefit for the people of Grant County through the development of a successful fiber system.

Finally, we fully support all our talented employees including those under the new fiber leadership. We regret the controversy and ill-will which has been generated during the process of the past year, but trust that with the help of our outstanding PUD employees and ratepayer owners we can repair any strains of public confidence in the PUD this may have acused.

Signatures of Vera Claussen, Thomas Flint and Mike Conley at the bottom of the document