MANAGER'S REPORT
07/10/19
County Auditor
We have received a notice from the County Auditor that they will no longer stuff and mail our warrants (checks) to vendors, effective 8/01/19. This is a very time consuming task.
This is a bit of a headache. One begins to wonder what the district is paying the County to do. At the least we will need to extend Charli’s hours one day a month to get this done. A problem that arises is that the County will inform us when the warrants (checks) are ready to pick up. So no set day on which the district and Charli can plan.
RCW 57.20.028 allows Special Purpose Districts with more than $250,000 in revenues to enter into an agreement with the County Treasurer for the district to generate their own warrants. There is a copy of the RCW in your packets.
Printing the warrants is not a major undertaking. In fact, we currently direct our software NOT to print the warrants in the process of printing the Claims Payment Request. If we printed our warrants we could do so on the day after the commissioners meeting. Charli’s hours could be extended on that day in order to prepare the warrants for mailing, and they could be in the mail either that afternoon or the following morning instead of a week later. That would solve a lot of current problems for the district.
There is an argument in favor of the district handling its own payroll. And I see that coming from the direction the County is moving. We already administer employee benefits. But we are not there yet in terms of handling all payroll tasks. Besides, it makes no sense to transfer that responsibility in mid-year. Assuming that responsibility will almost certainly require additional staff. All reasons for us to drag our feet on that issue. I think we need to be prepared, if we approach the County on vendor warrants, for them to insist we take on the rest of payroll too.
I am proposing that the district approach the County Treasurer with the proposal that the district assume the responsibility for issuing vendor warrants.
Budget Position Report
The reconciled position shows $69,041.75 in revenues for June, and $68,202.02 in expenditures. Contribution to reserves was $839.73. It would have looked better, but the County decided to transfer the USDA payment from the General Maintenance Fund to the Debt Service Fund (yes, I know it is misspelled. Bias doesn’t let you edit BARS accounts once transaction have been posted) in June.
We are slightly behind in projected income for the year, but Summer has not hit yet.
The Claims Payment Request is a big one because of two items totaling $54,698, the invoice for the VFD replacement and the new truck. The figure for the truck in the request includes tax.
Treasurer’s Report:
Everything generally looks good. The Revenue Bond Reserve looks a bit strange, but that is due to the County’s delaying the transfer from the 401 to the 402 Funds.
The money with which we have to operate and maintain the water system is in the Regular Maintenance Fund (401) and the General Facilities Fund (410), which total $624,376.53.
It may be noted that the County, again, has transferred funds to the investment pool without us having to request it. See the copy of the Monthly Report from the County.
2020 Budget
I keep getting body slammed on the 2020 budget. With the new truck, the imponderables on the Highway 12 project, and lack of clarity on where the County is headed on providing services, my crystal ball is very clouded.
I have done my best with the projection. The “Remaining” numbers do not include any projects. How we balance between projects and reserves (and where to peg rates) will be the major topics of conversation.
My sense is that we have raised the usage rate just about as high as is necessary. Any rate increase would apply strictly to the base rate.
We don’t need final numbers just yet, but we need to be seriously discussing our plans for 2020.
Monthly Utility Totals
See the Monthly Utility Totals report. There are two, one for the June 1st billing and one for the July 1st billing. On June 1st we billed Section 2 $69,019.54. Total Accounts Receivable for Section 2 on that date were $84,603.07. Of the money owed, we collected $62,941.09. That is actually pretty good and better than some months in the past, considering that we have $15,586.04 tied up in accounts past due more than three billing cycles.
The July billing totaled $94,477.35 with $7,727.35 credit balances. So total receivables as of July 1st (actually July 2nd. We were late in getting bills out) are $131,783.03.
The $21,974.99 listed as 30 days past is actually out two billing cycles and would be subject to shut off under the new collections process (see below).
Collections
In accordance with the board’s direction, we have scheduled the implementation of the tighter collection processes.
One billing cycle past due: Late Fee
Two cycles past due (at the due date): Shut off
Three cycles past due: Lien
Six cycles past due: Foreclosure
I have set the implementation date at the first of September in order to give time to inform the community. A stuffer has been ordered for the Section 1 billing on July 1st and Section 2 billing August 1st. I have posted an announcement on Facebook (and will do so again in July, August and September) and have posted the change to the web site.
One glitch that I have encountered, thanks to Washington State’s tenants’ rights regulations, is that we can not refuse service to a new tenant because of unpaid bills by a past tenant. Other aspects of the tenants’ rights rules are that the district must provide seven days notice before termination (we do) and that, in order to preserve lien rights, the district must notify the property owner of the tenant’s delinquency “in the same manor or fashion” as that provided the tenant. We send duplicate bills to landlords when a tenant is past due.
Operational Issues
None
Highway 12 Cast Iron Pipe Replacement
The application has been sent to WSDOT.
With the recent NWS, Inc. invoice, we have expended $17,121.55 on this project towards our budget of $100,000. I have included a copy of tracking spreadsheet in your packets.
We are still not ready to go to bid. This project will almost definitely exceed it’s budget.
Reynvaan Reservoir
I have communicated with Rognlins. No response yet.
Consumer Confidence Report/Newsletter
Has been delivered.
Maintenance Activity:
Usual daily/weekly/monthly maintenance activity. See attached report.
Contractor Repairs
None
As-Builts
I have learned that NWS, Inc. has a GIS capability. Neither of the other firms interested have the in-house capability, though all can work with the County. This capability allows the tracking of a great deal more information and makes it more readily available to the district, as well as the county.
I will devote more time to this project once the Highway 12 project is about wrapped up.
Well Site Fence
I have an estimate to repair the well site fence. $2,801.60. I intend to go forward on this as it is a security concern.
Highway 12 Meters
Installation is complete. We believe that the programming is all done. So the first billing using the drive-by equipment will happen for the August billing. I expect bugs. I had hoped to implement for the July billing, but there were just too many other things going on.
New Connections
6602 Olympic Highway. This connection will require all the usual adventures associated with working with WSDOT. The meter deposit for a highway installation is $8,700, as compared to the typical deposit of $1,500. The property owner is also liable for the $3,800 General Facilities Charge. So a highway connection is very expensive. This is an existing residence that has been on a well. The property has been sold and it is my understanding that financing depends on connection to the district.
The application to WSDOT has been submitted.
Shop Organization
We keep looking for a window to get this job done. I am going to have to personally supervise this job if there is any hope of it getting completed.
Training/Certifications.
My AC pipe class was a bit different from the one Kenny took. The class I attended focused much more sharply on the issues of dealing with AC pipe in particular, and not so much on asbestos in general.
There is little (but some) that we have to do in the process of doing hot taps. In situations in which AC pipe must be cut, we will use a contractor.
Safety
We have a mini safety meeting every morning.
Vehicles
Service Truck: No issues
F-150: Replaced
S-10: Replaced
Pickup Truck: No Issues
Pickup Truck 2:
A new truck has been acquired. It is a 2019 1/2-ton Silverado with the extended cab and short bed. It is the base trim with no added options. Though “base trim” is not what it used to be. The final price was $27,274.00. Fleet pricing really saves a bunch. MSRP is $35,995 with the average selling price about $31,000, according to TruCar.
I am working on getting it outfitted. A bit of a challenge as busy as I am right now.
I will have the truck at the meeting for your inspection.
Shop Site South Fence
I have a quote. It is more expensive than anticipated. I will want to wait until later in the year before I jump on this one. $7,077.44.
Alder Glen & Etc.
No news in February. Work orders are still out for the dead end lines that have not been examined.
Carl Way/Ridgeview: Not an issue
Hemlock Park
Lois Lane Not an issue
Waverly Court Not an issue
Garden Road: Not an issue
Walthom Lane: Not an issue
Greenbriar Court
Reynvaan Court
Madow Court
Reed Lane Not an issue
Blaine Road (End) Not an issue
Larson Lane Not an issue
Fremont Drive
Silkey Court
Lake Road
Hemlock Park
Fairway Park
River Road: Replaced
Alder Glen: Will need replacement.
Fairway Terrace: Will need replacement.
Filing System
On going.
Armory
We just need to get the docs signed and notarized. The word is that the documents are circulating somewhere in the military administration.
There has been some back-and-forth between Scott and their attorney regarding easement and the bill of sale.
Still waiting for documents.
LeMay Project
LeMay is having a ribbon cutting, complete with barbeque, on July 26th at noon.
Fire Station
No news in June.
Reynvaan Lower Pump House
This building continues to deteriorate. I need to start the process of planning a replacement.
Basic Specifications:
Large enough to include pump controls (8 X 10)
Conform to the WAC 246-290 pump house requirements
Concrete Floor
Floor Drain
Insulation
Moisture Resistant Paneling
Generator Transfer Switch
Thermostatically Controlled Heater
Roof Hatch
I am thinking that one of the ready-built sheds would serve with some minor modification.
This really needs to get done, but I have more pressing matters on my plate at the moment.
Grant Funding Pursuit
I will be calling this “Small Districts Committee” from now on. The driving force is developing funding sources for major infrastructure replacement for small water districts, but the vehicle will be the WASWD Small District’s Committee. Which needs to be re-constituted. There was one, but it killed itself by getting involved in a highly technical, and boring, web site project.
The support of WASWD has been very encouraging. I basically had the floor all to myself at the Managers’ Meeting in Edmonds (which I reported on last month) and was very well received. Jeff Clarke, a past president of WASWD and a very heavy hitter in the association, was particularly supportive.
I had a lengthy meeting, here in our office, and system tour, with the executive director of WASWD, Judi Gladstone, that went very well. Judi is very supportive of this effort. As is typical of those living within the urban core, she had no feel for the challenges faced by utilities located outside the I-5 corridor. David Carnahan and Joe Sartori of the Hartstene Pointe Water & Sewer District were also present at the meeting.
The next step was the Section II meeting on June 27th. I did not have the floor at that meeting, but the restart of the Small Districts Committee was brought up by Judi. The Section II Director, Jeannie Screws, jumped on the subject and was very encouraging. Restarting the committee requires WASWD board approval. With Jeannie’s backing, and that of Jeff Clarke, that will be forthcoming.
I am receiving a good deal of support from David Carnahan, the general manager of the Hartstene Pointe Water & Sewer District. I can count on David to take on some of the work load. Jerry Arnold, of Grays Harbor County District #1 has also expressed interest.
The next effort will be to draw small district’s together. To that end an email will be drafted talking about the efforts to find funding, and restarting the Small Districts Committee, and sent out individually to districts that may be interested. There will be a small districts break out at the Fall WASWD conference. That will be a very important event. If there is little interest, I will be forced to either work harder to raise the interest level, or abandon the effort.
There is a lot going on around this initiative, and it will be a long haul, but I am encouraged to believe that it will result in realistic funding for this district’s eventual water main replacement, as well as that of other small districts. I don’t anticipate that water main replacement will be required during my tenure here, but I do not like the idea of walking out the door (not any time soon) without a plan in place.
Capital Asset Management
This subject has been a hot button with the Office of Drinking Water for some time. Which is partial explanation for my concern regarding our water mains. In practice, we need to address asset management, and we need to demonstrate good faith efforts to the regulatory agencies.
Asset management has now become a subject of concern for the State Auditor’s Office (SAO). The SAO has always examined efforts to protect assets, but they are beginning the process to examine how effectively assets are managed. The SAO has issued new guidelines on the management and enforcement of existing regulations regarding asset management and appears to be working on some new regulations.
While we kind of have an asset management plan, it doesn’t really meet existing regulations and guidelines. We currently “manage” our assets through the FIIX program. But we have not really entered all the required data into that program and the integration into the budgeting process is more than slightly casual. We have no plan in place to pay for extensive asset replacement.
There are a lot details that need to be nailed down, recorded, and managed.
We can be reasonably confident that asset management will be a much larger issue in upcoming audits than it has in the past.
Now that we have taken over ownership of the Clemons Booster Station, I am going to set up a process to transfer some portion of the revenue from the LeMay and Armory connections into the Capital Replacement Fund. That fund is in existence but currently has a zero balance.
Just another initiative to keep me from getting bored.
Disaster Management Planning
I have made initial contact and am waiting for detailed information. This is becoming a hot topic. The wild fires in California last year underscored how unprepared most water utilities are for major disasters.
This was discussed at the Section II meeting, and I pointed out that many small districts do not have the resources to do the planning, let alone the preparation. I got several “amens” on that point from around the table.
Isolation Valve Exercise Program
This is another Sanitary Survey item. It has been on my to-do list since 2012.
See discussion on as-builts.
Future and/or On-Hold Programs
Email Bills
Online Bill Pay
Installation of additional isolation valves
Unfunded "Dream" Projects
Include Reynvaan Pump Station in SCADA
Probably will require new controls, which are getting due anyway
Include Hirschbeck Pump Station in SCADA
Convert SCADA Communications to Cellular, or whatever.
Long Distance Service Laterals
Any thoughts would be welcome.
Respectfully Submitted:
Reg Hearn
General Manager