MANAGER'S REPORT
08/12/2020
Budget Position Report
A copy of the formal, official Reconciled Budget Position Report is in your packets.
I have broken down the operational budget position in order to be easier to review. It is the document simply labeled “July”.
Revenues for July were $62,369. Operational expenses were $46,667. So we spent $15,702 less than we took in.
The monthly projected operational income is $67,277. So our July income (which is actually June receipts) is low. But our Monthly average so far is $79,073. Our monthly operational expenses budget is $60,406. So we spent $13,739 below the budget.
For the year our average monthly operational expenses are $56,088. So far this year we are operating at approximately $4,300/month below budget. Which is good given the over $300,000 hit our reserves have taken this year.
I am striving to keep operational expenses down, but there is little fat in the budget and few expenses that can be trimmed without affecting our operational abilities.
We transferred:
$4,771 to Capital Replacement Reserve
$4,200 to USDA Payment Reserve
$8,000 to Major Repair Reserve
Fund balances are listed in the Treasurer’s Report paragraph below.
Treasurer’s Report:
Last month this report was off by $10.00, showing we had $10.00 more in the checking accounts than in the funds. I have been unable to find the problem. Though this month it is closer by $1.00, being off $9.00 instead of $10.00. I am still looking for it.
Fund Balances To Date:
Regular Maintenance $ 72,061
Capital Replacement $ 33,396
Major Repair Reserve $233,158
General Facilities $103,023
Total Funds Available $441,639
So we have an improvement in our fund balances, over last month, of $13,065.
Yes, I know it seems it should improve by the $15,702. The difference is the result of the timing of when income and expenses are recorded.
Billing/Collections
In July we billed $76,433 and collected $75,243 plus $3,800 in General Facilities charges.
Billing for August, Section 2 was $67,270. For some reason some late charges are slipping through. We are crediting those as we find them.
Monitoring Violation
We have incurred a monitoring violation.
This is actually fairly minor (except to my ego) as a change was made in our coliform monitoring requirements based on an increase in our official served population. The notice of which I missed.
In the past we have been required to take four coliform samples per month. Certified operators are required to evaluate the characteristics of the system(s) under management and determine if the minimum is sufficient to characterize the system. When I first got involved I determined that we needed to take five samples a month to meet that criteria. Which is what we have done since 2009.
Because of the increased population, which is primarily due to the number of new homes that have been constructed, the minimum requirement was bumped up to six samples per month. In reviewing the Water Quality Monitoring Schedule (issued by DOH annually) I concentrated on the chemical monitoring (because that is what usually varies) to ensure it was up to date, and did not notice the increase in coliform sampling. After all, it hasn’t changed in over ten years.
So we only took five samples in July instead of six. Does this endanger anyone’s health or safety?
No.
I have been examining the Coliform Monitoring Plan, along with changes that have occurred in the water system, and have determined we need to take seven samples per month in order to meet the “characterization” criteria. In addition to taking two more samples, we need sampling stations on Hirschbeck Heights and downstream from the Clemons Booster Station.
I have not completed work on Coliform Monitoring Plan modifications, nor have we installed the additional sampling stations. So we simply added the Clemons Booster Station to our sampling for August. That will keep us in compliance.
By the way, that pressure zone was never previously sampled because there were no services on it. Now there is the new LeMay transfer station and the Montesano Readiness Center (Armory).
We are required to report this violation to the public in next year’s Consumer Confidence Report.
Water Rights
Refer to the Production Summary. As of July 31st we have used 42% of our water rights, putting us on track to use 72% of our rights by the end of the year. That is a significant increase over previous years.
Some of the increase can be attributed to the water main leak west of Aberdeen Lake Road and how long it took to get all the permits in place to replace that length of water main. There is a big drop in our running average following replacement of the cast iron pipe, but still running about 62,000 ft3 per day more than last year.
In the past couple of years we have added quite a few service connections, and existing connections are averaging higher usage than in previous years.
There are quite a few lots that are vacant or are ripe for redevelopment within the community, as well as two developments (Big Ridge Lodge and The Farm) that have yet to be finalized. We are committed to serving both those developments.
My sources tell me that there are indications that an exodus from the I-5 urban corridor has begun. We can expect some of those folks to relocate in our area.
I have started the process for increasing our water rights.
Payroll Report
See attached report. There is a lot of overtime. There is simply too much to do.
Pandemic
The office is still closed. Phase 3 allows government offices to open subject to restrictions.
There is no practical way to meet the requirements for Phase 3 in order to open the office to the public.
Isolation Valves
We have made great progress in finding valves. In August we are planning to excavate, raise, and re-pave four buried valves.
A copy of the cost tracking sheet for this project, so far, is attached.
Well #5 Source Meter
Quote: $6,631.25 + tax Still sitting on it.
Hydrant Maintenance
Flushing is getting done. But we are behind in flow tests and painting. See “Maintenance Activity” below.
Rate Study
No change since last month.
New Regulations
None
Recurring SCADA Power/Communications Problems
The lines to North Bank have been run. The pump house lines are scheduled for July11th. The holdup is the pole permits from PUD.
I have contacted PUD about the permits. They have promised to see if they can speed the process along.
So far, the process is still slow. Part of the over time noted above is operating the system manually during damp weather.
Personnel
After consideration I am advising we continue with the usual process for work gear.
Maintenance Activity:
Usual daily/weekly/monthly maintenance activity. See attached report.
We are not keeping up. It is not for a lack of trying. Everyone is working smart, hard, and long. The maintenance tasks just keep piling up.
One challenge that does not always appear in the work order reports is the deterioration of service connection ball valves. Crews often find that these valves either don’t work, or leak. So a work order may only look like a simple shut off, but the crew ended up having to replace the shut off valve.
I don’t have a ready answer except to keep an eye on priorities to make sure the most important tasks are getting done.
There will be some deferred maintenance as a result. We can’t afford additional staff.
Contractor Repairs/Assistance
Pavement Repairs
Service Lateral on CPD
Newsletter
We have received eight survey responses. All object to spending money on additional services. Some are quite adamant about it. I will have the surveys at the meeting.
Tank Cleaning
This is on hold until the “Stay-at-Home” order is lifted.
As-Builts
On hold, except that the valve locating project will improve the information we have.
Shop Organization
The process of inventory has begun. And ground to a halt. This keeps falling victim to higher priority projects.
Training/Certifications
Mick is scheduled to take the WDM2 exam.
More and more of the training organizations are moving to online classes. The indications are that they will continue that trend beyond the pandemic. I think it is a good idea to set up a training area with a computer and monitor in order to participate in those classes. Just not sure where.
We already have the internet/cable connection.
No action yet. But I have to do something soon so that we can all keep up with our CEU’s.
New Pump
The new pump is saving us about 18% on electricity. At least by the kilowatt hours used. I don’t see a corresponding decrease in our power bill, probably due to rate increases by PUD? Indications will be clearer as time passes.
Safety
We have a mini safety meeting every morning. We have gone a long time without an L&I claim. We are all striving to keep that trend going.
Vehicles
Service Truck: The driver’s seat is beginning to wear out. We will need to have this seat re-covered. No action yet.
Pickup Truck 1: No Issues
Pickup Truck 2: No issues
Backhoe: No issues.
Web Site
Nothing new
New Connections
6824 Grange Road
6610 Grange Road
Filing System
Off and running. This project is contributing to increased office supply expenses.
Fire Station
Our involvement, other than finishing our access road through the fire station property, is over.
I expect repair of our access road will be on the fire district’s dime.
We volunteered the well site as a dump site for clean fill. The advantage for the district is raising low ground within the well site. The dirt work contractor assured us they would level the site near the end of the project. I sure hope so, as it is a bit of a mess right now.
Grant Funding Pursuit
The “Stay-at-Home” order has pretty much shut this effort down for the time being.
Capital Asset Management
The monthly contribution has decreased due to the installation of the new well pump. We were planning on replacing the Well #5 pump in a couple of years. Because the pump was replaced this year we plan to next replace it in 2060. Thereby reducing the contribution we need to make to this fund.
Disaster Management Planning
This project is started. It is a major project with a steep learning curve.
The first step is the Risk and Resiliency Assessment. The new regulations require that we not only plan for the “usual” emergency situations, but also plan for the more unusual, such as major regional emergencies.
An important item that has surfaced so far is the District’s responsibilities to other critical facilities. There are three facilities that we serve that are considered “critical” by the Federal Emergency Management Administration (FEMA). The fire district (both the fire station itself and fire fighting capabilities through our hydrants), the Montesano Readiness Center (what was once the Armory), and the Central Park Elementary School.
The fire district and the readiness center are self explanatory. The school is considered critical infrastructure because it can be used as a command center, a distribution center for emergency supplies, and an emergency shelter. All at once.
Those three services will have a significant impact as I move forward to contingency planning and the final Emergency Response Plan.
This is all driven by “America’s Water Infrastructure Act of 2017”. The AWIA is a large piece of legislation that brings together the original emergency planning processes in the Safe Drinking Water Act, and the Federal emergency response infrastructure called the Incident Management System (ICS). This is a good thing from an emergency management standpoint as it requires that all the agencies coordinate their plans, ensure that workable chains of command are established, and require that all the agencies can effectively communicate with each other. But it is a lot of work.
There are levels of training involved in the ICS. I am trained at ICS level 100/200, which is the lowest level of training. I need to refresh that training. Since the general manager is logically the Incident Commander for the water district, I probably need to step up a level.
This is a very major change in how emergency planning/response is done. It is the biggest change in the Safe Drinking Water Act since the 1996 amendments, and they were big enough.
Jim and I spent some time trying to find a way to determine that we were not required to engage in this process due to the expense of the plan process and anticipated expenses in relation to contingency planning. Water systems that serve fewer than 3,300 people can participate voluntarily, or not at all. We looked at several approaches, but the latest Water Quality Monitoring Report, which specifies the population we serve, settled the issue. Officially, we serve 5,087 people.
Isolation Valve Exercise Program
We will have a great deal more information on valve locations as we go through that effort. I don’t know how we are going to fit another maintenance item into staff availability.
Future and/or On-Hold Programs
All issues related to this topic are dead issues. It will dropped. Anything that relates to deferred maintenance or upgrades will be listed individually.
Shop Insulation
On hold until the “Stay-at-Home” order is lifted.
Long Distance Service Laterals
We removed one trouble spot. A confluence of interests resulted in the district moving the meter for a Chico Lane connection from Central Park Drive to a location on the Chico Lane property line.
Respectfully Submitted:
Reg Hearn
General Manager