MANAGER'S REPORT
02/11/2020
A lot of information in your packets this month. Some of it is for basic information and does not need to be read in detail. For instance, the outline for the filing system. I include information like this so that you can be aware of the scope of task.
Budget Position Report
The appearance of this report is changing once again. The driver behind the changes is the Asset Management element. A secondary driver is my further surrender to public sector accounting.
I semi-apologize for the complexity. However, if we are going to keep rate increases to a minimum, and make informed decisions about rates, we need to know what money we have and what we plan to do with it.
In the private sector the primary interest is to compare expenses to revenue. In public sector accounting the focus is on comparing expenses to the budget. In the past I have tweaked this report to the extent I could to come up with a revenue/expense report. With the tracking needs dictated by the ability to identify capital replacement funds, I have had to configure this report as the Budget Position Report it is supposed to be.
In the past I have only included the report for the 401 Regular Maintenance Fund and excluded beginning balances. That is no longer useful. You will find Budget Position Reports for all of the Funds. There are also a couple of problems with the reports that are the result of the transition from 2019. Those will either get corrected in following months, or will correct themselves when we transition to 2021.
The short version is that we took in $106,775.19. That is a large number that reflects the refund check from Brumfield. We received that check in November, wrote the transfer check in December, which showed up in the County reports in January. In terms of money actually spent, we spent $59,527.63.
So we took in $47,247.56 more than we spent.
In terms of budget position:
Beginning Balance: $505,340.73
Income: $109,204.32
Total Revenues: $614,545.05
Expense: $ 59,527.63
Inter Fund Transfers Out: $390,325.00
Fund Expenditures: $449,852.63
Fund Excess: $164,692.42
Inter Fund Transfers is not money that has gone away. It is money that has been transferred from one fund to another. As an example $385,754 was transferred from the Regular Maintenance Fund to the Major Repair Reserve. That number represents the operating gain from 2019. We want to track that number because it is an important budgeting element in terms of contributing to reserves for major repairs. There was $4,571 transferred out to the Capital Replacement fund, which is the fund attached to our Asset Management Plan.
All of this complexity serves to definitively demonstrate what money we have, what it is ear marked for, and how we spent it in relationship to what we budgeted.
Treasurer’s Report:
The Treasurers Report is the snap shot of our financial position at the end of the month. In my mind it is analogous to the balance sheet in private sector accounting.
There are ins and outs to analyze all that is going on here. The important elements are those that tell us what we have to spend to operate and maintain the water system at this point in time.
To answer that question, the following Cash Accounts provide the accurate answer:
County Treasurer: $129,260.79
Maintenance Investment: $395,000.00
Facilities Investment: $ 79,729.13
Total: $603,989.92
All of these reports reconcile with the County reports and/or the bank statements. We track the 403 Capital Replacement Fund and the 405 Major Reserve fund internally. In the County reports, those monies are a part of the Regular Maintenance Fund.
The 600 Refundable Deposits fund and Revenue Clearing fund are kept by the district and are reconciled to the bank and Point-n-Pay statements.
Monthly Utility Totals
The February billing, Section 2, was $59,223.73.
Collections
The receipt register has to be broken down a bit to get the full picture. The report shows a total of $93,673.05. There was $8,182 in refundable deposits (380 Non-Revenues) primarily in meter deposits and $7,600 in General Facilities receipts. So the actual General Maintenance receipts were $75,845.
Meter deposits were high because one of the new connections require a road crossing.
We billed $91,211 in January. So officially we collected 83% of what we billed. One bright note is that we have collected almost $4,000 after 01/31 but before the February bills went out. That raises our collected percentage to 87%. Though is not the “official” number since those dollars came in after the end of the month.
Rate Study
I am resuming work on the rate study and basing futures on some assumptions. I have proposed a formal pay schedule that would greatly aid in the district’s budgeting and would give employees information for their own planning.
New Regulations
No real news on the PFAS front except that the rhetoric is heating up. In case you haven’t heard, we are all going to die.
Seriously, the district was part of a round of unregulated contaminant testing (paid for by EPA) that included PFAS’s. Our results were “Non-detect” across the board. In all probability, the new regulations will require an initial round of testing followed by waivers for reduced testing for utilities that showed no presence.
I don’t know what the testing costs. Until we have the regulation and know to what degree of precision will be required, nobody else knows, either.
Operational Issues
Full Cost Budgeting.
Recurring SCADA Power/Communications Problems
These problems have been driving us crazy. They may be power problems. But there certainly are ongoing problems with the radios.
Our internet communications with the Gavett Lane Booster Station (LeMay) work flawlessly. I am proposing (close to demanding) that we convert to internet communications.
I have a proposal from Systems Interface to change the protocol from the radios to internet. I have a copy enclosed. $5,990.
I haven’t nailed down monthly costs, yet.
Personnel
The final steps in getting the retirement program set up are underway.
Since the County no longer administers the district’s benefits we have not had an effective means of accurately tracking sick and vacation time. I am looking for a free/cheap means of doing that. We don’t need a fully capable payroll system, so something very basic will fill our needs.
Highway 12 Cast Iron Pipe Replacement
At this writing we are considering launching this project as an emergency immediately. There is a leak in that line.
Maintenance Activity:
Usual daily/weekly/monthly maintenance activity. See attached report.
Contractor Repairs
Assistance in new connection on Central Park Drive.
As-Builts
I have not had time to pursue information about the Flo, Inc. program.
Highway 12 Meters
I think it is fully operational. We still had to hand read for the February billing. But the gap was not in the reading. It was getting the data from the tablet to Bias. Kamstrup and Bias worked out that communication...we hope. We will find out for the March billing.
New Connections
6809 Grange Road
TPN710000004700 located near the east end of Central Park Drive. This one may not come off. The customer was eager to go ahead with a $1,500 meter deposit. He is putting in a shop. But the water main is on the other side of the road. He was a bit shocked at $6,500 meter deposit.
Consumer Complaint
At the last meeting the commissioners affirmed the policy that has been in place as long as I have been here.
However, in doing some other research I came across Resolution 723 which speaks to the policy. We need to talk about this one. I have included a copy of the resolution in your packets.
Shop Organization
With a lot of bad weather in January quite a bit of progress was made in getting this cleaned up. A big hold up has been conducting a detailed inventory. We just have not had the time.
Training/Certifications.
None in January. I will be taking an advanced Cross-Connection Control class in February. Kenny will be attending the ERWOW conference.
I will be attending the WASWD Spring Conference in Kennewick in April and the Fall Conference in Suquamish in September. As a committee chair I am obligated to attend both conferences. Having the Fall Conference in Suquamish (up near Poulsbo) is a relief. It cuts two days of travel and two overnight stays, as compared to Wenatchee or Spokane. The conference in Kennewick helps, too. That cuts one day of travel and one overnight stay.
I think I can take some credit. Even before the current efforts, I have been nagging on small district issues, one of which is the locations for the conferences.
Safety
We have a mini safety meeting every morning.
Vehicles
Service Truck: No issues.
Pickup Truck 1: No Issues
Pickup Truck 2: No issues.
Filing System
The basic structure has been completed. I have made some trial runs and it appears to work. A couple more trial runs and we will be able to work on implementation.
Finding an intern, or some other temporary help is probably the best bet. I have put out a call on the district’s Facebook page. I will contact the community college as well.
I have included a copy of the outline and the narrative description in your packets. You don’t need to get into it in detail, just look at it enough to get a feel for the scope of job.
Fire Station
Any dirt work has been slowed by the weather. I attend the construction meetings. Generally the project is on schedule.
Grant Funding Pursuit
The legislature is in session. WASWD has a legislative working group that reviews proposed legislation and provides comments to the lobbyists. I am part of that working group, though little has surfaced that needs my efforts or comments.
Soon after the legislature adjourns I need to make contact with our local representatives.
The Small Districts Committee finally has a meeting day and time. We will be meeting the first Tuesday at 10:00AM. The meetings will generally be tele-conferenced.
Capital Asset Management
This has been fully integrated into the Rate Study, or vice versa. We still have no firm strategy for water main and reservoir replacement.
I have made the transfer of funds from the General Maintenance Fund to the Capital Replacement Fund.
Disaster Management Planning
I have begun reviewing the FEMA documents related to disaster management for water and waste water utilities. I will have a copy of the guidance at the meeting for your information.
We have a deadline for our planning. I am woefully behind the curve on this one. It will get my attention as soon as the rate study is further along and enrollment in the retirement program is finalized.
Isolation Valve Exercise Program
On hold due to inadequate as-built information.
Future and/or On-Hold Programs
Email Bills
Online Bill Pay (way down the list. Customers can pay bills online through their bank)
Installation of additional isolation valves
Shop Insulation
See attached report. This alleviates my concerns. We will need to address repair/replacement of the failing insulation. Insulation helps reduce condensation within the building.
Long Distance Service Laterals
It is my recommendation that we sit on the Devonshire Road problem until there is another event. At that time I would recommend installing a 2” main on Devonshire Road.
My main concern is for the customers. All their onsite plumbing is configured for the service laterals coming across the fields. A new main on Devonshire will require that they run their own internal service laterals.
Respectfully Submitted:
Reg Hearn
General Manager