MANAGER'S REPORT
06/10/2020
The big hits, the Highway 12 main replacement and the Well #5 pump replacement, will show up next month.
Budget Position Report
I have managed to make the “official” report much more readable. I have accomplished the feat of making the official report more readable by printing a Reconciled Budget Position report for each fund instead of grouping them altogether. The title for each fund is in the upper left corner.
I included the summary version.
The fund of greatest interest is the 401 Regular Maintenance Fund. This is essentially the Income/Expense report. There is one anomaly in this report that will survive through the year. That is the $430,158 fund transfer to establish the 405 Fund.
In May we took in $82,153 and spent (excluding fund transfers) $47,830. So we took in $34,323 more than we spent in operations. In addition, we made the May USDA payment of $25,197, so adjusted contribution to reserves is $9,126 for the month of May.
Excluding the big fund transfer ($430,158) to establish the Major Repair Reserve, revenues exceed expenses by $120,341 for the year. That is a big help as we will only need to tap reserves for $205,000 to cover all the expenses (about $398,000) that will come due in June. I added $15,000 to the transfer check from the clearing account to ensure we have something in General Maintenance Fund after the bills are all paid. The clearing account tends to accumulate extra funds over time.
The expenses for the Highway 12 project and the Well #5 pump replacement will appear in the June statements.
The 402 Revenue Bond Reserve (USDA) fund finally looks as it should. This is where we keep the money for our final USDA payment. This fund and the Debt Service fund keep getting confused.
The 403 Capital Replacement Fund records the money we accumulated for planned capital replacements, in accordance with the Capital Asset Management Plan.
The 404 Debt Service Fund (USDA) looks strange because of the confusion between this fund and the 402 Revenue Bond Reserve fund. The 404 fund is the fund from which the USDA payments are made. The county had the funds reversed. Our records are now correct except for the $50,394 that had to be transferred out to correct the confusion. This fund should have a zero balance as the USDA payment is transferred into the fund from the General Maintenance fund and then the payment is made from the 404 fund. It will appear a bit strange until the beginning of next year.
The 405 Major Repair Reserve is the money we accumulated over the past few years for major, unplanned repairs.
The 410 General Facilities Fund is revenue from the General Facilities Charge.
Treasurer’s Report:
Here are the numbers for May. Obviously, they will change a great deal next month.
Balances To Date:
Regular Maintenance $158,477
Capital Replacement $ 23,854
Major Repair Reserve $425,958
General Facilities $102,963
Total Funds Available $711,252
New Report
I know how much you gentlemen like additional reports. This is a good one. It is the district’s internal payroll turnaround report. It gives you much better detail than the report we submit to the county. No numbers show up for the General Manager because I haven’t worked out how to track a salaried position.
We are finally getting vacation and sick leave accrual reports to the employees, as required.
Pandemic
The office is still closed. The governor’s proclamation closes all government offices, including special district through Phase 2.
I have not yet researched the requirements for Phase 3. If the requirements include a provision to provide six feet of separation between staff and customers we may need to stay closed. We don’t have a means of providing that much separation.
Isolation Valves
We have arranged with Jerome Morrisette & Associates to update our master map and print out intersection maps in 8-1/2 X 11 format. The intersection maps will be laminated and placed in notebooks in each of the trucks.
This process will also update the master map that Morrisette has on file from the Water System Plan. I am planning on using Morrisette for the next WSP update.
Well #5 Pump
This project is complete. I have included the cost tracking sheet in your packets. Final cost is $67,823.
Well #5 went back on line 6/4/20. It is pumping 1,070 gpm.
Well #5 Source Meter
Quote: $6,631.25 + tax
Hydrant Maintenance
Hydrant maintenance is being kick started. We are quite a ways behind.
Rate Study
I have included the summary sheets for the rate study. With the need to replace reserves, rate increases are inevitable.
My concern that low usage customers subsidize higher usage customers grows as our base rate increases. It is my sense that the lower usage customers tend to be the lower income customers. I need to do some additional study to come to grips with this issue, but I am pretty confident that my sense will be born out by a detailed study.
As we continue to need more revenue, I think we need to seriously consider revising our basic rate structure. The first step in that process would be communications/education to the community. My experience is that the community is averse to changing the basic rate structure.
New Regulations
The governor’s proclamations require that we post a statement from his office that outlines requirements for bill payment relief. I will get around to posting that.
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.
Personnel
Awaiting final resolution on the legal issues.
Highway 12 Cast Iron Pipe Replacement
Awaiting the as-builts. All the information is in the hands of the engineer. That is the last item before we can call this project finished. To date the costs total $281,482. I have included a copy of the cost tracking sheet to date.
Maintenance Activity:
Usual daily/weekly/monthly maintenance activity. See attached report.
Contractor Repairs
None. The “Main Repairs – Contractor” reflect previously reported repairs.
Newsletter
I have emailed you drafts for the newsletter. It will include the annual Consumer Confidence Report. I am hoping all input will be complete by the meeting so it just needs your blessing. It must be in the hands of our customers no later than July 1st.
Tank Cleaning
I have not had the opportunity to contact Liquivision. This is on hold until the “Stay-at-Home” order is lifted.
As-Builts
I have not had time to pursue information about the Flo, Inc. program.
Shop Organization
The process of inventory has begun. And ground to a halt. This keeps falling victim to higher priority projects.
Training/Certifications
Kenny has completed his CEU requirement through the end of next year. I have a few CEU’s to go yet.
Mick is taking the WDM2 test review class on line.
Safety
We have a mini safety meeting every morning.
Vehicles
Service Truck: The driver’s seat is beginning to wear out. We will need to have this seat re-covered.
Pickup Truck 1: No Issues
Pickup Truck 2: No issues
Backhoe: No issues.
Web Site
I have added our Budget Position Report. I am always looking for content for the web site. I want our customers to as much information as I can get to them.
Filing System
Off and running. The temporary hire, Shiree Allison, is working out very well. She grasped the major points of the filing system almost instantly. I am more than pleased.
Fire Station
Our involvement, other than finishing our access road through the fire station property, is over.
The shop site is looking a little rough. We want to be good neighbors and not have an unsightly work area. Once the fire station is complete, or nearly so, I plan to do some basic landscaping.
There was a stack of broken concrete on the shop site. I had Iversen & Sons move that down to the well site while they were cleaning up for the fire station’s retention pond. The cost for that shows up in this month’s Claims Request.
Grant Funding Pursuit
The “Stay-at-Home” order has pretty much shut this effort down for the time being.
Capital Asset Management
In the event, the replacement of the Well #5 pump actually reduced the annual contribution to capital replacements. We were planning on replacing that pump in the next couple of years. Now that it is replaced, the cost is pushed out 40 years.
Disaster Management Planning
I have done nothing since last month. Once I get through all the first of the year reports I will dive into it.
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)
Shop Insulation
On hold until the “Stay-at-Home” order is lifted.
Long Distance Service Laterals
No change.
Respectfully Submitted:
Reg Hearn
General Manager