MANAGER'S REPORT
08/11/2021
Budget Position Report
Operational income for July was $81,232.11. There was non-operational income: a returned payment of $936; and interest income of $11.46, for a total income of $82,179.57. Operational expenses were $52,549.55. We took in $28,682.56 more than we spent.
There were no capital expenditures in July.
We transferred $29,630.02 into reserve funds:
July YTD
Capital Replacement Reserve $ 4,771.00 $ 33,397.00
Major Repair Reserve $20,659.02 $129,046.21
Debt Service Reserve $ 4,200.00 $ 25,200.00
Total YTD to Reserves $187,643.21
I have included, in addition to the report for the 401 Regular Maintenance Fund (excluding beginning balances), a full report for all funds.
While I am pleased with budget performance, it is important to bear in mind that there are some tasks and projects that are planned for this year that have not yet been completed. Some of those are quite expensive. Some of them may end not getting completed until next year. Engineering is taking longer than I expected.
We are behind in projected revenues. Projected budgeted revenues are $1,004,160. At the current rate the projected actual revenue appears to be about $921,000. The caveat is that we have not billed for the warmest months of the summer. The current billing includes June and July for Section 2. The September billing will include July and August for Section 1. The October billing will include August and September for Section 2. So it is a bit early to call.
Treasurer’s Report:
Fund Balances To Date:
Regular Maintenance $ 89,288
Capital Replacement $ 90,648
Major Repair Reserve $360,889
General Facilities $156,365
Total Funds Available $697,490
The Treasurer’s Report does not balance by $0.19, which is an improvement of $0.12 over last month. When things calm down a bit I will track that down.
The #1 Account, General Maintenance, keeps creeping up. It is a clearing account and should only have sufficient funds to cover the transfer to the County Treasurer. I will estimate what we need in the way of an additional transfer to the county, hopefully before the end of July.
The 601 Revenue Clearing Fund, continues to have a negative balance. This is due to the timing anomalies of the ins and outs of the credit card clearing account as well as this fund having a low balance at the beginning of the year.
2022 Budget
I have included a proposed budget in your packets. The projected revenue is based on an 8% rate increase.
I have done my best to estimate projected costs for 2022. But it is difficult. The Consumer Price Index is running about 5%, which is very concerning. But most of what we purchase, except energy, is not included in the CPI. Metals, at one point, had increased an average of 30%. I have word that has abated to some extent, but I don't know by how much. I don't know the impact on the parts and supplies we typically use. So expense numbers are very seriously a stab in the dark.
I don't have the insurance number for 2022 yet. However, examination of that line item demonstrates that it has been going up significantly every year.
I have held the line on engineering costs. We are spending more on engineering now that we are fully compliant with the state contracting regulations. At this point I intend to assign engineering expenses to the individual projects. In order to develop the levels of specification detail required by the contracting process, we need to spend more money on engineering.
This budget proposes a $152,688 contribution to the Major Reserve Fund. That level of contribution would get us to $1,000,000 in the Major Repair Reserve in four and a quarter years if we did not need to spend any of it along the way. We have transferred just over $129,000 to the Major Repair Reserve this year. But when project completions hit we may need to transfer some of that money back in order to maintain a balanced Regular Maintenance Fund.
Chlorine
No report from the engineer yet on the feasibility of Onsite Generation. But we did get an invoice and progress is being made. The engineering are exceeding the original estimate. Gathering information and working the calculations have proven to be a bit more involved that first envisioned. I have including a cost tracking sheet in your packets.
Our chlorine supplier has a decent inventory at the moment, but they don't have a delivery date for their next shipment.
We maintain a high inventory and are still running a slightly lower chlorine residual.
Cornucopia of Federal Funding
We still have no clear picture as to what will be available, to whom, and on what basis. I am tracking it, but a lot of information is tied up in the Federal infrastructure bill being debated in Congress.
There are excess funds available. They are disbursed by various assistance organizations and have income tests.
Copier
Specifications have been sent to Aberdeen Office Equipment. This acquisition falls under the “Vendor List” process.
Request for Public Information
Our process needs updating. I will be looking at this after dealing with the Risk & Resilience Certification.
No action in July.
Current Projects
Indefinite Delivery Contract
Awarded to Rognlin’s Inc. This is going well. Though we have had less need (so far) for contractor assistance this year.
Reynvaan Extension
In engineering.
Water Rights
On hold
A community volunteer, John Campbell, has prepared a growth study for Central Park. It is a very interesting study. I have not had a chance to completely digest it in order to draw planning conclusions, but I will. It appears to be a very useful tool. It also reveals some holes in past data.
I am recommending that we defer this project.
North Bank Reservoir and Clemons Reservoirs Access Roads Paving
In engineering
Ryenvaan Booster Station Pumphouse
Doing some evaluation. I am thinking that a metal building would be preferable to a wood building. Rot is an ongoing problem in wood pumphouses. We made some substantial repairs to this building about 10 years ago.
No action in July.
Hidden Valley Service Meter
Construction should have started by the time of the meeting. The current estimate is for construction to begin on 8/10.
North Bank Reservoir Roof Recoating
We have chosen a coating. It is specially formulated for covering concrete (concrete has to breath) and is NSF-60 compliant. So it is safe to use in the vicinity of drinking water.
Sunset Road
We have received a ball park estimate from the engineer (I am proposing to us NWS, Inc. on this one) of around $50,000. I am inclined to think that is the as low as we can expect it. So I am thinking around $60,000 as realistic (hopefully) number. We never know until the certificate of completion is signed, sealed and delivered.
If the district puts in $30,000, it leaves just shy of $2,800 for each property owner. They will need to run new service laterals from the meter to the house, in all probability. I would suggest we line up a contractor to offer a group discount.
Because of the need to provide consistent specifications in our solicitations for bids we must utilize consultants (engineers) to develop detailed scopes of work. Therefore, projects start off with engineering. As this one will.
Roads
In engineering
Payroll Report
No surprises. We will always have some overtime. There are tasks that have to be accomplished after hours, and there are always emergency responses.
Pandemic
The restrictions have been, mostly, lifted. We have opened the office to the public, though we have not made any public announcements.
Isolation Valves
No action in July.
Past Due Accounts
I have included a Collections List report in your packets. The past due picture has changed dramatically since the last meeting.
There are two factors: a rather large past due account came current through a sale; and quite a few people caught up their accounts. There was also a vacant lot that was accumulating charges and should not have been.
It appears that the Governor's statement that the shut-off moratorium would end September 30th for certain got some folks' attention.
I don't know if the Federal moratorium on evictions has any impact on utility collection efforts.
At this month's WASWD Managers' Meeting, one water district shared that they are going to an automatic payment plan. If an account is past due, it is automatically shuffled into a payment plan. I am looking into that further.
I will have a suggested late payment notice letter at the September meeting.
Damaged Fire Hydrant
No news
Well #5 Source Meter
The meter is on back order.
Contracting
This process seems to be working smoothly.
Ashley & Kayla
No Action in July
Hydrant Maintenance
A good deal of hydrant maintenance has been accomplished. There has been a focus on dead end lines because the flushing is important in maintaining water quality.
Rate Study
With material prices all over the map it is very difficult to make any kind of meaningful projection. I have included a proposed budget in your packets. We need to get the budget in order, generally, in the next couple of meetings.
Budget statements go to the County in November.
Shop Fence
On hold.
New Regulations
The current word is that PFAS testing will be required starting in 2024. We don't know the extent, cost, or scheduling yet.
Personnel
No news.
Maintenance Activity:
See the attached report. We need to work on making sure work orders are assigned to the appropriate class of work and project.
Contractor Repairs/Assistance
None. The invoice from Brumfield is for a previous project.
Tank Cleaning
Awaiting a date. It is beginning to look like it won't happen this year.
Shop Organization
Tom suggested, at a previous meeting, a separate small building in which to organize the small parts. I have looked at this suggestion in some detail, and it looks like a very workable solution.
I will be acting on it very soon.
Billing
We had a small glitch in the July billing. The check box for late fees remained checked. We didn't catch it until after the bills were run.
We had to do an adjustment entry. So folks with past due accounts will see a credit for the late fee and then the late fee. The result is zero. I expect to get some phone calls.
Training/Certifications
I had to cancel the class for which I was signed up. I have just a few CEU hours to complete by the end of the year.
The WASWD Fall Conference will be an in-person event this year. I will be attending. It will be held at the Great Wolf Lodge in Chehalis.
Safety
We have a mini safety meeting every morning.
We have reviewed the necessity of IMMEDIATELY addressing even very small injuries.
Vehicles
Service Truck: Faulty starter. Repaired by B&B. However, the truck is not running properly. B&B is going to do a complete analysis.
Pickup Truck 1: No Issues
Pickup Truck 2: No issues
Backhoe: No issues.
Web Site
The July Manager's Report is posted, along with a link to the financial statement.
New Connections
Though we haven’t seen the paperwork yet, Dollar General is coming to the property across Solki from the 7-11.
Mason County transit is planning a bus barn facility just west of the new LeMay facility. Though they have been through the pre-app process, they don't expect to start construction for at least five years.
Spoils Site
Northwest Rock accepts vactor mud at their Stafford Creek woodwaste landfill.
Capital Asset Management
Everything is proceeding according to the plan.
Disaster Management Planning
The Risk & Resiliency Assessment is complete (a copy is in your packets) and the completion certification has been submitted to EPA. Another reminder, the Assessment is confidential.
Isolation Valve Exercise Program
On hold
Long Distance Service Laterals
See Sunset Road discussion.
My Health
I continue to battle nerve pain left over from shingles. The combination of the pain and the medications results in limited stamina. I can work fine, just not all day. I am slowly working up to a full day in the office. Though I do get some work done at home. See below.
My doctor tells me the pain may go away tomorrow, or it may never go away.
Remote Work Capability
The work from home set up is proving to be quite successful. It is only for situations in which I can't be in the office. Being present is vital to the management task.
The concept of using a Surface as my main computer and taking it with me when out of the office (even daily) is working well. I have everything I need with me at all times.
The only thing I have not worked out is access to SCADA. I am working on that.
Respectfully Submitted:
Reg Hearn
General Manager