GRAYS HARBOR COUNTY WATER DISTRICT #2

MANAGER'S REPORT

09/08/2021

Revised 09/10/21

Budget Position Report

Revenues for August were $79,771.66. ​​ Operational expenses were $46,519.23. ​​ So revenues exceeded expenses $33,252.43.

We transferred the following funds to reserves:

 Capital Replacement:  $ ​​ 4,771.00

 Major Repair   $24,281.43

 Debt Service (USDA)  $ ​​ 4,200.00

Total to Reserves:   $33,2523.43

Revenues for the year to date are $610,937.76 (Leaving out the interfund transfer). ​​ That is below projected revenues. At this rate our projected annual revenues will be $916,406.64. ​​ However, we billed $102,680.50 on September 1st.  ​​​​ How much of that we collect within the month is an imponderable. ​​ But we actually collected more in August than we billed. ​​ Clearly, some past due accounts are being brought current. ​​ August billing was $74,327.84. ​​ Cash collections were $80,863.85.

Expenses for the year to date are $386,298.25. ​​ So far we have spent $197,244.93 less than we have brought in. ​​ But we have some substantial bills that have not hit the books yet. ​​ For the year we have contributed $229,307.82 to reserves. ​​ Of which $29,400 is reserved for USDA payments. ​​ So approximately $200,000 contributed to usable reserves.

Treasurer’s Report:

Fund balances in funds that can be used for district operations are:

 Regular Maintenance Fund:  $ ​​ 88,352.41

 Capital Replacement Fund:  $ ​​ 95,419.25

 Major Repair Fund:   $386,174.97

 General Facilities Fund:  $156,372.13

Total Reserves     $726,318.76

2022 Budget

In contrast to last month's budget proposal, for discussion purposes I have included a budget comparison that proposes a 10% rate increase, as well as updated line items. ​​ It is also in a somewhat different format in which it is easier to make comparisons. ​​ 

BIAS/Springbrook Software

As you are aware our accounting software is from Bias, which has been sold to Springbrook Holding, LLC.  ​​​​ The biggest attractions to Bias are the customer support and the complete compliance with BARS requirements. ​​ 

The connection to Bias has been through a private network with the software “hosted” on their servers. This has worked OK for us, but it has had it's frustrations.

The connection protocol is changing. ​​ They are now upgrading to software hosted through a web browser. ​​ This makes the software much more accessible and solves some display issues we have had. ​​ In addition, the upgrade includes some additional features. ​​ One of which is a report writer. ​​ I have wanted one of those for a long time. ​​ Of course, we will see how functional it is. ​​ Our maintenance software. FIIX, has a report writer, but it is so abstruse it takes hours to configure out even the simplest report.

Another issue has been the interface. ​​ The screens were obviously developed through an older process and take some getting used to. ​​ The new version fixes that problem.

There are other tweaks that will be of value. ​​ Here is the propaganda:

Browser – based access (log into Springbrook Express like your personal email or online banking).

• Enhanced Security Features

• Less Infrastructure and Monitoring – We do it for you!

• Built-in Status Monitoring

• Automatic Backup and Logging of Metrics

• Modern look and feel.

• Access to Tableau reporting (a custom report writing tool – coming end of year).

• Workload Deployment, Monitoring, and Mobility are all managed in a single location

• Greater flexibility and collaboration for staff

• Access to all future Springbrook Express enhancements!

**On Premise and Hosted will not be receiving new features moving forward.

The new version is a bit more expensive than the old. ​​ But the good news on that is that we can start the new version immediately but retain our renewal date. ​​ So the increased fee (+$2,000) will be reflected on our current May renewal date, not when we upgrade.

I have signed the agreement for the upgrade. The upgrade/transition has taken place. ​​ It got accelerated because your general manager succeeded in messing up the connection with the hosted version.  ​​​​ The upgrade has taken place. ​​ I haven't seen the functionality improvements much yet, but the screens are a huge improvement. ​​ It is also much easier to access remotely.

Small Works Roster

Our handling of the Small Works Roster, a process by which the contracting requirements are reduced for projects under $350,000, has been casual at best. ​​ 

To conform to all the RCW requirements would require a great deal more work than we are currently putting into the program. ​​ Eventually the State Auditor will be examining our processes for implementation and use of this program. ​​ 

But there is an easy and inexpensive solution (that doesn't happen all the time) through MRSC, an organization that provides information and services to local government agencies. ​​ We have a membership, which is expensive and we would normally have to pay out of pocket, through WASWD. ​​ The MRSC basic dues are included in our WASWD dues.

MRSC (Municipal Research and Services Center) have a program by which they manage Small Works Roster programs for local governments. Just about all of the local agencies in Grays Harbor County use this service.  ​​​​ 

The cost is $135 per year, which is less than what we pay to place the required annual newspaper announcement. The program places the required notice in multiple papers (we only place it in one) in the county. ​​ In addition, their roster includes all contractors who are interested in working in our county. ​​ They also manage the task of getting bid announcements to all appropriate contractors. ​​ 

Both of the contractors we normally use (Brumfield and Rognlins) are in the database. ​​ So we lose nothing by delegating this task to MRSC.

I STRONGLY recommend we go with this program. ​​ The deadline for applying for 2022 is December 1st.  ​​​​ Though that is changing, as they are implementing a program by which acceptance occurs immediately. ​​ 

• • • It manages our Small Works Roster in accordance with the RCW's.

    • It costs less than what we are spending now

    • It greatly expands the pool of contractors that can receive our bid calls.

To satisfy the RCW's a resolution is required to delegate the management of our roster to the program. MRSC has thoughtfully provided a suitable resolution template. ​​ I have included a completed template (short the suitable resolution number) in your packets and have forwarded a copy to Scott so that he can review and provide the correct resolution numbers. ​​ 

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. Chlorine supplies continue to be a problem nationally.

Cornucopia of Federal Funding

Financial assistance will be available for low income households starting October 1. ​​ I have been in discussions with Coastal Community Action Program staff. ​​ They are the agency charged with administering the funds. ​​ 

We need to partner with them. ​​ I have included a copy of their contract in your packets.

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 August.

Current Projects

Small Parts Shed

I finally made a trip to the All-Stor shed manufacturer in Rochester.  I was very impressed.   The company is a small, family run operation.  The construction quality of their sheds is excellent.

I had previous thought of using the small shed idea for small parts organization and another shed for storing rolls of HDPE pipe.  However, in discussions with the folks at All-Stor, a single, larger shed with a divider makes a great deal more sense.

They provided me with a quote for a 10 X 16 shed with an interior wall across the 16' dimension and double doors at each end. Delivered price is $5,823.15.  Since this is over my $5,000 limit I will need board approval at the next meeting. ​​ The $7,000 listed above includes an estimate of the cost to install parts bins and some LED battery powered lighting.

Since this is a materials purchase (it is an already constructed shed) under $10,000 we can opt out of a formal bidding process. In keeping with the the spirit of things, All-Stor prices are more than competitive, especially given the quality of construction. As a comparison, the All-Stor basic 8 X 10 shed is $3,165.00, a similar price to other offerings but much better construction.

Scott: We will need a resolution accepting the All-Stor bid.

The district needs to provide fifteen 4 X 8 X 16 concrete blocks as a foundation.  Once delivered, we will install a desk/work bench along one wall of the small parts side and bins for the parts.  My current plan for inventory tracking is to label columns of bins alphabetically and rows of bins numerically.  I can then set up inventory control in the FIIX software. 

Sunset Road Water Main

Prior to setting up the community meeting, we need to clear all the legal aspects with Scott.

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 new mandates are in place. ​​ For the District, if we are closed to the public inside staff that are vaccinated may work without masks. ​​ Un-vaccinated are required to wear masks.

We are not inquiring into staff's vaccine status. ​​ 

The office is again closed to the public.

Isolation Valves

No action in August.

Past Due Accounts 

Past due accounts are not in as good a condition as I thought ​​ they were. ​​ I have been generating the “Collections List” and basing my thinking off that report. ​​ However, It came to my attention that the only accounts listed in that report are the “Inactive” accounts, despite a pull down box in which one can, in theory, select “Inactive”, “Active”, or “All”. ​​ It doesn't matter one's selection, the report only lists inactive past due accounts ​​ 

In order to get a true picture of past due accounts, three reports must be printed out. ​​ These reports, in the program, are listed as “Manage Customer Balances” in addition to the “Collections List”. ​​ In the Manage Customer Balances report there is an option for “Past Due”. ​​ But the reports are section limited. ​​ So there is a report for each section.

Reading the reports takes a bit of instruction, which I will provide at the meeting.

Section 1 has a total outstanding past due accounts of $40,207. ​​ There are 101 past due accounts in Section 1. ​​ The breakdown:

 One Billing Cycle: $15,477

 Two Billing Cycles: $  ​​ ​​ ​​​​ 946

 Three Billing Cycles: $23,784

Section 2 has a total outstanding past due accounts of $37,681. ​​ There are 163 past due accounts in Section 2. ​​ The breakdown:

 One Billing Cycle: $13,547

 Two Billing Cycles $ ​​ 5,155

 Three Billing Cycles: $21,476

Total past due, active account balances are $77,888. ​​ There are 264 past due accounts. ​​ The breakdown:

 One Billing Cycle: $29,024

 Two Billing Cycles: $ ​​ 6,101

 Three Billing Cycles: $42,260

There are thirteen inactive accounts. ​​ Total past due for those accounts is $31,289, of which $25,507 is one account. ​​ I have included activity reports for that account and I can provide detail at the meeting.

We are getting the rented/owned issue resolved. ​​ It involves going into each account and checking a box. ​​ Not very demanding, but it is time consuming.

I will have a suggested late payment notice letter at the September meeting. ​​ A draft is in your packets.

Damaged Fire Hydrant 

No news

Well #5 Source Meter

The meter is on back order.  ​​​​ 

Ashley & Kayla

No Action in August

Hydrant Maintenance

Hydrant maintenance slowed in August due to Kenny's well-earned vacation.

Rate Study

Struggling with making the time to update the study.

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.  ​​​​ There was a webinar on the subject but I was unable to attend.

Personnel

I would like an executive session to discuss a personnel issue. ​​ It could be incorporated into an executive session addressing other issues.

Maintenance Activity:

See the attached report. ​​ 

Contractor Repairs/Assistance

None.

Tank Cleaning

September 5 and 6. ​​ The 5th is a holiday. ​​ But we will have staff available to assist Liquivision.

Shop Organization

See the discussion on the Small Parts Shed.

Billing

Training/Certifications

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. ​​ I can pick up some CEU's at the conference. ​​ Hopefully enough for me to meet the requirement.  ​​​​ If not, I will schedule a class before the end of the year.

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. ​​ This truck had some running issues. ​​ B&B did a complete analysis and did not find any major issues.

Pickup Truck 1: ​​ No Issues

Pickup Truck 2:  ​​​​ No issues

Backhoe: ​​ No issues.

Web Site

The August Manager's Report is posted, along with a link to the financial statement.

New Connections

6090 Ridgeview Drive.

“The Farm” proposed development is being resurrected. ​​ This development is about 32 connections located west of the Kayla/Ashley development. It has been sitting dormant since I first got here. ​​ The water utilities have been installed, inspected and tested. ​​ All that is needed is to flush the lines and take samples.

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

No action in August.

Isolation Valve Exercise Program

There is no likelihood that this program will be established any time in the foreseeable future. ​​ We simply do not have the staff time available. ​​ It will disappear from this report until such time that it might be feasible to start it up.

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. ​​ Quite a few days I am able to put in a full day at the office. ​​ It depends on how I sleep the night before, which dictates when I will be able to be present in the morning. I do get ​​ 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